Request for Proposals
Consulting Firm to Audit Gross Receipts Tax
Release Date: September 13, 2023
Deadline for Submittal
October 4, 2023
Contact: Antonio Banuelos
Email: [email protected]
Phone Number: 510.620.6741
City of Richmond
Finance Department
INTRODUCTION
The City of Richmond requests proposals from qualified and experienced consulting firms to project gross receipts for very large, complex businesses and to review their financial, manufacturing, and processing records to confirm that reported gross receipts are correct. The City reserves the right to make one award or multiple awards under this RFP, whichever is deemed to be in its best interest. The City also reserves the right to make partial or full award of the services described below. This request for proposal (RFP) describes the project, the required scope of services, the consultant selection process, and the minimum information that must be included in the proposal. Failure to submit information in accordance with the RFP requirements and procedures may be cause for disqualification. The anticipated term of this contract will be for a period of three (3) years with two optional one-year extensions by means of a mutual agreement of both parties.
Vendors are required to read and understand all information contained within this entire Proposal package. By responding to this RFP, the vendor agrees to have read and understand these documents.
ABOUT THE CITY
The City of Richmond was chartered as a city in 1909, and is located 16 miles northeast of San Francisco, directly across the San Francisco Bay. Richmond’s population is 103,828. The mission of the City of Richmond is as follows:
The City of Richmond provides services that enhance economic vitality, the environment and the quality of life of our community.
The City of Richmond provides a full range of municipal services including police and fire protection; construction and maintenance of highways, streets and infrastructure; library services; storm water and municipal sewer systems; operation of a wastewater treatment facility; and the administration of recreational activities and cultural events.
The City also operates the Richmond Memorial Convention Center and the Port of Richmond.
BUSINESS TAX ORDINANCE BACKGROUND
City Council placed a measure on the November 3, 2020 ballot that was approved by the voters, and changed the business license tax calculation methodology in the Business Tax Ordinance to be based on gross receipts in the City of Richmond instead of the number of employees. The new model calculates the business license tax based on the amount of gross receipts (total amount of money received in connection with any sale) in Richmond by the business and then charging a specific percentage based on the type of business and the amount of revenue generated. The tax to businesses ranges from 0.075% to 1.395% of gross receipts.
Previously, the business license tax in most cases was based on the number of employees. The base rate was $234.10 per year and increased per employee a business has working in Richmond (the first 25 employees were charged at $46.80 per employee, and employees above 25 were charged at a rate of $40.10 per employee).
By modernizing our business license tax structure, the City can give needed tax relief to small businesses and generate increased revenue needed to protect vital City services that support Richmond residents, and keep neighborhoods clean, well-maintained, and safe.
RFP SCHEDULE
Date Activity
9-13-23 Release RFP
9-28-23 Final Day to Submit Questions (5:00 PM)
10-4-23 RFP Due Date (3:00 PM)
10-16-23 Short List Interviews
10-23-23 Final Selection and Contract Negotiations
11-21-23 City Approval Processes
11-22-23 Effective Date of Contract
SCOPE OF SERVICES
The City of Richmond seeks qualified and experienced consulting firms to project gross receipts for very large, complex businesses and to review their financial, manufacturing, and processing records to confirm that reported gross receipts are correct. During the life of the contract, the consultant will perform audits of selected businesses to determine accuracy of business tax remittances.
A draft scope of services detailing the anticipated tasks associated with this consulting effort is included below.
Task 1: Project Launch, Review of Background Materials, and Development of Work Plan
Review all materials associated with the new Business Tax Ordinance (hereafter “Ordinance”) and prepare a detailed work plan, including anticipated deliverables, a project schedule, and milestones that meet the City's requirements.
Development of the work plan shall be informed by: (1) case studies of other cities utilizing a gross receipts methodology for calculation of their business license tax; (2) staff engagement; (3) informational interviews; and (4) any other methods to gather, organize and analyze input.
Task 2: Methodology to Conduct Audit
Contractor shall provide proposed methodology for determining which establishments will be audited. Provide information on how the selection method is not only fair, but also most likely to detect those businesses that are incorrectly remitting payments.
Task 3: Post-Audit Training
Provide additional professional services as requested by the City or recommended by the Contractor to ensure optimal implementation of Measure U post-audit training to businesses to maximize future compliance.
PROPOSAL FORMAT GUIDELINES
The proposal should be concise, well organized, and demonstrate the proposer’s qualifications and experience applicable to the Project. The proposal shall be limited to 20 double-sided pages (8.5 inches x 11 inches), inclusive of graphics, forms, pictures, photographs, dividers, etcetera, but not including cost proposal, resumes, required forms, certifications, front and back covers, or letters of commitment from sub -consultants. The required font size is 12 point, with minimum left and right margins of one -inch, and top and bottom margins of 0.7 inches.
Each proposal will adhere to the following order and content of sections. Proposal should be straightforward, concise and provide “layman” explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the offer. Proposals, which appear unrealistic in terms of technical commitments, lack of technical competence or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected. The following proposal sections are to be included in the Vendor’s response:
A. Vendor Cover Letter
A cover letter, not to exceed three pages in length, should summarize key elements of the proposal and shall:
● Confirm that all elements of this RFP have been reviewed and understood;
● Include a statement of intent to perform the services as outlined;
● Express company’s willingness to enter into an agreement under the terms and conditions prescribed by this RFP, insurance requirements (Attachment B) and in the sample Service Agreement (Attachment C); ● Submit a written description and brief history of the company’s experience, qualifications and success in providing consulting services to audit gross receipts tax as described herein or similar type. Please indicate the number of employees, client base and location of offices. ● Include the address and telephone number of the vendor’s office located nearest to Richmond, California and the office from which the project will be managed.
● Stipulate that the proposal price will be valid for a period of at least 180 days.
● Identify a single person for contact during the RFP review process; and ● Cover letter shall be signed by an authorized official of the company.
B. Background and Project Summary Section
The Background and Project Summary Section should describe your understanding of the City, the work to be done, and the objectives to be accomplished. Refer to description of services for this RFP.
C. Methodology Section
Provide a detailed description of the approach and methodology to be used to accomplish the Scope of Services of this RFP. The Methodology Section should include:
1) An implementation plan that describes in detail (i) the methods, including controls by which your firm manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.
2) Detailed description of efforts your firm will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Services" section.
3) Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion. 4) Detailed description of specific tasks you will require from City staff.
Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Services.
D. Staffing
Describe proposed Project team organization, including identification and responsibilities of key personnel. Indicate role and responsibility of prime consultants and all sub-consultants. If applicable, indicate how local firms are being utilized to ensure a strong understanding of state and local laws,
ordinances, regulations, policies, requirements, and permitting. Indicate the extent of the commitment of key personnel for the duration of the Project and furnish resumes of key personnel. Provide an indication of the staffing level for the Project. The City of Richmond’s evaluation of the proposal will consider the proposer’s entire team; therefore, no changes in the team composition will be allowed without prior written approval of the City of Richmond. Sub-consultant letters of commitment are required and must be submitted with the proposal.
Describe the experience of the proposer’s Project team in detail, including the team’s Project Manager, and other key staff members, on projects of similar size, capacity, and dollar value. For each similar project, include the client’s name and correct telephone number. It is the City of Richmond’s policy to interview proposers’ references as well as references identified by the City of Richmond.
E. Qualifications
The information requested in this section should describe the qualifications of the firm, key staff and sub‐contractors performing projects within the past five years that are similar in size and scope to demonstrate competence to perform these services. Information shall include:
1) Names of key staff that participated on named projects and their specific responsibilities with respect to this scope of service.
2) A summary of your firm’s demonstrated capability, including length of time that your firm has provided the services being requested in this Request for Proposal.
3) Provide at least three (3) references that received similar services from your firm. The City of Richmond reserves the right to contact any of the organizations or individuals listed. Information provided shall include:
a) Client Name and contact info
● Telephone and email address
● Address
b) Description of services provided including contract amount c) Project start and end dates
F. Cost Information
Provide the total direct and indirect costs to complete all tasks identified in the scope of services.
a. The overall price and budget, showing the level of effort and cost breakdown by tasks identified in the scope.
b. Provide cost breakdown by sub-consultants, if any.
The budget should include an estimate of hours for each task and for all team members, along with their billing rates. Detail the types of non-labor expenses for which you would expect to be reimbursed.
The top-ranked proposer will be required to participate in negotiations which may result in revisions to the proposal. The cost and method of compensation will be negotiated with the top-ranked proposer.
G. Value Added Services
Please provide any additional services of benefit not specifically required herein, which the proposer offers to provide.
H. Contractor Assignment of Sub-Contract
The resulting contract shall not be assigned, transferred, or sublet, in whole or in part, without the prior written approval of the City of Richmond. If proposers intend to subcontract any portion of the resulting contract, they must describe their process for selecting such subcontractor(s) and the quality control measures that the proposer will employ to ensure that any subcontractor complies with the provisions of the proposers contract with the City.
I. Previous Contracts with the City of Richmond
The proposer shall submit a list which indicates all prime contracts and/or amendments awarded to the proposer by the City of Richmond for the last three (3) years. The list shall include a short description of the Project, the Project scope of work, award date, completion date, name of City of Richmond’s assigned Project Manager, and contract value.
J. Exceptions to this Request for Proposals
The proposer shall state whether it takes exception to any portion of this RFP, including but not limited to the City of Richmond’s Standard Services Agreement – RFP (Attachment C). If the proposer does take exception to any portion of the RFP or contract, the specific portion to which exception(s) is taken must be identified by section number and explained. Requests for changes or additions to sections of the City of Richmond’s Standard Services Agreement must be shown by requesting deletion of specific words and/or by providing new requested contract language. Requests for complete replacement of the City of Richmond’s Standard Services Agreement for another contract will not be granted. Failure to make exceptions to the RFP or Standard Services Agreement within the proposal will be deemed a waiver of any objection. Exceptions will be considered during the proposal evaluation process.
K. Statement of Impartiality and Disclosure
The nature of this Project requires an impartial unbiased approach on the part of the proposer’s team. This proposal shall include a statement declaring that the proposer and sub-consultants are not currently, and will not, during the performance of these services, participate in any other similar work involving a third-party with interests currently in conflict or likely to be in conflict with City of Richmond’s interests. Additionally, proposer is required to disclose any pending or active investigations or litigation that may affect the reputation or ability of the proposer to carry out the Project.
PROCESS FOR SUBMITTING PROPOSALS
Questions Concerning Request for Proposals
All questions must be submitted via the electronic BidsOnline system on the Q&A tab by 5:00pm PST, on September 28, 2023. If the City finds it necessary to issue an addendum, prospective proposers will receive email notification of addendum. It is the proposers responsibility to periodically check the BidsOnline website www.ci.richmond.ca.us/bids
for any possible Addenda to the RFP that may have been
posted.
Any party submitting a proposal shall not contact or lobby any City Council member, City official, employee (except those specified for contact) or agent regarding the RFP.
Any party attempting to influence or circumvent the RFP, bid submittal, and review process may have their proposal rejected for violating this provision of the RFP.
Interested parties may download copies of the above mentioned proposal by visiting the City's web site, www.ci.richmond.ca.us/bids.
To download RFP, new vendors will
be required to register. Once the vendor downloads any documents relative to a solicitation, that vendor's name will appear on the Prospective Bidders list for that project and will receive any addenda or notifications relating to the RFP.
Submission of Proposals
Electronic Proposals shall be submitted via the City’s secure online bidding system. All required sections of the proposal must be submitted via the website. Contractor is solely responsible for “on time” submission of their electronic proposal. The Bid Management System will not accept late proposals and no exceptions shall be made. Contractors will receive an e-bid confirmation number with a time stamp from the Bid Management System indicating that their bid was submitted successfully. The City will only receive those proposals that were transmitted successfully.
The proposal must be received no later than 3:00 p.m., local time, on October 4, 2023.
The proposal and any required certifications shall be signed by an individual or individuals authorized to execute legal documents on behalf of the proposer.
The City of Richmond reserves the right to waive inconsequential irregularities.
GENERAL GUIDELINES
This RFP does not commit the City of Richmond to award a contract, to defray any costs incurred in the preparation of a proposal pursuant to this RFP, or to procure or contract for work. The City of Richmond may reject a proposal without providing the reason(s) underlying the declination. A failure to award a contract to the proposer with the lowest cost proposal shall not constitute a valid cause of action against the City of Richmond. The City shall not be responsible for work done, even in good faith, prior to final approval of the proposed contract. The City may investigate the qualifications of any respondent under consideration, require confirmation of information furnished by the respondent, and require additional evidence or qualifications to perform the Services described in this RFP.
The City reserves the right to:
1. Reject any or all proposals.
2. Issue subsequent Requests for Proposal.
3. Postpone opening for its own convenience.
4. Remedy technical errors in the Request for Proposal process.
5. Negotiate with any, all, or none of the Respondents.
6. Solicit best and final offers from all or some of the Respondents.
7. Select one or more Respondents.
8. Accept other than the lowest proposed fees.
9. Waive informalities and irregularities in proposals.
Public Records
All proposals submitted in response to this RFP become the property of the City of Richmond and public records and, as such, may be subject to public review. Documents protected by law from public disclosure will not be disclosed by the City of Richmond if clearly marked with the word "confidential" on each applicable page. Trade secrets may be marked as confidential only to the extent they meet the requirements of California Government Code section 6254.7. Only information claimed to be a trade secret at the time of submittal to the City of Richmond and marked as "confidential" will be treated as a trade secret.
Insurance Requirements
The City of Richmond requires consultants doing business with it to obtain insurance, as shown in RFP Attachment B. The required insurance certificates must comply with all requirements of the standards as shown and must be provided within fifteen (15) days
of issuance of the Notice of Intent to Award and prior to the commencement of any work on the Project.
Business Licenses
The successful Contractor and all subcontractors used in the work will be required to hold or to obtain a City of Richmond business license for which the fee will not be waived.
Compliance with City Ordinances
The contractor and all subcontractors shall comply with the City of Richmond Nondiscrimination Clauses in City Contracts Ordinance ( Richmond Municipal Code
(RMC) Chapter 2.28), Business Opportunity Ordinance (RMC Chapter 2.50), Local Employment Program Ordinance (RMC Chapter 2.56), Living Wage Ordinance (RMC Chapter 2.60) and Ordinance Banning the Requirement to Provide Information of Prior Criminal Convictions on all Employment Applications (“Ban the Box”) (RMC Chapter
2.65), which are incorporated into the Contract Documents by this reference.
Sanctuary City Contracting Ordinance (SCCO)
The Richmond Sanctuary City Contracting Ordinance No. 12-18 prohibits the City from granting and or retaining contracts with any person or entity that provides Data Broker or Extreme Vetting services to the U.S. Immigration and Customs Enforcement Division of the United States Department of Homeland Security (“ICE”). Bidders/Proposers must submit the attached Sanctuary City Compliance Statement with their Bid or Proposal.
Collusion
By submitting a proposal, each respondent represents and warrants that its proposal is genuine and not false or collusive or made in the interest of, or on behalf of any person not named therein; that the respondent has not directly or indirectly induced or solicited any other person to submit a false proposal, or any other person to refrain from submitting a proposal; and that the respondent has not, in any manner, sought collusion to secure any improper advantage over any other person submitting a proposal.
Withdrawal of Proposals
A respondent may withdraw their proposal before the expiration of the time for submission of proposals by delivering to the Finance Department a written request for withdrawal signed by, or on behalf of, the respondent.
Ownership of Documents
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials produced for the Project shall be the sole and exclusive property of the City. No such materials or properties produced in whole or in
part for the Project shall be subject to private use, copyrights or patent rights by Respondent in the United States or in any other country without the express written consent of the City. The City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced for this project.
PROPOSAL EVALUATION AND SELECTION PROCESS
All proposals shall be reviewed to verify that the Respondent has met the minimum requirements. Proposals that have not complied with requirements, do not meet minimum content and quality standards, or take unacceptable exceptions to the General Terms and Conditions of the Service Agreement, will be eliminated from further consideration.
Proposals will be reviewed and evaluated by an evaluation committee comprised of City of Richmond personnel.
The top Proposals may then be invited to make a presentation to the evaluation panel at no cost to the City.
The City reserves the right to reject any or all proposals, or to make no award. The City also reserves the right to require modifications follow‐up with requests for additional information, including, but not limited to, follow‐up interviews. The City may request Best and Final offers based upon improved understanding of the offers or changed scope of service. The City will negotiate with that vendor to determine final pricing, and contract form. Because this proposal is negotiable, all pricing data will remain confidential until after award is made, and there will be no public opening and reading of Proposals.
Overall responsiveness to the RFP is an important factor in the evaluation process. The criteria upon which the evaluation of the proposals will be based include, but are not limited to, the following:
The Proposal/Methodology and Work Plan – 30%
The proposers responsiveness to the RFP including completeness and thoroughness of proposal; demonstrated understanding of the RFP scope of services; methods of approach, and work plan. All required information must be provided in the format specified. This category will also evaluate:
● Ability to provide services as outlined in the RFP.
● Approach and proposed methodology to project scope
● Demonstrated knowledge of the work required
● Explanation of the Project or services required
● Innovative approaches and internal measures for timely completion of Project
Project Team – 25%
Respondent should demonstrate that all key personnel have been successfully involved with projects of similar scope and magnitude. This category will evaluate the firms:
● Qualifications and relevant individual experience
● Unique qualification of key personnel
● Staff Availability / Time commitment of key members
● Organization chart
Proposer Qualifications – 30%
Technical experience in performing work related to type of services; experience working with public agencies; record of completing work on schedule; strength and stability of the firm; technical experience and strength and stability of proposed sub consultants; and assessments by client references as available.
Cost Proposal – 15%
Pre-Award Negotiations
After the proposals are opened, but prior to award, the City may elect to conduct negotiations with the highest ranked respondent for purposes of:
● Resolving minor differences and information
● Clarifying necessary details and responsibilities
● Emphasizing important issues and points
● Receiving assurances from respondents
● Cost/budget clarifications
If the City cannot successfully negotiate a contract with the highest ranked respondent, the City may begin negotiations with the second highest ranked respondent.
Selection may be made without further discussion, negotiations or presentations; therefore, proposer shall offer the most favorable terms in response to this RFP. The proposer must demonstrate an understanding of the scope of service to be provided and the ability to accomplish the tasks set forth. Proposer shall include information that will enable the City to determine their overall qualifications. The City reserves the right to request additional information or clarification on any matter included in the proposal response, to enable the City to arrive at the final award decision.
Award - When the Review Panel has completed its work, City staff will then recommend a consulting firm to the City Manager and City Council for approval. The services provided by the successful bidder shall be governed by a Standard Services Agreement (Attachment C).