75P00121R00003_BASE.pdf

SEE ADDENDUMIS CHECKED

CODE 18a. PAYMENT WILL BE MADE BY

CODE

FACILITYCODE

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

OFFEROR

HHS CODE 16. ADMINISTERED BYCODE

X

X

541611

SIZE STANDARD:

% FOR:SET ASIDE:UNRESTRICTED ORDAM

RFPIFB

10. THIS ACQUISITION ISCODE

RFQ

14. METHOD OF SOLICITATION

13b. RATING

NAICS:

SMALL BUSINESS

11/02/2020 1200 ET

10/02/2020

301-492-4648PETER PRESTON

(No collect calls)

INFORMATION CALL:

FOR SOLICITATION 8. OFFER DUE DATE/LOCAL TIMEb. TELEPHONE NUMBERa. NAME

4. ORDER NUMBER3. AWARD/ 6. SOLICITATION

75P00121R00003

5. SOLICITATION NUMBER

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 1. REQUISITION NUMBER PAGE OF

1 119 OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

TELEPHONE NO.

17a. CONTRACTOR/

Washington DC 20201 200 Independence Avenue, SW

HHS

15. DELIVER TO

Bethesda MD 20814 8th Floor 7700 Wisconsin Avenue

9. ISSUED BY

7.

2. CONTRACT NO.

EFFECTIVE DATE

$16.50

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

ISSUE DATE

DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

11.

SEE SCHEDULEX

12. DISCOUNT TERMS

THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13a.

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

8(A)

DHHS/PSC/AMS/DAM

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

Period of Performance: 12/01/2020 to 11/30/2023

1 Contract and system documentation costs (Base Period)

Period of Performance: 12/01/2020 to 06/01/2021

2 Guaranteed payment for 6,000 transactions for 6000 1R Phase 2 (Base Period) (Option Line Item) Continued ...

(Use Reverse and/or Attach Additional Sheets as Necessary)

HEREIN, IS ACCEPTED AS TO ITEMS:

X

XX

DATED

MARY L. RAINEY

. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ARE

ARE

31c. DATE SIGNED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print)

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED.

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

OFFER

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

ARE NOT ATTACHED.

ARE NOT ATTACHED.

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

30b. NAME AND TITLE OF SIGNER (Type or print)

30a. SIGNATURE OF OFFEROR/CONTRACTOR

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

25. ACCOUNTING AND APPROPRIATION DATA

29. AWARD OF CONTRACT:

REF.

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32c. DATE 32b. SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

40. PAID BY39. S/R VOUCHER NUMBER38. S/R ACCOUNT NUMBER

37. CHECK NUMBER

FINALPARTIAL

36. PAYMENT

FINALPARTIAL

35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER33. SHIP NUMBER

COMPLETE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

42d. TOTAL CONTAINERS42c. DATE REC'D (YY/MM/DD)

42b. RECEIVED AT (Location)

42a. RECEIVED BY (Print)

41c. DATE41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

STANDARD FORM 1449 (REV. 2/2012) BACK

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

3 3000 1R

4 18000 1R

5 46800 1R

6 24000 1R

7 49800 1R

Period of Performance: 06/02/2021 to 11/30/2021

Optional payment for up to 3,000 additional transactions for Phase 2 (Base Period)

(Option Line Item)

Guaranteed payment for 18,000 transactions for

Phase 3 (Option Period One)

(Option Line Item)

Period of Performance: 12/01/2022 to 11/30/2023

Guaranteed payment for 46,800 transactions for

Phase 4 (Option Period One)

(Option Line Item)

Period of Performance: 12/01/2022 to 11/30/2023

Optional payment for up to 24,000 additional transactions for Phase 3 and Phase 4 (Option

Period One)

(Option Line Item)

Guaranteed payment for 49,800 transactions for

Phase 5 (Option Period One)

(Option Line Item)

Continued ...

32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

3 119

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

(A) (B) (C) (D) (E) (F)

75P00121R00003

8 81600 1R

9 52500 1R

Period of Performance: 12/01/2022 to 11/30/2023

Guaranteed payment for 81,600 transactions for Phase 6 (Option Period Two)

(Option Line Item)

Period of Performance: 12/01/2022 to 11/30/2023

Optional payment for up to 52,500 additional transactions for Phase 5 and Phase 6 (Option Period Two)

(Option Line Item)

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

Solicitation # 75P00121R00003_ International Child Support Payment Service (ICPS)

B. SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 BRIEF DESCRIPTION OF SERVICES

The purpose of this contract is to acquire services for the maintenance and operation of an International Child Support Payment Service to support the receipt and disbursement of international child support payments for child support cases administered under the Title IV-D program.

B.2 TYPE OF CONTRACT

The contract type awarded is a Firm Fixed Price Contract

B.3 SEVERABLE SERVICES

The services acquired under this contract are severable services. Funds are only available for use for the contract line item (CLIN) to which they are obligated. Unused funds from one CLIN may not rollover for use in other periods.

B.4 CONSIDERATION AND PAYMENT (Fixed Price – Severable Services)

In consideration of satisfactory performance of the work as described throughout this contract, the Contractor shall be paid a fixed price for each base year CLIN, and each option year CLIN if exercised. The base period and option periods are priced as follows:

Base Year:

Contract Period Fixed Price

CLIN 1 Contract and system documentation costs (See Section L.8.3.2 and Section F.3).

CLIN 2 Guaranteed payment for 6,000 transactions for Phase 2 (See Section L.8.3).

CLIN 3 Optional payment for up to 3,000 additional transactions for Phase 2 (See Section L.8.3).

TOTAL Potential Value Inclusive of all CLINS

Option Year 1:

Contract Period Fixed Price

CLIN 4 Guaranteed payment for 18,000 transactions for Phase 3 (See Section L.8.3).

CLIN 5 Guaranteed payment for 46,800 transactions for Phase 4 (See Section L.8.3).

CLIN 6 Optional payment for up to 24,000 additional transactions for Phase 3 and Phase 4 (See Section L.8.3).

TOTAL Potential Value Inclusive of all CLINS

Option Year 2:

Contract Period Fixed Price

CLIN 7 Guaranteed payment for 49,800 transactions for Phase 5 (See Section L.8.3).

CLIN 8 Guaranteed payment for 81,600 transactions for Phase 6 (See Section L.8.3).

CLIN 9 Optional payment for up to 52,500 additional transactions for Phase 5 and Phase 6 (See Section L.8.3).

TOTAL Potential Value Inclusive of all CLINS

Payment shall be made in accordance with FAR 52.212-4 upon the delivery and acceptance of the services required in accordance with the following payment schedule:

B.4.1 Payment Schedule

A. BASE YEAR

1. Contract and system documentation cost (6 months) Labor Cost Other costs Total Fixed Fee

Upon receipt of ATO

Task description

Labor category

Hours Rate Total $CLIN 1 Contract and system documentation costs for Phase 1.

(See Section L.8.3.2 and Section F.3)

Total payment for

CLIN 1

*Explanatory notes:

*(See L.8.3.2. Offerors may, but are not required to, include a fixed one-time cost in their Business Proposal to cover the costs associated with preparation of the Contract documentation set out in Section F, the required documentation for the Authority to Operate (ATO), and any associated testing. If this cost is included, the Price Proposal Submission Sheet (Attachment J-3) must include a detailed breakdown of the tasks, an estimation of the effort required for each task, and the associated labor or other costs for each task.)

2. Disbursement Transaction Fee Time period Guaranteed number of transactions Price per transaction

Total cost

CLIN 2

Guaranteed payment for Phase 2

6 months 6,000 $

Maximum number of additional transactions Price per transaction

Total cost

CLIN 3

Optional payment for

3,000 $ additional transactions for Phase 2

If the actual number of transactions processed in a month in Phase 2 is less than 1,000 transactions, the Contractor shall be entitled to payment for 1,000 transactions for that month. If the number of transactions processed by the Contractor exceeds 1,000 in a month in Phase 2, the optional payments for additional transactions shall be made for the number of additional transactions processed in that month, up to a total of 3,000 additional transactions for Phase 2.

B. OPTION YEAR 1

1. Disbursement Transaction Fee Time period Guaranteed number of transactions Price per transaction Total cost

CLIN 4

Guaranteed payment for Phase 3

First 6 months (Phase 3)

18,000 $

Total Cost for CLIN 4 $ Time period Guaranteed number of transactions Price per transaction Total cost

CLIN 5

Guaranteed payment for Phase 4

Second 6 months (Phase 4)

46,800 $

Total Cost for CLIN 5 $ Time Period Maximum number of additional transactions Price per transaction

Total cost

CLIN 6

Optional payment for additional transactions in Phase 3 and Phase 4

12 months (Phase 3 and Phase 4)

24,000 $

If the actual number of transactions processed in a month in Phase 3 is less than 3,000 transactions, the Contractor shall be entitled to payment for 3,000 transactions for that month. If the actual number of transactions processed in a month in Phase 4 is less than 7,800 transactions, the Contractor shall be entitled to payment for 7,800 transactions. If the number of transactions processed in a month in Phase 3 exceeds 3,000 transactions, or the number of transactions processed in a month in Phase 4 exceeds 7,800 transactions, the optional payments for additional transactions shall be made for the number of additional transactions processed in that month, up to a total of 24,000 additional transactions for Option Year 1.

C. OPTION YEAR 2

1. Disbursement Transaction Fee

Time period Guaranteed number of transactions

Price per transaction

Total cost

CLIN 7

Guaranteed payment for Phase 5

First 6 months (Phase 5)

49,800 $

Total cost for CLIN 7 $ Time period Guaranteed number of transactions Price per transaction Total cost

CLIN 8

Guaranteed payment for Phase 6

Second 6 months (Phase 6)

81,600 $

Total cost for CLIN 8 $ Time Period Maximum number of additional transactions Price per transaction

Total cost

OPTIONAL CLIN 9

Optional payment for additional transactions in Phase 5 and Phase 6

12 months 52,500 $

If the actual number of transactions processed in a month in Phase 5 is less than 8,300 transactions, the Contractor shall be entitled to payment for 8,300 transactions for that month. If the actual number of transactions processed in a month in Phase 6 is less than 13,600 transactions, the Contractor shall be entitled to payment for 13,600 transactions. If the number of transactions processed in a month in Phase 5 exceeds 8,300 transactions, or the number of transactions processed in a month in Phase 6 exceeds 13,600 transactions, the optional payments for additional transactions shall be made for the number of additional transactions processed in that month, up to a total of 52,500 additional transactions for Option Year 2.

C. SECTION C - DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

International Child Support Payment Service (ICPS)

C.1 PROGRAM DESCRIPTION AND BACKGROUND

Introduction

The purpose of this contract is to acquire services for the maintenance and operation of an International Child Support Payment Service (ICPS) to support the receipt and disbursement of international child support payments for child support cases administered under the title IV-D child support program. The ICPS will work with a number of federal agencies including the Department of Health and Human Services (HHS) Office of Child Support Enforcement (OCSE), the Program Support Center (PSC), the Department of Treasury, and the International Payment Services (ITS) to support the receipt and disbursement of international child support payments through HHS and Treasury.

Background

Since 1975, the Administration for Children and Families’ Office of Child Support Enforcement (OCSE) has collaborated with states to collect child support payments that increase family income under title IV-D of the Social Security Act (42 U.S.C. 651 et seq.). According to preliminary data, in 2018, the U.S. child support program had just under 14 million cases and collected $32.3 billion dollars in child support. The program serves one in five children in the country, approximately

14.7 million children in all. The positive effect of timely and consistent child support on the stability and self-sufficiency of these families is critical.

Because families are mobile, and noncustodial parents who are ordered to pay child support may not live in the same state, tribe, or country as their children, the child support program requires coordination and cooperation of U.S. states and other jurisdictions to ensure families successfully receive child support. Since 1996, OCSE has served as the Central Authority for international child support and has collaborated with foreign partners in international cases. The United States currently has reciprocal international child support arrangements with 57 foreign countries under the 2007 Hague Child Support Convention and bilateral arrangements with individual countries.

OCSE expects the number of reciprocating foreign partners to grow to 67 in the next 5 years.

Currently, the biggest barrier to families receiving payments in international cases is the cost and operational challenges of sending and receiving child support payments across international borders. In international child support cases, one parent lives in the U.S. and the other lives abroad;

child support payments may be flowing either way across the border, depending on which parent is the custodian of the child and which is paying child support. U.S. child support agencies, due to the complexities of international fund transfer, generally send and receive payments in international cases by check.

Over the past few years, foreign countries have increased pressure on the U.S. to send payments electronically rather than by check. Checks are no longer used in many countries, and the costs incurred by foreign custodial parents for depositing and clearing U.S. checks are significant. Six European countries (Slovakia, Czech Republic, Switzerland, Latvia, Belarus and Austria) no longer accept U.S. checks. Germany will stop accepting U.S. checks in January 2021.

To reduce state burdens to program electronic payment solutions for an increasing number of foreign partners and given the low volume of international cases (less than one percent of the total U.S. caseload), OCSE has turned to a centralized approach to addressing international payment issues.

Program Goals and Objectives

OCSE's programs align with and support the goals and objectives of the child support program, as well as its mission, vision, and values. These systems provide critical functionality in support of each of the OCSE program goals:

• All children have established parentage

• All children in IV-D cases have appropriate support orders

• All children in IV-D cases receive timely and consistent financial support from parents as ordered

• All children in IV-D cases receive payments on overdue support

• The IV-D program will be efficient and responsive in its operations

More specifically, the international payments project supports the following principles and goals set out in OCSE’s Strategic Plan (2015-2019).

Principle Goal How the project supports the goal Families First: A family-centered child support program partners with parents to promote consistent support payments

Address the changing needs of modern families

The international payment project supports the needs of modern families by ensuring that child support is sent in the most cost effective, efficient way in international cases.

Case Specific Tools:

An effective child support program uses the right tools to meet the needs of the specific case

Improve intergovernmental case processing

The international payment project increases the capacity of states to effectively manage intergovernmental cases, recognizing the unique challenges of development of electronic payment processes in international cases.

C.2 STATEMENT OF WORK - SEVERABLE SERVICES

The Contractor shall furnish all of the necessary personnel, materials, services, facilities, (except as otherwise specified herein), and otherwise do all the things necessary for or incident to the performance of the work as set forth below:

C.2.1 OVERVIEW

This section describes the services to be provided by the ICPS. The primary role of the ICPS is to identify the payments received by HHS/OCSE from states and foreign countries and to support the disbursement of child support payments to states and foreign countries according to instructions received from OCSE.

The ICPS will be capable of supporting all incoming and outgoing international child support payments for cases that are in the U.S. IV-D program. State child support agencies are not required to use the ICPS for international payments processing, but all states have strongly supported the creation of a centralized service. Foreign child support authorities will send child support payments to the ICPS at the request of OCSE. State child support agencies will send payments to the ICPS to be forwarded to foreign authorities. The ICPS will only process payments received from foreign child support authorities or state disbursement units (SDUs). It will not process payments from employers, noncustodial parents, or other similar entities; all payments must come through a child support agency in the U.S. or in a foreign country. The ICPS Contractor will process all of the data associated with these payments and create the required data files for disbursement. The ICPS Contractor will provide customer service support to foreign authorities and to state child support agencies to support these activities. The ICPS contractor will support the Program Support Center (PSC), the entity in the Department of Health and Human Services (HHS) responsible for financial services, and for managing the HHS/OCSE bank account that will be used for all payment receipt and disbursement.

C.2.1.1 Outgoing international payments from the U.S. to foreign authorities for foreign custodial parents

Outgoing international payments will be forwarded by SDUs to the HHS/OCSE bank account via Automated Clearing House (ACH) processes using National Automated Clearing House Association (NACHA) and EFT/EDI standards. The records associated with each payment will include identifying case-related information.

The Contractor will receive the accompanying payment details through PSC and shall bundle the outgoing disbursements by destination country and prepare the necessary disbursement files. All disbursements shall be approved by OCSE and disbursed from the HHS/OCSE bank account.

The primary international disbursement method for the ICPS shall be through the Department of Treasury’s International Treasury Services (ITS) to foreign Central or competent authorities. The Contractor shall prepare disbursement files in the format required by ITS and forward the files to

PSC. PSC is responsible for uploading the disbursement files to the ITS platform. PSC and OCSE are also responsible for ensuring that all payments are recorded in the HHS Unified Financial Management System (UFMS), and the Contractor shall assist in that process by preparing files for PSC or OCSE to record the receipts and disbursements through UFMS.

The ICPS shall support this process and also prepare the necessary files for OCSE. The ICPS shall also support the disbursement of payments by ACH to a U.S. bank account held by a foreign authority (currently in place for Norway and the Netherlands), or by International ACH (IAT) to a foreign authority if that disbursement mechanism is supported by PSC and Treasury.

To support the efficient disbursement of funds, child support payments flowing through ITS to foreign authorities shall be bundled, to support a single weekly disbursement by ITS to each foreign authority recipient, unless OCSE directs otherwise. Because the ITS disbursement transmission has limited capacity to include payment and case information, the ICPS shall send the identifying case and payment data for each payment transmission separately by secure means directly to the foreign authority to allow the foreign authority to identify the funds that have been sent to the authority. The foreign authority will disburse payments to foreign creditors.

OCSE is required to reconcile all receipts and disbursements through the HHS/OCSE account. The ICPS Contractor shall support this process by preparing daily, weekly and monthly account reconciliations for OCSE review and approval.

During the term of the contract, OCSE may decide to extend the scope of services to require the ICPS to disburse funds received from state child support agencies to foreign creditors (in addition to foreign authorities) through ITS or another OCSE-approved funds transfer method. The ICPS may be required to send information to the foreign authorities about payments sent to foreign creditors. The exercise of this option is entirely within the discretion of OCSE, and OCSE may decide not to exercise it at all. Once OCSE decides to extend this functionality, a contract modification will be required.

C.2.1.2 Incoming international payments from foreign child support authorities to U.S. child support agencies

Incoming payments from foreign child support authorities shall be sent to the HHS/OCSE bank account by electronic payment, check, or a U.S. Treasury program.

PSC will provide the deposit information to the ICDU Contractor and the ICPS Contractor shall be responsible for accurately identifying each incoming payment and ensuring that the funds received are allocated to the correct state child support case. The Contractor will be provided with certain participant and case data provided by state agencies for their international cases, to assist the Contractor in identifying payments. See Section C.3.2.2

The Contractor will prepare the required files to support the disbursement of funds from the HHS/ OCSE account by PSC to SDUs and to support the tracking of payments through the UFMS. OCSE will approve all disbursements. Funds will be disbursed to states using the processes currently in place for the disbursement of federal tax offset funds. The Contractor is responsible for securely providing state child support agencies with all case and payment data required by the state child support agency to process the payment.

C.2.1.3 Customer service The ICPS will provide customer service to state child support agencies and foreign authorities to support both incoming and outgoing payments. See Section C.3.6 .

C.2.1.4 Implementation Phases The successful implementation of the ICPS requires careful set-up and planning, given the involvement of states, foreign countries, and federal agencies. Piloting both incoming and outgoing payments with a few countries and states, before expanding ICPS services to all states and countries, will ensure that there is an opportunity to refine the payment processes, as necessary.

The implementation phases are listed below. OCSE explicitly reserves the right to shorten or extend these phases based on its evaluation of the process.

Phase Scope Timeframe Description Phase 1 Ramp-up/Start-up Six months The Contractor shall work with OCSE, HHS ACF, state child support agencies, PSC, ITS, Treasury, and foreign authorities to put in place the processes required for outgoing and incoming international payments, and to obtain the required approvals for the

ATO.

Phase 2 Pilot outgoing payments

Six months following the end of Phase 1

The initial phase will involve sending outgoing international payments from a limited number of states to a limited number of foreign authorities.

Phase 3 All outgoing payments to countries in the Single European Payment Area (SEPA) only

Six months following the end of Phase 2

This phase will expand outgoing payments to all countries in the SEPA area, as those countries are the ones that have the greatest interest in eliminating checks.

Phase 4 All outgoing payments

Six months following the end of Phase 3

This phase will see the ICPS supporting all outgoing payments from the U.S. to all reciprocating countries (currently a possible 57).

Phase 5 All outgoing payments and pilot for incoming payments

Six months following the end of Phase 4

After outgoing payments are implemented, a pilot phase involving incoming payments a few countries and a few states will be started.

Phase 6 All outgoing payments and all incoming payments

Remaining six-month term of the contract

In the final phase of the contract, the ICPS will support all incoming and outgoing international payments.

with option to add direct payments to foreign creditors

During this time. OCSE will consider adding to the scope of work direct payments to foreign creditors.

C.2.1.5 Payment Volumes - Assumptions State child support agencies are not required to provide information to OCSE concerning international payments, nor are states required to maintain this type of statistical information for federal reporting.

Based on OCSE’s analysis of the U.S. caseload, we estimate that the total number of outgoing payments from the U.S. to authorities in foreign countries is approximately 105,000 payments per year. An additional 70,000 payments per year are received from foreign authorities. This number does not include payments disbursed by state child support agencies directly to foreign creditors, primarily those living in Mexico, in cases where a foreign authority is not involved. This estimate is provided for informational purposes only; the actual number of international cases eligible to use the services of the ICPS could be higher or lower than this estimate.

OCSE recognizes the difficulty of determining the volume of international payments that will flow through the ICPS. To address this uncertainty and to allow the Contractor to provide the minimum levels of service required by this Contract, OCSE has determined minimum monthly guaranteed transactions for each specific phase of the project (time period) and these shall be used to determine the minimum amount of compensation due to the Contractor for the period. See Section L.8.3.

C.3 SPECIFIC TASKS – STATEMENT OF WORK

The Contractor shall have clearly defined approaches and methodologies to be used to carry out the scope of services contained in this section.

C.3.1 PROCESSING PAYMENTS RECEIVED BY THE ICPS

C.3.1.1 Payment processing requirements for all payment types (outgoing international payments received from states and incoming international payments received from foreign authorities)

Payment receipt processing includes identifying and recording all payments deposited into the HHS/OCSE international child support bank account. Payments from state child support agencies (for outgoing international payments) and from foreign authorities (for incoming international payments) are deposited into the HHS/OCSE bank account. PSC will provide a daily report to the OCSE contractor detailing the deposits. The deposit report will include ACH details, if the payment was made using the NACHA child support specific format. The Contractor is responsible for identifying payments, consolidating the payments by recipient foreign authority or state, and preparing a disbursement file for OCSE approval. The disbursement file shall be sent each business day to OCSE for approval, unless OCSE agrees otherwise.

The Contractor shall have clear approaches to:

1. Processing payment data for payments from state child support agencies and foreign authorities for all international child support cases regardless of payment method.

2. Identifying and recording all payments on the same business day received, except for unidentifiable payments.

3. Maintaining audit trails on its system that allows for re-creation of all payment records through historical data.

The final Payment processing plan is due 60 days prior to the commencement of the Pilot Phase.

A draft payment processing plan shall be provided to OCSE 30 days after the commencement of the Start-up Phase.

C.3.1.2 Mail and correspondence processing, opening, and sorting The Contractor shall:

1. Develop a collection verification process for the collection, receipt, scanning, and processing of all mail and correspondence.

2. Develop a process to promptly send the scanned images of any correspondence received with a payment to the state child support agency where the case is being managed.

C.3.1.3 Foreign currency payments Payments received in a foreign currency are converted to U.S. dollars prior to deposit into the HHS/OCSE bank account. The Contractor shall maintain a record of the amount received in the original currency, the exchange rate, and the converted amount. All funds are disbursed from the HHS/OCSE bank account to SDUs in U.S. dollars.

C.3.2 IDENTIFYING PAYMENTS

The Contractor shall be responsible for correctly analyzing, classifying, recording and documenting all payments. Incorrectly identified payments can result in incorrect disbursement of payments.

C.3.2.1 Payments received from states For payments received from SDUs for disbursement to foreign authorities, the Contractor may rely on the payment and case identification information provided by the SDU, unless there is an obvious error in the payment, for example, multiple duplicate payments or incomplete case information.

The Contractor is responsible for ensuring that all of the data required by ITS for transmission of the payment to the foreign authority is obtained from the state, and that all of the information required by the foreign authority for identification of the case and payment has been provided by the state.

C.3.2.2 Payments received from foreign authorities The Contractor is responsible for correctly identifying, recording, and posting all payments received from foreign authorities, including validating any payment or case data received from the foreign authority to ensure the payment is attributed to the correct case. OCSE or the Contractor, if directed by OCSE, shall obtain from state child support agencies the following data validation elements for each international child support case, to be used by the Contractor for payment validation, to the extent the information is available from the state:

1. Payor name

2. State child support agency case identification number

3. State where case is located

4. Foreign Central or competent authority where case is located

5. Foreign authority case number

6. Payor Social Security Number

7. Payee name

8. Payee Social Insurance number

The Contractor shall have clear approaches for securely receiving and storing this information in a way that fully complies with federal regulations concerning the use of Personally Identifiable Information as set out in Section C.3.17.

C.3.2.3 Posting Errors For payments received from SDUs for disbursement to foreign authorities, the Contractor may rely on the payment and case identification information provided by the SDU, unless there is an obvious error in the payment, for example, multiple duplicate payments or incomplete case information.

The Contractor shall be held liable for all other errors made by the Contractor, and shall replace the incorrect payment, pursuant to the process described in Section C.5.2.

C.3.2.4 Unidentifiable payments process Unidentifiable payments are payments that cannot be matched to a participant or a case.

The Contractor shall:

1. Have clear approaches to processing incoming unidentifiable payments using the PSC provided data, which shall include instructing PSC to place the funds in suspense, contacting the foreign authority or state that sent the payment, contacting the intended recipient, and returning the payment to the sending authority after a minimum of sixty (60) days, if the payment recipient cannot be confirmed.

2. Provide to OCSE a Cumulative Monthly Unidentified Payment Report within twenty (20) business days after the report month, which lists each unidentified payment and includes the name of the payor, the state or foreign authority that sent the payment, the amount, financial instrument number (if applicable), and the date of receipt.

All research performed to identify payments must be documented in the Contractor’s payment processing system and retained as per the terms of the Contract. OCSE shall be given access to this documentation upon request.

C.3.3 EFT/EDI PROCESSING

The Contractor's payment processing system must be capable of receiving and processing child support payment data from states and other countries using CCD+ and CTX formats or other formats required by OCSE for the transmittal of child support payments in the U.S., data accompanying SWIFT or other forms of wire payment, and data from IAT or other forms of international EFT.

C.3.4 DISBURSEMENT OF PAYMENTS TO STATES AND TO FOREIGN

AUTHORITIES

C.3.4.1 OCSE authorization for disbursement

Upon receipt of the information described in Section C.3.1.1 from the Contractor, OCSE will daily process the information to approve the authorized recipient, and electronically transmit this information to the Contractor as authorization for the Contractor to send the required data files for PSC to initiate the payment to the recipient state child support agency or foreign authority.

C.3.4.2 Methods of disbursing authorized payments All funds will be disbursed from the HHS/OCSE bank account by PSC. The Contractor shall support the disbursement process by consolidating all of the incoming files by recipient authority (foreign authority or state) and creating the disbursement files in the formats required by PSC, ITS or other government programs involved in the disbursement. Disbursement of funds shall take place by any of the following methods:

1. Disbursement by PSC through ITS to foreign authorities,

2. Disbursement by PSC to state child support agencies using the same process as is currently used for federal tax offset payments,

3. Disbursement of funds by PSC by ACH or Fedwire to U.S. bank accounts held by foreign authorities,

4. Any alternative method agreed to by PSC and Treasury, and approved by OCSE

5. If approved by OCSE, disbursement by PSC directly to foreign authorities or foreign creditors by EPC, ITS, or other approved method.

C.3.4.3 Disbursement of outgoing international payments to foreign authorities through ITS

The Contractor shall have clear processes to support the disbursement of funds through ITS. These processes must include:

1. Preparing the required files for PSC to initiate the disbursement through ITS.

This requires preparation of at least three types of files – one for ITS.gov for the disbursement, one for the Bureau of Fiscal Services (BFS) Secure Payment System (SPS) to create a payment schedule to support the disbursement, and one for PSC to support the recording of the disbursement in the HHS Unified Financial Management System (UFMS). Examples of the ITS and BFS required file formats are provided in Section J.

2. Monitoring the disbursement of funds through ITS and providing assistance to PSC and ITS to enable the successful disbursement of the funds to the foreign authority; and

3. Preparing any additional files required by OCSE to support the disbursement of funds. This includes processing or reconciling the payments through the HHS

UFMS.

C.3.4.4 Disbursement of incoming funds from foreign authorities to states through PSC or other approved means

The Contractor shall have clear processes to support the disbursement of funds through PSC to states. The processes must include:

1. Preparing any files required by PSC to support the disbursement of the funds by PSC to states. A single payment is sent each week to each state.

2. Preparing the necessary case and payment details for each payment included in the weekly state payment, for secure transmission to states, either through OCSE or directly to states, if approved by OCSE.

3. Preparing any files required by OCSE to support the disbursement of funds through PSC. This includes the necessary information to process or reconcile the payments through the HHS Unified Financial Management System.

C.3.4.5 Disbursement of funds to foreign authorities by International ACH transaction (IAT) or other means

The objective of this contract is to get child support funds to foreign creditors quickly and at low cost. While, for cost reasons, OCSE prefers to send funds to foreign authorities using ITS, with OCSE approval, the Contractor may work with PSC and Treasury to use International ACH Transaction ( IAT) processes or any other processes to support the disbursement of funds to foreign authorities. The Contractor must also have clear processes for securely providing confirmation of the case and payment details to the foreign authority in accordance with Section C.3.17.

C.3.4.6 Confirmation of funds disbursed to states and foreign authorities The Contractor is responsible for ensuring that state child support agencies and foreign authorities receive all of the information necessary to properly credit a payment received from a foreign authority or from a state. Depending on the method of disbursement, additional data may need to be sent to states or to foreign authorities to assist in identifying payments. The Contractor is responsible for obtaining this data from states or foreign authorities. All communication to state and foreign authorities must comply with the security requirements set out in Section C.3.17.

The Contractor shall have clear processes to provide the necessary information to the state or foreign authority within one day of the disbursement of the funds. These processes must include:

1. For each payment disbursed to a foreign authority, securely sending a report to the foreign authority confirming the funds disbursed, including as appropriate, payment/batch identifiers, case and participant identifiers, and the amount for each case, where payments for more than one case are included in a single disbursement, and any other information the foreign authority requires for the correct identification and disbursement of the funds to the creditor.

2. For payments disbursed through PSC to state child support agencies, providing case and payment details for payments in the format required by OCSE for transmission to states.

C.3.4.7 Daily and monthly transaction record The Contractor shall have processes to create a daily transaction record including the details of all disbursement transactions to foreign authorities, states, or custodial parents, initiated or processed that day. The Daily Transaction record shall be provided to OCSE no later than the following business day. A Monthly Transaction record including details of all disbursement transactions for that month shall be provided within three (3) business days following the end of the reporting month.

C.3.5 OPTIONAL SERVICES: DISBURSEMENT OF FUNDS DIRECTLY TO

FOREIGN CREDITORS

The core scope of this contract for payments sent by the ICPS to foreign countries is limited to the disbursement of funds to foreign authorities. However, in order to assist state child support agencies with cases where direct payments to foreign creditors are required, OCSE may request the Contractor to work with PSC and OCSE to develop processes to support the disbursement of child support payments by PSC to foreign creditors through approved funds transfer methods.

Exercising the option to disburse payments directly to creditors is entirely within the discretion of OCSE. OCSE may decide not to exercise this option at all during the term of this contract, or it may decide, in consultation with the Contractor, to implement this option in a limited manner.

C.3.6 CUSTOMER SERVICE

Customer service includes assisting state child support agencies and foreign authorities with setting up processes to send and receive payments, providing information to state child support agencies and foreign authorities about payments sent and received, including case and payment details if required, troubleshooting unidentified, misapplied, or returned payments. Unless OCSE has exercised its option to disburse payments directly to foreign custodial parents, the Contractor shall refer all calls and emails from foreign or U.S. custodial or noncustodial parents to the state child support agency or foreign authority that is managing the case, and the Contractor shall advise the state child support agency or foreign authority that the call or email has been referred to them.

The Contractor is responsible for having processes in place to identify callers for security purposes.

All email or other communications must comply with the security requirements set out in Section C.3.17. Provision of services to foreign authorities shall be in English.

The Contractor shall have clear processes for responding to calls and emails received from state child support agencies and foreign authorities by the end of the next business day. The Contractor shall have processes to identify and respond to urgent calls that require an immediate response.

With respect to calls received, within five days of the end of the reporting month, the Contractor shall provide a monthly report listing all calls received (Monthly Customer Service Report) which includes the name of customer, nature of call, and the resolution.

C.3.7 BANKING SERVICES

All international child support payments under this contract will flow through a dedicated HHS/OCSE bank account maintained by the U.S. Department of Treasury referred to as the “HHS/OCSE bank account”. The Contractor will have sufficient access to information about the payments made to the HHS/OCSE account and disbursed from the account to permit it to carry out its obligations under the contract.

C.3.8 BANK RECONCILIATION

The Contractor shall have clear approaches to performing account reconciliations for the HHS/ OCSE bank account. The bank reconciliation shall be completed in accordance with Generally Accepted Accounting Principles (GAAP), Generally Accepted Auditing Standards (GAAS) and any directions from PSC. The Contractor shall perform daily, weekly and monthly reconciliations.

The Daily Reconciliation Report shall be provided to OCSE on the next business day, the Weekly Reconciliation Report shall be provided on the next business day following the end of the week, and the Monthly Bank Account Reconciliation statement shall be provided to OCSE within 10 calendar days following the end of the report month.

C.3.9 PAYMENT PROCESSING SOFTWARE REQUIREMENTS

C.3.9.1 Payment processing software The Contractor shall have a clear approach to customizing their existing SDU solution for payment processing that provides equivalent functionality to that used in an SDU, tailored to meet the specific requirements of the ICPS.

In addition, the software shall be capable of providing the following functions:

1. Establishing and maintaining a database to be used for identifying incoming and outgoing payments. The database shall be capable of recognizing collections that are consistent from payment to payment for more efficient processing.

2. Processing multiple payors and/or cases included in one payment.

3. Preparing disbursement files in the format required by OCSE, PSC and ITS.

4. Producing, at a minimum, the reports identified in Section F.3.

The vendor proposed solution must meet all applicable requirements specified by the HHS Financial Overlay guidance and PCI.

C.3.10 OUTREACH

In order to increase the volume of international transactions being processed by the ICPS, the Contractor shall assist states to transition all international payments to flow through the ICPS, and shall provide assistance to OCSE to work with foreign authorities to send all incoming payments to the U.S. through the ICPS. The Contractor shall prepare an Outreach Plan and provide it to OCSE sixty (60) days after the start of the Pilot phase identifying strategies for increasing the use of the ICPS by states and foreign countries. An updated Outreach Plan shall be provided each year, within sixty (60) days of the start of the contract year.

C.3.11 CHANGE ORDER PROCESS

OCSE reserves the right to request from time to time changes to the requirements and specifications of this contract and the work to be performed by the Contractor under this Contract.

During the course of ordinary business, it may become necessary for OCSE to create additional services/deliverables.

C.3.11.1 Change requests:

The following procedures shall be used for Change Orders in accordance with FAR 52.212-4(c):

1. Where OCSE would like the Contractor to provide additional services/deliverables, OCSE shall provide the Contractor with a request to provide a detailed outline of all work to be done, including tasks necessary to accomplish the services/deliverables, timeframes, listing of key personnel assigned, estimated hours for each individual per task, and a complete and detailed cost justification.

2. The Contractor shall respond within a reasonable time period to the request with the required information and a proposal to provide the services or deliverables.

3. By giving the Contractor written notice within a reasonable time, OCSE may accept a Contractor proposal for change, reject it, or reach another agreement with the Contractor. Should the parties agree on carrying out a change, a written contract change order must be prepared and issued under this contract, describing the change and its effects on the services and any affected components of this contract (a “Contract Change Order”).

4. No proposed change may be performed until the proposed change has been specified in a duly executed Contract Change Order issued by OCSE.

5. If OCSE requests or directs the Contractor to perform any activities that Contractor believes constitute a change, the Contractor must notify OCSE that it believes the requested activities are a change before beginning to work on the requested activities. If the Contractor fails to notify OCSE before beginning to work on the requested activities, then the Contractor waives any right to assert any claim for additional compensation or time for performing the requested activities. If the Contractor commences performing work outside the scope of this contract and then ceases performing that work, the Contractor must, at the request of OCSE, retract any out-of-scope work that would adversely affect this contract.

6. If the Contractor does not so notify OCSE, the Contractor has no right to claim thereafter that it is entitled to additional compensation for performing that service or providing that deliverable.

C.3.12 INDEPENDENT AUDITS

C.3.12.1 SOC 2 Audit The Contactor shall engage an independent auditing firm to conduct annual SOC 2 Audits of the Contractor’s ICPS operations and computer systems software and hardware that hosts the child support payment processing system and the data files created or maintained in that system, including bank reconciliations and transaction processing. The audit shall be performed in accordance with audit guidance including Statement on Standards for Attestation Engagements (SSAE) 18 auditing standard requirements. and Reporting on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy (Guidance) as published by the American Institute of Certified Public Accountants (AICPA) and as updated from time to time; or according to the most current audit guidance promulgated by the AICPA to assess the security of client data in an outsourced arrangement.

1. The type of audit to be performed is a SOC 2 Type 2 Report (referred to as the “SOC 2 Audit”).

2. The SOC 2 Audit shall report on a description of the Contractor’s system and the suitability of the design and operating effectiveness of controls relevant to one or more of the following trust principles [Security, Availability, Processing Integrity, Confidentiality, or Privacy] as defined in the aforementioned Guidance.

Audits shall be performed at the Contractor’s expense.

3. The SOC 2 Audit shall include subcontractors in which goods or services are subcontracted by the Contractor and that provide essential support for the services under this contract. The Contractor shall ensure the right to audit with subcontractor(s) in performance of the SOC 2 Audit.

4. A complete copy of the Final SOC 2 Report shall be provided by the independent auditor directly to the OCSE and Contractor on or before June 1st each year.

5. In the event that deficiencies are identified in the SOC 2 Audit requiring a Corrective Action Plan (CAP), OCSE will notify the Contractor in writing within thirty (30) calendar days. The Contractor shall submit the CAP to OCSE within seven business days after written notification that the CAP is required. The Contractor’s CAP shall describe in detail the remedial actions that will be taken by the Contractor to resolve the deficiencies and the timeline (begin and end dates) for completing each action. In the event that the deficiencies are not remedied as set out in the plan, or at all, OCSE reserves the right to withhold payments or terminate the contract under Section C.5.3.

6. If the Contractor fails at any time to obtain an annual SOC 2 Audit during the term of this contract, OCSE shall have the right to retain an independent audit firm to perform a SOC 2 Audit of the…