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City and County of San Francisco

Controller’s Office
1 Dr. Carlton B. Goodlett Place, Rm. 316
San Francisco, CA 94102

Request for Qualifications


RFQ# CON2006-6

City Services Auditor Consulting Services


Financial Audit and Analysis Services
Performance Audit and Analysis Services
Information Technology Audit and Analysis Services

For the most current information, visit http://www.sfgov.org/controller and “Contract Opportunities”

Issue Date: October 17, 2006

Deadline for Advance Questions: October 30, 2006, 12:00 pm

Response Deadline: November 17, 2006, 12:00 pm


Table of Contents

1. Introduction-------------------------------------------------------- 1

2. Scope of Work---------------------------------------------------- 3

3. RFQ Clarification and Schedule ----------------------------- 5

4. Response Submission Requirements ---------------------- 6

5. Evaluation Criteria ----------------------------------------------10

6. Protest Procedures---------------------------------------------11

RFQ Attachments for Response Submission as part of “Original”


Attachment I Respondent Acknowledgement of RFQ Terms and Conditions
Attachment II City’s LBE Goals and Outreach Information (2 sets)
Attachment III City’s Administrative Requirements
Attachment IV City’s Agreement Terms and Conditions
1. Introduction

What are the general terms used in this RFQ? The “Respondent” refers to any entity
submitting a response to this Request for Qualifications (“RFQ”). The “Contractor” refers to the
Respondent(s) selected to provide services under this RFQ.

1.1 Statement of Need and Intent

What is the City seeking? The City and County of San Francisco, California (“City”) seeks
responses from firms with expertise in public sector audit and analysis consulting services,
particularly with municipal general purpose governments. These services will help the Office of
the Controller-City Services Auditor (“CSA”) provide objective, rigorous measurement of City
service levels and effectiveness. The City is interested in expertise in the following project
types:

• Financial Audit and Analysis Services


• Performance Audit and Analysis Services
• Information Technology Audit and Analysis Services

Should firms partner to cover more services, or focus on an area of expertise and bid
individually? For this RFQ, the City prefers the latter to give the City greater flexibility to
negotiate with Respondents on an as-needed basis for projects of various sizes and scopes.

With whom will Contractors work? Consultants will work with CSA and other Controller’s
Office staff, as well as staff from CSA client departments (other City departments).

What are the Requirements for Firms Responding for Audit Services?

Independence
All firms and staff of firms selected by the City to provide audit services will be expected to
demonstrate, as applicable:
• Independence of the agency for which the work will be performed (see Attachment
IV, Section 59)
• Independence as required by current U.S. Government Accountability Office’s
Government Auditing Standards, known as the Yellow Book

Compliance with Standards


All firms and staff of firms selected by the City to provide audit services will be expected, as
applicable, to demonstrate familiarity and compliance with:

• Generally accepted auditing standards as set forth by the American Institute of


Certified Public Accountants (AICPA)
• Current standards for financial audits, attestation engagements, or performance
audits as set forth in the U.S. Government Accountability Office’s Government
Auditing Standards, known as the Yellow Book
• AICPA’s Code of Professional Conduct

Continuing Professional Education


All firms and staff of firms selected by the City to provide audit services shall obtain
continuing professional education (CPE) in subjects directly related to the government
environment and to government auditing in compliance with the Government Auditing
Standards. Documentation of the CPE records for all participants shall be furnished to the
City upon request.

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What is the City’s intent with this RFQ? Based on responses to this RFQ, it is the City’s
intent to create a pre-qualified pool of consultants from which the City shall contract on an as-
needed basis for consulting projects indicated below in Section 2, Scope of Work. This pool
may be used by the City, at its sole and absolute discretion, for contractor selection and
negotiations through December 31, 2008. No pre-qualified or selected Respondent is
guaranteed a contract.

1.2 Background of City and County of San Francisco

What is the City? San Francisco is the fourth largest city in California. The City and County
of San Francisco established by Charter in 1850, is a legal subdivision of the State of California
with the governmental powers of both a city and a county under California law. The City’s
powers are exercised through a Board of Supervisors serving as the legislative authority, and a
Mayor and other independent elected officials serving as the executive authority.

Operating budget Approx. $5.1 billion


Budgeted FTEs Approximately
26,500+

What are the Roles and Responsibilities of the City Controller’s Office? The City Controller is
the chief accounting officer and auditor for the City and is responsible for all financial
management systems, procedures, internal control processes and reports that disclose the
fiscal condition of the City to managers, policy makers and citizens. The City Controller is also
the auditor for the City performing financial and performance audits of departments, agencies,
concessions and contracts.

Proposition C, passed in November 2003, amended City Charter Section 3.105 to instruct the
City’s Controller to serve as City Services Auditor. This recently enacted role makes the
Controller’s Office responsible for providing objective, rigorous measurement of City service
levels and effectiveness and authorizes it to contract with outside, independent experts for a
variety of consultant services. For more information regarding City Services Auditor roles and
responsibilities, visit http://www.sfgov.org/controller.

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2. Scope of Work
This scope of work is a general guide to the work the City expects to be performed, and is not a
complete listing of all services that may be required or desired.

Possible Contract Deliverables include, but are not limited to:

• Audit report on basic financial statements


• Single audit report relative to direct and pass-through federal financial assistance
programs
• Financial and internal control reviews (for example, revenues paid by concessions and
the controls over those revenues)
• Management letter indicating deficiencies or opportunities for accounting and reporting
improvements, specifically identifying any reportable condition or material weakness
• Disclosure of fraud, illegal acts, non-compliance, and abuse.

Demonstrated expertise is requested, but is not limited to, the following project types:

2.1 Project Type 1: Financial Audit and Analysis Services

Certified Public Accountants are highly desirable.

A. Concessionaire finance and management: Financial audits and analysis of concessionaires,


including technical assistance to City departments in accordance with concessionaire
agreements between the City and third parties.

B. Bond finance and management: Financial audits, compliance reviews, and analysis of
revenue and general obligation program bonds.

C. Audits and technical assistance to community-based and non-profit organizations receiving


contract and grant funds from the City to ensure compliance with federal, state and local
requirements.

D. Actuarial services and audits: Financial audits and analysis of actuarial and claiming
services, including those provided to the City by third-party contractors, to confirm the
validity of the contractors’ assumptions and methodologies.

E. Forensic accounting and audit services: Certified Forensic Accountants or Certified Fraud
Examiners are highly desirable. The City seeks forensic investigative expertise within a
public sector context combining accounting, auditing, and investigative expertise.

2.2 Project Type 2: Performance Audit and Analysis Services

Performance audit services may include, but are not limited to: assessment of the economy,
efficiency, and effectiveness of the performance and management of a program against
objective criteria and development of recommendations to improve program operations;
compliance with legal or other requirements; and prospective analyses, guidance, or summary
information.

Analysis services may include, but are not limited to: performance management, organizational
development, strategic planning, and business process analyses. Experience conducting best
practice and benchmarking analyses for municipal general purpose governments is highly
preferred.

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2.3 Project Type 3: Information Technology Audit and Analysis Services

Certified Information Systems Auditors are highly desirable. Note that hardware and software
purchase, installation, and maintenance services are not requested through this RFQ.

A. Analysis of the City’s controls and operations: Includes assessment of controls and audit
trails for hardware, software, voice communications, local area network and wide area
network systems.

B. Analysis of data security, privacy, and risk-assessment: Includes effects of physical


disasters on information systems, information technology (IT) outsourcing, IT performance,
information systems governance and the risks inherent in the technology systems used to
support business objectives.

What if My Firm is Interested in Being Considered for More Than One Project Type? Each
Respondent may submit a response for one or more project types. Respondents submitting
responses for one or more projects must include a separate set of Qualifications and Cost and
Work Effort Estimate for each project type. See Section 4, Submission Requirements, for more
details.

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3. RFQ Clarification and Schedule
3.1 RFQ Clarification

To ensure fair and equal access to information about this RFQ, no questions or requests for
interpretation will be accepted after the Questions deadline. Any requests for information
concerning the RFQ must be in writing and addressed to Esther Reyes at
Esther.Reyes@sfgov.org or by fax at (415) 554-7872.

Questions
In lieu of a pre-response conference, fax or e-mail your questions to Esther Reyes at
415.554.7872 or Esther.Reyes@sfgov.org. Advance questions must be received before 12:00
pm PST on Monday, October 30, 2006.

Summary of Information Requested and Presented


A summary of the substantive information, including questions and answers pertaining to this
RFQ will be posted on the Controller’s Office website at http://www.sfgov.org/controller under
“Contract Opportunities.”

3.2 RFQ Schedule

The following is a summary of key dates related to this response and Respondent pre-
qualification process:

Phase Date*

RFQ is advertised and issued by the City Oct. 17, 2006


Deadline for RFQ Questions (12:00 p.m.) Oct. 30, 2006
Summary of Clarification Information Available Nov. 03, 2006
Responses due (12:00 p.m.) Nov. 17, 2006
Interviews with Selected Respondents Dec. 01, 2006
Contract(s) Begins Dec. 15, 2006
*Each date is subject to change by issuance of an addendum to this RFQ.

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4. Response Submission Requirements
4.1 Time and Place for Submission of Responses

Responses and all related materials must be received by 12:00 pm on Monday, November 17,
2006. Responses may be delivered to the Reception Desk at City Hall, Room 316:

Esther Reyes
Office of the Controller
City Hall, Room 316
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102

Postmarks will not be considered in judging the timeliness of submissions. Responses


submitted by e-mail will not be accepted. Late submissions will not be considered, including
those submitted late due to mail or delivery service failure. Note that Respondents hand-
delivering responses to City Hall may be required to open and make packages accessible for
examination by security staff.

4.2 Response Package

The following items must be included in your response and packaged in a box or envelope
clearly marked RFQ#CON2006-6 CSA Services. Ensure that your all of your documents
include page numbers.

• Original printed response (with original signatures) - One (1) copy labeled as
“Original.”
• Complete printed copies of the response - Five (5) copies
• CD-ROM containing entire contents of response - One (1) CD-ROM. All electronic
files must clearly identify the Respondent’s name.

4.3. Format and Content of Responses

Interested parties are advised to review Attachments I through IV before beginning work on
responses to ensure they can meet the City’s requirements.

Submit the following information in the order specified. Three-hole binders, with a table of
contents, tabbed sections, adherence to the following format, and complete, but concise responses,
are recommended for ease of review by the evaluation team. Responses should provide a
straightforward, concise description of the Respondent’s capabilities to satisfy the requirements of
the RFQ. Marketing and sales type information should be excluded. The page maximums are
intended to encourage focused responses. All parts, pages, figures, and tables should be numbered
and clearly labeled.

Responses for more than one project type may be submitted under cover of a single Executive
Summary. However, a separate set of Qualifications and Cost and Work Effort Estimate should
be submitted for each project type.

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A. Executive Summary (5-page maximum)
An executive summary should be submitted, including:

1. How Did You Find Out About this RFQ Opportunity?

2. Project Type(s) Identification Clearly identify the project types for which response is
intended (as discussed in Section 2, Scope of Work).

3. Overview of the Lead Respondent Firm Include the following information:

a. Identify the lead firm. How long has the lead firm been in business?
b. Describe the lead firm’s size and organizational structure.
c. How long has the lead firm been providing public sector audit and consulting
services? If specifically responding to audit services, describe relevant
certifications for each project type and information demonstrating the
Respondent’s understanding of government audit requirements, as outlined in
the RFQ Introduction section (independence, standards, continuing professional
education).
d. Statement of the lead firm’s total staff size, as well as the staff size of the local or
regional office proposing to perform services.
e. Briefly describe any pending litigation.
f. Provide a list of lead firm’s clients where the contractual relationship was not
completed and was severed for reasons other than convenience. A brief
description of why the relationship was severed and the name of the client and
the client’s project manager are also required.
g. If applicable, the results of the most recent quality assurance (peer) review.

4. RFQ Contact Clearly identify the person that will serve as the overall RFQ contact. All
contact information should include a name, title, firm affiliation, e-mail address, fax
number, and telephone number.

5. City’s Vendor Number assigned to Respondent. Possession of this number serves as


partial verification that the Respondent has completed the City’s administrative
requirements (see Attachment III for more details).

6. Administrative Requirements Statement that the Respondent is in the process of


fulfilling or has fulfilled the City’s administrative requirements. Fulfillment is defined as
completion, submission and approval by applicable City agencies of the forms referenced
in Attachment III.

B. Qualifications (clearly identify for each project type)

Each Respondent must demonstrate that it satisfies the requirements below for each project
type for which it would like to be considered (see Section 2) to enable the City to determine that
each Respondent is sufficiently qualified to perform similar services in such areas for the City.
The lead staff proposed by the Respondent to be assigned to the City’s project(s) under this
RFQ should be the same Respondent’s staff utilized in similar roles for the client projects
included in the response.

1. Minimum Qualifications
Respondents not meeting these minimum qualifications will not be considered and their
RFQ responses will not be evaluated. Be sure to complete this section, as described.

a. Respondent Qualifications Each Respondent must clearly identify and describe at

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least three (3) projects substantially similar to the services requested by the City (see
Section 2 of this RFQ) within five (5) years from the date of this RFQ. Each of these
projects must have been conducted for municipal clients (or similar government
agencies) on complex audit or analysis consulting projects substantially similar to
those described in Section 2 of this RFQ. At least two of the three projects
described must be from entities other than the City and County of San Francisco.

List each client’s name and location (city, county, state), reference contact person,
phone number, dates of the engagement, nature of services provided, key service
deliverables/outcomes (may include the amount of cost savings or revenues
collected either on behalf of the client or as a result of services provided, if
applicable), and the names and roles of Respondent’s lead staff who worked on
these engagements.

b. Lead Staff Qualifications The Respondent’s lead staff proposed to be assigned to


the City’s project(s) must individually have had a similar lead role in two (2)
comparable projects within five (5) years from the date of this RFQ. Each member of
a responding joint venture must separately meet each requirement of a
demonstrated skill or experience required of the Respondent.

For each lead staff person, list each client’s name and location (city, county, state),
reference contact person, phone number, dates of the engagement, nature of
services provided by, and roles of the Respondent’s staff, and key service
deliverables/outcomes provided by the Respondent’s staff person (may include the
amount of cost savings or revenues collected either on behalf of the client or as a
result of services provided, if applicable).

2. Staff Qualifications
a. Names of Respondent’s proposed project manager for City’s project(s) and team
members who will be assigned to project.
b. Organization chart identifying each key person on the proposed project team with
titles, including Human Rights Commission-certified Local Business Enterprise (LBE)
firm staff (see Attachment II).
c. Brief narrative descriptions of the roles each person will have in the project.
d. Descriptions of the experience and qualifications of the project team members,
including brief resumes.
e. A written assurance that the key individuals listed and identified will be performing
the work and will not be substituted with other personnel or reassigned to another
project without the City’s prior approval.

Reference Checks The client information submitted by the Respondent in the Qualifications
section may be used by the City to conduct reference checks. The City will not inform
Respondents when references will be contacted. The Respondent should ensure that client
contact information listed in the Qualifications response is up-to-date and should notify clients
that the City will be contacting them.

C. Cost and Work Effort Estimate (1 page maximum for each project type submitted)

Cost/Work Effort Estimate Spreadsheet or Table Separate rates and hours, if different for
more than one project type, should be submitted by Respondents responding to more than one
project type. Respondents should provide standard hourly billing rates by staff name/role, the
estimated percentage of overall team effort each staff person would allocate to the project, and
the estimated number of hours typically spent on a project of the type the City is requesting,
along with an estimated total amount for travel and miscellaneous project expenses. A

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spreadsheet or table format if preferred with sufficient detail for the City to determine the
appropriateness of what is being included.

The City recognizes that estimating costs is difficult without a specific scope of services and is asking
Respondents to state their assumptions. Respondents should estimate staff hours and levels of
effort based on previous experience with projects similar in size and scope to that of this RFQ. To
help with the travel expense estimate, generally for projects of this type, consultants can expect an
introductory meeting, four project meetings, and regular monthly meetings.

Blended Hourly Rate Respondents should blend the cost of hours, travel, and miscellaneous
project expenses together to present an overall blended hourly rate. The rate is intended to
fully compensate Respondents for all services. No additional expenses are allowed, including
lodging, meals, reproduction costs, and any other expenses related to the completion of
services.

Based on the hourly rate, the City will work with Respondent(s) selected for contract negotiation
to determine costs on a “not-to-exceed” basis for deliverables. "Not-to-exceed" means that
Contractor will perform its obligations under the Agreement with the City even if it is required to
expend more than the number of hours used to determine the cost. The "not-to-exceed" price
will be inclusive of all work and services needed to deliver the City's requirements.

The City intends to select a Respondent(s) that will provide the best overall services, and
reserves the right to accept other than the lowest-hourly-rate offer.

D. Sample Reports (Optional)

Firms may submit up to two (2) sample reports related to the project types herein that were
developed by the Respondent’s proposed project manager and team members who will be
assigned to projects under this RFQ. Any sample reports submitted should be part of each
copy of the response.

E. Attachments Requiring Response as part of “Original” Printed Response Package


Additional sets for each of five response copies are NOT needed.

Attachment I Respondent Acknowledgement of RFQ Terms and Conditions


Attachment II City’s LBE Goals and Outreach Information (2 copies in sealed envelope)
Attachment III City’s Administrative Requirements
Attachment IV City’s Agreement Terms and Conditions

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5. Evaluation Criteria
This section describes the guidelines used for analyzing and evaluating the responses and for
Respondent pre-qualification. It is the City’s intent to pre-qualify Respondent(s) that will provide
the best overall service packages to the City inclusive of fee considerations.

5.1 Evaluation Team

City representatives will serve as the Evaluation Team responsible for evaluating Respondents.
Specifically, the team will be responsible for the evaluation and rating of the responses for pre-
qualification and for conducting interviews, if desired by the City. Subject matter experts from
City departments who have knowledge of specific business processes may support the
Evaluation Team during the pre-qualification selection and contract negotiation process.

5.2 Evaluation Criteria for Pre-qualification

Each RFQ response will be evaluated in accordance with the criteria itemized below. If a
Respondent does not receive a score of 71 points or above out of the 100 total possible points,
the Respondent will not be pre-qualified.

Written Response Evaluation for Pre-Qualification (100 points)

• Does the response clearly and specifically demonstrate expertise and experience
substantially similar to what is requested for the services in this RFQ?
• Are the proposed staff appropriately qualified?
• Is the proposed Cost and Work Effort Estimate appropriate and reasonable?
• Did the Respondent adhere to the submission requirements set forth in the RFQ?

Reference checks will be used to determine the applicability of Respondent experience to the
services the City is requesting and the quality of services and staffing provided to prior clients,
as well as adherence to schedules/budgets and Respondent’s problem-solving, project
management, and communication abilities, as well as performance on deliverables, and
effectiveness in getting recommendations implemented.

On an as-needed basis through December 31, 2008 and at the City’s sole and absolute
discretion, pre-qualified Respondents may be invited to interviews with the Evaluation Team.
Interviews will consist of standard questions asked of selected Respondents, and specific
questions regarding individual responses.

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6. Protest Procedures
6.1 Protest of Non-Responsiveness Determination
Within five (5) working days of the City's issuance of a notice of non-responsiveness, any firm
that has submitted a response and believes that the City has incorrectly determined that its
response is non-responsive may submit a written notice of protest. Such notice of protest must
be received by the City on or before the fifth (5th) working day following the City's issuance of
the notice of non-responsiveness. The notice of protest must include a written statement
specifying in detail each and every one of the grounds asserted for the protest. The protest
must be signed by an individual authorized to represent the Respondent, and must cite the law,
rule, local ordinance, procedure or RFQ provision on which the protest is based. In addition, the
protestor must specify facts and evidence sufficient for the City to determine the validity of the
protest.

6.2 Protest of Establishment of Pre-Qualified Consultant List


Within five (5) working days of the City's issuance of a notice of intent to establish a pre-
qualified consultant list, any firm that has submitted a responsive response and believes that the
City has incorrectly selected another Respondent for pre-qualification may submit a written
notice of protest. Such notice of protest must be received by the City on or before the fifth (5th)
working day after the City's issuance of the notice of intent to establish a pre-qualified
consultant list.

The notice of protest must include a written statement specifying in detail each and every one of
the grounds asserted for the protest. The protest must be signed by an individual authorized to
represent the Respondent, and must cite the law, rule, local ordinance, procedure or RFQ
provision on which the protest is based. In addition, the protestor must specify facts and
evidence sufficient for the City to determine the validity of the protest.

6.3 Delivery of Protests


All protests must be received by the due date. If a protest is mailed, the protestor bears the risk
of non-delivery within the deadlines specified herein. Protests should be transmitted by a
means that will objectively establish the date the City received the protest. Protests or notice of
protests made orally (e.g., by telephone) will not be considered. Protests must be delivered to:

Esther Reyes - Office of the City Controller


City Hall, Room 316
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102
Email: esther.reyes@sfgov.org

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