RFP 11-233-SOL-00050

11-233-SOL-00050

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

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C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

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M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

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SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

12. In compliance with the above, the undersigned agrees, if this offer is accepted within ______________ calendar days (60 calendar days unless a different period is inserted

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

X

DAM

DHHS/PSC/SAS/DAM

Parklawn Building, Room 5C-18 5600 Fishers Lane Rockville MD 20857

1700 ET

JUAN ( BAEZ 301

Juan.Baez@psc.hhs.gov

443-2367

PAGE(S)

DONALD S. HADRICK

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

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CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

11-233-SOL-00050

(A) (B) (C) (D) (E) (F)

Pay and Personnel Services for The Commissioned Corps

The Program Support Center (PSC), a Federal fee-for-service agency, is seeking a contract to be awarded on a firm-fixed-price (FFP) basis to one contractor to provide Pay and Personnel Services for The Commissioned Corps of the U.S. Public

Health Service (Corps) for The Department of Health and Human Services.

The period of performance will be a base year of twelve (12) months and four (4) twelve (12) month options.

NAICS: 541215

Cost Range: $5,000,000 to $10,000,000

For any questions regarding this solicitation, please contact Juan D. Baez, Contracting Officer, at 301-443-2367 or juan.baez@psc.gov.

Pay and Personnel Services for The Commissioned Corps

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

PART I - THE SCHEDULE

SECTION B

SERVICES AND PRICE/COST

B.1. Brief Description of Services

The Program Support Center (PSC), a Federal fee-for-service agency, is seeking a Contract for Pay and Personnel services for The Commissioned Corps of the U.S. Public Health Service (Corps).

B.2 Type of Contract

A. This solicitation will result in a single award contract.

B. The maximum amount that can be awarded over the term of this TOC, including options, is $12.5 million.

Base Year (12 Months from Date of Award): $2.5 Million Option Year 1 (12 Months from Date of Award): $2.5 Million

Option Year 2 (12 Months from Date of Award): $2.5 Million Option Year 3 (12 Months from Date of Award): $2.5 Million Option Year 4 (12 Months from Date of Award): $2.5 Million

C. The minimum amount to be awarded under the term of this TOC, including options, is approximately $1,000,000.00 and will be funded in the base year.

D. The task/delivery orders issued under this will be Firm-Fixed Price. However, the Government reserves the right to award a different contract type.

B.3 Option Period

A. At the unilateral option of the Program Support Center (PSC), Department of Health and Human Services, this contract may be modified by the Contracting Officer giving written notice of the PSC’s intent to exercise an option period or phase. Such notice shall be issued not later than sixty (60) days prior to the expiration date of the contract (this notice shall not be construed as an exercise of an option period/phase, and would not bind PSC to exercise the option period/phase).

B. The Program Support Center and the Contractor hereby agree that upon issuance of a contract modification to exercise an option period, revisions can be made to the contract schedule.

B.4 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 twelve (12) 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:

1. The purpose of this Statement of Work (SOW) is to establish a contract for The Department of Health and Human Services (DHHS). DHHS requires that it be provided Pay and Personnel services for The Commissioned Corps of the U.S. Public Health Service (Corps).

2. In general, it is expected the Contractor shall provide pay and personnel maintenance services that supports the active duty and retired Corps Officers. The pay and personnel maintenance services must be able to handle the collection of source documents, determination of all pay categories, gross-to-net calculations, and interface with all the various internal and external systems required to ensure the accurate disbursement of funds, meet all reporting needs and maintenance of all related IT systems. Once successfully implemented, the system needs to be kept current: both for routine pay table adjustments and for changes to pay calculations as mandated by the Secretary of HHS or Congress. The vendor is expected to draw on their established methods, best business practices, and Government/industry experience.

The contract will be a Firm-Fixed Priced type for one (1) year with a four (4) renewable option years.

C.3 BACKGROUND

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). Commissioned Corps Systems Branch (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 officer HR data not tied to pay and benefits. It is maintained for the benefit of the Corps by the United States Coast Guard. The OASH, Coast Guard and OMB are committed to migrating positions, the recruitment system, the applicant system, 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 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). 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. These 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 (Le. 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 A.

The descriptions below provide a conceptual overview of the key components of the current payroll solution.

1. Calculation Engine

a. Pay Rules

i. The CCP payroll engine supports the Corps pay rules including, its payee classes, wage tables, source to net calculations and post tax computations.

In accordance with Congressional and Secretarial mandates, rules may be added, removed or amended to fit changing criteria within the Corps.

ii. Pay rules work in conjunction with the payroll and personnel transactions needed by the Payroll Technicians and Human Resources Specialists who process changes to selected Officer's pay.

iii. Pay rules support all Special Pays as applied to the various categories of Officers in the diverse circumstances they may be assigned.

b. Retroactive Processing

The CCP system supports 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 CCP system calculates 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 CCP system supports transactions entered with effective dates in future pay periods, even in subsequent tax years. In this event, the CCP system calculates the adjustments to pay when that future period becomes effective.

d. Annual Calculations

The CCP 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 CCP system supports 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 CCP supports adjustments to standard amounts for FICA, Thrift Savings Plan, and Taxes.

2. Year End Processing In January of each year, CCP prints/mails 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. CCP also prepares and submits W-3 statements to the IRS, and prepares/submits equivalent statements to each State tax office (as required).

W2/1099R statements are available for viewing, saving and printing to all payees via a web-based self service capability inherent in CCP.

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

CCP collects data from source documents summarizing changes to pay.

These transactions fall within the following categories, as defined by military payroll rules:

i. Administrative - One-time payment, Payroll Address Change, etc.

ii. Entitlements - Lump Sum Leave, Quarters Allowance, etc.

iii. Deductions - Bonds, Charity Allotment, Federal/State taxes, garnishments, etc.

iv. Benefits - Insurance Allotment, Life Insurance, Thrift Savings Plan, etc.

v. Retirement - Retire an Active Duty Officer, Start/Stop retirement pay, Annuity setup, former spouse setup, etc.

vi. Special Pays - Accession Bonus, Dental Special Pay, Medical Special Pay, etc.

b. Active Duty Personnel

Upon receipt of source documents, personnel transactions are entered into the same personnel system which is fully integrated with the CCP payroll system. 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:

i. CAD - Call to Active Duty, Assimilation into Regular

Corps, etc.

ii. Transfer - from/to Billet, Program and/or Station, etc.

iii. Grade Change - Permanent or Temporary Promotion or Reversion

iv. Separation - Death, Inactivation or Termination

v. Miscellaneous - Address Change, Permissive Order, etc.

vi. Other - Assimilation into Regular Corps, Statement of Service, etc.

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 CCP system produces an accompanying legal document - a Personnel Order (PO) document - typically fitting on a single sheet of paper, which is then electronically stored on each officer's record within the system. The contents of the PO differs 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 CCP system.

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.

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 determinator for officers newly on active duty, who have creditable service to begin receiving pay at the appropriate level. The CCP system supports 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 component of the CCP system.

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 CCP system supports 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 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 retired officers, former spouses, and 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 CCP system produces several master files containing pay, personnel and benefit data. These master files are known as the XMaster, COMaster and D&L respectively. The CCP system supports the requirements of the Payments and Accounting Team, who are responsible for payroll reconciliation each month. A package of reports is made available to the team.

c. 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 CCP system accepts input from and exports 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 CCP system is 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 CCP system supports a system-based audit trail. In addition the contractor will 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 is 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 contractor will support the Corps in its performance of the Certification and Accreditation of the CCP system.

c. SAS-70 Type II Examination

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 CCP 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 of Auditing Standards (SAS) Number 70, Reports on the Processing of Transactions by Service Organizations. The annual examination is a "Type 2" report providing an opinion on the internal controls placed in operation and includes tests of operating effectiveness.

The SAS 70 examination 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 SAS 70 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 CCP 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 CCP system shall continue to 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 allows 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 is 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 CCP system provides a set of reports formatted in accordance with the requirements of the Payments and Accounting Team (PACT) of the 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 CCP system also provides 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 contractor shall continue to maintain and update the Government located COLD/HOT(test) site system for the restoration of employee and payroll data. Consideration shall be given to system availability and security requirements.

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

i. Redundant - failure of this unit will cause no loss of service or performance

ii. Clustered - these items share the full load. When failure to one item occurs; the system shall continue operating with the remaining units, but at a reduced performance level.

iii. Single-point-of-failure - means discontinuation of service and potential activation if this item fails

c. Hosting and Data Ownership

The personnel and payroll data contained within the CCP system will be the property of the Corps, not the property of the contractor. A disposition plan shall describe how PHS will be protected from a situation in which the offeror is incapable of supporting the CCP service.

PHS personnel shall also ensure that the PHS COLD/HOT(Test) Site is kept in monthly synchronization with the primary CCP production database. When necessary, the PHS operators shall be required to remove the Test Site from operation to enable the Cold Site.

12. User Roles, Accounts and Related Functions Within the CCP 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 contractor 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 CCP system allows Liaison officers to view appropriate data changes, transactions and personnel records of officers assigned to their agency or program.

b. Leave Processing Leave accounting and management of leave shall be maintained by OASH outside of the CCP system.

c. Self Service The CCP system includes a self service module that allows 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:

a. 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

The services to be provided to the government shall be the following:

1. Production and Maintenance Phase Services to be performed will be within the scope of work as described below, including but 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 Sas-70 Type II Examination

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

10. Provide to PHS or their designated agent information regarding data structures, algorithms, and other processing activities contained within the CCP application.

11. Update the CCP 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.

2. Application Operation The Contractor shall ensure that the CCP system - both online and batch processes - operate in accordance with established production schedules.

3. Interfaces The Contractor shall ensure that interfaces between the CCP 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.

4. 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.6 QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

The Government intends to utilize a Quality Assurance Surveillance Plan (QASP) to monitor the quality of the Contractor’s performance. The oversight provided for in the task order and in the QASP will help to ensure that service levels reach and maintain the required levels throughout the contract term. Further, the QASP provides the Contracting Officer Technical Representative with a proactive way to avoid unacceptable or deficient performance, and provides verifiable input for the required Past Performance Information Assessments. The QASP will be developed by the Government in conjunction with the performance work statement. It will be finalized upon award and a copy provided to the Contractor after award. The QASP is a living document and may be updated by the Government as necessary.

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.1.3, 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.

Inspection and acceptance of the Contractor‘s performance will be in accordance with FAR clause 52.246-02, Inspection of Supplies – Firm Fixed Price and 52.246-4, Inspection of Services-Fixed Price .∥. If a different task order type is issued the task order will incorporate the appropriate ―Inspection and Acceptance∥ FAR clause (See FAR clause 52.252-4, ―Alterations in 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 TOC and awarded task orders, 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 52.246-05

Inspection of Services – Firm Fixed Price (AUG 1996)

SECTION F

DELIVERIES OR PERFORMANCE

F. 1 PERIOD OF PERFORMANCE

The period of performance shall be twelve-months (12) from the effective date of the contract, with four (4), twelve-month (12) option periods. The exact dates will be provided at time of contract award.

F.2 PLACE OF PERFORMANCE

All meetings, requirements gathering, presentations, beta testing, etc. will be conducted at one of two following Government locations as determined by the COTR:

Parklawn Building 5600 Fishers Lane Rockville, MD 20857

OR

Tower Building 1101 Wootton Pkwy, Suite 100 Rockville, MD 20852

F.3 DELIVERABLE SCHEDULE

The Contractor shall provide Table B-4 pricing rates filled out for the Base year and each of the four Option periods. An Example of Table B-4 is included in this Statement of Work and reflects the charges in effect for Option period 4 of the current contract.

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

7. Disposition Plan – this will ensure we are planning for the potential to change contractors at some point in the future and is part of the HHS CPIC guidance.

What happens at the end of the contract? Do we own the data? Can we buy the system outright? Are there funds for disposition?

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

1. New Year’s Day January 1

2. Martin Luther King’s Birthday Third Monday in January

3. Inauguration Day January 2013 (exact day To Be Determined)

4. President’s Day Third Monday in February

5. Memorial Day Last Monday in May

6. Independence Day July 4

7. Labor Day First Monday in September

8. Columbus Day Second Monday October

9. Veteran’s Day November 11

10. Thanksgiving Day Fourth Thursday November

11. Christmas Day December 25

F.5 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/ and http://www.hhs.gov/oamp/policies/hssar.doc.

CLAUSE TITLE

FAR 52.242-15 Stop-Work Order. (Aug 1989)

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.

Forward one (1) copy to the COTR. Upon receipt and approval of the invoice by the Project Officer, the Project Officer shall

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.5 INVOICING AND PAYMENT

Each task order will be billed separately. The invoice should show the type of equipment serviced, 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 : Juan D. Baez, Contracting Officer

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.2.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…