2032H8-24-N-00008 Debt Collection Draft PWS.pdf

SECTION VI – PERFORMANCE WORK STATEMENT

VI. PERFORMANCE WORK STATEMENT

1 Background In accordance with Fixing America’s Surface Transportation (FAST) Act, that was signed into Public Law 114-94 on December 4, 2015, the IRS is authorized to refer certain outstanding inactive tax receivables to Private Collection Agencies (PCAs or “Contractors”) for tax collection services as described in this performance work statement.

2 Government Furnished Information The government will provide the following documents as part of this contract:

• PCA Policy and Procedures Guide (PPG)

• Quality Assurance Surveillance Plan (QASP)

• QASP Scorecard

3 Scope The purpose of this effort is to enlist the services of private collection agencies (PCAs or Contractors) to collect certain outstanding inactive IRS tax receivables as described in this performance work statement and the PCA Policy and Procedures Guide (PPG), Attachment 2.

The Contractor shall perform the duties outlined in the performance work statement and PPG in all States, territories and federal jurisdictions of the United States for the collection of federal tax debts. The debt or tax liability of a taxpayer sent to the Contractor for collection services is referred to as an "account" in this task order.

The IRS will electronically provide only the necessary account information the Contractor will need to perform the tax collection services outlined in this task order. The Contractor will not have access to IRS computer systems.

4 Limitations on Subcontractors Contractors are prohibited from using subcontractors to contact taxpayers, from providing any quality assurance services, or from composing debt collection notices pursuant to any qualified tax collection contract. Any activity under this qualified tax collection contract with the IRS that a Contractor is not going to perform itself should be clearly described in the Contractor's Operational Plan in order for the subcontracting to be allowed.

5 Contractor Key Personnel The Contractor’s Project Manager is responsible for the overall management and coordination of this order and shall act as the central point of contact with the Government. The IRS considers the Project Manager, whose expertise and knowledge is crucial for the success of the program, to be "key personnel." The Project Manager shall have full authority to act for the Contractor in the performance of the required services. The Project Manager and the Alternate Project Manager shall direct operational and managerial oversight of the collectors assigned to the IRS program. The Project Manager, or his/her alternate, shall meet with the COR to discuss problem areas as they occur. The Project Manager or his/her alternate shall respond within four hours after notification of the existence of a problem. The Project Manager and his/her alternate shall be able to fluently read, write, and speak the English language.

Prior to diverting any of the specified individuals to other programs, the Contractor shall notify the Contracting Officer's Representative (COR) 30 days in advance and shall submit justification, including proposed substitutions, in sufficient detail to permit evaluation of the impact on the program. A copy of any request shall be sent to the Contracting Officer. No diversion or substitution shall be made by the Contractor without the prior written consent of the

COR.

Contractor enters names of PCA Project Manager and Alternate Project Manager

Replacement of Contractor Personnel In the event the Contractor finds it necessary to replace any of the assigned key personnel during the performance of this task order, the Contracting Officer and Contracting Officer's Technical Representative shall be notified in writing. In cases of Contractor initiated reassignment of key personnel, notice shall be provided at least 15 calendar days prior to reassignment. This notice shall also include the resume(s) of the proposed replacement personnel. All replacement key personnel are subject to the prior written approval of the Contracting Officer.

The Contractor must notify the COR within 3 business days when a Contractor employee separates from the contract or the employer for any reason. The COR is required to notify the Personnel Security in writing of all Contractor employees who separate from the contract. The Contractor should immediately remove access to the IRS secured facility and PCA systems with IRS data for all PCA separated employees.

6 Delivery or Performance-Period Requirements.

The anticipated period of performance for this requirement is twelve (12) months for the base period plus four (4) 12-month option periods. This is a recurring requirement that constitutes a need for a 60-month task order. The period of performance is as follows:

Base Year: Date of award through 12 months Option Period 1: 13 months through 24 months Option Period 2: 25 months through 36 months Option Period 3: 37 months through 48 months Option Period 4: 49 months through 60 months.

7 System Requirements

Protections The Contractor's systems must ensure the privacy of taxpayer data. The Contractor shall establish and maintain its own computer system and software, which can accept, accommodate, and generate reporting data on all accounts.

The Contractor shall ensure that all IRS data are protected from unauthorized disclosure while on the Contractor's computer systems. The Contractor shall ensure that all account data are, at a minimum, partitioned off from other data maintained on the Contractor's computer system, are password protected and may only be accessed by Contractor personnel assigned to this project. The Contractor shall protect and maintain integrity of its system and IRS data.

The Contractor shall:

(a) Use end-to-end encryption (128bit; a single continuous encryption protection from the authoritative supply of data to its destination point. There will be no intermediate decryption performed, and the data will not be observable at any intermediate point.), FIPS 140-2 approved encryption

(b) Provide version control on all software changes

(c) Provide a backup facility for IRS data

(d) Adhere to W3C guidelines (for additional information, see http://www.w3.org/Protocols)

(e) Contractors storing or processing FTI shall employ FIPS 140-2 or later validated encryption on their primary storage devices (servers). This can be accomplished via Full-disk encryption or file level-based encryption.

The Contractor shall not:

(a) Store IRS systems applications or data on a computer desktop

(b) Use 'Cookies' for session management to store any taxpayer information

(c) Use 3rd party search engines maintained on the Contractor's system for external information mining

Access The Contractor's system shall implement project-specific local authentication and authorization within the application. The system may use LDAP for local authentication/ authorization for role-based access and personalization.

The Contractor's system shall provide the ability to manage / administer users, roles and functions as necessary to maintain appropriate access controls and adherence to IRS Privacy guidelines.

The Contractor shall have a System Administrator responsible for administering systems users, roles and functions.

The Contractor shall assign the following roles that must be held by different Contractor personnel:

(a) Security Administrator

(b) Systems Administrator

(c) Database Administrator

The Contractor shall provide IRS access to accounts maintained on the Contractor's computer system. The Contractor shall provide a system at the IRS' designated site, which shall be set-up and maintained by the Contractor. This system will be used by IRS for monitoring purposes only. The system will not be connected to the IRS' network, and file transmissions will not be performed by this system.

Access to the Contractor's systems shall include view access to data elements outlined by IRS, as well as all account activity. The Contractor shall provide a list of abbreviations used for their collection system.

Taxpayer account information will be accessible by the Contractor throughout the life of the task order in accordance with Section VII. The Contractor shall produce taxpayer account history information upon IRS request. The Contractor shall provide IRS with the capability to print this account history at the designated IRS site.

Uses The Contractor shall ensure that the data in its systems are used exclusively for collection activities related to IRS accounts. The information shall not be accessed by http://www.w3.org/Protocols the Contractor in connection with any other collection efforts on the same debtor under another contract.

The Contractor shall provide training, including a training manual, on how to use the Contractor's system, as needed by the IRS. The Contractor shall provide updates to the training manual when system changes are made.

The Contractor shall immediately document in its own computer systems all collection activity occurring on an account. The Contractor shall update IRS daily on activities as outlined in IRS-provided PCA Policy & Procedures Guide.

Data Transfers IRS will implement a secure data channel for the Contractor to transfer and receive data. The Contractor will need to register with the IRS to obtain the authentication and authorization information for using the data channel. The Contractor will initiate the inbound and outbound transfers.

The transaction files originating with the Contractor must use the XML schema. (data transfers)

The Contractor will require a client that supports either HTTPS or SFTP (Secure File Transfer Protocol) to access the data channel. Utilizing HTTPS requires purchasing a digital certificate. Utilizing SFTP requires generation of SSH -RSA key pair.

IRS will provide registration information and setup instructions for the client installation and configuration.

Recovery The Contractors shall maintain a written plan for recovering and re-establishing operations in the event of a disaster. The plan shall include a discussion on how the Contractor shall recover data, re-establish operations, and the timeframe associated with such recovery.

8 Systems Security Requirements The Contractor shall adhere to the Security and Privacy regulations mandated by Internal Revenue Service (IRS) and National Institute of Standards and Technology (NIST) security guidance on issues related to accessibility, accountability, and reliability. The Contractor's systems must ensure the authenticity, accuracy, accessibility, reliability, and accountability of the data contained in each transaction.

9 Mandatory Training Prior to beginning work under this task order, the Contractor shall train all Contractor employees and sub-contracted employees to ensure adherence to the Contractor's standard operating procedures, applicable laws and regulations, IRS policies, and the PCA Policy and Procedures Guide issued by IRS. The Contractor will provide, but not be limited to, the following IRS required training:

(a) Taxpayer rights

(b) Applicable aspects of sections 1203 and 1204 of the Internal Revenue Service

Restructuring Act of 1998

(c) Changes in operational procedures, laws or regulations as they are modified or updated

(d) State and locality debt collection and the successful completion of any State-mandated exams

(e) IRS video (Safeguarding IRS Confidential Information, A Guide for Contractors) and the IRS pocket guide (IRS Disclosure Awareness Pocket Guide for Contractors) pursuant to Treasury regulation 301.6103(n)-1 (c), notification requirements

A certification form for all training provided in support of this task order shall be signed by each employee and sub-contractor employee and maintained on file by the Contractor. The Contractor shall make certifications available for Government review at the request of the Contracting Officer or COR.

Prior to beginning work on this task order, the Contractor shall provide the Contracting Officer or COR a signed certification that all employees and sub-contractor employees have received the required training.

10 State and Local Licensing Prior to award, the Contractor shall meet all applicable State and Local licensing requirements and bonding/insurance requirements. Additionally, the Contractor shall be licensed to perform debt collection activities in all States, Territories, and Federal jurisdictions of the United States.

Copies of all licenses and/or bonds must be made available to the IRS either (1) upon request;

or (2) during compliance reviews, for the life of the contract. Contractors found not to be in compliance with state licensing and/or bonding requirements will be subject to termination.

11 Schedule of Deliverables Before beginning work on this task order, the Contractor shall provide the items and meet the following requirements detailed in the sections below:

DELIVERABLE DUE DATE COMMENTS

Background Investigation Packages

Within 10 calendar days after contract award for systems personnel, project manager, and other initial staff needing access to IRS data

• Within 15 calendar days of beginning training, all employees must have successfully completed IRS BI prior to beginning work on the IRS contract.

Operating Plan

Within 60 calendar days after contract award

• Revisions must be made within 10 calendar days after receipt of IRS comments.

• Periodically updated to align with PPG revisions.

• Changes must be approved by the IRS.

• Approved plans become part of contract language and must be adhered to.

Quality Control Plan Within 60 calendar days after contract award

• Revisions must be made within 10 calendar days after receipt of IRS comments

• May be incorporated in the Operating Plan

Letters Within 60 calendar days after contract award

• Revisions must be made within 10 calendar days after receipt of IRS comments

• Once approved, any proposed changes must be submitted for approval a minimum of 30 calendar days prior to planned use.

Telephone Scripts Within 60 calendar days after contract award

• Revisions must be made within 10 calendar days after receipt of IRS comments

• Once approved, any proposed changes must be submitted for approval a minimum of 30 calendar days prior to planned use.

Payment Arrangement Estimator

Within 60 calendar days after contract award

• Revisions must be made within 10 calendar days after receipt of IRS comments

• Once approved, periodic reviews will be conducted

Contractor Operating Plan The Contractor shall submit for IRS approval, a Contractor Operating Plan (COP) to satisfy all the requirements outlined in this contract. The Contractor will regularly update its Operating Plan to align with IRS and Contractor policy and procedural updates, including changes to the PPG. The Contractor shall specifically address: how it will satisfy the performance requirements in the Performance Work Statement (PWS) and PPG. At a minimum, the COP will include the following:

(1) Contractor General Information

a) Location and Hours of Operation

b) Key Personnel/ Management Organization Chart with roles and responsibilities

(Project Manager and Assistant Project Manager with resumes)

c) Points of Contact

d) Subcontractors (identify proposed use of subcontractors, their roles, responsibilities and location)

e) Standard Operating Policies and Procedures

(2) Systems and capabilities

a) Collection System for documenting and monitoring all account activity

b) Telephone System (Routing/Recording/Reporting/Monitoring)

c) Performance Management System to assess and report performance

d) Customer Satisfaction Survey

e) Access controls for all systems

f) Compliance with Publication 4812, Contractor Security & Privacy Controls

(3) Data and Physical Security

a) Protections Required for Tax Information and Official Use Only Information

b) Safeguards for Preventing Employee Browsing

c) Destruction of Tax Information and other records

d) Disaster Recovery Plan

e) Personnel Security

f) Compliance with Publication 4812, Contractor Security & Privacy Controls

(4) Account/Inventory Management

a) Strategy for inventory management (e.g., first in, first out, accounts requiring special handling, payment arrangement monitoring)

b) Skip Tracing (systems, tools, and methodology)

c) Call strategies and compliance with Telephone Consumer Protection Act

(TCPA)

d) Methods and types of telephone contacts (e.g., predictive dialer, robocall, answering machine, cordless devices, interpretive services)

e) Call analytics (systems, tools, and methodology)

f) Plan for managing inventory during “dead cycles”

g) Return accounts (I removed recall since the IRS does this)

h) Retention of accounts

(5) Correspondence

a) Proposed letter and print services

b) Mailroom - Receipt and control of all incoming and outgoing mail

c) Returned/Undelivered Mail (use of 2D/3D bar codes cannot be visible through window envelope)

d) Misdirected Payments, Tax Returns and Federal Forms

e) Incident Reporting

(6) Incident Management

a) Programs and controls

b) Penalty guide and corrective action plan

(7) Staffing

a) Use of newly hired versus experienced collectors (staffing plan)

b) Flexibility with staffing to accommodate fluctuations in inventory

(8) Training Plan

(9) Compensation/Incentives/Bonus Plan

a) Section 1204 compliant plans for all levels of staff (phone assistors, managers, supervisors, executives)

(10) Reports (description only)

a) Inbound Call Report

b) Outbound Call Report

c) Return Tracking

d) Payment Arrangement Terms

e) Pre-Authorized Direct Debit

f) Crosswalk

g) Incident Management

h) Monthly Invoice

i) Quality Review

j) Suspense

k) Active and Non-active Staffing

l) Unauthorized Inadvertent Disclosure

m) Corrective Action

(11) Licensing and Bonding Requirements

(12) Appendix- (if applicable)

a) PCA Exhibits

b) PCA Flowcharts

c) PCA Acronyms

Contractor Quality Control Plan The quality control plan will detail the contractor’s performance management system with processes to assess and report their performance to the designated IRS representative on a monthly basis.

The contractor shall establish and submit for IRS approval a complete Quality Control Plan to ensure the requirements of the contract, Quality Assurance Surveillance Plan (QASP), PPG, and Operating Plan are provided as specified. The contractor shall be held responsible at all times for ensuring that the functions and specifics of their Quality Control Program are fully and accurately implemented. The Contractor will regularly update its Quality Control Plan to align with policy or procedural updates, including changes to the PPG. The Quality Control Plan shall include, but not be limited to, the following:

(a) An inspection system covering the services stated in the PWS, QASP, and Operating Plan. The name(s) of the individuals who will perform the inspections shall be indicated.

(b) Deficiencies - A system for identifying and correcting deficiencies in the quality of services before the level of performance becomes unacceptable or the government points out the deficiencies.

(c) Documentation - An on-site file shall be kept of all inspections conducted by the contractor with any corrective action taken and an electronic copy emailed to the COR. This documentation shall be made available to the government during the term of this contract.

12 IRS Certification of PCA Readiness After the Contractor provides all deliverables and meets all requirements, the IRS will certify the Contractor’s readiness to begin work on this task order. Within 10 calendar days prior to receiving accounts and beginning collection activities, at a minimum, the IRS will certify PCA readiness in the following areas:

# Activity 1 Background Investigations (BIs)

BIs for PCAs

• Complete BIs for PCA staff working on contract – ensure Interim Clearance

BIs for PCA Sub-contractors

• Complete BIs for print vendors and any other applicable sub-contractors – ensure Interim

Clearance

2 Mandatory Training Mandatory Training for PCA and PCA Sub-contractor employees

• Mandatory training certifications provided by PCAs to CORs for cleared employees and sub-contractor cleared employees

Security Awareness Training (SAT)/Specialized IT Security Training (SITS)

• Applicable PCA and PCA sub-contractor IT employees SAT/SITS certifications completed and provided to CORs

3 Security

PCA Security Review

• PCA Cyber & Physical Security reviews complete – Plan of Action & Milestones (POAM) created for findings/follow-up items and reported quarterly to COR

Print Vendor Security Review

• PCA print vendor Cyber & Physical Security reviews complete – POAM created for findings/follow-up items and reported quarterly through PCA to COR

4 Deliverables Operating Plan

• PCA Operation Plan is complete and approved by IRS

Quality Control Plan (QCP)

• PCA QCP is complete and approved by IRS

Letters

• All submitted letters are approved by IRS.

Scripts

• All submitted scripts are approved by IRS.

PCA Payment Arrangement Estimator

• PCA created payment arrangement estimator is operating properly and reviewed for functionality and accuracy.

5 PCA Specific Incidents

• Incident tracking and reporting process in place

Quality Control Plan (QASP)

• Process in place for required monthly reporting.

Returns

• PCA process in place to systemically return cases to IRS, includes tracking and reporting.

Collection System

• System in place to receive inventory, track and monitor all case status

# Activity Payment Arrangement Estimator

• PCA created payment arrangement estimator is created, operational, and tested for functionality and accuracy.

Anti-Browsing

• PCA collection system methodology in place to ensure no browsing or un-authorized access

Web Portal Access

• COR and TA access to PCA system through web portal allowing capability to review accounts, listen to or capture recorded calls

Employee Compensation

• PCA employee compensation plan is approved and verified by IRS to ensure no 1204 violations

Records Retention

• PCA process in place to retain all records according to the PDC Record Retention Plan

PCLIA

• PCA provides information to COR to complete and submit for final approval to PGLD

13 Inventory

IRS Activity After Placement After assignment to the Contractor, IRS will stop all internal collection activity on the account assigned, e. g., the notice stream, telephone calls, and/or field contact.

However, notices required by law or statute may be sent by the IRS to the taxpayer (e.g., First Notice [aka Notice and Demand] on a new balance due module that arises or additional assessment on an existing module). Also, the IRS will continue with systemic offset and levy programs. The IRS will notify the Contractor on the daily transaction file of any amounts the IRS has received from any systemic offset or levy programs, so that a Contractor does not request a taxpayer to pay more than the actual amount owed. Updated account data, such as payment, credits, and payoff figures, are provided in the data files as described in the PPG.

Retention Period If the liability is not resolved, or a payment arrangement has not been established after 12 months from placement, the IRS will recall account. During the period of performance of this contract, IRS may change the retention period of accounts. When IRS changes the retention period, the Contractor will be provided advance notice.

Recycling Inventory Accounts that are returned by the PCA or recalled by the IRS may be recycled (or reassigned) to another PCA.

Account Types Accounts to be distributed to the Contractor under this task order will consist of delinquent tax accounts for individuals and businesses from the IRS inactive case inventory with exceptions identified in the legislation. Accounts placed with a Contractor may also include an associated delinquent return. Account balances will be comprised of combinations of assessed delinquent taxes, penalties, interest, and fees owed to the United States.

Implementation Phases The IRS does not guarantee the volume, dollar amounts, composition of the inventory placed for collection, or the number of cases resulting in account resolutions.

13.5.1 Incumbent Contractor

Incumbent contractors will receive a mix of segments including both individual and business tax liabilities.

13.5.2 New Contractor

New contractors will receive inventory in the following Phases.

Phase 1 – simple, low dollar individual tax liabilities (e.g., wage earner and self-employed, taxpayer filed Form 1040)

Phase 2 – complex, individual tax liabilities (e.g., unagreed compliance assessment, trust fund recovery penalty)

Phase 3 – business liabilities (e.g., sole proprietor, partnership, corporation)

The IRS will assess Contractor performance and completion of training before delivering Phases 2 and 3. After successful performance of work in all phases, the new contractor will receive a mix of all segments of work, which will vary depending on availability.

Method of Account Dissemination The IRS will electronically transfer accounts to the Contractor. File transfers wilI be accomplished via the IRS secure file transfer gateway utilizing Axway's secure file transfer products. The contractor shall use HTTPS or Secure File Transfer Protocol (SFTP) clients to communicate with the IRS secure file transfer gateway and transfer inbound and outbound files. The Contractor must have internet access, HTTPS or SFTP clients, and registered accounts with the IRS to support the selected file transfer method. The IRS will provide finalized registration details, secure file transfer procedures, inbound/outbound access details, and data exchange formats/ attributes at the contract award.

During the period of performance of this task order, IRS may change the account distribution method. When IRS changes the account distribution method, the Contractor will be provided advance notice.

Frequency of Account Distribution The IRS will distribute accounts quarterly, or as often as weekly, to the extent accounts meeting placement criteria are available for placement from IRS inventory. The actual rate of placement (and volume) will be dependent on a number of factors which will include Contractor performance, ability to manage new inventory, and quality control.

IRS will only place accounts when all activities (including IRS support activities) can sustain additional account placements.

Volume of Accounts IRS does not guarantee placements at any volume for any period of performance under the initial task order term or option periods. The IRS reserves the right to modify the actual placement volume up or down at its discretion and makes no guarantee as to actual placement volume.

The volume of inventory (and frequency) will be dependent on a number of factors which include availability of inventory, Contractor performance, and ability to manage new inventory.

Recall of Accounts IRS reserves the right to recall any or all accounts at any time for any reason. Certain tax receivables are not eligible for collection under qualified tax collection contracts pursuant to IRC section 6306(d) and will be recalled. Refer to the PCA Policy and Procedures Guide (PPG) for specific required actions.

The Contractor will cease all collection activities on an account that was recalled.

14 Collection Services The collection services outlined in this section support the IRS Private Debt Collection program objectives:

PDC Program Objectives

Taxpayer Protection Apply tax laws in a manner that is consistent with IRS collection practices

Taxpayer Satisfaction / Experience

Empower and enable taxpayers to understand and meet their tax obligations

Operational Performance

Advance data access, usability, and analytics to drive innovative and informed decisions and improve operational outcomes

The Contractor shall attempt to collect in full the total amount of tax, penalty and interest owed for all assigned accounts, as outlined in the PPG.

If the Contractor is unable to collect the full amount due in one payment, the Contractor shall offer a payment arrangement, per the PPG.

In no event shall a Contractor take, imply, or suggest enforcement activity against a taxpayer, business, or third party. Enforcement activities can only be performed by IRS employees.

Inform Taxpayer of Case Assignment and Other Actions The PCA must inform the taxpayer that the account has been placed with a private collection agency contracted by the Internal Revenue Service (IRS), using an IRS approved Initial Contact Letter (ICL). Prior to initiating any telephone contact, the Contractor shall send the ICL to the taxpayer(s) and POA (if applicable).

Other actions that require the contractor to inform the taxpayer by letter include;

returns, recalls, establishing a payment arrangement, or terminating a payment arrangement. Refer to the PPG for all required letters, content and timing for issuance.

All PCA letters sent to taxpayers and/or their representatives must be approved by the IRS. The PCA letters shall not imply that the Contractor is the Internal Revenue Service or a Federal entity. PCA letters shall contain the approved IRS Privacy Act Statement for Private Contractors. The Contractor letters submitted for approval must be exact facsimiles of actual letters to be generated for taxpayer contacts. They should include all letterhead, formatting and fonts that will be used. A text only file is not acceptable material for review. The Contractor shall submit letters for approval 45 calendar days after contract award. The IRS will review and return with comments within 45 calendar days of receipt. Once approved, any proposed changes must be submitted to the IRS for additional approval at a minimum of 30 days prior to the planned use. In no case will the Contractor use a letter that has not received unqualified clearance by the IRS. The IRS review of Contractor letters will include evaluation of visual presence as well as language and tone. Any change made to an IRS-approved letter requires approval by the IRS, prior to use.

Locate the Taxpayer The Contractor is authorized to perform skip tracing actions to locate a taxpayer. The Contractor will define all skip-tracing actions in their IRS approved Operational Plan.

Contact the Taxpayer by Phone All telephone scripts must be approved by the IRS prior to making any phone contact.

When the PCA reaches a taxpayer or business by phone, the PCA shall attempt to verify all required authentication data as defined in the PPG. Authentication data must be verified on all incoming and outgoing calls before discussing any account information and attempting collection. At a minimum, the PCA must provide interpretive services for the following foreign languages: Spanish, Chinese, Russian, Korean, and Vietnamese.

The taxpayer may authorize another individual to act on their behalf through the execution of a Power of Attorney (POA) in accordance with IRS procedures. Once a POA has been received, the Contractor must contact the POA to discuss and resolve the taxpayer's account. Refer to the PPG for more information on taxpayer representation.

Process Incoming Mail/Correspondence The Contractor shall establish a P.O. Box for the receipt of correspondence, solely for IRS contract purposes. The Contractor shall process routine incoming correspondence (date stamp incoming mail, prepare and forward responses where necessary or respond via telephone contact) within ten business days of receipt. If response to the correspondence is via telephone contact, such contact must be documented in the case notes on the Contractor's collection system. The Contractor shall receive and maintain correspondence at the Contractor’s site for the entire period of performance and for a period to be defined in the PCA Policy and Procedures Guide. The PCA will always properly secure imaged documents and ensure accessibility to the IRS as explained in the PPG.

Any federal tax return, IRS form, or misdirected payment received directly by the Contractor shall be immediately forwarded to the IRS by express mail (24-hour service) on the day of receipt. Refer to the PPG for specific guidance.

Request Full Payment of Federal Tax The Contractor will request full payment of the total Federal tax owed. If such request cannot be met by the taxpayer, the Contractor will offer the taxpayer a payment arrangement providing for full payment of the total Federal tax. Guidelines for requesting payments and establishing a payment arrangement are provided in the

PPG.

Monitor Accounts for Payment The Contractor is responsible for monitoring the taxpayer’s compliance with their commitment to pay. This includes one-time payments and payments made in installments per an established payment arrangement. Guidelines for monitoring accounts for payment are provided in the PPG.

Provide Available Payment Methods The Contractor shall provide the taxpayer all available payment methods as set forth in the PPG. Electronic payment methods are preferred. The Contractor shall instruct taxpayers that all mailed payments are to be sent directly to the IRS and must be made payable to the United States Treasury.

The Contractor is strictly prohibited from soliciting the direct receipt of funds from taxpayers and shall direct all payments resulting from collection activities to the IRS.

Any payment received directly by the Contractor shall be immediately forwarded to the IRS, as described in the PPG.

If a Contractor employee steals or embezzles a tax payment the Contractor is liable for the loss of taxpayer funds.

Inform the Taxpayer of Alternative Collection Resolutions The PCA shall provide alternative collection resolutions when the taxpayer is not able to full pay or establish a payment arrangement within established guidelines. Refer to the PPG for additional information.

Document the Record of Account The PCA will document all actions taken or actions promised by a taxpayer in the record of account. The record of account should contain all communications and enough information so that any person reading it can easily determine what decisions were made, why those decisions were made, what actions were taken and what further actions are required to resolve the case. Refer to the PPG for additional information.

Report Indications of Improper Disclosure and/or Breach Upon discovery of a possible unauthorized disclosure of Federal tax data by a Federal employee, Contractor employee, or any other person, the individual making the observation or receiving the information shall contact the IRS COR and the appropriate

IRS oversight body. Refer to PPG for further requirements regarding unauthorized disclosure.

Pursuant to OMB breach notification requirements for Federal agencies, the contractor agrees to notify the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) if a breach of personally identifiable information as defined by OMB 07 -16 occurs in the performance of this contract within one hour of discovery of the breach.

OMB 07-16 provides that a "breach" includes the loss of control, compromise, unauthorized disclosure, unauthorized acquisition, unauthorized access, or any similar term referring to situations where persons other than authorized users and for another than authorized purpose have access or potential access to personally identifiable information, whether physical or electronic.

The contractor is required to notify the IRS Computer Security Incident Response Center (CSIRC) by calling 1 -866-216-4809, the Treasury Inspector General for Tax Administration (TIGTA) by calling 1 -800-366-4484, and the IRS Contracting Officer Representative (COR) for this contract no later than one hour after any discovery of either a breach (as defined by Office of Management and Budget guidance in OMB 07-16) or an unauthorized disclosure of (1) tax return or return information as defined by 26 USC 6103, or (2) of Privacy Act information as defined by 5 USC 552a, or (3) of Personally Identifiable lnformation (PII) that requires protection pursuant to the Office and Management and Budget as described in Memorandum 07-16.

Manage Disputes/Cases Requiring Special Processing In response to collection efforts, taxpayers sometimes dispute the propriety of the collection efforts. Disputes typically include a taxpayer claiming that the debt was never incurred, or the balance due is incorrect or was fully satisfied. When the Contractor receives a dispute, the Contractor should attempt to resolve the dispute using the information provided by the IRS. Refer to the PPG for specific guidance.

The PPG explains some of the special processing circumstances the PCA employee may encounter. Circumstances may include: taxpayer is incarcerated, or a victim of identity theft, or impacted by a natural disaster. When special circumstances are encountered, the PCA will follow the guidance in the PPG. If a situation is encountered and is not specifically addressed in the PPG, the PCA may contact the technical analyst for guidance.

Identify and Report Incidents and Complaints The Contractor is responsible for identifying and reporting all incidents and complaints to the appropriate function(s) depending on incident type. Refer to the PPG for complete instruction.

Incidents can include an allegation of rude or unprofessional behavior, intimidation, or harassment; or a statutory violation of laws and regulations such as the Fair Debt Collection Practices Act (FDCPA), the Taxpayer Bill of Rights, and Privacy and/or Disclosure laws. Incidents may be identified through any form of communication including in-person or by telephone, mail, email, fax, and internet.

The Contractor must provide taxpayers wishing to complain or initiate an incident with regards to the Contractor the telephone number, mailing address, and Internet address for the TIGTA - Office of Investigations, in writing and/or verbally, if appropriate, during conversations with the taxpayer.

All identified incidents must be taken seriously and reported immediately as validated incidents may have a negative impact on the Contractor’s performance.

Suspend Accounts The Contractor may be informed by the taxpayer (or through research) of circumstances that would meet legislative exclusion while the case is assigned. For example, the taxpayer may state they filed (or will file) an offer in compromise or bankruptcy, but the IRS has not recalled the account. The Contractor shall suspend all collection action for 60 calendar days from date taxpayer notifies the Contractor of the circumstance. This allows time for the taxpayer to submit an offer in compromise or the PCA may request the IRS to research the claim that the account should be excluded. If the IRS validates the legislative exclusion, the IRS will recall the case. If after 60 calendar days the case is not recalled, the Contractor shall resume collection. See the PPG for additional information.

Return Accounts The criteria for returning accounts is detailed in the PPG. The IRS will not replace returned accounts with additional account placements.

Perform Quality Reviews The Contractor will sample cases involving telephone calls and other case actions on each employee as detailed in the PPG.

Provide Monthly Reports The Contractor is required to provide the IRS monthly performance management reports per specifications in the PPG.

Provide IRS Access The Contractor must provide the capability for the IRS to perform quality audits on IRS accounts through direct, secure access to the Contractor's collection systems. The Contractor shall provide training to the IRS on the Contractor's collection systems, and supply software, hardware, and establish connectivity at IRS site(s) approved by the COR to the Contractor's collection systems at the Contractor's expense.

The Contractor must provide accessible replay of automated call recording of all taxpayer calls to permit the IRS to perform quality audits of collection activities and assess call quality on IRS accounts. If call recording is provided for audit purposes, the IRS must approve the sample size and account criteria used to select calls or collectors for auditing/ quality reviews. The Contractor must inform the taxpayer calls may be recorded prior to disclosing account information.

The contractor must provide the IRS access to monitor live phone calls for the duration of the contract.

The Contractor shall make available at its IRS collection location private space that contains the necessary office furniture, and telephone lines for accessing the

Contractor's systems for use by the IRS representatives while conducting on-site compliance reviews.

Provide Support for IRS Site Visits, Reviews, and Audits The IRS will periodically conduct operational reviews, site visits and other audits. The Contractor's Project Manager shall be available to the IRS staff for the duration of these reviews. If significant instances of non-compliance are found, or if changes are made by the Contractor that may affect performance in accordance with the task order and the Contractor's approved Operational Plan, a follow-up or additional review may be conducted.

The work performed by the Contractor under this contract may be audited by TIGTA or the Government Accountability Office (GAO). The Contractor's Project Manager shall be available to ensure that TIGTA or GAO receives the support and information it requires to complete the audit. The Contractor shall provide complete access to TIGTA at the facility where the IRS contract is being administered. The Contractor shall provide TIGTA staff access to Contractor employee personnel files, without subpoena, for employees working on the IRS contract.

Customer Satisfaction Survey The Contractor will invite taxpayers meeting the Right Party Contact (RPC) criteria to take part in an interactive voice response (IVR) customer satisfaction survey which will be conducted by an IRS procured contractor. The IRS will assess the results as defined in the Performance Requirement Summary and Quality Assurance Surveillance Plan (QASP) Scorecard. Refer to the PPG for more information about the survey.

15 Task Order Expiration and Close Out of Accounts If the Contractor’s current task order expires and the Contractor is awarded a subsequent task order by the IRS, the Contractor may retain the accounts currently in their inventory.

If the Contractor's current task order expires and the Contractor is not awarded a subsequent task order by the IRS, the accounts will be recalled regardless of their status.

The Contractor shall keep record of account information including documentation of all actions taken or actions promised by a taxpayer and all communications (letters and telephone call recordings) contained on contractor computer systems for 12 months after expiration of the task order or until such time the IRS determine the Contractor no longer needs the account information as evidence in connection with any controversy known to the Contractor. After the 12 month period, the Contractor shall, according to Federal and/or State laws, destroy or dispose of, in a manner that will prevent any unauthorized disclosures, all records containing personally identifiable information, which are not to be returned to IRS. The Contractor may be liable for criminal penalties as specified in the Privacy Act (Subsection (I)) for failure to meet these requirements.

The IRS will continue to distribute payments to PCA based on the balance between commissionable transactions minus non-commissionable transactions, including dishonored payments, per the terms of the contract (Section I, 2.1) for 18 months beyond the expiration of this contract and any extensions.

16 Final Copies of Reports and Case Database The Contractor shall give the IRS any paper or electronic copies of files or reports within the close down phase, which is the 30 calendar days prior to the expiration of the contract. The Contractor shall destroy any and all IRS "Official Use Only" documents and other proprietary IRS documentation provided to the Contractor under this contract.

17 Laws, Regulations, and Standards Governing Collection Activity The Contractor shall indemnify and hold the Federal Government harmless from any and all third-party liability, loss, damages, claims and/or other expenses, including but not limited to attorney's fees (whether incurred before or after litigation has commenced) and court costs, for Contractor activities arising under or related to the task order. The Contractor is not authorized to represent the interests of the United States in court, or to otherwise provide legal services for or on behalf of the United States. In no case will the government be liable for a wrongful act of a PCA or their employees.

The Contractor shall comply with all applicable Federal and State laws. The principal Federal statutes and regulations currently governing collection activity on Federal tax debt are listed below. IRS will monitor the Contractor's collection activity and failure to comply with applicable laws and regulations shall be considered a breach of contract. Any laws enacted or regulation published after award of this contract, which governs the collection of federal taxes, including but not limited to modifications or additions to the statutes described herein.

The laws and regulations listed below are available for review upon request by the Contractor to the Contracting Officer.

Internal Revenue Code Sections 6103(n), 6306, 7213, 7213A, 7431, and Treasury Regulations Section 301.6103(n) -1 (disclosure, disclosure related penalty provisions, and disclosure implementing regulations).

18 USC Sections 641 and 3571.

Taxpayer Bill of Rights, Subtitle J of Title VI of Technical and Miscellaneous Revenue Act of 1988 (TAMRA), PL 100-647 (sections 6226 through 6247).

Taxpayer Bill of Rights 2, PL 104 -168, 110 Stat. 1452 (1996).

Federal Claims Collection Act of 1966, PL 89 -508.

Debt Collection Act of 1982, PL 97 -365.

Debt Collection Improvement Act of 1996, PL 104 -134, 31 USC§ 3701 et seq.

Fair Debt Collection Practices Act, PL 95 -109, 15 USC§ 1692 et seq.

Privacy Act of 1974, as amended, PL 93 -579, 5 USC § 552a.

Federal Claims Collection Standards, 31 CFR Parts 900 -904 (65 Fed. Reg. 70390, Nov.

22, 2000).

Treasury Financial Manual, Volume I, Part 5, Chapter 4000 (Making Deposits) and

Volume I, Part 6, Chapter 8000 (Cash Management), as amended.

Internal Revenue Service Restructuring and Reform Act of 1998, PL 105 -206 (RRA 98).

Civil Rights Laws, to the extent applicable, including the following:

o Title VI or VII of the Civil Rights Act of 1964;

o Title IX of the Education Amendments of 1972;

o The Age Discrimination in Employment Act of 1967;

o The Age Discrimination Act of 1975;

o Section 501 or 5 04 of the Rehabilitation Act of 1973; and o Title I of the Americans with Disabilities Act of 1990.

Protecting Americans From Tax Hikes (PATH), PL 114 -113, Sec. 401(a)(Dec. 18, 2015) Fixing America's Surface Transportation Act (FAST), PL 114-94 (Dec. 4, 2015) Taxpayer First Act, PL 116-25 (July 1, 2019)

18 Internal Revenue Code Provisions The following is a list of applicable Internal Revenue Code Provisions. This is a representative list and is not all encompassing or exhaustive.

Protections provided by the Fair Debt Collection Practices Act (15 USC section 1692 et. seq.)

The Fair Debt Collection Practices Act (FDCPA) applies to private collection agencies.

Certain provisions of the FDCPA have been incorporated into section 6304 of the Internal Revenue Code (I.RC. or Code) and apply to IRS employees. PCAs shall be fully subject to all requirements under the FDCPA, including those specifically applicable to IRS employees under section 6304 of the Code. PCAs are prohibited from communicating with taxpayers at an unusual or inconvenient time or place, or engaging in conduct that is oppressive, or abusive.

Protections Against Unauthorized Disclosure (IRC sec. 61303) Sections 6103(n) and 7431(a)(2) of the Code currently permit a taxpayer to pursue legal action against any person who is permitted to receive tax payer returns or return information as defined in IRC Section 6013(b) for purposes of assisting in tax administration, but who unlawfully discloses that information. Contractors are persons within the meaning of section 6103(n). Criminal penalties also may be imposed under I.RC. sections 7213 and 7213A. These provisions shall apply to PCAs. Treasury regulations section 301.6103(n) -1 places certain and clear requirements on the disclosures of tax returns and return information to Contractors; no re -disclosures by the Contractor are allowed without prior written approval from the IRS. The regulation places specific notification requirements upon the Contractor as well as allows IRS to set safeguards for compliance by the Contractor (and any subcontractor). This provision shall apply to PCAs and the IRS will be required to submit annual reports outlining the safeguards in place at the PCA locations to prevent unauthorized disclosures.

Protections with Respect to Third-Parties Under no circumstances can the PCA divulge any information about the taxpayer, his or her account, or the nature of the call to anyone other than the taxpayer or their authorized representative. Skip tracing that does not result in the divulging of information and that is consistent with the limitations found in 15 USC section 1692(b) is permissible, provided the specifics are documented in the PCAs Operational Plan and approved by the IRS. See PCA Policy and Procedures Guide for definition and reporting requirements.

Protections with Respect to Communications PCAs shall be required to comply with the Code provisions governing notices reflecting balances due, penalties, and interest (I.RC. sections 6631, 6751(a) and 7522). In addition, PCAs shall be required to comply with Code and Internal Revenue Manual provisions governing taxpayer interviews by employees, I.RC. section 7521.

Protections against Conduct that Violates Minimum Standards

Section 1203 and 1204 of RRA98 prohibit certain specified conduct by IRS employees, including conduct in connection with the collection of unpaid tax.