AG-31ME-S-13-0008_RFQ_-Financial_Advisroy_Services.pdf

Solicitation AG-31ME-S-13-0008

May 16, 2013

To: Interested GSA Schedule 520 Firms

Subject: Request for Quotation (RFQ) Solicitation

Number AG-31ME-S-13-0008

Rural Development (RD) is issuing this competitive RFQ to solicit GSA Schedule 520 contract holders for the purpose of entering into an Indefinite Delivery/Indefinite Quantity (IDIQ) type contract that will result in the issuance of individual task orders (TO). The Contractor shall perform the effort required by this IDIQ and resulting TOs on a Fixed Price Labor Hour and Firm-Fixed Price (FFP) basis. RD will conduct this acquisition using Subpart 8.4 of the Federal Acquisition Regulation. If you are interested in this acquisition, you may participate by submitting your response in accordance with the following instructions. Submission shall be electronic by via email.

Prospective Quoters are required to immediately notify Kesha Mumford via email at Kesha.Mumford@wdc.usda.gov of their intent to submit a quotation. Negative responses are requested. Quoters are required to submit both a written Technical Quote and a separate Price Quote for the purposes of assuring that the prospective Contractor is fully cognizant of the scope of this contract and has the capability to complete all Statement of Work (SOW) requirements.

Quoters are to provide a total solution using the GSA Schedule 520. Quoters may propose appropriate labor categories from their own Schedule contract(s) or Quoters may team with another Schedule holder(s) to quote a blended solution.

All Quoters shall certify in writing that their proposed solution falls within the scope of their referenced GSA Schedule contract(s).

If you have questions regarding this requirement, please submit your inquiries immediately via email but no later than Thursday May 23, 2013 at 12:00 pm EST to Kesha Mumford at kesha.mumford@wdc.usda.gov.

Please be advised that the Government reserves the right to transmit/post those questions and answers of a common interest to all prospective Quoters. Answers to questions will be shared to all quoters positively responsive to this solicitation.

Award will be based upon overall best value to the Government.

The Government anticipates of an award with Indefinite Delivery Indefinite Quantity contract resulting in the issuance of task orders. These task orders shall be performed on a FP or FFP basis.

All potential Quoters are cautioned to strictly adhere to the provisions of their GSA Schedules contract and this RFQ regarding conflicts of interest. Any such matters must be brought to the attention of the Contracting Officer at or before the time quotations are due.

Please be advised that if an actual or potential personal or organizational conflict exists mailto:Kesha.Mumford@wdc.usda.gov mailto:kesha.mumford@wdc.usda.gov between your firm and RD that cannot be resolved, avoided, or mitigated to the satisfaction of RD then your firm shall not be considered eligible for an award.

All Quoters shall adhere to the following quotation instructions and submit their quotations with the completed Quotation Cover Page (Attachment 1). Quoters shall represent that their responses are valid for a period of no-less-than 60 days from the due date for submission.

The technical quotation shall not exceed the number of respective pages as identified below in the Technical Quotation Instructions, excluding resumes and past performance information.

There is no page limit for price quotations. A page is defined as one side of an 8 ½” x 11” sheet of white, un-textured paper, single-spaced, with at least one inch margins on all sides, using type not smaller than 12 characters per linear inch or be smaller than twelve (12) point, with no more than six (6) line per vertical inch.

The written Technical and Price quotes shall be provided electronically via email to Kesha Mumford at Kesha.Mumford@wdc.usda.gov by 3:00 pm EST on Friday, June 7, 2013.

SAMPLE TASKS

Included in this solicitation is (1) Sample Tasks. The Sample Task is provided to reflect a ‘snapshot” of the types of task work that will be required to be performed throughout the period of performance of this IDIQ and its resulting individual task orders. RD/Government expects to promptly begin issuing a task order(s) immediately subsequent to the awarding of the IDIQ.

STATEMENT OF OBJECTIVES

Subsequent to the awarding of the IDIQ, the RD/Government may, in lieu of SOWs/PWS, issue Statements of Objectives (SOO) whereby the awardee will be provided RD’s task objectives from which the awardee will be required to submit a quotation that includes a Performance Work Statement (PWS) and the elements of Performance Based Acquisitions (such as, Required Performance Metrics and Quality Assurance Surveillance Plan (QASP).

SUBMISSION REQUIREMENTS

Both quotations (Technical and Price) SHALL be dated and signed by those authorized to commit your firm and your quote MUST cite the appropriate Schedule Contract Number in your quote submission along with your tax identification number (TIN) and Dun & Bradstreet Number (DUNS), North American Industrial Classification System (NAICS), Standard Product Code (SPC) and other pertinent information found on the Quotation Cover Page. Please ensure that your firm is Sam (System for Award Management) Certified (http://www.sam.gov).

To receive a contract, a firm must be approved for the specific SINs in the GSA Schedule 520 that are applicable to this procurement.

http://www.sam.gov/

ASSUMPTIONS OR CONDITIONS

Quoters must acknowledge all (if any) assumptions or conditions with any of the terms and conditions of this solicitation including the SOW. If not noted in this section of your Quote, it will be assumed that the Quoter proposes no assumptions for award, and agrees to comply with all of the terms and conditions as set forth herein.

TECHNICAL & PRICE QUOTE INSTRUCTIONS

To facilitate evaluation of quotations, Quoters shall provide a technical and separate price quotation that includes name and address of company including TIN, signature of person authorized to commit company, and the following information two (2) volumes:

Volume I – Technical Quote Quoters are required to provide a written technical quotation that explains their proposed technical approach for performing the required support services described in the SOW and its plan to meet the required services within the contract period of performance. The discussion should, at a minimum, include:

A. Knowledge/Experience – RD Credit Reform Programs:

• Single Family Housing

• Multi-Family Housing

• Community Facility

• Water and Environmental

• Electric

• Telecommunications/Broadband

• Business and Industry

• Intermediary Relending

B. Knowledge/Experience – Cashflow modeling

C. Knowledge/Experience – Project Management Methodologies

• Project Management Book of Knowledge

D. Proposed Staffing of Key Personnel

Proposer should provide resumes for key personnel providing technical support. Resume(s) of key personnel shall include, but not limited to:

• Position and years in the profession;

• Experience relevant to SOW;

• Education; and,

• Professional accomplishments.

Note: The Quoter shall ensure that personnel proposed are current in the knowledge required to support the tasking. The personnel proposed must be available to be assigned to the project.

E. Corporate Experience

• Years of Experience relevant to this work

• Technical Qualification - Type of similar services provided

• Show company sales for past 3 years (2010, 2011, and 2012)

Quoters are required to describe their past performance history on contracts with similar size, scope, and complexity to the activities identified in the SOW.

Quoters shall describe past performance that is similar to the current requirement. Quoters shall identify three (3) comparable efforts performed during the last three (3) years. Present this data by client, date completed, type of work, client telephone number, client address, contract number contract type, and total contract value. Quoters shall detail how the experience relates to the current project. Quoters shall also identify any performance problems with referenced contracts and the corrective action taken to resolve the problems. Quoters shall also identify any incentives awarded in connection with referenced contracts.

J. Small Business Participation//Teaming/Consultants (subcontractors)

Describe the role the Quoters propose for each subcontractor, if any, experience, and past performance that would qualify the proposed subcontractor. Elaborate on the scope, magnitude, and complexity of prior and ongoing experience, similar to the stated requirement, over the past three years for each subcontractor proposed. Additionally, identify procedures that shall be employed to ensure subcontractor time and efforts are appropriately applied to the project's objectives.

K. Quality Assurance Surveillance Plan (QASP)

All QASPs shall be proposed by the Quoter and shall be negotiated with RD prior to the awarding of each resulting task order. The proposed QASPs shall include a Required Performance Metrics Table that at a minimum includes all the performance objectives (Required Service) and respective elements (i.e., Performance Standard, Acceptable Quality Levels, Methods of Surveillance, and Incentives) by which RD will be able to monitor and measure the performance of the resulting Performance Work Statement (PWS) tasks.

Describe the QASP that the Quoter will follow to monitor quality assurance throughout the life of the contract and to ensure that scheduled requirements are met or exceeded to support aggressive deployment schedules.

RD is interested only in quotations that demonstrate the Quoter's requisite expertise in performing engagements of this type as illustrated by the Quoter's description of how it proposes to perform the requirements set forth in the SOW. Therefore, a Quoter's technical quotation should not merely state that the "Quoter will perform in accordance with the SOW" or similar verbiage.

Volume II – Price Quote Your signed and dated Price Quote shall be a separate volume (marked “Price Proposal,” and shall include document number and date of issuance) from your Technical Quote. The Price Quote shall be submitted as an Indefinite Delivery/Indefinite Quantity (IDIQ) Proposal and shall be based on your current GSA Schedule contract's fully burdened labor rates for all applicable labor categories, utilizing any and all discounts.

The following labor categories are required to perform the services of this contract and may be subject to the Service Contract Act:

Project Manager Financial Analyst Business Analyst Senior Financial Manager Senior Financial Analyst

The skill category names described above are created by the Government for the purpose of this solicitation. Quoters can propose alternate category names on their GSA schedule as long as the minimum qualifications are met and the proposed category can perform on identified responsibilities.

(1) Identify the respective labor category(s) to be utilized for this effort; provide a description of the skills and experience for each category. Price quotations shall include fully burdened labor category rates to support the resultant FP dollar amounts proposed for the Pricing Schedule

(2) Provide FP labor categories, their respective labor rates, and the resultant FP dollar amounts for the Base Period and each Option Period. Provide a total FP for the Base Period and all Option Periods.

(3) Provide an electronic copy of the Quoter's GSA Contract (including contract clauses) in PDF format listing the applicable labor categories and fixed hourly rates. Fixed rates shall include all costs and fees, including overhead and profits, and shall identify any reduction in GSA Schedule rates quoted. Quoters are encouraged to discount their GSA Schedule labor rates.

General Instructions:

Quotations submitted in response to this Solicitation shall be furnished in the following format with the number of copies as specified below.

• RD will evaluate proposals in accordance with the evaluation criteria set forth in this solicitation.

• Quoters shall submit their quotes in accordance with the evaluation criteria set forth in this solicitation.

• One (1) email electronic copy of the technical proposal, which is limited to 25 pages (Times New Roman, 12 Font). Technical proposal page limitations do not include resumes.

• One (1) email electronic copy of the price proposal, which includes Pricing Schedules.

The price Quotation shall be submitted as a FP Quotation and shall be based on your current GSA Schedule contract’s fully burdened rates for all applicable labor categories, utilizing any and all discounts. A current electronic copy of your GSA Schedule contract shall be submitted with your electronic price quotation submission.

• The Quote must include a price quote to be considered.

Delivery of Quotations:

The RFQ due date (closing date) is 3:00 pm EST on Friday, June 7, 2013. The quotation shall be provided electronically to the email address listed below. Inquiries regarding this procurement may also be submitted electronically to the address below.

E-MAIL: Kesha.Mumford@wdc.usda.gov

Quotations submitted after the deadline will not receive consideration by RD.

Evaluation Factors:

The SOW serves as the Government’s baseline requirements. All quotations will be evaluated against these requirements. Award will be based on the trade off method resulting in the best value to the government, considering all of the stated evaluation factors. Award may or may not be made without discussions.

Non-price evaluation factors when combined are paramount (significantly more important than price). Although price is the least important evaluation factor, if two (2) or more Quoter’s quotations are determined to be relatively equal with respect to non-price evaluation factors, price may become the determining factor in the award decision. Therefore, Quoters are encouraged to submit competitive pricing. Technical submissions that do not meet the minimum technical requirement(s) as stated in the SOW will not be considered in the price evaluation. The evaluation factors and sub-factors are identified below:

EVALUATION FACTORS FOR AWARD

TECHNICAL EVALUATION FACTORS: Proposals will be evaluated on the basis of strengths, weaknesses, and risks. Rural Development will make its selection on the basis of a best value determination. The non-price evaluation factors, when combined, are considered significantly more important than price. The non-price evaluation factors are Expertise, Technical Approach, Management and Staffing, and Past Performance. The technical quote must contain, at a minimum, the following areas:

FACTOR 1 – EXPERTISE (28 points)

Experience should demonstrate substantial knowledge and understanding of cashflow modeling practices and programs designed to facilitate the deployment of RD loan programs to benefit rural communities. Substantial knowledge and understanding of credit reform cash flow modeling should also be demonstrated.

Relevant Corporate Experience

Each Quoter shall specifically address relevant experience in the following areas:

• Demonstrated experience conducting an in-depth review of each model, a calculation of a re-estimate for each model and a calculation of a subsidy estimate for each model.

• Demonstrated experience checking and verifying the accuracy of all computations;

• Demonstrated experience validating assumptions and methodologies used in the cash flows. The logic in the cash flow spreadsheets and models should be accurately tested and verified;

• Demonstrated experience testing the methodology of calculating the underlying assumptions;

• Demonstrated experience reviewing the underlying data for reasonableness;

• Demonstrated experience reviewing program sensitivity analysis and updating as necessary;

• Demonstrated experience recommending processes or data changes that improve the accuracy of re-estimates;

• Demostrated experience recommending the inclusion of additional data and analyses as necessary;

• Demonstrated experience assisting, as necessary, in the implementation of recommendations; and

• Demonstrated experience providing technical support in responding to

OIG inquiries regarding the assessment and validation of program models.

• Small Business Participation/Teaming/Consultants/Subcontractor(s) arrangements proposed to perform services under the contract shall be identified and the relevant experience for each subcontractor shall be addressed under one or more of the areas identified under Relevant Corporate Experience above. Elaborate on the scope, magnitude, and complexity of prior and ongoing experience, similar to the stated requirement, over the past three (3) years for each subcontractor proposed. Additionally, identify procedures that shall be employed to ensure subcontractor time and efforts are appropriately applied to the requirement objectives. Small business Program considerations (e.g., 8(a) competitive, 8(a) non-competitive, small business set-aside, HUBZone set-aside, Service Disabled veteran owned small business, women-owned small business) will play a big role in the awarding of individual task orders that result from this contract. As such and in accordance with RD/USDA/federal government established socio-economic goals, a subjective evaluation for small business participation is included in this evaluation. Other than small businesses who offer their total solution quoting to utilize 25% or more in small business participation [for resulting task orders] will receive up to the total value of the evaluation.

Quotations offering less than 25% or no small business consideration will subjectively receive less evaluation value. Small businesses who submit quotations will receive full evaluation consideration.

• Demonstrated experience in performing functional activities similar to those described in the SOW.

• Demonstrated experience with federal guidance and mandates that affect the functional activities described in the SOW.

• Demonstrated experience, ability, and capacity to handle challenging and heavy workload demands of a potentially high level of effort necessary for this requirement and its resultant individual task orders.

Quoters must include resumes for Key Personnel proposed for this requirement. Up to four (4) resumes may be submitted; however, this does not limit the total proposed Key Personnel assigned to the project to four (4) at award. All resumes must be signed by the individuals.

The combined experience of the Quoter’s proposed team must demonstrate a high level of expertise and a strong knowledge base in performing an Independent Validation & Verification (IV&V) for credit reform models, under the guidelines of the Federal Credit Reform Act.

For a resume to be considered, the following information must be included:

1. Name of individual

2. Signature of individual whose resume is being submitted

3. Workstream(s) individual is proposed to support

For an engagement within a resume to be considered, it must include the following information:

4. Name of entity for whom the engagement is/was provided

5. Name, phone number and e-mail address for entity point of contact who oversaw the engagement

6. Start and end dates, within the past five (5) years, covering the individual’s performance (Note: For multi-year engagements, the majority of the experience must have occurred within the past five [5] years. Specify breaks in service over one [1] month period.)

7. Individual’s role and labor category/working title

8. Description of services the individual provided which: a) relate to the requirements/information included in this solicitation; and b) demonstrate the individual was directly involved with accomplishing the services performed under the engagement

9. Statement whether the entity supported in said engagement obtained: a) an unqualified audit opinion of its financial statements; and/or b) a material weakness or significant deficiency related to the supported credit modeling effort(s). Specify whether one or all (i.e., a and/or b above) are applicable.

In addition, an engagement should address the following information:

10. Approximate number of hours per week contributed to the project, including indication of full or part-time status

11. Total dollar value of the engagement

12. Contract number

13. Statement of engagement’s complexity and time sensitivity (description of engagement including; number and types of credit reform models, lines of SAS code, pages of documentation and turnaround times for reviews conducted)

14. Any other information (e.g., education or past employment) that the Quoter determines to be relevant to demonstrating an individual has the expertise to perform the tasks related to this solicitation.

NOTE: If an engagement cited within the resume included services other than those covered in this solicitation, only include information associated with tasks performed that are relevant to the requirements in this solicitation. In addition, to demonstrate the Quoter’s proposed Key Personnel team has a combined broad range of expertise, the Quoter is encouraged to provide resumes of individuals with technical hands-on expertise and not just management or team lead expertise. An individual may be proposed that has experience in the technical or project management workstreams or an individual may be proposed that has experience in both workstreams. At a minimum, of the Key Personnel proposed, all workstreams must be covered.

Evaluation Criteria:

Rural Development will evaluate the Quoter’s expertise by assessing the demonstrated experience of the proposed Key Personnel’s ability to accomplish the requirements included in this solicitation. Rural Development will evaluate whether the Quoter included the required information from the submission instructions in its proposal.

FACTOR 2 – TECHNICAL APPROACH (30 points)

Quoter must include a narrative discussion describing its understanding of and approach to fulfilling the requirements of this solicitation.

The Quoter’s narrative discussion should demonstrate:

a. How the Quoter will accomplish the requirements for the technical workstream covered in this solicitation.

b. How the Quoter will become familiar with each of the models (described in Attachment D) it will be required to validate.

c. How the Quoter will implement and maintain methods to ensure compliance with the specific laws, regulations, etc. related to the tasks for the technical workstream covered in this solicitation.

d. What the Quoter believes to be the most relevant challenges and concerns to successfully accomplishing the requirements covered in this solicitation and how the Quoter will leverage its approach to address those challenges and concerns.

Evaluation Criteria:

FACTOR 3 – MANAGEMENT AND STAFFING (25 points)

Quoter must provide a narrative describing its approach to managing performance related to fulfilling the requirements of this solicitation. The Quoter’s narrative should address its: a) approaches to monitoring/managing project performance and resources; staffing the project; and training and orienting staff members assigned to the project; b) capability to reach back to provide additional resources; and c) plans to utilize subcontractors. The Quoter must also specify whether the employees are currently employed by the prime or subcontractor(s), or must be hired. If any employees must be hired, the contractor must state how soon after receiving an award, that the employees will be hired and can begin work on this requirement..

Evaluation Criteria:

Rural Development will evaluate the Quoter’s proposed labor mix and hours that will be performed by the prime contractor and subcontractors (teaming arrangement). Rural Development will evaluate the Quoter’s ability to accomplish the requirements of this solicitation by assessing whether the Quoter demonstrates an understanding of and presents a feasible approach to providing, managing, selecting, training, and orienting its resources.

FACTOR 4 - PAST PERFORMANCE (17 points)

Rural Development will evaluate the Quoter’s past or current performance of projects. The Government will evaluate the quality of the Quoter’s and any proposed subcontractor’s past performance using at a minimum the following criteria:

1. The Quoter's record of conforming to SOW or specifications and standards of good workmanship and adherence to schedule.

2. The ability to successfully carry out a project.

3. Administrative and subcontractor management aspects of performance.

4. The Quoter's control of costs, including costs incurred for changed work.

5. The Quoter's reputation of reasonable and cooperative practices and overall concern for the client.

6. Predecessor companies (e.g. existing company's historical past taking into account mergers, consolidations, name changes, etc.), if applicable.

7. Key Personnel

8. Subcontractors proposed.

Past Performance Summary - Quoters without a record of relevant past performance or for whom information on past performance is not available will not be evaluated favorably or unfavorably, but will instead receive an overall past performance rating of “neutral.”

Rural Development will evaluate based on the degree to which the Quoter demonstrates and understanding of the SOW.

Technical Quotes that merely parrot the requirements set forth in the SOW and state that the “Quoter will perform in accordance with the SOW” or similar verbiage, without describing how the Quoter will perform the work, shall be rated as unacceptable for this factor.

ADJECTIVAL

RATING

SYMBOL

DEFINITION

Outstanding O Quotation significantly exceeds the most important factors in a way that is beneficial to the agency. Risk is very low, and the quotation indicates a very high probability of successful performance. There are no deficiencies in major subject areas of items.

Good G Quotation meets or exceeds the most important factors in a way that is beneficial to the agency. Risk is low, and the quotation indicates a high probability of successful performance. There are no deficiencies in major subject areas of items.

Acceptable A Quotation meets all significant standards. Risk is low, and there is a good probability of success. There are no critical deficiencies; any deficiencies present can be readily corrected.

Marginal M Some important standards have not been met. Risk is evident, and there is a low probability of success. There are serious deficiencies in the proposal, but they are correctable (and must be corrected prior to award).

Unacceptable U Several important standards have not been met. Risk is high, and there is little likelihood of success. The proposal would have to be completely rewritten to make it acceptable.

Evaluation Factor 3 – PRICE

RD will evaluate price based on competitive pricing, government estimate, and/or market prices. The proposed labor categories and rates shall be verified against the Quoter’s current GSA Schedule contract(s). Price will not be scored.

In the event that the highest adjectivally rated quotation, including technical approach capability and past performance, is not also the lowest priced quotation, the CO will conduct and document a best value trade off analysis process. This trade-off analysis process will permit the Government to accept other than the lowest priced quotation. The perceived benefits of the higher priced quotation shall merit the additional price. Award will be made to the schedule Contractor that represents the best value.

Efficient Competition

Prior to the price evaluation, the Contracting Officer may limit the number of quotations under technical consideration to the greatest number of quotations that will permit an efficient competition to be conducted among the highly rated quotations.

Evaluation of Options:

Except when it is determined in accordance with FAR 17.206(b) not to be in the Government's best interests, the Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. Evaluation of options will not obligate the Government to exercise the option(s).

Please note that this request does not commit the Government to pay any costs incurred in the submission of your quote, nor to contract for said services. Note also, that full, accurate, and complete information is required by this request in accordance with 18 U.S.C. § 1001 which also prescribes the penalties for making false statements.

SECTION C – STATEMENT OF WORK

FINANCIAL ADVISORY SERVICES FOR THE USDA RURAL

DEVELOPMENT

Section 1. INTRODUCTION

The Rural Development Budget Division provides and supports three distinct programs to improve the economy and quality of life in rural communities. The Housing and Community Facilities Programs provides loans and grants to rural communities and individuals for housing and community facilities. The Business and Cooperative Programs improves the rural business environment, providing financial assistance and business planning, as well as supporting the development of business cooperatives. The Utilities Programs supports electric and water utilities, watershed and environmental programs, telecommunications, distance learning and telemedicine.

The Budget Division develops and estimates budgetary requirements for loan and grant programs and administrative expenses; prepares apportionment and allotments to make funds available for loans, grants, and administrative expense obligations; establishes and maintains budget execution controls over Rural Development funds; calculates subsidy estimates and re-estimates based on supportable documentation and performs other requirements of the Credit Reform Act; assists and trains end-users of the Foundation Financial Information Systems (FFIS) on funds and control and year-end close; prepares briefing books for House and Senate Appropriation Hearings; processes inter-agency agreements (IBIL) funds received from others and assists in writing inter-departmental agreements; works directly with the Office of Management and Budget (OMB) during the entire budget cycle, inputting budgetary data in OMB database “MAX,” in compliance with OMB Circulars and Bulletins; prepares the President’s Budget; tracks budget requests and legislation; works with the Office of Inspector General (OIG), General Accountability Office (GAO), OMB and other Federal agencies on Credit Reform issues; and works with OIG in their auditing of Rural Development financial statements

The Office of the Deputy Chief Financial Officer (DCFO) provides data from Rural Development’s official General Ledger for Formulation, re-estimate, and federal credit supplement processes. Additionally, the DCFO performs the final accounting and reconciliation of all program and administrative accounts for Rural Development.

Section 1.1 PURPOSE

The purpose of this Statement of Work (SOW) is to obtain contractual support services to assist RD in reviewing changes and updates to current credit models and supporting assumption data and to provide related audit support. Changes are frequently made to models in order to support new or revised data inputs and program changes. External reviews of the model changes ensures that thorough reviews are conducted to determine whether the financial statement’s presentation of the various accounts are free of material misstatements. Specifically, this SOW seeks assistance to:

1. Provide an Independent Verification and Validation (IV&V) of RD’s new credit program budget/re-estimate subsidy models.

2. Analyze the accuracy and reasonableness of model assumptions, underlying data, and processes to generate those assumptions.

3. Provide a testing plan for new models.

4. Assist with automation of data collection and subsidy estimate/re-estimate analyses, including, but not limited to analysis of potential automation of those functions and development of automated tools to perform analyses of credit estimates and re-estimates.

5. Provide technical assistance and audit support in responding to OIG questions regarding the accuracy of new models and underlying assumptions.

6. Provide technical support, including automation tools, regarding the capture, storage and retrieval of Credit Reform cash flow data.

The Statement of Work (SOW) provides the Contractor with instructions and a clear understanding of the Agency’s expectations of the tasks required and the standards of performance for this contract.

Section 1.2 SCOPE OF WORK

As stated above in Section 1.1, “Purpose”, the scope of this contract is to procure contractual support services to assist RD in reviewing new credit models and supporting assumption data and to provide related audit support. The individual requirements for those services will be outlined specifically in Task Orders issued from this SOW.

The Agency has established tentative deadlines for meeting the individual task objectives described below to ensure that RD is able to meet its overall deadlines for responding to the FY2013 audit cycle issues and the FY 2014 financial statement production process. All analyses and recommendations must be developed so that they are feasible for RD implementation within the framework of laws, regulations, and policies that define the mission area’s operations.

Under the contract, the contractor will be required to perform extensive in depth reviews of RD’s updated models for all programs. Reviewers are required to have a specialized level of experience in and expert knowledge of Excel, Federal Credit Reform requirements, discount rate valuation techniques, and financial and econometric modeling. Reviewer is required to provide “verification and validation” in the IV&V report that no errors exist within the models. The IV&V report will be provided to the auditors after review by CRS.

The review process requires an in-depth knowledge of and experience in preferred and common equity, mortgage backed and asset backed securities and other investment type programs being modeled and adjusted discounting methods. The modeling process is complicated by requirements of the Office of the Chief Financial Officer, Office of Management and Budget, and be accounted, therefore modeled under the requirements of the Federal Credit Reform Act.

The following information will be provided to the awarded contractor at the kick-off meeting or as available:

a. Office of the Inspector General (OIG) Qualified FY 2012

Opinion.

b. Timeline provided by the RD Budget Division to the OIG for remediation pursuant to the FY 2013 Qualified Opinion.

c. SFFAS No. 2 - Accounting for Direct Loans and Loan

Guarantees

d. Federal Financial Accounting and Auditing Technical Release

6 Issued January 2004

e. Credit Reform Cash Flow Model A and its related documentation.

f. Credit Reform Cash Flow Model B and its related documentation.

g. Credit Reform Cash Flow Model C and its related documentation.

h. Credit Reform Cash Flow Model D and its related documentation.

i. Credit Reform Cash Flow Model E and its related documentation.

j. Credit Reform Cash Flow Model F and its related documentation.

k. Credit Reform Cash Flow Model G and its related documentation.

l. Credit Reform Cash Flow Model I and its related documentation.

1.3 REQUIREMENTS

The following tasks describe the scope of services that the Contractor shall provide for the Financial Process Support Services for the USDA, Rural Development. It should be noted that these tasks, during the same time each

Fiscal Year, at the Government’s discretion, may become repeated by the contractor under the terms of this IDIQ. This task may be issued for any and all model combinations listed in Section 3, “Scope of Work”.

1.3.1 Project Planning

The Contractor shall develop and maintain a Project Management Plan for each of the tasks awarded under this IDIQ. The Project Management Plan includes, but not limited to the following: specific milestones, costs related to each of the Major Milestones/Billable Deliverable, critical path flow chart that clearly shows the start and end date of all activities, a narrative description of major tasks required by the SOW, the responsible parties, and the individual steps required for compliance. The Contractor shall submit the Project Management Plan to the Contracting Officers’ Technical Representative (COTR) and the RD Budget Division Director for review and approval.

The draft version of the Project Management Plan is due five (5) calendar days after date of award and the final version is due ten (10) calendar days after date of award.

1.3.2 Management Support

The Project Manager shall provide technical support for the Financial Advisory Services project by attending weekly project status meetings, preparing agendas and minutes and reports. The minutes and reports will summarize the meeting discussion; describe decisions made and action items assigned. The weekly status meeting reports will be provided to the COTR and the Budget Division Director for review and comment.

The draft version of the Meeting Agenda is due two (2) calendar days before each meeting and the final version is due one (1) calendar day before each meeting.

The draft version of the Meeting Minutes is due one (1) calendar day after each meeting and the final version is due three (3) calendar days after each meeting.

The draft version of the Weekly Status Report is due one (1) calendar day after the end of the reporting period and the final version is due two (2) calendar days after the end of the reporting period.

1.3.3 Independent Validation and Verification (IV&V) Review

The IV&V review should cover four areas of review:

1.3.3a Model Methodology

USDA’s credit subsidy models forecast the cash flows associated with USDA's direct loan and loan guarantee programs. Forecasts of loan repayments, prepayments, defaults, fees, recoveries, expenses, and related cash flows are developed based on actual historical loan performance data. Model methodology may include historical averages approach as well as econometric estimation.

The purpose of this review is to ensure that the model is consistent with industry standards, federal credit reform guidance, and the most appropriate approach in terms of efficiency and model fit.

1.3.3b Model Input / Output The purpose of this review is to assess the data quality of model inputs and outputs.

Input Data. The purpose of this review is to confirm that the appropriate inputs exist in the model input files and that they are correctly accepted by the model.

The data should be assessed for completeness, the appropriate timeframe, and any outliers.

Output Data. The purpose of this review is to confirm that the model produces the output data fields and datasets that are intended based on model documentation. The model should be independently executed and the output data should be verified to match the results produced by the original version provided to the reviewer.

1.3.3c Model Operations Models may be based in a number of software platforms including SAS, Excel (with VBA), and STATA. The purpose of this review is to ensure that the model performs as intended based on operational design. This includes the following:

Operational. The model should run without error, all model components should be functional, and the model should produce all intended results. The following validation should also be performed:

thorough review and validation of all Excel tools and interfaces with the Credit Subsidy Calculator (CSC2). The review and findings must be included in the final report for each model/program.

Part of the IV&V review must be a validation that the correct loan level cash flows are linked or are being properly fed to the cash flows read by the CSC2.

Technical. This review should confirm that the model is free of syntax, coding, and formulaic errors.

Design. This review ensures that the model is consistent with the technical specifications, which should be consistent with the model methodology.

1.3.3d Model Documentation Model documentation includes program descriptions, model technical documentation, model user guides, and memos related to each phase of model development and execution. Memos include descriptions of model enhancements and updates, analysis of change, and sensitivity analysis. These documents should be reviewed for completeness and accuracy in description of model functionality, methodology, and assumptions. Documentation should also be confirmed for consistency with federal credit reform and audit guidelines.

Section 1.4 Subsidy Calculation during the Fiscal Year Cycle

Each fiscal year, USDA executes each model for various programs a minimum of time at various phases of the budget process. This includes executing for model enhancements, re-estimates, and budget formulation. IV&V review should be performed annually for all models and is required when there are model enhancements or changes.

A review is required to test that any model enhancements were appropriate and implemented correctly. Model enhancements may include changes due to new program structure, new estimation methodology, previous errors, or operational streamlining.

A review is required to validate any corrections made in response to audit findings, validate the absence of any other unintended changes and to re-run the model in order to validate the cash flows and subsidy rates that result from updating actual performance data through June 30.

A review of the methodology, operation, and results of the President’s Budget formulation and reestimate models for the most recent fiscal year.

1.4.1 Review of Models

1. 4.2a Conduct an in-depth review each model, a calculation of a re-estimate for each model and a calculation of a subsidy estimate for each model.

1.4.2b Check and verify the accuracy of all computations;

1.4.2c Validate assumptions and methodologies used in the cash flows. The logic in the cash flow spreadsheets and models should be accurately tested and verified;

1.4.2d Test the methodology of calculation of underlying assumptions;

1.4.2e Review the underlying data for reasonableness;

1.4.2f Review program sensitivity analysis and update as necessary;

1.4.2g Recommend process or data changes that improve the accuracy of re-estimates;

1.4.2h Recommend the inclusion of additional data and analyses as necessary;

1.4.2j Assist, as necessary, in the implementation of recommendations; and, 1.4.2k Provide technical support in responding to OIG inquiries regarding the assessment and validation of this program model.

1.4.2l Written Summary of Findings and Recommendations - The contractor will provide, in letter format, results of the independent review by the agreed upon date or within 30 days of the assigned task. RD will respond to that report within twenty-one (21) calendar days of its receipt. Findings should include, but are not limited to, findings and methodology for the 10 items listed above****.

Section 1.5 Testing Plan for New Models

The contractor shall develop a testing plan for new models by the agreed upon date or within 21 days of delivery of the new model. The contractor shall assess model development and provide recommendation for in-house testing.

1.5.1a Conduct an in-depth review of the model development process;

1.5.1b Validate development processes;

1.5.1c Recommend process or data changes that improve model development;

1.5.1d Provide information on compliance with laws, regulations, guidance, and best practices regarding model development; and, 1.5.1e Provide recommendations of tools that facility analysis of change reviews;

1.5.1f Provide guidance on best practices in performing trend analysis and back-casting.

1.5.1g Written Summary of Findings and Recommendations - The contractor will provide, in letter format, results of the assessment of model development processes and propose a model testing plan. The contractor will submit a draft report of its review, findings and recommendations on model development and testing. RD will respond to that report within twenty-one (21) calendar days of its receipt. Findings should include, but are not limited to, findings and methodology for the 6 items listed above.

Section 1.6 Communications and Technical Writing Support

The Contractor shall prepare documentation as assigned by the RD Budget Division Director to accomplish this project.

Section 1.7 Contract Level Program Management

At the Contract level, provide the technical and functional activities needed for the Program Management of this SOW. Provide the centralized administrative, clerical, documentation and related functions. Provide a monthly status report monitoring the task performance (as appropriate to the specific nature of the SOW). Prepare agenda and meeting minutes for the weekly status meetings with the COTR, the Budget Division Director, and the Budget Division POC.

The draft version of the Monthly Status Report is due two (2) calendar days after last day of the month and final version is due three (3) calendar days after last day of the month.

The draft version of the Weekly Status Agenda is due two (2) calendar days before each meeting and final version is due one (1) calendar day before each meeting.

The draft version of the Weekly Status Minutes is due one (1) calendar day after each meeting and final version is due three (3) calendar days after each meeting.

Section 1.8 Reporting Requirements

The Project Manager shall record and report changes in Project Management Plan status at weekly meetings convened by the COTR or designate. The Project Manager shall provide minutes from previous meetings within three (3) calendar days after such meetings. The Project Manager shall coordinate with the Government on development of Agenda Items for the meetings.

The Project Manager shall be available to participate on conference calls and/or meetings as directed by the Government.

The Project Manager shall prepare and deliver all documentation in the comparable versions of Microsoft Office 2003, Microsoft Word, Microsoft Excel, Microsoft PowerPoint, and Microsoft Project to the COTR, the Budget Division Director, and the Budget Division POC. Except as otherwise defined within this Statement of Work, due days are in Calendar Days (CD).

Section 2.0 MEETINGS

2.1 POST AWARD CONFERENCE

Within five (5) calendar days after notification of award, the Project Manager shall meet with the COTR and other Agency personnel. The purpose of this meeting shall be to identify participating individuals and review contract objectives, milestones and deliverables. Meeting shall be held in Washington, DC and last approximately four (4) hours.

2.2 MEETINGS

After the COTR’s acceptance of the Project Management Plan, the Project Manager shall meet (in person) with the COTR, the RD Budget Division Director, and other designated parties monthly. Exact date and times to be set by the COTR during post award conference. These monthly meetings shall cover status reports, accomplishments and unresolved problems. During the course of the Contract, problems or issues occur, which could impede successful progress, the Project Manager must immediately notify the COTR. The COTR shall instruct Project Manager as to appropriate action.

The Project Manager shall immediately notify the COTR and the Budget Division POC when an issue is encountered which will or might impede progress.

Section 3.0 GOVERNMENT FURNISHED DATA/ASSISTANCE

The COTR and or the Budget Division POC shall make available to the Contractor all Agency specific data, and assistance as maybe necessary to accomplish the tasks identified in this SOW. The Agency shall make information available to the Contractor within two (2) calendar days upon written request from the Contractor.

Section 4.0 ORDERING

All services to be furnished under the contract shall be ordered by issuance of Task Orders by the Contracting Officer (CO). Task Orders may be issued by mail, facsimile, or by electronic commerce methods. The hourly rates proposed for each job category will be used to issue fixed price task orders by the CO.

Funds will be obligated when Task Orders are issued.

Section 5.0 FP Labor Hour and FFP Services

All services are funded annually and may be pursuant to the availability of funds. The Contractor shall provide the necessary labor, skill mix, and project management to address requirements as they relate to any individual Task Order.

Section 6.0 Task Orders

The Government may use work elements identified below in this task order section to require the Contractor to perform the tasks through individually funded Task Orders. All tasks shall be within the scope of the contract. The Contractor shall provide the necessary labor and skill mix and project management to satisfy all Task Order requirements.

Section 7.0 Work Elements

The tasks orders may include but are not limited to one or more of the following work elements:

Section 8.0 Deliverables

A deliverable schedule shall be identified for each individual Task Order. Examples of possible deliverables include the following:

The Project Manager shall review, approve, and sign all draft and final documents before delivering to the COTR, the Budget Division Director, and the Budget Division POC.

Originals of all correspondence, including Project Management Plan, Written Summaries of Findings Reports, Weekly Status Reports, Monthly Status Reports, Travel Authorizations, copies of invoices, etc. shall be delivered to the COTR, the Budget Division POC and to the RD Budget Division Director at the following address:

USDA, Rural Development, Budget Division, Credit Reform Staff, 300 7th Street, SW, Suite 700, Washington, DC 20024-2511.

Printed materials and correspondence (written, printed and electronic) shall be in the English language. It shall be typed-written, double-spaced, Times New Roman Type, 12-pitch, compatible with Microsoft Office 2003 (Microsoft Word, Microsoft Excel, Microsoft PowerPoint, or Microsoft Project).

The Contractor shall provide delivery of electronic copies of each deliverable to the COTR, the Budget Division Director, and the Budget Division POC.

Electronic copies shall be delivered via email…