Audit Services SIR 693KA9-21-R-00001 Amendment 0002.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

1. CONTRACT ID CODE

5. PROJECT NO. (If applicable)2. AMENDMENT/MODIFICATION NO. 4. REQUISITION/PURCHASE REQ.NO.

PAGE OF PAGES

6. ISSUED BY CODE 7. ADMINISTERED BY (If other than Item 6)

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

CODE

9A. AMENDMENT OF SOLICITATION NO.

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

CODE FACILITY CODE

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

Items 8 and 15, and returning is extended, is not extended.

12. ACCOUNTING AND APPROPRIATION DATA (If required.)

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

(x) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO THE AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation date, etc.) SET FORTH IN ITEM 14.

E. IMPORTANT: Contractor is not, is required to sign this document and return

ORDER NO. IN ITEM 10A.

1 8

3. EFFECTIVE DATE

11/20/2020

AAQ-410 ACQ STRATEGY & PERFORM NISC

Orville Wright Bldg. (FOB10A), Room 406 FAA National Headquarters 800 Independence Ave., SW

AAQ410-AFN

Washington DC 20591 x

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

separate letter or telegram which includes a reference to the solicitation and amendment number. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT

THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By ___________ x x

693KA9-21-R-00001

copies to the issuing office.

11/02/2020

(x)

The purpose of this amendment is to:

(1)Provide a summary of questions received along with corresponding responses

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. CONTRACT AUTHORITY 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

Kelly Chappelle

Except as provided herein, all terms and conditions of the document referenced in Item 9 A or 10A, as heretofore changed, remains unchanged and in full force and effect .

AMENDMENT 0002 to SIR 693KA9-21-R-00001 Audit Services The purpose of this amendment is to provide a list of questions received to date and corresponding responses. The following is a summary of the questions received along with corresponding response.

1. Will the post-award conference be held via teleconference under the pandemic? Yes, unless CDC guidelines have been updated at the time the post-award conference is held to allow for face to face meetings.

2. Can FAA list out the specific types of services needed by FAA, such as incurred cost proposal (ICP) audit/examination, forward pricing review, cost proposal examination or review, pricing review, Cost Accounting Standards (CAS) compliance review, etc., since different types of services require different technical approach. The FAA requires a broad range of contract audit and non-audit services. Refer to Sections C.2, C.3.1 and review the reference documents provided in C.3.10 for the types of audits the FAA may require under the resulting contract.

3. Must technical approach be provided by each type of services listed out on the SIR? No.

The offeror’s proposal must include information/documentation in sufficient detail to clearly identify the Offeror’s overall qualifications, experience and abilities in accordance with the factors and sub-factors described in Section L.13.

4. Is this the first time that FAA issue the SIR? If not, which firm was the incumbent? The incumbent is Booth Management Consulting, LLC.

5. Are those hours at Section B.3.1 the maximum hours of service for each year? No. The government intends to award an Indefinite Delivery/Indefinite Quantity (IDIQ) with Task Orders. The hours in B.3.1 are estimates and may change during contract performance.

6. Solicitation pg. 4, B.6 Travel Expenses – Can the Government please provide locations generally traveled to for prior year audits, if any. Travel has been primarily within the Washington DC metropolitan area. However, the contractor may be required to travel anywhere within CONUS.

7. Solicitation pg. 5, C3.1 Work Description – If the Contractor is requested to assist in investigations or court proceedings, will the Government reimburse the Contractor for any additional travel expenses incurred? Yes. The government will reimburse travel costs in accordance with SIR Sections B.6 and G.9

8. Solicitation pg. 7, C.3.6 Post Award Conference – Due to the current COVID-19 pandemic, would the Government consider conducting the Post Award Conference remotely? Yes

9. Solicitation pg. 63, L.12.1(a) Proposal Presentation – Audit Report Samples – Will the Government accept redacted audit reports issued to other Government agencies for Audit Report Samples?

Yes. We would anticipate other Government Agencies to be the recipient. Refer to Section L.13, Sub-factor 1.2, Audit Work Samples (ii) for instructions regarding what information may be redacted in report samples.

10. Solicitation pg. 63, L.12.1(b) Volume II, Price Proposal – It states that “Part 1 of the Price

Proposal must be in Excel.” Will the Government accept a Microsoft Word/Portable Document Format (PDF) version with additional details related to pricing? The Price Proposal Bid Model (Attachment J-5) must be submitted in excel as specified in Section L.14.2. The price narrative (See L.14.3) and supporting data may be in word (Microsoft Office Suite 2016) or PDF format.

11. Solicitation pg. 64, L.12.1(e) Page Size, Spacing and Page Numbering – Would the

Government consider reducing the font size from 12-point Times New Roman to 11-point Times New Roman? No.

12. Solicitation pg. 64, L.12.1(e) Page Size, Spacing and Page Numbering – For graphics, tables, and charts, would the Government consider reducing the font size from 12-point Times New Roman to 10-point Times New Roman? Yes. 10-point Times New Romano only for graphics, tables and fonts

13. Attachment J-3, Labor Categories and Qualifications – Can the Contractor add additional labor categories for the IDIQ to include Partner, Quality Control Partner/Director, Managers, and Staff with less than one year of experience? No. The government does not see the need for additional labor categories at this time. We would anticipate the contractor to map its required personnel into the FAA-required labor categories, based on the SIR-defined labor qualifications.

14. Attachment J-5, Cost Price Model – Can the Government add Partner, Quality Control

Partner/Director, and Managers labor categories and hours? All audits and examinations require partner and quality control level reviews to be completed before issuance of the reports. Please see the answer to Question 13.

15. Solicitation pg. Page 56; Section L.3; 3.2.4-22 – Will the government consider reducing the validity period to no more than 180 days? A full year of price validity is excessive. No.

16. We are confirming this Solicitation is a small business set aside? Yes

17. We are confirming that the staff level auditor category requires one year governmental audit experience not one year general audit and accounting experience? No. The staff auditor does not require governmental audit experience.

18. For the work product samples is there a timeframe of reference as in the past performance section? Yes. Refer to Section L.13, Sub-factor 1.2, Audit Work Samples, item (iv).

19. Is this a new contract or a recompete? If recompete: a. who is/are the incumbent(s)? b.

what is the value of the current contract? The incumbent is Booth Management Consulting, LLC. The value of the current contract is not relevant to this Screening Information Request.

20. C.3.9 Conflict of Interest - How would the government like for the Contractor to certify no organizational conflicts? Please refer to Section L.13, SubFactor 3.3:

Organizational Conflict of Interest Mitigation Plan for instructions. We do not require certification, we require a plan should a COI arise.

21. L.12 Proposal Format and Submission Instructions - Per the referenced section, “Electronic files must be saved in Microsoft Office Suite 2016 format; however, it is acceptable if audit report work samples are in PDF format. No other version of Microsoft Office is acceptable.” Would the government please consider submitting all volumes in PDF format? Volume I: Electronic files must be saved in Microsoft Office Suite 2016 format or pdf format; however, it is acceptable if audit report work samples are in PDF format. Volume II: The Price Proposal Bid Model (Attachment J-5) must be submitted in excel as specified in Section L.14.2. The price proposal narrative (See L.14.3) and any supporting documents must be saved in Microsoft Office Suite 2016 or PDF format.

Volume III: Documents must be saved in Microsoft Office Suite 2016 or PDF format.

22. Factor 1: Organizational Experience - Is the Contractor expected to only submit

Organizational Experience on Attachment J-1? Or can we provide the document as supplemental information? Factor 1: Organizational Experience should be a narrative supporting your experience. Attachment J-1 is simply information that should be included to summarize the audit work samples required.

23. Factor 1: Organizational Experience - Is the J-1 Attachment included in the Subfactor 1.1

Experience 20-page limit? Yes.

24. Factor 2: Past Performance - Can you please provide submission instructions for the Past Performance Survey (Attachment J-2)? Past Performance Surveys must be submitted to Kelly.Chappelle@faa.gov by the person completing the survey by 2:00 pm ET on January 8, 2021.

25. Factor 2: Past Performance - Is there a limit to the number of Past Performance Surveys a Contractor can submit? Yes. Offerors are to provide a minimum of two and a maximum of four Past Performance Survey forms in accordance with SIR Section L.13 Factor 2 Past Performance.

26. Subfactor 3.2: Key Personnel and Sample Resume - Does the government want resumes submitted in Subfactor 3.2: Key Personnel and Sample Resume section? Or may we mailto:Kelly.Chappelle@faa.gov provide them in an Appendix? The government requires resumes submitted with Subfactor 3.2. Refer to SIR Section L.13, SubFactor 3.2: Key Personnel and Resumes.

There is no page limit to Subfactor 3.2.

27. Subfactor 3.2: Key Personnel and Sample Resume - Are resumes required for personnel that are not identified as Key Personnel? Yes. The Offeror must provide resumes for Key Personnel and a prospective Senior Auditor. See L.13, Subfactor 3.2, Key Personnel and Resumes.

28. Based on past experience, are you able to tell me the approximate duration of each task order and if the work performance locations are generally in a specific geographic location? Task orders will have different durations depending on the type and complexity of the assignment. Travel has been primarily within the Washington DC metropolitan area. However, the contractor may be required to travel anywhere within

CONUS.

29. Page 3/B.3.1 Do these hours reflect the total hours anticipated under this IDIQ? This may not be sufficient hours to audit all of the auditees in Attachment J-4. SIR. Also, there are no partner hours. An audit report cannot be issued without partner involvement (or is this the “Program manager”? Should we document a cross walk to our GSA labor categories? The government intends to award an Indefinite Delivery/Indefinite Quantity (IDIQ) with Task Orders. The hours in B.3.1 are estimates and may change during contract performance. The government does not see the need for additional labor categories at this time. If you choose to bid using your GSA contract rates, you would be required to map those rates to the FAA-required labor categories. This is not anticipated to be a purchase directly from a GSA contract. The auditees listed on Attachment J-4 may not all require audit. They are potential auditees at this time.

30. Page 4/B.5 What is meant by “The Government may unilaterally reallocate direct labor hours between labor categories.” Does that refer to the estimated hours in Section B.3, which is used for estimating only? The government intends to award an Indefinite Delivery/Indefinite Quantity (IDIQ) with Task Orders. The hours in B.3.1 are estimates and may change during contract performance. The hours are our best estimate at this time.

31. Page 5/C.2 AICPA and GAGAS require that the auditor creates the audit procedures in order to perform procedures sufficient to support their opinion. This section states that the DCAA Contract Audit Manual will be used as guidance. Please clarify how the DCAA contract audit manual will be used by the auditor. The contractor must produce reports compliant with attestation engagements and in a similar format to DCAA reports, with findings and recommendations documented as appropriate for the type of audit or service. Requirements for the engagement process, format, and content of reports are found in the DCAA Audit Manual (DCAAM). We would anticipate the DCAAM be used as guidance, in the same manner as DCAA auditors.

32. Page 6/Section C.3.4.1 Performance audits performed in accordance with GAGAS do not result in an auditor’s opinion. This paragraph indicates a report expressing an opinion should be produced. Please confirm performance audits result in findings and conclusions, not opinions. Confirmed.

33. Page 7/C.3.5 Please indicate how FAA intends to review in-progress work papers and receive completed working papers that have been created and reviewed electronically by the CPA firm. Working papers may be sent to the COR, CO or the designated FAA representative via email.

34. Page 19/H.2 Please clarify that contractors (CPA firm) may work on federal holidays and invoice for work performed in direct support of the contract on those days in accordance with Section G.4 “Hours of Work” Working hours scheduled shall observe Federal Holidays indicated in Section H.2 and therefore work performed on Federal Holidays should not be invoiced.

35. Page 23/Section H.8 These are not the internal labor categories we use or our GSA approved labor categories. Should we document a cross walk to our GSA labor categories? If you choose to use your GSA schedule labor rates, you must map those rates to the FAA-required labor categories.

36. Page 25/Section H.16 Please clarify that the “support contractors” will not be able to or expected to participate in functions or performing tests that the auditor has determined necessary to support their opinion and has documented in their audit program.

Confirmed. Also, if the support contractors participation increases the level of effort by the Contractor due to extended time to discuss questions, provide work papers, etc., will this be basis for a modification to the Task Order? If a support contractor is utilized, that contractor will support the FAA’s Program Management Office (PMO), i.e.

documentation development or quality control monitoring and or provide Acquisition Support, i.e. contract administration.

37. Page 26/Section H.18 Does this apply to government payments to small businesses (15 days) if the small business is a subcontractor? The intent of this clause is to assure that payments are made to subcontractors in a timely manner. No contractor must infer that payments to subcontractors are predicated on payments to the prime.

38. Page 26/Section H.20 Are seasonal employees considered Consultants? Also, is an attestation by the Consultant sufficient to determine if “fees paid to the Consultant exceed the lowest fee charged by such Consultant to others for performing consulting services of a similar nature”? Consultants do not normally provide their pricing to other companies to us! Consultants are persons possessing special current knowledge or skill that may be combined with extensive operational experience. The contractor must ascertain the reasonableness of any consultant fees to be paid, if consulting services are required. The FAA does not determine the employment relationship between contractor and employee. Any employee (or consultant) hours incurred by the contractor will be reimbursed at the rate in the contract.

39. Page 27/Section H.21 Please clarify this requirement. “Any Contractor proposals for prospective work, exclusive of this contract, for which the Contractor may employ information generated in the performance of this contract, the Contractor is required only to notify the Contracting Officer of its intent to submit a proposal. Such notification must include a brief description of the requirement for which the Contractor is proposing and indicate the Government or business entity to which the proposal is being submitted.” If you choose to disseminate information regarding your performance on this contract, for example, if you submit a proposal to another Government agency or business entity, the Contracting Officer must be notified as outlined in the clause H.21.

40. Page 33/Section I.3 Please explain the requirement for Final indirect cost rates and an ICR proposal in paragraph (d) and the intent to renegotiate billing rates in paragraph (3).

Normally, if this is intended to be a fixed labor hour contract, negotiated rates are not auditable or subject to renegotiation. Payment for travel or any materials/ODCs under the contract that are to be reimbursed on a basis of cost are subject to the Allowable Cost and Payment clause in AMS.

41. Page 41/Section I.11 Please explain how labor hours associated with this process will be reimbursed (they are direct costs associated with this contract) and approximately how many hours will be necessary for each personnel on the contract. In our experience the eQIP process can take up to 20 hours between the fingerprints, application, PIV requirements, badging, etc. How should these costs (labor hour) be proposed/invoiced?

The FAA does not anticipate the contract requiring unescorted access to FAA facilities or access to FAA sensitive issues or systems. The contractor should not factor any cost of this into the offered price. If the situation changes, price would be discussed at that time.

42. Page 60/SectionL.10.2 Is the LOC a requirement? We have not needed an LOC is over 15 years! Yes, it is a requirement. The lack of one may not disqualify an Offeror, but the FAA would expect other financial information to support the lack. Offeror must demonstrate that they have or can obtain adequate financial resources to perform the contract.

43. Page 64/Section L.12.1 Please explain the requirement for “Tabs” in an electronic document. As used in this section, tabs are meant to be synonymous of bookmarks in word or PDF.

44. Page 64/Section L.12.1 Can the information in tables be smaller than 12 font as long as it is legible? Yes. Information in tables may be 10 font, but not smaller.

45. Section B.3 Could the government provide an estimated number of individual task orders it plans to issue under this contract? No. There is no estimate on the number of individual task orders. Could the government provide an estimated level of effort for the individual task orders it plans to issue under this contract? No. Task orders will have different durations depending on the type and complexity of the assignment. Could the government indicate how many contractors it anticipates awarding task orders to under this contract? The government anticipates making one award. Would the government consider including a Partner Labor Category within its cost-price model? The government does not see the need for additional labor categories at this time. If not, could the government confirm that it anticipates that the project manager would be responsible for signing any audit or attestation reports? Final signature authority for the issued report(s) must be made by a Certified Public Accountant (CPA) with an active license employed by a peer reviewed CPA firm.

46. Section B.6 Could the government indicate what percentage of the time contractors will be required to be on-site (at FAA or FAA contractor sites) to perform work issued under this contract? No. The government cannot estimate the time the audit contractor would have to spend at an FAA contractor site; that would be based on the risk assessment for each audit. The FAA anticipates very little time spent at an FAA facility.

47. Section C.3.5 Could the government indicate whether it will require Working Papers to be maintained within a particular type of audit documentation software (for example, Teammate)? No. The government does not require working papers be maintained within a particular type of software in order to meet the requirement in C.3.5.

48. Section H.8 Could the government please indicate whether it would be acceptable for a supervisory auditor to have 5-7 years of accounting experience, considering the 2-5 year requirement for a senior auditor and the 7-10 year requirement for a project manager?

Could the government please indicate whether it will accept any substitutions for the minimum professional experience and education requirements outlined within Attachment J-3? (For example, could a contractor with 5 years of experience and a CPA be considered a Supervisory Auditor?) No. The government will not accept substitutions for the minimum experience and qualifications required in J-3.

49. Section H.13 Could the government please indicate what type(s) of background check(s) and/or security clearance requirements will be required for contracted personnel to have access to FAA property and facilities? None. The FAA does not anticipate the contractor personnel or team members to need unescorted access to FAA facilities.

50. Section H.19 Could the government please indicate whether there is a limit on the amount of work that can be performed by subcontractors under this contract? Refer to AMS Clause 3.6.1-7 (Jul 2019) (Limitations on Subcontracting) included in SIR Section I.1, Clauses and Provisions Incorporated by Reference, for the amount of work that a subcontractor can perform under this contract.