July 5, 2016 FAILURE TO RETURN THIS BID ADDENDUM IN ACCORDANCE WITH INSTRUCTIONS MAY SUBJECT YOUR BID TO REJECTION ON THE AFFECTED ITEM(S):

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1 STATE OF NORTH CAROLINA DEPARTMENT OF ADMINISTRATION OFFICE OF FISCAL MANAGEMENT IMPORTANT BID ADDENDUM July 5, 2016 FAILURE TO RETURN THIS BID ADDENDUM IN ACCORDANCE WITH INSTRUCTIONS MAY SUBJECT YOUR BID TO REJECTION ON THE AFFECTED ITEM(S): BID NUMBER: #13-MS TITLE: Business Development Supportive Services COMMODITY: DBE and HUB Consulting Including Technical Assistance PURCHASER: Meredith Swartz ADDENDUM NUMBER: 02 USING AGENCY: Office of Historically Underutilized Businesses OPENING DATE/TIME: July 15, 2:00PM ET INSTRUCTIONS: 1. Please make the following change(s) in the bid referenced above: A. REVISION OF SECTION 4.1 CONTRACT TERM B. REVISION OF SECTION 5.3 ITEM A. SITE VISITS C. QUESTIONS AND S 2. Check ONLY one of the following categories and return one properly executed copy of this addendum prior to bid opening time and date. Bid has already been submitted. Changes resulting from this addendum are as follows: Bid has already been submitted. NO CHANGES resulted from this addendum. Bid has NOT been submitted and ANY CHANGES resulting from this addendum are included in our bid. Execute Addendum: BIDDER: ADDRESS (CITY & STATE): AUTHORIZED SIGNATURE: DATE: NAME and TITLE (Print): DELIVERED BY US POSTAL SERVICE RFP NO. 13 MS Attn: Meredith Swartz NC Department of Administration Office of Fiscal Management (Purchasing Section) 1306 Mail Service Center Raleigh, NC DELIVERED BY ANY OTHER MEANS (Preferred) RFP NO. 13 MS Attn: Meredith Swartz NC Department of Administration Office of Fiscal Management (Purchasing Section) 116 West Jones Street, Room 2054 Raleigh, NC

2 BID NUMBER: 13-MS PAGE 2 A. REVISION OF SECTION 4.1 CONTRACT TERM The Contract shall have an initial term of one (1) year, beginning on the date of contract award (the Effective Date ). The Vendor shall begin work under the Contract within ten (10) business days of the Effective Date. At the end of the Contract s current term, the State shall have the option, in its sole discretion, to renew the Contract on the same terms and conditions for up to a total of two additional six-month terms. The State will give the Vendor written notice of its intent whether to exercise each option no later than thirty days before the end of the Contract s then-current term. In addition, the State reserves the right to extend a contract term for a period of up to 180 days in 90-day-or-less increments B. REVISION OF SECTION 5.3 ITEM A. SITE VISITS Conduct a minimum of three (3) site visits with each firm to assess and evaluate operations, capital needs, equipment needs, labor force demands, develop business plan and growth plan, and provide technical support. Should read: Conduct a minimum of three (3) site visits with each firm to assess and evaluate operations, capital needs, equipment needs, labor force demands, develop business plan and growth plan, and provide technical support. If a participating firm is determined to be ready, willing, able to bid on a minimum of three (3) projects monthly, Contract Manager will coordinate with vendor to determine an appropriate action plan. C. QUESTIONS AND S QUESTION NO. REFERENCE QUESTION QUESTION 1. RFP sec 4.1 Please confirm the contract time period is only for 6 months? Page #11 Please refer to Section A. of this Addendum No. 2. Initial term of this contract will be one (1) year with 2 optional additional six-month terms QUESTION 2. RFP sec 4.3 Page 11 Can weekly invoices be submitted under an approved circumstance, and if so what are the approved situations? Payment, consistent with Attachment C Pricing Proposal (Page 26 of 29), indicates each vendor payment (invoice) will be issued using the Unit price (Per Firm) rates after completion of all deliverables and required tasks are provided for each firm outlined in this Scope of Work. Vendor payments will be processed upon completion of all deliverables and required tasks. Vendor invoices should include only completed deliverables and tasks as described in Sections 5.3 and 6.3 (Appendix A). QUESTION 3. RFP sec 5.1 Page 14 The 200 firms that are selected by the HUB office are these firms certified HUB firms currently? All selected firms may not possess certification as a Historically Underutilized Business (HUB). The 200 firms selected as candidates for participation may include firms certified as Disadvantaged Business Enterprise businesses by the North Carolina Dept. of Transportation, Small Business Enterprises (SBE), Small Professional Service Firms, Historically Underutilized Business (HUB). QUESTION 4. RFP sec 5.1 What criteria will be used to select the 200 firms? Page 14 RESPONSE: The North Carolina Dept. of Administration, Office of Historically Underutilized Businesses will select target firms. Criteria included in the selection of firms may encompass the following: a) Firms performing high demand trades as defined within the vertical and horizontal industry; b) Firms performing trades found to have an underrepresentation of minority or women businesses; Responses to Bid Number 13-MS Business Development and Supportive Services RFP Page 2 c) Firms requesting assistance with business growth, business plans, financial management assistance, target training, etc.;

3 BID NUMBER: 13-MS PAGE 3 d) Firms performing trades projected to have high demands [ based on market forecast] within the upcoming two to four years; e) Firms committing to participate in a two-year business development program; f) Non-construction trades seeking assistance with business development; g) Non-prequalified firms seeking assistance in meeting prequalification requirements; and, h) Small businesses seeking business development assistance. QUESTION 5. RFP sec 5.2 Page 14 What is the current % of certified minority, women small disadvantage business (based in the state of NC) what is the baseline from which improvement will be gaged? The population referenced in Section 5.2 includes businesses certified by the State of North Carolina as Historically Underutilized Businesses (Minority and Woman Business owned), Disadvantaged Business Enterprises (Minority and Woman Business owned), Small Business Enterprise and Small Professional Service Firm(s). a. The North Carolina Department of Transportation reports 1,392 firms certified under the Small Business Enterprise Program with a North Carolina address. b. Total Certified HUB firms in North Carolina: 3,128 as of June 29, 2016 (2,002 of the 3,128 certified HUB firms indicate their respective firms are small businesses. Minority-owned HUB firms based in North Carolina: 1,622 Woman-owned HUB firms based in NC: 1,460 Disabled-owned HUB firms based in NC: 43 Socially and Economically Disadvantaged owned HUB firms based in NC: 3 Percent of registered vendors in IPS that identify as small businesses: 70% Percent of certified HUB vendors that identify as small businesses: 64% Percent of registered vendors in IPS that are certified HUBs: 18% Percent of businesses identifying themselves as small that are HUB firms: 16% Firms certified as Disadvantaged Business Enterprises with the NCDOT reporting NC addresses: 1,029 Firms certified as Disadvantaged Minority Business Enterprises with the NCDOT reporting NC addresses: 682 = 66% Firms certified as Disadvantaged Woman-Owned Business Enterprises with the NCDOT reporting NC addresses: 344 = 33% Firms certified as Small Business Enterprises with the NCDOT: 1,357 *Criteria utilized in the definition of Small Business Enterprises and or Small Businesses are not uniform. The US Small Business Administration, North Carolina Department of Transportation and the City of Charlotte include different definitions to certify firms as small businesses. The vendor will conduct an assessment of the firm. The vendor will analyze pre-assessment data findings and design a plan to support growth and development of each firm. Pre-assessment data will be utilized in the development of a business plan and a growth plan. Benchmark objectives will be established for each firm [inclusive of timelines for completion]. Vendor will describe specific action tasks to accomplish each objective, answering what will be done, how the objective will be achieved and who will support the firm toward achievement of each defined objective (See Section 5.3 Tasks, Page 14 of

4 BID NUMBER: 13-MS PAGE 4 29, and, Appendix A -Details of Monthly Progress Report, Page 18 of 29). The vendor will conduct a post-assessment of firm s growth and development using pre-assessment findings and benchmark objectives. QUESTION 6. RFP sec 5.2 Pre and Post assessments is this a duty of the state or the vendor to measure Item B Page outcomes? 14 QUESTION 7. RFP sec 5.3 Item C Page 14 QUESTION 8. RFP Sec 5.3 Item A Page 15 QUESTION 9. RFP sec 5.3 Item B QUESTION 10. RFP sec 5.3 Item B QUESTION 11. RFP sec 5.3 QUESTION 12. RFP sec 5.3 The state will evaluate deliverables for each participating firm as articulated in items A through G, Section 5.3 and Appendix A, Monthly Progress Reports. What is considered a good faith effort as it relates to getting a contractor certified, if they do not have the financial standings to gain certification? Item C, Section 5.2 on page 14 includes the following: assisting each firm to secure prequalification approval from the North Carolina Dept. of Transportation, public owners and contractors. Participating firms will hold certifications with the North Carolina Dept. of Transportation and/or the Office of Historically Underutilized Businesses. The vendor may determine financial viability is a contributing barrier to the success of the firm as pre-assessment analysis and examinations are conducted on the firm. The vendor will likely include such findings in the development and implementation of growth plan and business plan objectives. The Growth Plan developed by the vendor and the firm may address proposed action steps to promote increase financial sustainability, as such, realized deliverables/outcomes may include prequalification of the firm. If first visit provides near term status vendors operations and no changes are noted by client will there be a need for further site visits? Participating firm status and required follow-up will be assessed by the HUB Contract Manager. A comprehensive business plan consists of several elements is the intent of the RFP to only require elements 1 and 2 called out in this RFP? The intent of the RFP is to support each participating firm in the development of a comprehensive Business Plan. A comprehensive Business Plan should not be limited to the two items outlined in item B of Section 5.3; however, the scopes of work contained in Section 5.3 (items A through G) and Appendix A provide critical components essential to the development of a comprehensive Business Plan. 200 business plans in 6 months will be a larger under taking and will be highly dependent on the firm s ability to provided financial data and market aspirations etc. If a firm is not financially sounds having a high debt ratio or owner credit score below 700 that would not warrant a loan. Should a business plan be developed in this situation? The RFP requires development of a Business Plan and Growth Plan for each firm. Vendors will integrate assessment findings into action items. The Business Plan and Growth Plan should present a detailed road map to support the growth and sustainability of the firm. Reference Section A of this Addendum No. 2 Can specific DOT Training be accessed from the state? Are there modules than can be accessed to support the clients? The project owner does not exercise responsibility for identification of available training resources. The vendor is required to conduct a thorough assessment of the firm s knowledge, abilities, experience, business acumen, literacy level, etc. and develop appropriate responses, i.e. customized training, technical assistance to address target needs. Based on the pre assessment will participating firms be grouped into training sections. Prior to the start of the RFP if state conducts the Pre assessments? The pre-assessment will be implemented by the vendor as articulated in

5 BID NUMBER: 13-MS PAGE 5 Item A, Section 5.3, Page 14. Moreover, the 31-point action items outlined in Appendix A Detail of Monthly Progress Report, provide a framework for assessing firms and formulating appropriate training and technical support. These referenced deliverables [for each firm] should present a few foundational elements of your pre-assessments. The vendor will design the process or methodology proposed to support developmental objectives and performance outcomes. Please review Sections 5.4 and 5.5 () to secure further insight into vendor s responsibilities. QUESTION 13. RFP sec 5.3 QUESTION 14. RFP sec 5.3 QUESTION 15. RFP sec 5.3 Since the amount and scope of training cannot be defined at this point, can additional funds be acquired for project to facilitate the defined training scopes that are currently undefined? The number of classes, volume of participants in each class is currently unknown. Vendor might evaluate the extent to which a one size fits all training model will compliment desired outcome performance. Notably, the owner and the vendor will participate in a minimum of twelve meetings during which time the vendor will share findings, present recommendations and describe barriers (See Section 6.2). Vendor s Monthly Progress Reports (See Appendix A) will accord the opportunity for Vendor to discuss findings and offer recommendations related to diverse aspects of the scopes of work. Additionally, requisites outlined in the evaluation of the Technical Approach highlight previous experience and performance of similar services. Historical experience may provide some insight into projected costs. Can the training be de- scoped for this phase or more defined for this phase of the RFP? All items articulated in Section 5.3 must be included in the Vendor s proposal. Please review the introductory statement found in Section 5.3 Tasks on page 14: The awarded Vendor must complete each of these tasks for each firm identified by the Contracting Agency. Review Section 2.8, page 7 of 29, to evaluate requisites for Alternate Proposals. Will pre assessments be done prior to start of contract? and if so can results be shared, if vendor has to provide training based on pre assessment results. Conduct a minimum of three (3) site visits with each firm to assess and evaluate operations, capital needs, equipment needs, labor force demands, develop a business plan and growth plan, and provide technical support. Additionally, Appendix A (Monthly Progress Report) includes some elements found in the pre-assessment process. Items articulated in the Monthly Progress Report do not represent an exhaustive list of pre-assessment elements. The Vendor will conduct preassessment evaluations. QUESTION 16. RFP sec 5.3 Item E QUESTION 17. RFP sec 5.3 QUESTION 18. RFP sec Monthly progress report Should this section read -After firm becomes qualified to bid then support them submitting 3 bids per month? The firm has to determine that they want to execute on the project scope of work before bids are submitted. Firms selected to participate will likely seek opportunities to secure contracts. Target firms will have committed to participate in requisite training and support. Are there standard DOT vendor trainings that are offered online currently by the state of NC? The Vendor may explore current trainings available in the marketplace, however, Vendor is required to address item 7 in Section 5.5 of the Technical Approach. Consideration of items III (C) and (D) found in Appendix A/Progress Reports must be addressed as Vendor contemplates methodology proposed and ability to demonstrate performance outcomes and requisite deliverables. A 3 year business plan for 200 firms may not be a realistic objective. A more suitable goal would be to walk the clients through the key elements of the

6 BID NUMBER: 13-MS PAGE 6 Page 18 business plan and support as needed with coaching and let the companies Item II complete the business plan on their own time frame? This will vet out companies that are not truly committed and ready to receive contracts and make for a better outcome for the State of North Carolina. Is this an acceptable amendment to the RFP? No, Reference revisions in Sections A & B of this Addendum No. 2 and QUESTION 19. RFP sec 5.3 QUESTION 20. RFP sec 5.3 Item B the response to Question #5. Will the vendor have access to state training facilities in each of the stated DOT regions? The Vendor will have the responsibility to identify and secure accessible and safe training facilities. Will have all names and current data on the 200 selected firms be provided to the vendor at the start of the contract? If all are not provided to vendor at the same time how will 6 month time frame be altered? Section 5.5, item 9 of the Technical Approach include the following: QUESTION 21. RFP Section 2.3- RFP Schedule, Pg. 5 QUESTION 22. QUESTION 23. QUESTION 24. QUESTION 25. QUESTION 26. Section 3.1 Method of Award, p Description of all data expected to be provided by the Contracting Agency. Upon award the Vendor and the Contracting Agency will finalize any changes to the Vendor s technical approach to the project. the proposed time table for submission is not sufficient time to permit a thorough, qualitative response. Therefore, we respectfully request that the submission date be extended. Please reference Addendum No. 1 -Updated RFP Schedule posted June 29, 2016: Event Responsibility Date and Time Issue RFP State June 22, 2016 Deadline Submit Written Vendor June 27, 12:00PM ET Questions Provide Response to Questions State July 1, 2016 Submit Proposals Vendor July 15, 2:00PM ET Tentative Contract Award State September 1, 2016 Contract Effective Date State Upon Award Will expenses such as travel, lodging and mileage be included in our Cost Proposal? Projected expenses associated with travel, lodging and mileage will not be included in the Cost Proposal. What level of Business Plan Development for the client from the vendor? Is the winner of the bid expected to develop full business plan so that a firm can receive funding if provided to a bank or is the business plan more of a Strategic Plan? The Business Plan should be comprehensive. The Growth Plan will likely include well-defined strategies. Review Item A in Section 5.3 and Appendix A (Monthly Progress Report). What is the current state of the 200 businesses who will receive these services? Are the majority profitable or losing money? The majority of firms are not currently profitable. Vendors will conduct pre-assessments of each business to evaluate the current status of business operations. Please review Section 5.3 and Appendix A. Will Community College facilities be made available for the winner of the bid to hold workshops and seminars for the 200 selected businesses? Vendors must communicate and confirm with any 3 rd party resources The RFP states that the State reserves the right to make separate awards to different Vendors for one or more line items. Can vendors submit proposals limited to select line items (i.e. training) or must they submit proposals for all line items to be considered? Please review Section 5.3. The introductory statement includes the following: 5.3 TASKS The awarded Vendor must complete each of these tasks for each firm identified by the Contracting Agency.

7 BID NUMBER: 13-MS PAGE 7 QUESTION 27. Section 3.4 Evaluation Criteria, p.10 Please review Section 2.8 addressing Alternate Proposals. The RFP states that the proposal with the lowest cost will receive a score of 10 points. Should the lowest cost proposal receive the full total of 40 points instead of 10? Yes Revised Section 3.4 pg 10: Cost Evaluation Criteria: Maximum 40 total points The State will determine low cost by normalizing the scores as follows: The proposal with the lowest cost will receive a score of 40 points. All other competing proposals will be assigned a portion of the maximum score using the formula: QUESTION 28. Section 4.2 Pricing, p. 11 QUESTION 29. Section 4.5 Financial Stability, p points x the cost of the lowest cost proposal the cost of the cost proposal being evaluated The RFP states that Unit price (Per Firm) rates will be paid after completion of all deliverables and required tasks are provided for each firm. Can you please clarify if progress payments are allowed (based on interim deliverables outlined in vendor s project plan) or if all deliverables for a firm must be complete in order for vendor to receive payment for their work with the firm? All deliverables must be completed in order for a vendor to receive payment for their work with the firm. The RFP states that Each Vendor shall certify it is financially stable. If Vendor subcontracts with another firm, does the subcontractor need to provide this certification or the prime vendor only? Please review Section 4.10 entitled Vendor Representation, and Item 21 found under Attachment A/Instructions to Vendors: QUESTION 30. Section 4.8 Background Checks, p. 13 QUESTION 31. Section 5.1 General, p SUBCONTRACTING: Unless expressly prohibited, a Vendor may propose to subcontract portions of the work to identified subcontractor(s), provided that its proposal clearly describe what work it plans to subcontract and that Vendor includes in its proposal all information regarding employees, business experience, and other information for each proposed subcontractor that is required to be provided for Vendor itself. The RFP states that background checks may be required for any personnel or agent of the Vendor. Will the State or the Vendor bear the cost of the background check? Under what conditions will these checks be made and when will this requirement be decided? We would like to know if this additional cost needs to be added to our cost proposal. All costs associated background checks will be absorbed by the Vendor. The owner reserves the right to implement background checks at the owner s discretion. A determination related to performance of background checks will be made at the discretion of the owner. Are the firms selected by the Office of Historically Underutilized Businesses required (or incentivized in some way) to participate in this new Business Development, Training and Technical Support program? What contract obligation exists for the Vendor when a firm selected by the HUB office refuses to meet with the Vendor or participate in the program? If a replacement firm is provided, what is the turnaround time for the replacement process so that the Vendor can still meet the Contract requirement within 6 months? Firms selected by the owner will make a commitment to participate in all aspects of the project model. The Vendor will provide updated Progress

8 BID NUMBER: 13-MS PAGE 8 Reports outlining barriers and challenges. The Owner will work with the Vendor to responsively and expeditiously address identified barriers and challenges. Please review Section A. of this Addendum No. 2 addressing Contract Time Extension. QUESTION 32. QUESTION 33. Section 5.2.B Objectives and Goals, p. 14 Section 5.3 Tasks, p. 15 The RFP states that Pre-assessments and post-assessment evaluations will be implemented to measure performance outcomes. Is the Vendor responsible for creating and administering the pre-assessment and post-assessment instruments or is this activity being handled by the State? If the State is responsible for these two activities, what timeframe is planned to complete the pre-assessments? Will this work overlap with the assessment work and other activities of the Vendor? The Vendor is responsible for development of pre-assessment and post assessment tools/instruments. The Vendor shall integrate all relevant elements described in the Technical Approach, Tasks and Monthly Progress Reports in the design of pre/post assessments. Can any of the site visits, training, counseling, business planning or coaching be conducted virtually (i.e. phone, video conferencing, webinars, etc.) QUESTION 34. QUESTION 35. QUESTION 36. Section 5.3.B Tasks, p. 15 Section 5.3.C Tasks, p. 15 Section 5.3.D Tasks, p. 15 The owner has evaluated the value of remote approaches to service deliverables and determined that target firms may realize greater benefit through face-to-face service delivery. The owner could possibly provide remote service delivery absent solicitation of support from contract vendors, however, interviews with service recipients, previous service providers and industry representatives suggest direct, face-to-face support is most beneficial for the target demographic. Monthly Progress Reports, in conjunction with Owner/Vendor meetings, should provide opportunities to discuss both process outcomes and product outcomes/deliverables. Please review; Item III (F) under Progress Reports, Section 6.4, entitled Continuous Improvement; Section 6.5, entitled Contract Changes; and, Section 6.2, entitled Post Award Management Review Meetings. How will data collected on a firm s weaknesses in the areas of financial, managerial, technical and labor conditions be used? Who will have access to this information? Will the State provide any documented information/assurances on how this sensitive information will be used and who will have access? Responses to all questions will be protected and confidentiality documents will likely be included in documents requested by the Vendor. Please review Item 9 found in Section 5.5 of the RFP. The RFP states that the Vendor will be required to complete the Identification and accomplishment of predetermined outcome measures established for each firm participant. Will these predetermined outcome measures be developed by the State or by the Vendor? If developed by the State, are these outcome measures available now? If so, can they be shared? If not, what is the timeframe for the development of these outcome measures that will be used by Vendors? Predetermined outcome measures will likely be developed subsequent to implementation of pre-assessments. The Vendor may consider reviewing item A through G under Section 5.3 and articulated action items described in Appendix A/Progress Reports to guide or support development of outcome measures. The RFP mentions using pre-assessment findings and business growth development program goals and standards for all 200 targeted firms. Will the State or the Vendor be responsible for defining and conducting the preassessment and the business growth development program goals and standards? The Vendor is responsible for defining and conducting the pre-

9 BID NUMBER: 13-MS PAGE 9 assessment. The Vendor, in collaboration with the firm, is responsible for defining and conducting the Business Growth Plan goals and standards. The Vendor shall integrate descriptive performance action items as articulated in Section 5.3/Tasks, Appendix A/Monthly Progress Reports in the design, definition, development and implementation of the preassessment, Business Plan and Growth Plan for each firm. The Vendor must include relevant and applicable information in the Technical Approach (Section 5.5) of the proposal document where applicable. QUESTION 37. Section 5.3.E Tasks, p. 15 QUESTION 38. Section 5.6 Presentations, p. 16 If the targeted firm determines that they want to submit fewer than 3 bids per month or only wants to submit bids for one sector (i.e. private) versus another based on their business model and/or capacity, will the Vendor be penalized for not meeting this outcome measure? Review Items B (1) under Section 5.3/Tasks; and, Item F. Review Item II (D) found in Appendix A/Monthly Progress Reports. Vendor will likely evaluate the extent to which firm can access opportunities to secure prequalifications and demonstrate marketplace success [to the extent to that experience is not demonstrated]. Firms may not be able to obtain experience if firms do not secure contract awards. Contract awards may not be secured if firms fail to pursue bid opportunities. The RFP states that a demonstration will be performed at user s facility by Vendor if the State decides to require a presentation by the Vendor. Is the user in this instance the State? If presentations are required the State will contact the Vendor and set presentation date, time, and location at a State Facility in Raleigh, NC. Yes, the user is defined as the State. The Office of Historically Underutilized Businesses is a State agency and represents the state as the project owner. QUESTION 39. Section 5.7 Acceptance of Work, p. 16 The RFP states that in the event acceptance criteria for any work or deliverables is not described in contract documents or work orders., the State shall have the obligation to notify Vendor, in writing ten (10) calendar days following completion of such work or deliverable that it is not acceptable. Is it possible to receive assurances that documented acceptance criteria will be available to Vendor in advance of the work being done so that the Vendor does not suffer any undue burden/risk of performing work without a clear understanding of the State s expectations (i.e. acceptance criteria)? QUESTION 40. Section 5.10 Transition Assistance, p. 16 Please review Appendix A/Monthly Progress Reports, Item III (E): E. Description of work scope proposed for upcoming month including timelines for performance and completion. Vendor shall include a description of proposed work with the submission of Monthly Progress Reports. The Owner shall provide guidance regarding acceptable items aligned with contract deliverables, Technical Approach and Tasks. Additionally, please review Item 6 in Section 5.5 of the Technical Approach. If the State is conducting the post-assessments for firms, will Vendors be asked to participate in this process after the six month period? If so, is this postassessment activity included in the three month transition assistance? QUESTION 41. Section 6.2 Post Award Management Review Meetings, p. 16 The Vendor must perform post-assessment work items as a part of the deliverables. Post-assessment action items shall be aligned with preassessment findings and Growth Plan/Business Plan deliverables. Please review Section 6.3 entitled Progress Reports. The RFP states that the Vendor, at the request of the State, shall participate in up to twelve meetings with the State for Project Review meetings. If the Vendor is required to participate in approximately two meetings per month, will the location of the meetings be in Raleigh, NC? Will any be by phone (or online) instead of face-to-face?

10 BID NUMBER: 13-MS PAGE 10 The meetings will be conducted at least monthly and the State will exercise discretion in selection of the option to conduct meetings through alternative communication mediums. QUESTION 42. The RFP states that the State encourages the Vendor to identify opportunities Section 6.4 to reduce the total cost, consisting of various ideas to enhance business Continuous efficiencies Will the use of phone calls and online technologies (when Improvement, p. possible) be permitted for some (if not all) vendor meetings, trainings, coaching, 17 counseling, business planning, etc.? QUESTION 43. Section 4.2 Pricing Page 11 The owner has evaluated the value of remote approaches to service deliverables and determined that target firms may realize greater benefit through face-to-face service delivery. The owner could possibly provide remote service delivery absent solicitation of support from contract vendors, however, interviews with service recipients, previous service providers and industry representatives suggest direct, face-to-face support is most beneficial for the target demographic. Monthly Progress Reports, in conjunction with Owner/Vendor meetings, should provide opportunities to discuss both process outcomes and product outcomes/deliverables. Please review; Item III (F) under Progress Reports, Section 6.4, entitled Continuous Improvement; Section 6.5, entitled Contract Changes; and, Section 6.2, entitled Post Award Management Review Meetings. Pricing states Unit Price (per firm) rates will be paid after completion of all deliverables and required tasks are provided for each firm outlined in this Scope of Work. All 200 firms must be completed within 6 month contract term. Section 4.4 Payment Terms b.) The vendor will be paid net thirty (30) calendar days after the Vendor's invoice is approved by the State.1. Section 5.3 Tasks Explanation on 3 assessments required for each firm: Will there be one uniformed NC HUB approved assessment" provided for vendor distribution to firms or will the vendor(s) be responsible for creating and providing this assessment to firms? The Vendor is responsible for defining and conducting the preassessment. The Vendor, in collaboration with the firm, is responsible for defining and conducting the Business Growth Plan goals and standards. The Vendor shall integrate descriptive performance action items as articulated in Section 5.3/Tasks, Appendix A/Monthly Progress Reports in the design, definition, development and implementation of the preassessment, Business Plan and Growth Plan for each firm. The Vendor must include relevant and applicable information in the Technical Approach (Section 5.5) of the proposal document where applicable. The referenced RFP does not include three assessments. Vendors shall not distribute assessment tools to firms for completion by firm. Vendors shall administer assessments. See Appendix A/Monthly Progress Reports. Vendor is required to accurately address all items articulated in Items I, II and III. QUESTION 44. Section 5.1 General Page 14 QUESTION 45. Section 5.3 Tasks *Please review Section A of this Addendum No. 2 addressing Contract Performance Period. Is there a commitment from all 200 firms to participate? The project owner has identified target firms. Explanation on 3 assessments required for each firm: Will there be one uniformed "NCDOT BOWD approved assessment" provided for vendor distribution to firms or will the vendor(s) be responsible for creating and providing this assessment to firms? This RFP does not require 3 assessments. This RFP is not a NCDOT BOWD project.

11 BID NUMBER: 13-MS PAGE 11 The Vendor is responsible for defining and conducting the preassessment. The Vendor, in collaboration with the firm, is responsible for defining and conducting the Business Growth Plan goals and standards. The Vendor shall integrate descriptive performance action items as articulated in Section 5.3/Tasks, Appendix A/Monthly Progress Reports in the design, definition, development and implementation of the preassessment, Business Plan and Growth Plan for each firm. The Vendor must include relevant and applicable information in the Technical Approach (Section 5.5) of the proposal document where applicable. Vendors shall not distribute assessment tools to firms for completion by firm. Vendors shall administer assessments. See Appendix A/Monthly Progress Reports. Vendor is required to accurately address all items articulated in Items I, II and III. QUESTION 46. Section 6.2 Post Award Mgmt Review Meetings Page 16 QUESTION 47. RFP Section 2.5 Proposal Submittal, page 6 Will a meeting schedule be provided after contract award for these meetings? What would be the nature of these meetings? Are these onsite and/or conference bridge meeting A tentative meeting schedule will be coordinated with the selected Vendor. *Please review Section A. of this Addendum No. 2 addressing Contract Performance Change. The meetings will be conducted at least monthly and the State will exercise discretion in selection of the option to conduct meetings through alternative mediums. Sub section (a) suggest that vendors should submit proposals in separate sealed packages, and listed the items to submit as: 1. Technical Proposal, 2. Cost Proposal, and 3. One signed, original executed Technical Proposal and Cost Proposal [assumed to be in one package), 4. Five photocopies of originals... etc. However, in subsection (c) reference is made to 'electronic copies' - Disc One must contain the entire Technical Proposal, etc.; Disc Two must contain the entire Cost Cost Proposal... Based on the expectations of (a) and (c), should I understand that you expect the submission entirely in electronic media (Disc 1, 2, 3, etc) or a combination of electronic media and hard copies as suggested in (a). Please advise. Submit Technical proposals and Cost Proposals in separate sealed packages as follows: PACKAGE ONE: ONE Signed, Original Executed copy of TECHNICAL Proposal Five copies of original TECHNICAL Proposal Digital copy of TECHNICAL Proposal (If required for confidentiality) Digital Redacted copy of TECHNICAL Proposal PACKAGE TWO: ONE Signed, Original Executed copy of COST Proposal Five copies of original COST Proposal Digital copy of COST Proposal **ENSURE THAT EACH PACKAGE IS CLEARLY MARKED COST OR TECHNICAL WITH BID NUMBER 13-MS