UPDATED QUESTION AND ANSWERS.docx

Solicitation 70Z03926QCGA00037: Questions and Answers

1. Statement of Work not posted Part 2 of the Combined Synopsis/Solicitation lists Attachment I, Statement of Work (SOW), and the Q&A answers cite SOW sections 1.3 through 10.0. The SAM.gov notice for 70Z03926QCGA00037 contains four files (the Combined Synopsis/Solicitation, the Evaluation Criteria, the Q&As, and Attachment A) and no SOW. Please post Attachment I. Where the SOW and the Q&A answers differ (for example, Q&As 7, 27, 51 and 52 on the internal control report and the statements covered by the opinion), please confirm that the Q&A answers govern.

SOW HAS BEEN ATTACHED

2. Page limits Part 3 states that Volume I “must not exceed five (5) pages” and that additional pages will not be considered. The Evaluation Criteria give a recommended five-page limit for Factor 1 and a separate recommended five-page limit for Factor 2, and Q&A 20 (carried over from RFQ 70Z03926QCGA00035) states there is no page limit for the technical quote. Please confirm which applies: (a) five pages in total for Volume I, or (b) five pages for Factor 1 and five pages for Factor 2. Please also confirm whether the cover sheet, resumes, copies of CPA licenses, and the engagement descriptions requested under Factor 2 count toward the limit.

Evaluation Criteria is accurate.

3. Quoter and teaming Factor 2 evaluates whether “the quoter is an independent CPA firm or licensed CPA.” Will the Government accept a quote from a small business prime contractor that subcontracts the audits to a licensed CPA firm, where that firm performs the audits under GAGAS and signs the reports? If so, will the subcontracted firm’s licensure, peer review, and engagement experience be evaluated under Factor 2? If not, please confirm that the quoter must be the CPA firm or licensed CPA that signs the reports.

Only the prime contractor will be evaluated.

4. Experience of key personnel For the “at least three recent and relevant engagements” requested under Factor 2, will the Government consider engagements that proposed key personnel performed while at another firm, if they are identified as such?

Yes. The Government will consider relevant engagements performed by proposed key personnel while employed by another firm, provided the quote clearly identifies the engagement as individual/key personnel experience, identifies the individual’s role, and does not represent the engagement as corporate experience of the quoter. The Government will evaluate such information as part of Factor 2, Prior Experience and Qualifications, to the extent it demonstrates the proposed personnel’s qualifications and relevance to this requirement.

5. Athletic Activity Fund balances Q&A 4 lists AAF revenue of $5.24M, expenses of $3.63M, and assets of $1.81M, so revenue exceeds expenses by about $1.61M, close to total assets. To scope testing, please indicate whether AAF activity includes outflows that are not reported as expenses in the Operating Summary, such as transfers or distributions to other Coast Guard NAF entities or amounts collected on behalf of other organizations, and whether the $1.81M asset figure includes capital assets.

Coast Guard Academy Athletics Corporation (CGAAC) is a qualified organization under 14 U.S.C. 953 (88 FR 83561, November 30, 2023). Section 953 allows the transfer of NAFI assets and liabilities to that organization. 14 U.S.C. 954 allows appropriated funds for mixed-funded athletic programs to be treated as nonappropriated funds. FY2026 activity shared between CGAAC and the AAF includes the administration and collection of sponsorship and facility-rental revenue, the remittance of those proceeds to the AAF, and the purchase and provision of athletic apparel and equipment. During FY2026, CGAAC administered most Athletics sponsorship activity. CGAAC collects the applicable sponsorship revenue and subsequently remits those funds to the AAF. CGAAC also administers Athletics facility rentals, collects the associated rental fees, and remits those amounts to AAF, where they are recorded as AAF revenue. Ticket-sale activity remains with the AAF and was not transferred to CGAAC. In addition, CGAAC purchases all athletic apparel and most athletic equipment on behalf of Athletics, generally acting as a pass-through organization for the AAF. The apparel and equipment purchased by CGAAC are subsequently provided to Coast Guard Academy Athletics for operational use. The $1.81M asset figure does not include capital assets.

6. Appropriated fund reimbursements Q&A 8 states that cadet meal reimbursements are provided through appropriated funds and recorded as a reimbursement. Please identify which funds receive these reimbursements and their approximate FY2026 amount, and confirm whether any other appropriated fund reimbursements (for example, grant-related cost reimbursements to the Academic Activities Fund) were recorded in FY2026.

Both the CAF (~$350K) and the AAF (~$300K) receive meal reimbursements. The Academic Activities Fund received approximately $60K in a grant related cost reimbursement for salary.

7. Academic Activities Fund employees Q&A 4 lists about 12 AcAF employees and Q&A 12 lists about 15. Please confirm the number of NAF employees paid through the AcAF in FY2026 and whether they are regular, flexible, or part-time employees.

The majority of the AcAF employees are classified as Intermittent—less than 19 hours/week.

8. Accounts subject to confirmation Q&A 4 lists 13 bank accounts (AcAF 2, CAF 6, AAF 5), and Q&A 13 lists one bank for the AcAF and three banks each for the CAF and AAF. Please confirm the accounts subject to confirmation, and whether any merchant processing, investment, or petty cash accounts are held outside each fund’s QuickBooks file.

No merchant processing, investment or petty cash accounts are held outside of each fund’s QuickBooks files.

9. Opening balances The CAF was last audited in 2020 and the AAF and AcAF in 2022 (Q&A 53). For opening balance procedures, will the Government provide June 30, 2025 trial balances for each fund at award, and will the prior auditor’s working papers be available for review?

No prior auditor working papers will be available. Trial balances for June 30, 2025 will be available.

10. Schedule Please provide the anticipated award date. For option periods, please confirm whether the 70-day draft report period runs from option exercise, and identify any Academy periods (holiday leave, examinations, graduation) when on-site fieldwork should be avoided.

Award by September 30, 2026. The Academy team will be available in fall months to support on-site fieldwork.

11. Report format Is there a prescribed Coast Guard format for the Operating Summary or the audit reports (for example, an exhibit in the NAFI Manual, COMDTINST M7010.5C)? For the AAF and CAF, are notes to the financial statements required with the Balance Sheet and Income Statement?

There is no prescribed format for the Operating Summary or audit reports. Notes to the financial statements are required.

12. Management letter Q&A 46 describes a management letter bound in each report. Please confirm whether a separate management letter is expected for each fund in addition to the GAGAS report on internal control over financial reporting and on compliance.

A separate management letter is not expected for each fund in addition to the GAGAS report on internal control over financial reporting and on compliance.

13. Governing NAF directive Q&As 5, 6, 26 and 49 cite the NAFI Manual (COMDTINST M7010.5 series and M7010.5C) and the MWR Manual (COMDTINST M1710.13E). COMDTINST 7010.5D (July 29, 2022) cancelled M7010.5C and addresses the Cadet Activities Fund, Athletic Activity Fund and Academic Activities NAFI by name, and COMDTINST 1710.13E, Chapter 1.B.6, excludes these three funds from its scope. Please confirm that COMDTINST 7010.5D and the Superintendent’s standard operating procedures in effect for each fiscal year are the governing NAF criteria, and identify any provisions of COMDTINST 1710.13E or the FRMM that the Government expects the audits to apply.

Yes, we confirm the following:

· COMDTINST 7010.5D (29 July 2022), Coast Guard Nonappropriated Fund Instrumentalities (NAFI) Manual, is the current governing directive. It cancelled the prior version, COMDTINST M7010.5C.

· For the Cadet Activities Fund (CAF), Athletic Activity Fund (AAF), and Academic Activities NAFI, the governing NAFI criteria are:

1. COMDTINST 7010.5D (to the extent it applies to these specific funds), and

2. The Superintendent’s Standard Operating Procedures (SOPs) in effect for each respective fiscal year.

· As noted in COMDTINST M1710.13E, Chapter 1.B.6, the MWR Manual explicitly excludes the Cadet Activities Fund, Athletic Activity Fund, and Academic Activities NAFI from its scope. Therefore, the provisions of COMDTINST M1710.13E do not apply to the audits of these three funds.

· The Government does not expect the audits of the AAF, CAF, or Academic Activities NAFI to apply any provisions of COMDTINST M1710.13E (MWR Manual). To our knowledge, there are no specific FRMM provisions that the Government requires to be applied to these audits beyond the requirements already established in COMDTINST 7010.5D and the Superintendent’s SOPs.

14. Athletics Corporation and 14 U.S.C. 954 The Coast Guard designated the Coast Guard Academy Athletics Corporation as a qualified organization under 14 U.S.C. 953 (88 FR 83561, November 30, 2023). Section 953 allows the transfer of NAFI assets and liabilities to that organization, and 14 U.S.C. 954 allows appropriated funds for mixed-funded athletic programs to be treated as nonappropriated funds. For FY2026, please indicate (a) whether any AAF assets, liabilities, revenue activities (for example camps, facility rentals, sponsorships or ticket sales) or services moved to or were shared with the Corporation, and (b) whether any appropriated funds were designated under section 954 and recorded in one of the three funds.

FY2026 activity shared between CGAAC and the AAF includes the administration and collection of sponsorship and facility-rental revenue, the remittance of those proceeds to the AAF, and the purchase and provision of athletic apparel and equipment. During FY2026, CGAAC administered most Athletics sponsorship activity, with the exception of one sponsorship valued at approximately $40K, which remained with the AAF. CGAAC collects the applicable sponsorship revenue and subsequently remits those funds to the AAF. CGAAC also administers Athletics facility rentals, collects the associated rental fees, and remits those amounts to AAF, where they are recorded as AAF revenue. Ticket-sale activity remains with the AAF and was not transferred to CGAAC. In addition, CGAAC purchases all athletic apparel and most athletic equipment on behalf of Athletics, generally acting as a pass-through organization for the AAF. The apparel and equipment purchased by CGAAC are subsequently provided to Coast Guard Academy Athletics for operational use.

15. Please confirm whether the five-page limitation applies to the entire Volume I or whether quoters may submit up to five pages for Factor 1 and five pages for Factor 2, as indicated in the Evaluation Criteria attachment.

Quoters may submit up to five pages for Factor 1 and five pages for Factor 2, as indicated in the Evaluation Criteria attachment.

16. Please confirm whether the one-page cover sheet and CPA-license copies are excluded from the applicable Volume I page limitation.

Yes, cover page and license copies are separate and do not count against page limit.

17. The Q&A states that there is no technical page limit, while the republished solicitation states that Volume I must not exceed five pages and the Evaluation Criteria recommends five pages for each non-price factor. Please identify the controlling limitation.

Quoters may submit up to five pages for Factor 1 and five pages for Factor 2.

18. May CPA licenses and résumés be included as appendices excluded from the technical page limitation, or must their content be incorporated within the applicable page limit?

See answer to question 16.

19. Should the completed Attachment A spreadsheet be submitted as the complete price volume, or may the quoter also provide a brief pricing narrative identifying travel assumptions?

Yes, quoters may provide a pricing narrative identifying travel.

20. For Attachment A’s travel CLINs, should quoters enter estimated not-to-exceed amounts based on one anticipated two-to-three-day visit per year, or another pricing basis?

Yes, quoters should enter an estimated not-to-exceed price for travel if applicable.

21. Is there an estimated time of award?

Award by September 30, 2026.

22. Would the government please provide an estimated level of effort for the engagement, annually?

The Government will not disclose the Independent Government Cost Estimate or a Government-estimated level of effort. Quoters are responsible for independently estimating the labor, staffing, and resources necessary to perform the requirements described in the SOW.

23. Evaluation Criteria for NAFI Audit, Factor 1, pg. 1 of 6: The government states the three audits will cover the cover the Fiscal Year ending June 30, 2026. It was previously noted that the last audits were completed in 2020 and 2022. Will it be the government’s expectation that the FY 2026 Financial Statement Audit will include the prior fiscal years not previously audited or only include the FY June 30, 2026 audit?

The FY 2026 audits will only include the FY June 30, 2026.

24. Evaluation Criteria for NAFI Audit, Factor 1 & 2, pg. 1-2 of 6: It is noted that Volume 1’s Factor 1 and Factor 2 are recommended as a five page limit. Then in the combined synopsis solicitation document it states that Volume I must not exceed 5 pages. As such, we wanted to confirm whether Volume 1 could only be 5 total pages, including both factors or if each factor could be up to 5 pages, totaling 10 pages for volume 1.

Each factor could be up to 5 pages, totaling 10 pages for volume 1.

25. Will the Coast Guard Academy please confirm whether the limitation-on subcontracting requirement under FAR 19.5 applies to this acquisition, since FAR 52.219-14, Limitations on Subcontracting, is still not listed among the clauses on page 7 of the revised "Combined Synopsis/Solicitation," even though FAR 52.219-6, 52.219-8, and 52.219-28 were added to the clause list for this re-solicitation?

Yes, 52.219-14 Limitations on Subcontracting Applies.

26. Page 5 of the revised "Combined Synopsis/Solicitation" states that Volume I "must not exceed five (5) pages." The "Evaluation Criteria for NAFI Audit" document separately recommends a five-page limit for Factor 1 (page 1) and a five-page limit for Factor 2 (page 2). Will the Coast Guard Academy please confirm the single, controlling page limit for Volume I: five pages total covering both factors combined, or up to ten pages if each factor's recommended limit applies separately?

Each factor could be up to 5 pages, totaling 10 pages for volume 1.

27. Given that the three Non-Appropriated Fund Instrumentalities are located in Connecticut, will the Coast Guard Academy please confirm whether the awardee must hold a Connecticut firm permit to practice public accountancy, or whether a firm licensed in its principal state of business is acceptable?

Firm licensed in principal state of business is acceptable.

28. Page 2 of the "Evaluation Criteria for NAFI Audit" document describes the required audit opinion on each fund's Operating Summary, or Statement of Financial Position and Statement of Activities. Will the Coast Guard Academy please confirm whether each fund's management will prepare its own financial statements for audit, or whether the Contractor is expected to draft the financial statements being opined upon?

Each fund’s management (Cadet Activities Fund, Athletic Activity Fund, and Academic Activities NAFI) will prepare its own financial statements for audit. The Contractor is not expected to draft the financial statements being opined upon. The auditor’s responsibility is to perform the audit of the financial statements (Operating Summary, or Statement of Financial Position and Statement of Activities, as applicable) prepared by management and to issue the required audit opinion thereon.

29. Attachment A, Price Input, lists a single audit CLIN for the base period and for each option period, without a separate line for each of the three funds. Will the Coast Guard Academy please confirm that each audit CLIN reflects one combined fixed price covering all three funds?

Each CLIN reflects one combined fixed price covering all three funds.

30. The Questions and Answers document confirms that prior audit reports will be made available after award. Will the Coast Guard Academy please confirm whether any predecessor auditor workpapers in the Government's possession will also be furnished, and how soon after award these materials will be provided, given that the draft reports are due within 70 days of award?

No prior auditor work papers will be made available. Prior year audit reports will be made available expeditiously.

31. The fiscal year 2026 audit period has already ended and the 70-day draft report deadline runs from the date of award. Will the Coast Guard Academy please provide the anticipated award date, or alternatively establish the draft report deadline as a fixed calendar date?

Award by September 30, 2026.

32. Will the government indicate how many proposers raised questions on this RFQ?

No, the government will not share how many proposers raised questions.