16PBGC-19-R-0028_-_PIMS_Modernization_-_Final.pdf

RFQ IFB RFP

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

1. REQUISITION NUMBER PAGE OF

2. CONTRACT NO. 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE

DATE

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME b. TELEPHONE NUMBER (No collect calls)

8. OFFER DUE DATE/

LOCAL TIME

9. ISSUED BY

13b. RATING

14. METHOD OF SOLICITATION

CODE

15. DELIVER TO 16. ADMINISTERED BY CODE

18a. PAYMENT WILL BE MADE BY CODEFACILITY

CODE

CODE

TELEPHONE NO.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK

BELOW IS CHECKED

SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

29. AWARD OF CONTRACT: REF.

DATED . YOUR OFFER ON SOLICITATION

(BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

31b. NAME OF CONTRACTING OFFICER (Type or print) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

OFFER

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

ARE ARE NOT ATTACHED

ARE ARE NOT ATTACHED

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

17a CONTRACTOR/

OFFEROR.

CODE

8 (A)

SIZE STANDARD:

NAICS:

% FOR:SET ASIDE:UNRESTRICTED OR

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SMALL BUSINESS

10. THIS ACQUISITION IS

EDWOSB

SMALL BUSINESS PROGRAM

STANDARD FORM 1449 (REV. 2/2012) BACK

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32c. DATE

41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE

42a. RECEIVED BY (Print)

42b. RECEIVED AT (Location)

42c. DATE REC'D (YY/MM/DD) 42d. TOTAL CONTAINERS

40. PAID BY

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELPHONE NUMBER OF AUTHORZED GOVERNMENT REPRESENTATIVE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

33. SHIP NUMBER 34. VOUCHER NUMBER 35. AMOUNT VERIFIED

CORRECT FOR

PARTIAL FINAL

37. CHECK NUMBER

38. S/R ACCOUNT NO. 39. S/R VOUCHER NUMBER

36. PAYMENT

COMPLETE PARTIAL FINAL

SCHEDULE Continued

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

The item(s) below are used for PBGC internal funding purposes only. The official Contract Line Item Number (CLIN) schedule follows in the attached Pricing Schedule. The Contractor shall invoice in accordance with the Pricing Schedule and PBGC Clause 52.232-7000 Submission of Invoices (Fixed Price), PBGC Clause 52.232-7001 Submission of Invoices (Time and Materials and Labor-Hour), and PBGC 52.232-7006 Submission of Invoices/Vouchers - IPP

(OCT 2018).

0001 The Contractor shall provide a comprehensive plan that improves the underlying Pension Insurance Modeling System (PIMS) technology.

PR NUMBER: RQ-32-19-000014

Period of Performance: 09/30/2019 to 09/29/2020

1.00 EA

PAGE 3 OF 86 16PBGC19R0028

Table of Contents

SECTION B SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Price Schedule

SECTION C DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1 Statement of Objectives

SECTION D PACKAGING AND MARKING

D.1 PBGC 52.247-7000 PACKAGING AND MARKING (JAN 2012)

SECTION E INSPECTION AND ACCEPTANCE

E.1 52.246-4 INSPECTION OF SERVICES--FIXED-PRICE (AUG 1996)

E.2 52.246-6 INSPECTION--TIME-AND-MATERIAL AND LABOR-HOUR (MAR 2001)

E.3 PBGC 52.246-7000 INSPECTION AND ACCEPTANCE OF DELIVERABLES (JAN 2012)

SECTION G CONTRACT ADMINISTRATION DATA

G.1 PBGC 52.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE (JAN 2012)

G.2 PBGC 52.232-7000 SUBMISSION OF INVOICES (FIXED-PRICE) (SEPT 2017)

G.3 PBGC 52.232-7001SUBMISSION OF INVOICES (TIME AND MATERIAL AND LABOR-HOURS) (SEPT 2017)

G.4 PBGC 52.232-7006SUBMISSION OF INVOICES/VOUCHERS - IPP (OCT 2018)

G.5 PBGC 52.237-7008 OBSERVANCE OF LEGAL HOLIDAYS (OCT 2018)

SECTION H SPECIAL CONTRACT REQUIREMENTS

H.1 52.227-14 RIGHTS IN DATA--GENERAL (MAY 2014)

H.2 PBGC 52.204-7000 RECORDS MANAGEMENT (SEP 2017)

H.3 PBGC 52.209-7001 ORGANIZATIONAL CONFLICTS OF INTEREST (AUG 2017)

H.4 PBGC 52.209-7002 HANDLING PBGC DATA (MAY 2017)

H.5 PBGC 52.231-7000 OTHER DIRECT COSTS (MAY 2012)

H.6 PBGC 52.237-7000 KEY PERSONNEL (APR 2018)

H.7 PBGC 52.237-7002 FITNESS DETERMINATION (APR 2019)

H.8 PBGC 52.237-7005 INFORMATION SECURITY TRAINING (MAR 2016)

H.9 PBGC 52.237-7006 PROFESSIONAL ATTIRE (OCT 2018)

H.10 PBGC 52.237-7007 DISPLAY OF PBGC IDENTIFICATION BADGES (FEB 2013)

H.11 PBGC 52.239-7000 SECTION 508 ACCESSIBILITY STANDARDS (MAR 2016)

H.12 PBGC 52.239-7003 CLOUD COMPUTING REPRESENTATION (APR 2016)

H.13 PBGC 52.239-7004 CLOUD MANAGED SERVICES (APR 2016)

H.14 PBGC 52.239-7006INFORMATION TECHNOLOGY MANAGEMENT (AUG 2018)

H.15 PBGC 52.242-7000 POSTAWARD CONFERENCE (MAR 2016)

SECTION I CONTRACT CLAUSES

I.1 52.204-9 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL (JAN 2011)

I.2 52.215-1 INSTRUCTIONS TO OFFERORS--COMPETITIVE ACQUISITION (JAN 2017)

I.3 52.215-8 ORDER OF PRECEDENCE--UNIFORM CONTRACT FORMAT (OCT 1997)

I.4 52.224-1 PRIVACY ACT NOTIFICATION (APR 1984)

I.5 52.224-2 PRIVACY ACT (APR 1984)

I.6 52.233-3 PROTEST AFTER AWARD (AUG 1996)

I.7 52.239-1 PRIVACY OR SECURITY SAFEGUARDS (AUG 1996)

I.8 52.242-15 STOP-WORK ORDER (AUG 1989)

I.9 52.246-25 LIMITATION OF LIABILITY--SERVICES (FEB 1997)

I.10 52.212-1 INSTRUCTIONS TO OFFERORS--COMMERCIAL ITEMS (OCT 2018)

I.11 52.212-4 CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS (OCT 2018)

I.12 52.212-4 I CONTRACT TERMS AND CONDITIONS--COMMERCIAL ITEMS (OCT 2018)--ALTERNATE I (JAN 2017).52

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Table of Contents

I.13 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS--

COMMERCIAL ITEMS (MAY 2019)

I.14 52.216-1 TYPE OF CONTRACT (APR 1984)

I.15 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

I.16 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

I.17 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

I.18 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

SECTION J LIST OF ATTACHMENTS

J.1 List of Attachments

SECTION K REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

K.1 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS--COMMERCIAL ITEMS (OCT 2018)

SECTION L INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

L.1 Instructions to Offerors

SECTION M EVALUATION FACTORS FOR AWARD

M.1 Evaluation Criteria

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SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Price Schedule

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Section B – Price Schedule

1. GENERAL DESCRIPTION

The Contractor shall provide a comprehensive plan that identifies potential improvements to PBGC’s existing approach and identifies how to best to update the underlying Pension

Insurance Modeling System (PIMS) technology. The Contractor shall provide a system architecture and all programming specifications needed to support the single-employer

PIMS modernization effort.

2. PLACE OF PERFORMANCE

The Contractor shall perform the services outlined in the Statement of Objectives (SOO) at the Government work site at 1200 K Street NW Washington, D.C. 20005 and the

Contractor site, as required.

3. BASE AND OPTION PERIOD PRICE SCHEDULE

Base Period: The Offeror shall provide the labor categories it deems necessary to complete the objectives contained within the Statement of Objectives (SOO). The Offeror is not restricted to the number of Contract Line Item Number (CLIN)s listed below, and may propose fewer, the same, or more labor categories (i.e. CLINs). The Offeror shall provide a

Firm Fixed Price (FFP) for each labor category and shall provide the labor breakdown for each labor category in its price proposal. Please note that the FPP CLINs for the Base Period shall include any anticipated travel or training.

Base Period: September 30, 2019 – September 29, 2020

Firm Fixed Price

CLIN Description Unit Unit

Quantity

Unit Price Total Price

0001 Labor Category A – As

Proposed by the Offeror

Months 12

0002 Labor Category B – As

Proposed by the Offeror

Months 12

0003 Labor Category C – As

Proposed by the Offeror

Months 12

0004 Labor Category D – As

Proposed by the Offeror

Months 12

0005 Labor Category E – As

Proposed by the Offeror

Months 12

Total Base Period Price:

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Option Periods 1-4: The Offeror shall provide the labor categories it deems necessary to complete the objectives contained within the Statement of Objectives (SOO). The Offeror is not restricted to the number of Contract Line Item Number (CLIN)s listed below, and may propose fewer, the same, or more labor categories (i.e. CLINs). The Offeror shall provide the number of hours and fixed hourly rates (i.e. Labor Hour (LH) price) for each labor category and shall provide the labor breakdown for each labor category in its price proposal. The hours proposed for each Option Period will serve as the ceiling for that respective Option Period.

Option Period 1: September 30, 2020 – September 29, 2021

Labor Hour

CLIN Description Unit Unit

Quantity

Unit Price Total Price

1001 Labor Category A – As

Proposed by the Offeror

Hours

1002 Labor Category B – As

Proposed by the Offeror

Hours

1003 Labor Category C – As

Proposed by the Offeror

Hours

1004 Labor Category D – As

Proposed by the Offeror

Hours

1005 Labor Category E – As

Proposed by the Offeror

Hours

Total Option Period 1 Ceiling:

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Option Period 2: September 30, 2021 – September 29, 2022

Labor Hour

CLIN Description Unit Unit

Quantity

Unit Price Total Price

2001 Labor Category A – As

Proposed by the Offeror

Hours

2002 Labor Category B – As

Proposed by the Offeror

Hours

2003 Labor Category C – As

Proposed by the Offeror

Hours

2004 Labor Category D – As

Proposed by the Offeror

Hours

2005 Labor Category E – As

Proposed by the Offeror

Total Option Period 2 Ceiling:

Option Period 3: September 30, 2022 – September 29, 2023

Labor Hour

CLIN Description Unit Unit

Quantity

Unit Price Total Price

3001 Labor Category A – As

Proposed by the Offeror

Hours

3002 Labor Category B – As

Proposed by the Offeror

Hours

3003 Labor Category C – As

Proposed by the Offeror

Hours

3004 Labor Category D – As

Proposed by the Offeror

Hours

3005 Labor Category E – As

Proposed by the Offeror

Total Option Period 3 Ceiling:

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Option Period 4: September 30, 2023 – September 29, 2024

Labor Hour

CLIN Description Unit Unit

Quantity

Unit Price Total Price

4001 Labor Category A – As

Proposed by the Offeror

Hours

4002 Labor Category B – As

Proposed by the Offeror

Hours

4003 Labor Category C – As

Proposed by the Offeror

Hours

4004 Labor Category D – As

Proposed by the Offeror

Hours

4005 Labor Category E – As

Proposed by the Offeror

Total Option Period 4 Ceiling:

Total Base Period Price (Firm-Fixed Price): _____________________________

Total Option Periods 1-4 Ceiling (Labor Hour): _____________________________

Total Base and Option Periods 1-4 Price: _______________________________

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SECTION C

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

C.1 Statement of Objectives

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SECTION C - STATEMENT OF OBJECTIVES

FOR

PBGC PENSION INSURANCE MODELING SYSTEM (PIMS) MODERNIZATION

1. PURPOSE

This Request for Proposal is a result of the previously published Request for Information (RFI)

16PBGC-19-R-0022. The purpose of this procurement is to seek the services of a contractor to provide an overall, comprehensive plan (blueprint/roadmap) that identifies both potential improvements to PBGC’s existing approach and how best to update the underlying Pension

Insurance Modeling System (PIMS) technology. It is the Pension Benefit Guaranty Corporation

(PBGC)’s intent to acquire a system architecture and all programming specifications needed to support the single-employer PIMS modernization effort.

2. SCOPE OR MISSION

2.1 The PBGC protects the retirement incomes of nearly 37 million American workers in more than 25,000 private sector defined benefit pension plans. A defined benefit plan provides a specified· monthly benefit at retirement, often based on a combination of salary and years of service.

PBGC pays for monthly retirement benefits, up to a guaranteed maximum, for nearly 861,000 retirees in over 4,900 single-employer pension plans that cannot pay promised benefits. Including those who have not yet retired and participants in multiemployer plans receiving financial assistance, PBGC is responsible for the current and future pensions of about 1.5 million people.

2.2 The Policy, Research and Analysis Department (PRAD) is responsible for producing PBGC’s

Projections Report annually. The Projections Report is PBGC's annual actuarial evaluation of its future operations and financial status. The numbers in the report are produced by PRAD’s pension plan modeling system known as PIMS. PIMS provides a range of estimates of the future status of insured pension plans and their effect on PBGC's financial condition, based on hundreds of different economic scenarios. PIMS models both the single-employer and multiemployer defined benefit pension plan universe.

2.3 The scope of this contract is to acquire a system architecture to support the single-employer

PIMS modernization effort. The architecture should be considered a new system. This contract shall provide a blueprint for the implementation of and include all necessary information for the development of the new model. The proposed system architecture should include all documentation and work products pertaining to the architectural, logical, and physical designs of the system, as well as all programming specifications necessary to implement the model. While this contract will only cover the single-employer PIMS modernization effort, consideration should be given to the multiemployer defined benefit plans and how new single-employer PIMS architecture can be applied to the multiemployer plan universe.

PBGC envisions two phases for this project. The purpose of Phase 1, which is the purpose of this

SOO, is to find the optimal partner who will work closely with PBGC’s Policy, Research, and

Analysis Department (PRAD) staff to deliver the following:

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a) A blueprint that provides a complete documentation of the modernized PIMS that can be readily translated into a new technological tool.

b) The scope of Phase 1 also includes a review of the existing methodologies (including those used to determine the related pension, economic, and bankruptcy calculations) with recommendations for improvement.

c) The final part of Phase 1 includes the development of a vision for the technology of the updated tool. Knowing the vision for the tool in terms of platform, programming language, and data management may influence the adoption of certain approaches.

The purpose of Phase 2 is to implement the results of Phase 1: the development of the new tool.

Phase 2 will be solicited as a separate requirement. For any perceived conflict of interest of Phase

2, Contractors shall follow the procedures in FAR 9.503 (waiver) and request a waiver from the

PBGC Procurement Department during the solicitation of the Phase 2 requirement.

3. PERIOD AND PLACE OF PERFORMANCE

3.1 The contract period of performance after award is one (1) Base Period of twelve (12) months and four (4) Option Periods of twelve (12) months each. The single-employer

PIMS modernization blueprint shall be completed in-full during the Base Period of the resultant contract. The purpose of the Option Periods is to support the next phase of the

PIMS modernization effort, if necessary. The Option Periods will be necessary only if the contractor in the second build-out phase is different from the contractor in the blueprint phase. The PIMS modernization blueprint may be completed in fewer than the

12 months allotted to the Base Period, which in case the first Option Period may be exercised earlier than anticipated.

3.2 The work will be performed at both the contractor and government work sites, as required.

PBGC expects that the work will primarily be completed at the contractor work site.

3.3 PBGC will only reimburse the Contractor for travel expenses approved in advance and in writing by the Contracting Officer Representative (COR), in accordance with Federal travel regulations as they pertain to contractors. Travel expenses will be reimbursed for the Option

Periods of the contract and should be built into the firm fixed price of the base period.

4. BACKGROUND

4.1 The PBGC was established to develop and administer the pension plan insurance programs as provided in Title IV of the Employee Retirement Income Security Act (ERISA) of 1974. PBGC’s mission is primarily: 1) to encourage the continuation and maintenance of voluntary private pension plans for the benefit of their participants, 2) to provide for the timely and uninterrupted payment of pension benefits to participants and beneficiaries under plans to which Title IV applies, and 3) to maintain PBGC insurance premiums at the lowest level consistent with carrying out its obligations under Title IV.

4.2 ERISA established two insurance programs to be administered by PBGC. The single-employer program covers private sector defined benefit plans maintained by one employer, regardless of whether the pension plan is collectively bargained. The multiemployer program

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covers private sector defined benefit pension plans that are collectively bargained and cover the employees of two or more unrelated employers. The two insurance programs differ significantly in the level of benefits guaranteed, the insurable event, premium structure and rates, the mechanisms for delivering guaranteed benefits, and PBGC’s authorities and roles with respect to ongoing and terminated plans. By law, each insurance program is operated and financed separately from the other, and assets from one cannot be used to support the other.

4.2.1 The single-employer program is by far the larger of the two programs, insuring about 26 million workers and retirees covered by nearly 23,000 plans. This program guarantees payment of benefits, subject to limits set by law. If an insured plan terminates without enough assets to pay all accrued benefits, then PBGC trustees the plan, takes the plan’s assets, and assumes the responsibility to pay plan participants.

4.2.1.1 Single-Employer PIMS – PBGC began development of the PIMS for the single-employer insurance program (SE PIMS) in 1992. The initial version went into production in 1997. SE

PIMS is a stochastic (i.e., random) simulation model that PBGC uses to evaluate its exposure and the likelihood of future claims and to quantify the amount of risk facing the single-employer insurance program. SE PIMS portrays PBGC’s future financial condition as a function of a variety of economic parameters. For further discussion, please see the https://www.pbgc.gov/about/projections-report/pension-insurance-modeling-system at PBGC.gov. SE PIMS currently has over 55,000 lines of computer code written in C++ programming language and is currently run under Windows 10. The input database for the model includes significant details on a sample of about 500 pension plans, key financial variables from approximately 400 companies that sponsor those pension plans, details on the PBGC's current assets and benefit payment obligations, and recent history of key financial market returns.

Pension plan and actuarial data are taken from the Form 5500, the related Schedule SB (MB for

Multiemployer PIMS, see below) and attachments, and includes benefit formulae, age-service matrices of active workers, numbers of retirees, benefit payouts, actuarial assumptions, and schedules of amortization bases.

Significant PIMS documentation, including reports, sensitivity analyses, history, peer reviews, and third party research using PIMS is available on the PBGC PIMS website at https://www.pbgc.gov/about/projections-report/pension-insurance-modeling-system.

Additionally, the following documents are included for reference:

1. FY2019 PIMS Data Entry Manual

2. SE PIMS System Description

The program simulates thousands of random scenarios of potential future outcomes using a pseudo random number generator and measures of the volatility of key variables and the correlation among them. The scenarios projected in the simulation extend up to 20 years into the future. In each year of a scenario, the program simulates:

1. Annual returns of stock and bond market indices; changes to the financial variables of each plan sponsor.

2. Changes in each pension plan's liabilities reflecting advancements in age and service, as well as retirements and other employment separations, hiring and retirement rates consistent with

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changes to the sponsors' total employment levels, advances in ages and mortality rates among the retired population, benefit and/or salary level increases, and changes to valuation discount rates.

3. Changes in the asset level of each plan, including asset returns determined by the plans' target portfolio and the related simulated market returns, benefit payments to retired participants, and contributions from the plan sponsor that meet the requirements of the Internal Revenue Code’s pension funding rules.

4. Random occurrences of bankruptcy among the pension plan sponsors, with bankruptcy probabilities being determined by each firm's financial variables, and calculation of whether the funding levels of plans sponsored by bankrupt firms are likely to result in a claim on the

PBGC insurance fund.

5. Changes in PBGC assets and liabilities that reflect premium revenues from plan sponsors, benefit payments to beneficiaries of trusteed plans, asset returns and changes to liability discount rates, age advancement and mortality among beneficiaries, and new claims presented by the termination of underfunded plans of bankrupt firms.

The program stores outputs of the key variables related to pension funding and PBGC assets and liabilities. The output is analyzed by the PBGC to develop probability distributions over the range of financial outcomes the PBGC could experience in the future.

The actuarial component of the program, which tracks plans' liabilities, assets, and contribution requirements through time, represents the most significant component of the model in terms of programming detail and complexity.

PBGC uses SE PIMS to satisfy statutory requirements under ERISA Section 4008, as amended by the Pension Protection Act of 2006 (PPA of 2006), to produce annually, an actuarial evaluation of PBGC’s expected operations for the next five years for publication as part of

PBGC’s Annual Report. PBGC has chosen in the past to extend this projection to ten years instead of the required five. SE PIMS is updated regularly for legislative, regulatory, and/or policy changes. The model was critical to PBGC’s technical assistance in the legislative processes that led to enactment of the Deficit Reduction Act of 2005, the Pension Protection Act of 2006, and the Worker, Retiree and Employer Recovery Act of 2008. SE PIMS is used to evaluate the financial impact on ongoing pension plans, their sponsors and participants, PBGC finances, and the Federal budget of numerous and varied legislative proposals considered by the

Executive and Legislative branches, the Congressional Budget Office, the Joint Committee on

Taxation, and the Office of Management and Budget (OMB).

PBGC has also used SE PIMS at the request of the Government Accountability Office (GAO) and other Federal agencies/Departments to conduct special analyses to assess the financial condition of PBGC’s single-employer program and evaluate legislative/regulatory/policy alternatives to eliminating PBGC’s long-term single-employer deficit.

SE PIMS also interfaces with PBGC’s deterministic Excel-based Budget Forecasting Model

(Budget Model) to provide input on expected future claims and variable rate premium revenue for PBGC’s Federal budget forecasts submitted to the Department of Labor (DOL) and OMB.

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The Budget Model reflects PBGC’s accounting system and produces deterministic forecasts of the financial condition of PBGC’s single-employer and multiemployer insurance programs for up to 30 years.

While the scope of this contract is for only single-employer PIMS, we feel it’s important to understand the difference between the single-employer and multiemployer programs.

Consequently, the multiemployer program and multiemployer PIMS are described below.

4.2.2 There are about 1,400 multiemployer plans that cover more than 10 million workers and retirees. Unlike the single-employer program, under which PBGC guarantees payment of benefits upon termination of an underfunded plan, under the multiemployer program, PBGC guarantees payment of benefits if a covered plan becomes insolvent, i.e., is unable to pay basic PBGC guaranteed benefits when due. Also, unlike the single-employer program, insolvent multiemployer plans are not trusteed by PBGC. Rather, PBGC provides financial assistance payments to insolvent plans in amounts necessary to enable them to continue paying guaranteed benefits.

4.2.2.1 Multiemployer PIMS – PBGC’s multiemployer insurance modeling system (ME PIMS) went into production in 2009. Like SE PIMS, ME PIMS is a stochastic (i.e., random) simulation model that PBGC uses to evaluate its exposure and the likelihood of future claims, to quantify the amount of risk facing the multiemployer insurance program, and to satisfy PBGC’s statutory requirement under Section 4022 of ERISA (which requires PBGC to conduct quinquennial studies of the multiemployer insurance program in order to determine the adequacy of multiemployer premium rates to support the benefit guarantees). For further discussion, please see the PIMS webpage at PBGC.gov.

ME PIMS shares many features of SE PIMS, as well as reflecting fundamental differences between the single-employer and multiemployer programs, including:

1. A different universe of plans – ME PIMS currently contains data for roughly 300 multiemployer pension plans.

2. The failure event for multiemployer plans: typically, but not exclusively mass withdrawal from participation by contributing employers followed by insolvency (i.e., a plan running out of assets), rather than bankruptcy of a single-employer sponsor.

3. The lack of availability of financial data on individual contributing employers to multiemployer plans, and the resulting need for stochastic modeling of the mass withdrawal event to rely upon the condition of the plan rather than its contributing employers.

4. The collective bargaining framework of multiemployer plans, in which employer contribution rates are set through collective bargaining.

5. The ERISA environment, where multiemployer plans have separate funding rules (traditional

ERISA funding methods are still used), amortization periods, and Funding Improvement and

Rehabilitation Plans associated with Endangered and Critical status plans under PPA.

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6. Special computations for the Withdrawal Liability payments owed by employers who discontinue making contributions to a plan (individually or via mass withdrawals).

7. Significantly lower levels of PBGC benefit guarantees than for single-employer plans.

8. Different PBGC premium structure and levels than single-employer plans pay.

9. A different employer obligation to failed plans than the single-employer model of sponsor-bankruptcy and PBGC trusteeship: in the multiemployer realm PBGC pays periodic cash assistance to allow insolvent plans to continue functioning as ongoing (if wasting) trusts, receiving withdrawal liability payments from former sponsors and continuing to pay participants’ benefits but at the PBGC guarantee levels.

10. Different liability measurements for PBGC’s balance sheet which are computed as the present value of future financial assistance, booked when plans are in mass withdrawal and within 20 years of insolvency, or when they are ongoing but within 10 years of insolvency, and removed from PBGC’s books if they emerge from these criteria.

As with SE PIMS, the actuarial component of the ME PIMS program, which tracks plans' liabilities, assets, and contribution requirements through time, represents the most significant component of the model in terms of programming detail and complexity.

4.3 PIMS is developed based on a client-server architecture with minimal front end. The user interface was updated during 2014 and was re-written in C#. The backend database was also updated to MS SQL from FoxPro.

4.4 PIMS has been a valuable tool for PRAD for more than 25 years. Over that time, it has been modified to reflect multiple legislative proposals and law changes. It has also been updated to improve performance. As a result, the complexity has increased, flexibility has declined, utility has eroded, and PRAD’s ability to effectively and confidently respond to technical assistance requests and produce routine results has become imperiled.

5. OVERALL PERFORMANCE OBJECTIVES (I.E., REQUIRED RESULTS)

5.1 General Performance Objectives

5.1.1 This contract is for system design services only and does NOT include any implementation effort. The Option Years are intended to provide the Phase 1 contractor with the opportunity to provide ongoing advice and input throughout, in the event they are not also selected as the Phase 2 contractor. The architecture should be considered as a new system and shall include all documentation and work products pertaining to:

A. Architecture design, B. Logical design, and

C. Physical design

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The Contractor will develop the PIMS Modernization blueprint in response to PRAD’s modeling needs. The Contractor will be in frequent contact with PRAD during the development of this blueprint, with PRAD providing detailed and independent guidance on all aspects of the modernization. Additionally, PRAD will provide federal oversight, review, and modification of the deliverables submitted under this contract, as necessary, throughout the modernization process. PBGC will not consider the migration of PIMS to an Offeror’s Proprietary System as a suitable system architecture modernization alternative. PBGC wants to continue to own the system. However, there may be propriety aspects to the model that tie into the overall system design. All work products, including code, documentation, design documents and drawings are owned by PBGC and will be stored on PBGC systems and/or PBGC cloud infrastructure.

5.1.2 The Contractor shall provide highly qualified professional personnel to the PBGC, in accordance with all terms and conditions of this contract, to perform the services set forth below.

All communications between the Contractor and the PBGC shall be with the Contractor’s personnel in the U.S. unless PBGC grants prior permission to do otherwise.

5.1.3 The Contractor shall use an appropriate mix of professional personnel to satisfy the

Statement of Objectives (SOO) as defined in their proposed Performance Work Statement (PWS) and the respective tasks. Any partnerships or teaming arrangements with other firms should be noted as such. Any subsequent changes in key personnel from those listed in the technical proposal must be approved in advance by the Contracting Officer in the form of a contract modification.

5.1.4 The Contractor shall provide personnel, materials, and services hereunder independently, and not as an agent of PBGC. Under no circumstances shall the Contractor, any officer, director, partner, employee, subcontractor, or other person affiliated with the Contractor act or represent themselves as having the authority to act as an agent of the PBGC PRAD in connection with any services or activities hereunder.

5.1.5 Quality Control - The Contractor shall develop and maintain an effective Quality Control program to ensure services are performed in accordance with this contract in an accurate and complete manner. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-recurrence of defective services. The Contractor’s Quality Control program is the means by which it assures itself that its work complies with their Performance Work Statement

(PWS). After acceptance of the Quality Control plan the Contractor must receive the COR’s acceptance in writing of any proposed change to its Quality Control system.

5.1.6 During the period of this contract, access to PBGC facilities for Contractor representatives shall be granted as deemed necessary by the Government. All Contractor employees whose duties under this contract require their presence at any PBGC facility shall be clearly identifiable by a distinctive badge furnished by the Government. In addition, corporate identification badges shall be worn on the outer garment at all times. It is the sole responsibility of the Contractor to provide this corporate identification. Upon the termination of the employment of any Contractor personnel working on this contract, all Government-furnished identification shall be returned to the issuing office. All on-site Contractor personnel shall abide by the security regulations applicable to that site.

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All Contractor personnel attending meetings, answering Government telephones, and working other situations where their Contractor status is not obvious to third parties are required to identify themselves as such to avoid creating an impression in the minds of members of the public that they are Government officials. They must also ensure that all documents or reports produced by Contractors are suitably marked as contractor products or that contractor participation is appropriately disclosed.

5.2 Specific Performance Objectives:

5.2.1 Objective 1 - The Contractor shall develop a comprehensive system design architecture with programming specifics that address and consider the following design issues:

a. Completeness of approach.

b. How the approach addresses and achieves the outcomes, demonstrating a complete understanding of the requirements.

c. Confidence that the approach meets PBGC’s objectives and outcomes, considering PBGC’s available staffing and timeline.

d. The Offeror’s timeline for completion.

e. The identification of key strengths and weaknesses of the approach, and its associated risks.

f. Pros and Cons of the proposed approach.

The design shall provide the following outcomes:

5.2.1.1 Improve performance – A stochastic run currently takes about 20 minutes for

SE PIMS. Each run contains 500 economic scenarios and is projected out 20 years under each scenario. PRAD would like to increase the economic scenarios to at least

10,000 for each stochastic run, while reducing overall run times.

5.2.1.2 Improve flexibility – It takes at least a couple of weeks for small changes and up to several months for major changes to the model. The expectation is to allow for changes completed within days with the new models.

5.2.1.3 Retain institutional knowledge on the models – Currently all development work is completed by contractors. PRAD staff has only minimal involvement in the design and coding structure of the model. The new model should be completely accessible to

PRAD staff and it should be easy to train new staff members.

5.2.1.4 Decrease maintenance cost/data collection methodology – PIMS requires significant data collection every year from the Form 5500 data, including attachments and financial information from single-employer plan sponsors. We have information for about 500 single-employer plans and 400 single-employer plan sponsors in the

PIMS data. PRAD desires to expand the sample size to at least 1,000 SE plans. The data process is very labor intensive and PRAD would like to streamline and update the process.

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5.2.1.5 Revisit the business model – PIMS follows regular Information

Technology Life Solutions Cycle Management (ITSLCM) requirements. Every change requires an analyst to develop documentation to describe the business requirement, the expected outcomes, and the section of code subject to changes. This is a time-consuming process, especially problematic when working on technical assistance requests from Capitol Hill with expected turn-around time in days. In addition, there is usually a lot of time lost due to the back and forth between actuaries and the developers. PBGC experience and market research suggests that use of a business rules engine would address the need to quickly update parameters and change data points, as well as making it easier to trace inputs and runs.

5.2.1.6 Maintain long-term viability of the model – PIMS is currently coded in

C++ & C# in a .NET environment. Could another programming language be a better choice? Will a scripting language (R, Python, SAS, VBA) be a better choice? The Contractor shall evaluate these approaches and make recommendations to PBGC.

5.2.1.7 Revisit architecture – To reduce runtime, stochastic runs are split into 500 smaller jobs and spread over 500 local core machines. PBGC is implementing

Microsoft Azure in the cloud. Ideally, the proposed design would take advantage of the open, flexible, enterprise-grade cloud computing platform provided by Microsoft

Azure. If the proposed solution could not be implemented using the Azure cloud, clearly explain how the proposed solution provides the same flexibility and speed of cloud hosting.

5.2.1.8 Redesign PIMS database – PIMS utilizes a relational database (MS SQL) that has improved efficiency. However, use of the MS SQL database has added roadblocks in the development process. PIMS is a model and the data structure needs to be changed constantly. Using MS SQL requires independent Data Base Administrator

(DBA) to modify the master database every time when there is a structural change (due to compliance requirements). PBGC experience and market research suggest that hosting a database or rules engine in the cloud would allow database changes to be spun up and down quickly. What would be another alternative? How can the data be structured to be more efficient?

5.2.1.9 Reconsider PIMS Components – All components (modules) are home grown.

Should some components be replaced by commercially off the shelf (COTS) products;

economic scenario generator? actuarial calculations? In addition, should some components be updated to reflect new methodologies and best practices that have recently evolved? Note that a proprietary system is undesirable for PBGC.

5.2.1.10 Maintain Documentation – As with other stale models, PIMS documentation is quickly out-of-date. What processes shall PRAD employ to ensure the documents are maintained?

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5.2.1.11 Recommendations from Peer Review – PIMS has gone through several peer reviews, which are available at the following link:

https://www.pbgc.gov/about/projections-report/pension-insurance-modeling-system

After contract award, the Contractor will provide input as to which (if any) recommendations from these reviews should be included in the design.

5.2.2 Objective 2 – Execute Project Management

Project Management Plan-The Contractor shall develop and maintain a project management plan (PMP) to be approved by the COR for the work described in their PWS. The plan shall include, at a minimum:

a. A Project plan that identifies the tasks, assigned resources, costs, and project schedule.

b. An information and meeting request tracking plan.

c. A plan for tracking issues and findings.

Project Manager-The Contractor shall designate a Project Manager to plan and manage tasks and resources to meet the project schedule. The Project Manager shall be responsible for activities including, but not limited to:

a. Developing and maintaining the Contractor’s project management plan. Significant changes to the PMP need to be approved by the COR.

b. Tracking the Contractor’s work under this task.

c. Serving as the point of contact and coordinator for communications between the

Contractor and the COR.

6. LABOR CATEGORIES AND MINIMUM QUALIFICATIONS REQUIREMENTS

The Contractor shall propose personnel and qualifications required to accomplish the work.

PBGC reserves the right to evaluate the acceptability of all Contractor personnel qualifications.

The Offeror’s proposal shall identify key personnel to be assigned to this engagement and shall include resumes for each of the key personnel. The resumes collectively shall clearly demonstrate that they possess the required qualifications listed below in order to meet the requirements of the

Performance Work Statement.

The key personnel collectively shall possess:

o Extensive experience with developing sophisticated stochastic financial modeling tools.

o Familiarity with the key technical components of the project:

▪ The U.S. defined benefit pension system

▪ PBGC’s single-employer pension insurance program

▪ Capital markets

▪ Factors driving company bankruptcies o Strong communication and project management skills.

o Success partnering with clients.

o Experience with the latest technology platforms, programming languages, and advancements.

o Appropriate availability of time and commitment to this project.

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Key personnel are subject to PBGC 52.237-7000 KEY PERSONNEL.

7. OPERATING CONSTRAINTS

7.1 The ultimate system (which will be run on PBGC equipment and by PBGC staff and contractors) must meet Federal Information Security Management Act (FISMA) standards. It is important that the Contractor be FISMA compliant or familiar with and understand the related

FISMA requirements.

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SECTION D

PACKAGING AND MARKING

D.1 PBGC 52.247-7000 PACKAGING AND MARKING (JAN 2012)

The Contractor is responsible for the cost of all packing, packaging and mailing in accordance with the best commercial practices. All information submitted to the Contracting Officer or the COR must be clearly marked with the company name, the PBGC contract number, and identification of the item.

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SECTION E

INSPECTION AND ACCEPTANCE

E.1 52.246-4 INSPECTION OF SERVICES--FIXED-PRICE (AUG 1996)

(Reference 52.246-4)

E.2 52.246-6 INSPECTION--TIME-AND-MATERIAL AND LABOR-HOUR (MAR 2001)

(Reference 52.246-6)

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E.3 PBGC 52.246-7000 INSPECTION AND ACCEPTANCE OF DELIVERABLES (JAN 2012)

All deliverable items are to be furnished to the Contracting Officer's Representative (COR) or to PBGC personnel designated by the COR to receive a specific deliverable.

PBGC's receipt of a deliverable does not constitute acceptance by the Government. Final acceptance of any reports or other deliverable items required under this contract will be made in writing and may only be made by the COR or Contracting Officer.

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SECTION G

CONTRACT ADMINISTRATION DATA

G.1 PBGC 52.201-7000 CONTRACTING OFFICER'S REPRESENTATIVE (JAN 2012)

The Contracting Officer's Representative (COR) is TBD who may be reached atTBD .

The COR is authorized to assist in monitoring the work under this contract. The COR is responsible for the technical administration of the contract and technical liaison with the contractor.

The COR IS NOT authorized to change the scope of work or specifications as stated in the contract, to make any commitments or otherwise obligate the Government or authorize any changes which affect the contract price, delivery schedule, period of performance or other terms or conditions.

The Contracting Officer is the only individual who can legally commit or obligate the Government for the expenditure of public funds. The technical administration of this contract shall not be construed to authorize the revision of the terms and conditions of this contract. Any such revision shall be authorized in writing by the Contracting Officer.

The COR is authorized to review and recommend approval of:

(a) Technical matters not involving a change in scope, price, terms and conditions of the contract

(b) Progress reports

(c) Inspection and acceptance of services and deliverable products and

(d) Invoices.

The COR is not authorized to sign any contractual instruments or to direct any action that results in a change in the scope, price, terms or condition of the contract.

G.2 PBGC 52.232-7000 SUBMISSION OF INVOICES (FIXED-PRICE) (SEPT 2017)

(a) The contractor shall submit invoices for items and/or services rendered by e-mail to:

InvoiceManager@pbgc.gov. All inquiries concerning payment should be directed to the General Accounting Branch at (202) 326-4062 #0 or by e-mail to: InvoiceManager@pbgc.gov.

(b) To constitute a proper invoice, the invoice must include the information listed below.

(1) Name and address of the contractor.

(2) Invoice date and number.

(3) Contract number, line item number, and, if applicable, the order number.

(4) Description, quantity, unit of measure, unit price, and extended price of the items delivered.

(5) Shipping number and date of shipment, including the bill of lading number and weight of shipment if shipped on a Government bill of lading.

(6) Terms of any discount for prompt payment offered.

(7) Name, title, phone number, e-mail address, and mailing address of official to whom payment is to be sent.

(8) Name, title, phone number, e-mail address, and mailing address of official to notify in the event of an improper invoice.

(9) Taxpayer Identification Number (TIN). The Contractor shall include its TIN on the invoice only if required elsewhere in this contract.

(10) Electronic Funds Transfer (EFT) banking information.

(i) The contractor shall include EFT banking information on the invoice only if required elsewhere in this contract.

(ii) If EFT banking information is not required to be on the invoice, in order for the invoice to be a proper invoice, the contractor shall have submitted correct EFT banking information in accordance with the applicable solicitation provision or contract clause (e.g., 52.232-33, Payment by Electronic Funds Transfer - System for Award Management, or 52.232-34, Payment by Electronic Funds Transfer - Other Than System for Award Management).

(iii) EFT banking information is not required if the Government waived the requirement to pay by EFT.

(c) Substantiating documentation to be submitted with invoices must include copies of receipts or bills, and proof of payment for any authorized other direct costs for which the contractor is requesting reimbursement.

G.3 PBGC 52.232-7001 SUBMISSION OF INVOICES (TIME AND MATERIAL AND LABOR-HOURS) (SEPT 2017)

(a) A monthly invoice shall be submitted on SF1034 and SF1035 for work performed hereunder by e-mail to: InvoiceManager@pbgc.gov. All inquiries concerning payment should be directed to the General Accounting Branch at (202) 326-4062 #0 or by e-mail to: InvoiceManager@pbgc.gov.

(b) To constitute a proper invoice, the invoice must include the information listed below.

(1) Name and address of the contractor.

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(2) Invoice date and number.

(3) Contract number, line item number, and, if applicable, the order number.

(4) Description, quantity, unit of measure, unit price, and extended price of services performed and any supplies delivered, including:

(i) The labor hours by labor category billed, the hourly rate for each labor category billed, and the total dollars billed by labor category for the billing period (meal periods and other labor-hours not directly supporting the contract are not billable), and

(ii) The cumulative hours expended and dollars billed from contract inception through the current billing period.

(5) Dollar amount withheld, unless the contract is for commercial items awarded under FAR Part 8 or Part 12. Five percent of the total direct labor billed must be withheld after $1,000,000 has been billed to the contract, up to a ceiling amount of $50,000, unless other terms have been negotiated.

If other terms have been negotiated, they must be included in the contract.

(6) Terms of any discount for prompt payment offered.

(7) Name, title, phone number, e-mail address, and mailing address of official to whom payment is to be sent.

(8) Name, title, phone number, e-mail address, and mailing address of official to be contacted in the event of an improper invoice.

(9) Taxpayer Identification Number (TIN), only if required to be on the invoice elsewhere in the contract.

(10) Electronic Funds Transfer (EFT) banking information.

(i) Only if required to be on the invoice elsewhere in the contract.

(ii) If not required to be on the invoice, in order for the invoice to be a proper invoice, the contractor shall have submitted correct EFT banking information in accordance with the applicable solicitation provision/contract clause (e.g., 52.232-33, Payment by Electronic Funds Transfer - System for Award Management, or 52.232-34, Payment by Electronic Funds Transfer - Other Than System for Award Management).

(iii) Not required if the Government waived payment by EFT.

(c) Substantiating documentation to be submitted with the invoice must include the items listed below.

(1) Copies of time sheets indicating start and stop times of the personnel performing services under this contract (at PBGC's request, the contractor shall make available copies of any of the materials relevant to substantiating the hours billed).

(2) Copies of receipts or bills, and proof of payment for any authorized other…