24-71-A-PMO-OITA - Interest Program Requirement _PWS (20240926).docx

Performance Work Statement (PWS)

24-71-A-PMO-OITA INTEREST PROGRAM REQUIREMENT

1.0 INTRODUCTION AND BACKGROUND

The Department of Treasury, Internal Revenue Service (IRS), Office of Servicewide Interest (OSI), supports all IRS functions performing Net Rate Netting (NRN) manual interest computation work, which includes verifying and re-computing NRN requests submitted by taxpayers.

IRS government employees currently perform complex interest computations for NRN requests filed by taxpayers. Computations may include standard/frequent calculations to verify amounts requested on Form 843 requests for netting. To properly complete computations, it requires knowledge of all interest law, legislation impacting interest, as well as knowledge of IRS transactions, ability to read IRS transcripts, and understand how posted transactions can impact the netting computation. This requires an in-depth knowledge of procedures for claiming a refund of overpaid underpayment interest or requesting the allowance of additional overpayment interest.

Recent attrition and the complexity of these cases requires Contractor support and assistance with these computations. The goal is for a streamlined process where the NRN requests can be reviewed, verified, and a determination made within 60-90 days.

2.0 AWARD OBJECTIVES

The objective of this Performance Work Statement (PWS) is to obtain Contractor support and assistance for sensitive taxpayer data to provide NRN computations, Internal Revenue Code (IRC) 6621(d) application, compute and verify NRN computations using the current interest computation brand name Automated Computational Tool (ACT)/Decision Modeling Inc. (DMI) software (or equivalent). The computations included in the taxpayer’s netting request shall be verified using an internal interest computation software.

This support would provide the Government with computations to verify NRN submissions received on behalf of taxpayers and amounts claimed on Forms 843. These cases must be reviewed for timeliness and completeness, considering all factors including statute of limitation periods under IRC 6501 and IRC 6511, which will be used to determine if the NRN requests should be allowed in full, adjusted or denied.

3.0 SCOPE OF WORK AND DESCRIPTION OF TASKS

This PWS is a Firm Fixed Price (FFP) based acquisition with mission-oriented, event driven performance measures and incentives.

The scope of this requirement is to obtain Contractor support to provide expertise in all interest laws, specifically IRC 6621(d), as well as the procedures for claiming a taxpayer refund of overpaid underpayment interest or requesting the allowance of additional overpayment interest, including experience with reviewing/preparing large volumes of Forms 843 NRN cases. The calculations would be applied to review NRN submissions, verify the requested amounts through full re-computation of the netting adjustments, provide a determination and recommended solutions for resolving the NRN case.

3.1 TASK 1, ORIENTATION BRIEFING (Optional)

Within two weeks of award, the Contractor shall conduct an orientation briefing for the Government. The Government does not desire an elaborate orientation briefing nor does it expect the Contractor to expend significant resources in preparation for this briefing. Rather, the intent of the briefing is to initiate the communication process between the Government and Contractor by introducing key task award participants, explaining their roles, reviewing communication ground rules, and assuring a common understanding of award requirements and objectives.

The orientation briefing shall be held virtually and both parties shall mutually agree upon the date and time.

The completion of this briefing shall result in the following:

1. The Contractor and Government personnel who will perform work under this award will be introduced.

2. The Government may provide any Government Furnished Property (GFP) to the Contractor at this time.

3. Any issues concerning the Contractor clearances for Contractor personnel will be discussed.

4. The Contractor shall demonstrate confirmation of their understanding of the work to be accomplished under this PWS.

5. The Contractor shall provide the accounting period end dates to be used for the term of this award.

DESIRED OUTCOME - Initiate the communication process between the Government and Contractor to assure a common understanding of award requirements and objectives. Contractor delivers Orientation Briefing Minutes to COR within 5 business days after Briefing. Contractor delivers Quality Control Plan (QCP) to the COR within 30 business days after the Briefing.

3.2 TASK 2: INTEREST COMPUTATIONS FOR NRN

The Contractor shall provide knowledge of interest tax laws and NRN issues that are required and applied to review NRN submissions. The Contractor shall verify the requested amounts through full re-computation of the netting adjustments and provide a determination and recommendations to resolve NRN cases.

The Contractor shall review and verify NRN submissions received on behalf of taxpayers. These cases must be reviewed for timeliness and completeness, considering all factors including statute of limitation periods under IRC 6501 and 6511.

The Contractor shall assess the accuracy of the netting requests in determining if the request should be allowed. The IRS will review the Contractor analysis to make a final decision on the netting request and whether it will be accepted as filed, adjusted, or disallowed.

Contractor shall be familiar with the process and criteria for submitting valid Form 843 NRN cases to provide support and assistance as follows:

· Provide computations and verification of NRN cases.

· Calculations provided need to account for IRS account transactions and how certain activity impacts the interest computation.

· Provide NRN computations and case resolutions for NRN inventory.

DESIRED OUTCOME - The Contractor shall provide resolutions for each NRN case, including supporting computations and interest law to support proposed adjustments. The resolution shall include the determination of whether the NRN case should be allowed in full, adjusted or denied.

3.3 TASK 3, AWARD STATUS REPORTS

The Contractor shall provide a summary of work performed, including a list of deliverables, and a list of government furnished property possessed by the Contractor at the end of the Base Year Period and each Optional Year Period of Performance.

The Government reserves the right to request this report at any point during the performance of the award at the discretion of the Contracting Officer (CO) or Contracting Officer’s Rep (COR). This ad hoc report, if desired, will not be requested more than twice per year during the life of the award and is in addition to the regularly scheduled Period of Performance Summary report.

DESIRED OUTCOME - The Contractor shall provide complete and accurate Period of Performance Summary Reports, Monthly Status Reports, Cost Performance Reports, and Contractor Status Reports.

3.4 TASK 4, TRANSITION-OUT (Optional)

At the end of this award, the Contractor shall provide transition-out services (refer to Federal Acquisition Regulation (FAR) Clause 52.237-3 Continuity of Services). The Contractor shall facilitate the transition of contracted activities and services to the OSI personnel and to a follow-on Contractor in accordance with the Government Approved Transition-Out Plan. The transition period shall not exceed sixty (60) calendar days.

The Contractor shall:

· Minimize transition impact to the user community.

· Ensure no breaks in service availability.

· Maintain existing service quality and performance levels.

· Ensure a transparent and seamless transition.

· Maintain support and meet delivery milestones of ongoing projects.

In support of this task, the Contractor shall be responsible for completing the following deliverable:

3.5 SKILL REQUIREMENTS

The Contractor shall provide resources with the following specialized experience, expertise, and skill sets:

The Contractor shall work on the following systems, hardware, and software:

· Automated Computational Tool (ACT)/Decision Modeling Inc. (DMI) software (brand name or equivalent capabilities) to compute interest and generate interest reports including the 490 reports generated within the software.

The Contractor shall demonstrate technical experience and expertise to include, but not limited to:

· Experience handling Revenue Ruling 99-40, large corporate underpayment interest (IRC 6621(c)), waivers and suspensions under IRC 6601, disaster relief (IRC 7508A), IRC 6603 deposits, and interest provisions related to the allowance and disallowance of carrybacks of net operating losses (IRC 6601(d), 6611(f)

· Proficiency in IRS account transactions and how posted tax, penalty and interest transactions can impact the interest computation.

· Ability to read IRS transcripts and understand how these transactions/prior adjustments impact NRN computations.

· Problem solving and critical thinking skills.

· Effective communication and technical writing skills.

Specialized experience shall also include expertise in these areas:

Experience handling Revenue Ruling 99-40, large corporate underpayment interest (IRC 6621(c)), waivers and suspensions under IRC 6601, disaster relief (IRC 7508A), IRC 6603 deposits, and interest provisions related to the allowance and disallowance of carrybacks of net operating losses (IRC 6601(d), 6611(f)).

4.0 GOVERNMENT-FURNISHED PROPERTY

GFP (to include material, equipment, and/or information) may be provided in the performance of this award. The following GFP will be provided to the Contractor:

Upon completion of any resultant GSA order, disposition of GFP shall be in accordance with FAR 52.245-1.

4.1 GOVERNMENT-FURNISHED INFORMATION (GFI)

GFI (to include manuals, notes, memos, instruction materials and other information) may be provided in the performance of this award. The following GFI will be provided to the Contractor upon order award.

INFORMATION ITEMS

Net Rate Netting (NRN) training materials

Net Rate Netting (NRN) procedures, including expectations for computations

Upon completion of any resultant GSA order, disposition of GFP shall be in accordance with FAR 52.245-5.

5.0 TRAVEL

Awards contemplating travel will have a specific CLIN. Travel and per diem will be reimbursed at actual cost in accordance with the limitations set forth in FAR 31.205-46 and the General Services Administration’s Federal Travel Regulations. Profit shall not be applied to the travel costs. Local travel may be required for on-site meetings; local travel will not be reimbursed.

The following is an estimate of travel costs associated with the performance of all tasks that may be issued under this PWS: $50,000 (approximately $10,000 for the Base Year and $10,000 for each of the One-Year Option Periods.

The Contractor shall provide a travel voucher statement for all local travel. The voucher will ensure verification of costs incurred for local travel under the award is both allowable and reasonable and in accordance with the regulation FAR 31.205.46. The Contractor shall attach the voucher and receipts to the monthly invoice. For any trip to be authorized, the COR must approve such travel in writing and in advance. Failure to acquire pre-approval may result in non-local travel charges by the Contractor being denied.

6.0 ACCESS TO GOVERNMENT PROPERTY AND FACILITIES

The Contractor is allowed limited access to the government’s facilities for meetings:

Location to be determined.

7.0 INSPECTION AND ACCEPTANCE

7.1 INSPECTION

The Contractor shall ensure that all deliverables are clearly marked with the award order number and visible on all shipping/service documents, containers, and invoices.

Inspection will be at the same place as performance and delivery, unless otherwise specified.

7.2 GENERAL ACCEPTANCE CRITERIA

The general quality measures as set forth below will be applied to each work product received from the Contractor under this award and any resulting orders awarded.

· Accuracy - work products shall be accurate in presentation, technical content, and adherence to accepted elements of style.

· Clarity - work products shall be clear and concise; engineering terms shall be used, as appropriate. All diagrams shall be easy to understand and relevant to the supporting narrative.

· Specifications Validity - all work products must satisfy the requirements of the Government as specified herein.

· Format - work products shall be submitted in hard copy (where applicable) and in media defined in the PWS. The work product format may be different in each award order. Hard copy formats shall follow Department of the Treasury and IRS Directives and shall be consistent with other similar efforts. All text and diagrammatic files shall be editable by the Government.

· Timeliness - work products shall be submitted on or before the due date specified in the award order, or submitted in accordance with a later, scheduled date determined by the CO.

8.0 REVIEW OF DELIVERABLES

The Government will perform an initial review of deliverables, and if problems are encountered during the review, the Contractor must correct them. If necessary, a meeting may be convened to resolve any differences. The Contractor shall make all required changes to achieve an acceptable deliverable. The Government will perform its review within approximately fifteen (15) calendar days from receipt of the deliverable or as otherwise specified in each award.

When the review of a deliverable results in necessary modifications, the Government will, in accordance with the approved award schedule, provide the necessary documentation to correct the deliverable. It will then be the responsibility of the Contractor to incorporate the comments properly and consistently in the final product.

9.0 AWARD PERIOD OF PERFORMANCE

The period of performance for any resultant award will include a 12-month base year period and four (4) 12-month option year periods.

9.1 PLACE OF PERFORMANCE

Contractor’s site, with reasonable access to government site (Contractor personnel can travel to government site for meetings within two hours’ notice and at reasonable travel costs) NOTE: The Contractor staff may be permitted to work off site (telework or Contractor site) when viewed as advantageous to the Government.

9.2 SHIP TO

Unless otherwise specified below, all deliverables/work products shall be provided to the COR no later than 4:00 p.m. Eastern Standard time on the date(s) specified in the award.

9.3 DELIVERABLES

Unless otherwise requested in writing by the COR, work products shall be produced using Microsoft Office (2010 or later version). Professional products and delivered in accordance with the deliverable schedule. If it is required that deliverable(s) be submitted in media storage form, all devices must be scanned and certified as virus free.

9.4 DELIVERY SCHEDULE

3.1, Task 1

at end of each option period (possibly ad hoc, up to twice a year, in addition to regularly scheduled summary reports)

9.5 RAMP-UP PERIOD

Work under this PWS may require a ramp-up period at the initial start of the period of performance for the Contractor to recruit and hire personnel specifically for this PWS. If needed, the ramp-up period specifics shall be identified in the Contractor’s proposal.

10.0 AWARD ADMINISTRATION DATA

10.1 IDENTIFICATION OF GOVERNMENT AWARD ORDER PERSONNEL

The Contracting Officer Representative (COR) designation will be identified by the Contracting Officer (CO’s) written designation memo. The CO will identify the COR via email to the Contractor.

11.0 PERFORMANCE REQUIRED BEYOND STANDARD WORKDAY

If needed, performance may be required beyond the standard workday. The standard workday is defined as any eight (8) hours of productive labor during the core business hours of 8:00 a.m. through 5:00 p.m. EST, Monday through Friday. Should performance outside of the standard workday become necessary, the CO will notify the Contractor in writing.

12.0 SECURITY

The CO will ensure Contractor personnel are in compliance with IRS HSPD-12 PIV Procedures Manual. This manual will be provided to the awardee.

12.1 PERFORMANCE AT GOVERNMENT SITES

If any of this effort is performed at specified government facilities, the Contractor shall abide by Department of the Treasury Directive (TD) 71-10 regarding provisions for authorized entrance and exit at these facilities.

12.2 IDENTIFICATION/BADGES

The applicable Contractor employees shall not begin working under this PWS until all security forms have been properly completed and submitted.

12.3 PERSONNEL REMOVAL AND REPLACEMENT

The applicable Contractor employees are subject to investigation by the government. Applicable Contractor employees who undergo Contractor clearances that reveal, but are not limited to, the following, may be unacceptable under this contract: conviction of a felony, a crime of violence or a serious misdemeanor, a record of arrests for continuing offenses, or failure to file or pay federal income tax. The Government reserves the right to determine if a Contractor employee assigned to a task shall continue with the task. The Contractor shall agree to remove the person assigned within one day of official notification by the Government and provide a replacement within five (5) days. New hires or substitutions of personnel are subject to the Contractor clearance requirement.

12.4 DELIVERABLES/WORK PRODUCTS

All Contractor deliverables or work products shall remain categorized as "Official Use Only.” The release of any portion must be authorized in writing by the Government.

“The contractor shall adhere to Section 508 of the Rehabilitation Act of 1973, which requires access to the Federal Government electronic and information technology.

The law applies to all Federal agencies when they develop, procure, maintain, or use electronic and information technology. Federal agencies must ensure that this technology is accessible to employees and members of the public with disabilities. http://www.section508.gov/.

Each Electronic and Information Technology product or service furnished under this PWS shall comply with the Electronic and Information Technology (EIT) Accessibility Standards (29 U.S.C. 87794(d)).

For every EIT product or service accepted under this award by the Government that does not comply with (29 U.S.C. 87794(d)), the Contractor shall (at the discretion of the Government) make every effort to replace or upgrade it with a compliant equivalent product or service, if commercially available and cost neutral, on either the planned refresh cycle of the product or service, or on the order renewal date, whichever shall occur first.”

List of Attachments Attachment 1 – Quality Assurance Surveillance Plan (QASP)