TOWN OF WARREN, RI REQUEST FOR PROPOSAL FOR PAYROLL SERVICES. DUE DATE: June 30, 2010
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1 TOWN OF WARREN, RI REQUEST FOR PROPOSAL FOR PAYROLL SERVICES DUE DATE: June 30, GENERAL INFORMATION A. Definitions: The following words as used in this document shall have the meanings ascribed thereto. 1. Provider or Proposer shall mean an individual or firm submitting a proposal in response to this Request for Proposals (RFP). 2. Town shall mean the Town of Warren in the County of Bristol, Rhode Island. 3. Vendor shall mean the Provider selected by the Town of Warren to provide payroll services to the Town. B. Scope of Services: The Town is requesting proposals from banks and other financial services companies to provide payroll services in accordance with the specifications set forth herein. The Town of Warren encourages all payroll service providers to respond to this solicitation document. A Provider who does not offer every service listed in the RFP may be considered if the Town considers it in its best interest to do so. C. Contract Term: The Town is seeking a two-year service agreement with a mutual option to renew the agreement for additional one-year terms GENERAL PAYROLL OUTSOURCED SERVICES REQUESTED The Vendor shall have the ability to perform, without limitation, the following services: A. Basic payroll services for the Town of Warren, ranging from employees, depending upon the quarter and season. B. The ability to print and deliver paychecks via courier. C. The ability to interface payroll data to a financial system (e.g., Phoenix* ). D. The ability to download payroll data into a spreadsheet and/or an external database (e.g., MS Excel, MS Access). E. The ability to report all Town and federal payroll taxes. F. Complete hands on functional training to payroll system users. G. New hire reporting to the State of Rhode Island (both paper and electronic). H. The ability to provide, or interface to, an electronic timekeeping and attendance solution. I. The expertise to manage the Unemployment Compensation process. J. The option to access and process payroll through the Internet using a standard Web browser with maximum Internet security. K. The ability to provide an option for an integrated, vendor-supplied Human Resources Information System (HRIS), or the option to interface to a third party HRIS. * N.B. The Town of Warren is considering converting the Town's existing financial and human resources functions in FY201l. 1
2 2.1 Specific Payroll Functions to Be Provided A. Multiple user-defined earnings codes (pay types). B. The ability to locally print a manual check or a special payroll check. C. The ability to modify the information appearing on employee paycheck stubs. D. The ability to pay an employee at more than one rate. E. The option to set a Final Check indicator for terminated employees to prevent issuance of additional checks after termination. F. The ability to pay employees on a variety of pay schedules (currently, bi-weekly). G. The ability to calculate and pay miscellaneous deductions for third parties such as benefits and retirement. H. The functionality to easily produce standard and ad hoc payroll reports. I. The ability to supply comprehensive, up-to-date payroll user documentation, both functional and technical. J. The option to preview and change a payroll prior to final processing. K. Group Term Life and excess life calculation. L. The ability to process pre-tax and post-tax deductions. M. The ability to handle retroactive payments. N. The ability to track, for payroll purposes, leave taken under the Family & Medical Leave Act (FMLA). O. The ability to track, process, and calculate various accrual and nonaccrual leave types e.g., Holiday Time, Overtime, Sick, Vacation, compensatory and injured on duty (IOD) time. P. The ability to make mass changes to earnings and deductions amounts and rates by bargaining unit or by other user-defined criteria. Q. Direct deposit capabilities (multiple accounts). R. The ability to track and report employee garnishments and the history of garnishments. S. The ability to manage flex-spending accounts. T. The ability to manually adjust taxable earnings for W-2 processing. U. Deferred Compensation. V. The ability to process retirement deductions (ERSRI) to the State of RI, including reporting and check payments. W. Reimbursements, both taxable and non-taxable. X. System ability to accept both on-line and batch input. Y. The ability to split employee earnings between multiple cost centers. Z. The ability to track multiple anniversary dates (for leave accrual rate changes). AA. The ability to produce year-end payroll reports, including W2 s, as well as State and Federal reports. 2.2 Additional Payroll Services Criteria A. Vendor shall conduct an on-site study with Finance to identify needs, functional processes and system/hardware requirements. B. Vendor shall assist in achieving a smooth transition from the existing payroll system to the new system (i.e., a transition that would occupy a minimum amount of staff time and resources). C. Vendor shall provide the needed levels of security for data input and for processing and accessing payroll information for management and staff. 2
3 D. Vendor shall maintain stable customer support to promote ongoing vendor familiarity with the Town s unique payroll requirements. E. Vendor shall successfully complete parallel or off-line payroll run(s) prior to a Live payroll. F. Vendor shall provide information regarding its ability to manage and support the implementation process. Does Vendor provide on-site consultation prior to and during implementation? Include Vendor s expectation of the Finance Department s participation in the implementation process. 2.3 Experience A. For the purposes of this RFP, Vendor shall mean the entity actually providing service to the Town of Warren. Proposers who are affiliated with or are offices of a larger company may proffer only their office s experience and not that of the larger company. B. The Vendor selected will have experience providing payroll services to small and medium public agencies (with employee populations ranging from 50 to 150) using comparable calculations including all Federal and State taxes and reporting requirements. The Vendor must have access to legal tax counsel or otherwise be able to demonstrate ongoing compliance with all State and Federal laws and regulations. 2.4 Quality and Accountability The Vendor will be responsible for accuracy of reporting, for making timely payments to thirdparty vendors and to government agencies, and for any penalties and interest incurred for omissions, errors, and delays. 2.5 Flexibility The Vendor must be able to make changes as needed to respond to changed laws and regulations, benefit programs, and payroll deductions. 3.0 INSTRUCTIONS FOR RESPONSE All proposals should provide straightforward, concise information that will satisfy the requirements of the solicitation document. Proposer shall provide an original and EIGHT copies of the proposal signed by an authorized representative of the company, including name, title, address, and telephone number of a person who is the responder s representative. Proposals must be received prior to 10 a.m. Wednesday, June 30, 2010 and include all required attachments. Oral responses will not be accepted. The response shall include complete information about the Proposer and its ability to perform the requested services, including, without limitation: A. Number of years in business. B. Brief history of the firm, including ownership structure and key principals. C. List of comparable municipal agencies or other public agencies that have been clients. D. List of three to five references that the Town may contact. List company names, addresses, telephone numbers, and contact persons. 3
4 E. Attach samples of related payroll reports, paycheck stubs, and any other documents appropriate to the success of this project. F. A copy of the Provider s most recent audited financial statements and SAS70 is required. G. A proposed Payroll Processing Services agreement which shall be subject to modification by the Town. 3.1 Cost (Fee) Proposal and Additional Instructions A. Submit a detailed cost proposal showing total cost for each service listed in sections 2.0 and 2.1 B. Include comments on Proposer s ability to provide the services in section 2.2. C. Provide comments on sections 2.3 through 2.5. D. Include price structure and hourly rate(s) for consulting services. E. List licensing fees (per workstation/location) for product software. F. List charges for special payroll reports created by the Proposer. G. Prices quoted in the cost proposal should not include taxes and shall be valid through June 30, It is expected that all Providers responding to this RFP will offer their lowest government or comparable favorable rates. Discounts based on number of employees should be clearly delineated. 3.2 Submission of Proposals A. Inquiries: Any questions regarding the request for proposal should be directed to Cheryl Silva by at csilva@townofwarren-ri.gov B. Submission of Proposals: The following material is required to be received by June 30, 2010 before 10:00 am for a proposing firm to be considered: 1. Title Page: Title page showing the subject of the request for proposal's; the firm's name; the name, address and telephone number of a contact person; and date of the proposal. 2. Table of Contents: Clearly identify the material by section and page number. 3. Letter of Transmittal: Briefly outline and summarize the key elements of the proposal as to experience, qualifications, references, and technical expertise. 4. Address the technical items listed in Appendix A. Proposals should be delivered to: Town Clerk s Office Town of Warren 514 Main Street Warren, RI Submissions shall be made in a sealed envelope clearly marked Payroll Services RFP. One copy of a submitted proposal will be retained for official files and become a public record. 4
5 4.0 RIGHTS A. The Town reserves the right to reject any and all proposals and may, in its sole discretion, waive any immaterial deviation or defect in a proposal, provided that such waiver shall in no way modify the solicitation document or otherwise excuse a Provider from full compliance with these specifications. B. The Town reserves the right to solicit or not solicit a similar proposal in the future. C. This request for proposals is in no way an agreement, obligation, or contract, and the Town is not responsible for the cost of preparation of responses hereto. D. Although it is the intent of the Town to enter into contract with the successful proposer, neither receipt of a proposal by the Town nor satisfaction of the RFP s requirements guarantees that the Town will enter into an agreement or contract (see A above). 5.0 ERRORS IN THE SOLICITATION DOCUMENT A. Any person intending to submit a proposal who discovers any ambiguity, conflict, discrepancy, omission, or other error in this solicitation document shall immediately provide the Town with written notice of the problem and request that the solicitation document be clarified or modified. Without disclosing the source of the request, the Town may modify the solicitation document prior to the date fixed for submission of proposals by issuing an addendum to all to whom the solicitation document was provided by the Town. B. If prior to the date fixed for submission of proposals a person or firm submitting a proposal knows of or should have known of an error in the solicitation document but fails to notify the Town of the error, said person or firm shall propose at his/her/its own risk, and if said person or firm is awarded the contract, he/she/it shall not be entitled to additional compensation by time or reason of the error or its later correction. 6.0 QUESTIONS REGARDING THE SOLICITATION DOCUMENT A. Persons requiring clarification of the intent or content of this solicitation document or on procedural matters related to it should direct all correspondence only by to Cheryl Silva, Finance Director, at csilva@townofwarren-ri.gov. B. If a question relating to an intended proposal would expose proprietary information if disclosed to competitors, the question may be submitted in writing, conspicuously marked as CONFIDENTIAL. The question must be accompanied by a statement explaining why the question is sensitive. If the Town concurs that the disclosure of the question or answer would expose proprietary information, the question will be answered and both the question and the answer will be kept in confidence, provided that such response will not provide any advantage not enjoyed by other potential proposers. If the Town does not concur regarding the proprietary nature of the question, or the Town s ability to respond without disadvantaging other proposers, the questioner will be notified and the 5
6 question will not be answered unless the questioner waives confidentiality in writing. 7.0 ADDENDA The Town may modify the solicitation document prior to the date fixed for submission of proposals by faxing an addendum to the vendors to whom the solicitation document was provided by the Town. 7.1 Withdrawal and Resubmission/Modification of Proposals A proposal may be withdrawn at any time prior to the submission deadline by notifying the Town in writing of its withdrawal. The notice must be signed by an officer of the Proposer authorized to do so. Proposer may thereafter submit a new or modified proposal, provided it is received at the Town Clerk s Office no later than Wednesday, June 30, 2010 at 10:00 a.m. Modifications offered in any other manner, oral or written, will not be considered. 8.0 PROPOSAL DEVELOPMENT COSTS Any costs for development or presentation of a proposal are entirely the responsibility of the Proposer and shall not be chargeable to the Town. 9.0 EVALUATION OF PROPOSAL A. Proposals submitted will be evaluated by the Finance Director and the Town Manager for selection. The Town Manager will recommend the selected firm to the Warren Town Council at a public meeting for authorization of contract. B. Evaluation Criteria: Responsive proposals will be evaluated for both technical qualifications and price. The following represent the principal selection criteria, which will be considered during the evaluation process: 1. The Town s assessment of Proposer s relative qualifications to provide such services. 2. The Town s assessment of Proposer s experience in providing such services to entities similar to the Town. 3. The Town s assessment of the extent to which the Proposer can provide the required services. 4. The results of reference checks. 5. The proposed fee schedule. C. The Town of Warren reserves the right to reject any or all proposals or to waive any technicality, informality, or irregularity in the proposals received. The Town further reserves the right to enter into a contract with the Provider whose proposal, in the sole judgment of the Town, offers the best quality and/or best satisfies the Town s requirements regardless of the fees proposed. D. The Town of Warren reserves the right to negotiate specifications, terms, and conditions that may be necessary or appropriate to accomplish the purpose of this RFP. E. Proposals that contain false or misleading statements may be rejected if in the Town s opinion the information was intended to mislead the Town regarding a requirement of the solicitation document. 6
7 F. It is absolutely essential that the Provider submitting a proposal carefully review cost information in the proposal since changes in the information will not be permitted after the proposal has been submitted to the Town Clerk s Office. G. During the evaluation process, the Town may require a Provider s representative to answer questions with regard to the proposal. Failure of a Provider to demonstrate that the claims made in its proposal are in fact true may be sufficient cause for deeming a proposal non-responsive PROPOSED CONTRACT TERMS AND APPLICABLE RULES Agreements with a successful Proposer will be executed by the Town of Warren and will include terms appropriate to a professional services contract. Generally, the terms of the contract will include, but are not limited to: 1. Completion of the project within the timeframe provided. 2. No additional work to be performed without prior approval. 4. Termination of contract under certain conditions. 5. Indemnification of the Town. 6. Approval by the Town of any subcontractors. 7. Minimum appropriate insurance requirements DISPOSITION OF MATERIALS All materials submitted in response to this solicitation document will become the property of the Town of Warren and will be returned only at the Town s option and at the expense of the Provider submitting the proposal. One copy of the submitted proposal will be retained for official files and become a public record. Any confidential material submitted by a Provider that was clearly marked as such will be returned upon request. 7
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