Financial Statement Contract for 2009.rtf

FEDERAL LABOR RELATIONS AUTHORITY

INSPECTOR GENERAL

FINANCIAL

STATEMENT OF WORK

The winning bidder is to conduct an audit, following generally accepted Government Auditing Standards of the Federal Labor Relations Authority Financial Statements for Fiscal Year 2009 and perform various financial and program-related audits and reviews as needed. This blanket purchase agreement is renewable without competition for four option years at the sole discretion of the Federal Labor Relations Authority Inspector General, based on performance.

1. THE FEDERAL LABOR RELATIONS AUTHORITY

The Federal Labor Relations Authority is an independent agency responsible for directing the labor-management relations for 1.9 million non-postal Federal employees worldwide, nearly 1.1 million of who are exclusively represented in approximately 2,200 bargaining units. The Federal Labor Relations Authority is charged by the Federal Service Labor-Management Relations (The Statute), section 7105, with providing leadership in establishing policies and guidance relating to Federal sector labor-management relations, resolving disputes arising among Federal agencies and unions representing Federal employees, and ensuring compliance with the Statute.

The Federal Labor Relations Authority represents the Federal government’s consolidated approach to labor-management relations. The Federal Labor Relations Authority is “three components in one,” fulfilling legal statutory responsibilities through the Authority, the Office of General Counsel and the Federal Service Impasses Panel. The Federal Labor Relations Authority has 7 regional offices and one satellite office. The Federal Labor Relations Authority also provides staff support to two other organizations – the Foreign Service Impasses Disputes Panel and the Foreign Service Labor Relations Board.

The Authority is a quasi-judicial body with three full-time Members who are appointed for 5-year terms by the President with the advice and consent of the Senate. One Member is appointed by the President to serve as Chairman of the Authority and as Chief Executive and Administrative Officer of the Federal Labor Relations Authority.

The Authority adjudicates disputes arising under the Statute, deciding cases concerning the negotiability of collective bargaining agreement proposals, unfair labor practice (ULP) allegations, representation petitions, and exceptions to grievance arbitration awards. In addition, consistent with its statutory responsibility to provide leadership in establishing policies and guidance, the Authority assists Federal agencies and unions in understanding their rights and responsibilities under the Statute and resolving their disputes through interest-based problem-solving rather than adjudication.

In addition to the three Member Offices, the Authority component of the Federal Labor Relations Authority also houses the Office of Administrative Law Judges, the Office of Case Adjudication the Office of the Solicitor, the Office of the Executive Director, and the Office of the Inspector General.

Office of the Administrative Law Judges: The Federal Labor Relations Authority Administrative Law Judges (ALJ’s) are appointed by the Authority to conduct due process hearings in accordance with the Administrative Procedures Act and issue recommended decisions in cases involving alleged unfair labor practices. ALJ’s also conduct hearings and issue recommended decisions involving applications for attorney fees and files pursuant to the Back Pay Act or the Equal Access to Justice Act. In the course of their duties, ALJ’s conduct pre-hearing conferences, issue subpoenas, rule on motions and evidentiary issues, and engage in settlement efforts. An ALJ decision may be affirmed, modified, or reversed, in whole or in part, by the Authority. If no exceptions are filed to an ALJ decision, the decision is adopted by the Authority and becomes final and binding upon the parties.

Office of Policy, Project & Performance Management: The Office of Policy, Project & Performance Management is responsible for agency-wide strategic policy and planning, including the role of Chief Human Capital Officer. The office also provides oversight with respect to the Federal Labor Relations Authority performance management initiatives. The office drafts, reviews, and approves all agency-wide instructions and policies; oversees the Chairman’s and the Administration’s initiatives; and develops agency-wide initiatives, which upon the Chairman’s final approval, are implemented through the Office of the Executive Director. The office also houses the agency’s congressional affairs function and serves as the Chairman’s primary point of contact with the Solicitor, Executive Director, EEO Director, and Inspector General.

Office of Case Adjudication: The Office of Case Adjudication was created in March 2007 to realign the Authority’s case control staff and professional case writer staff to maximize the achievements of the Authority Decisional Component. The 3 Federal Labor Relations Authority Member Offices still exist and retain a core staff. This change was implemented to enable the Authority Decisional Component to consistently meet their goals and improve the ability of the Authority to assign, track and follow-up on Arbitration, Negotiability, Unfair Labor Practice and Representation cases that are submitted to the Authority Decisional Component for resolution and disposition.

Office of the Solicitor: The Office of the Solicitor represents the Authority in court proceedings before all United States Courts, including the U.S. Supreme Court, U.S. Courts of Appeals, and Federal District Courts. The office serves as the agency’s in-house counsel, providing legal advice to all Federal Labor Relations Authority. The Solicitor is also the Designated Agency Ethics Officers under the Ethics in Government Act of 1978, as amended.

Office of the Executive Director: The Office of the Executive Director provides operational support to all components of the Federal Labor Relations Authority, including budget and finance, human resources, procurement, administrative services, and information resources management and is responsible for developing and implementing agency-wide initiatives, such as strategic planning.

Office of the Inspector General: The Office of the Inspector General (OIG) is responsible for directing and carrying out audits, investigations, evaluations, inspections, surveys and other oversight activities related to the Federal Labor Relations Authority programs and operations. In addition, the Inspector General is authorized to create Inspector General policies and review new ‘Federal Labor Relations Authority instructions to promote economic, efficient, and effective agency programs, which prevent fraud, waste, abuse and mismanagement. The Inspector General is responsible for keeping the Chairman, Federal Labor Relations Authority and the Congress fully informed of problems and deficiencies, as well as, the necessity for corrective actions. Public Law 100-504 and the Inspector General Act, as amended, mandate the requirements, objectivity and independence of Federal Agency Inspectors General.

Office of the General Counsel: The Office of the General Counsel (OGC) is a component of the Federal Labor Relations Authority. The General Counsel, who is appointed by the President with the advice and consent of the Senate for a 5-year term, manages all OGC employees. The OGC includes seven regional offices located in Atlanta, Boston, Chicago, Dallas, Denver, San Francisco, and Washington, DC and one remote duty location in Brea, California. The OGC investigates all unfair labor practice charges filed either by an employee, a labor union or a federal agency and prosecutes all unfair labor practice complaints before the Authority. The OGC is also responsible for receiving and processing representation petitions and providing education services to the parties. The General Counsel reviews all appeals and establishes case-handling policies and procedures for the OGC.

The Federal Service Impasses Panel: The Federal Service Impasses Panel (FSIP or the Panel) is composed of seven part-time Members who are appointed by the President to serve for a 5-year term. One Member is appointed by the President to serve as the Panel Chair. The Panel resolves bargaining impasses between Federal agencies and unions representing Federal employees arising from negotiations over conditions of employment under the Statute and the Federal Employees Flexible and Compressed Work Schedules Act. If bargaining between the parties, followed by mediation assistance, proves unsuccessful, the Panel has the authority to recommend procedures and to take whatever action it deems necessary to resolve the impasse.

The Foreign Service Labor Relations Board: The Foreign Service Labor Relations Board, (the Board) was created by the Foreign Service Act of 1980 to administer the Labor-Management Relations Program for Foreign Service employees in the U.S. Information Agency, the Agency for International Development, and the Departments of State, Agriculture and Commerce. The Board is composed of three Members, including the Chairman of the Authority who appoints the other two Members, who serve on a part-time basis. The Chairman of the Authority also serves as Chairman of the Board. The Federal Labor Relations Authority General Counsel acts as General Counsel for the Board, and the Authority staff provides necessary support to the Board.

The Foreign Service Impasse Disputes Panel: The Foreign Service Impasse Disputes Panel (the Disputes Panel) was also created by the Foreign Service Act of 1980. The Disputes Panel is composed of five part-time Members who are appointed by the Chairman of the Foreign Service Labor Relations Board (the Federal Labor Relations Authority Chairman). The Disputes Panel resolves bargaining impasses between Federal agencies and Foreign Service personnel in the U.S. Information Agency, the Agency for International Development, and the Departments of State, Agriculture, and Commerce, over conditions of employment under the Foreign Service Act of 1980. The FSIP staff supports the Disputes Panel.

The Federal Labor Relations Authority headquarters is located in Washington, D.C. The Federal Labor Relations Authority maintains regional offices in Atlanta, Boston, Chicago, Dallas, Denver, San Francisco, and Washington, D.C.

FEDERAL LABOR RELATIONS AUTHORITY MISSION STATEMENT

The Federal Labor Relations Authority exercises leadership under the Federal Service Labor-Management Relations Statute to promote stable, constructive labor relations that contributes to a more effective Government.

The mission of the Federal Labor Relations Authority is to carry out five primary statutory responsibilities as efficiently as possible and in a manner that gives full effect to the rights afforded employees and agencies under the Statute.

Under the Statute, the primary responsibilities of the Federal Labor Relations Authority include:

Determining the appropriateness of units for labor organization representation;

Adjudicating exceptions to arbitrator's awards;

Resolving complaints of unfair labor practices; and Resolving impasses and issues relating to the duty to bargain.

The Federal Labor Relations Authority Inspector General:

Promote economy, efficiency, and effectiveness in agency programs and operations;

Prevent and detect fraud, waste, abuse, and mismanagement of Government resources, and

Inform the Chairman and Congress regarding problems and deficiencies, and the progress of corrective actions.

Additional background on the Federal Labor Relations Authority, its missions, organization and structure, are available online at www.Federal" www.Federal Labor Relations Authority.gov.

1. Federal Labor Relations Authority’s Financial Operations

Beginning in 2006, the Department of Interior National Business Center (NBC) performs the majority of Federal Labor Relations Authority’s financial operations, including the preparation of Federal Labor Relations Authority’s financial statements. National Business Center has also recently begun to assume procurement responsibilities from the Federal Labor Relations Authority. In FY 2009, the Federal Labor Relations Authority will focus on increasing the Federal Labor Relations Authority staff to 151 employees and will handle its budget in a new manner to perform its regulatory activities.

2. Basis of Accounting

On October 19, 1999 the Council of the American Institute of Certified Public Accountants (AICPA) recognized the Federal Accounting Standards Advisory Board (FASAB) as the body designated to establish generally accepted accounting principles (GAAP) for Federal governmental entities under Rule 203, “Accounting Principles,” of the AICPA’s Code of Professional Conduct. The Federal Labor Relations Authority’s financial statements are prepared by the National Business Center in accordance with GAAP for Federal government entities. This will require the auditor(s) to travel to the National Business Center in Denver Colorado at least once but most likely two times.

The basis consists of the following hierarchy:

1. Accounting standards and principles recommended by the Federal Accounting Standards Advisory Board (FASAB). These are known as Statements of Federal Financial Accounting Standards (SFFAS) and Statements of Federal Financial Accounting Concepts (SFFAC).

2. Form and content requirements in Office of Management and Budget Circular A-136.

3 Accounting principles published by authoritative standards-setting bodies (providing either authoritative source:

(a) in the absence of other guidance in the first parts of this hierarchy, and/or

(b) if the use of such accounting standards improves the meaningfulness of these financial statements.

Transactions are recorded on an accrual accounting basis as well as a budgetary basis by the National Business Center. Under the accrual method, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to receipt or payment of cash. Budgetary accounting facilitates are maintained with compliance with legal constraints and controls over the use of federal funds.

3. Fund Accounting Structure

The Federal Labor Relations Authority’s financial activities are accounted for by the National Business Center. They include the accounts for appropriated funds and other fund groups described below for which the National Business Center maintains financial records for the Federal Labor Relations Authority.

General Funds. These funds consist of salaries and expense appropriation accounts used to fund the agency operations and capital expenditures.

Deposit and Suspense Funds. These funds are maintained to account for receipts awaiting proper classification, or held in escrow, until ownership is established and proper distributions can be made.

Receipt Accounts. The Federal Labor Relations Authority collects other miscellaneous receipts, which are retained by the National Business Center and are deposited directly to an U. S. Treasury receipt account.

4. Project Objectives & Scope

The Government Management and Reform Act of 1994 amended the requirements of the Chief Financial Officers (CFO) Act of 1990 by requiring, among other things, the annual preparation and audit of organization-wide financial statements of 24 executive departments and agencies. In addition, the Federal Financial Management Improvement Act (FFMIA) of 1996 requires that the report on these audits state whether the agency financial management systems comply substantially with the Federal financial management system requirements, applicable Federal accounting standards, and the U.S. Government Standard General Ledger at the transaction level.

In FY 2002, Congress passed the Accountability of Tax Dollars Act. The Act requires the Federal Labor Relations Authority, along with numerous other Federal entities, to have its financial statements audited annually. To this end, the project objective is to provide sufficient audit effort to render an opinion on the Federal Labor Relations Authority’s financial statements for fiscal year 2009 in accordance with generally accepted auditing standards, Government Auditing Standards, and Office of Management and Budget Bulletin No. 06-03.

The specific objectives of this audit are to determine whether:

(1) The financial statements present fairly the financial position of the Federal Labor Relations Authority in accordance with generally accepted accounting principles (GAAP) as promulgated by the Federal Accounting Standards Advisory Board (FASAB). The six financial statements, along with all corresponding notes to be audited include: (a) Balance Sheet; (b) Statement of Net Cost; (c) Statement of Changes in Net Position; (d) Statement of Budgetary Resources; (e) Statement of Financing; and (f) Statement of Custodial Activity.

(2) Management’s assertions about the effectiveness of its internal controls for achieving internal control objectives described in AU Section 319 and Federal Managers Financial Integrity Act of are fairly stated in all material respects. The contractor shall make this determination in part by obtaining an understanding of the internal control policies and procedures and assessing the level of control risk relevant to all significant cycles, classes of transactions, and account balances. For those significant control policies and procedures that have been properly designed and placed in operation, the contractor shall perform sufficient tests to provide reasonable assurance as to whether the controls are effective and working as designed.

The Federal Labor Relations Authority will limit its internal control testing to those controls necessary to achieve the objectives described in Office of Management and Budget Bulletin No. 06-03. Further, the Federal Labor Relations Authority is not required to test all internal controls relevant to operating objectives as broadly defined by the Federal Manager’s Financial Integrity Act of 1982, such as those controls relevant to achieving efficient operations.

With respect to internal control related to performance measures reported in the accountability report, the Federal Labor Relations Authority will obtain an understanding of the design of significant internal controls relating to the existence and completed assertions, as required by Office of Management and Budget Bulletin No. 06-03. The procedures are not required to provide assurance on internal control over reported performance measures.

(3) The Federal Labor Relations Authority has not complied with selected provisions of laws and regulations identified by Office of Management and Budget Bulletin No. 06-03 or the Inspector General during this administration which did have a direct and material effect on the determination of financial statement amounts. However, in 2008, the professional Chief Financial Officer/ Action Chief Information Officer who was hired by the Federal Labor Relations Authority resigned on September 26, 2008. Management is focusing on hiring a new Chief Financial Officer and Chief Information Officer.

Authority that has properly focused on improving the Federal Labor Relations Authority financial situations.

(4) The information in the "Management Discussion and Analysis" is consistent in content and presentation with the information in the principal statements and the related notes consistent with SAS No. 8. Other Information in Documents Containing Audited Financial Statements.

5. Audit Phases

The audit will be completed to enable the Federal Labor Relations Authority Inspector General to meet the time frames established by the Office of Management and Budget. Whenever Office of Management and Budget deadlines change, it is the responsibility of the National Business Center to plan the audit accordingly. Written products shall be submitted to the Federal Labor Relations Authority Inspector General. Draft products will be evaluated by the Federal Labor Relations Authority Inspector General and revisions, if any, will be incorporated. Upon approval of each draft product, a final product shall be prepared and submitted. The audit will be performed in four phases:

1. Planning Phase - risk assessment and audit program development - Disclose the status of uncorrected findings and recommendations from the prior management letter.

2. Internal Control Evaluation and Compliance Phase - Review and evaluate the existence and effectiveness of internal controls and compliance with laws and regulations.

3. Substantive Testing and Reporting Phase - All work required to issue an opinion on whether the financial statements and associated notes present fairly the financial position of the Federal Labor Relations Authority for the audited fiscal year. This includes the preparation of a draft management letter.

4. Submission of Financial Statement Audit Report – Auditors will review the PAR report and prepare and complete their report and submit the draft to the Federal Labor Relations Authority Inspector General and Chief Financial Officer and Chairman for comments before issuing the final Audit Report. The audit Financial Statement must be submitted to the Office of Management and Budget no later than November 16, 2009.

5. The contracted auditors will be responsible to ensure that all necessary audit objectives contained in the Financial Audit Manual are adequately addressed.

6. Audit Deliverables

A. Overall planning document, audit programs cross referenced to the working papers, lead sheets (Due July 2, 2009) The contractor shall prepare an overall planning document, and internal control audit program, a compliance with laws/regulations audit program, and a substantive audit program for the Federal Labor Relations Authority Inspector General review and approval. Materiality thresholds for all audit phases shall be reviewed and approved by the Federal Labor Relations Authority Inspector General.

The overall planning document identifies the approach and time schedule for the audit, including milestones and due dates (planning, internal control and compliance testing, substantive testing, and reporting).

The Internal Control audit program includes sections on significant internal controls identified during the planning phase, and the nature and extent of tests to be performed.

The compliance audit program will identify, at a minimum, all significant laws and regulations that will be covered in the audit, and compliance testing procedures.

The substantive audit program includes individual account balances to be tested, the substantive testing procedures to be applied and the number of transactions to be tested.

B. Opinion letter (Due November 2, 2009). The opinion letter is to contain the following three sections:

An opinion as to whether the principal statements, required supplemental information (if any) and notes to the financial statements are fairly presented in all material respects in accordance with guidance set forth in Office of Management and Budget Circular A-136, and any subsequent guidance issued by the Office of Management and Budget on statement form and content.

An opinion as to whether Federal Labor Relations Authority’s management assertions about the effectiveness of its internal controls for achieving the objectives described in AU Section 319 and Federal Managers Financial Integrity Act of 1982 are working effectively and an opinion on internal control related to performance measures.

An opinion on Federal Labor Relations Authority’s compliance with applicable laws and regulations.

C. Management letter. The contracted auditors shall prepare a management letter at the conclusion of the audit which discusses findings and recommendations for improvements in internal controls and other final issues that were identified during the audit. Auditors should also review previous Financial Statement Audits and identify those findings and regimentations that have still not been addressed by Federal Labor Relations Authority management.

D. Working papers. (Due November 15, 2009). The audit working papers are the property of the Federal Labor Relations Authority Inspector General and are to be fully referenced and cross referenced before they are provided to the government. The working papers then belong to the Federal Labor Relations Authority Office of Inspector General.

E. Progress reports/Status meetings. The Federal Labor Relations Authority Inspector General will be provided at least one formal status briefing every week regarding the progress and tentative findings of the audit team. Work paper review will also be undertaken at this meeting. Of course, any matters that come to the attention of the audit team that could have a material impact on the financial statements and the Federal Labor Relations Authority and National Business Center are to be communicated immediately to the Federal Labor Relations Authority Inspector General.

The Federal Labor Relations Authority Inspector General will schedule a meeting with the auditors between the Federal Labor Relations Authority Inspector General and Chief Financial Officer to discuss all findings and recommendations related to financial management required.

Because the Department of Interior National Business Center now handles most of the Federal Labor Relations Authority’s financial program, the contracted auditors will have to make at lease one but possibly two trips to Department of Interior National Business Center in Denver, Colorado as part of this audit.

7. Period of Performance

This task order is in effect for the base year and four option years. Performance in years two through five are at the sole discretion of the Federal Labor Relations Authority Inspector General subject to contractor performance and available budgetary resources.

8. Administration of Task Order and Special Requirements

When any Contractor or Subcontractor personnel begin work at the Federal Labor Relations premises for the first time, the Contractor shall coordinate with the Inspector General to receive temporary Kastle keys.

All Contractor personnel performing work under this task order must be U.S. citizens. Because the Federal Labor Relations Authority is a small Agency (approximately 152 employees), no more than 3 auditors are needed for this contracted Financial Statement Audit. All Contractor personnel working under the task order will be subject to suitability and background standards including security background. Such standards will require background investigations to include a National Agency Check and Inquiry. Such investigations may be conducted at any time during the existence of the task order or during the period prior to actual task order performance. If a Contractor employee has been the subject of a valid background investigation by another Federal agency, the Federal Labor Relations Authority Inspector General will accept certification from the other Federal agency.

9. Government Furnished Property

The Federal Labor Relations Authority Inspector General will supply work areas, telephones, faxes, desks, chairs, and reproduction equipment to contracted auditors when needed. The Contractor shall supply its own computers, calculators, office supplies, and all other equipment necessary to perform services. The Contractor must ensure that confidential information and documentation is kept in a locked, secure place when not in use by Contractor staff and must ensure that Government property is locked up after regular working hours.

10. Working Papers

Working papers shall be prepared in accordance with the Government Administration Services Government Auditing Standards. They shall clearly show:

The objectives, scope and methodology used;

Procedures performed;

Evidence of supervisory review of work performed; and Condition, cause, effect, criteria, and recommendations for all findings.

It is imperative that the Contractor protects all working papers from unauthorized access and/or disclosure. Only the Federal Labor Relations Authority Inspector General and Contracted Audit staff shall have access to audit working papers. Working papers containing sensitive information shall be returned to the Federal Labor Relations Authority Inspector General upon request.

11. Qualifications and Substitution of Key Personnel

Contractor staff shall have proven expertise in performing financial statement audits and evaluating computer based information systems of Federal agencies. Contractor staff shall be aware of the Government Administration Office’s Financial Audit Manual and the Government Administration Services/Presidential Counsel of Integrity and Efficiency Financial Audit Manual and experienced in performing reviews using Government Administration Office’s Federal Management System Controls Audit Manual. Audit specialists shall be on hand to provide audit expertise for audit work, statistical analysis, and estimates, as needed. Resumes describing the qualifications of the Contractor’s key personnel (i.e., managers, and senior auditors) who are performing and managing the audit shall be submitted as part of the proposal and should not be eliminated from the Federal Labor Relations Authority Inspector General unless they have medical or personal problems and the issues are provided to the Federal Labor Relations Authority Inspector General by the Contractor,. Key personnel are defined as senior auditors above. Resumes for other staff members are required to be provided to the auditors by the time the audit begins.

Any changes to key personnel must be approved by the Federal Labor Relations Authority Inspector General after the reviews their qualifications. The Federal Labor Relations Authority Inspector General shall receive at least 30 calendar days notice prior to a substitution of key personnel assigned to this task order, and substituted staff shall have similar qualifications as those whom they replace. In case of an individual’s sudden illness, death, or termination of employment, the Contractor shall notify the Federal Labor Relations Authority Inspector General reasonably in advance and shall submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on the audit.

12. Confidentiality of Data

Due to the sensitivity and confidentiality of much of the data handled by the Government, the Contractor will maintain confidentiality of all documents, data, and other information supplied to it by the Federal Labor Relations Authority in accordance with all applicable Federal guidelines and regulations. The Contractor agrees, in the performance of this task order, to keep all information obtained or otherwise reviewed as a result of this task order in the strictest of confidence. The Contractor acquires no proprietary interests in such information. The Contractor agrees not to disclose any information concerning the work under this task order to any persons or entities unless prior written approval is obtained from the Federal Labor Relations Authority Inspector General. The Contractor must agree not to publish, reproduce, or otherwise divulge audit information in whole or in part, in any manner or form, at any time, during or following contract performance, and should not authorize or permit others to do so. The Contractor agrees to take such reasonable measures as are necessary to restrict access to such information to those employees of the Contractor needing such information to perform the work provided on this order, on a “need to know” basis. The Contractor agrees to immediately notify the Federal Labor Relations Authority Inspector General in the event that he or she determines or has reason to suspect a breach of any of these requirements or restrictions, and to provide written notification as soon as possible.

Confidentiality is essential to satisfactory performance. The Contractor will prevent any person other than the Contractor’s team members (or other person for whom access is necessary for the completion of the task order) from seeing or having access to information in the possession or under the control of the Contractor. The Contractor will prevent any person from disclosing the contents or description of documents, data, or information to any person not authorized under this order or by the Government to have access to such documents or information. The Contractor will prevent removal of any documents, data, or information from the Contractor’s premises without authorization by appropriate Government officials.

1. Each Contractor employee performing work under this order shall sign and submit a Non-Disclosure Agreement (Attachment 1), which identifies what is required of the Contractor with respect to non-disclosure of certain information and the penalties associated with noncompliance with those requirements. The Contractor shall provide the signed Non-Disclosure Agreements to the Federal Labor Relations Authority Inspector General who is also the Federal Labor Relations Authority Inspector General within five working days prior to commencing work. No Contractor employee shall begin work under this order until the Federal Labor Relations Authority Inspector General has accepted his/her Non-Disclosure Agreement. Any employees assigned to the order at a later date must execute a Non-Disclosure Agreement upon assignment and one executed copy shall be provided to the Federal Labor Relations Authority Inspector General within five working days of the employees’ assignment to the order. The Contractor will report to the Federal Labor Relations Authority Inspector General any breach of confidence by any person as soon as the breach is known.

2. The Contractor performing work under this order shall sign a Declaration of Independence and Conflict of Interest Statement (Attachment 2) that identifies what is required of the Contractor with respect to conflict of interest concerns and the penalties associated with noncompliance with those requirements. The Contractor shall provide the signed declaration to the Federal Labor Relations Authority Inspector General with its proposal.

3. The Contractor shall disclose in its proposal the identity of all contracts, ongoing and completed during the past three years, with any National Business Center or component. The Contractor shall provide the Federal Labor Relations Authority Inspector General with additional information concerning the work performed under specific contracts to the extent the Federal Labor Relations Authority Inspector General needs such additional information to make a determination of conflict of interest.

4. The Contractor shall notify the Federal Labor Relations Authority Inspector General in writing, if at any time during the performance of work under this order, the task order begins the process of entering into an order with any National Business Center or component. The Federal Labor Relations Authority Inspector General will then issue a written determination as to whether the new order poses a conflict of interest. If the Federal Labor Relations Authority Inspector General determines that a conflict of interest exists, the Contractor shall either defer the new work for the National Business Center or component or cease performing work under this order. The Contractor's election to cease performing work under this order shall be considered a breach of contract. If the Contractor is deemed not independent or not objective with respect to the audit, the Contractor will not be eligible for this task order.

13. Period of Performance

This task order will be awarded for the required services for a base period of twelve months. At the Government’s discretion, the task order may be renewed for four additional one-year option periods in accordance with the following clause:

OPTION TO EXTEND THE TERM OF THE CONTRACT

(a) The Federal Labor Relations Authority may extend the term of this contract by written notice to the Contractor within the final 30 days of each contract period provided, that the Government shall give the Contractor a preliminary written notice of its intent to extend at least 60 days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Federal Labor Relations Authority exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed five years.

14. Federal Labor Relations Authority Inspector General Technical Representative

Work under this task order will be monitored by the Federal Labor Relations Authority Inspector General. Questions pertaining to any aspects of the scope of work once the contract has been awarded should be directed to the Federal Labor Relation Authority Inspector General on (202) 218-7744.

15. Special Working Conditions

There will be no work performed on weekends or federal holidays without prior approval by the Federal Labor Relations Inspector General. There also will be no work over eight (8) hours per day and more than 40 hours per week performed without prior approval from the Federal Labor Relations Authority Inspector General.

The Federal Labor Relations Authority has contracted with the Department of Interior, National Business Center for its accounting, personnel and payroll processing. Travel is required for the National Business Center, 7301 Westmanfield Avenue, Denver, Colorado 80235, and 303-969-7777 for the contracted auditors. All travel will be in accordance with Federal travel regulations. Receipts for expenses over $75 must be provided upon request of the Federal Labor Relations Authority Inspector General.

16. Estimated Compensation

The cost of this effort is subject to the requirements and conditions of the Government Services Administration Master contract. Costs provided herein are to be estimated and identified based on the four audit phases identified above.

Submission of Invoices

The Contractor shall submit a consolidated invoice in accordance with the payment schedule for each of the 4 phases of the contracted audit. Each agency audit phase will be on a separate page of the invoice. The Contractor shall submit an original invoice to the Federal Labor Relations Authority Inspector General for payment from the National Business Center at the following address:

Francine Eichler Inspector General Federal Labor Relations Authority 1400 K Street N.W.2nd Floor Washington, D.C. 20005

To constitute a proper invoice, the invoice must include the following minimum information and/or attached documentation:

(i) Name of business concern/letterhead

(ii) Invoice date and separate/distinct number;

(iii) Contract and task order number;

(iv) Description of services with the Federal Labor Relations Authorized and dates upon which services were rendered;

(v) Payment terms;

(vi) Name, title, phone number and complete mailing address of responsible official to whom payment is to be sent or to contact in case of a defective invoice;

(vii) Total charges for each line item and the billing period;

(viii) Name and hours of effort expended by each individual during the billing period;

(ix) Cumulative expenditures through the billing period.

(x) Phase of Contract completed and related costs.

PART 2 – PROPOSAL INSTRUCTIONS, EVALUATION AND AWARD

1. Written Technical Proposal

To assist in evaluating the proposals against the award factors for this procurement the Federal Labor Relations Authority Inspector General will provide the information below as part of this proposal.

a. The Contract Submitter shall submit one hard copy and one copy in electronic format in Microsoft Word, or Adobe Acrobat by the required National Business Center due date. There are no page limits or requirements for the response to this Task Order. The technical proposal should be submitted as a separate document from the price proposal in both the hard copy and the electronic format.

2. Experience/Key Personnel As part of the technical proposal, the Contract Submitter shall submit the name and labor category of personnel from the General Services Administration Schedule who will be assigned to perform under this task order. Contract Submitters shall provide the resumes of all key personnel that shall perform work under the task order with the proposal. Key personnel include senior auditors and above. Resumes for other staff members shall be provided after award but prior to the commencement of work under this task order.

Contract Submitter’s personnel performing work under this task order shall meet the staff qualification requirements of the Government Auditing Standards, as issued by the Comptroller General and subsequent revisions. Accordingly, the Contract Submitter shall ensure that the audit staff has the collective competence necessary for the audit. The Submitter shall ensure that its staff has a thorough knowledge of Government auditing requirements and of the specific or unique environment in which the audited entity operates.

Competence for staff members conducting audits include:

1. Experience in the methods and techniques applicable to Government auditing and the education, skills, and experience to apply such knowledge to the audit being conducted.

3. Audit Approach

The Contract Submitter is requested to respond with a description of its audit approach, which should include the Contract Submitter’s interpretation, approach to, and calculation methodology of materiality levels for the audit of the schedule in accordance with the Government Accountability Office and PCIE Financial Audit Manual. The Contract Submitter’s proposal should describe lines of authority and responsibility of key personnel and management consistent with the Contract Submitter’s technical approach. All labor should be described in number of hours and type required per task. The Contract Submitter should provide a description of internal controls that provide for a thorough and efficient quality control of the Contract Submitter’s work and products (draft and final audit reports) developed under the proposed task order. All subcontracted work, if any, should be identified with qualifications or attributes of the subcontractor.

4. Past Performance

The Contract Submitter is expected to provide at least five references, including contract number, client, estimated total project dollar amount, Contract employee’s name, phone number, and a brief description of the work provided for similar types of financial statement audits for the team proposed.

5. Price Proposal

This order provides performance-based service contracting methods. The Contract Submitter must provide the firm-fixed price for performing the scope of Financial Statement audit services, which includes travel to the National Business Center, Denver Colorado or Herndon, Virginia and all other incidental expenses for the audit. Contract Submitters must also provide pricing for the base and four option years on the Price Matrix. The Federal Labor Relations Authority Inspector General will be soliciting firm fixed prices for the financial statement audit as well as subsequent audits and reviews.

As part of the proposal, the Contract Submitters must also provide a breakdown of labor categories and number of hours for the 2009 financial audit as a whole. The breakdown of labor categories and hours is required for the base year and each option year.

Anticipated travel costs shall be included as a separate line item for the base and each option year in the firm-fixed price on the Price Matrix. All travel under this task order shall be in accordance with the Federal Travel Regulations.

6. Evaluation of Proposals

The proposals shall be evaluated on the following factors:

a. Experience/Key Personnel

b. Audit Approach

c. Past Performance

d. Price Price and technical capability (including past performance) are major considerations. Be sure to include travel to the National Business Center in Denver Colorado Award shall be made based on the best overall value to the Government. The Federal Labor Relations Authority Inspector General will use the technical merits of each proposal and the price to determine the successful Contract Submitter. As the price becomes more equal, technical merit may become the determining factor. The Federal Labor Relations Authority Inspector General will determine what trade-off between technical merit and price provides the greatest value to the Federal Labor Relations Authority. The Federal Labor Relations Authority intends to make a single award for this task order based on Contract Submitter's submissions.

The task order may be renewed for each of the next four fiscal years (FY 08– 11) subject to:

1. The Contractor’s Government Accountability Office submitted contract being current;

2. Discretion of the ARC ASD;

3. Availability of funds; and

4. Performance of the Contractor.

Attachments (2)

FINANCIAL STATEMENT AUDIT

CONDITIONAL ACCESS TO SENSITIVE BUT UNCLASSIFIED INFORMATION

NON-DISCLOSURE AGREEMENT

I, _____________________________ hereby consent to the terms in this Agreement in consideration of my being granted conditional access to certain United States Government documents or material containing sensitive but unclassified information.

I understand and agree to the following terms and conditions:

1. By being granted conditional access to sensitive but unclassified information, the United States Government has placed special confidence and trust in me and I am obligated to protect this information from-unauthorized disclosure, in accordance with the terms of this Agreement.

2. As used in this Agreement, sensitive but unclassified information's any information loss, misuse, or unauthorized access to or modification of which could adversely affect the national interest or the conduct of Federal programs, or the privacy to which individuals are entitled under Title 5 U.S.C. section 552a, but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense or foreign policy.

3. I am being granted conditional access contingent upon my execution of this Agreement for the sole purpose of performing the 2009 Federal Labor Relations Authority financial statement audit. This approval will permit Federal Labor Relations Authority Inspector General conditional access to certain information, and/or to attend Federal Labor Relations Authority Inspector General meetings in which such information is discussed or otherwise made available to Federal Labor Relations Authority Inspector General.

4. The Federal Labor Relations Authority Inspector General will never divulge any sensitive but unclassified information which is provided to Federal Labor Relations Authority Inspector General pursuant to this 2009 Financial Statement, unless advised in writing by the Treasury Department that the individual is authorized to receive it. Should the Federal Labor Relations Authority Inspector General desire to make use of any sensitive but unclassified information, a letter will be submit to the National Business Center for security review, prior to any submission for publication, any book, article, column or other written work for general publication that is based upon any knowledge obtained during the contracted audit to ensure that no sensitive unclassified information is disclosed.

5. The Federal Labor Relations Authority Inspector General hereby assigns to the United States Government all royalties, remunerations, and emolument that have resulted, will result or may result from any disclosure, publication, or revelation of sensitive but unclassified information not consistent with the terms of this contracted 2009 Financial Statement Audit.

6. The Federal Labor Relations Authority Inspector General’s execution of this Agreement shall not nullify or effect in any manner any other secrecy or nondisclosure agreement executed with the United States Government.

7. The Federal Labor Relations Authority Inspector General affirms that this Agreement is in good faith, without reservation or purpose of evasion.

Signature Date

DECLARATION OF INDEPENDENCE

AND CONFLICT OF INTEREST STATEFEDERAL LABOR RELATIONS AUTHORITY INSPECTOR GENERALNT

General Provision

For proper performance of Government business and to maintain the independence of the Department of Interior National Business Center the Contractor shall certify that they are not aware of any conflict of interest situations at the time the National Business Center contract is awarded, and agree not to enter into any contract that will create or appear to create a conflict of interest for the National Business Center

Requirements:

The Contractor shall comply with the following requirements:

a. Sign this Declaration of Independence and Conflict of Interest Statement. Notify the National Business Center of the identity of all contracts, current and completed during the past two years, with any National Business Center bureau or component, and provide information concerning specific work performance as required or requested by the National Business Center.

b. Notify the National Business Center of any potential new…