CITY OF SANTA MONICA REQUEST FOR PROPOSAL MERCHANT PROCESSING SERVICES

Transcription

1 CITY OF SANTA MONICA REQUEST FOR PROPOSAL MERCHANT PROCESSING SERVICES TITLE: MERCHANT PROCESSING SERVICES ISSUE DATE: 11/6/14 QUESTIONS DUE: NOVEMBER 19, 2014 AT 5:00 PM SUBMITTALS DUE: DECEMBER 11, 2014 AT 5:00 PM 1

2 Proposer RFP Checklist 10 Most Critical Things to Keep in Mind When Responding to an RFP for the City of Santa Monica Read the entire document. Note critical items such as mandatory requirements; supplies/services required; submittal dates; format and number of copies required for submittal; contract requirements (i.e., insurance, performance and or reporting, etc.). Note the City s contact name, address, phone numbers, and address. This is the only person you are allowed to communicate with regarding this RFP and is an excellent source of information for any questions you may have. Attend the pre-proposal conference if one is offered. These conferences provide an opportunity to ask clarifying questions, obtain a better understanding of the project, or to notify the City of any ambiguities, inconsistencies, or errors in the RFP. Take advantage of the question and answer period. Submit your questions to the City contact by the due date listed on the front page of the RFP document. View all answers given in the formal addenda issued for the RFP. All addenda issued for an RFP are posted on the City s online vendor portal: Planet Bids and will include all questions asked and answered concerning the RFP. Follow the format required in the RFP when preparing your response. Provide point-bypoint response to all sections in a clear and concise manner. Provide complete answers/descriptions. Read and answer all questions and requirements. Don t assume the City or evaluator/evaluation committee will know what your company capabilities are or what items/services you can provide, even if you have previously contracted with the City. The proposals are evaluated based solely on the information and materials provided in your response. Use forms provided, i.e., cover page, sample budget form, certification forms, etc. Check the City s online vendor portal: Planet Bids for RFP addenda. Before submitting your response, check whether any addenda were issued for the RFP. If so, you must submit a signed acknowledgment for each addendum issued along with your response. Review and read the RFP document again to make sure that you have addressed all requirements. Your original response and the requested copies must be identical and be complete. The copies are provided to the evaluators/evaluation committee members will be used to score your response. Submit your response on time. Note all the dates and times listed on the front page of the RFP document, and be sure to submit all required items on time. Late proposals are never accepted. 2

3 TABLE OF CONTENTS I. INTRODUCTION... 5 A. Background... 5 B. City Contact... 5 C. Original Documents... 6 D. Best Qualified Person or Firm... 6 E. Recycling / Sustainability Bid Submission Guidelines... 6 II. CONDITIONS GOVERNING THE PROCUREMENT... 7 A. General Requirements Receiving Time / Late Proposals Acceptance of Conditions Governing this RFP Incurring Cost Prime Consultant Responsibility Sub-consultants Amended Proposals Proposer s Rights to Withdraw Proposal Proposal Offer Firm Best and Final Offer Disclosure of Proposal Contents No Obligation Termination Sufficient Appropriation Errors and Restrictive Specifications Legal Review Governing Law Oral Changes and Basis for Proposal Agreement Terms and Conditions Proposer s Terms and Conditions Proposer Qualifications Right to Waive Minor Irregularities Change in Agreement or Representatives City Rights Right to Publish Ownership of Proposals Agreement Award Protest Deadline

4 28. Records and Audits Enforcement of Agreement / Waiver III. SUBMISSION FORMAT AND ORGANIZATION A. Number of Responses B. Number of Copies C. Proposal Format Letter of Transmittal Qualifications Key Personnel References Project Work Plan Cost Proposal Convenience Fee IV. PROJECT DESCRIPTION / SCOPE OF WORK A. Supplemental Questions V. EVALUATION B. Evaluation Point Summary C. Evaluation Factors D. Evaluation Process E. Consultant Selection Process VI. SUPPLEMENTAL FORMS AND DOCUMENTS A. Non-Discrimination Policy B. Non-Collusion Affidavit C. Business License D. Oaks Initiative Notice E. Oaks Initiative Disclosure Form F. City Policy on Doing Business with Arizona Firms G. State of Arizona Disclosure Form H. Certification Regarding Debarment, Suspension, Proposed Debarment, and other Responsibility Matters VII. EXHIBITS A. Insurance Requirements B. Merchant Locations

5 I. INTRODUCTION The City of Santa Monica, (referred to hereafter as the City ) is inviting proposals from qualified persons or firms interested in providing merchant processing services for payments to the City for taxes, fees and services. The initial term of the agreement will be for five (5) years with the option to extend the agreement for an additional three (3) years. A. BACKGROUND The City of Santa Monica is a Charter city and operates under the Council-Manager form of government. The City of Santa Monica has a total budget of $574.1 million for fiscal year and has approximately 2,176 full time employees. The City of Santa Monica accepts credit/debit card payments for a variety of revenue collections The City is seeking to contract with a full-service vendor to provide the necessary services to continue credit/debit card acceptance operations and expand services to meet future needs. The City annually processes approximately 8.1 million total credit/debit card transactions with a sales volume of approximately $55 million using thirtyseven (37) merchant accounts. B. CITY CONTACT The City has designated David Carr, as its contact (the City Contact ) for this request for proposals (this RFP ). The City Contact s information is listed below: David Carr, Assistant City Treasurer City of Santa Monica, Finance Department/Administration Division-Treasury Section th Street, Suite 250 Telephone: (310) Fax Number: (310) david.carr@smgov.net Monday through Thursday, 7:30 AM to 5:30 PM Alternate Fridays 8:00 A.M. to 5:00 P.M. The City of Santa Monica offices are closed every other Friday. Please call to ensure that offices are open and that staff is available. Any inquiries or requests regarding this procurement should be submitted to the City Contact in writing. Proposers may contact ONLY the City Contact regarding this solicitation. Other City officers, agents, employees or representatives do not have authority to respond on behalf of the City. Contact with unauthorized City personnel during the selection process may result in disqualification. Specific questions regarding the RFP should be submitted in writing by the required due date to the City s contact person noted above. All answers to submitted questions will be posted on the Planet Bids website. 5

6 C. ORIGINAL DOCUMENTS Bidder shall complete and return the following documents Proposal (including cost proposal) RFP Addenda if issued Non-Collusion Affidavit (this does not need to be notarized) Oaks Initiative Disclosure Form State of Arizona Disclosure Form Certification Regarding Debarment The entire RFP does not need to be returned. The foregoing is provided as a courtesy only. Proposers should read the RFP carefully for document requirements. All documents contained in this RFP will be incorporated into any contract entered into with the best qualified person or firm. D. BEST QUALIFIED PERSON OR FIRM The award, if any, will be made to the best qualified person or firm(s). In evaluating whether a proposer(s) is (are) the best qualified person or firm(s) pursuant to the Santa Monica Municipal Code, City staff may utilize some or all of the following criteria: 1. The training, credentials and experience of the person or firm; 2. The demonstrated competence, ability, capacity and skill of the person or firm to perform the contract or provide the services; 3. The capacity of the person or firm to perform the contract or provide the service promptly, within the time specified, and without delay; 4. The sufficiency of the person s or firm s financial and other resources; 5. The character, integrity, reputation and judgment of the person or firm; 6. The ability of the person or firm to provide such future service as may be needed; 7. The price which the person or firm proposes to charge, including whether the price is fair, reasonable and competitive; and 8. Any other factor which will further the intent set forth in Section 608 of the City Charter. The City shall have absolute discretion in determining the applicability and weight or relative weight of some or all of the criteria listed above and is not required to select the lowest monetary proposer. E. RECYCLING / SUSTAINABILITY BID SUBMISSION GUIDELINES When submitting documents to the City, prospective proposers are required to comply with the following guidelines: All submittals and copies shall be printed on 100% post-consumer waste recycled content or tree free paper. The minimum requirements for recycled content are as follows: 20 lb paper 100% post-consumer recycled content. Paper for color copier 100% post-consumer recycled content. Color bond paper, cover stock, and other miscellaneous paper minimum 30% post-consumer recycled content. Glossy paper minimum 15% post-consumer recycled content. All copies shall be double sided. 6

7 The use of binders, plastic covers or dividers should be avoided. An electronic version may be submitted to the address of the City contact. These guidelines were developed as part of Santa Monica s Sustainable City Program to promote waste reduction and resource conservation within the community. Thank you for your cooperation. II. CONDITIONS GOVERNING THE PROCUREMENT A. GENERAL REQUIREMENTS This procurement will be conducted in accordance with the City of Santa Monica procurement codes and procedures. 1. Receiving Time / Late Proposals It is the responsibility of proposer to see that their proposal is submitted with sufficient time to be received by the City prior to the proposal closing time. The receiving time in the City Office will be the governing time for acceptability of proposals. Telegraphic, telephonic and facsimile proposals will not be accepted. Late proposals are not accepted regardless of postmark and will be returned unopened to the sender. 2. Acceptance of Conditions Governing this RFP Submission of a proposal constitutes acceptance of the Evaluation Factors contained in this RFP. 3. Incurring Cost Any cost incurred by the proposer in preparation, transmittal, presentation of any proposal or material submitted in response to this RFP shall be borne solely by the proposer. Any cost incurred by the proposer for set up and demonstration or for interviews shall be borne solely by the proposer. 4. Prime Consultant Responsibility Any agreement that may result from the RFP shall specify that the prime consultant is solely responsible for fulfillment of the agreement with the City. The City will make agreement payments only to the prime consultant. 5. Sub-consultants Use of sub-consultants must be clearly explained in the proposal, and major subconsultants must be identified by name. Prime consultants shall be wholly responsible for the entire performance whether or not sub-consultants are used. 6. Amended Proposals A proposer may submit an amended proposal before the deadline for receipt of proposals. Such amended proposals must be complete replacements for a previously submitted proposal and must be clearly identified as such in the transmittal letter. City personnel will not merge, collage, or assemble proposal materials. 7. Proposer s Rights to Withdraw Proposal Proposers will be allowed to withdraw their proposals at any time prior to the deadline for receipt of proposals. The proposer must submit a written withdrawal request signed by the proposer s duly authorized representative addressed to the City Contact. 7

8 8. Proposal Offer Firm Responses to this RFP, including proposal prices, will be considered firm for ninety (90) days after the due date for receipt of proposals or sixty (60) days after receipt of a best and final offer, if one is requested. 9. Best and Final Offer The City reserves the right to request Best and Final Offers from any or all proposers. This will be the only opportunity to amend or modify proposals based on feedback from the City. Information from competing proposals will not be disclosed to other proposers prior to submission of a Best and Final Offer. 10. Disclosure of Proposal Contents All proposals are subject to the provisions of the California Public Records Act, California Government Code section 6250 et seq., and any information submitted with a response is a public record subject to disclosure, unless a specific exemption applies. 11. No Obligation This RFP in no manner obligates the City to the eventual rental, lease, purchase, etc., of any goods or services offered until a valid written agreement is executed by the City and the selected proposer. 12. Termination This RFP may be canceled at any time and any and all proposals may be rejected in whole or in part when the City determines such action to be in the best interest of the City of Santa Monica. 13. Sufficient Appropriation Any agreement awarded for multiple years as a result of this RFP may be terminated if sufficient appropriations or authorizations do not exist. Such termination will be effected by sending written notice to the consultant. The City s decision as to whether sufficient appropriations and authorizations are available will be accepted by the consultant as final. 14. Errors and Restrictive Specifications If a proposer discovers any ambiguity, conflict, discrepancy, omission, or other error in the RFP, the proposer should immediately notify the City Contact at (310) designated in Section I, B. Without disclosing the source of the request, the City may issue a written addendum to clarify the ambiguity, or to correct the problem, omission, or other error. If prior to the submission date, a proposer knows of or should have known of an error in the RFP but fails to notify the City Contact of the error, the proposer shall submit their proposal at his, her or its own risk, and, if awarded an agreement, shall not be entitled to additional compensation or time by reason of error or its later correction. 15. Legal Review The City requires that all proposers agree to be bound by the General Requirements contained in this RFP. 16. Governing Law This RFP, and any agreement entered into pursuant to this RFP, are governed by the laws of the State of California. 8

9 17. Oral Changes and Basis for Proposal Proposers may not rely upon oral explanations. All changes and addenda will be issued in writing. Only information supplied by the City in writing through the City s Contact, or in this RFP should be used as the basis for the preparation of proposals. 18. Agreement Terms and Conditions The agreement between the City and the selected proposer(s) will follow the format specified by the City and contain the terms and conditions set forth in Exhibit A, Professional Services Agreement. However, the City reserves the right to negotiate with a successful proposer the final provisions or provisions in addition to those contained in this RFP. The contents of this RFP, as revised and/or supplemented, and the successful proposal will be incorporated into and become part of the agreement. Should a proposer object to any of the City s terms and conditions, as contained in this Section or in Exhibit A, that proposer must propose31 specific alternative language in his, her, or its proposal. Proposer must provide a brief discussion of the purpose and impact, if any, of each proposed changed followed by the specific proposed alternate wording. The City may or may not accept the alternative language. General references to the proposer s terms and conditions or attempts at complete substitutions are not acceptable to the City and may result in disqualification of the proposer. 19. Proposer s Terms and Conditions Proposers must submit with the proposal a complete set of any additional terms and conditions that they expect to have included in an agreement negotiated with the City. 20. Proposer Qualifications The City may make such investigations as necessary to determine the ability of the proposer to adhere to the requirements specified within this RFP. 21. Right to Waive Minor Irregularities The City reserves the right to waive minor irregularities and the right to waive mandatory requirements, provided that all of the otherwise responsive proposals fail to meet the same mandatory requirements and/or doing so does not otherwise materially affect the procurement. This right is at the sole discretion of the City. 22. Change in Agreement or Representatives The City reserves the right to require a change in consultant or representatives if the assigned representatives are not, in the opinion of the City, meeting its needs adequately. 23. City Rights The City reserves the right to award the proposal to separate proposers on any of the services as set forth in the proposer s proposal. It is further understood that if the proposer to whom any recommended award is made fails to enter into an agreement with the City, award may be made to the next best qualified person or firm, who shall be bound to perform as if she, he or it received the award in the first instance. The City reserves the right to reject any and all proposals and to waive all minor irregularities 24. Right to Publish Throughout the duration of this procurement process and agreement term, potential proposers, proposers, and consultants must secure from the City written approval prior to the release of any information that pertains to the potential work or activities covered 9

10 by this procurement or the subsequent agreement. Failure to adhere to this requirement may result in disqualification of the proposer or termination of the agreement. 25. Ownership of Proposals All documents submitted in response to the RFP shall be become the property of the City of Santa Monica and are subject to the provisions of the California Public Records Act, as described in Section II. A. 11. herein. 26. Agreement Award Proposal will be evaluated by a committee comprised of City staff and may include outside consultants (the Evaluation Committee ). The Evaluation Committee will make an award recommendation to City staff. City Council may give approval of the agreement and/or direct staff to negotiate the final terms and execute the agreement. This agreement shall be awarded to the proposer or proposers whose proposal is best qualified, taking into consideration the evaluation factors set forth in the RFP. The most qualified proposal may or may not have received the most points or be the lowest cost proposal. Proposers will be notified when the award is being made or an award recommendation goes to the City Council for approval. 27. Protest Deadline All parties wishing to file a protest shall comply with the procedures set forth below. Proposer may file a written protest with the Purchasing Agent no more than seven calendar days following the posting of award recommendation on the City s online vendor portal website. The protest must include the name address and telephone number of the protestor and or the person representing the protesting party. The written protest must set forth in detail all grounds for the protest including without limitation all facts supporting documentation legal authorities and arguments in support of the grounds for the protest. All factual contentions must be supported by evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to the requirements of this Section may be rejected as invalid. The Purchasing Agent shall review the merits and timeliness of the protest and issue a written decision to the protestant within ten calendar days of receipt of the protest. Any protestant may appeal the decision of the Purchasing Agent to the Director of Finance by filing a letter of appeal within seven calendar days of the date of the Purchasing Agent s decision. The appeal must include the name address and telephone number of the appellant and or the person representing the appealing party. The letter of appeal shall include the original protest and any additional supporting information including without limitation all facts supporting documentation legal authorities and arguments in support of the grounds for the appeal. All factual contentions must be supported by evidence. Any matters not set forth in the letter of appeal shall be deemed waived. Any letter of appeal not conforming to the requirements of this Section may be rejected as invalid. The Director of Finance shall review the merits and timeliness of the letter of appeal and issue a written decision to the appellant within ten calendar days of receipt of the letter of appeal. The Director of Finance shall have final authority to sustain or deny a protest. The Director of Finance s decision shall constitute the City s final determination on the protest. Once a protest has been filed with the Purchasing Agent no contract shall be awarded until the Purchasing Agent has issued his or her decision on the protest or if the 10

11 Purchasing Agent s decision is appealed the Director of Finance has issued his or her final determination. Protests received after the deadline will not be accepted. 28. Records and Audits The Consultant shall maintain such detailed records as may be necessary to demonstrate its performance of the duties required by this Agreement, including the date, time and nature of services rendered. These records shall be maintained for a period of three years from the date of the final payment under this Agreement and shall be subject to inspection by City. The City shall have the right to audit any billings or examine any records maintained pursuant to this Agreement both before and after payment. Payment under this Agreement shall not foreclose the right of City to recover excessive and/or illegal payments. 29. Enforcement of Agreement/Waiver A party's failure to require strict performance of any provision of this Agreement shall not waive or diminish that party's right thereafter to demand strict compliance with that or any other provision. No waiver by a party of any of its rights under this Agreement shall be effective unless expressed in writing and signed by the party alleged to have granted the waiver. A waiver by a party of any of its rights shall not be effective to waive any other rights. III. SUBMISSION FORMAT AND ORGANIZATION A. NUMBER OF RESPONSES Proposers may submit multiple proposals, if desired. The City is not recommending or suggesting that proposers submit multiple proposals. The City is merely stating an available option. If a proposer chooses to submit multiple proposals, each must be entirely separate from the others. The Evaluation Committee will not collate, merge, or otherwise manipulate the proposer s proposals. B. NUMBER OF COPIES Proposers shall provide five (5) identical copies of their proposal to the location specified in Section IB on or before the closing date and time for receipt of proposals. C. PROPOSAL FORMAT 1. Letter of Transmittal a. Identify the submitting organization; b. Identify the name, title, telephone and fax numbers, and address of the person authorized by the organization to contractually obligate the organization; c. Identify the name, title, telephone and fax numbers, and address of the person authorized to negotiate the contract on behalf of the organization; d. Identify the names, titles, telephone and fax numbers, and addresses of persons to be contacted for clarification; e. Be signed by the person authorized to contractually obligate the organization; f. Acknowledge receipt of any and all amendments to this RFP. 11

12 2. Qualifications Provide a brief summary of your firm s history, its capabilities, and its recent relevant experience (last five years). Also, describe your demonstrated experience with similar projects and qualification including professional licenses and certifications. 3. Key Personnel Describe the project team composition and include resumes of key personnel. Proposed members should be available for ninety (90) days from the proposal due date. The City must be promptly notified of any changes in key personnel prior to award. 4. References List a minimum of three (3) references for whom comparable services were provided to in the last five (5) years. Include the name of the firm, name of the contact, telephone number of the contact, address of contact (if available), brief description of the services provided and your firm s role, and the start and completion date. 5. Project Work Plan Describe your understanding of the project and approach. Include deliverables, milestones, assumptions, and identify potential risks that could delay the project. List any resources you expect the City to provide. The City may require oral presentations. 6. Cost Proposal Proposer should provide a complete schedule of fees. The proposal should include ideas as to minimizing discount fees, as possible. 7. Convenience Fee The City does not currently assess a convenience fee on any transactions. However, the City wishes to consider assessing a fee in the future. The proposal should include as an optional item a conceptual plan for implementing a convenience fee. The plan should include updated rules from all card issuers, and cost implications, a recommendation of which types of payments should be assessed such a fee, and any other appropriate information. IV. PROJECT DESCRIPTION/SCOPE OF WORK Nature of Services Required A. General Information The City currently uses the following platforms for credit/debit card processing: 1. Active Network s Payment Manager cash-receipting software which is interfaced with Oracle s JDEdwards Enterprise One financial system for both real-time and file uploads revenue reporting to General Ledger. Credit/debit card transactions processed through Payment Manager interface with multiple billing and service tracking software NorthStar and HdL. 2. Web-based virtual terminal processing software (Windows-based PC) for real-time counter credit/debit card payment processing using a multiplemerchant and multiple-user platform. Processing software has the ability to 12

13 create automatic or manual recurring payments utilizing tokenization, customizable reporting, customizable user access, direct swipe via USB, utilizes system printer for receipting, merchant grouping capabilities. 3. Credit/debit card payment processing for parking services. Utilizes pay-onfoot technology with a direct solution to the processor. Equipment provided by Datapark, Digital Payment Technologies, and IPS Groups. 4. Credit/debit card payment processing using Interactive Voice Response technology 5. Credit/debit card and echeck payment processing via web portals hosted and/or processed by City of Santa Monica, bibliocommons.com, etimspayments.com, NorthStar, Skipjack and HdL with back end processing provided by Merchant Account Processor. 6. Credit/debit card payment processing utilizing self-serve kiosks. 7. Electronic check payment processing via web portals hosted and/or processed by the City of Santa Monica and/or HdL with back end processing provided by Merchant Account Processor. B. Scope of Merchant Account Processor Services The City accepts Visa, MasterCard, Discover and American Express for most City services. The City currently uses approximately 37 separate merchant accounts, each of which is required to settle separately to the City s bank account. The City bank account uses multiple subaccounts for processing funds received by various departments. Multiple merchant accounts are used to facilitate reporting, trend analysis, revenue and expense projections, and reconciliation. The volume of credit card transactions varies by location. Transactions initiated for payment of parking fees are based on high volume/low value rate. Transaction volume and value throughout the City fluctuate seasonally with tax/fee filing deadlines and other seasonal activities. For vendor reference, listed below is the City s estimated annual transactional information: Sales Volume Sales Volume Trans Count Trans Count Total Sales Total Trans Average Visa/MC/Disc Amex Visa/MC/Disc Amex Volume Count Ticket High Volume Transactions $ 21,484, $ 2,785, ,990,347 1,002,299 $ 24,270, ,992,646 $ 3.04 Non High Vol Transactions $ 21,207, $ 9,677, ,202 16,246 $ 30,884, ,448 $ All Transactions $ 42,691, $ 12,463, ,077,549 1,018,545 $ 55,155, ,096,094 $ 6.81 A more detailed breakout by merchant location is provided in Exhibit B. The City has contracted with other vendors to provide certain credit card services. These services are not being considered as part of this RFP at this time. They are as follows: 13

14 1. The City contracts with Xerox for administering and collection of parking citations and certain parking permits. Credit/debit card payments are accepted both online and over the counter at the Xerox payment center. Payments for these services are also accepted at the City s Treasury area, which is part of this RFP. 2. The City contracts with ActiveNet to track all recreation registrations and payments. Credit card payments are accepted both online and over the counter at multiple collection sites. It is the intent, through this RFP process, to review current services in order to minimize fees to the City as well as maximize options for payments to be made online and in person. The Vendor should provide a Conceptual Plan for services to the City that you believe are appropriate for the City. Indicate features, resources, technology, skills and/or services, which distinguishes you and make your services the better choice for the City currently and for the future. Include terminology that is easily understood by an everyday person. Submittal of an implementation plan which includes: the process, requirements of City staff, training that will be provided and project schedule is required as part of the Conceptual Plan. In addition, explain how you will handle day-to-day problem resolution during the transition. The Vendor s proposal should include a flow diagram (with appropriate narration) that graphically describes the City s transaction processing and fees associated with each step. This diagram will show the flow of data from the initial transaction authorization to final funding to the City s bank account. The Supplemental Questions section notes specific service questions. For the response to this RFP, the Vendor is to type each question in the order listed with a response immediately following the question. C. General Terms and Conditions (1) Vendors submitting proposals must be Payment Card Industry Data Security Standard (PCI-DSS) compliant and able to submit proof of compliance to the City with this proposal. Vendors will agree to maintain any association-mandated certifications that may become relevant to the City s credit/debit card processing. (2) The Vendor will provide the City at no charge with expertise and guidance regarding PCI compliance among its merchants when necessary. (3) List of Cardholders/Customers: The Vendor may not sell or otherwise use cardholder information, including name and addresses, for any purposes other than those agreed upon in writing by the City. (4) Audit requirements: Any contract entered into as a result of this RFP will be subject to audit. The Vendor will give full and free access to all records and materials necessary to perform audit fieldwork, including data stored on computer systems, for the City and its authorized representatives. This provision applies to any subcontractor as well. 14

15 (5) The successful Vendor will not assign, transfer, convey, or otherwise dispose of the contract, or right, title of interest, or power to execute such a contract to any person, any other vendor, firm or corporation without previous consent in writing from the City. However, it is understood that the Vendor, in order to fulfill some of the requirements, might utilize alliances with other processing organizations, including the card associations, hardware manufacturers, and/or distributors, and front-end processors. The Vendor must describe when and how these alliances will be utilized to meet the City s requirements. Supplemental Questions A. General Information 1. In which city and state is your merchant credit card processing operations located? If non-local, do you have a toll free customer service telephone number? 2. How do you stay current and competitive in merchant services? 3. What representation do you have on MasterCard or Visa boards or committees? 4. What new services or features have you implemented in the past two years? Do you have any new services/technologies in implementation currently? How will the firm incorporate these in the agreement with the City? 5. What major changes do you see occurring in merchant services in the next five years? Do you have plans to help customers move to new technologies? Should the City anticipate and plan for upcoming hardware and software changes? B. Relationship Representatives 1. What is the expected turn-around time on general issue resolution? Is there any formal procedure for internal escalation of issues for resolution? 2. How often do your primary representative(s) plan to meet with the City to assure smooth functioning, lowest discount/interchange rate reviews, and changes? C. Card Acceptance/Interface Processing 1. Describe the steps involved for acceptance of credit and debit cards. Differentiate between different types of cards and presentment. Describe your virtual processing. 2. Describe the process and any additional equipment/software necessary for acceptance of echecks. 3. What hardware and software requirements will you have for the acceptance of cards? Pin/pinless? 4. Is replacement or reprogramming necessary for existing City equipment? Detail and discuss costs. Does the City s current equipment represent any connectivity difficulties including integration of data, security and connectivity issues? 5. Do you provide equipment on a rental or purchase basis? Describe equipment maintenance plans for any rental equipment. 6. What is the expected/guaranteed turnaround time on maintenance or equipment substitution for rental equipment? 7. How do you handle equipment conversions or deployment needs on rental equipment? 8. What supplies will be provided with a purchase or maintenance agreement? 9. Is there any additional installation required for virtual processing? Describe. 15

16 10. Describe any browser-based and/or terminal based systems you are recommending. Describe the interface requirements and compatibility issues. 11. What flexibility does the City have regarding how transactions are listed on customer card statements? Can the City set the description for its charges as those charges will appear on the customer bills? (The City needs clear definition as to the charge source to eliminate excessive charge backs.) D. Authorization Processing 1. What authorization/connectivity gateway options do you support? Which do you recommend? List and describe alternatives. 2. Describe the process you use to add additional third party gateways. 3. What is the procedure to reverse/recall an incorrect authorization? Describe how you handle an after-authorization return. 4. What limitations, if any, are set by batch? Are there any limitations on the number of files transmitted each day? 5. Do you maintain direct authorization and settlement links to the networks or utilize a third party for authorizations? Describe your configurations. 6. Do merchants incur any monthly access/subscription fees to connect to the network? If so, provide details. 7. Describe your address verification (AVS) compliance process. 8. Describe procedures to be followed if a transmission request is denied authorization. 9. Are there any authorization differences between cards? E. Settlement Processing 1. Describe the settlement process workflows for the merchant with terminal based and virtual systems. 2. How are the funds transferred: ACH or FedWire? 3. What is the settlement transmission time frame and cut-off time for Visa and MasterCard? Discover? American Express? Will this fluctuate at any time? 4. Do you have any reporting mechanism to aide daily reconciliation? 5. Are settlements amounts listed separately or will they appear as one daily sum? What level of detail does the firm report? Submit sample report(s). 6. Will Saturday and Sunday activity be listed separately or combined with another day s activity? 7. Are settlements on gross amount and fees charged monthly? If not, how are they charged? F. Ticket Retrieval and Charge Backs 1. Do you have a designated department to manage charge backs? Describe the charge back processes. Is the management of transaction records handled totally online? Is it a secure portal? 2. What reports are available to monitor and manage the charge back (dispute resolution) process? 3. Do you support document imaging on a retrieval request? 4. What is the average elapsed time on charge back processing? 5. Are credit card charge backs and debit adjustments netted from the daily proceeds or are they debited separately? Are funds debited from the operating account or a separate escrow account? 16

17 6. How can charge back information be best reconciled? 7. Is there a separate charge to the City for processing charge backs? If so, please describe? 8. Do you provide the capability to archive and retrieve transaction information, including signatures for bankcard transactions and non-bank card transactions? What information is stored and for what period of time? Can the City retrieve this information online? G. Debit Card Processing 1. The City currently accepts debit cards. For the future, do you recommend pin or pinless processing or both? 2. Describe what additional City equipment would be required to accept debit transactions. 3. Differentiate between PIN and PINLESS transaction handling. Which regional or national EFT networks do you support? H. Technical System Capabilities 1. What are the recommended workstation requirements (including operating system, hardware and software including browsers and security) to be used by City staff that are adequate for online inquiry and operational activities? 2. Describe hardware options for capturing transaction information and printing customers receipts. 3. Can you provide an online portal for processing transactions at merchant Point of Sale (POS) or through the City s website? Detail any set up fees or monthly fees, if any, for setting up an online portal. 4. Describe the processing platforms you offer to support the City. 5. Do you have alternative or backup processing centers and redundancy in place? 6. Are all transactions verified based on real-time data? 7. Outline the security measures in place for the protection of data provided or received for processing within and above established minimum standards. 8. Are all the major fraud control verifications available (list and describe them)? 9. Is signature image capture available for debit and credit cards? I. Information Reporting 1. List the reports available and the process used to receive and view reports. 2. Describe the reporting by merchant and citywide. 3. Does the system provide for drill-down and roll-up reporting? Describe the available search query options. 4. What report frequency and real-time access is provided for reporting? 5. Do reports include both transaction and payment information? 6. How long are reports maintained online or archived for access? 7. Can your system provide single merchant reporting as well as various associations? 8. Is historical information regarding sales, refunds, and charge backs maintained in a database for access by the merchant? What is the retention period? 9. How are multiple merchants reported? 10. Provide sample(s) of reports that will be available to the City. 17

18 J. Implementation 1. Outline the schedule for implementation to include all merchant accounts and any necessary equipment changes. 2. Describe the merchant training process and any ongoing training that is available/planned (e.g, courses, frequency, location, and cost) for staff. 3. After initial implementation, how are new merchant accounts established? How long is the normal implementation process for such merchants? 4. List any resources, City assistance, or other items expected to be provided by the City. K. Customer Service 1. Vendor must provide access to phone, internet and technical support service Monday through Friday, excluding bank holidays, 8:00 AM. through 5:00 PM. (PST). Will you be able to comply with this requirement? Provide details of the customer service options available. 2. Describe the dispute process for both cardholders and merchants. 3. Do you periodically provide cost-of-acceptance analysis for clients to ensure the best application and advantage? 4. Do you offer any newsletter covering industry issues, rules, and regulations? How often? Provide the latest copy. 5. Describe the promotional support you provide (e.g., signs, supplies, funds for specific purposes, advertising allowance). Is there any cost for this basic support? L. Security 1. How is PCI compliance requirements monitored and incorporated into your process? 2. How do you qualify new merchants for PCI? Does the firm monitor PCI compliance of its merchants? 3. Does the firm qualify and monitor PCI compliance of third party processors/gateways? 4. How will you communicate PCI issues to the City? 5. What training will you make available to the City? 6. Describe the security measures used to prevent unauthorized user access to either the system or the data. 7. Where does liability fall in the process of recouping loss due to fraud? M. Disaster Recovery 1. Is there a continuity plan in place for processing systems and platforms in a disaster situation? 2. What is the expected time frame to resume operations in a catastrophic event scenario at a merchant site? What support is available? 3. When was your backup system last used? Under what circumstances? How long was the backup in operation? 4. What City records will be archived? Will the City be required to maintain backup documents? What kind and for how long? 5. Over the past year, what was the longest period that you were unable to authorize transactions? N. Mobile Transactions 18

19 1. Describe mobile services you provide and their functionality. V. EVALUATION A. EVALUATION POINT SUMMARY The following is a summary of Section IV criteria identifying points assigned to each item. These weighed factors will be used in the evaluation of the proposals. Only finalist proposers will receive points for an oral presentation and demonstration. CRITERIA Financial Stability of Vendor PCI-DSS Compliant MAXIMUM POINTS Pass/Fail Pass/Fail Online Reporting 5 Vendor s Ability to Meet Operating Requirements 30 Experience and Qualifications 20 Conceptual Plan 5 Submission 5 Implementation and Conversion Plan 15 Cost/Fees 20 TOTAL POINTS 100 B. EVALUATION FACTORS A maximum of 100 points may be awarded based upon the quality and thoroughness of the proposer s response to each evaluation factor noted above. Detail on each factor is provided below: Pass/Fail - Financial Stability of Vendor: Vendor must demonstrate adequate history of financial stability. Pass/Fail - PCI-DSS Compliant: Proposal must include proof of compliance. 5% - Online Reporting: Assign points for the ability to produce functional and productive reports. 30% - Vendor s Ability to Meet Operating Requirements: Assign points based on the vendor s ability to meet the operating requirements, such as installation of new merchants, processing transactions, provide new equipment when needed, and troubleshoot problems. 20% - Experience and Qualifications: Assign points that may be awarded for relevant experience, qualifications, and availability of key persons to be assigned to the contract resulting from the RFP. 19

20 10% - Conceptual Plan: Assign points on the vendor s ability to assist the City in upgrading and improving its credit/debit card acceptance operations as new technology and security standards are developed. 5% Submission: Assign points on the quality and completeness relative to the description given in the RFP. 15% Implementation and Conversion Plan: Assign points on the understanding and approach of the requirements, strategy, project schedule, and ease of implementation. 20% - Cost/Fees: Ability of vendor to produce the most competitive pricing and discount fee C. EVALUATION PROCESS: 1. All proposals will be reviewed for compliance with the mandatory (minimum) requirements as stated within the RFP. Proposals deemed non-responsive will be eliminated from further consideration. 2. The City may contact the proposer for clarification of their response. 3. The City may use other sources of information to perform the evaluation. 4. Responsive proposals will be evaluated on the factors in Section V that have been assigned a point value. The responsible proposers with the highest scores may be selected as finalist based upon their initial proposals or the City may proceed with the proposer receiving the best score. Finalists who are asked or who choose to submit revised proposals for the purpose of obtaining best and final offers will have their points recalculated accordingly. Points awarded from oral presentations and product demonstrations will be added to the previously assigned points to attain final scores. The responsible proposer whose proposals is most advantageous to the City, taking into consideration the evaluation factors in Section V, will be recommended for contract award to the City Council. Please note, however, that a serious deficiency in the response to any one factor may be grounds for rejection regardless of overall score. D. CONSULTANT SELECTION PROCESS The proposals will be evaluated by a review group selected for this project. Each member will assess and rate each proposal based on the information submitted. A short list of firms may be selected and interviewed. The review group will score the firms and the highest ranking firm will be notified to begin contract negotiations and enter into an agreement. If an agreement cannot be reached, the City will begin negotiations with the second highest ranking firm. The City of Santa Monica has the sole authority to select the consulting firm and reserves the right to reject any and all proposals. The City reserves the right to approve all subconsultants and or engineers proposed to be retained by the prime consultant. Upon signing of the agreement, no change in proposed personnel or sub-consultants can be made without the City s review and written authorization. By submitting a response to this RFP, prospective consultants waive the right to protest after award or seek any legal remedies whatsoever regarding any aspect of this RFP. The City reserves the right to select any number of finalists. In addition, the City reserves the right to issue written notice to all participating firms of any changes in the proposal submission schedule, should the City determine in its sole and absolute discretion that such changes are necessary. The City reserves the right to request additional information from any 20

21 proposing firm and to reject any and all proposals. All original work products, including computer files, shall remain the property of the City. The City reserves the right to retain an expert to evaluate the consultant s work or qualifications at all stages in the selection process. Additionally, any contract entered into will be subject to termination at any stage if in the judgment of the City, such termination is in the best interest of the City. In the event such decision is made, appropriate written notice would be given before any termination and the consultant would be compensated on a pro-rata basis for work performed. 21

22 City of Santa Monica Non-Discrimination Policy A. Discrimination. Discrimination in the provision of services may include, but not be limited to the following: (a) Denying any person any service, or benefit or the availability of a facility. (b) Providing any service, or benefit to any person which is not equivalent, or in a non-equivalent manner or at a non-equivalent time, from that provided to others. (c) Subjecting any persons to segregation or separate treatment in any manner related to the receipt of any service. (d) Restricting any person in any way in the enjoyment of any advantage or privilege enjoyed by others receiving any service or benefit. (e) Treating any person differently from others in determining admission, enrollment, quota, eligibility, membership, or any other requirement or condition which persons must meet in order to be provided any service or benefit. (1) Consultant shall take affirmative action to ensure that intended beneficiaries of this Agreement are provided services without regard to race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability. (2) Consultant shall further establish and maintain written procedures under which any person applying for or receiving services hereunder, may seek resolution from Consultant of a complaint with respect to any alleged discrimination in the provision of services by Consultant's personnel. At any time any person applies for services under this Agreement, he or she shall be advised by Consultant of these procedures. A copy of these procedures shall be posted by Consultant in a conspicuous place, available and open to the public, in each of Consultant's facilities where services are provided hereunder. B. Non-discrimination in Employment (1) Consultant certifies and agrees that it will not discriminate against any employee or applicant for employment because of race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability in accordance with the requirements of City, State or Federal law. Consultant shall take affirmative action to ensure that qualified applicants are employed, and that employees are treated during employment, without regard to race, color, religion, national origin, ancestry, sex, age, sexual orientation, marital status, AIDS or disability, in accordance with the requirements of City, State and Federal law. Such shall include, but not be limited to, the following: (a) Employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation. (b) Selection for training, including apprenticeship. 22