A02.12 PWS CWIFP Financial Transaction Processing Support dated 2026.03.17.docx

PERFORMANCE WORK STATEMENT (PWS)

CORPS WATER INFRASTRUCTURE FINANCING PROGRAM (CWIFP) FINANCIAL TRANSACTION PROCESSING SUPPORT

1.0 BACKGROUND

The U.S. Army Corps of Engineers (USACE) administers a federal credit program, known as CWIFP, as authorized by the Water Infrastructure Finance and Innovation Act (WIFIA). CWIFP provides federal credit assistance in the form of secured (direct) loans or loan guarantees for eligible water resource infrastructure projects. Currently, eligibility is limited to dam safety projects and was recently expanded to include levee projects. The final program rule (“Credit Assistance and Related Fees for Water Resources Infrastructure Projects”) was published in the Federal Register on May 22, 2023. CWIFP issued its first Notice of Funding Availability (NOFA) on September 20, 2023, which resulted in CWIFP inviting 18 applicants to submit Full Applications. More information on the selected applicants and on the program, to include future funding rounds, can be found on the CWIFP website at https://www.usace.army.mil/CWIFP.

2.0 SCOPE

The work under this contract involves supporting USACE in the execution of CWIFP. Contractor support will include assistance and guidance related to underwriting, accounting, project and borrower eligibility screening, FCRA compliance, and related financial efforts necessary for successful administration of a federal credit program. The Contractor shall have demonstrated expertise and experience in developing and supporting the administration of federal credit programs, preferably those involving infrastructure, including experience in program activities that require interactions with the Credit Crew and FCRA program examiners at the Office of Management and Budget (OMB). Contractor support for the execution of program tasks must adhere to all guidelines set forth in OMB Circular A-129 and Circular A-11 (references listed in Section 9.0 of this PWS).

3.0 GENERAL REQUIREMENTS

The following sub-sections provide details of various general requirements for this effort.

3.1 Non-Personal Services

The Contractor shall provide strictly non-personal services and Contractor employees are not subject to direct supervision and control by the Government. The Contractor shall advise and support the Government but shall not make final decisions or certifications on behalf of the Government nor perform any inherently governmental functions. The Contractor and its employees shall not represent the Government nor appear to represent the Government in performance of these contract services. Contractor personnel shall clearly identify themselves as contractor employees in all interactions during contract performance.

3.2 Contract Administration

The Contractor shall establish processes and assign appropriate resources to effectively administer the requirement. The Contractor shall respond to Government requests for contractual actions in a timely fashion and per performance standards in Section 6. The Contractor shall have a single point of contact between the Government and Contractor personnel assigned to support the contract. The Contractor shall assign appropriate personnel to tasks and shall maintain proper and accurate time keeping records of those personnel assigned.

The Contractor shall accomplish the assigned work with qualified personnel who have the appropriate combinations of education, training, and experience. The Contractor is responsible for maintaining the technical competency of its employees by providing training if needed to meet contract requirements. The Contractor shall be responsible for any subcontract management necessary to integrate work performed on this requirement and shall be responsible and accountable for subcontractor performance on this requirement. The Contractor shall also be responsible for insuring timely payment to subcontractors. The prime contractor will manage work distribution to ensure there are no Organizational Conflict of Interest (OCI) considerations.

3.3 Place of Performance

All work will be performed at the Contractor’s site.

3.4 Period of Performance (POP)

The POP is specified per each task in this PWS. The contract POP will not exceed 5 years from date of award of the contract.

3.5 Materials

All materials, minus expendable supplies, purchased by the Contractor with funds from this contract and used under this contract, become and remain the property of the Government.

3.6 Other Direct Costs (ODCs)

No ODCs and no travel are required for this contract.

4.0 PERFORMANCE REQUIREMENTS (TASK AREAS)

4.1 Loan Underwriting Support

The Contractor shall support USACE in underwriting a total of five loans. USACE will provide technical direction to begin work on each of the loans as applications are ready for processing. Underwriting support for each loan is expected to take approximately 6 to 18 months. USACE anticipates workload will be similar for loans moving quicker as compared to slower movers; the difference being the amount of time to process which is dependent upon borrower timeliness. This task requires experience in underwriting loans for other Federal credit programs. The task also requires a comprehensive understanding of CWIFP and its processes, procedures, and policy. This task will include supporting USACE in underwriting loans, including but not limited to the following for each loan:

The Contractor shall prepare (or assist the Government in preparing) a credit report of approximately 10 pages for each loan summarizing the due diligence findings and financial evaluation performed under the above tasks. The report may include the following sections: (1) executive summary, (2) discussion on applicable financial characteristics of the structure, (3) review of credit structure pledge, (4) outline of flow of funds, and (5) a risks and mitigants table. The Contractor will not be responsible for coordinating the loan closing process but may be asked to contribute to meetings with approving officials as necessary.

Options: Task 4.1 is a base task to be performed throughout the contract.

This contract will also include additional options for surge capacity quantity of 40 option tasks which each require the Contractor to process 1 additional loan transaction.

Period of Performance: The POP for Task 4.1 is 18 months from date of award of the contract. For the options, the POP is 18 months from date of award of each option.

4.2 Budget Information Development and FCRA Support

The Contractor shall support USACE in preparing responses to budget data requests (BDRs) (including those related to CWIFP credit subsidy rate calculations) and preparation for program data entry into MAX.gov – the OMB-managed online system used to collect and process information required for preparing the President’s budget.

CWIFP staff will update credit subsidy calculation input data (i.e., default curves and recovery assumptions) and will calculate credit subsidy estimates and reestimates for each CWIFP loan using the credit subsidy model approved by OMB for CWIFP. Under this task, the Contractor shall provide:

· Support on an as-needed basis to review those calculations, input data, and related documentation;

· Guidance relating to credit subsidy estimates, reestimates, and financing account interest calculations;

· Review of and expert feedback for CWIFP’s reestimate calculation and reporting processes; and

· Feedback addressing any other FCRA-related questions that arise during the period of performance.

Cloud-based tools to meet OMB data requirements (compliant with Army IT and cyber requirements) are preferred but not required. Experience with credit subsidy modeling for federal programs, financial modeling and calculation of loan reestimates is essential, and familiarity with MAX.gov is beneficial.

Options: Task 4.2 is a base task to be performed throughout the contract. The contract will include a quantity of 4 option tasks for this same task. The level of effort is expected to decrease over time, reaching a steady-state for the final three options. The first option is expected to be approximately 30% less than required for the base task, and the level of effort for the remaining options is expected to be approximately 15% than the first option. The first option task is anticipated to be exercised approximately 12 months after the date of contract award, and possibly at 24 months, 36 months and 48 months after date of contract award.

Period of Performance: The POP for Task 4.2 is 12 months from date of award of the contract. For the options, the POP is 12 months from date of award of the option.

4.3 Option Task – Federal Credit Program Training

The Contractor shall develop and conduct one week-long (20-40 hours) course related to Federal Credit programs, such as training on intermediate to more advanced underwriting topics. Other course topics could include reestimates or accounting practices for federal credit programs. The training is intended to provide Federal staff an increased understanding of lending as implemented under the WIFIA statute. The course will be conducted virtually or in-person at a facility provided by the Contractor. The Government may host up to 25 people including instructors. Travel is not required for the Contractor. No printed materials are required for course attendees.

Course content could include PowerPoint presentations, case studies, multiple-choice exercises, facilitated discussions and a final exam. Contractor shall provide all course materials in digital format to the Government team upon conclusion of the course. Contractor shall present draft training topics and materials to the Government prior to commencement of training. Contractor shall refine topics and materials as needed and shall obtain final Government approval prior to commencement of training.

Quantity: This option task may be exercised a maximum of 3 times at any time within the contract period of performance.

Period of Performance: The POP for Option Task 4.3 is 12 months from date of award of each option.

4.4 Option Task - Loan Application Review Assistance

The Contractor shall support USACE in assessing creditworthiness and eligibility of the applicants who submit preliminary applications as part of a second anticipated NOFA. USACE, with support from the Contractor, will evaluate CWIFP applications for financial assistance based on credit risks over the repayment period of the WIFIA credit assistance. Creditworthiness and eligibility requirements are detailed in the Program rule (see Section 9.0). Specific support could include conducting eligibility reviews for each applicant against requirements of 85 FR 39189 (see reference in Section 9.0 and example questionnaire in Appendix A).

Quantity: This option task may be exercised a maximum of 3 times at any time within the contract period of performance. This option task is anticipated to be exercised approximately 12 months after the date of contract award, and possibly at 24 months and 36 months after date of contract award.

Period of Performance: The POP for Option Task 4.4 is 12 months from date of award of each option.

4.5 Option Task – Third Party Credit Risk Assessment

The Contractor shall conduct a third-party credit assessment of the USACE underwriting effort for up to three loans. The purpose of the third-party credit assessment is to assist USACE in verifying the appropriateness of the Government’s loan underwriting effort. Upon receipt of a complete application, the Contractor shall conduct a limited review application materials provided by the borrower. Upon review of these materials, the Contractor shall conduct an initial meeting with the USACE underwriter to discuss the underwriter’s approach to evaluating key credit factors such as:

· Financial Strength: Profitability, liquidity, and leverage ratios; and

· Enterprise Risk: The enterprise’s business model and industry outlook; and

· Management Quality: Experience and competence of the management team.

· Collateral Quality: Value and reliability of the collateral/pledged cash flows.

The Contractor shall subsequently meet with the USACE underwriter a minimum of two and maximum of four times during the underwriting to discuss the credit structure, the Government’s sensitivity analyses, and any updates to the key credit factors. Upon completion of substantially final key credit terms (as evidenced through a term sheet) by USACE, the Contractor shall write a third-party credit assessment report of roughly 5 pages describing the Contractor’s role in reviewing the Government’s underwriting of the loan and the appropriateness of key business terms.

Loans for review are expected to be municipal, corporate, or project finance borrowers in the BBB credit rating category. USACE does not anticipate requiring the Contractor’s services for municipal or corporate borrowers in the A credit rating category but reserves the right to do so.

Quantity: This option task may be exercised a maximum of 3 times at any time within the contract period of performance. This option task is anticipated to be exercised approximately 18 months after the date of contract award, and possibly at 30 months and 42 months after date of contract award.

Period of Performance: The POP for Option Task 4.5 is 18 months from date of award of each option.

4.6 Option Task – Accounting Support for Federal Credit Programs The Contractor shall support USACE in updating or refining its financial systems to perform the accounting tasks required to support CWIFP. As part of this task, the Contractor shall:

· Provide guidance and be available to answer questions relating to the accounting requirements and standard processes for federal credit programs in compliance with OMB Circular A-11;

· Provide expert technical assistance on how to accurately reflect CWIFP transactions in the USACE financial statements as required by Treasury/Bureau of the Fiscal Services;

· Assist USACE in refining its standard procedures related to the annual budgeting process and the steps involved in obligating, disbursing and servicing a loan, and

· Review and provide feedback on CWIFP accounting documentation for all loan phases (loan set-up through servicing).

It is essential that the Contractor has significant experience in accounting for federal credit transactions.

Quantity: This option task may be exercised a maximum of 4 times at any time within the contract period of performance. This option task is anticipated to be exercised approximately 12 months after the date of contract award, and possibly at 24 months, 36 months and 48 months after date of contract award.

Period of Performance: The POP for Option Task 4.6 is 12 months from date of award of each option.

5.0 PROJECTED CONTRACT TIMELINE

The matrix on the page shows the projected timeline for when each task in this PWS is anticipated to be executed.

6.0 DELIVERABLES AND DELIVERY SCHEDULE

The Contractor shall provide reports and other print deliverables in publication quality format and provide web publishable versions of such deliverables. The table below identifies a set of deliverables that are required under this task order. Deliverables shall comply with the CWIFP Style Guide, which will be provided upon contract award. If applicable, deliverables shall also comply with Section 508 requirements (https://www.section508.gov/). The Contractor shall submit draft documents to the Technical Point of Contract (TPOC) and the Contracting Officer Representative (COR) for review before submitting the report for final approval. Changes to the draft shall be incorporated within 5 business days from comment by the Government.

4.1

Credit report for each loan

Due by the timeline set for each loan

The Government has unlimited rights to all documents and materials produced under this contract. All documents and materials produced under this contractor will become Government owned and become property of the Government with all rights and privileges of ownership/copyright belonging exclusively to the Government. These documents and materials may not be used or sold by the Contractor without written permission from the Contracting Officer. All materials supplied to the Government will become the sole property of the Government and may not be used for any other purpose. This right does not abrogate any other Government rights.

7.0 PERFORMANCE REQUIREMENTS SUMMARY (PRS)

The following table lists the performance standards for this contract.

8.0 GOVERNMENT FURNISHED PROPERTY (GFP)

At this time, the Contractor will not be provided GFP.

9.0 OTHER REQUIREMENTS

9.1 Identification of Contractor Employees

All Contractor personnel attending meetings and working in situations where their contractor status is not obvious to third parties must identify themselves, to include proper marking of signature blocks in correspondence, to avoid creating an impression in the minds of members of the public that they are Government officials. The Contractor shall ensure that all documents or reports, produced by the Contractor are suitably marked as contractor products or that contractor participation is appropriately disclosed. Contractor employees shall identify themselves by name and company affiliation when answering the telephone, presenting briefings, conducting or attending meetings, and seminars. All Contractor correspondence shall include their company name.

9.2 Disclosure of Artificial Intelligence (AI)

The contractor shall fully disclose all uses (including proposed used of AI) of chat bots, large language models, neural networks, deep learning models, and/or other artificial intelligence code, applications, or services (collectively referred to as “artificial intelligence”), including integrated artificial intelligence features in commercial products, used during development, testing, and/or delivery of any proposals, services, or products developed in response to this contract and affiliated task orders.

Such disclosures shall include: complete identification information of the artificial intelligence used, including name, version, and release information; a description of the specific service or product on which the artificial intelligence was used; and a description of the specific role(s) and purpose(s) served by the artificial intelligence during development, testing, and delivery of services and products, and phase(s) and component(s) thereof. Any service or product delivered to the government shall be free of any constraints, conditions, and limitations on uses unless otherwise specified in subsequent task orders.

9.3 Security and Safety

9.3.1 General Security Requirements

The security requirements described below apply to all contract personnel (including all employees of the prime Contractor and Subcontractors) supporting the performance requirements for this contract. The Contractor is responsible for compliance with these security requirements. Questions regarding security matters shall be addressed to the designated Government representative (e.g., Contracting Officer Representative (COR), Requiring Activity (RA) representative, or Contracting Officer (if a COR or other RA representative is not appointed)). Contract personnel are critical to the overall security and safety of USACE installations, facilities and activities, and security awareness training contributes to those efforts. Contractor personnel and vehicles are subject to search when entering federal installations. Additionally, all contract personnel shall comply with Force Protection Condition (FPCON) measures, Random Antiterrorism Measures (commonly referred to as “RAMs”), and Health Protection Condition (HPCON) measures. The Contractor is responsible for meeting performance requirements during elevated FPCON and/or HPCON levels in accordance with applicable RA plans and procedures. In addition to the changes otherwise authorized by the changes clause of this contract, should the FPCON or HPCON levels at any individual facility or installation change, the Government may implement security changes that affect contract personnel. The Contractor shall ensure all contract personnel are aware of their security responsibilities, including any site-specific requirements identified in local policies or procedures.

All Contractor employees who require physical access to government-controlled facilities or logical access to government information and or information systems are subject to a fitness determination and appropriate vetting.

The work under this contract will be UNCLASSIFIED and network or facility access is not required except for participation in meetings. Therefore, the Contractor(s) will not require a Common Access Card (CAC). Contractor employees may require access to government facilities for meetings, site visits, to gather data, etc. Infrequent Contractor access to a government facility shall be coordinated by the Government TPOC or COR. The COR or TPOC for each contract is the liaison between the security office and the contractor and will coordinate any visits with the security office.

9.3.2 Security Training Requirements

All contract personnel with access to critical information (as identified in the RA's Operational Security (OPSEC) Program) shall complete initial and annual refresher OPSEC Level I Awareness training, which is available at the following websites: https://www.iad.gov/ioss/, or http://www.cdse.edu/catalog/operations-security.html (websites subject to change). All contract personnel with access to Controlled Unclassified Information (CUI) shall complete initial and annual refresher CUI training in accordance with applicable Army policy.

9.3.3 E-Verify Program

Contractors shall comply with the requirements set forth in FAR clause 52.222-54 Employment Eligibility Verification and FAR Subpart 22.18 in using the E-Verify Program at (https://www.e-verify.gov) (website subject to change) to meet the contract employment eligibility requirements. Contractors are encouraged to cooperate with Federal and State agencies responsible for enforcing labor requirements to include eligibility for employment under United States immigration laws in accordance with FAR 22.102-1(i). An initial list of verified/eligible candidates shall be provided to the COR no later than three business days after the initial contract award. When contracts are with individuals, the individuals will be required to complete a Form I-9, Employment Eligibility Verification, and submit it to the Contracting Officer to become part of the official contract file.

9.3.4 Safety

Contractor Compliance: The Contractor and its Subcontractors shall comply with Public Law 91-596 (Occupational Safety and Health Act (OSHA)) and the Environmental, Safety, and Occupational Health (ESOH) (DODD 4715.1E). These requirements shall be incorporated into the Contractor’s safety and health program. The Department of Defense (DoD) participates in the OSHA Voluntary Protection Program (VPP). Contractor personnel performing services on a DoD installation shall participate in the local VPP. Information on the VPP is available at https://www.osha.gov/dcsp/vpp/all_about_vpp.html.

Mishap Notification: The Contractor and its Subcontractors (if applicable) shall promptly report pertinent facts regarding mishaps while performing services under this contract at government facilities. Contractor personnel shall promptly notify the COR or TPOC and cooperate in any resulting safety investigation.

9.4 Section 508

As applicable, the Contractor shall adhere to the standards of accessibility as outlined in Section 508 of the Rehabilitation Act.

9.5 Quality Control and Quality Assurance

The Government shall monitor the Contractor’s performance under this contract in accordance with the Government’s quality assurance surveillance plan (QASP). The QASP defines how the performance standards will be applied, the frequency of surveillance, and the acceptable quality levels (performance thresholds). The Government has the right to conduct inspections and performance evaluations at any time and at any place where contract performance occurs. If any aspect of the performance is not in conformance with the requirements of this contract, the Government has the right to issue to the Contractor a Contract Discrepancy Report (CDR). The Contractor shall explain in writing why performance was not in conformance with the requirements of the contract, how performance will be returned to conformance, and how recurrence of the problem will be prevented in the future. The Contractor shall complete and return the CDR to the Contracting Officer and COR within five working days of receiving the CDR. The Contractor shall maintain copies of all inspection and evaluation reports. Government review of Contractor deliverables will be guided by the QASP. The QASP will be based on the requirements and acceptance criteria in the PWS.

9.6 Key Personnel

All Key Personnel shall submit a resume that provides at a minimum their contact information and relevant experience. The Government reserves the right to approve changes to Key Personnel throughout the POP of this contract.

10.0 APPLICABLE DOCUMENTS

· Circular No. A-129. Policies for federal credit programs and non-tax receivables. Executive Office of the President. Office of Management and Budget. January 2013. Available at: https://www.whitehouse.gov/omb/information-for-agencies/circulars/#budget

· Circular No. A-11. Preparation, submission, and execution of the budget. Executive Office of the President. Office of Management and Budget. August 2021. Available at: https://www.whitehouse.gov/omb/information-for-agencies/circulars/#budget

· “Credit Assistance and Related Fees for Water Resources Infrastructure Projects”. U.S. Army Corps of Engineers, Department of Defense (DoD). CWIFP Program rule published 22 May 2023. Available at:

https://www.federalregister.gov/documents/2023/05/22/2023-10520/credit-assistance-and-related-fees-for-water-resources-infrastructure-projects

· “Notice of Funding Availability for Applications for Credit Assistance Under the Corps Water Infrastructure Financing Program.” U.S. Army Corps of Engineers, Department of Defense (DoD). Published 20 September 2023. Available at:

https://www.federalregister.gov/documents/2023/09/20/2023-20286/notice-of-funding-availability-for-applications-for-credit-assistance-under-the-corps-water

· “Water Infrastructure Finance and Innovation Act Program (WIFIA) Criteria Pursuant to the Further Consolidated Appropriations Act, 2020.” Federal Register Notice 85 FR 39189 published on 30 June 2020. Available at:

https://www.federalregister.gov/documents/2020/06/30/2020-13889/water-infrastructure-finance-and-innovation-act-program-wifia-criteria-pursuant-to-the-further

11.0 CONTRACTING OFFICER REPRESENTATIVE (COR) AND/OR TECHNICAL POINT OF CONTACT (TPOC) A COR and/or TPOC will be appointed for this contract. The COR and TPOC have no authority to direct the Contractor in any way to alter the contractual obligation. The Contracting Officer is the only individual authorized to make changes to the contract.

APPENDIX A: Example 85 FR 39189 Screening Questionnaire Fiscal Year:

Borrower Name:

Project Description:

A. Is the project, in whole or in part, a project currently authorized by Congress for the Army Corps of Engineers or Bureau of Reclamation to construct?

B. Is the project, in whole or in part, a local cost share requirement for an Army Corps of Engineers or Bureau of Reclamation project?

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