CCP_Solicitation_Revised_06022011_newer_version.docx

11-233-SOL-00050

SECTION B - SERVICES AND PRICE/COST

B.1. Pricing The Contractor shall be responsible for providing the goods and services as set forth in Section C at a Firm Fixed Price. The period of performance shall be two (2) months with four (4), 12-month option periods (see Section F.1, Period of Performance).

SECTION C - STATEMENT OF WORK

C.1 TITLE

Public Health Service Active Duty Personnel and Payroll Program (PHS CCP)

C.2 INTRODUCTION:

The Commissioned Corps of the U.S. Public Health Service (Corps) is comprised of more than 6,500 full-time public health professionals dedicated to delivering the Nation's public health promotion and disease prevention programs and advancing public health science. Corps officers serve in a variety of positions throughout the U.S. Department of Health and Human Services (HHS) and certain non-HHS Federal agencies and programs that focus on key areas of disease control and prevention; biomedical research; regulation of food, drugs, and medical devices; mental health and drug abuse; health care delivery; and international health. As one of America's seven uniformed services, the Corps fills essential public health leadership and service roles within the Nation's Federal Government agencies and programs. The Corps has officers in the following professions:

· Medical Doctor

· Nurse

· Dietitian

· Environmental Health

· Health Services

· Therapist

· Dental

· Pharmacist

· Engineer

· Scientist/Researcher

· Veterinarian The contract will be a Firm-Fixed Priced type for two (2) months with four (4), 12- month option periods.

C.3 BACKGROUND

Payroll services are currently provided by the staff of the Office of Commissioned Corps Support Services (OCCSS) using a web-based software system that collects data from source documents through user-accessible transactions calculates gross compensation and processes gross-to-net disbursements. Personnel orders are processed by both the Office of Commissioned Corps Operations (OCCO) and the Commissioned Corps Compensation Branch (CB) who collect records, maintain files, and perform personnel related transactions using the integrated personnel order and payroll system.

The Administrative Operations Service (AOS) is responsible for maintaining and overseeing the production of the Commissioned Corps officer's payroll using the Commissioned Corps Personnel and Payroll system (CCP). CCSB, an organization within AOS, transmits all Commissioned Corps Payroll to the Department of Treasury after each monthly payroll is computed, validated and certified.

Direct Access (DA). Direct Access is currently the System of Record for Licenses and Certifications, Readiness compliance and some officer HR. It is maintained for the benefit of the Corps by the United States Coast Guard. The Office of the Assistant Secretary for Health (OASH), Coast Guard and OMB are committed to migrating positions, the recruitment system, the applicant system, and the electronic call to active duty system, the promotion system, and the officer evaluation system to Direct Access over the next 5 years. This will necessitate ongoing changes to the pay and personnel system to accommodate these Direct Access implementations.

Commissioned Corps Personnel and Payroll System (CCP). CCP is the current web based, real-time, workflow enabled, personnel and payroll management system providing electronic initiation and processing of military personnel actions, computing compensation and maintaining personnel and payroll records for Active Duty and Retired Officers of the Commissioned Corps. The CCP system provides a full range of services from call to duty through retirement.

Commissioned Corps Compensation Branch (CB). The Commissioned Corps Compensation Branch (CB) collects records, maintains files, audits individual payees, performs payroll transactions using CCP and administers a system of basic pay, allowances, and special or incentive pay for active duty Corps. CB also administers a pay system for retired officers and survivor annuitants. The Branch provides these services in coordination with the Departments of Defense (DOD), Veterans Affairs, and Treasury.

Office of Commissioned Corps Operations (OCCO). The Office of Commissioned Corps Operations collects records, maintains files, and performs personnel related transactions using CCP.

Current System Overview The current software system is a web-based application running on servers housed in an off-site collocation facility. It provides for data input from personnel and payroll source documents. The transactions are edited at point of origin and then combined with any other input documents for that employee to determine all changes since the last instance. Pay determination is by exception only; the default is to receive the same pay as the previous (monthly) cycle. In addition to proactive changes, the system is able to detect changes due to longevity milestones. This longevity changes occur for both base pay and several types of specialty pay to which an officer may be entitled.

The system stores large tables provided by the DOD to determine the amount of housing allowance to which officers are entitled based on their grade, dependent status, and duty station zip code. Since officers can be called to duty, transferred, or separated at any point during the payroll cycle, the system must be able to determine prorated earnings for all categories of pay. As supporting documentation may arrive after the fact (i.e., change in marital status), the system shall be able to perform retroactive adjustments for, at a minimum, all pay cycles in the current tax year. The Offeror's system should be web-based using modern tools according to accepted standards. It must allow for different levels of roles and responsibilities. Certain transactions that do not affect an officer's gross pay (i.e. tax withholding, payroll address, savings allotment, etc.) should be available to the Officers via self service.

Transactions that require review and approval (i.e. dependent certification) must be initiated by the officer and forwarded to a payroll technician before being finalized. Other transactions (i.e. bonus pays) are initiated and/or approved by members of the officer's organization prior to being forwarded to the payroll technician. The system displays an earnings statement on the web that shows each element of pay, both current and year-to-date, indicates whether it is taxable or non-taxable, and lists each deduction and allotment to gross pay. Before the end of January each year, the system will display the officer's W-2/1099R statement. Both of these documents shall be available for printing. The data base engine must be accessible for standard and ad-hoc reports using commercially available packages.

The current system stores all the data necessary to perform gross-to-net calculations, and maintain both taxable and non-taxable earnings. It performs federal, state, and local tax calculations using tables provided by a third-party vendor. It creates output files for Electronic Funds Transfer (EFT) transactions to banks, insurance companies, Federal Thrift Savings Plan, charities, U.S. Savings Bonds, tax entities, etc. It provides output data in a format suitable for auditors and historical review. It does not dispense funds but rather provides data to the U.S. Treasury in predefined formats.

The existing systems have interfaces to numerous internal and external data systems. These are summarized in attachment D.

System Overview The Corps operates two payrolls on an exception-based nature, determining monthly pay for Active Duty and Retired Officers. The Offeror’s system shall produce timely and accurate pay on a monthly basis for all 6,500+ Active Duty and 6,100+ retired Officers, as well as their Former Spouses and Annuitants. The descriptions below provide a conceptual overview of the key components of the desired payroll solution.

1. Calculation Engine

a. Pay Rules

Officers in the diverse circumstances they may be assigned.

b. Retroactive Processing The Offeror’s solution must support retroactive processing such that transactions may be entered with effective dates prior to the current period, even prior periods in earlier tax years. In this event, the Offeror’s system shall calculate the adjustments to pay. The collection of retroactive overpayments shall be negotiated with the Officer in accordance with Corps policies and procedures, while the disbursement of retroactive underpayments shall be taxed in the current period, in accordance with IRS regulations, specifically those documented in IRS Publication 15, Circular E: Employer's Tax Guide.

c. Future Dated Processing The offered solution must support transactions entered with effective dates in future pay periods, even in subsequent tax years. In this event, the Offeror’s system shall calculate the adjustments to pay when that future period becomes effective.

d. Annual Calculations Once successfully implemented, the offered solution or system must be kept current, both for routine pay table adjustments and for changes to pay calculations as required by the Secretary of HHS or Congress. The offered solution must support annual adjustments to the following tables which inspire calculations to all payees: Basic Allowance for Housing (BAH), Basic Allowance for Subsistence (BAS), Base Pay, Cost of living adjustment and the Veteran's Administration compensation benefits. In addition the solution shall support adjustments to standard amounts for FICA, Thrift Savings Plan, and Taxes.

2. Year End Processing In January of each year, the offeror shall print/mail W-2 statements to each Active Duty Officer and 1099R statements to each Retired Officer, Former Spouse and Annuitant paid in the prior calendar year in accordance with IRS regulations on behalf of the Corps. The offeror shall also prepare and submit W-3 statements to the IRS, and prepare/submit equivalent statements to each State tax office (as required). W2/1099R statements shall be available for viewing, saving and printing to all payees via a web-based self service capability inherent in the solution.

3. Active Duty Transaction Processing The modification of pay is by exception only; the default is to receive the same pay as the previous (monthly) pay period. The likely cause of a pay change is modification to the Officer's data, caused by execution of payroll and personnel transactions. Within a given month, the number of transactions processed currently range from a minimum of 2,500 to twice that amount, possibly more. The offered system shall be structured to support this processing capacity.

Transaction's are categorized by type and belong to four (4) functional areas: Compensation, Personnel, Retirement and System.

a. Active Duty Compensation Vendors shall propose a Web based solution which collects data from source documents summarizing changes to pay. These transactions fall within the following categories, as defined by military payroll rules:

b. Active Duty Personnel Upon receipt of source documents, personnel transactions are entered into the same personnel system which is fully integrated with the payroll system. As many personnel transactions immediately affect pay, vendors shall describe how the offered solution shall integrate personnel transactions with pay rules. Within a given month, the number of personnel transactions processed range from a minimum of 1,500 to twice that amount, and possibly more.

The number of personnel transactions fall within the following categories:

4. Workflow Processing

a. Peer Review Each transaction updates different data elements. The data elements modified in each transaction must be viewed and validated by at least 2 experienced personnel within CB or Division of Commissioned Corps Assignments. Given the volume of data changes and transactions processed each month, the Human Resource Specialists and Payroll Technicians have come to rely on an ordered peer review and approval (workflow) process. Within the workflow, data changed in each transaction undergoes peer review, and possibly approval, before being permanently committed to the database.

b. Personnel Orders For personnel transactions the offered system shall produce an accompanying legal document - a Personnel Order (PO) document - typically fitting on a single sheet of paper which shall be electronically stored on each officer's record within the system. The contents of the PO shall differ from transaction to transaction, reflecting the transaction type, data elements within the transaction and the individual data of that Officer. Each PO shall be finalized and stored only after the transaction has been successfully vetted through the peer review and approval stages. Secure access to personnel orders by users with differing roles is a mandatory requirement of the offered solution.

c. Personnel Order Close Process Each PO shall be finalized and stored only after the transaction has successfully proceeded through the peer review and supervisory approval stages - the PO CLOSE process.

d. Personnel Order Amendment Process From time-to-time new information is received regarding a CLOSED (already committed to the database) transaction, forcing that transaction to be significantly modified, invalidated or run on a different effective date. The vendor shall describe how the offered solution shall support this requirement.

e. Personnel Data – ORACLE/ Direct Access Interface The data modified by transactions that are in CLOSED status are electronically transmitted to the Corps database on a periodic basis.

5. Retirement Processing Each month approximately 15 to 45 officers retire from Active Duty, and then begin to receive pay in accordance with one of three retirement plans: Final Pay, REDUX, or High 36. In addition, officers may retire on temporary or permanent disability, or they may be granted Separation Pay. A retiring officer's pay rate is individually determined through a Retirement Calculator function that utilizes source data and CC business rules to compute the creditable service time. This calculator simultaneously functions as a base pay determinant for officers newly on active duty, who have creditable service to begin receiving pay at the appropriate level. The offered solution shall support both active duty and retirement functions of the Retirement calculator, its rules, processes and reports.

In the months preceding retirement, personnel within the CB begin to identify, gather and store specific information regarding retirement candidates. The process of retirement within the offered system is known as the Retirement Tracking System (RTS). The RTS is an integral function of the pay and personnel system of the Commissioned Corps, and as such a mandatory requirement of the offered solution.

6. Retired Pay Compensation Transactions Pay for the 6,100+ retired officers, annuitants and former spouses is also calculated on an exception only basis in accordance with the rules prescribed in Chapters 71 and 73, Title 10, United States Code. The default is to receive the same pay as the previous (monthly) pay period; however, modifications to pay tables, external compensation or tax tables are often changed. The offered solution shall support the computation of retired pay.

Retiree transactions are categorized by type and belong to seven (7) functional areas: Annuitant, Death, Disability, Former Spouse, Other, Retired Officer and VA/Concurrent Receipt.

7. Monthly Payroll Processing

a. Payroll Calendar Each pay period begins on the 1st day of each calendar month with officers being paid on a 30-day month. Payday for active-duty officers, retired officers, and former spouses is typically the first day of the following month, or the previous workday, if the first day of the month is not a workday. In some years, Active duty officers are paid twice in December; on the 1st and last workday of the month.

For annuitants, payday is the first day of the month, providing that it does not fall on a weekend (Saturday or Sunday). If the first day of the month is not a workday, retired officers, former spouses, and annuitants shall receive their pay on the first workday following the first day of the month.

b. Payroll Master Files Upon completion of payroll, the offered services shall produce several master files containing pay, personnel and benefit data. These master files are known as the XMaster, COMaster and D&L respectively. The offered system shall support the requirements of the Payments and Accounting Team, who are responsible for payroll reconciliation each month. A package of reports shall also be made available to the team.

c. Payroll Data Files Officers may purchase Series I and Series EE Bonds in available denominations through payroll deduction. The offered system shall create a Bond Payment file that can be used to transmit payment information in accordance with the rules of the United States Treasury department.

d. Interface Files/Reporting The existing systems have interfaces to numerous internal and external data systems, including DEERS, 3rd Party, TSP, VA, etc. In addition, data in the offered solution must accept input from and export data to Corps human resource applications. These include the database tables supporting the applicant system, the electronic call to active duty system, the promotion system, the officer evaluation system, and the electronic officer personnel file (eOPF).

8. Data Structures: Initial Load & Updates The database used within the offered system shall be structured to store a myriad of actionable information, including: Admin Codes, Bank Routing Numbers, Bonus Amounts, Common Accounting Numbers, GEO Codes, Special Pays, State Tax Amounts and the like. Several of these tables are updated monthly, including DEERS, etc. Other records are updated on an annual basis, including: Base Pay tables, Base Area for Housing, BAS, Cost of Living Allowance, etc.

The database used within the offered system shall be structured to store a myriad of actionable information, including: Admin Codes, Bank Routing Nos., Bonus Amounts, Common Accounting Numbers, GEO Codes, Special Pays, State Tax Amounts and the like. Several of these tables are updated monthly, including DEERS, etc. Other records are updated on an annual basis, including: Base Pay tables, Base Area for Housing, BAS, Cost of Living Allowance, etc.

9. Audit Given the magnitude of transactions processed by Payroll Technicians and HR Specialists, the offered solution shall support a system-based audit trail. In addition the offeror shall provide technical expertise or facilitate technical resources to support the ongoing Government audit programs as prescribed by FISMA.

a. Audit Trail Each data entry, action and event shall be time-stamped, providing a complete access to a historical audit trail and enabling tracking of input errors.

b. C&A: Security Certification and Security Accreditation As mandated by HHS, all Information Technology systems must undergo an annual Certification and Accreditation (C&A) program, in accordance with NIST SP 800-37, Guide for the Security Certification and Accreditation of Federal Information Systems. The information security program must include periodic testing and evaluation of the effectiveness of information security policies, procedures, practices, and security controls. This testing should be performed with a frequency depending on risk, but no less than annually.

Security certification is a comprehensive assessment of the management, operational, and technical security controls in an information system, made in support of security accreditation, that determines the extent to which the controls are implemented correctly, operating as intended, and producing the desired outcome with respect to meeting the security requirements for the system.

The results of a security certification are used to reassess the risks and update the system security plan, thus providing the factual basis for an authorizing official to render a security accreditation decision. The offeror shall support the Corps in its performance of the Certification and Accreditation of the offered system.

c. Examination SSAE 16 The Government Management Reform Act (GMRA) expanded the CFO Act of 1990 to require the issuance of audited financial statements by HHS and other agencies. Under the HHS plan to implement GMRA, the Corps is required to complete an annual examination of the offered system. The auditors have determined that independent examinations of internal controls shall be completed annually under the guidelines of the American Institute of Certified Public Accountants Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization..

The SSAE 16 shall result in the issuance of reports on controls placed in operation and tests of operating effectiveness in accordance with AU § 324.41 324.57. The period of examination is October 1st of the current year, through June 30th of the following year. The scope of the engagement shall cover all controls and processes required by the Federal Financial Management Improvement Act (FFMIA) criteria and relevant governing agencies, such as Treasury or Office of Management and Budget (OMB), as applicable to SSAE 16 testing procedures, up to and including:

· Elements of Internal Controls

· Systems Development Life Cycle (SDLC)

· General Computer Controls

· Additional General Controls

· Application Controls

· Additional Material As a service provider, AOS must continuously provide documented, reasonable assurance that the offered system has adequate controls and safeguards in place. Results shall be used in the audit of the HHS-wide financial statements and relied upon by other firms in examining operating division financial statements.

10. Reports The offered system shall provide reporting tools and utilities that allow authorized Payroll Technicians and expert users to validate calculations, outputs and payments as they process payroll each month. The reporting tools and utilities shall provide unencumbered access to PHS pay and personnel data, system and individual parameters, transactions, workflow events, calculations and tables, on a 24 by 7 basis throughout the year. Specifically, the following services are required:

a. Ad-hoc Reporting Tool While each payroll calculation is verified by the originator and a reviewer before the final processing of any transaction, variance reports are desired as a method to identify changes in payroll from period to period and to identify the reasons for the changes. The ad hoc reporting utility shall allow expert users to seek and identify errors in payroll processing before the completion of payroll each period. AOS has an obligation to provide accurate results before payroll is released.

The need for ad hoc reporting extends further as well. There are numerous requests for information from management, auditors, one time questions, and report requests resulting from problems identified in reconciliation.

b. Payroll Processing Payroll processing is typically conducted in two stages: a preliminary run is performed mid-month and payroll is finalized at the end of the month. Thus, the CB requires that, at any time in the pay period, a System Administrator or Payroll Supervisor may initiate a process that will lock the payroll of all changes, calculate a draft of final pay and create a set of payroll reports that are available online for detailed review.

Later in the month, the final pay process shall be initiated, allowing the System Administrator or Payroll Supervisor to review the status for all payees, including: all earnings, deductions, taxes and net payments, before initiating final disbursement through the Department of Treasury.

c. Post Payroll Processing The offered solution shall provide a set of reports formatted in accordance with the requirements of the Payments and Accounting Team (PACT) of the Commissioned Corps Systems Branch (CCSB). PACT provides payroll accounting, certification and reporting services for the CCSB. No less than 33 reports are produced post payroll for PACT and downstream clients of the Corps.

d. Accounting for Pay System (AFPS) The offered solution shall also provide a set of master reports formatted in accordance with the requirements of the Financial Management Service (FMS). FMS maintains the Accounting for Pay System (AFPS) interface, which provides Department-wide payroll accounting services for HHS civilian employees and Corps Officers. For the Corps, AFPS is also responsible for:

· Payroll accounting for disbursements, obligations and accruals for personnel costs.

· Collection and disbursement of payroll income taxes and reporting of those items to the Treasury Department, 50 States, the Internal Revenue Service, and the U.S. Department of Labor.

11. System

a. Backup/Replication The offeror shall propose a detailed process and procedure for the restoration of employee and payroll data. Consideration shall be given to system availability and security requirements.

The offeror shall maintain a backup/disaster recovery system that shall also be available as a test system. This system shall be located in a Government facility.

b. Service Redundancy The offeror shall identify which components of its system are redundant, clustered, and single-point-of-failure. We define these terms as:

c. Hosting and Data Ownership The offeror shall provide host environments to allow testing and secure backup of Corps personnel and payroll data. This personnel and payroll data will be the property of the Corps, not the property of the contractor. A disposition plan shall describe how OASH will be protected from a situation in which the offeror is incapable of supporting the payroll service.

The offeror’s personnel shall also ensure that the backup/disaster recovery/test site is kept in monthly or weekly synchronization with the primary system production database. When necessary, the offeror’s operators shall be required to remove the Test Site from operation to enable the disaster recovery site.

12. User Roles, Accounts and Related Functions Within the offered system, access of registered users to system transactions, information views and other user functionality shall be assigned on a role-by-role basis by the System Administrator. Users shall not be limited to any particular role. The offeror shall provide to the government the ability to maintain user accounts (Add, Delete, or Modify functionality) for all registered government users.

a. Liaison Officers Commissioned Corps officers are assigned to a variety of positions throughout HHS and certain non-HHS Federal agencies and programs. The Liaison Officer's role is to serve as the point of contact for assisting and coordinating activities between the Corps and a particular agency or program. The offered solution shall allow Liaison officers to view appropriate data changes, transactions and personnel records of officers assigned to their agency or program.

b. Self Service The offered system shall include a self service module that will allow both Active and Retired Officers significant control of the distribution of their gross pay (W-4, state tax allotments, net check to bank, etc.), and online access to view, print and manage personal information at any time.

C.4 SCOPE OF WORK

This SOW identifies the services that will be required on a Firm Fixed Price (FFP) basis. The Government is contracting for the following payroll services:

· An out-source approach that provides for equipment, configurable COTS software, and production support without the direct involvement of Government personnel.

C.5 REQUIREMENTS

C.5.1 General Requirements C.5.1.A. Implementation Phase Services to be performed will be within the scope of work as described below, including but not limited to:

1. Providing a Project Plan Services to be performed will be within the scope of work as described below, including but not limited to:

· A Project schedule;

· Clarification of the scope and purpose of the proposed project standards;

· Determination of compliance with Corps procedures and policies;

· Identification of commitments to and from all individuals and organizations; and,

· Provides the basis for the estimate of the project's effort, cost and time to implementation.

2. Perform an Analysis of the Requirements including

· A review of existing requirement documentation;

· Conducting interviews with technical, functional, and process experts;

· Deliver a document that includes:

· A detailed account of all pay rules

· A detailed account of all interface specifications

· An account of all roles, responsibilities, and access controls Data migration requirements

· Interaction requirements

· Report requirements

· Leave management requirements

· Personnel order requirements from DCCA – for example, moving instructions, travel instructions, expense reimbursement instructions

· Pay provisions for the Ready Reserve

3. Develop an Application Design including

· A data element dictionary

· A workflow design

· Data migration plan and integrity test procedures

· An implementation plan and integrity test procedures A training plan

· A fail-safe plan should unforeseen problems arise

4. Add the following standard deliverables as prescribed by HHS’s EPLC.

· Functional Requirements Document

· Risk Management Plan

· Change Control Plan

5. Build and configure the solution according to the Application Design

6. Conduct training for all user types according to the training plan

7. Test the solution according to migration and test plans

8. Rollout the application according to the implementation plan

9. Provide post-implementation guidance on supporting the application C.5.1.B. Production and Maintenance Phase Services to be provided during this phase include, but are not limited to:

1. Monthly payroll processing for all eligible active duty, retired, annuitants, and former spouses

2. Supplementary payroll production runs according to existing HHS regulations and policy

3. Timely delivery of interface files or data to support the existing interface methodologies

4. Maintenance of all payroll database tables in accordance with written instructions provided by the Contract Officer's Technical Representative (COTR)

5. Maintenance of all the payroll processing rules in accordance with written instructions provided by the COTR

6. Maintenance of a continuation of operations facility as a backup to the primary site

7. Appropriate updates and technical input to the OMB-required Analysis of Alternatives, Earned Value Management (EVM), annual Operations Analysis and other required documentation such as OMB-300

8. Annual SSAE 16

9. Provide access to other Government Agency or their designated agent for evaluation of business rules and/ or data.

10. Provide to OASH or their designated agent information regarding data structures, algorithms, and other processing activities contained within the Vendor proposed Pay and Personnel application.

11. Update the offered application so that it processes information from the Direct Access Position data rather than information from the Billet Description Number. Direct Access position Data is a superset of the Billet data.

12. Update the offered application to support the movement of Corps HR functions, including, but not limited to position management, recruitment, applicant processing, calls to active duty, promotion boards, and officer evaluations, to the Direct Access application.

C.5.1.B.1 Application Operation The Contractor shall ensure that the Offered system - both online and batch processes - operate in accordance with established production schedules.

C.5.1.B.2 Interfaces The Contractor shall ensure that interfaces between the Offered system and existing internal and external data systems are functioning properly. The Contractor shall assist Government workers to facilitate new interface requirements as they are mandated.

C.5.1.B.3 Application Maintenance It is expected that the Contractor will keep the application current with Corps databases, business processes, and HHS’s minimum standards for web browsers and, with proper notification, be prepared to adapt the application to other industry standards should they be mandated by HHS.

C.5.2 Section 508 Compliance:

All materials developed and disseminated through this contract must meet compliancy standards to be accessible to all and be able to be posted on the website as appropriate. All materials shall be compliant with Section 508 of the Rehabilitation Act of 1973, as amended. The HHS Web Standards that need to be followed can be found at http://www.hhs.gov/web. The Usability Standards can be found at http://www.usability.gov

SECTION D

PACKAGING AND MARKING

D.1 PACKAGING

All deliverables (i.e., reports and documentation) shall be preserved, packaged and packed in accordance with normal commercial practices to meet the packing requirements of the carrier including that which is necessary to prevent deterioration and damages due to hazards of shipping, handling and storing.

D.2. MARKING

Each package/container shall be delivered to the COTR at the address shown at Section G.3, and shall be marked as follows:

(a) Name and Address of Contractor

(b) Contract Number

(c) Description of the item(s) contained therein; and

(d) Consignee's name and address

SECTION E

INSPECTION AND ACCEPTANCE

E. 1 INSPECTION AND ACCEPTANCE

The Contracting Officer Technical Representative (COTR), as a duly authorized representative of the Contracting Officer, shall assume the responsibilities for monitoring the Contractor's performance, evaluating the quality of services provided by the contractor, and performing final inspection and acceptance of all deliverables and services called for by the contract.

All items delivered to the COTR will be deemed to have been approved 30 calendar days after date of delivery, except as otherwise specified in this contract, if written approval or disapproval has not been given within this period.

E.2 FAR 52.252-2 - CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer shall make their full text available. Also, the full text of a clause may be accessed electronically at these addresses: http://www.acqnet.gov/far/.

CLAUSE TITLE

FAR 52.212.4(a) Contract Terms and Conditions—Commercial Items.(MAR 2009)

a) Inspection/Acceptance. The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. If repair/replacement or reperformance will not correct the defects or is not possible, the Government may seek an equitable price reduction or adequate consideration for acceptance of nonconforming supplies or services. The Government must exercise its post-acceptance rights—

SECTION F

DELIVERIES OR PERFORMANCE

F. 1 PERIOD OF PERFORMANCE

The period of performance shall be two months, September 1st, 2011 through October 31st, 2011, for the base with four options of 12 months each.

F.2 PLACE OF PERFORMANCE

Rockville, MD 20857

OR

Tower Building 1101 Wootton Pkwy, Suite 100 Rockville, MD 20852 F.2.B Performance will be conducted at the Contractor’s facility, as required.

F.3 DELIVERABLE SCHEDULE

The Contractor shall provide bi-weekly status reports indicating all activities performed since the last report and progress toward upcoming milestones.

Milestone deliverables shall include:

The Contractor shall provide metrics and reports to document performance of the following tasks:

1. Application Operation

2. Interfaces

3. Application Maintenance

4. Service Delivery

5. Updated System Documentation

6. System Test Results of Software Changes

All text deliverables should be submitted in four (4) hardcopies and a soft copy in Microsoft Word format. Other types of deliverables (spreadsheets, Gantt charts, presentations, etc.) should be submitted in two (2) hardcopies and in a soft copy using other Microsoft Office products (e.g. MS Word, MS Excel, MS PowerPoint, MS Project, etc.).

F.4 DELIVERY REQUIREMENTS

Pick-up and delivery of items under this contract shall be accomplished between the hours of 8:30 a.m. and 5:00 p.m., Monday through Friday unless changed by mutual agreement between the COTR and the Contractor.

When a deliverable due date occurs on a weekend or a Government holiday, the deliverable will be due on the next Government business day, following the holiday or weekend.

F.4.1 GOVERNMENT HOLIDAYS

SECTION G

CONTRACT ADMINISTRATION DATA

G.1 AUTHORITIES OF GOVERNMENT PERSONNEL

Notwithstanding the Contractor’s responsibility for total management during the performance of this contract, the administration of this contract will require maximum coordination between the Government and the Contractor. The following individuals will be the Government’s points of contact during the performance of this contract.

G.2 CONTRACT SPECIALIST RESPONSIBILITY

The Contract Specialist shall perform all contract administration. All communications pertaining to contractual and/or administrative matters shall be addressed to the contract specialist and reference the contract number. The contract specialist may be contacted at:

HHS/Program Support Center Division of Acquisition Management, SAS 5600 Fishers Lane, Room 5-101 Rockville, MD 20857

G.3 CONTRACTING OFFICER RESPONSIBILITY

The Contracting Officer is responsible for the administrative and contractual issues concerning this contract and is the only individual authorized to modify this contract. The Contracting Officer may be contacted at:

HHS/Program Support Center Division of Acquisition Management, SAS 5600 Fishers Lane, Room 5-101 Rockville, MD 20857

G.4 CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (COTR)

RESPONSIBILITY

The COTR will be designated on the authority of the Contracting Officer at the time of contract award to monitor all technical aspects of the contract. The types of actions within the purview of the COTR’s responsibilities are to assure that the Contractor performs the technical requirements of the contract and to notify both the Contractor and the Contracting Officer of any deficiencies observed. A letter of designation shall be issued to both the COTR and the Contractor at the time of contract award setting forth in full the responsibilities and limitations of the COTR.

G.5 TECHNICAL MONITORING

(a) Performance of work under this contract must be subject to the technical direction of the Contracting Officers’ Technical Representative identified above, or a representative designated in writing. The term “technical direction” includes, without limitation, direction to the contractor that directs or redirects the labor effort, shifts the work between work areas or locations, fills in details and otherwise serves to ensure that tasks outlined in the work statement are accomplished satisfactorily.

(b) Technical direction must be within the scope of the specification(s)/work statement.

The Contracting Officers’ Technical Representative does not have authority to issue technical direction that:

(1) Constitutes a change of assignment or additional work outside the specification(s)/statement of work;

(2) Constitutes a change as defined in the clause entitled “Changes”;

(3) In any manner causes an increase or decrease in the contract price, or the time required for contract performance;

(4) Changes any of the terms, conditions, or specification(s)/work statement of the contract;

(5) Interferes with the contractor's right to perform under the terms and conditions of the contract; or

(6) Directs, supervises or otherwise controls the actions of the contractor's employees.

(c) Technical direction may be oral or in writing. The Contracting Officer’s Technical Representative shall confirm oral direction in writing within five work days, with a copy to the Contracting Officer.

(d) The contractor shall proceed promptly with performance resulting from the technical direction issued by the Contracting Officer’s Technical Representative. If, in the opinion of the contractor, any direction of the Contracting Officer’s Technical Representative, or his/her designee, falls within the limitations in (b), above, the contractor shall immediately notify the Contracting Officer no later than the beginning of the next Government work day.

(e) Failure of the contractor and the Contracting Officer to agree that technical direction is within the scope of the contract shall be subject to the terms of the clause entitled “Disputes.”

G.6 INVOICING AND PAYMENT

Each invoice will be billed separately. The invoice should show the type of services provided, quantities and rate and extended costs. One original voucher, complete with all required back-up documentation shall be submitted to the Contract Specialist and addressed to:

HHS/Program Support Center Division of Acquisition Management, SAS 5600 Fishers Lane, Room 5-101 Rockville, MD 20857 ATTN: Joseph Pirrone, Contracting Specialist One copy of the voucher with copies of all required back-up documentation shall be emailed to PSC_EAPPROVAL.CPMT@PSC.HHS.GOV or they may be submitted to:

PSC/FMS/DFO/Commercial Payments Section Parklawn Building, Room 16A-12 5600 Fishers Lane Rockville, Maryland 20857 Contract Number:

The Contractor shall list the COTR name and phone number on the face page of the voucher.

One copy of the voucher shall be sent to the Contracting Officer Technical Representative, who is responsible to complete receiving and approve payment in UFMS (Unified Financial Management System).

All calls concerning contract payments shall be directed to the general helpline for contract payments on (301) 443-6766.

Payment shall be made by the Program Support Center, Financial Management Service.

In addition to the information required by FAR Clause 52.232-25 - Prompt Payment – the following information is also required for submission of a proper voucher:

a. Contractor’s name, voucher number and date;

b. Contract Number;

c. Description, cost and quantity of services/products actually delivered;

d. Date of service;

e. Payment terms;

f. Tax identification number;

g. Other substantiating documentation or information as required by the contract;

h. Signature of an authorized official certifying the voucher to be correct and proper for payment; and

i. COTR’s name and telephone number.

Notwithstanding the requirement to register and update the Central Contractor Registration database, the contractor shall submit its electronic funds transfer information to the address in G.6.above.

SECTION H

SPECIAL CONTRACT REQUIREMENTS

H.1. PRIVACY

The contractor shall perform all work in accordance with Office of Management and Budget (OMB) Circular A-130, Appendix III, "Security of Federal Automated Information Systems," and the HHS AISSP Handbook.

Any contractor who uses a HHS computer or has access to HHS Automated Information Systems (AIS) resources must have at least a National Agency Check and Inquiry Investigation (NACIC) check. Anyone with access to sensitive data (e.g., personnel or payroll data) must have at least a Minimum Background Investigation (MBI) or Background Investigation (BI). HHS, Personnel Security, and Drug Testing Program Division must adjudicate all reports.

The contractor shall submit a completed security clearance package, available from the Project Manager (PM), for each person expected to support the project, to the attention of the PM within five working days of contract award. Any time the contractor adds personnel in support of the Work Order, additional clearance packages must be submitted to the PM within five business days.

At the time the contractor submits the security clearance package(s), the contractor shall identify the type of work the contractor's employee(s) will perform so that HHS can determine the anticipated level of systems involvement. The contractor shall include this information with the security clearance package in narrative. There is no specific form to be used for this submission. Provision of this information will expedite the clearance process. Investigations must be conducted and documented before any individual can have access to HHS computer systems or information.

When any contractor employee completes involvement with the Work Order and will no longer report to the work site, s/he is required to fill out a contractor exit form. This form can be obtained from the PM and must be returned to the PM, along with all assigned access cards and/or keys, on the contractor employee's final day at the work site. The Offeror must acknowledge, in writing, its understanding of the security requirements detailed in this Statement of Work.

H2. SECURITY

HHS-Controlled Facilities and Information Systems Security:

(a) To perform the work specified herein, Contractor personnel are expected to have routine (1) physical access to an HHS-controlled facility; (2) logical access to an HHS-controlled information system; (3) access to sensitive HHS data or information, whether in an HHS-controlled information system or in hard copy; or(4) any combination of circumstances (1) through (3).

(b) To gain routine physical access to an HHS facility, logical access to an HHS-controlled information system, and/or access to sensitive data or information, the Contractor and its employees shall comply with Homeland Security Presidential Directive (HSPD)-12, Policy for a Common Identification Standard for Federal Employees and Contractors; Office of Management and Budget memorandum (M- 05-24); and Federal Information Processing Standards Publication (FIPS PUB) Number 201; and with the personal identity verification and investigation procedures contained in the following documents:

(1) HHS Information Security Program Policy.

(2) HHS Office of Security and Drug Testing, Personnel Security/Suitability Handbook, dated February 1, 2005.

(3) HHS HSPD-12 Policy Document, v. 2.0.

(c) This contract/order will entail the following position sensitivity level(s): Level 5 MBI\BI.

The Government reserves the right to increase the position sensitivity level(s), as required.

(d) The personnel investigation procedures for Contractor personnel require that the Contractor prepare and submit background check/investigation forms based on the type of investigation required. The minimum Government investigation for a non-sensitive position is a National Agency Check and Inquiries (NACI) with fingerprinting. More restricted positions--i.e., those above non-sensitive, require more extensive documentation and investigation. As part of its proposal, and if the anticipated position sensitivity levels are specified in paragraph (c) above, the Offeror shall notify the Contracting Officer of (1) its proposed personnel who will be subject to a background check/investigation and (2) whether any of its proposed personnel who will work under the contract have previously been the subject of national agency checks or background investigations.

(e) Investigations are expensive and may delay performance, regardless of the outcome of the investigation. Delays associated with rejections and consequent reinvestigations may not be excusable in accordance with the FAR clause,…