II_1_Pilot IRS FSA-4400000-21-0001 RFP.pdf

RFP-FSA-4400000-21-0001

Background and Summary:

The Bureau of the Fiscal Service (Fiscal Service) is part of the U.S. Department of the Treasury (Treasury). Its mission is to promote the financial integrity and operational efficiency of the federal government through exceptional accounting, financing, collections, payments, and shared services.

Retail Securities Services (RSS) is housed within Fiscal Service and issues, services, and redeems United States Savings Bonds in both electronic and paper form, as well as marketable Treasury securities sold in electronic form directly to retail investors. Fiscal Service’s current Strategic Plan includes identifying and promoting emerging technologies with the potential to modernize the current state of our savings bonds records.

One of the priorities for Treasury is to help owners cash matured, unredeemed savings bonds or confirm there are open bonds associated with their social security numbers (SSN) or names. The total outstanding matured unredeemed debt (MUD) held by Treasury is approximately $25.2 billion (approximately 68.4 million bonds). Congress has appropriated funding to digitize the MUD related bonds records in order to enhance access to the data and ultimately help resolve the outstanding debt.

Introduction and Goals1 Introduction:

The federal government struggles at times with identifying ways to test, purchase, and deploy innovative technology solutions. A large function of this is how long it takes to not only purchase the actual solution, but also test it, provide feedback, and ultimately decide how (and whether) to deploy the solution. In other words, this is not simply a ‘how quickly can we buy it’, but also a ‘how do we test it and decide whether or not to fund it for deployment’. There are also times when the federal government prescribes a specific approach to a solution, and then asks who can do it best, and for the lowest price. This can limit innovation, and is often not the best approach when looking for emerging technologies and how their inclusion can benefit the government.

Goals:

Pilot IRS has three goals: 1) to promote innovative responses to challenges; 2) to broadly communicate areas of interest in the innovative solutions and technologies arena; and, 3) to create a streamlined progression from concept to prototype, testing, and limited deployment that allows for incremental funding decisions for promising solutions and technologies.

Goal 1 - Promote Innovative Responses to IRS Challenges

Pilot IRS is predicated on the concept that a major hurdle to doing business with the federal government is a perceived (or otherwise) lack of pertinent information and a lack of direct and near-term feedback on technologies and proposals. In order to promote innovative responses to the challenges that the government faces, Pilot IRS will focus on providing information throughout the process regarding its requirements (to include direct engagement with various end-users), and providing direct feedback on proposals in a matter of weeks rather than months.

Goal 2 - Broadly Communicate Challenges and Technologies that Interest Fiscal Service

Prior to any funding decisions, Pilot IRS will broadly communicate the challenges it is facing, as well as any initial thoughts on promising solutions/technologies/approaches. Because of its mission, the federal

1 A significant portion of the text included in this section applies to the overarching Pilot IRS approach, and has been included in previous documents. It is being provided again, with minor edits for the current SC, to support those who may not be familiar with the concept.

government cannot share all of the information about how it addresses these challenges.

Goal 3 - Streamlined Progression from Concept to Prototype, Testing, and Limited Deployment

A frequent problem within the federal government occurs, ironically, when a pilot technology/solution has been particularly successful within an agency. Federal procurement rules preclude (with some exceptions) identifying a particular technology or firm for funding based on a previous, separate contractual arrangement, regardless of how successful it may have been. By identifying streamlined submission/evaluation procedures and a structured progression from concept to prototype, testing, and limited deployment using phases, Pilot IRS seeks to avoid many of these issues.

The specific approach/process for each Solution Challenge (SC) and its respective phases will vary, but in general, each phase will build on the previous one, and funding amounts and durations may increase or decrease as phases progress. Most SCs will include an initial brief written proposal. Rough scopes of work and funding ceilings for all phases will be proposed during the initial response, with the understanding that additional clarity will be established at the end of each preceding phase. In other words, the specifics of the requirements/cost for Phase 2 will be established as part of the work completed in Phase 1. Depending on results and mission priorities, the government will decide to fund all, some, or none of the project at each phase.

For those who are familiar with traditional government procurements, Pilot IRS will appear substantively different from how the government normally buys technology.

To be fair, it is.

This type of approach is more often used in research and development environments, but there are existing regulations that allow federal agencies to buy commercial items in a manner similar with how the private sector would. Pilot IRS will aggressively pursue a streamlined and cost-effective approach to testing and deploying technology solutions that will have an immediate impact on the government’s mission.

Thank you for your interest, and welcome aboard.

Solution Challenge (SC) Four – Fiscal Service Microfilm Digitization

This solicitation is for digitization of approximately 2.1 billion records dating January 1974 – October 1993. This data is available in microfilm format. There are approximately 177,000 reels of microfilm representing the January 1974 – October 1993 issue stub records, which contain savings bond and owner information. The microfilm is in varying condition. Some issue stubs are of poor quality and may make the process difficult. There are a variety of savings instruments with different styles of inscriptions and information on the front of bonds and issue stubs. Some bonds offered Tax Identification Numbers (TINs), including SSNs and Employer Identification Numbers (EINs). Others merely show an address and a name. The Government considers TIN, Denomination, Serial Number and Series to be the most critical fields that are to be extracted.

There are no specific solutions or approaches that are being requested; rather, any approach which is focused on the two goals of the solicitation will be considered. The two goals are:

• Convert approximately 2.1 billion images contained on approximately 177k reels of original silver microfilm to digital images and extract up to 15 data fields from each issue stub.

• Make extracted images and corresponding data available to Government so that it can be used to help identify bond owners.

Fiscal Service will consider any methods of image and data extraction. We do anticipate different approaches among the participating vendors. Relative to Goal 1, we are seeking extracted data that is at or near the Government’s desired accuracy levels delivered in a format defined by the Government from all vendors. Relative to Goal 2, vendors will be required to provide a user interface on their infrastructure that will allow the Government to perform Quality Assurance (QA) reviews for acceptance of data. The Government will provide Microsoft Data Box periodically to transfer accepted data from the vendor’s infrastructure to the Government.

Phases, Funding Levels and Deadlines:

Phases - There will be two (2) Phases for this SC, as set forth below. It is important to note that the amounts/durations set forth below are Not to Exceed (NTE) amounts/durations. Additionally, the specific efforts and amounts for subsequent phases will be defined at the end of the current phase. In other words, the proposed duration and amount for Phase 2 will be part of the deliverables due at the end of Phase 1.

Phase 1 – Ramp-Up / Initial Deployment: Extraction of Initial Image and Data Set (NTE $750k / 9 months)

=> Phase 1 will consist of an 9 month period that will include 1 month for clearing contractor staff through the Fiscal Service security process; 1 month to arrange for storage and accept delivery of microfilm – the Government’s current storage vendor will deliver microfilm to each vendor’s storage facility by the end of the 2nd month; 4 months for a ramp-up period where the vendor will build and perfect their processes; and a 2 month initial production deployment of vendor image and data extracting process; followed by 1 month period for Government to complete QA and accept transfer of data. In the event that the contractors are not cleared within the timeframe allotted a no-cost extension may be issued. The Government anticipates that more than 1 vendor will be selected for Phase 1. Vendors will each be given 5k reels of microfilm (approximately 50-60 Million issue stub images) to extract images and data from. After the first month of the initial production deployment of the extraction process, vendors will make the images and data available to the Government. The Government will be verifying accuracy rates monthly per the rates in the Quality Assurance Surveillance Plan (QASP) attached. The averages will be reset on a monthly basis. The Government will provide a Microsoft Data Box monthly to transfer accepted data from the vendor’s infrastructure to the Government. The Government will coordinate the delivery and return of the 5k reels for Phase 1 (see additional requirements in Appendix A and B).

=> If selected, a contract action for Phase 1 funding will be provided no more than 30 calendar days after selection. Specific deliverables for Phase 1 funding will be based upon Government requirements, but a standard deliverable for all Phase 1 actions will be a Phase 2 proposal. A subcontracting plan will be required to be submitted by all other than small contractors if selected for Phase 2.

Phase 2 - Full Scale Production Extraction of Images and Data (NTE $6.75M / 12 months)

=> At the end of Phase 1, vendor(s) shall provide the Government their Phase 2 proposal. The Phase 2 proposal shall show in detail their capabilities and plan to complete Phase 2 based off their results and discoveries from Phase 1. The number of reels to be completed in Phase 2 will vary for each vendor based on what the vendor shows they are capable of in their proposal for Phase 2. At that point, the Government will decide bi-laterally whether to move forward with the Phase 2 optional CLIN. Phase 2 will consist of a 12 month period where the vendor(s) will extract images and data from the remaining reels in a production environment and make the images and data available to the Government. The

Government’s current storage vendor will deliver microfilm to each vendor’s storage facility at the beginning of Phase 2. As images and data are made available, the Government will continue verifying accuracy rates monthly, each month the averages will be reset. Once the accuracy rates are verified to meet the acceptable levels specified in the QASP, the Government will provide a Microsoft Data Box periodically to transfer accepted data from the vendor’s infrastructure to the Government. The Government will coordinate the delivery and return of the microfilm reels for Phase 2 (see additional requirements in Appendix A and B).

=> Selections and funding for Phase 2 will be made within 1 calendar day from the end of Phase 1.

Specific deliverables for Phase 2 funding will be based upon the Government requirements, but a standard deliverable for Phase 2 will be completion of all reels.

Deadlines –Proposals are due 04/22/2021 @ 08:00AM EST. No late submissions will be accepted or considered or evaluated. Fiscal Service expects to provide approximately $4.5M in FY21 funding across all solutions (based on the maximum duration of Phase 1, this will not include funding for Phase 2).

Proposals are due to purchasing@fiscal.treasury.gov by the stated due date.

=> Responses will be evaluated as follows, vendors shall submit a written proposal (no more than 5 pages in length) and address the goals stated above for this SC as well as how the vendor will address the requirements in the attachments and appendices.

=> Based on these written submissions, Fiscal Service will select responses for Stage 2, oral presentation or pitch (virtual/over the phone, lasting 30 minutes), during which Fiscal Service will ask questions and the respondent will present a funding level and duration, along with the general technical approach, ROI, etc. It is important to note that although these questions will be similar in concept, they will be dependent on the information provided; in other words, there will not be a ‘standard’ list of questions. If selected for Stage 2, presentations are anticipated to take place within 10 business days after the solicitation closing date. Award/funding decisions will be made after the completion of Stage 2.

Proposals will be evaluated in terms of technical aspects and price, relative to how they address the goals of this SC. Technical and price proposals must be submitted as two separate documents/volumes. Acceptable formats are PDF, Word, and Excel. The 5-page proposal limit applies only to the Technical portion of the proposal. Price proposals must include pricing for all contract phases/periods identified within this solicitation and do not count against the 5-page limit. The pricing proposal shall address individual category submissions or any combination of categories such as, but not limited to: software licensing cost, microfilm storage costs and data extraction costs.

Evaluation of Responses and Basis for Award:

The primary goals of this Solution Challenge are:

1) Convert approximately 2.1 billion images contained on approximately 177k reels of original silver microfilm to digital images and extract up to 15 data fields from each issue stub.

2) Make extracted images and corresponding data available to Government so that it can be used to help identify bond owners.

The Government intends to make more than one (1) Firm-Fixed-Price award resulting from this solicitation to the vendor(s) whose offer represents the best value to the Government. Comparative evaluations in accordance with FAR 13.106-2(b)(3) will be used to determine the best value based on:

Technical (capability of the solution to meet the primary goals), Past Performance, and Price. For price evaluation purposes, the total evaluated price will include the base period and all option periods.

mailto:purchasing@fiscal.treasury.gov mailto:purchasing@fiscal.treasury.gov

Evaluation of option periods does not obligate the Government to exercise the option(s).

Some government procurements will include longer/greater maximum page limits, or adjectival ratings for a series of technical evaluation factors. Pilot IRS uses different, existing authorities in FAR Subparts

12.6 and 13.5 that govern federal procurement. Selections will be made based on realistic solutions that offer the greatest potential ROI, at the lowest potential cost with appropriate consideration given to the Technical, Past Performance, and Price.

NAICS and PSC:

Although this solicitation aims to limit unnecessary terms and conditions, there are some which are part of virtually every federal procurement. Northern American Industry Classification System (NAICS) Code: 518210 Data Processing, Hosting and Related Services. Product Service Code (PSC) is: R617 Electronics Records Management Services.

Security The Vendor shall comply with the security requirements listed in Attachment A - Security Requirements

System for Award Management (SAM):

Successful vendors not already registered in SAM will be required to register prior to award. All awardees shall be registered in SAM prior to award. If contractors are not registered in SAM, they will not be eligible for award. Information regarding SAM registration is available at https://sam.gov.

Reimbursement for Proposal Generation Costs:

The Government will not pay for any direct or indirect costs associated with generating responses to this solicitation.

Compliance:

If a response does not adequately address this SC, or includes elaborate responses or extensive marketing materials that aren’t relevant, the Fiscal Service will stop reviewing it and will NOT consider it for award.

Intellectual Property:

Currently, the Fiscal Service does not intend to request retention of any intellectual property resulting from or providing the basis for work under this SC, with the exception of the ability to continue using the solutions resulting from government funding and a non-exclusive perpetual royalty-free license to any source code developed with this funding. Notwithstanding, intellectual property terms are negotiable, and the Fiscal Service intends to use the results of this effort as broadly as they can, to include potentially working with other Treasury bureaus and Federal agencies to use these capabilities.

Press Releases:

All press releases must be approved by Fiscal Service Contracting Officer prior to release. Fiscal Service will do its best to provide reviews within 3 business days.

Prohibition on Multiple Proposals:

A vendor shall submit a maximum of one (1) fully compliant proposal in response to the solicitation.

Recognizing that the Fiscal Service is encouraging innovative solutions, the Fiscal Service will only consider one solution or combination of solutions per vendor. If a vendor submits more than one proposal, all proposals will be returned without evaluation since the Fiscal Service would have no basis upon which to determine which of the proposals the vendor desired to have evaluated.

https://sam.gov/

Standard Terms and Conditions:

See Clauses/Provisions attachment. Clauses and Provisions are available publicly at www.acquisition.gov.

Note: Offerors shall submit a completed copy of the following clauses/provisions with their response to this solicitation, this submission of provisions and clauses do not count towards the 5-page limit. If these are NOT received the proposal will NOT be considered for award:

• 52.204-24 Representation Regarding Certain Telecommunications and Video Surveillance Services or Equipment (Oct 2020)

• 52.209-5 Certification Regarding Responsibility Matters (Aug 2020)

• 52.209-11 Representation by Corporations Regarding Delinquent Tax Liability or a Felony

Conviction under any Federal Law (Oct 2020)

• 52.212-3 Offeror Representations and Certifications- Commercial Items (Feb 2021)

Attachments and Appendices:

• Clauses and Provisions

• Attachment A – Security Requirements

• Attachment B – Fiscal Service Rules of Behavior

• Attachment C – NDA

• Attachment D – Security Controls Rules of Behavior

• Appendix A – Microfilm Reference Info and Requirements

• Appendix B – Data Extraction Reference Info and Requirements

• Appendix C – MUD Deliverables

• Quality Assurance Surveillance Plan (QASP)