A03.1_SOW.pdf

STATEMENT OF WORK (SOW)

C.0. GENERAL:

C.1. SCOPE: The scope of this effort is to obtain licenses and maintenance for the Army Active Pay System – Personal Computer (AAPS-PC) software for accurate computation of pay and entitlements for active duty military members. Maintenance will include updates to that software.

C.2. BACKGROUND: DFAS seeks annual licenses and maintenance for personal computer based software to compute off-line (manual) active duty military pay entitlements.

C.3.0. REQUIREMENTS/TASKS:

C.3.1. SOFTWARE TO CALCULATE MILITARY PAY AND ENTITLEMENTS

The annual license is for the software that creates and maintains payment records, structures pay entitlements and deductions as applicable, calculates federal and social security taxes, leave accrual, changes due to unauthorized absences, and specified reports. The military has an End- Of-Month and an optional Mid-Month for a possible total 24 payments. The AAPS-PC software shall provide an option to pay all pay and allowances or to pay specific entitlements only.

The Vendor shall provide to DFAS three (3) annual licenses for AAPS-PC to run on separate Government computers at a minimum each licensed installation shall support nine (9) operator accounts. The three licenses provide the right to load the software on three different computers.

The requiring office has the right to use the software to calculate pay entitlements for as many members as required to meet the mission.

The software calculates total pay entitlement per section C3.1.8 to arrive at a gross pay amount and applies the appropriate withholdings for Employee status i.e. Married w/# dependents to arrive at the net pay calculation.

Exemptions and withholdings refer to ALL pay that is subject to Internal Revenue Code is covered by IRS Pub 15. The most up to date IRS tax tables shall be used for each pay calculation without any external connectivity. Updates shall be sent by disk and loaded manually by a government employee onto the personal computer.

The calculated net pay amount for each employee shall be calculated and reports available as defined, C.3.1.12. The computer and the software solution provided under this contract will not have an external interface to banking systems. There can be no external interfaces to the internet or network connection. The output shall be screen display and printable reports as define in

C.3.2.12 that identifies the pay entitlement for each member entered. This information will be entered into a different system that will affect the payments.

There is a requirement for the W-2s to be processed. The vendor’s software shall provide W2 roll up data. The software shall produce a W2 based on the amounts calculated for each member at the close of the tax year.

Any updates plus the initial load of the software on the government computer shall be performed at DFAS Indianapolis Center by Government Personnel. For clarity purposes, any on-site support would only be at the DFAS Indianapolis Center.

The licensed software shall provide the following:

C3.1.1 Accurately computes pay and entitlement calculation for active duty military personnel;

C3.1.2 Capable of functioning on a personal computer without any network connectivity. The software must be able to operate on the DFAS standard issue personal computers, and shall operate on Microsoft 11 and above.

C3.1.3 Configured to process properly all military pay and allowances and/or a selected set of pay entitlements depending on individual member’s circumstances.

C3.1.4 Capable of operating in a classified environment and is Defense Information Systems Agency (DISA) Security Technical Implementation Guides (STIG) compliant. In addition, DoD security rules require all software to be using currently supported code.

C3.1.5 Ensure all military pay computations are in accordance with Department of Defense Financial Management Regulation 7000.14-R, Volume 7A as well as the Joint Federal Travel Regulations.

C3.1.6 Accurately determines all income subject to taxation and withholds correct amounts as established by the Internal Revenue Code and Internal Revenue Service tax tables.

C3.1.7 Capable of establishing and managing debts that are payable to the United States.

Specifically, the system must apply the correct precedence for collection and determine the proper maximum percentage available for withholding in accordance with statutory and regulatory guidance.

C3.1.8 Specific military pay system requirements include as defined in Department of Defense Financial Management Regulation 7000.14-R, Volume 7A, but are not limited to, the following:

a) Establish and maintain Soldier profile

b) Accrue and maintain leave

c) Account for absences without leave (AWOL)

d) Account for Civil and Military Confinement

e) Process promotions and demotions

f) Process military pay in a combat zone

g) Process casual and advance pay

h) Process and track dental insurance

i) Properly account for Soldiers/Family Group Life Insurance

j) Process and account for Basic Allowance for Housing (BAH)

k) Process and account for Basic Allowance for Housing – II (BAH-II)

l) Process and account for Basic Allowance for Subsistence (BAS)

m) Process and account for Family Separation Allowance (FSA)

n) Overseas Station Allowance – Overseas Housing Allowance and Overseas Cost of Living Allowance (COLA)

o) Miscellaneous Collection

p) Field Rations Collection

q) Thrift Savings Program (Traditional and Roth) (TSP)

r) Dive Pay

s) Hardship Duty Pay

t) Foreign Language Bonus Pay

u) Special Duty Assignment Pay

v) Hostile Fire Pay

w) Dental Pay

x) Medical Pay

y) Optometry Pay

z) Miscellaneous Pay

aa) Pharmacist Pay

bb) Veterinarian Pay

cc) Nurse Pay

dd) Career Sea Pay

ee) Fly Pay

ff) Demolition Pay

gg) Parachute Pay

hh) Hardship Duty Location Pay (HDLP)

ii) Submarine Pay

jj) Fly Pay – non crew member

kk) Fly Pay – crew member

ll) Assignment Incentive Pay AIP

mm) Continental United States (CONUS) COLA

nn) Multiple Bonus types

C3.1.9 The software must be able to process start, stop, change, report, correct and cancel actions on individual pay records to support the entitlements identified in C3.1.8.

C.3.1.10 The software updates shall be delivered via FTP in executable form. Unless otherwise instructed, deliverables shall be delivered to the Program Manager. There is no file loaded into a “government payment system”. The DVD is the method for delivering the software to DFAS.

Upon receipt, the DVD will be placed into the DVD drive of the personal computer and loaded into the personal computer’s memory using instructions provided by the vendor. For example, it will be the vendor’s responsibility to explain what the person who placed the DVD into the personal computer DVD drive must type to get the software from the DVD and onto the personal computer. DFAS does not care what file type is used, what is essential is that DFAS can take a DVD and load the software onto a personal computer matching the specification provided in the

RFQ.

C.3.1.11 The contractor shall provide software and meet the performance standards set forth in Technical Exhibit 1 and referenced as paragraphs C.3.1.1.1.

C.3.1.12 The software shall provide the following four reports via screen display and printable (outputs): Summary Enlisted, Summary Officer, Leave & Earning Statement, and W2-W3 rollup at yearend.

C.3.2. SOFTWARE UPDATES

Software updates shall be included in the purchase price of the license for the period of performance. Software update is defined as follows:

An update ensures that software installed for operational use continues to perform as intended. The objective is to modify an existing software product while preserving its integrity. Software updates include improvements, implementation, migration, and related activities. It includes modification of a software product after delivery to correct faults, to improve performance or other attributes, or to adapt the product to a modified environment.

The contractor shall perform updates meeting the performance standards set forth in Technical Exhibit 1.

Corrective Update - diagnosis and correction of latent errors in the code.

Adaptive Update - modification to keep software usable when running in a new system environment.

Perfective Update - modification of software after delivery to improve its performance.

C.3.3. OPERATIONAL SUPPORT

The contractor shall provide telephonic support during normal business hours (eastern standard) for their product. This includes responding to questions from designated government technical/functional staffs. Customer support is needed to respond to questions involving:

system error analysis, database analysis, operational questions, technical questions, rule interpretations, version installation support, and other operational problems. The required response time is 4 hours (from the inquiry). This sustainment activity must ensure DFAS is able to always compute pay calculations correctly as well as insure a stable efficient working platform.

Provide on-site assistance to a user when it is determined by the government technical/functional staff that the situation cannot be resolved telephonically and warrants on-site assistance for a satisfactory resolution to the situation, whether technical or functional. This task shall be performed on an as-needed basis. The decision on whether the situation is resolved or not is a decision made by the Program Management Staff. Provide training materials to allow proper use of software if required by any software changes.

DFAS requires a phone number that our office can call if it experiences problems in using the software. The vendor will not be able to “remote” into the software for problem analysis. DFAS will need to print out the error message and redact the data prior to sending to the vendor. The interaction shall either be answering the phone call or responding back within 4 hours and talking to the Government POC to resolve the issue. The RFQ requires phone support; email is not an acceptable option.

The contractor shall perform operational support meeting the performance standards set forth in the performance requirement summary matrix and identified as paragraph C.3.3..

C.3.4 CODING AND TESTING SUPPORT

C.3.4.1 As pay and entitlements change, the contractor shall make changes to its software to accommodate such changes. All software changes shall include performing unit testing of software prior to delivery to the Government. All software changes will also have a user acceptance testing coordinated by the contractor with the Program Management office. These changes normally occur annually based on Congressional legislation. Changes may also occur due to changes in Internal Revenue Service (IRS) regulations or project office requests. Changes usually occur at the end of the fiscal year, to be effective in the succeeding fiscal year. The Government reserves the right to direct the contractor not to implement certain non-pay impactive legislative changes. The contractor shall perform unit testing of rule changes, software error corrections, and database recovery/correction programs.

C.3.4.2 Software upgrade procedures:

The contractor shall document in writing to the Program Office, what changes are included as part of any upgrades/patch or new release/version.

C.3.4.3 The contractor shall provide installation procedures for any software or databases update to the Program Office and for any software release.

The contractor shall perform coding and testing meeting the performance standard set forth in the performance requirement summary matrix and identified as paragraph C.3.4.1.

C.3.5 INSPECTION AND ACCEPTANCE

Upon delivery of the DVD containing the software updates, the Program Office will perform an inspection to verify the software is working properly. This inspection will involve processing test data to verify that the results produced are accurate.

C.3.5.1 Initial Delivery:

If the software updates do not pass the initial test, the Program Office will notify the contractor that the software has been rejected and the Government reserves the right to terminate the contract for default or extend the delivery date. If the software passes the inspection, the Program office will notify the contractor and COR of its formal acceptance of the delivery. The contractor can only invoice for CLIN 0002 upon receiving notice of acceptance by the Program office.

C.3.5.2 Delivery of Updates

Updates shall be delivered within 30 calendar days of notification by the Project Office, It the software is not acceptable to the Project Office, the Program Office will notify the contractor and provide the data underlying the improper calculations. The contractor will then address the software within 14 days by making correction and re-submit back to the Program office. If the software passes the inspection, the Program office will notify the contractor and COR of its formal acceptance of the delivery.

C.4.0. PLACE OF PERFORMANCE

DFAS - Technology Services Organization – Indianapolis ATTN: Acquisitions and Agreements Branch, DFAS-ZTABD/IN 8899 E. 56th Street Indianapolis, IN 46249

C.5.0. PERIOD OF PERFORMANCE

Base Year: April 01, 2024 through March 31, 2025 Option Yr1: April 01, 2025 through March 31, 2026 (if exercised) Option Yr2: April 01, 2026 through March 31, 2027 (if exercised) Option Yr3: April 01, 2027 through March 31, 2028 (if exercised) Option Yr4: April 01, 2028 through March 31, 2029 (if exercised)

C.6.0. DELIVERABLES:

See attached deliverable schedule (Exhibit 2).

C.7.0. TRAVEL

The contractor shall perform travel if directed by the Government to perform work on this contract. There may be travel required to Indianapolis to discuss software patches/upgrades/new versions with the DFAS Program Manager. Historically the amount of travel needed was less than two (2) trips per year. The contractor shall not initiate any travel during the performance of this SOW unless authorized, in writing, by the COR or DFAS Program Manager. All travel shall be billed in accordance with the Joint Travel Regulation (JTR), FAR 31.205-46.

C.8.0 PROPERTY OF THE GOVERNMENT:

Most of the work will be at the contractor facility. If travel to government is necessary, the government shall provide the necessary office space, general office supplies, and other items determined necessary for the contractor to perform services.

C.9.0 GOVERNMENT POINT OF CONTACT (GPOC) (OR COR / COTR):

The Government representatives and their respective roles are as listed below:

A. Contracting Officer:

Chrissy Webb, Columbus Center 3990 East Broad Street Columbus, OH 43213 Phone: 614-614-701-5687 Email: chrissy.j.webb.civ@mail.mil

B. Contracting Officer’s Representative (COR):

James Phillis Defense Finance and Accounting Service DFAS - Technology Services Organization – Bratenahl ATTN: Acquisitions and Agreements Branch, DFAS-ZTAIC

555 East 88th Street Bratenahl, Ohio 44108Phone: 216-204-3194 Email: James.W.Phillis.Civ@mail.mil

TECHNICAL EXHIBIT 1

PERFORMANCE STANDARD

Subject Objective Acceptable Quality Level

(AQL)

Monitoring Method

Incentive

C.3.1.1.1

Deliver a software license

The contractor shall provide software that allows for manual input of member data and calculates pay and entitlements, tracks leave for Army active component members.

The software properly calculates all applicable tax withholdings.

Included with the product will be the software license.

Calculates the correct pay and entitlements for 100% for all data entered.

The PMO will inspect the delivered product by inputting test data to verify it is accurately producing results.

Delivery of accurately functioning software on initial delivery is performance that exceeds the performance standard may be rated as Excellent or Very Good in the performance assessment depending on the significance and benefit to the Government.

Delivery more than once of the initial software is performance that does not meet the performance standard may be rated as unsatisfactory in the performance assessment depending on the significance and

(AQL)

Monitoring Method

Incentive impact to the Government.

C.3.2.

Software updates/patch es/new versions

The contractor shall update its software during the life of this contract, including changes that are adaptive, prescriptive or corrective.

Updated versions of the software are delivered to the government within 30 calendar days.

PM inspect and test any updated software to ensure it is accurately computing pay and entitlements.

Delivery of properly functioning software the first time is performance that exceeds the performance standard may be rated as Excellent or Very Good in the performance assessment depending on the significance and benefit to the Government.

Delivery of updates that have to be returned for re-work more than once is performance that does not meet the performance standard, may be rated as unsatisfactory in the performance assessment significance and

(AQL)

Monitoring Method

Incentive impact to the Government.

C.3.3.

Operational Support

The contractor shall timely respond to questions and provide accurate responses tailored to the individual needs to the caller.

The contractor shall field calls during normal business hours and respond within 4 hours.

87.5% of inquiries are processed within the agreed upon time.

The program office will track each inquiry made, time it was made and time of vendor response. It will identify whether response was timely (within 4 hours).

At the end of the rating period (quarter defined as a 3 month period), the PM will divide the number of non-responsive inquiries by the total number of inquiries to arrive at a percentage. It will report to the COR anytime the

Performance that is above the ALP may be rated as Excellent or Very Good in the performance assessment depending on the significance and benefit to the Government.

Performance that does not meet the ALP may be rated as unsatisfactory in the performance assessment depending on the significance and impact to the Government.

(AQL)

Monitoring Method

Incentive percentage is below the

ALP.

C.3.4.1 Coding and Testing Support

The contractor shall code needed changes to keep the software current with all pay rule changes and test all changes to the software to ensure proper functioning. Upon identification of a needed update, the contractor shall notify the program office of when an update will be available. The contractor shall perform unit testing of changes made to the software.

The contractor shall also participate in user acceptance testing with the program office.

Coding and testing is completed on time 90% of the time during the performance period.

The Program office will monitor the schedule for completing any needed changes. The PM will collect bi-weekly updates to monitor progress in the schedule.

Coding and testing task that are missed will be recorded.

Rating period is a quarter (3 months) and PM will divide the number of missed coding and testing tasks by the total number of coding and testing task to obtain a percentage.

Meeting the schedule 95% of the time is performance that exceeds the performance standard and may be rated as Excellent or Very Good in the performance assessment depending on the significance and benefit to the

Meeting the scheduled tasks 90 to 94.99% of the time is performance that meets the performance standard will be rated as Satisfactory in the performance assessment

(AQL)

Monitoring Method

Incentive

Percentage will be compared against the ALP and if below, reported to the

COR.

significance and benefit to the Government.

Meeting the scheduled tasks less than 90% of the time is performance that does not meet the performance standard, may be rated as unsatisfactory in the performance assessment depending on the significance and impact to the

TECHNICAL EXHIBIT 2

Deliverables Schedule

Deliverable Frequency # of Copies Medium/Format Submit To

License Once Three (3) licenses within 2 weeks of award.

Paper copy of license.

Program Office

User Training materials

Once One Paper Program Office

Updated software with integrated legislative/rule changes

As required One FTP transfer Program Office

Updates of changes

As needed One Electronic Copy MS Word Program Office

Software Updates/Patches/ New Releases

As needed One Copy FTP transfer Program Office

Army Active Pay System – Personal Computer (AAPS-PC)

Acceptance Criteria

Acceptance of software changes depends on each version to the software passing software testing. Using a data sample size of 10 records consisting of five officers and five enlisted, the Program Office will manually calculate one end-of-month payroll cycle for 12 consecutive months to simulate military pay processing for one calendar year. For each payroll, the entitlements will vary to ensure that all entitlements defined in the Statement of Work for this contract are incorporated into the calculations. AAPS-PC will be provided the exact data used for manual calculation. The Program Office will compare results of manual computations to the results generated by the AAPS-PC. Additionally, the Program Office will review the following outputs as defined in the contract:

1) Summary of Payroll Accounting Data. This report summarizes pay and allowances by category (officer and enlisted) at the line of accounting level. Acceptance requires accurate summary for each payroll.

2) Leave and Earning Statement (LES). In addition to displaying all earnings, deductions, and net pay, the LES also tracks leave and provides comments to the Soldier.

Acceptance requires accurate pay information as well as accurate leave accrual, use, and fiscal year carry forward balance.

3) W2. Acceptance requires the creation of IRS-approved W2 statements that accurately report all taxable earnings, withholdings, and IRS-mandated income information.