001 Electronic Payment Card Services Pre-Bidders Conference Qs & As

Description

RFP26-001 Pre-Bidders Conference Questions Questions asked by vendors: • Page 25, #9 o Please provide clarity of the intent of this section and it’s applicability if the offeror is a financial institution. - The Offeror must secure a financial instrument in the amount of five million dollars ($5,000,000) from an independent financial institution to be readily available to address any corrective actions that Treasury may need to take to remedy Contractor deficiencies and also to satisfy any liquidated damages that may be due pursuant to Part IV, Section IV-3. Prior to execution of any Contract resulting from this RFP, the Offeror will be required to provide Treasury with proof of such financial instrument. If at any point during the term of the Contract Treasury is required to correct a deficiency of the Offeror, Treasury may exercise against such financial instrument an amount sufficient to cover the costs to Treasury. The Offeror will be required to maintain the financial instrument in the amount of five million dollars ($5,000,000) throughout the duration of the Contract, including subsequent to any instances in which Treasury has drawn against the financial instrument. Financial instruments that an Offeror may secure and provide to meet this requirement include an appropriate certified or bank (cashier’s) check, letter of credit, or performance bond. o If a bond is required, please indicate the type of bond form you require. - • Please see the above response which will also apply to a financial institution. The bond type is a performance bond. Page 43, #9 o Please clarify the intent of this section. Because ACH transactions are transmitted through the NACHA network and settled via the Federal Reserve and participating financial institutions, interstate processing is an inherent component of electronic payments. Would Treasury consider compliance with NACHA rules, Federal Reserve requirements, and applicable banking security controls sufficient to satisfy this requirement? - The section is to enable the Offeror to both illustrate and describe in detail the Offeror’s payment posting process, including a flow chart that depicts the flow of funds from the Commonwealth’s transfer of funds for payments through the posting of deposits into individual accounts.