Request for Proposal (RFP)

The Research Foundation for The State University of New York

Office of Internal Audit

Co-Sourcing of Internal Audit Services

www.rfsuny.org

Table of Contents

Section I: General Standard Information and Instructions ............................................. 1

Summary ................................................................................................................................................... 1

Proposal Submission ......................................................................................................................... 1

Response to Inquiries ....................................................................................................................... 2

The Research Foundation Reserved Rights ......................................................................... 2

Compliance with Laws and Regulations ................................................................................. 2

Liability and Indemnification ....................................................................................................... 3

Additional Terms and/or Conditions ...................................................................................... 3

Bidders Certification .......................................................................................................................... 4

Section II: Overview ................................................................................................................................ 4

Introduction ............................................................................................................................................ 4

Objective ................................................................................................................................................... 4

The Research Foundation ............................................................................................................... 4

Office of Internal Audit Services Background..................................................................... 5

Scope of Work and Intent ................................................................................................................ 5

Role of Co-Sourcing Firm ............................................................................................................ 5

Proposal Objective ......................................................................................................................... 5

Team Composition .......................................................................................................................... 6

Fee Structure ...................................................................................................................................... 6

References ........................................................................................................................................... 7

1 | P a g e

Section I: General Standard Information and Instructions Summary

Key Dates

Event Date

RFP Sent to Suppliers and Posted to the Website February 17, 2016

Submission of Questions from Suppliers February 29, 2016

Research Foundation Response to Questions March 7, 2016

RFP Response Due March 14, 2016

Notification to Suppliers of Finalist Selections April 1, 2016

Oral Presentation Meetings with Finalists April 13, 2016

Notification of Business Decision to Suppliers April 29, 2016

Target Start Date for Signing the Statement of Work July 1, 2016

Location of Service

35 State Street, Albany, New York 12207 Send Inquiries to:

Emily Kunchala, Vice President Office of Internal Audit Services The Research Foundation for SUNY 35 State Street, 5th Floor Albany, New York 12207 P: (518) 434-7180 E: emily.kunchala@rfsuny.org

Proposal Submission

When submitting a proposal, you must:

Prepare a clearly readable document that provides information in the order requested and attach all required information.

Indicate any deviations from specifications.

Sign the proposal. Your signature indicates full knowledge and acceptance of this Request for Proposal (RFP).

Submit six (6) complete proposals, one (1) must have original signatures. One proposal should be electronically submitted to: emily.kunchala@rfsuny.org. All proposals should be sealed, clearly marked “sealed proposal,” and addressed to:

Emily Kunchala, Vice President Office of Internal Audit Services The Research Foundation for SUNY 35 State Street, 5th Floor Albany, New York 12207

All submissions must be received by 4:00pm Eastern Standard Time on March 14, 2016 to be considered. Submissions may be submitted through US Mail. Respondents will receive a confirmation acknowledging receipt of their responses, but will not receive individualized feedback.

2 | P a g e

Response to Inquiries

Any inquiries about the requirements of this Request for Proposal or any apparent omission or discrepancy should be presented in writing to The Research Foundation representative listed below. All formal inquires must be submitted no later than February 29, 2016. Failure to submit inquires by this deadline may result in the inquiry not being answered. The Research Foundation representative will then answer each question and disseminate the answers in writing to each firm that received an RFP or asked a question. If necessary, The Research Foundation representative will issue a written amendment to the RFP. Oral statements or instructions do not constitute an amendment to this RFP. Emily Kunchala, Vice President Office of Internal Audit Services

The Research Foundation for SUNY 35 State Street, 5th Floor Albany, New York 12207 P: (518) 434-7180 E: emily.kunchala@rfsuny.org

The Research Foundation Reserved Rights

The Research Foundation reserves the right to:

1. Reject any and all proposals received in response to this RFP.

2. Request reference and financial statements for the most recently completed fiscal year.

3. Contact any or all references.

4. Waive requirements or amend this RFP on notification to all bidders. Mandatory requirements may be eliminated if unmet by all bidders.

5. Adjust or correct cost or cost figures with the concurrence of the bidders if mathematical or typographical errors exist.

6. Negotiate with bidders responding to this RFP within the requirements necessary to serve the best interest of The Research Foundation.

7. Begin contract negotiations with another bidder in order to serve the best interests of The Research Foundation, should The Research Foundation be unsuccessful in negotiating a contract with the successful bidder within an acceptable time frame.

8. Reject any or all portions of any offer, to negotiate terms and conditions consistent with the solicitation, and to make an award for any or all remaining portions.

9. Request clarifications from bidders for the purpose of assuring a full understanding of responsiveness, and further, to permit revisions from all bidders being considered for contract award, prior to award.

10. Waive minor irregularities.

Compliance with Laws and Regulations (Non-Discrimination, Equal Opportunity and Affirmative Action Obligations)

The awarding of this business and continuation of service are subject to the requirements of Executive Order 11246 and 11375 and the rules and regulations of the Secretary of Labor (41 CFR Chapter 60) in promoting Equal Employment Opportunities. The successful bidder must certify that it does not and will not discriminate or unduly favor any employees or agents on the basis of race, gender, national origin, religion or disability. As part of

3 | P a g e

this contract, bidders must agree to comply with all applicable provisions of Section 503, Title V of the Vietnam Era Veterans’ Readjustment Assistance Act of 1972, as the same may be from time to time amended, together with all applicable regulations thereunder and all applicable provisions of Sections 503 and 504 of the Rehabilitation Act of 1973 (Public Law 93-516) as the same may be from time to time amended, together with all applicable regulations thereunder. Liability and Indemnification

The successful bidder will be responsible for the work, direction and compensation of its employees, consultants, agents and contractors. Nothing in the resulting agreement or the performance thereof by the successful bidder will impose any liability or duty whatsoever on The Research Foundation including, but not limited to, any liability for taxes, compensation, commissions, unemployment, insurance, Workers’ Compensation, disability benefits, Social Security or other employee benefits for any person or entity. The successful bidder shall hold harmless and indemnify The Research Foundation, their officers and employees from and against any injury, damage, loss of liability to persons or property resulting from or arising out of (a) the agreement and (b) the acts, omissions liabilities or obligations of the successful bidder, any affiliate, or person or entity engaged by the successful bidder as an expert, consultant, independent contractor, subcontractor, employee or agent.

Additional Terms and/or Conditions

1. The following items will be incorporated into and made part of, the formal agreement: (1) The Research Foundation’s RFP and (2) the successful bidder’s proposal.

2. In the event of any inconsistency in or conflict among the document elements of the agreement described above, such inconsistency or conflict shall be resolved by giving precedence to the document elements in the following order: (1) the Agreement, (2) this RFP and (3) the successful bidder’s proposal.

3. Any terms that are attached or referenced with a submission shall not be considered part of the bid or proposal, but shall be deemed included for informational purposes only.

4. The resulting agreement shall be binding upon its execution by both parties.

5. The agreement may be revised at any time upon mutual consent of the parties in writing. Such written consent will not be effective until signed by both parties.

6. The relationship of the successful bidder to The Research Foundation shall be that of independent contractor.

7. Proposed prices should reflect all discounts including educational discounts.

8. The submission of a proposal constitutes a binding offer to perform and provide said services. Such binding offer shall be firm and not revocable for a period of 180 days after the deadline for proposal submission and will continue thereafter until the successful bidder notifies The Research Foundation otherwise, in writing. Such deadline may be further extended by mutual agreement.

9. In the event successful bidders uses partners, subcontracts or subcontractors, the successful bidder will remain responsible for compliance with all specifications and performance of all obligations under the contract resulting from this RFP.

10. The Research Foundation will not be liable for any cost associated with the preparation, transmittal or presentation of any proposals or materials submitted in response to this RFP.

11. All bids or proposals submitted in response to the solicitation become and remain the property of The Research Foundation and should any doubt or difference of opinion arise between The Research Foundation and the bidder as to the items to be furnished or the

4 | P a g e

interpretation of the provisions in the solicitation, the decision of The Research Foundation shall be final and binding upon all parties.

12. The RFP and the resulting contract shall be governed by the Laws of the State of New York.

13. Public announcements or news releases regarding this RFP or any subsequent award of a contract must not be made by any bidder without the prior written approval of The Research Foundation.

14. The successful bidder is responsible for compliance with all applicable rules and regulations pertaining to cities, towns, counties and State where the services are provided, and all other laws applicable to the performance of the resulting contract. The successful bidder shall provide all necessary safeguards for safety and protection as set forth by the United States Department of Labor, Occupational Safety and Health Administration.

Bidders Certification

Bidders must submit the following:

Appendix A completed.

Information as requested in Section II. If you are not submitting a bid proposal, The Research Foundation requests the following:

Complete Appendix A.

Section II: Overview Introduction

The Research Foundation (RF) is issuing this RFP in order to solicit competitive price bids from independent certified public accounting firms to provide co-sourced internal audit services for the fiscal years ending June 30, 2017, 2018 and 2019. Interested parties are invited to review this RFP and to submit, in writing, an offer to provide these services.

Objective

The objective of this RFP is to select a supplier or limited number of suppliers with whom the RF may negotiate a Services Agreement between the RF Office of Internal Audit Services and appropriate supplier(s) to provide various internal audit services.

The Research Foundation

The Research Foundation for the State University of New York (SUNY) was founded in 1951 and exists to serve SUNY and to capitalize on the scale and diversity of SUNY as an engine of New York State’s innovation economy. The RF supports nearly $1 billion in SUNY research activity annually, providing sponsored programs administration and commercialization support services to SUNY faculty performing research in life sciences and medicine, engineering and nanotechnology, physical sciences and energy, social sciences and computer and information sciences. The RF's vision is to deliver high quality, focused and efficient services to faculty and staff, sponsors and the SUNY research community; provide an environment that facilitates sponsored program collaboration among SUNY campuses and with the public and private sectors. The RF's mission is to work with the academic and business leadership of campuses to support research and discovery at SUNY through efficient and skillful administration of sponsored projects and adept transfer and sharing of intellectual property for public benefit and economic growth.

5 | P a g e

Office of Internal Audit Services Background

In 2010, RF management and the Audit Committee selected a hybrid co-sourced model for the internal audit function. The co-source model is intended to build upon the accomplishments of the existing internal audit function while providing additional subject matter expertise, or resources, when necessary.

Scope of Work and Intent

The RF Office of Internal Audit Services currently provides operational, financial, information systems, and compliance audits, and performs special investigations for the RF through a staff of trained professionals located in Albany, New York. It is the intent of the RF to enter into a co-sourcing strategic relationship with an internal audit services provider for the delivery of supplemental internal audit services (to augment existing staff) beginning July 1, 2016. The selected company would provide services in support of the RF

operations in Albany, New York and across the state. Engagements must be conducted in

accordance with the Institute of Internal Auditors (IIA), the American Institute of Certified Public

Accountants (AICPA) professional standards and in accordance with Generally Accepted Accounting Principles (GAAP) and applicable laws and regulations. Role of Co-Sourcing Firm

Provide trained, experienced and dedicated internal audit professionals.

Demonstrate that the firm’s philosophy is consistent with the RF’s mission and values.

Be flexible in providing internal audit services consistent with agreed upon audit plan.

Provide subject matter expertise, resources and perspectives when needed (i.e., tax issues, fraud/investigations, sponsored research, clinical trial expertise, technology transfer expertise, etc.).

Provide benchmarking and value-added solutions to business issues.

Document all work and prepare written reports in accordance with the RF Office of Internal Audit Services, Audit Standards Manual.

Interface with RF Internal Audit Management on a regular basis, as determined by the Vice President of Internal Audit.

Demonstrate the ability to perform an audit, investigation, and/or audit related task from the planning phase to the issuance of reports.

Be flexible in performing audit responsibilities in the RF internal audit tool (CCH® TeamMate).

Proposal Objective

Provide any information you believe would be useful based on your experiences involving your co-sourcing support of other organizations, including, but not limited to:

A brief profile of your firm, including its general management concepts and practices.

A description of your firm's internal audit capabilities and available engagement team members.

The firm’s credentials and capabilities in the areas of fraud and forensic auditing.

6 | P a g e

A description of your firm’s capabilities in areas of Office of Management and Budget circular requirements.

Specific audit software or tools used by your firm that would be available to the RF Office of Internal Audit Services as part of its co-sourcing engagement (i.e., CAT, ACL, IDEA, etc.).

An explanation of what differentiates your firm from others.

Team Composition

Describe the composition of available staff including roles and responsibilities of Core Team members and Subject Matter Professionals (SMPs). Provide bios/profiles for both the core team members who will serve the RF and the SMPs who will be available upon request. Please include all of the following:

1. For each of the Core Team members, include the following: a. Partner b. Manager c. Senior Associate

2. For each of the SMP team members, provide information related to the following:

a. Sponsored Research b. Clinical Trials c. IT d. IP e. IRB f. Tax g. Forensic

3. For each of the Core Team members and SMPs, include the following:

a. Number of years of experience performing internal audits b. Government, Education Healthcare and/or Sponsored Research internal audit

clients served in the last three (3) years c. Nature of Engagements d. Certifications e. Work Location f. Oracle Experience g. CCH® TeamMate Experience

Fee Structure

The full term of the engagement will be one to three years.

The level of effort needed in fiscal year (FY) 2017 will be approximately 1,000 to 1,500 hours, with a similar commitment of hours for FY 2018 and FY 2019.

Please describe your firm’s proposed fees in the form of a rate per hour, by person, for the core team using the provision of 1,000 to 1,500 hours of internal audit services on an annual basis. Also, please provide a listing of subject matter professionals (SMPs) that will be accessible by the RF with their rate per hour. Please provide rates for the three year period.

Describe your approach to billing related expenses, and an estimate of such fee structure for this engagement, including both core team and SMPs out of pocket travel related expenses. The RF is willing to pay for all out of pocket travel related expenses except those related to travel, to and from the RF central office located in Albany, New York on normal business days for core team members.

7 | P a g e

References

Provide a list of references (minimum of three) of internal audit clients with similar industry requirements as The Research Foundation. Please include the following:

a. Contact Name b. Contact Title c. Contact Phone Number and Email Address d. Length of Relationship e. Brief Description of the Service Provided f. Fees

All references must be for work completed in the last five years.

35 State Street

Albany, New York

Mailing Address:

Post Office Box 9

Albany, New York

12201-0009

(518) 434-7180

www.rfsuny.org

Appendix A

Not Bidding

Please provide a reason for not bidding. Bidding

Please complete the four (4) questions below.

Reference: Request for Proposal for Co-Sourcing of Internal Audit Department Name of Firm:

Firm Address:

City/State/Zip:

Telephone Number: ( ) -

Employer’s Federal ID Number:

E-Mail Address:

1. Is the price quoted the same as or lower than that quoted for other corporations,

institutions or governmental agencies for similar service and/or like equipment or supplies? Yes No If no, please explain.

2. Does your firm agree that all presentations and materials will be free from racial, religious or sexual bias? Yes No If no, please explain.

3. Are you or any officer of your organization or any part owning or controlling more than 10 percent of your stock if you are a corporation or any member if you are a firm or association, an officer or employee of The Research Foundation for SUNY or of a public benefit corporation of the State of New York? Yes No If no, please explain.

4. Within the past five years has your firm, any affiliate, any predecessor company or entity, owner, director, officer or proprietor been the subject of a government suspension or debarment? Yes No If no, please explain.

Bidder Name (print): Title:

Bidder Signature: Date: