2032H8-19-R-00002 Final Solicitation SEEs 2018 -jlw.pdf

OMB Control No. 1505-0081

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

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

1. REQUISITION NUMBER

5000037222

2. CONTRACT NO.

3. AWARD/EFFECTIVE DATE

4. ORDER NUMBER

5. SOLICITATION NUMBER

2032H8-19-R-00002

6. SOLICITATION ISSUE

DATE

2018-11-08

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME

Lisa S. Martin

b. TELEPHONE NUMBER (No collect calls) 240-613-5620

8. OFFER DUE DATE/

LOCAL TIME

2018-12-06 4:00 PM EST

9. ISSUED BY CODE 3678 10. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE:0 % FOR

IRS Procurement 5000 Ellin Rd Lanham-Seabrook, MD 20706-1348

Attn Lisa S. Martin (240) 613-5620

SMALL BUSINESS WOMEN-OWNED SMALL BUSINESS (WOSB)

ELIGIBLE UNDER THE WOSB PROGRAM

HUBZONE SMALL BUSINESS EDWOSB NAICS: 611710

SERVICE-DISABLED VETERAN

OWNED SMALL BUSINESS 8(A) SIZE STANDARD: 15 Million

11. DELIVERY FOR FOB DESTINATION

UNLESS BLOCK IS MARKED

12. DISCOUNT TERMS 13a. THIS CONTRACT IS A

RATED ORDER UNDER DPAS

(15 CFR700)

13b. RATING

SEE SCHEDULE

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE

3678 16. ADMINISTERED BY CODE 3678

IRS Procurement 5000 Ellin Rd Lanham-Seabrook, MD 20706-1348 Attn Lisa S. Martin

IRS Procurement 5000 Ellin Rd Lanham-Seabrook, MD 20706-1348 Attn Lisa S. Martin

17a. CONTRACTOR/

CODE FACILITY

18a. PAYMENT WILL BE MADE BY CODE 3678

OFFEROR CODE

To All Offerors

IRS Procurement 5000 Ellin Rd Lanham-Seabrook, MD 20706-1348 Attn Lisa S. Martin

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

0001 Enrolled Agents (EA) Testing - Base Period 1.00 LT __________ __________

(March 1, 2019 to February 28, 2021)

IAW with the PWS, contractor will perform all services to include: Test Development, Registration and Scheduling, Test Administration, Call Center Operations.

Fee Charged (not inclusive of Government user fee) Contractor’s Testing Fee $_____ (Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4, FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

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

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED HEREIN.

29. AWARD OF CONTRACT: REF. OFFER

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

30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT)

30c. DATE SIGNED

31b NAME OF CONTRACTING OFFICER (TYPE OR PRINT)

31c. DATE SIGNED x

X x

X

AUTHORIZED FOR LOCAL REPRODUCTION STANDARD

FORM 1449 (REV. 2/2012) PREVIOUS EDITION IS NOT USABLE

Prescribed by GSA - FAR (48 CFR) 53.212

STANDARD FORM

1449 (REV. 3/2005) BACK

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE (US$)

24.

AMOUNT (US$)

(CONTINUE)

0002 Enrolled Agents (EA) Testing - Option 1.00 LT __________ __________ Period 1 (March 1, 2021 through February 28, 2022)

IAW with the PWS, contractor will perform all services to include: Test Development, Registration and Scheduling, Test Administration, Call Center Operations.

Fee Charged (not inclusive of Government user fee) Contractor’s Testing Fee $_____

0003 Enrolled Agents (EA) Testing - Option 1.00 LT __________ __________ Period 2 (March 1, 2022 through February 28, 2023)

IAW with the PWS, contractor will perform all services to include: Test Development, Registration and Scheduling, Test Administration, Call Center Operations.

Fee Charged (not inclusive of Government

0004 Enrolled Agents (EA) Testing - Option 1.00 LT __________ __________ Period 3 (March 1, 2023 through February 29, 2024) IAW with the PWS, contractor will perform

32a. QUANTITY IN COLUMN 21 HAS BEEN

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

32b. SIGNATURE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32c. DATE 32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT

REPRESENTATIVE

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE 32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

33. SHIP NUMBER

34. VOUCHER NUMBER 35.AMOUNT VERIFIED

CORRECT FOR

36. PAYMENT

COMPLETE PARTIAL FINAL

37. CHECK NUMBER

PARTIAL FINAL

38. S/R ACCOUNT NUMBER 39.S/R VOUCHER NUMBER 40. PAID BY

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT 42.a. RECEIVED BY (Print) 41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER 41c. DATE

42b. RECEIVED AT (Location)

42.c DATE REC’D (YY/MM/DD)

42d. TOTAL CONTAINERS

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE (US$)

24.

AMOUNT (US$)

(CONTINUE)

all services to include: Test Development, Registration and Scheduling, Test Administration, Call Center Operations.

Fee Charged (not inclusive of Government

FORM 1449 CONTINUE SHEET 1

Performance Work Statement

Section 1 Background

The Internal Revenue Service (IRS) is a bureau of the Department of the Treasury and one of the world's most efficient tax administrators. The Return Preparer Office (RPO) mission is to improve taxpayer compliance by providing comprehensive oversight and support of tax professionals. The RPO oversees registration, testing, and suitability of Enrolled Agents (EA) and EA candidates.

EAs, like attorneys and Certified Public Accountants (CPAs), have unlimited practice rights to represent taxpayers before the IRS. This means they are unrestricted as to which taxpayers they can represent, what types of tax matters they can address, and which IRS offices they can represent taxpayers before. Learn more about EAs at: www.irs.gov/tax-professionals/enrolled-agents.

Practitioners must have the necessary qualifications to provide valuable services to taxpayers in presenting their cases to the IRS. Attorneys and CPAs are deemed to have such qualifications by meeting the requirements of their respective state bar and licensing board associations. EAs must demonstrate their competence directly to the IRS. Individuals qualify to become an EA through past service and technical experience as an employee of the IRS or by successfully passing the three-part IRS Enrolled Agent-Special Enrollment Examination (EA-SEE). There are currently over 60,000 EAs and approximately 19,000 to 21,000 examination parts are administered annually.

In 2006 the IRS launched a comprehensive revision of the EA-SEE Program by contracting out test development and administration services. The contracted services included the development of an examination that effectively measured the competence of applicants desiring to become EAs, the effective administration and delivery of the examination, and annual updates to the examination in response to changes in tax law.

The three separate EA-SEE examination parts are designed to test different taxation topics. The examination parts can be taken in any order and candidates are limited to attempting each examination part no more than four times per testing window. The testing window is from May 1 through February 28/29 of the following year. The examination is not available during the annual blackout period of March 1 to April 30 as it is during this time that the examination is updated with the most recent tax law.

The current EA-SEE contract will expire in February 2020. The Contractor that is awarded this contract must ensure that the examination format developed is consistent with the previously established examination as described in Section 4.01, Test Development.

Section 2 Scope

The RPO has a need to procure Contractor support for the continued development and administration of a testing program that enables candidates to earn the EA designation.

The Contractor shall be responsible for test development and administration, including: hosting and maintaining a system to capture candidate data and collect payment from the candidate, delivering testing in both computer-based and paper-based formats, providing customer service to candidates, and recording and transferring test results to the IRS and/or its designee. An easy, quick, and secure means to schedule examinations must be provided. The Contractor shall be responsible for providing controlled, professional, and accessible facilities for test administration.

Refer to Section 4.02, Registration and Scheduling, and Section 4.03.2, Test Accommodations, for additional information on extenuating circumstances that require alternative registration and paper-based testing format.

The Contractor’s systems shall electronically interface with IRS systems and/or with the systems of a designee of the IRS, in order to receive and transmit data in formats specified by the IRS.

Data exchanges include, but are not limited to, matching identifying numbers to test takers, data obtained during the registration or test administration process, and test results. The Contractor shall expeditiously address any impact resulting from changes in the IRS process for tracking registration of EAs, including the addition of an IRS-designated third-party system to track and maintain EA registration data. The Contractor shall bear the expense of any required interface modifications resulting from changes in data exchanges.

The Contractor’s key personnel shall attend a contract kick-off meeting at IRS offices in the Washington D.C. area within three (3) weeks of contract award as directed by the IRS.

Section 3 General Provisions

3.00 Standard Clauses

Attached to this Performance Work Statement (PWS) are standard IRS contract clauses (“Standard Clauses”) that include important additional information about the requirements in the PWS. It is the Contractor’s responsibility to not only read and understand the requirements in the PWS but also read and understand the provisions of the Standard Clauses and be prepared to fully comply with them upon contract award.

3.01 No-Cost Basis

All requirements herein shall be performed at no cost to the Government. The Contractor shall recover costs incurred in performing the requirements of the contract, plus a reasonable profit, solely through fees collected directly from candidates. The Contractor shall be responsible for any insufficient fund issues with candidates.

3.02 Ownership

This is a no-cost-to-government contract. The Contractor is expected to recoup costs for products and services developed and provided pursuant to this contract, including test development activities, by charging candidates a fee to take the test. No portion of this agreement is intended to be, nor should it be construed to be, a voluntary services agreement. The Contractor will not perform the services herein voluntarily but will be compensated for these services through testing fees paid by EA candidates. Therefore, on behalf of its stakeholders, the IRS shall own the job analysis, all test questions, test versions, test materials, test results, and all data created or collected by the Contractor pursuant to the requirements herein. The Contractor shall transfer the aforementioned data to the IRS, and/or other Contractor(s) designated by the IRS, in formats specified by the IRS, as and when directed by the IRS.

3.03 Review and Approval

Unless expressly exempted, all aspects of the Contractor’s performance, including methods, products, and services, are subject to the IRS’ review and approval. The IRS’ review and approval shall not relieve the Contractor from their contractual obligations. The Contractor, and only the Contractor, is responsible for the quality of the product and service they provide. Defects in the Contractor’s products and services shall be corrected immediately by the Contractor and at the Contractor’s expense regardless of when they are first discovered prior to the expiry of the contract.

3.04 Contractor Personnel

Requirements in this section apply to all members of the Contractor’s team including employees of the Contractor’s subcontractors, partners, or consultants.

1. The Contractor’s team shall possess the educational background, technical experience, and project management expertise needed to successfully carry out the scope of the proposed work as outlined in the contract. The IRS has the absolute right to approve or disapprove any member of the Contractor’s team assigned or proposed to be assigned to this contract. An initial approval shall not preclude a subsequent disapproval. Members of the Contractor’s team shall be removed from work on this contract immediately upon disapproval.

2. After contract award, changes in employment status for key personnel shall be reported to the IRS by the Contractor no later than five (5) calendar days following the change in employment status. Proposed key personnel substitutions shall be submitted to the IRS for review and prior approval.

The Contractor shall include in their proposal biographies of key personnel. Each biography shall be limited to two (2) pages and shall include pertinent work experience, experience with Federal Government contracts, education, and test development credentials. Key Personnel is defined as anyone responsible for or providing oversight in the following areas: Executive Leadership, Project Management, Contract Management, Test Development, Information Technology, Customer Service Call Center, Test Center Management, Quality Assurance, Accounting, IT Security, Personnel Security, and Physical Security.

All members of the Contractor’s team are subject to a Government background investigation as described in more detail elsewhere in the Contract and in the Internal Revenue Manual (IRM) 10.23.2

3.05 Quality Assurance Program

The Contractor shall prepare and submit to the IRS their proposed Quality Assurance Program (QAP). The QAP shall consist of plans, procedures, and organization necessary to provide assurance that supplies, equipment, services, and operations comply with contract requirements.

The QAP and the names of the Contractor’s designated persons responsible for managing it shall be submitted to the IRS for approval. See Section 4.06.2, Quality Assurance Program, for additional information.

3.06 Meetings

The Contractor shall have toll-free conference lines available to host meetings with the IRS and IRS stakeholders. The Contractor shall:

1. Meet with the IRS regularly, at a minimum weekly, following the contract award kick-off meeting and through the first two (2) months after the cut score determination, to discuss the Program. Frequency of meetings may then change to bi-weekly as directed by the IRS. This meeting shall be conducted via teleconference but may periodically be in-person. The Contractor shall:

a) Solicit the IRS for agenda items then develop and distribute to meeting attendees the meeting agenda, in Microsoft Word format, no less than 24 hours prior to the meeting.

b) Provide written minutes for each meeting, electronically, within three (3) business days after the meeting adjourns. The minutes shall capture the meeting date and time, attendees, agenda, key discussion points, action items, target and actual completion dates, responsible parties, and decisions made. The minutes shall be distributed to attendees for review and comment prior to being finalized. See Exhibits and References, Reports, for

2. Meet with the IRS, at a minimum annually, for a comprehensive discussion of the Program.

Meetings will generally be held at Contractor’s facilities but could be conducted at IRS facilities at the discretion of the IRS. The Contractor shall:

a) Solicit the IRS for agenda items then develop and distribute to meeting attendees the meeting agenda, in Microsoft Word format, no less than three (3) business days prior to the meeting.

b) Provide written minutes for each meeting, electronically in Microsoft Word format, within seven (7) business days after the meeting adjourns. The minutes shall capture the meeting date and time, attendees, agenda, key discussion points, action items, target and actual completion dates, responsible parties, and decisions made. The minutes shall be distributed to attendees for review and comment prior to being finalized.

3. Meet with the IRS, at a minimum monthly, for a review of compliance with the Continuous

Monitoring (CA-7) requirement of the IRS Publication 4812 and other security-related issues.

Both the Contractor’s Project Manager and their security subject matter experts shall attend these meetings. Monthly configuration and vulnerability scan reports shall be submitted for review five (5) business days in advance of each such meeting. In addition, any outstanding Plan of Action and Milestone (POA&M) item and any other document pertinent to the discussion shall be submitted for review five (5) business days in advance of each monthly meeting. Minutes of the meeting shall be prepared by the Contractor and distributed for review no later than five (5) business days after the meeting.

4. Meet with the IRS periodically (typically once a year) for a comprehensive security assessment. Each such meeting typically lasts three (3) consecutive days, Tuesday through Thursday, at Contractor’s facility or facilities selected by the IRS. The scope of the comprehensive security assessment includes Information Technology, Personnel and Physical Security. The Contractor’s Project Manager and their security subject matter experts shall be in attendance throughout the duration of the assessment.

3.07 Response to Inquiries

The Contractor shall respond to the IRS’ verbal and written requests and inquiries within two (2) business days of receipt. When a complete and final response to the IRS request or inquiry is not practical within the specified time period, the Contractor shall propose for IRS’ consideration an alternate date by which a complete and final response shall be forthcoming. This date commitment shall be submitted to the IRS in writing, via email, within two (2) business days of the original request or inquiry.

3.08 Historical Information

The historical number of examinations administered annually and the number of domestic customer service phone calls received monthly included in Section 5.01, Historical Information, is provided for illustrative purposes only and without any express or implied representation that historical information is an indication of future volume. The examination is offered as part of a voluntary enrollment program and examination volume varies from year to year. The Contractor shall be solely responsible for performing due diligence through market research and other means to project future estimates prior to the submission of their price proposal. The risk of relying exclusively on historical information provided by the IRS for any purpose or application is assumed in its entirety by the Contractor.

3.09 Marketing

After contract award, the Contractor shall obtain the IRS’s approval prior to any of the following activities involving work under this Contract:

a) External outreach

b) Press releases or marketing

c) Advertising campaigns

3.10 Data Security

The Contractor shall comply with applicable Government security, privacy, and disclosure policies and standards. See elsewhere in the Contract for more information.

3.11 Change Control Board

A Change Control Board (CCB) shall be established post-contract award. The CCB members shall include representatives from both the IRS (voting members) and the Contractor (non-voting members). All updates, releases, enhancements, and developments involving Information Technology and external communications shall be subject to review by the CCB prior to implementation. The purpose of the CCB is to ensure no adverse impact upon implementation.

The CCB shall meet via teleconference monthly. Specific monthly meetings may be cancelled by the IRS if deemed not necessary.

3.12 Site Visits, Audit, and Inspection

The IRS may conduct site visits at any Contractor location relevant to this contract to verify (audit) compliance with contract requirements. The Contractor shall accommodate the IRS during such visits by providing access to all facilities and systems relevant to the conduct of such audit and inspection.

3.13 Event and Incident Reporting

The Contractor shall notify the IRS, per the Standard Clause IR1052.224-2008, whenever a problem is identified with the Contractor’s systems, equipment, or operations that are relevant to the execution of this contract. The written notification shall include the following information:

a) Date, time, and duration of the event or incident

b) Source and detailed description of the event or incident

c) Method of detection

d) Which systems were impacted by the event or incident

e) Why the event or incident is of concern

f) Corrective actions taken or corrective actions planned and implementation timeline

g) Degree to which candidates were impacted

h) Whether candidates’ PII was exposed

i) Copies of any communications with candidates regarding the event or incident

3.14 Scheduled Maintenance

The Contractor shall inform the IRS, via email, at least 48 hours in advance of scheduled maintenance that is expected to result in a significant decrease in the performance of the Contractor’s systems, equipment, or operations relevant to this contract. A significant decrease in performance includes, but is not limited to, any decrease in performance that results in the Contractor being unable to meet the requirements specified in the contract.

3.15 System Performance

System performance measurements shall be in line with the applicable industry standards and as follows:

a) System Availability: 99%

b) Number of concurrent users: 300

3.16 Periodic System Enhancements and Releases

The Contractor shall implement periodic systems updates and releases to maintain compliance and stay current with the applicable technology, security and customer service standards of this Contract.

3.17 System Performance Review

All aspects of the Contractor’s Information Technology shall be subject to regular performance reviews by the IRS. Areas of review include, but are not limited to, system responsiveness, security, data integrity, and other performance characteristics related to compliance with requirements of the contract. The IRS will establish review requirements and schedules post-contract award.

3.18 Suspension of Access to Online Applications

The Login page of Web-based applications, as well as any other Web page directly accessible to candidates, shall display, “This page is currently not available, please try again later.” within one hour of being directed to do so by the IRS. The message, “This page is currently not available, please try again later.” is included herein for illustrative purposes. The exact text of the message to be displayed will be included in the IRS’ directives.

3.19 Enterprise Life Cycle (ELC)

This contract is subject to the requirements of the Internal Revenue Manual (IRM) 2.16.1. The ELC is the approach used by the IRS to manage and implement business change and information systems initiatives. The Contractor shall provide the necessary documentation to comply with the requirements of ELC. The required ELC documentation includes, but is not limited to:

a) Design Specification Reports

b) Business System Reports

c) Interface Control Documents

d) System Architecture Diagrams

e) System Security Plans

f) System Deployment Plans

g) System Test Plans

h) Test Completion Reports

i) System Contingency Plans

j) Incident Management Procedures

k) Operations Handbooks

l) Privacy Impact Assessments

m) Interconnection Security Agreements

n) Memorandums of Understanding

o) Service Level Agreements

p) Non-Disclosure Agreement

The Contractor shall submit the documentation for the proposed systems to the IRS for review and approval no more than sixty (60) calendar days from the date of contract award. Prior to officially launching the systems for public use, and periodically thereafter, the IRS will conduct security assessments that include, but are not limited to, interviews, site visits, tests, scans, and/or code reviews. Upon successful completion of the ELC process and security assessment, the IRS will provide formal approval to proceed.

3.20 Retention of Data

Unless a longer period is mandated by applicable laws, regulations, and policies or specified elsewhere in the Contract, records, documents, information, and data generated, collected, or otherwise acquired by the Contractor for purposes of meeting the requirements of the contract shall be securely retained for a period of three (3) years after the expiration of the final period of performance of this contract regardless of type, form, or format.

Examples of data created or collected by the Contractor include the test question item bank, test specifications, test question performance data, test results, candidate registration and scheduling information, and financial records related to fees collected from candidates.

During this period, the Contractor shall make available at its offices at all reasonable times the said records, documents, information, and data for examination, audit, or reproduction. The Contractor shall securely purge all records, documents, information, and data upon expiration of records retention period(s), or earlier if directed by the IRS.

3.21 Section 508

The electronic information technology products and product support services furnished in performance of this contract shall comply with Section 508 of the Rehabilitation Act of 1973 as amended, and the Architectural and Transportation Barriers Compliance Board’s Electronic and Information Technology Accessibility Standards.

The Contractor shall test the deliverables in accordance with the test plan and methodologies outlined elsewhere in the contract and submit to the IRS for approval prior to systems becoming available to candidates.

3.22 Business Continuity and Disaster Recovery Plan

The Contractor shall maintain a comprehensive business continuity and disaster recovery plan and make the plan available to the IRS for review and approval upon request.

The Contractor shall submit as part of their proposal:

1. A description of their business continuity and disaster recovery plan including existing or proposed contracts with third-parties for:

a) Back-up data centers

b) Alternate work space for Contractor staff

c) Alternate call center for inbound calls

2. A high-level description of the plan for:

a) Call center operations

b) Support staff operations

c) Test center operations including life safety and evacuation, procedures for rescheduling candidates whose test appointments may be interrupted, and system capabilities to safeguard against data loss

3. A description of the plan’s review and testing process and the frequency of such review and testing. Describe any experience with implementing the plan in response to actual past emergencies

4. Recovery time objectives (RTOs) for each, and every system the Contractor proposes to deploy to meet the requirements of this Contract.

3.23 International Laws and Regulations

The Contractor shall include as part of their proposal terms and conditions they expect the Government to agree to in order for the Contractor to comply with the relevant laws and regulations of foreign countries where the Contractor expects to operate pursuant to the requirements of this contract.

Section 4 Functional Requirements

4.01 Test Development

4.01.1 Initial Test Development

The Contractor shall:

1. Conduct an initial job analysis to ascertain the necessary knowledge and capabilities for EAs.

The job analysis shall serve as a key component of test development.

2. Utilize industry Subject Matter Experts (SME) and IRS Technical Experts in the test development process to ensure an accurate rendering of tasks and performance objectives related to the job analysis.

3. Present to the IRS, upon completion of the job analysis, a detailed report and an executive summary of the job analysis. See Exhibits and References, Reports, for specific reporting requirements.

4. Develop test plans and test specifications based on the job analysis and present to the IRS for approval.

5. Incorporate the following examination requirements:

a) Develop an examination that measures competence in tax matters and ethics in accordance with the current edition of The Standards for Educational and Psychological Testing or other legally defensible test development standard.

b) Develop the examination in the English language.

c) Make the examination available to candidates in both computer-based and paper-based formats.

d) Develop test questions and test forms to ensure the integrity of the examination and to prevent test question saturation.

e) Write and develop test questions using industry SMEs and IRS Technical Experts with the majority of the questions being written by industry SMEs.

f) Reference each test question to include an annotation to the applicable IRS source reference, including but not limited to: The Internal Revenue Code (IRC), IRS Revenue Procedures, IRS Revenue Rulings, and IRS publication(s), forms, and instructions. Where appropriate, each question shall include an IRC reference and/or Publication chapter or page number(s) pertinent to support each question. This is internal data to support item accuracy and shall not be present on the test questions provided to candidates.

g) The test question format shall be multiple choice with a single best answer and three distractors.

h) The examination shall consist of three (3) parts that test candidates’ knowledge of topics in these categories:

i. EA-SEE Part 1 - Individual Taxation

ii. EA-SEE Part 2 - Business Taxation

iii. EA-SEE Part 3 - Representation, Practices, and Procedures

i) Each test question shall be approved by the IRS and properly coded for the applicable examination part.

j) Each examination part shall contain 100 test questions, of which 85 shall be scored and 15 shall be experimental and will not count towards candidates’ grades.

k) Each examination part administered shall be timed at three and one-half (3 ½) hours.

Computer-based examination sessions shall include approximately thirty (30) additional minutes for the NDA, tutorial, and customer satisfaction survey.

6. Provide the IRS written confirmation, within thirty (30) calendar days of completion of the initial examination development process, that the examination is legally defensible. See Exhibits and References, Reports, for specific reporting requirements.

7. Develop, in consultation with the IRS, a style guide which shall be referenced during item writing and item review, to ensure proper tax-related terminology and consistent use of format, grammar, and punctuation are used.

8. Provide the IRS secure electronic access to the Contractor’s databases and systems used in the EA-SEE test development process and training to effectively utilize the databases and systems. The IRS shall have access to and use the Contractor’s test development systems.

Access shall be granted in sufficient time for IRS to fully participate in the initial test development process. Additionally, provide secure transmission of test questions, in Microsoft Word format, for review by IRS Technical Experts who may not have direct access to the Contractor’s test development databases and systems.

9. Provide the IRS the final examination parts, forms, versions, and questions, electronically in Microsoft Word format, by May 1, 2020.

The Contractor shall provide as part of their proposal:

10. A description of the Contractor’s test development application(s) for which they propose to grant access to IRS Technical Experts. When reviewing Contractors’ proposals, the IRS will give preference to Web-based applications over Windows-based applications because IRS computer security requirements prohibit IRS employees from downloading software to government-issued computers. Web-based applications must not require an additional software download to access and utilize the application.

11. A description of the number of test questions and examination forms per exam part to be developed initially for administration during the first testing window of the contract (May 1, 2020 through February 28, 2021). Specify an approximate number of new test questions to be developed annually to ensure a legally defensible test as defined by the current edition of The Standards for Educational and Psychological Testing or other legally defensible standard.

12. A description of the proposed computer-based examination delivery method; specifically, if examinations will be administered on fixed examination forms or through the use of random generation of test questions from a bank.

4.01.2 Cut Score Determination

The Contractor shall:

1. Develop a plan to conduct beta testing and collect sufficient data in order to determine test validity and establish the cut (passing) score.

2. Utilize industry SMEs and IRS Technical Experts in the cut score determination process.

3. Develop a written cut score recommendation to present for IRS approval, including all statistical data and data analyses to support the recommendation. A scoring table shall be developed to convert raw scores to scaled scores. See Exhibits and References, Reports, for specific reporting requirements.

4. Conduct additional cut score reviews, as directed by the IRS, to ensure the continued validity of the initial cut score. Upon each additional cut score review, the Contractor shall present to the IRS a written recommendation for approval, including all statistical data and data analyses to support the recommendation.

4.01.3 Annual Test Updates

1. Provide the IRS with a comprehensive project plan in Work Breakdown Structure (WBS) format outlining specific actions, responsible parties, beginning and ending dates, and actual completion dates to ensure timely, effective delivery of the updated test. A WBS will be developed and presented to IRS annually by July 1, prior to the beginning of the test update process. The Contractor and the IRS shall regularly review, discuss, and update the WBS tasks. See Section 4.06.1, Project Management, and Exhibits and References, Reports, for

2. Update all examination versions and/or test questions annually to reflect changes in tax law or scoring, to prevent test question saturation, to improve performance of test questions based on the Contractor’s item analyses, or as determined by the IRS. Annual updates shall be based on the IRC, forms, and publications, as amended through December 31 of the prior year.

a) Individual Test Question Update: This annual systemic update shall not supplant the IRS’ right to order update of any individual test question at any time during the year if there is a need. The IRS does not anticipate the need to update individual questions more frequently than once annually; however, the Contractor shall be required to do so as deemed necessary by the IRS.

b) Exam Update Due to Extensive Legislation: In the event Congress passes extensive legislation that results in changes to taxation topics that are included in the exam or the requirement to introduce new taxation topics to the exam, the Contractor shall be required to conduct additional test update activities including, but not limited to, reviewing and updating test specifications, item writing and review, and potentially beta testing and standard setting, based on the extent of the changes and impact to the examination.

The IRS shall be provided sufficient time to review and comment on the proposed updates to test questions before final implementation, as outlined in Section 4.01.6, Test Development Review and Approval.

3. Conduct an annual gap analysis to identify weak content areas that require additional test questions. Present to the IRS a written summary of the analysis and any recommendation on weak or satisfactory content areas. Submit all statistical data used for the analysis and used to support the recommendation. See Exhibits and References, Reports, for reporting

4. Conduct an annual item analysis on the performance of existing test questions in preparation for the annual test update process. Present to the IRS a written summary of the analysis and any recommendation to withdraw, revise, and/or retain any test question. Submit all statistical data by test question used for the analysis and used to support the recommendation. See Exhibits and References, Reports, for reporting requirements.

5. Use industry SMEs and IRS Technical Representatives in the annual test update process including the test question performance review, the review of existing test questions, and development and review of new test questions.

6. Provide the IRS annual written confirmation, within thirty (30) calendar days of the completion of the annual test update process, that the examination is legally defensible. See Exhibits and References, Reports, for reporting requirements.

7. Make the updated examinations available to candidates on May 1 annually.

8. Update, by March 1 and/or on an ongoing basis as determined by the IRS, internal and public-facing information including, but not limited to, the Contractor’s Website, score reports, communications templates, customer service and test center procedures, and any other documentation that may be impacted by the annual test update.

9. A description of the process of republishing the exam in the event a test question must be updated during the testing cycle, including the amount of time it takes to republish the exam.

4.01.4 Industry Subject Matter Experts

1. The Contractor shall use industry SMEs comprised of EAs, CPAs, and/or attorneys in the development and annual updating of the examination as referenced in the contract.

2. The Contractor shall solicit for SME interest and participation one time annually and shall retain SMEs for all applicable test development or test update activities. A sufficient number of SMEs to participate in all related initial test development and test update activities, as determined by the Contractor, shall be solicited and secured one time each year. In the event the pool of SMEs must be replenished during the initial test development and/or annual test update process, a second solicitation may be offered.

3. All SMEs selected by the Contractor to participate in the initial test development and annual test update activities shall be subject to the IRS’ requirements and prior approval and shall hold the designation of EA, CPA, or attorney. Following the SME solicitation, the Contractor shall provide the IRS, securely and electronically, the interested SME’s full name and Preparer Tax Identification Number (PTIN) for review and approval. The IRS requires that all industry SMEs participating in the Program have valid PTINs and be in good standing with the IRS Office of Professional Responsibility (OPR) and their licensing boards. The IRS requires a minimum of thirty (30) calendar days to review SME information and will respond to the Contractor with a list of approved SMEs from which to choose. The Contractor shall factor this approval period into the annual WBS.

4. The Contractor shall assemble SMEs that are diverse in years of experience and geographic location. SME participation may be conducted remotely or in-person, at the Contractor’s discretion.

5. All costs for retaining and utilizing SMEs pursuant to the contract shall be the responsibility of the Contractor and should be considered as test development costs to be recouped through the test fee paid by candidates.

6. The Contractor shall require SMEs to sign an NDA annually, at the time the SME is retained and prior to beginning work on the examination. The Contractor shall provide the IRS a copy of each signed NDA. See Exhibits and References, Industry Subject Matter Experts Non- Disclosure Agreements, for a sample NDA. The IRS will provide the Contractor the actual NDA after contract award.

7. The Contractor shall include in their initial comprehensive project plan (WBS) the timeline for solicitation and retention of SMEs, the number of SMEs that will participate in each applicable test development process, and whether the same individuals shall participate in more than one activity. Additionally, the Contractor shall provide this information annually in their WBS.

8. The Contractor shall develop a process for managing SMEs and present it to the IRS no later than June 30, 2019. The process shall include marketing and recruiting, work assignments, evaluating performance (e.g., quality and quantity of written items, contribution to review processes), and termination for unsatisfactory performance.

4.01.5 IRS Technical Experts

IRS Technical Experts, as determined by the IRS, shall participate in all aspects of the development and annual updating of the examination. IRS will bear any expense related to IRS Technical Experts’ participation.

4.01.6 Test Development Review and Approval

The IRS will be engaged with the Contractor throughout each step of the initial test development process and shall exercise final approval of each task including, but not limited to, the job analysis, test specifications, item writing and review, forms review, and cut score determination.

The IRS will exercise final approval of all test questions and the Contractor shall schedule in the WBS a minimum of ninety (90) calendar days to accommodate the IRS’ review.

During the annual test update process, the IRS shall exercise final approval of item analysis determinations, item review, forms review, cut score analysis and determinations, and any subsequent job analyses. The IRS will exercise final approval of all test questions. While test questions will generally be written to be valid for the life of the contract, changes in tax law may necessitate test questions to be revised or withdrawn. The Contractor shall schedule in the WBS a minimum of ninety (90) calendar days for the IRS’ review of test questions.

4.02 Registration and Scheduling

The Contractor shall provide candidates with two (2) methods for registering for and scheduling examination appointments: online, Web-based system(s) for self-service; and customer service call center(s) for assisted service. Both methods and the following requirements shall be available to candidates located within the United States (U.S.) and internationally.

1. For the Web-based system(s), the Contractor shall:

a) Provide Web-based system(s) that allow candidates to register and schedule to take the examination and make secure credit card payments.

b) Incorporate measures to ensure the Web-based registration and scheduling system(s) are user friendly and easy to use. Measures shall include, but are not limited to, step-by-step instructions, auto-populated fields when candidate data is repeated, and customer service contact information and e-help options on all screens. The systems shall allow navigation to previous screens for reviewing and editing candidate data. All instructions, text, and drop-down menus shall be customizable per IRS’ direction.

c) Provide Web-based system(s) that shall accommodate and allow for efficient access across a broad array of commonly used Web browsers and operating systems.

d) Allow candidates to utilize the Web-based system(s) to register for and schedule examination appointments beginning on March 1, 2020.

e) Make Web-based registration and scheduling available seven (7) days per week, twenty-four (24) hours per day, excluding maintenance periods.

f) Provide password-protected access for each candidate to register for and schedule the test.

2. For the Customer Service Call Center, the Contractor shall:

a) Provide a customer service call center staffed with qualified and trained customer service representatives (CSRs) to provide telephonic customer support, registration and scheduling services, and securely process credit card and e-check payments.

This customer support, registration, and scheduling method shall be available to all candidates including those covered by applicable sections of the Rehabilitation Act of 1973, by the Americans with Disabilities Act, candidates whose religious beliefs prevent them from using computers, and to candidates to whom Web-based registration and scheduling is not readily available.

b) Allow candidates to contact the customer service call center for telephonic assistance with customer support, registration, and scheduling examination appointments beginning on March 2, 2020.

See Section 4.05, Call Center Operations, for specific call center requirements.

3. For both the Web-based system(s) and the customer service call center(s), the Contractor shall:

a) Collect from candidates only the PII necessary to effectively authenticate candidates at the test centers and to match test results to Contractor’s systems and IRS’ systems. Data elements must include, but are not limited to:

i. Legal first name, middle name (optional), and last name

ii. Preferred first name, middle name (optional), and last name (to match identification documents)

iii. PTIN

iv. Date of birth

v. Address, city, state, zip code, country, province

vi. Primary phone number including optional extension

vii. Secondary phone number including optional extension

viii. Email address

b) Provide documentation to IRS, as requested, to support the Office of Management and

Budget’s (OMB) review of data collection. Data collection (candidate data as listed in Section 4.02 (3) (a)) is subject to OMB approval. The OMB approval process takes approximately 150 calendar days. The IRS will manage the OMB approval process;

however, the Contractor shall be required to provide documentation for the IRS’ submission to OMB in a timely fashion, as directed by IRS, to allow time for approval prior to implementation.

c) Establish an appointment confirmation, cancellation, and rescheduling process accessible to candidates both online and by telephone. Disclose any fees charged for cancelling or rescheduling appointments.

d) Establish a refund policy. At IRS’ discretion and approval, refunds may be granted in such situations as death, active military duty, medical incapacitation, inclement weather conditions, or other situations as determined by the IRS. See Exhibits and References, Reports, Standardized Monthly Metrics Reports, for reporting requirements.

e) Establish a process to cancel candidates’ testing appointments and timely notify candidates in the event of unforeseen circumstances that may impact their scheduled appointments such as test center closures, electrical or equipment failure, natural disasters, or inclement weather. The Contractor shall satisfactorily reschedule appointments at no charge to the candidate. See Exhibits and References, Reports, Standardized Monthly Metrics Reports for reporting instructions.

f) Develop, implement, and maintain an effective method to monitor and restrict the number of times each candidate registers, schedules, and is administered the examination. Each candidate shall be limited to four (4) testing opportunities per examination part during each testing window.

4.03 Test Administration

4.03.1 Test Centers and Test Administration

The following requirements shall be available to candidates located within the U.S. and internationally.

The Contractor shall:

1. Commence registration and scheduling beginning on March 1, 2020 and commence examination administration beginning on May 1, 2020.

2. Offer the examinations annually beginning on May 1 and ending on the following February 28

(February 29 in the year 2024). Examinations shall not be offered March 1 through April 30 while the examinations are updated.

3. Ensure the number and location of operational domestic test centers shall be sufficient to provide access to a minimum of 95% of the general continental U.S. population within 100 miles from their residences, according to current U.S. census data. All test centers where the EA-SEE is offered shall comply with the test center requirements in this section.

4. International test center locations shall be located, at a minimum, in Canada, China, Great

Britain, Hong Kong, India, Japan, Korea, and Taiwan. See Section 5.01, Historical Information, for historical international testing volumes by country.

a) The IRS may, at its discretion, instruct the Contractor to stop administering testing at any international location. Subject to the IRS’ approval, the Contractor may stop administering testing at any international location due to concerns about safety, security, or other reasons.

5. Ensure test centers adhere to strict security guidelines including candidate authentication, examination proctoring, and other measures established to protect test integrity.

6. Provide a professional test setting. Factors to be considered include, but are not limited to, adequate room capacity, environmental factors, equipment, lighting, parking, safety, and accessibility.

7. Administer proctored tests with qualified test administrators. Additionally:

a) The proctor-to-candidate ratio shall be 1:15 or better at all times (i.e., one proctor to no more than 15 candidates; 16 candidates require two proctors).

b) The Contractor shall provide the IRS written confirmation on an annual basis that test administrators completed any Contractor-required annual recertification training and requirements. The written annual confirmation shall be due to the IRS on the date of the Contractor’s pre-established recertification date. In the absence of any pre-established recertification date, the written confirmation shall be due to the IRS annually on the anniversary of the contract award date. See Exhibits and References, Reports, for

8. Ensure all candidates are tested under equally favorable conditions. Test administration shall be conducted in a practical and accessible manner. The Contractor shall:

a)…