State of Hawaii

Department of Human Services

Benefits, Employment and Support Services Division

Employment/Child Care Program Office


Addendum Number 1


Date Issued:  September 5, 2006




Request for Proposals


RFP No. HMS 903-07-04-O
RFP Title:  Skill Training Services


Date Issued:  August 23, 2006








September 5, 2006







RFP No. HMS 903-07-04-O

RFP Title:  Skill Training Services


The Department of Human Services, Benefits, Employment and Support Services Division, Employment/Child Care Program Office, is issuing this addendum to RFP No. HMS 903-07-04-O, RFP Title:  Skill Training Services, for the purposes of:


       Responding to questions that arose at the orientation meeting of August 28, 2006 and written questions subsequently submitted in accordance with Section 1-VI, of the RFP. 


       Amending the RFP.


       Final Revised Proposals


The proposal submittal deadline:


       is amended to <new date>.


       is not amended.


       for Final Revised Proposals is <date>.


Attached is (are):


       A summary of the questions raised and responses for purposes of clarification of the RFP requirements.


       Amendments to the RFP.


       Details of the request for final revised proposals.


If you have any questions, contact:

Contact person’s name:  Geneva Candeau

Contact phone:  (808) 586-7068

Contact e-mail address:

Contact address:  820 Mililani Street, Suite 606, Honolulu Hawaii 96813-2936

Responses to Question Raised by Applicants

For RFP No. HMS 903-07-04-O

 RFP Title:  Skill Training Services



1. Question:  Section 2 - Service Specifications, page 2,

                        II - General Requirements, paragraph B “Secondary purchaser participation”

What does “Secondary Purchases” pertain to, specifically in regards to “After-the-fact secondary purchases?

     Response:  Secondary Purchases do not apply to the RFP cited above.  For a definition of Secondary Purchases, Pursuant to Section 3-143-608, HAR, please consult


2. Question:  Section 2 - Service Specifications, page 5

                        III - Scope of Work, paragraph A, #4 “Terms of Subsidy”

          What is the minimum amount of work hours an employer is to employ a

                       SEE participant?  The current SEE agreement states twenty-four (24)

                       hours; however, the RFP contract states a minimum of 40 hours per week.

                      Will a lower amount of hours be acceptable for subsidized wage


     Response:  The SEE agreement, which covers the complementary part of the classroom training, needs not exceed 24 hours per week.  However, once the training is completed and the participant is placed in subsidized employment, it is expected that the placement be of no less than 40 hours per week.


3. Question:  Section 2 - Service Specifications, page 8

    III - Scope of Work, paragraph B, #2 “Execution of Contract”, paragraph 2

    Liability  Insurance”

    When must we submit a Certificate of Insurance?

    Response:  A Certificate of Insurance is submitted, together with the Corporate Resolution, when the Contract is signed by the PROVIDER.  The Contract is reviewed by the Attorney General Office prior to execution, and the Certificate of Insurance must be attached to the Contract at that time.


 4.  Question:  Section 2 - Service Specifications, page 9

       III - Scope of Work, paragraph B, #4 “Output and performance/outcome

                           Measurements – Trainee Data

 Please define further the terms “unduplicated” and “duplicated”

     Response:   “Unduplicated” means not part of any pre-existing data; new data as of the month being reported.  “Duplicated” means cumulative data.  For instance, if a participant begins a 4-month training in November 2007, s/he will be counted once as a new trainee in November (unduplicated) and counted for at least 4 consecutive months as an active trainee (duplicated).


5. Question:  Section 2 - Service Specifications, page 10

III - Scope of Work, paragraph B, #4 “Output and performance/outcome


 A 15% Bonus shall be awarded provided that 70% of participants placed in subsidized employment by the PROVIDER are hired unsubsidized and retain the same for no less than 90 consecutive days.  During the first fiscal year, some of the participants obviously will still be in subsidized employment status, depending on their respective start date. How will this particular bonus be measured and assessed?  Will this be based on the first 6 months of the contract term, considering that the Employer receives subsidized wages for up to 6 months?  Will the PROVIDER be penalized or awarded the full 15% based on current success ratios? 

      Response:  The bonus will be calculated on the percentage of participants who

   completed their training, were placed in subsidized employment, and successfully

   transitioned from subsidized to unsubsidized employment.  If 90% of the trainees are

   placed in subsidized employment upon completion of the training, the PROVIDER will

   be eligible for the 5% bonus ($125,000.00).  We will calculate the 2nd bonus based on

   the number of participants who met the requirements as described in the question



  For example: 50 participants are trained during the contract year, of which 45

  participants ( 90% of 50) are  subsequently placed in  subsidized employment.  The

 requirements for the full 5%  bonus have been met. 


  In the same example, only 10 participants successfully transitioned from subsidized to

  unsubsidized within the contract period.  The full 15% bonus ($375,000.00) would only

  apply if 32 participants (70% of 45) had successfully transitioned.  However, since 10

  participants (31% of 32) were  successful, the bonus would be of $116,250.00 (31% of

 $375,000.00.)  No penalty will be assessed for those participants who are still in

 training or subsidized employment at the end of the contract period.


6. Question:  Section 2 - Service Specifications, page 12

III - Scope of Work, paragraph B, #8 “Pricing Structure or pricing methodology to

be used”

Please define the following:

a)      Cost-plus-fixed fee:  What expenses are considered “cost”, and is the PROVIDER given the ability to add a 10% profit amount on these costs?

b)      Indirect Expenses:  What expenses fall into “Indirect Expenses”, and is the Cost-

       plus-fixed fee part of the15% cap for indirect expense?

     Response:  Cost-plus-fixed-fee” allows for payment of all incurred costs within a predetermined amount plus an agreed upon fee which will not change. We anticipate these fees to be limited to 10% or less of the contract award ($200,000).  Also, these fees need to be built within the contract ceiling.\

Indirect Expenses which are also referred to as “administrative cost” are salaries and benefits not associated with providing direct program services, plan and budget preparation, procurement, accounting and payroll.




7. Question:  Section 4 - Proposal Evaluation, page 2

    III - Evaluation Criteria, paragraph B, 1, A Necessary Skills

                       Please clarify this paragraph:  Described how the proposed service is designed to

                       meet the pertinent issues and problems related to the Service

     Response:  That phrase is intended for the evaluator of proposals and is part of a set of criteria the evaluator must take in consideration when assessing any proposal.