OKLAHOMA UNIVERSAL SERVICES FUND REQUEST FOR PROPOSALS
OKLAHOMA UNIVERSAL SERVICE FUND MANAGER PROJECT
PLEASE MARK ALL PROPOSAL SUBMISSIONS WITH THE FOLLOWING INFORMATION
RFP TITLE: Oklahoma Universal Service Fund Manager Project / OUSF RFP No. 2017-1 DATE ISSUED: June 30, 2017 DATE DUE: August 31, 2017 at 5:00 P.M., Central TABLE OF CONTENTS
SECTION 1. PROPOSAL SUBMISSION INSTRUCTIONS...... 3
SECTION 2. TERMS AND CONDITIONS...... 6
SECTION 3. STATEMENT OF WORK...... 14
SECTION 4. EVALUATION CRITERIA...... 19
SECTION 5. REQUEST FOR PROPOSALS FOR FUND MANAGEMENT…...... 21
SECTION 6. PROPOSAL RESPONSE FORM...... 22
ATTACHMENT I. NON-COLLUSION AFFIDAVIT...... 23
ATTACHMENT II. RFP TRANSMITTAL LETTER...... 26
ATTACHMENT III. CONTRACT...... 27
APPENDIX I. QUESTIONS...... 43
2 SECTION 1. PROPOSAL SUBMISSION INSTRUCTIONS
1.1 Offeror Response to RFP: 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 cost data relating to this proposal should be kept separate from and not included in the Technical Submittal. Each Proposal shall consist of the following two separately sealed submittals:
Technical Submittal
Cost Submittal
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.
1.2 Statement of the Service Being Requested: State in succinct terms your understanding of the service required by this RFP.
1.3 Management Summary: Include a narrative description of the proposed effort and a list of the services to be provided.
1.4 Work Plan: The first part of each proposal should include a general discussion of the approach the Offeror will take and explain how the Offeror will meet each requirement. In addition, this part of the proposal should identify all individuals who will work on significant tasks, and should explain the qualifications of each, and how many hours the individual will likely work on their respective tasks on a monthly basis. A single individual should be identified to serve as OUSF Manager, and that individual’s resume should be attached. Resumes for other identified persons with significant responsibility should also be attached.
If the Offeror desires to associate with another organization such as a bank to provide the required services, the bid should include a separate statement from that organization describing its anticipated role.
Describe in narrative form your technical plan for accomplishing the work. Use the task descriptions in Section 3 of this RFP as your reference point. Modifications of the task 3 descriptions are permitted; however, reasons for changes should be fully explained. Indicate the number of person hours allocated to each task. 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.
1.5 Prior Experience: Include experience in administering other state or federal USFs or other similar Funds. Accounting experience or legal experience should be stated. 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.
1.6 Personnel: Include the names 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. Key personnel includes those persons who would be handling collections and disbursements, issuing mailings to the carriers, treasury department personnel, supervisors, accountants, lawyers, and other people who may be involved in handling the Fund. Include resumes of personnel. In addition, if the Offeror or any of its associates has an affiliate or representational relationship with a Commission-regulated telecommunications carrier, the Offeror must disclose that relationship and explain, in detail, the measures that will be taken to avoid any conflict of interest that may arise because of this contract. Written documentation demonstrating, as deemed appropriate by the OCC, that measures have been taken to avoid any conflict of interest is required.
1.7 Financial Capability: 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 Commission.
1.8 Objections and Additions to Standard Contract Terms and Conditions: 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, including the cost 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.
1.9 Cost Submittal: 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 kept separate in a separate sealed envelope, marked "cost submittal." The price quotation should cover the contract period. A cost data sheet should be submitted in this separate sealed envelope and it should include a breakdown of costs. Offerors are free to structure their price offerings in any way they choose; however, the bid should specifically describe: 4 1. One-time startup costs, presumably to be paid in the first year.
2. Fixed annual costs for each of the contract years. This should cover most anticipated expenses, such as personnel, office costs, and overhead, and may include an allowance for travel. The amount may vary for each year based upon expected inflation and operation charges, efficiencies, etc.
3. Any contingency costs. This might include functions like defense of lawsuits.
4. If the winning Offeror actually begins work after July 1, 2018, how compensation will be proportionally adjusted.
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 and the proposal will be considered nonresponsive.
The Issuing Office will reimburse the selected Offeror for work satisfactorily performed after execution of a written contract and the start of the contract term, in accordance with contract requirements, and only after the Issuing Office has issued a notice to proceed.
5 SECTION 2. TERMS AND CONDITIONS
2.1 Purpose: This Request for proposals (“RFP”) provides interested contractors with sufficient information to enable them to prepare and submit proposals for consideration by the Oklahoma Corporation Commission (“Commission” or “OCC”) to administer the Oklahoma Universal Service Fund (“OUSF” or “Fund”) beginning July 1, 2018, and which may be extended annually, pursuant to the 17 O.S. §139.106 - Oklahoma Universal Service Fund and the Oklahoma Administrative Code (OAC) 165:59.
2.2 Issuing Office: This RFP is issued by the Oklahoma Corporation Commission. The Commission regulates and/or approves rates and tariffs for common and contract carriers and power, water, gas and telecommunications utilities operating within the State of Oklahoma (“State”) for this RFP. Although compensation for services will be made from OUSF monies as opposed to State general fund monies, the final selection, control and approval for payment of any contract is made by the Commission’s Public Utility Division.
The sole point of contact for this RFP shall be the Regulatory Manager Public Utility Division, Jim Jones, Jim Thorpe Building, Room 580, 2101 North Lincoln Boulevard, Oklahoma City, OK, 73105, phone number (405) 521-6737, email at [email protected].
2.3 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 must be met to be eligible for consideration; general evaluation criteria; and other requirements to be met by each proposal.
2.4 Problem Statement: The OCC hereby requests written proposals to serve as the third- party manager (“Manager”) of the OUSF. The Manager is responsible for managing the OUSF beginning July 1, 2018, and which may be extended on an annual basis. The Manager is responsible for collecting pro rata contributions based on telecommunications service providers’ intrastate end-user telecommunications retail revenues, at a rate set by the OCC, and depositing these revenues into the OUSF. The Manager will also distribute money from the OUSF on the first of each month to telecommunications carriers certificated in the State of Oklahoma.
The Commission rules allow for an assessment that is computed annually pursuant to OAC 165:59-3-13(a) (relating to the adjustment of the funding level, as necessary, on an annual basis, and billing the telecommunications carriers required to contribute to the fund) at a rate calculated by multiplying each contributing telecommunications provider’s associated total intrastate regulated and unregulated telecommunications retail revenues by the contribution factor. End-user revenues expressly do not include revenues received from access, resale (toll or local) of unbundled network elements, or other services provided that 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.
6 Every telecommunications carrier shall contribute, on a nondiscriminatory basis, into the OUSF. The Manager functions as the “financial hub” of this system. The Manager collects the contributions from the individual companies, manages the Fund’s cash flow, and disburses payments to the eligible companies. The Commission sets the OUSF contribution factor annually based on data the Manager submitted in annual reports.
The Manager may be an individual or an organization. An organizational Offeror may have sufficient resources on Staff. An individual Offeror probably would need to have formal or informal relationships with other organizations such as banks. For example, an individual Offeror would probably want to develop a "lock box" system at a bank to collect receipts and possibly use a bank's commercial or trust operations for making short-term liquid investments.
2.5 Manager Criteria: The Manager shall meet the following criteria:
2.5.1 The Manager shall be neutral, impartial, and independent from telecommunications service providers operating in the State of Oklahoma;
2.5.2 The Manager shall not advocate specific positions before the Commission in non-universal service administrative proceedings related to common carrier issues;
2.5.3 The Manager shall not be an affiliate of any provider of telecommunications services; and
2.5.4 If the Manager has a board of directors that includes members with direct financial interests in entities that contribute to or receive support from the Fund, no more than a third of the board members may represent any one category (e.g., local exchange carriers or interexchange carriers) of contributing carriers or support recipients, and the Board’s composition must reflect the broad base of contributors to and recipients of Fund assets. For purposes of this restriction, a direct financial interest exists where the Manager or Board member:
2.5.4.1 is an employee of a telecommunications carrier,
2.5.4.2 owns equity interests in bonds or equity instruments issued by any telecommunications carrier, or
2.5.4.3 owns mutual funds that invest more than 50% of its assets in telecommunications securities.
2.5.5 If the Manager’s board composition changes during its contractual period, the Manager shall notify the Commission immediately.
7 2.6 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 firm fixed price contract. Payments to the Manager will be based on a monthly payment schedule and should not be a percentage of the total size of the Fund monies managed. The successful Offeror will negotiate with the Commission a detailed contract that is consistent with the standard State of Oklahoma contract for services. The contract will be for a term beginning on July 1, 2018, or as soon thereafter as an effective date can be placed on the contract. Once selected, the Manager will be terminated during this term only for good cause or a lack of funds.
The contract:
2.6.1 will cover one year and may be extended annually, with four one year extensions;
2.6.2 may need to be amended later if the Oklahoma legislature authorizes or mandates changes to the OUSF; and
2.6.3 may elaborate further on the Manager’s duties, including:
2.6.3.1 clarifying reporting requirements for the Manager, and in particular concerning compliance with Generally Accepted Government Auditing Standards;
2.6.3.2 periodic financial reporting and revenue estimating requirements; and
2.6.3.3 cooperating with a new Manager following termination of the contract so that there will be a smooth transition to the new administration of the OUSF.
2.6.4 may be amended later if the Commission modifies any administrative processes associated with the Fund.
2.7 Rejection of Proposals: The OCC reserves the right to reject any and all proposals received as a result of this request, or to negotiate separately with competing contractors.
2.8 Incurring Costs: The OCC is not liable for any costs incurred by contractors prior to issuance of a contract.
2.9 Pre-Proposal Conference: There will be no pre-proposal conference. However, potential Offerors may seek answers to questions by submitting such questions in writing to the Regulatory Manager Public Utility Division, Jim Jones, Jim Thorpe Building, Room 580, 2101 North Lincoln Boulevard, Oklahoma City, OK, 73105, phone number (405) 521-6737, email at [email protected] , written e-mailed questions are permissible. All questions regarding this Request for Proposals must be received before July 31, 2017.
8 2.10 Questions & Answers: If an Offeror has any questions regarding this RFP, the Offeror must submit the questions by email with the subject line “OUSF RFP No. 2017-1 Question” to the Issuing Officer named in Paragraph 2.2 above of this RFP. If the Offeror has questions, they must be submitted via email by 5:00 p.m. Central Standard Time on July 31, 2017. The Issuing Officer shall post the answers to the questions on the OCC website.
All questions and responses as posted on the OCC website are considered as an addendum to, and part of, this RFP. Each Offeror shall be responsible to monitor the OCC website 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 with 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.
2.11 Response Date: To be considered, the original proposal or any addendum thereto and five copies must arrive at the Issuing Office on or before 5:00 p.m. Central Standard Time on August 31, 2017 via the appropriate address listed below.
Electronic Submission
Email: [email protected] Subject Line: OUSF RFP No. 2017-1 BID RESPONSE
First Class Mail Address
Jim Jones-Regulatory Manager-Public Utility Division Oklahoma Corporation Commission P.O. Box 52000 Oklahoma City, OK 73105-2000
Overnight Delivery Address
Jim Jones-Regulatory Manager-Public Utility Division Oklahoma Corporation Commission Room 580, Jim Thorpe Building 2101 North Lincoln Boulevard Oklahoma City, OK 73105
Offerors mailing proposals should allow normal mail delivery time to insure timely receipt of their proposals. Proposals received after 5:00 p.m. Central Standard Time on August 31, 2017, will not be considered regardless of the reason for the late submission.
2.12 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
9 OCC website at www.occeweb.com . It is the Offeror’s responsibility to check periodically the website for any new information or addenda to the RFP.
2.13 Proposals: To be considered, Offerors must submit a complete response to this RFP, using the format provided in Section 6. Proposals must be signed by an official authorized to bind the contractor to its provision. For this RFP the proposal must remain valid for at least 120 days.
2.14 Economy of Preparation: Offerors should prepare proposals timely and economically, providing a straightforward, concise description of the Offeror’s ability to meet the requirements of the RFP.
2.15 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:
2.15.1 Under the provisions of any Oklahoma or United States statute or regulation;
2.15.2 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 Oklahoma Open Records Act and therefore subject to disclosure. The financial capability information shall not be disclosed in the final contract. All material submitted with the proposal becomes the property of the Oklahoma Corporation Commission 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.
2.16 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.
2.17 Prime Contractor Responsibilities: The prime contractor will be required to assume responsibility for all services offered in its proposal including those of any subcontractors. Further, the OCC will consider the prime contractor to be the sole point of contact with regard to contractual matters.
2.18 News Release: News releases pertaining to the RFP will not be made without prior Commission approval, and then only in coordination with the Issuing Office.
2.19 Term of Contract: The term of the contract will commence on the effective date, which the Issuing Office shall the fix date be after the contract has been fully executed by the contractor and by the Commission and all approvals required by the State contracting procedures have been obtained. 10 2.20 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:
2.20.1 Enter into pre-selection negotiations, including the use of an online auction;
2.20.2 Schedule oral presentations; and
2.20.3 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 Section 4 shall also be used to evaluate the best and final offers.
2.21 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.
2.22 Negotiations with the Selected Offeror: Post-selection negotiations will be conducted by a negotiating team (consisting of individuals on the Evaluation 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.
2.23 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.
2.24 RFP Protest Procedure: A protest by a party not submitting a proposal must be filed within seven calendar 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 RFP. Offerors may file a protest within seven calendar 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 days after the date the notice of award of the contract is posted on the OCC website. The date of filing is the date of receipt of the protest. An Offeror must file a protest in writing with the Issuing Office.
2.25 Offeror’s Representations and Authorizations: By submitting its proposal, each Offeror understands, represents, and acknowledges that: 11 2.25.1 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. The State shall treat any misstatement, omission, or misrepresentation as fraudulent concealment of the true facts relating to the Proposal submission.
2.25.2 The Offeror has arrived at the price(s) and amounts in its proposal independently and without consultation, communication, or agreement with any other Offeror or potential offeror.
2.25.3 The Offeror has not disclosed the price(s), the amount of the proposal, nor the approximate price(s) or amount(s) of its proposal to any other firm or person who is an Offeror or potential offeror for this RFP and the Offeror shall not disclose any of these items on or before the proposal submission deadline of August 31, 2017.
2.25.4 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.
2.25.5 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.
2.25.6 To the best knowledge of the person signing the proposal for the Offeror, the Offeror, its affiliates, subsidiaries, officers, directors, and employees are not under investigation currently by any governmental agency and have not in the last four 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.
2.25.7 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 Stateincluding, but not limited to, any state tax liability not being contested on appeal or other obligation of the Offeror that is owed the State of Oklahoma.
2.25.8 The Offeror is not under suspension currently or debarment by the State of Oklahoma, 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 any such certification.
2.25.9 The Offeror has not made, under separate contract with the Issuing Office, any recommendations to the Issuing Office concerning the need for the services
12 described in its proposal or the specifications for the services described in the proposal.
2.25.10 Each Offer, by submitting its proposal, authorizes agencies of State to release to the State information concerning the Offeror’s Oklahoma taxes, unemployment compensation, and workers’ compensation liabilities.
2.25.11 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.
2.26 Calendar of Events: The Commission will make every effort to adhere to the following schedule:
Activity Responsibility Date
July 31, 2017 Questions submitted via email to the Issuing Officer Offerors 5 p.m.
Answers to all Offeror questions posted to the Commission website on a continuous basis. Issuing Office Ongoing http://www.occeweb.com
Please monitor website for all communications regarding the RFP on an ongoing basis. Offerors Ongoing http://www.occeweb.com
Sealed proposal must be received by the Issuing August 31, 2017 Offerors Office at address indicated in Section 2.11 by 5 p.m. 5 p.m.
13 SECTION 3. STATEMENT OF WORK
3.1 Objectives:
3.1.1 General
3.1.1.1 The Fund Manager supports the OUSF Administrator in the daily operations of the Oklahoma Universal Service Fund.
3.1.2 Specific
3.1.2.1 Specifically, the Fund Manager is expected to perform the following duties:
3.2 OUSF Contribution Functions:
3.2.1 Maintain a process to track contributing telecommunications providers' contributions to the OUSF, utilizing Accounts Receivable Subsidiary Ledger software. Must maintain on demand information for use by the OUSF Administrator.
3.2.2 Review reported data to ensure completeness and accuracy of reported revenue an d Fund assessments and contact providers whose accounts contain unexplained va riances in reported revenues or OUSF assessments.
3.2.3 Send written notification to each contributing provider that elects to report and remit payment on a basis for which the contributor does not qualify, e.g. when a company approved for remittance on a monthly basis, wants to remit payments on a quarterly basis.
3.2.4 Send initial notices of delinquency to all delinquent contributors when a payment is 30 days past due and follow up with at least one subsequent written notice and/or phone call to the contributor to pursue collection of OUSF payments that are 60 days past due.
3.2.5 Assess interest charges of 1.5% per month pro rata per diem on contributions that are not paid by the due date.
3.2.6 Maintain logs of notices of delinquent contributors and refer to the Administrator for further enforcement, on a monthly basis, all accounts more than 90-days past due.
3.2.7 In December or January preceding the beginning of the next fiscal year, assist the Administrator with the process of determining the amount of contribution required from each contributing provider. The Administrator mails reporting forms to each contributing provider, to acquire appropriate data to compute the individual provider’s aggregate intrastate end-user telecommunications retail revenue and to compute year-end access line growth percentages for development 14 of the following year’s OUSF amount.
3.3 OUSF Distribution Functions:
3.3.1 Maintain a process and database to track disbursements made to telecommunicati ons providers for approved funding amounts on behalf of beneficiaries.
3.3.2 Ensure that no monthly payment is made to a fund recipient who has not submitte d their monthly request for funding, unless the payment is for Primary OUSF, where a monthly amount has been determined, subject to true up on a annual basis.
3.3.3 Develop exception reports for PUD staff, that identify potential duplicate funding, incorrect federal funding, and changes in service or price.
3.3.4 Immediately inform the OUSF Administrator, if the Manager has reason to believe that any telecommunications provider has submitted false information to the Manager with the intent of obtaining fraudulent funding, under-reporting end- user revenue or if any other irregularity occurs in the operation or administration of the OUSF.
3.4 OUSF Bank Investments and Account Balances:
3.4.1 Invest OUSF moneys in interest-bearing instruments designed to minimize risk of loss while providing maximum liquidity; permitted investments shall include:
3.4.1.1 Marketable obligations directly and fully guaranteed by the United States government.
3.4.1.2 Federally-insured checking, money market accounts, or certificates of deposit.
3.4.1.3 Other accounts as expressly approved by the OUSF Administrator.
3.5 OUSF Reporting Functions:
3.5.1 Provide the PUD staff with general summations of financial performance of the fund, e.g., collections, disbursements, and fund balance.
3.5.2 Prepare monthly reports of fund activity by the 18th of each month, detailing carrier assessments, revenue variances, delinquent payers, interest charges (if applicable), lockbox deposits and reconciliation, interest earned, fund disbursements, and cumulative results.
3.5.3 Prepare monthly reports by the 18th of each month to include: a general ledger, an accounts receivable subsidiary ledger, a balance sheet, an income statement, and a statement of cash flow, which will tie to the fund income statement.
3.5.4 Maintain records by contributor, by recipient and by beneficiary. 15 3.5.5 Provide any additional reports as requested by the OUSF Administrator.
3.4.6 Promptly respond to PUD staff requests for information pertaining to Fund administration.
3.5.7 Deliver the balance sheet, income statement, and sources and uses of funds statement to the Fund auditor by May 1 of each year so that the auditor may prepare its report.
3.5.8 Cooperate with the independent auditor selected by the Commission, and provide data and information reasonably required to support audit activities.
3.5.9 Consider the auditor’s report in preparing the annual report for submission to the OUSF Administrator and include any under or over collections identified by the audit report in developing a proposed budget for the upcoming fiscal year.
3.5.10 Submit the Manager’s annual report by September 1 or 60 days following receipt of the audit report, whichever is later.
3.5.11 Have access to the books of account of all telecommunications service providers to the limited extent necessary to verify their intrastate end-user telecommunications retail revenues and other information used by the Manager in determining assessments and disbursements for the OUSF.
3.5.12 Treat any competitive and financial information received as confidential and proprietary and only release said information upon order of the Commission.
3.5.13 Operate on a fiscal year, which shall run from July 1 to June 30 of the following calendar year.
3.6 Internal Controls:
3.6.1 Maintain a system of internal controls.
3.6.2 Maintain all accounting information utilizing a double-entry accounting system.
3.6.3 Perform a systematic review of prepared financial information, prior to submission to the OUSF Administrator.
3.6.4 Incorporate a written policies and procedures manual, which documents the responsibilities, policies and procedures of the Manager as approved by the OUSF Administrator. This manual will be maintained as part of the overall PUD Operations Manual. An update shall be required at least annually, but no later than September 1 of each year.
16 3.6.5 Inform the OUSF Administrator, in writing of substantive or material changes or modifications to the operating procedures and staffing within 30 days of such change.
3.6.6 Comply with procedures and guidelines established by the OUSF Administrator, but may request the OUSF Administrator amend, modify or delete procedures or guidelines, (the Manager will not have the authority to develop or interpret the OUSF Administrator’s procedures or guidelines with respect to the Fund, and any dispute between the Manager and any contributing telecommunications provider shall be submitted to the OUSF Administrator for resolution).
3.6.7 Execute an "independence and no conflict of interest" affidavit.
3.6.8 Maintain adequate principal liability insurance coverage, criminal liability coverage, and a sufficient umbrella liability policy.
3.7 OUSF Database Functions:
3.7.1 Continue routine development and maintenance of the existing OUSF database, which includes detailed data about contributions to and distributions from the OUSF.
3.7.2 The database should have report generation capability to prepare standard monthl y reports and special report capability to summarize information by various select ed data.
3.7.3 Develop web portal with permissions-based access for telecommunications service providers, PUD staff, and contracted agent staff, the Fund Manager, and the public. The portal should allow users to view data from the database using specialized views, queries, and reports, and should allow users with appropriate permissions to update data within the database in real time.
3.7.4 During the development of the web portal, remote access to the database must be available to the PUD staff through some other means, including the ability to export standard reports to Excel (.xls or .xlsx) and/or comma-separated value (.csv) formats.
3.7.5 Database must be developed to allow expansion of reported and tracked data.
3.7.6 The database will be property of the OUSF.
3.8 Nature and Scope of the Project: For the time of July 1, 2018, through June 30, 2019, and longer if the contract is extended, the Manager is expected to collect payments from contributing carriers to the Fund, assess interest charges on carriers that are in arrears, and refer delinquent carriers to PUD staff for collections. The Manager is expected to manage the cash flow and administration of the Fund in a manner such that monthly payments to recipient carriers occur by the 25th of each month, and contributions are due on the 15th of each month. The Manager prepares an annual Manager’s report due 17 September 1 of each year following the end of the fiscal year. At the beginning of each calendar year, the OUSF Administrator mails out forms to all contributing carriers operating in Oklahoma for them to report their net end-user operating revenues for the prior year and access lines (recipient carriers only). These figures are then used in calculating the contribution factor for the upcoming year. The Manager will assist the OUSF Administrator with this process.
3.9 Requirements: The Manager is required to provide the Commission’s Public Utility Division Fund Administrator monthly status reports detailing the cash flow for the prior month, as well as delinquent contributing carriers broken down by 30 day arrearage increments. Additionally, interest earned must be reported as well as all account expenditures for the prior month. By September 1 of each year, a Manager’s Report is due to the Commission’s Public Utility Division’s Fund Administrator detailing recommendations and adjustments to be made to the Fund. In the event the Fund is running short on cash, and it looks as though the Manager won’t be able to make full payments in the future, the Manager must notify the Commission’s Public Utility Division Fund Administrator as soon as possible so steps may be taken in order to avoid an emergency. The Commission has the authority to order interim adjustments to the contribution factor; thus, increasing cash flow to the Fund.
3.10 Testimony: The Contractor is required to stand behind its conclusions and recommendati ons by testifying and by aiding in the preparation of testimony by PUD staff, if necessary, in any future proceedings before the Commission or for proceedings in other venues. The Contractor is required to provide factual support for its conclusions and recommendations in such testimony. The Contractor’s staff involved in providing such testimony shall be c ompensated at 150% of the hourly rates indicated in the Proposal. These costs will be pai d in accordance with the payment methods of the contract; however, those costs will be in addition to and billed separately from the base contract amount at 150% of the salary rate s provided in the Contractor’s Proposal.
3.11 Ongoing Obligations: Data, records, and other materials collected or created by the Cont ractor for this Project is property of the Commission. Information must be maintained in a manner to enable access for at least ten years from date of creation of the data, record or other materials. Prior to destruction of such materials, the Contractor must notify the OUSF Administrator to allow the Commission to take custody of such materials, if it so c hooses.
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.
18 SECTION 4. EVALUATION CRITERIA
4.1 Mandatory Responsiveness Requirements: To be eligible for selection, a proposal must be:
4.1.1 Timely received from an Offeror by 5:00 p.m. Central Standard Time August 31, 2017
4.1.2 Properly signed by the Offeror;
4.1.3 Formatted such that all cost data relating to this proposal and all Disadvantaged Business Cost data is kept separate from and not included in the Technical submittal.
4.2 Technical Nonconforming Proposals: The Issuing Office reserves the right, in its sole discretion, to waive technical or immaterial nonconformities in an Offeror’s proposal.
4.3 Evaluation Procedure: The Issuing Office has selected a committee of qualified personnel to review and evaluate timely submitted proposals. 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 State as determined by the Issuing Office after taking into consideration all of the evaluation factors
4.4 Criteria for Selection: The following criteria will be used, in order of relative importance from the highest to the lowest weighted factors, in evaluating each proposal:
4.4.1 Workplan: The Offeror's work plan will be of principal consideration. Within this category, the Commission will consider the Offeror's understanding of the duties of the OUSF Manager, the Offeror’s probable success in discharging the duties of Manager, and the Offeror's prior experience with administering 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. Of secondary importance is independence. The Commission is seeking a neutral, independent third-party to administer the OUSF. Independence from affiliated relationships with any telecommunications carriers is preferred. If the Offeror, or any of its associates, has an affiliate or representational relationship with a Commission-regulated telecommunications carrier, the Offeror 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.
4.4.2 Professional Personnel: This refers to the competence and appropriate assignment of the project management or lead personnel, professional support personnel, and administrative support personnel who are proposed for each task area. Qualifications of personnel will be measured by education and experience, with particular reference to experience on projects similar to that described in the RFP.
4.4.3 COST: This area will be weighted heavily, but it will not be the only deciding factor in the process. Since bids may include one or more segments that are being 19 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 evaluate bids based upon consideration of all of the fixed and variable prices contained in the bid. All compensation paid to the Manager will be paid from the OUSF, and the Commission will pay no compensation. The cost submittal should show costs broken down per month and annually over the contractual period, from July 1, 2018 through June 30, 2019.
20 SECTION 5. OKLAHOMA UNIVERSAL SERVICE FUND REQUEST FOR PROPOSALS FOR FUND MANAGEMENT
Evaluator: ______
Date: ______
Criteria Description Weight Score 1- 5(Best) 1 Experience Documented ability to perform the requested function Reference Quality Project Management Team
2 Project How well does bidder understand the needs Understanding of the project Does the proposal meet all objectives of the RFP?
3 Timeframe Does proposal meet the timelines of the RFP?
4 Risk Has bidder identified potential risks and Factors/Quality mitigations? Assurance Has bidder identified a clear plan for quality assurance?
5 Price
6 Optional Services
21 SECTION 6. OFFEROR RESPONSE FORM
Oklahoma Universal Service Fund Manager Project
STATE OF OKLAHOMA Oklahoma Corporation Commission Public Utility Division RFP No. 2017-1
Enclosed in one package are three separately sealed submittals that constitute 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 Contact Person’s Fax Contact Person’s E-Mail Offeror Federal ID Number
Submittals Enclosed and Separately Sealed: Technical Submittal Disadvantaged Business Submittal Cost Submittal Worker’s Compensation Insurance Filing Number with the Oklahoma Secretary of State
Signature Signature of an official authorized to bind the Offeror to the provisions contained in the Offeror’s proposal: Printed Name
Title
Date
FAILURE TO COMPLETE, SIGN AND RETURN THIS FORM WITH THE OFFEROR’S PROPOSAL MAY RESULT IN THE REJECTION OF THE OFFEROR’S PROPOSAL
22 ATTACHMENT I. NON-COLLUSION AFFIDAVIT
INSTRUCTIONS FOR NON-COLLUSION AFFIDAVIT
1. This Non-collusion Affidavit is material to any contract/purchase order awarded pursuant to this bid.
2. This Non-collusion Affidavit must be executed by the member, officer, or employee of the Offeror who makes the final decision on prices and the amount quoted in the bid.
3. Bid rigging and other efforts to restrain competition, and the making of false sworn statements in connection with the submission of bids are unlawful and may be subject to criminal prosecution. The person who signs the affidavit should examine it carefully before signing and assure that each statement is true and accurate, making diligent inquiry, as necessary, of all other persons employed by or associated with the Offeror with responsibilities for the preparation, approval or submission of the bid.
4. In the case of a bid submitted by a joint venture, each party to the venture must be identified in the bid documents, and an affidavit must be submitted separately on behalf of each party.
5. The term “complementary bid” as used in the affidavit has the meaning commonly associated with that term in the bidding process, and includes the knowing submission of bids higher than the bid of another firm, any intentionally high or noncompetitive bid, and any other form of bid submitted to give a false appearance of competition.
6. Failure to submit an affidavit with the bid proposal in compliance with these instructions may result in disqualification of the bid.
23 NON-COLLUSION AFFIDAVIT
State of ______: County of ______: S.S.
I state that I am ______(Title)______of ______(Name of Firm)______and that I am authorized to make this affidavit on behalf of my firm, and its owners, directors, and officers. I am the person responsible in my firm for the price(s) and the amount of this bid.
I state that:
A. For purposes of this Request for Proposals,
1. I am the duly authorized agent of the above named bidder submitting the bid he rewith, for the purpose of certifying the facts pertaining to the existence of coll usion among bidders and between bidders and state officials or employees, as well as facts pertaining to the giving or offering of things of value to governme nt personnel in return for special consideration in the letting of any contract pur suant to said bid;
2. I am fully aware of the facts and circumstances surrounding the making of the bid to which this statement is attached and have been personally and directly in volved in the proceedings leading to the submission of such bid; and
3. Neither the bidder nor anyone subject to the bidder's direction or control has be en a party:
a. to any collusion among bidders in restraint of freedom of competition by a greement to bid at a fixed price or to refrain from bidding,
b. to any collusion with any state official or employee as to quantity, quality or price in the prospective contract, or as to any other terms of such prospe ctive contract, nor
c. in any discussions between bidders and any state official concerning excha nge of money or other thing of value for special consideration in the lettin g of a contract, nor
d. to any collusion with any state agency or political subdivision official or e mployee as to create a sole-source acquisition in contradiction to 74 O.S. § 85.45j.1.
B. I certify, if awarded the contract, whether competitively bid or not, neither the contract or nor anyone subject to the contractor’s direction or control has paid, given or donate d or agreed to pay, give or donate to any officer or employee of the State any money o r other thing of value, either directly or indirectly, in procuring this contract herein.
24 C. ______(Name of Firm)______, its affiliates, subsidiaries, officers, directors, and employees are not currently under investigation by any governmental agency and have not in the last four 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 on any public contract, except as follows:
I state that ______(Name of Firm)______understands and acknowledges that the above representations are material and important, and will be relied on by the _Oklahoma Corporation Commission_ in awarding the contract(s)/purchase order(s) for which this bid is submitted. I understand and my firm understands that any misstatement in this affidavit is and shall be treated as fraudulent concealment from the Purchasing Agency of the facts relating to the submission of this bid.
______(Signature) (Signatory’s Name)
______(Signatory’s Title)
SWORN TO AND SUBSCRIBED BEFORE ME THIS ______DAY OF ______20____
Notary Public ______
My Commission Expires ______
25 ATTACHMENT II. RFP TRANSMITTAL LETTER
RFP TRANSMITTAL LETTER Oklahoma Universal Service Fund Administrator
STATE OF OKLAHOMA Oklahoma Corporation Commission Public Utility Division RFPOUSF Manager June 30, 2017
[Company Name] [Address] [City, State Postal Code]
Dear Mr./Ms. [Contact]:
You are invited to submit a proposal for the Oklahoma Universal Service Fund Manager Request for Proposal, in accordance with the enclosed request for proposal.
All proposals must be submitted to the address stated in Section I-11 of the RFP by 5:00 p.m. Central Standard Time August 31, 2017, as stated in the Calendar of Events. Late proposals will not be considered regardless of the reason.
All questions should be submitted by email (with subject line “RFP-XXXX Oklahoma Universal Service Fund RFP Question”) to Jim Jones at [email protected] by 5:00 p.m. July 31, 2017. All answers to questions from Offerors will be posted to the Commission’s website on an ongoing basis.
Sincerely,
Jim Jones, Regulatory Manager Public Utility Division Oklahoma Corporation Commission
Enclosure: Request for Proposal
26 ATTACHMENT III. CONTRACT
CONTRACT Oklahoma Universal Service Fund Manager
STATE OF OKLAHOMA Oklahoma Corporation Commission Public Utility Division RFP-2017-1 June 30, 2017
This Contract is entered into by ______(“Contractor”) and the Oklahoma Corporation Commission (“Commission”) (collectively, the “Parties”).
I. Terms of the Parties.
The parties to this Contract agree and promise that:
A. Subject in all respects to the terms and conditions of this Contract and to the duties a nd limitations contained in the statutory and common law of the State of Oklahoma, t he Contractor shall perform as the Oklahoma Universal Service Fund (“OUSF”) Man ager for the Commission. The duties of the Contractor shall be completed as outlined in and in accordance with the promises, warranties and representations contained in t he Contractor’s Proposal (“Proposal”) and the Request For Proposals (“RFP”). The RFP and all exhibits, appendices, addenda, and other attachments thereto, and the Co ntractor’s Proposal and all exhibits, appendices, addenda, and other attachments ther eto are hereby incorporated into this Contract by reference.
B. The Commission’ Public Utility Division (“PUD”),i.e., OUSF Administrator, shall c ooperate with the efforts of the Contractor and the OUSF shall pay the Contractor pr omptly upon submission to it of invoices for payment as described below.
C. The Commission by its agent, the OUSF Administrator and other designated Staff, as described in Section II.A below, shall have the right and opportunity to participate ac tively in the activities of the Contractor and to this end shall have immediate access t o all data, models, and other materials or information provided to the Contractor exce pt that the Contractor may withhold such data, models, materials, or information to w hich the Commission does not otherwise have a right of access or inspection. The Co mmission shall be advised if any data, models, materials, or information is being so d esignated and may contest such designation.
D. The OUSF Administrator shall generally have immediate access to all data, non-prop rietary models, and other factual materials or factual information provided to the Co mmission by the Contractor. Commission may designate some materials as confident ial between the Contractor, Commission and the OUSF Administrator.
27 E. The Contractor is required to retain records relative to the Contract for the duration of the Contract and for a period of seven (7) years following completion or termination of an Acquisition. If a claim, audit, litigation or other action involving such records is started before the end of the seven-year period, the records are required to be maintained for two (2) years from the date that all issues arising out of the action are resolved, or until the end of the seven (7) year retention period, whichever is later.
II. Party Representatives and Payment
A. Project Officer and Party Representatives
1. The Commission has designated Jim Jones Regulatory Manager Public Utilit y Division, Room 580, Jim Thorpe Building, 2010 North Lincoln Blvd., Okla homa City, OK (405-521-6737, [email protected] (and/or his designated alternative) as its Staff contact (“Project Officer”) and has authorized him to act on behalf of the Commission under this Contract. The Project Officer may appoint members of the Commission’s Public Utility Division Staff or its desi gnees to represent him as appropriate.
2. The PUD has designated Kris Prouty, Room 580, Jim Thorpe Building, 2010 North Lincoln Blvd., Oklahoma City, OK 73105, (405)522-6074, k.prouty@ occemail.com as its Staff contact (OUSF Payments Manager) and has authori zed her to act as the lead contact on behalf of the OUSF under this Contract.
3. The Project Officer and the OUSF’s Administrator shall have primary respon sibility and authority on behalf of the Commission and the OUSF, respectivel y, to administer this contract and to agree upon procedures for coordinating th e efforts of the Contractor.
4. The parties agree to communicate fully with each other through the designate d representatives and to keep each other informed of all pertinent matters and developments relating to the Project.
5. The Contractor shall provide the Project Officer and OUSF Administrator wit h reasonable notice of and opportunity to attend all high-level planning meeti ngs regarding the OUSF.
6. The Commission, the Contractor, and the OUSF Administrator will provide a 28 n atmosphere conducive to the free flow of information between the Parties.
B. Expenses and Payment
1. The OUSF Administrator shall have the right and opportunity to approve, in whole or in part, each invoice. The basis for the OUSF Administrator’s appr oval shall be a finding that the expenses are reasonable, necessary and correct and billed in accordance with the provisions of this Contract. Such approval or payment may be withheld if the following items are not included in the inv oice:
a) A list of the individuals, by name, who have worked during the invoic e period;
b) A list of the monthly and annual reports prepared during the invoice p eriod;
c) A list of any other work done during the invoice period;
d) A listing by category of materials and supplies purchased during the i nvoice period;
e) A list of transportation lodging, and meal expenses by each individual incurring such costs during the invoice period and the basis for calcul ating such costs; and
f) The specific dates when services were rendered.
2. The approval of the OUSF Administrator may also be withheld as to any cost s that are not just, reasonable, or in conformity with costs in the Proposal.
3. The total amount paid the Contractor under this Contract shall not exceed t he following amounts or as otherwise specified in the Request for Proposa l and the Contract, unless the Commission’s OUSF Administrator approve s additional expenditures in writing. Total Contract Price: $ ______
4. No expenditures will be reimbursed if they were incurred before the effect
29 ive date of this contract.
5. All charges for services and other costs charged by the Contractor are subj ect to review at any time by the OUSF Administrator and the Commission.
III. Other Rights of Parties A. Commission's Right to Disapprove Expenditures The Commission, through the OUSF Administrator, shall have the right to approve o r disapprove invoice expenditures and may adjust payment to the Contractor for the a mount of any disapproved expenditure. The Contractor will not be paid for any cost incurred for services not in compliance with the terms of this contract. The OUSF A dministrator will provide in writing within thirty days of invoice receipt an explanati on of any invoiced costs that are disallowed by the Commission. Nothing herein shal l preclude the OUSF Administrator from questioning the reasonableness or propriety of any invoice, or any portion of an invoice, submitted by Contractor, prior to payme nt of the same.
B. Commission's Right to Make Amendments and Changes to Contract Subject to the terms and conditions of this Contract and to the statutory and common law of the State of Oklahoma, the Commission shall have the right to make changes i n the Statement of Work in the Proposal with the concurrence and written agreement of the Contractor, provided that any such changes are within the general scope of the Statement of Work, that payment for work performed under such changes shall be m ade pursuant to the Proposal, and that the total cost of this contract is not exceeded. Approval of OUSF for such changes shall not be required; however, prior to making any such change the Commission will consult with OUSF and the Contractor.
C. Confidentiality 1. The parties recognize that it will be necessary for the Contractor to review cer tain confidential and proprietary information. Accordingly, the Contractor, O USF, and the Commission have executed a Nondisclosure Agreement attache d hereto as Exhibit 1, which is hereby incorporated into this Contract by refer ence.
2. The executed Contract, which includes the Contractor’s Proposal, and the fin al reports may be released by the Commission, subject to confidentiality restr ictions. Any other information that is not otherwise public will be released o nly after consent of the Contractor and OUSF.
3. If the release is to the media, the Commission agrees to inform OUSF prior to 30 such release and to provide an advance copy of the release to OUSF.
4. No release of any information concerning the Project other than the existence and nature of the Contractor may be made by the Contractor or OUSF withou t the prior written approval of the Commission’s Project Officer or his/her de signee. D. Termination The Commission reserves the right to terminate this Contract with thirty (30) days no tice to the Contractor if the Contractor's performance is, in the sole view of the Com mission, unsatisfactory and not in keeping with the Proposal and the RFP, and/or for any material breach of the terms contained herein. The Commission shall pay the Co ntractor for approved work completed until the date of contract termination. The Co mmission and the Contractor will consult and the Commission will determine what work should be carried out between the time the notice of termination is given and th e termination date of the Contract. In the event of a material breach of the Contract t erms, the Project Officer shall inform the Contractor’s Representative of the breach. The Contractor shall have twenty days in which to cure the breach to the satisfaction of the Commission. This provision shall not be construed as a limitation on remedies by the Commission or the Contracting Entity for breach of this Contract by the Contr actor.
IV. Other Agreements by the Parties
A. Non-Discrimination Clause During the term of this contract, as it affects any individual employed under this cont ract, the Contractor agrees as follows:
1. The Contractor shall not discriminate against any applicant for employment, any independent contractor, any socially/economically restricted business, or any other person because of race, color, religious creed, ancestry, national ori gin, age, sex, or disability.
2. The Contractor shall take affirmative action to ensure that applicants are empl oyed and that employees or agents are treated fairly during employment, with out regard to their race, color, religious creed, ancestry, national origin, age, s ex, or disability. Such affirmative action shall include, but is not limited to th e following: employment upgrading, demotion or transfer, recruitment or rec ruitment advertising, layoff or termination, rates of pay or other forms of com pensation, and selection of training.
31 B. Status of Contractor The parties hereto agree that the Contractor and any agents and employees of the Co ntractor shall act, in the performance of this Contract, in an independent capacity and not as officers, employees or agents of the Commission or OUSF.
C. Interest of Contractor The Contractor warrants that it presently has no interest and promises that it shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of its services hereunder. The Contractor agrees that in the per formance of this Contract, it shall not knowingly employ any person having such inte rest. The Contractor further certifies that no member of the board of the Contractor o r any of its officers or directors have such an adverse interest. Contractor personnel who perform the services are employees of the Contractor (or its subcontractors) and the Contractor will be solely responsible for payment of compensation to such perso ns. The Contractor agrees to indemnify, defend, and hold harmless the Commission or OUSF for any claim asserted against the Commission or OUSF alleging that the C ommission or OUSF is an employer, co-employer or joint employer of any Contracto r personnel. The Contractor will assume full responsibility for payment of all federal, state, provincial and local taxes, withholding or contributions imposed or required u nder unemployment insurance, social security and income tax laws with respect to su ch persons. Should the Commission or OUSF be required to pay any amount to a go vernmental agency for failure of the Contractor to withhold any amount as may be re quired by law, the Contractor agrees to indemnify, defend and hold harmless the Co mmission, or OUSF for any amount so paid, including interest, penalties and fines. The Contractor is not an agent of the Commission or OUSF and has no authority to r epresent the Commission or OUSF as to any matters, except as expressly authorized in this Contract.
D. Disputes All questions arising respecting any matter pertaining to this Contract or any part the reof or any breach of contract arising there under shall be referred to the Project Offi cer. Any dispute, which cannot be settled by negotiations after submission to the Pro ject Officer, shall then be submitted to the Commission for resolution. The provision s of this paragraph shall not be construed to limit the remedies of the Commission, th e Contractor, and OUSF for breach of this Contract, nor shall it limit the Commissio n, the Contractor, and the Contracting Entity’s rights to appeal to the State Court afte r resolution by the Commission. This provision shall not be construed as an arbitrati on provision that provides the Commission with arbitration powers.
E. Conflicts between the Contract, the RFP, and the Offering Whenever a provision of the Offering conflicts with the Contract or the RFP, the pro visions of the Contract and the RFP (which includes the Commission responses to qu estions from bidders) will prevail over the Offering. Whenever a provision of the Co ntract conflicts with RFP, the provisions of the Contract will prevail over the RFP. 32 F. Integration Clause This Contract, and all exhibits, appendices, addenda, and other attachments thereto, c onstitutes the entire agreement among the parties, subject to the provisions of paragra ph G “Amendments" below. No other agreements, whether oral or written, or outsid e conditions, warranties, or understandings regarding the subject matter of this Contr act shall be deemed to exist for purposes of interpreting this Contract, nor shall any s uch agreements be enforceable against the Commission, OUSF, or the Contractor.
G. Amendments No amendment or modification changing the scope or terms of this Contract shall ha ve any force or effect unless it is in writing and signed by all parties except as provid ed in this Contract.
H. Applicable Law Jurisdiction This Contract shall be interpreted, construed, and governed by the laws of the State o f Oklahoma. Contractor and OUSF expressly submit to the personal and subject mat ter jurisdiction of the Courts of the State of Oklahoma.
I. Assignment and Delegation Neither this Contract nor any of its benefits or duties may be assigned or delegated b y subcontract or otherwise, except for those subcontracts specifically identified by th is Proposal, without prior written approval by the Commission, who shall first consul t with OUSF. Any subcontract shall contain all of the provisions of this Contract.
J. Severability If any provision of this Contract is invalid, the remainder of the Contract shall not be affected thereby if the essential terms and conditions of the Contract remain valid, le gal and enforceable.
J.2 Force Majeure The Contractor is not liable for failure to perform the Contractor’s obligations if such failure is a result of Acts of God (including fire, flood, earthquake, storm, tornado, h urricane or other natural disaster), war, invasion act of foreign enemies, hostilities (re gardless of whether war is declared), civil war, rebellion, revolution, insurrection, mi litary or usurped power or confiscation, terrorist activities, nationalization, governme nt sanction, blockage, embargo, labor dispute, strike, lockout or interruption or prolo nged failure of electricity [or telephone service]. If the suspension of performance c ontinues for a period of more than three months as a result of a Force Majeure Event, the Commission or the Contractor is entitled to terminate this Contract by giving thirt y-day notice to the other party pursuant to the notice provisions of this Contract. 33 K. Non-Waiver No provision of this Contract can be waived by any party unless made in writing and signed by the party against whom waiver is sought; nor shall the failure by any party to, at any time or on multiple occasions, require performance of any provision hereof be construed as a waiver of future enforcement thereof; nor shall waiver by any party of any breach hereof be construed as a waiver of any future breach.
L. Time of the Essence Time is of the essence in this Contract and any failure to perform any of the terms he reof in the time and manner specified shall be deemed a material breach of this contr act.
M. Effective Date and Term of Contract The Issuing Office shall fix the effective date of this Contract July 1, 2018, after the Contract has been fully executed by the Contractor, OUSF, and the Commission and all approvals required by the State contracting procedures have been obtained. The t erm of the Contract will be from July 1, 2018 until June 30, 2019, with possible one- year extensions through June 30, 2023.
N. Insurance During the performance of the work covered by this Contract, the Contractor shall m aintain the following minimum insurance coverage at no additional cost to the Com mission or OUSF:
1. Workers’ Compensation Insurance as required by law.
2. Employer's Liability Insurance (bodily injury) of $1,000,000 per accident, an d Employer's Liability Insurance (occupational diseases) of $1,000,000 per pe rson and $2,000,000 in the general aggregate.
3. Comprehensive General Liability Insurance of $1,000,000 each person; $1,00 0,000 each occurrence for bodily injuries; and $1,000,000 for property damag e.
4. Comprehensive Automobile Liability Insurance covering all owned and hired vehicles of $1,000,000 each person, $1,000,000 each accident for bodily injur ies, and $1,000,000 each accident for property damage.
34 The insurance called for above is subject to the normal limitations and exclus ions applying to each type of insurance; provided, however, that first dollar c overage shall be provided for each type. The Commission and OUSF (each li sted individually by name) will be named as an additional insured on the poli cies referred to in 2, 3, and 4 above and such insurance shall be endorsed to r equire the insurer to furnish the Commission and OUSF with ten (10) days wr itten notice prior to the effective date of any cancellation of insurance.
The Contractor shall furnish the Commission and OUSF with certificates or o ther documentary evidence showing that the insurance to be carried by the Co ntractor in accordance with this paragraph has been arranged.
O. Indemnity by Contractor The Contractor agrees and undertakes to indemnify, defend, and hold harmless the C ommission and OUSF and their respective agents and employees and subcontractors against all liabilities, claims, damages, causes of action, judgments, costs and expens es, including reasonable attorneys’ fees, in any way relating to or arising out of any a ction or operation of the Contractor, or its respective agents, employees, or subcontr actors under this Contract, including but not limited to personal injury or property da mage, including but not limited to injury or damage to the person or property of the Commission, OUSF, or the Contractor, or their respective agents, employees, or subc ontractors, and shall, at the request of the Commission or OUSF, defend any and all actions brought against the Commission or OUSF, and their respective agents, emplo yees, or subcontractors based upon any such claims or demands.
P. Immunity Nothing contained in this Contract shall be construed as a waiver of the sovereign im munity of the State of Oklahoma or the Commission.
Q. Gratuities The Contractor, on behalf of itself and its employees, agents, and subcontractors, war rants that no gratuity, payment, gift, service or other item of value has been or will be knowingly offered to any Commission or OUSF employees or to any family member or designee, associate or agent of any Commission or OUSF employee. The tenderin g of any such gratuity, payment, gift, service or item of value to such persons is an ac t of default and shall give rise to an immediate right of termination by the Commissio n of this Contract. In addition, the Contractor will be liable to the Commission for a ny damages, direct, indirect or consequential, as a result of the tendering of any such gratuity, payment, gift, service or item of value to such persons, whether such action is knowingly caused by the Contractor, its employees, agents or subcontractors.
R. Contractor Integrity Provisions
35 The Contractor agrees:
It is essential that those who seek to contract with the State observe high standards of honesty and integrity. They must conduct themselves in a manner that fosters public confidence in the integrity of the State procurement process.
In furtherance of this policy, Contractor agrees to the following:
1. Contractor shall maintain the highest standards of honesty and integrity durin g the performance of this contract and shall take no action in violation of stat e or federal laws or regulations or any other applicable laws or regulations, or other requirements applicable to Contractor or that govern contracting with th e State.
2. Contractor shall establish and implement a written business integrity policy, which includes, at a minimum, the requirements of these provisions as they re late to Contractor employee activity with the State and State employees, and which is distributed and made known to all Contractor employees.
3. Contractor, its affiliates, agents and employees shall not influence, or attempt to influence, any State employee to breach the standards of ethical conduct fo r State employees.
4. Contractor, its affiliates, agents and employees shall not offer, give, or agree or promise to give any gratuity to a State official or employee or to any other person at the direction or request of any State official or employee.
5. Contractor, its affiliates, agents and employees shall not offer, give, or agree or promise to give any gratuity to a State official or employee or to any other person, the acceptance of which would violate any statute, regulation, stateme nt of policy, management directive or any other published standard of the Stat e.
6. Contractor, its affiliates, agents and employees shall not, directly or indirectly offer, confer, or agree to confer any pecuniary benefit on anyone as consider ation for the decision, opinion, recommendation, vote, other exercise of discr etion, or violation of a known legal duty by any State official or employee.
7. Contractor, its affiliates, agents, employees, or anyone in association with hi m or her shall not accept or agree to accept from any person, any gratuity in c onnection with the performance of work under the contract, except as provide d in the contract.
8. Contractor shall not have a financial interest in any other contractor, subcont ractor, or supplier providing services, labor, or material on this project, unless the financial interest is disclosed to the State in writing and the State consents
36 to Contractor’s financial interest prior to State execution of the contract. Cont ractor shall disclose the financial interest to the State at the time of bid or pro posal submission, or if no bids or proposals are solicited, no later than Contra ctor’s submission of the contract signed by Contractor.
9. Contractor, its affiliates, agents and employees shall not disclose to others an y information, documents, reports, data, or records provided to, or prepared b y, Contractor under this contract without the prior written approval of the Stat e. Any information, documents, reports, data, or records secured by Contract or from the State or a third party in connection with the performance of this c ontract shall be kept confidential unless disclosure of such information is:
a. Approved in writing by the State prior to its disclosure; or
b. Directed by a court or other tribunal of competent jurisdiction unless t he contract requires prior State approval; or
c. Required for compliance with federal or state securities laws or the re quirements of national securities exchanges; or
d. Necessary for purposes of Contractor’s internal assessment and revie w; or
e. Deemed necessary by Contractor in any action to enforce the provisio ns of this contract or to defend or prosecute claims by or against partie s other than the State; or
f. Permitted by the valid authorization of a third party to whom the infor mation, documents, reports, data, or records pertain: or
g. Otherwise required by law.
10. Contractor certifies that neither it nor any of its officers, directors, associates, partners, limited partners or individual owners has not been officially notified of, charged with, or convicted of any of the following and agrees to immediat ely notify the State agency contracting officer in writing if and when it or any officer, director, associate, partner, limited partner or individual owner has be en officially notified of, charged with, convicted of, or officially notified of a governmental determination of any of the following:
a. Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen pro perty.
b. Commission of fraud or a criminal offense or other improper conduct or knowledge of, approval of or acquiescence in such activities by Co ntractor or any affiliate, officer, director, associate, partner, limited pa rtner, individual owner, or employee or other individual or entity asso 37 ciated with:
(1) Obtaining; (2) Attempting to obtain; or (3) Performing a public contract or subcontract.
Contractor’s acceptance of the benefits derived from the conduct shall be deemed evidence of such knowledge, approval or acquiescence.
c. Violation of federal or state antitrust statutes.
d. Violation of any federal or state law regulating campaign contribution s.
e. Violation of any federal or state environmental law.
f. Violation of any federal or state law regulating hours of labor, minim um wage standards or prevailing wage standards; discrimination in wa ges; or child labor violations.
g. Violation of any federal or state law prohibiting discrimination in emp loyment.
h. Debarment by any agency or department of the federal government or by any other state.
i. Any other crime involving moral turpitude or business honesty or inte grity.
11. Contractor acknowledges that the State may, in its sole discretion, terminate the contract for cause upon such notification or when the State otherwise learns that Contractor has been officially notified, charged, or convicted.
12. Contractor, by submission of its bid or proposal and/or execution of this contract and by the submission of any bills, invoices or requests for payment pursuant to the contr act, certifies and represents that it has not violated any of these contractor integrity pr ovisions in connection with the submission of the bid or proposal, during any contrac t negotiations or during the term of the contract.
13. Contractor shall cooperate with in any investigation of any alleged State employee br each of ethical standards and any alleged Contractor non-compliance with these prov isions. Contractor agrees to make identified Contractor employees available for inter views at reasonable times and places. Contractor, upon the inquiry or request of the Office of Inspector General, shall provide, or if appropriate, make promptly available for inspection or copying, any information of any type or form deemed relevant to C ontractor's integrity and compliance with these provisions. Such information may inc lude, but shall not be limited to, Contractor's business or financial records, document s or files of any type or form that refers to or concern this contract. 38 14. For violation of any of these Contractor Integrity Provisions, the State may terminate this and any other contract with Contractor, claim liquidated damages in an amount e qual to the value of anything received in breach of these provisions, claim damages f or all additional costs and expenses incurred in obtaining another contractor to compl ete performance under this contract, and debar and suspend Contractor from doing b usiness with the State. These rights and remedies are cumulative, and the use or non- use of any one shall not preclude the use of all or any other. These rights and remedi es are in addition to those the State may have under law, statute, regulation, or other wise.
15. For purposes of these Contractor Integrity Provisions, the following terms shall have the meanings found in this Paragraph 17.
a. “Confidential information” means information that a) is not alr eady in the public domain; b) is not available to the public upo n request; c) is not or does not become generally known to Co ntractor from a third party without an obligation to maintain it s confidentiality; d) has not become generally known to the pu blic through an act, or omission of Contractor; or e) has not be en independently developed by Contractor without the use of c onfidential information of the State.
b. “Consent” means written permission signed by a duly authoriz ed officer or employee of the State, provided that where the m aterial facts have been disclosed, in writing, by pre-qualificati on, bid, proposal, or contractual terms, the State shall be deem ed to have consented by virtue of execution of this contract.
c. “Contractor” means the individual or entity that has entered in to this contract with the State, including those directors, office rs, partners, managers, and owners having more than a five per cent interest in Contractor.
d. “Financial interest” means:
(1) Ownership of more than a five percent interest in any business; or
(2) Holding a position as an officer, director, trustee, partner, employee, or holding any position of management.
e. “Gratuity” means tendering, giving or providing anything of m ore than nominal monetary value including, but not limited to, cash, travel, entertainment, gifts, meals, lodging, loans, subscri ptions, advances, deposits of money, services, employment, or contracts of any kind. 39 f. “Immediate family” means a spouse and any un-emancipated child.
g. “Non-bid basis” means a contract awarded or executed by the State with Contractor without seeking bids or proposals from a ny other potential bidder or Offeror.
h. “Political contribution” means any payment, gift, subscription, assessment, contract, payment for services, dues, loan, forbear ance, advance or deposit of money or any valuable thing, to a candidate for public office or to a political committee, includin g but not limited to a political action committee, made for the purpose of influencing any election inState or for paying debts incurred by or for a candidate or committee before or after any election.
IN WITNESS THEREOF, intending to be legally bound, the Contractor, OUSF, and the C ommission, have caused this Oklahoma Universal Service Fund Administrator Contract to be ap proved and executed under their signatures with a duplicate copy being provided to each of the parties. ______Contractor Date
______Brandy L. Wreath Date Director, Public Utility Division/OUSF Administrator Oklahoma Corporation Commission
40 Nondisclosure Agreement
The Universal Service Fund (“OUSF”), ______(“Contractor”), the Oklahoma Publi c Utility Commission (“Commission”), intending to be legally bound, hereby agree as follows:
1. As part of the performance of the Work of the Contract, it may be necessary for the Contractor to review confidential or proprietary information (proprietary informatio n).
2. In order to safeguard more effectively the proprietary information, the Contractor will designate certain authorized representative(s) to receive and review the proprietary information. Said authorized representatives will agree to be bound by this Nondisclosure Agreement and will sign it prior to receiving any proprietary information and will furnish, upon request, to OUSF or other entity a signed copy of the Nondisclosure Agreement executed by such authorized representative(s). Proprietary information will not be accessible by anyone who has not signed the Nondisclosure Agreement.
3. With respect to proprietary information provided under this Agreement, the Contract or and its authorized representatives shall:
(a) Hold the proprietary information in confidence; (b) Restrict disclosure of the proprietary information only to perso ns authorized under this Agreement who have a need to know; (c) Use the proprietary information solely in connection with the Contractor's work on this Project; (d) except as provided in Paragraph 5 below, not disclose the prop rietary information publicly or privately to any third party in a ny manner, unless such third party has signed this Nondisclosu re Agreement; and (e) Advise the Contractor's representatives of their obligation with respect to the proprietary information.
4. The Contractor may make proprietary information available to the Commission's Sta ff under this Agreement; provided, however, that in the event of disclosure, the Com mission's Staff shall also be bound by the terms of this Agreement. Nothing in this Agreement shall be construed as preventing access by the Commission (outside the s cope of this Project) to the data, books, records, and documents as permitted by the st atutory and common law of the State of Oklahoma.
5. After providing OUSF an opportunity to comment, either the Contractor or the Com 41 mission's Staff may assert at any time that any document claimed to be proprietary is in fact non-proprietary. Any disagreement as to the proprietary or non-proprietary na ture of a particular document or information shall be resolved by action of the Comm ission. 6. Proprietary information that is provided to the Contractor and/or Commission Staff will be protected from disclosure as proprietary until such time as the Commission (o r court of competent jurisdiction, if an appeal of a Commission determination is take n) rules that the documents are non-proprietary and, therefore, subject to public discl osure 7. Nothing in this Agreement shall otherwise affect, abridge, increase, or decrease the st atutory authority of the Commission to investigate or inspect the facilities and data, b ooks, records, and documents of any regulated entity. 8. This Nondisclosure Agreement may be executed in counterpart.
IN WITNESS THEREOF, intending to be legally bound, the Contractor, OUSF, and the C ommission, have caused this Nondisclosure Agreement to be approved and executed under their sig natures, as Exhibit 1to the Contract, with a duplicate copy being provided to each of the parties.
______Contractor Date
______Brandy L. Wreath Date Director of the Public Utility Division/OUSF Administrator Oklahoma Corporation Commission
42 APPENDIX 1. QUESTIONS
OKLAHOMA UNIVERSAL SERVICE FUND (OUSF) SERVICE FUND MANAGER PROJECT
The following provides General Information and Provisions of the Oklahoma Universal Service Fund (“OUSF”) as well as a listing of Q&As that were asked by potential bidders in the 2013 RFP related to the OUSF Fund Manager Project. However, potential Offerors may seek answers to additional questions by submitting questions in writing as outlined in Section 2 paragraph 2.9 above.
General Information and Provisions
1. The OUSF was created by the Oklahoma Telecommunications Act of 1997. Title 17 O.S. § 139.106 as well as the Oklahoma Administrative Code 165:55 and 165:59 outline the statutes, rules and regulations that govern the administration of the OUSF. The OUSF program was significantly modified on May 9, 2016, because of HB2616.
For statutes, rules and regulations that govern the OUSF please see:
http://www.oscn.net/applications/oscn/index.asp?ftdb=STOKST http://www.occeweb.com/rules/rulestxt.htm
Additional procedures may be developed as necessary between the OUSF Administrator and the OUSF Fund Manager for fund administration.
2. The PUD Staff processes all requests for funding from the OUSF and determines the eligibility of the carrier, beneficiary, and the amount of funding to be recommended. In 2016, approximately 317 OUSF applications were filed. Generally, and assuming funding is approved, a request for Special Universal Service funding will involve a lump sum payment to the carrier for no more than eighteen months of prior funding and then an ongoing monthly payment based upon criteria established by Oklahoma Statutes and the Commission’s rules. Special Universal Service funding is provided to qualifying schools, libraries, and healthcare entities as a reimbursement program to carriers that hold a Certificate of Convenience and Necessity.
Primary Universal Service funding for qualified rural local exchange carriers typically involves a lump sum and may include an ongoing monthly payment.
Funding for lifeline customers technically comes from the Oklahoma Lifeline Fund, which is administered as part of the OUSF. To receive funding from the OLF a carrier must be designated as an Eligible Telecommunications Carrier.
Applications for funding, which may include forms, spreadsheets, diagrams, contracts, invoices and tariffs, are submitted to the Court Clerk’s Office via paper. These applications are stamped “Filed” and then given to the Public Utility Division to evaluate and process. 43 The PUD Staff is responsible for reviewing all forms and other material submitted in the application and determining the eligibility of an applicant for OUSF funding.
Monthly payment requests are submitted to the OUSF Administrator and Fund Manager via e-mail, which includes an Excel spreadsheets outlining the funding being requested by beneficiary type.
3. Over 200 telecommunications carriers contribute to the OUSF, which includes incumbent and competitive local exchange carriers, interexchange carriers, wireless carriers and VoIP providers operating in the state.
4. Most all disbursements are made via ACH. The new OUSF Manager will work with the previous Manager to transition contribution and distribution records between the two entities. Any transition from the previous Fund Manager to a new Fund Manager will required a coordinated effort on the part of all parties to ensure that a successful changeover is accomplished, including the establishment of funding associated with any pending applications. The OUSF Administrator believes that there will likely be a significant transition period between these entities, which could be as long as six (6) months or more if necessary. The carriers work directly with the OUSF Manager on monthly payments for funding, which has been approved by the OUSF Administrator.
It is the PUD Staff’s understanding and intent that all records currently held by the exiting fund Manager would be transitioned to a new Fund Manager. The existing Fund Manager would be responsible for fiscal year 2018 reporting; however, any change will require a coordinated effort on the part of all parties to ensure that a successful changeover is accomplished including the “sharing” of future report requirements involving fiscal year 2019.
5. A database is currently under development by the existing Fund Manager and it is the intent of the OUSF Administrator, that all records in the possession of the existing Fund Manager would be transitioned to a new Fund Manager.
6. The OUSF Manager is often indirectly required to participate in the processing of a cause. Funding requests may become very complicated and the OUSF Manager is called upon by PUD Staff to review distribution payments involving multiple carriers who, at different times, have served the same beneficiary. Carriers, in their “monthly payment request” have at times over collected and this is discovered during Staff’s processing of a new cause and the OUSF Manager is required to assist in the reconciliation of historical payments. This type of activity is typical in the day-to-day coordination between Staff and the OUSF Manager. This activity is considered a “normal” part of the OUSF Manager’s duties and is not a separate reimbursable item. This type of activity must be considered in the formal offer.
The Fund Manager is require to provide monthly funding report similar to those found on PUD’s web page at http://www.occeweb.com/pu/OUSF/OUSF.
7. The OUSF Contribution Factor is general updated once per year at the beginning of the 44 new fiscal year; however, mid-year adjustments are permitted if necessary. A mid-year adjustment in the Contribution Factor has never been necessary.
Updating the Contribution Factor generally begins in December preceding the end of the fiscal year. The Fund Manager will coordinate the release of data requests to all carriers and compile responses as a part of the factor development process.
The Contribution Factor is applied to intrastate retail and wholesale revenues to derive the amount that each carrier contributes to the fund.
8. The “winning” Offeror will be expected to, annually work with the OUSF Administrator to determine which telecommunications carriers should be audited during the current fiscal year (“FY”). However, the costs to conduct such audits are not a part of the general fund administrative fee, thus the cost of these audits should not be a part of the RFP response.
9 All carriers complete a “carrier remittance worksheet” on a monthly, quarterly or annual basis, which determines the amount of each carrier’s contribution to the OUSF. Revised “worksheets” are required in the event that a carrier’s revenues change from that originally projected. Neither the Fund Manager nor the Administrator sends monthly, quarterly, or annual invoices to the contributors.
10. Regarding the projected OUSF budget for FY 2018, please see the testimony of Jeremy Schwartz and Brandy Wreath in Cause No. PUD 201700001 on the Commission’s Imagining System. http://imaging.occeweb.com/imaging/OAP.aspx
11. The OUSF Administrator is unaware of the volume of electronic or paper records that might need to be transferred from the previous Fund Manager to a new Fund Manager. All documents filed with the Commission are kept indefinitely and maintained in an electronic imaging system.
12. Specific approval may not be required if and when changing banks; however there should be communications between the OUSF Manager and the Administrator before any new bank is engaged. Under Section 3.3, “OUSF Distribution Functions” specifically subsection 3.3.8, outlines the requirements associated with investing OUSF monies. As long as the Manager complies with these guidelines, specific approval is not required from Staff.
45 General Banking and Investment Questions:
1. What will the average monthly balance in the checking account be?
The monthly checking balance is in the range of $12M. Invested balances are not maintained in the checking account. Also, see OUSF Fund Reports at http://www.occeweb.com/pu/OUSF/OUSF.
2. Will account analysis statements showing transaction volumes and types be provided? If not, please provide the volumes for the following activity: Checks Paid, Deposit Tickets, Number of Checks Deposited, Returned Deposit Items, Outgoing wires, Incoming wires, Stop Payments, Currency Deposited, ACH Files Transmitted, ACH Credits Received & ACH Debits Received, ACH Transaction type volumes (PPD, CCD etc.). Monthly and annual figures would be beneficial if there is seasonality in the activity.
No statements of transaction type or volumes, this is confidential information. The following activity volumes are for March 2013; Checks Paid (18); Deposit Tickets (0); Number of Checks Deposited (293); Returned Deposit Items (0); Outgoing wires (1); Incoming wires (3); Stop Payments (0); Currency Deposited (0); ACH Files Transmitted (2); ACH Credits Received (0) & ACH Debits Received, ACH Transaction type volumes (PPD, CCD etc.) (29 – CCD). Also, see OUSF Fund Reports at http://www.occeweb.com/pu/OUSF/OUSF. Currently all most all transactions are handled via ACH.
3. Are the funds required to be collateralized? If so, what types of collateral would be accepted and what state regulations govern the collateralization process?
No.
4. If collateralizing the balances is required, what venue (3rd party i.e. FED, BONY) will the collateral be held?
There is no collateralization requirement for the OUSF.
5. If collateralizing the balances is required, does the 3rd party need to be chartered in the state?
There is no collateralization requirement for the OUSF.
6. What is the current investment vehicle used for the fund balance?
46 Safe, liquid, low yield accounts See OUSF Distribution Functions, specifically section 3.3.8 for invest requirements.
7. If securities are used, is this process done via an actively managed approach or a brokerage arrangement?
No. See OUSF Distribution Functions, specifically section 3.3.8 for invest requirements.
8. Can you provide a current or recent copy of the investment holdings for the fund?
No.
9. Can you provide a copy of the investment policy statement that governs the assets?
No, this is confidential information, See OUSF Distribution Functions, specifically section 3.3.8 for invest requirements.
Lockbox Questions:
1. Is one lockbox utilized for all payments? Is any sorting of the coupons required?
Yes and coupons are not required.
2. Are you currently using a wholesale or retail lockbox?
Wholesale.
3. Is there ever cash received in the lockbox? If so, how much?
No.
4. What is the average monthly volume of payments received in the lockbox?
293.
5. What are the peak months for lockbox payments?
September.
6. How many acceptable payee names are accepted?
47 Less than three (3).
7. Will the lockbox require any paper correspondence be returned? If so, what is the volume of correspondence, letters, and non-payment types of documents?
Yes and approximately 145.
8. Are all coupons standard? If not, how many different coupons are generated? Please provide a sample of all coupon types.
Yes, Coupons are basically worksheets.
9. Are the bills OCR (Optical Character Recognition) or MICR?
No. Regular bills are not currently sent out to carriers on a monthly basis. Carriers are currently advised of their required remittance by an annual worksheet on which they provide projected “Oklahoma intrastate bill revenues” and the annual factor which is applied to those revenues. Remittance from the carriers is received on a monthly, quarterly or annual basis with “true-ups” when appropriate.
10. Will envelopes be discarded or returned to the client?
Returned.
11. Are copies of checks required?
Yes.
12. Will all deposits be made into one checking account?
All OUSF payments will be sent to the Fund Manager who may use one or multiple accounts to manage the fund. Currently, only one account is being used.
13. What percentage of total payments is made with a single check or more than one check?
Currently, most all payments are made via ACH.
14. Does the lockbox accept foreign checks?
Yes. 48 15. Are credit card transactions accepted through the lockbox?
No, not at this time. Based upon our knowledge, no payment has ever been made to the OUSF using any sort of credit or debit card transaction. It is up to the Fund Manager whether this payment method should be made available.
16. Is this currently an image or paper based lockbox?
Paper.
17. Is daily access to images required?
Not currently, but this requirement could change.
18. Is long term storage required for all documents and checks?
Yes.
19. Is summary and detail reporting required for the lockbox information?
Yes.
20. Do coupons need to be stapled to any other documentation (i.e. copy of a check) that paid the coupon?
Yes, however traditional coupons are not currently utilized in managing the OUSF.
21. If data entry is required what specific detail is needed (i.e. invoice number, account number, customer number, dollar amount etc.)? What is a typical keystroke number for each payment received? Where is the location of the data that needs to be keyed on the coupons?
Data entry is required and there are approximately 11,000 keystrokes for all items per month. The Fund Administrator will often have questions about the contributions and/or distributions to a particular carrier. This information may be requested on the basis of the carrier’s name, the cause number, funded entity or other possible criteria. This information is currently maintained by the existing Fund Manager. Example: Pioneer Telephone Company, Cause No. PUD 201700123, Kingfisher Public Schools, twenty-five eligible buildings, lump sum = $25,000.00, monthly = $500.00.
49 22. Is online access to documents and payments required?
This is a preferred service, but not required.
23. Is a file transmission required? If so, how frequently?
Yes, daily. Information must be available to the Administrator within 24 hours of a request.
24. If a transmission is required, please provide your file format.
The file format is specific to the Administrator’s general ledger system; however, information requests will vary based upon the needs of the Commission. See the OUSF Fund Reports at http://www.occeweb.com/pu/OUSF/OUSF.
ACH Questions:
1. Will OUSF need the ability to originate ACH Payments?
Yes.
2. What will the frequency be? The number of files (daily, weekly, monthly etc.)
Several files per month.
3. What is the average outgoing ACH file amount?
Approximately $2.1 million.
4. What is the peak ACH file total?
$2.1 million.
5. What types of ACH transactions are originated?
CCD.
50 6. Does OUSF have a website for the acceptance of ACH payments?
Not at this time.
7. Are any ACH Payments accepted by phone?
Not at this time.
Balance Reporting Questions:
1. Is balance reporting required for the account?
Yes, we will require a monthly accounting of the fund balance and disbursement transactions. Fund information must be available to the Commission within 24 hours of a request.
2. Is any current day detail on incoming wires or ACH required?
No.
3. Do you receive any special reporting or files (i.e. BAI, EDI etc.)?
No. The only “routine” reports that the Fund Administrator receives can be found at http://www.occeweb.com/pu/OUSF/OUSF.
Wire Initiation Questions:
1. Are there any wires initiated? If so, how many per month?
Yes. Approximately one (1) per month.
2. Are the wires repetitive or non – repetitive? Please provide the break down.
Repetitive. The need for wire transfers is rare; however the ability should be available.
3. Are there any international wires initiated or received?
No. 51 Reconciliation and Fraud Service Questions:
1. Do you use any Account Reconciliation Services (i.e. Positive Pay, Payee Positive Pay etc.)?
Yes, and the Fund Manager is audited at least once per fiscal year.
2. Do you use any bank fraud protection services for the account?
Yes.
52