AMC Audit PWS - DRAFT.pdf

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ATTENTION

This document contains Controlled Unclassified Information for Procurement and Acquisition

Performance Work Statement (PWS) For

AMC Audit Support and Financial Management Transformation

FY2023-FY2027

Controlled by: ACC‐APG

Controlled by: HQDA AMC G‐8

CUI Category: Procurement

POC: Kathryn R. Vanscoy, Kathryn.r.vanscoy.civ@army.mil

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Part 1.0 General Information

GENERAL This is a non-personal services contract to provide cradle to grave financial compliance audit support to the Army Materiel Command (AMC) to include all major subordinate commands (MSCs) to include develop and implement solutions to ensure end to end business processes contain required internal controls that ensure accurate financial statement reporting, develop, monitor and validate corrective action plans to remediate deficiencies identified by the external auditor, remediate material weaknesses that are linked to AMC business processes, and provide education and training to the Army Materiel Command workforce to ensure sustainability of achieving an audit opinion. The Government shall not exercise any supervision or control over the contract service providers performing the services herein. Such contract service providers shall be accountable solely to the Contractor who, in turn is responsible to the Government.

1.1 Description of Services/Introduction: The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to provide an audit infrastructure to interact with external financial statement auditors, improve AMC business processes, improve financial reporting controls, validate corrective actions, and communicate and coordinate change management with AMC. Contractor shall also prepare and present executive level briefings for AMC personnel, Headquarters Department of the Army (HQDA) and Department of Defense personnel concerning work performed. Contractor shall maintain all data in an electronic format available for analysis and reporting. Data remains the property of the Government.

The contractor shall perform to the standards in this contract.

1.2 Background: The US Army is engaged in one of the most complex and challenging business transformations ever attempted in the Army to revolutionize its financial management processes, business rules, and systems across the Army in order to provide more accurate, timely and useful financial information to decision makers. The Chief Financial Officers (CFO) Act of 1990 and the Government Management Reform Act (GMRA) of 1994 require, among other things, the annual preparation and audit of Federal agency financial statements in accordance with generally accepted accounting principles (GAAP) and generally accepted government auditing standards (GAGAS). To that end, the Army has conducted successive audits in FY18, FY19, and FY20 with each growing in scope and complexity. Challenges that must be addressed include: inefficient information technology system controls, business process transformation, synchronization with service providers, and sustainment of implemented changes.

1.3 Objectives: Build a supporting contract staff to accomplish two major focus areas; Audit Infrastructure & Liaison and remediation efforts that lead to an:

Independent Public Accountant (IPA) opinion on the Army’s AWCF Financial statements in 2024, and AMC’s portion of the munitions Service Organizational Control 1 (SOC 1) in 2024, AMC’s portion of the General Fund (GF) audit by 2027 and, Full execution of AMC’s risk management and internal controls program and compilation of the annual Statement of Assurance.

These tasks will require providing strategy and plans to overcome material weaknesses identified in internal and external audits, recommending new or changes to business processes or controls needed to achieve financial statement assertions, monitoring financial reporting

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controls and validating the corrective actions of the organization, and communicating and coordinating change management with AMC Senior Leadership. In instances where AWCF activity supports or affects a financial reporting or control environment of a general fund reporting entity, the contractor in conjunction with AMC will provide requisite audit readiness support to the general fund enabling it to meet its applicable audit readiness deadlines.

1.4 Scope: AMC requires support from a firm’s expertise to provide an audit infrastructure to interact with external financial statement auditors, improve AMC business processes, monitor financial reporting controls, remediate and validate corrective actions, and communicate and coordinate change management with AMC Senior Leadership. AMC requires that Senior Contractor Leadership be responsive to emergent work requests and meetings that require on site presence at AMC facilities. As a result, the contractor’s facility shall be within the local commuting area of Redstone Arsenal, AL 35898. The work can be performed at AMC locations, ASAFM&C or remotely dependent on the task and skill set required.

The contractor shall have experience with both a logistics environment and a financial statement audit background, which include:

Comprehensive understanding of AMC’s business processes Thorough understanding of LMP and GFEBS ERP systems and the associated feeder systems in use Performing risk assessments in accordance with OMB Circular A-123 and the FIAR

Guidance;

Identifying the conditions and issues preventing the Army from generating financial statements in accordance with GAAP;

Performing studies to determine a comprehensive and technical status of current financial improvement and audit readiness capabilities;

Assessing and proposing new or revised accounting policies and procedures as well as implementation strategies to address audit findings;

Designing corrective action plans to address the root causes of audit findings and remediate the identified deficiencies;

Developing and assisting in the implementation of a strategy to overcome AMC’s material weaknesses;

Recommending new business processes or controls needed to achieve financial statement assertions;

Monitoring financial reporting controls and validating the corrective actions of the organization;

Communicating and coordinating change management with AMC’s Senior Leadership Providing program management support to manage the efforts under this contract; and Providing professional development support to AMC and their subordinate commands.

1.5 General Information

1.5.1 Quality Control (A001): The contractor shall develop and maintain an effective Quality Control (QC) program to ensure services are performed in accordance with this PWS. The contractor shall develop and implement procedures to identify, prevent, and ensure non-recurrence of defective services. The contractor’s quality control program is the means by which the contractor assures that its work complies with the requirement of the contract. The Quality Control Plan (QCP) shall be delivered to the Contracting Officer (KO) and to the Contracting Officer’s Representative (COR) within 30 calendar days after contract award. The quality control plan will not be considered accepted until the contractor receives the contracting officer’s

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approval in writing. Copies of changes made to the QCP shall be forwarded to the KO and COR within 5 working days of when the changes are made. After acceptance of the quality control plan, the contractor shall receive the contracting officer’s acceptance in writing of any proposed changes.

1.5.2 Quality Assurance: The government shall evaluate the contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable defect rate(s). The Government has the right to perform inspections and performance evaluation at any time. If any aspect of the performance is not in conformance with the requirements of the contract, the Government will have 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 COR within five working days after receipt of the CDR.

1.5.3 Recognized Holidays: The contractor is not required to perform services on Federal Holidays. The dates for Federal holidays may be obtained from the Office of Personnel Management website www.opm.gov.

1.5.4 Hours of Operation: The contractor is responsible for conducting business, between the hours of 8:00 AM and 5:00 PM Monday thru Friday except Government holidays or when the Government facility is closed due to local or national emergencies, administrative closings, or similar Government directed facility closings. The Contractor must at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within this PWS when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce are essential.

1.5.5 Place of Performance: The Government will provide space to accommodate 35 to 40 contractor personnel at the locations where AMC MSCs are located in addition to HQ AMC and potentially ASA (FM&C). The contractor will provide accommodations for any additional personnel used to support this requirement through other means. To ensure continuity of operations, telework/remote work may be authorized. Due to changing environment in current pandemic, contractors will follow guidance provided by the requiring activity as it relates to telework/remote work. In addition, contractor personnel will be required to be on site when government employees are on site to monitor performance.

1.5.6 Security Requirements: The contractor is responsible for obtaining required identification cards, tags, and badges in accordance with AR 600-8-14. The contractor and subcontractor(s), if any, shall complete a background security check of all personnel (SF-85P) before new employees report for duty. Execution of SF-85P is a requirement for contractor personnel to receive a Common Access Card (CAC). Contractor personnel shall possess a minimum of a SECRET security clearance and must be a United States citizen. The contractor shall forward security clearances and Visitor Access Requests (VAR) to a person designated by the COR for all personnel assigned to perform requirements of this PWS. All personnel who support this contract shall also be required to sign an Army Non-Disclosure Statement prior to obtaining access to the Army Local Area Network (LAN). The Contractor must submit a Secret Facility Clearance with their proposal.

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For planning purposes only, a DD 254 has been attached.

The contractor shall not use, disclose, or reproduce any proprietary data, other than as required in the performance of this PWS. The contractor shall not divulge or release data or information developed or obtained in the performance of this contract except upon written approval from the Government Representative and the Contracting Officer’s Representative (COR).

Contractor personnel are subject to all local installation rules and procedures. Site-specific approval regarding access, issue of security badges, etc., will be coordinated as required.

Contractor personnel should be aware at all times of any unusual persons or packages in their work area and immediately report those to the building security staff. If contractor personnel become aware of any person seeking unauthorized access to classified materials, they should immediately report this to the COR.

All work under this effort is proprietary to the Army and DOD; the contractor shall not release any information regarding the work to anyone without written permission by the Government.

1.5.6.1 Antiterrorism/Operations Security

1. AT Level I training. This standard language is for contractor employees with an area of performance within an Army controlled installation, facility or area. All contractor employees, to include subcontractor employees, requiring access to Army installations, facilities and controlled access areas shall complete AT Level I awareness training within 10 calendar days after contract start date or effective date of incorporation of this requirement into the contract, whichever is applicable. The contractor shall submit certificates of completion for each affected contractor employee and subcontractor employee to the COR or to the contracting officer, if a COR is not assigned, within 15 calendar days after completion of training by all employees and subcontractor personnel. AT level I awareness training is available at the following website:

http://jko.jten.mil.

2. Access and General Protection/Security Policy and Procedures. Contractor and all associated subcontractors employees shall comply with applicable installation, facility and area commander installation/facility access and local security policies and procedures (provided by government representative). The contractor shall also provide all information required for background checks to meet installation access requirements to be accomplished by installation Provost Marshal Office, Director of Emergency Services or Security Office. Contractor workforce must comply with all personal identity verification requirements as directed by DOD, HQDA and/or local policy. In addition to the changes otherwise authorized by the changes clause of this contract, should the Force Protection Condition (FPCON) at any individual facility or installation change, the Government may require changes in contractor security matters or processes.

2a. Contractors require a Common Access Card (CAC). Before CAC issuance, the contractor requires, at a minimum, a favorably adjudicated National Agency Check with Inquiries (NACI) or an equivalent or higher investigation in accordance with Army Directive 2014-05. The contractor employee will be issued a CAC only if duties involve one of the following: (1) Both physical access to a DoD facility and access, via logon, to DoD networks on-site or remotely; (2) Remote access, via logon, to a DoD network using DoD-approved remote access procedures;

or (3) Physical access to multiple DoD facilities or multiple non-DoD federally controlled facilities on behalf of the DoD on a recurring basis for a period of 6 months or more. At the discretion of the sponsoring activity, an initial CAC may be issued based on a favorable review of the FBI fingerprint check and a successfully scheduled NACI at the Office of Personnel Management.

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3. AT Awareness Training for Contractor Personnel Traveling Overseas. US based contractor employees and associated sub-contractor employees are to receive government provided area of responsibility (AOR) specific AT awareness training as directed by AR 525-13. Specific AOR training content is directed by the combatant commander with the unit ATO being the local point of contact.

4iWATCH Training. This standard language is for contractor employees with an area of performance within an Army controlled installation, facility or area. The contractor and all associated subcontractors shall brief all employees on the local iWATCH program (training standards provided by the requiring activity ATO). This local developed training will be used to inform employees of the types of behavior to watch for and instruct employees to report suspicious activity to the CO. This training shall be completed within 10 calendar days of contract award and within 15 calendar days of new employees commencing performance with the results reported to the COR NLT 20 calendar days after contract

5. Army Training Certification Tracking System (ATCTS) registration for contractor employees who require access to government information systems. All contractor employees with access to a government info system must be registered in the ATCTS (Army Training Certification Tracking System) at commencement of services, and must successfully complete the DOD Information Assurance Awareness training prior to access to the IS and then annually thereafter.

6. For contracts that require OPSEC training. Per AR 530-1, the contractor employees must complete Level I OPSEC Awareness training. New employees must be trained with 30 calendar days of their reporting for duty and annually thereafter.

7. For Information assurance (IA)/information technology (IT) certification. Per DoD 8570.01-M, DFARS 252.239.7001 and AR 25-2, all contractor employees and associated sub-contractor employees supporting IA/IT functions shall be appropriately certified upon contract award. The baseline certification as stipulated in DoD 8570.01-M must be completed upon contract award, before issuance of network access and annually thereafter.

8. For contracts that require handling or access to classified information. Contractor shall comply with FAR 52.204-2, Security Requirements. This clause involves access to information classified “Confidential,” “Secret,” or “Top Secret” and requires contractors to comply with— (1) The Security Agreement (DD Form 441), including the National Industrial Security Program Operating Manual (DoD 5220.22-M); (2) Any revisions to DOD 5220.22-M, notice of which has been furnished to the contractor.

9. Threat Awareness Reporting Program. For all contractors with security clearances. Per AR 381-12 Threat Awareness and Reporting Program (TARP), contractor employees must receive annual TARP training by a CI agent or other trainer as specified in 2-4b.

10. Access and general protection/security policy and procedures. This standard language is for contractor employees with an area of performance within an Army controlled installation, facility, or area. Contractor and all associated subcontractors employees shall provide all information required for background checks to meet installation access requirements to be accomplished by installation Provost Marshal Office, Director of Emergency Services or Security Office.

Contractor workforce must comply with all personal identity verification requirements (FAR clause 52.204-9, Personal Identity Verification of Contractor Personnel) as directed by DoD, CUI 7

HQDA and/or local policy. In addition to the changes otherwise authorized by the changes clause of this contract, should the Force Protection Condition (FPCON) at any individual facility or installation change, the Government may require changes in contractor security matters or processes.

11. For contractors that do not require a CAC, but require access to a DoD facility or installation.

Contractor and all associated subcontractor employees shall comply with adjudication standards and processes using the National Crime Information Center Interstate Identification Index (NCICIII) and Terrorist Screening Database (TSDB) (Army Directive 2014-05/AR 190-13), applicable installation, facility and area commander installation/facility access and local security policies and procedures (provided by government representative), or, at OCONUS locations, in accordance with status of forces agreements and other theater regulations.

1.5.7 Physical Security: The contractor shall be responsible for safeguarding all government equipment, information and property provided for contractor use. At the close of each work period, government facilities, equipment, and materials shall be secured. See Part 3 Government Furnished Property/Items for contractor accountability with respect to property furnished by the government to the contractor that is removed from a government installation.

(CDRL A018).

1.5.7.1 Property Management Plan (A002): The contractor shall develop a Property Control Plan IAW FAR Part 45 and FAR 52.245. The Contractor Access/Property Control Plan shall be submitted sixty (60) days after contract award. The process shall include a process for the accountability and management of all Government Furnished Property (GFP). The contractor shall establish and maintain an acceptable property management system. Failure to maintain an acceptable property management system, as defined in DFARS 252.245-7003, may result in disapproval of the system by the Contracting Officer and/or withholding payments. The Property Inventory Report shall be submitted 60 work days after contract award and quarterly thereafter and shall provide current information on all GFP accounted for by the contractor. The reports shall contain the following: Item Number, Item Description, Model Number, Serial Number Company Name, POC, Phone#, Location, Issue Date, and Contract Number. Any loss or damage to GFP or Contractor Acquired Property shall be reported to the PCO and COR within three (3) days of discovery. A statement explaining the circumstances of the loss/damage shall be submitted on a DA Form 4697, Report of Survey. Inspection Reports shall obtain the following: Inspection Results; Maintenance Actions; Losses and Damage to the Government.

As soon as the GFP is no longer required, it shall be promptly turned in IAW the approved Property Control Plan.

1.5.7.2 Key Control: The Contractor shall establish and implement methods of making sure all keys/key cards issued to the Contractor by the Government are not lost or misplaced and are not used by unauthorized persons. NOTE: All references to keys include key cards. No keys issued to the Contractor by the Government shall be duplicated. The Contractor shall develop procedures covering key control that shall be included in the Quality Control Plan. Such procedures shall include turn-in of any issued keys by personnel who no longer require access to locked areas. The Contractor shall immediately report any occurrences of lost or duplicate keys/key cards to the Contracting Officer.

1.5.7.3. Keys. In the event keys, other than master keys, are lost or duplicated, the Contractor shall, upon direction of the Contracting Officer, re-key or replace the affected lock or locks;

however, the Government, at its option, may replace the affected lock or locks or perform re-keying. When the replacement of locks or re-keying is performed by the Government, the total

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cost of re-keying or the replacement of the lock or locks and all GFP lost or stolen because of keys being duplicated, misplaced, or lost by the contractor, shall be deducted from the monthly payment due the Contractor. In the event a master key is lost or duplicated, all locks and keys for that system shall be replaced by the Government and the total cost deducted from the monthly payment due the Contractor.

1.5.7.4 The Contractor shall prohibit the use of Government issued keys/key cards by any persons other than the Contractor’s employees. The Contractor shall prohibit the opening of locked areas by Contractor employees to permit entrance of persons other than Contractor employees engaged in the performance of assigned work in those areas, or personnel authorized entrance by the Contracting Officer.

1.5.7.5 Lock Combinations The Contractor shall establish and implement methods of ensuring that no lock combinations are revealed to unauthorized persons. The Contractor shall ensure that lock combinations are changed when personnel having access to the combinations no longer have a need to know such combinations. These procedures shall be included in the Contractor’s Quality Control Plan.

1.5.7.6 Special Qualifications: All personnel proposed for this contract shall be able to demonstrate competence in understanding, reading, speaking, and writing the English language.

To ensure effective management of the project, the contractor shall have the following:

1.5.8.1 Experience in delivering innovative accounting and auditing solutions to the Department of Defense.

1.5.8.2 An understanding of the Army's business transformation and Enterprise Resource Planning (ERP) solutions, especially the Logistics Modernization Program and the Global Combat Support System – Army/

1.5.8.3 Experience and expertise in providing assessments and improvements of financial statement auditability plans.

1.5.8.4 Experience in providing audit infrastructure support for a large-scale audit, (size and scope of the Army), to interact with the external financial statement auditors and provide audit liaison support to Army organizations, Commands, Service Providers, and other external stakeholders.

1.5.8.5 Application of best practices, as well as known and widely used production quality commercial off the shelf (COTS) tools, techniques and templates to complete audit readiness assessments and implement recommendations.

1.5.8.6 The ability to draw upon additional resources and maintain a “reach-back” knowledge base capability that can be drawn upon during workload peaks.

1.5.8.7 Compliance with Organizational Conflicts of Interest requirements; i.e., providing specific and clear advice when personnel submitted for staffing for this project may cause a possible conflict of interest situation so that the Government may determination acceptability in a timely manner.

1.5.8 Non-disclosure Statement. The Army has a Nondisclosure Agreement (NDA) requirement for each person supporting Army. Contractor personnel shall complete and sign a

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Nondisclosure Agreement prior to the commencement of the contract award. This requirement extends to all subcontractors and teaming arrangements. The non-disclosure statement shall be provided to the COR. The contractor is responsible to obtain all necessary approvals prior to obtaining access to proprietary information, in accordance with FAR 9.505-4(b). ). In accomplishing their duties, the contractor may require access to proprietary information of other contractors. Therefore, pursuant to FAR 9.505-4, firms must execute an agreement with other contractors that states that they will (1) protect the contractor’s information from unauthorized use or disclosure for as long as it remains proprietary and (2) refrain from using the information for any purpose other than that for which it was furnished. This requirement shall flow down to all Subcontractors.

1.5.8.1 Disclosure Information. Reference DFAR 252.204-7000 Disclosure of Information (Oct 2016). The contractor shall not use or disclose information developed or delivered under this contract for any purpose other than as required for performance of the contractor’s contractual obligations without the specific authorization of the Contracting Officer.

1.5.8.2 Inspector General Inquiries. The contractor shall provide inspection, audits, surveys and requests for information, as necessary. The contractor shall provide access to the Government for the purposes of reviewing, inspecting and evaluating the Contractor’s property management plan(s), systems, procedures, records, and supporting documentation that pertains to GFP. This access includes all site locations and, with the Contractor’s consent, all subcontractor premises. The contractor shall provide, without prior notice, supporting documentation as needed for Army Audit Readiness and other audits, in accordance with FAR 52.245-1(g).

1.5.9 Post Award Conference/Periodic Progress Meetings: The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with Federal Acquisition Regulation Subpart 42.5 Post Award Orientation. The contracting officer, Contracting Officer’s Representative (COR), and other Government personnel, as appropriate, may meet periodically with the contractor to review the contractor's performance. At these meetings the contracting officer will apprise the contractor of how the government views the contractor's performance and the contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the government.

1.5.9.1 Financial/Cost Reporting for the Contract (A004). The contractor shall provide a Monthly Financial Status Report (MFSR) that includes a monthly and cumulative financial summary of labor expended, by CLIN and/or subCLIN, related to each respective monthly effort.

1.5.10 Contracting Officer’s Representative (COR): The (COR) will be identified by separate letter. The COR monitors all technical aspects of the contract and assists in contract administration The COR is authorized to perform the following functions: assure that the Contractor performs the technical requirements of the contract: perform inspections necessary in connection with contract performance: maintain written and oral communications with the Contractor concerning technical aspects of the contract: issue written interpretations of technical requirements, including Government drawings, designs, specifications: monitor Contractor's performance and notifies both the Contracting Officer and Contractor of any deficiencies;

coordinate availability of GFP, and provide site entry of Contractor personnel. A letter of designation issued to the COR, a copy of which is sent to the Contractor, states the responsibilities and limitations of the COR, especially with regard to changes in cost or price, CUI 10 estimates or changes in delivery dates. The COR is not authorized to change any of the terms and conditions of the contract.

1.5.11 Key Personnel: Key Personnel must be assigned for the duration of the contract and possess an in depth understanding of AMC’s business processes. The contractor shall have personnel assigned that are Certified Public Accountants who have been licensed by the appropriate state licensing authority and CISA’s with audit and audit remediation experience.

They must be in good standing with the AICPA and applicable state boards. The Government reserves the right to review and approve resumes of all candidates prior to their assignment.

The contractor shall maintain a list of all Key Personnel at all times. All decisions relative to key personnel shall be coordinated with the COR, i.e., extended period of absence (more than three consecutive days), Corporate travel (more than 3 consecutive days), reassignments, vacations (more than 3 consecutive days), etc. The COR has authority to reject these proposed decisions if it is determined that the decision will critically impact the AMC project and/or operation. All unresolved issues will be decided by the Contracting Officer. Personnel change requests are to be reviewed by the Contracting Officer and final approval will rest with the Contracting Representative Officer. Award of a Contract will constitute the government’s approval of Key Personnel. The contractor may propose individuals, regardless of labor category, as "key personnel" whenever the individual performs a function(s) that is believed to be critical to successful performance on any segment of this contract.

1.5.12 Identification of Contractor Employees: All contract personnel attending meetings, answering Government telephones, and working in other situations where their contractor status is not obvious to third parties are required to identify themselves as contractor personnel to avoid creating an impression in the minds of members of the public that they are Government officials. They must also ensure that all documents or reports produced by contractors are suitably marked as contractor products or that contractor participation is appropriately disclosed.

Contractor personnel are required to have a Government issued Common Access Card (CAC) and may be required to wear badges.

1.5.13 Contractor Travel: Travel may be required to obtain information and complete the analysis of plans, discovery work and corrective actions. AMC is located in 50 states and in 148 countries. Specific locations for travel are unknown until selected by the Independent Public Accountant (IPA). Advance notification shall be provided to the appropriate Army point of contact to allow for clearances and site preparation. Reimbursement of expense shall be in accordance with the Joint Travel Regulation (JTR). Travel shall be approved in advance by the COR. Travel shall not commence until written approval is received. Occasional meetings may be held at Army Entity locations. Travel costs are expected to be high, as fieldwork will require extensive travel. Local travel performed in the course of contract performance, is considered the cost of doing business and will not be reimbursed as a direct charge to the contract. Receipts must support any cost expenses over seventy-five ($75.00). Contractor will be required to travel CONUS, OCONUS, and within the National Capital Region (NCR) during the performance of this contract. The contractor may be required to ship training material to locations when training is required. Contractor will be authorized travel expenses consistent with the substantive provisions of the Joint Travel Regulation (JTR) and the limitation of funds specified in this contract. All travel requires Government approval/authorization and notification to the COR.

Travel is reimbursable and will be evaluated via a modification if additional funding is required.

1.5.14 Contractor Other Direct Costs: Other Direct Costs/Incidentals. The contractor may be required to provide incidental materials for the performance of this contract. These item(s) are considered "Open Market Items" and the Government will compete these items in

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accordance with FAR requirements when exceeding three-thousand dollars ($3,000.00). The Contracting Officer is responsible for determining that the proposed prices are fair and reasonable. Allowable and allocable Other Direct Costs required to support the contract may be reimbursed subject to Government review and advance approval by the COR. If approved at the contract level, the contractor must also obtain authorization from the COR prior to acquiring the incidentals and should provide proof of the authorization along with the invoice as supporting documentation. All materials purchased by the contractor for support of this contract, become property of the government. The contractor shall document the transfer of the materials in accordance with established agency procedures.

1.5.15 Organizational Conflict of Interest: Contractor and subcontractor personnel performing work under this contract may receive or have access to proprietary information, which may create a current or subsequent Organizational Conflict of Interests (OCI) as defined in FAR Subpart 9.5 and the US GAO “The Yellow Book” Government Auditing Standard (also known as the Yellow Book OCI standards). The Contractor shall notify the Contracting Officer immediately whenever it becomes aware that such access or participation may result in any actual or potential OCI and shall promptly submit a plan to the Contracting Officer to avoid or mitigate any such OCI. The Contractor’s mitigation plan will be determined to be acceptable solely at the discretion of the Contracting Officer and in the event the Contracting Officer unilaterally determines that any such OCI cannot be satisfactorily avoided or mitigated, the Contracting Officer may affect other remedies as he or she deems necessary, including prohibiting the Contractor from participation in subsequent contracted requirements which may be affected by the OCI.

1.5.16 Records and Data: All data and data rights associated with this effort will be property of the U.S. Government. “DFARS 252.227-7020 Rights in Special Works JUN 1955.”

1.5.17 Safety: The work is administrative and does not involve any construction activities, so a safety plan is not required. The contractor will follow the safety requirements for each individual site visited (such as evacuation plans, weather warnings, traffic rules, etc.).

1.5.18 Duplication of Effort. The contractor shall ensure that there is minimum duplication of effort in the execution of all work specified in the PWS. The contractor shall build upon work previously accommodation by the Government, the contactor, or other contractors to the fullest extent practical.

1.5.19 Cooperation/Coordination with other Contractors: There may be multiple contractors (i.e. from more than one contract vehicle and/or company) supporting the Army, tasked to work on systems that interface with applications within the financial statement family of systems. The contractor shall work with these other contractors as required and approved by the Government to accomplish Government requirements, goals, and objectives as efficiently and effectively as possible. This may include, but is not limited to sharing or coordinating information (as approved by the Government) resulting from the work required by this PWS or previous Government efforts, and/or working as a team to perform tasks in concert.

1.5.20 Contract Deliverables. The submission and review of information submitted under the Contract Deliverables Requirements List (CDRL) required by this PWS shall not limit the Government’s rights and remedies under other provisions of the contract. A full list of CDRLs will be included in Section J of the contract.

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1.5.21 Service Contract Reporting Requirements in the System for Award Management (SAM). In accordance with FAR 52.204-14 Service Contract Reporting Requirements, the contractor shall report ALL contractor labor hours (including subcontractor labor hours) required for performance of services provided under this contract via a secure data collection site. The contractor is required to completely fill in all required data fields in the Service Contract Reporting (SCR) section of the System for Award Management (SAM) using the following web address: https://www.sam.gov. Reporting inputs will be for the labor executed during the period of performance during each Government fiscal year (FY), which runs October 1 through September 30. While inputs may be reported any time during the FY, all data shall be reported no later than October 31 of each calendar year.

1.5.22 Supervision of On-Site Contract Employees. The contractor shall at all times be solely responsible to manage and supervise contractor employees. The contractor shall be responsible for management and administration of contractor personnel performing this task, and the contractor bears all responsibility for contractor performance. All managerial duties for contractor personnel are the responsibility of the contractor, not the Government. The contractor will assign a Contractor Director as the main point of contact between the government and the contractor. The contractor will independently determine how to best complete the desired workload. The contractor will independently, and not as an agent of the Government, exert its best efforts and furnish the necessary personnel to perform the work.

PART 2

DEFINITIONS & ACRONYMS

2. DEFINITIONS AND ACRONYMS:

2.1. DEFINITIONS:

2.1.1. CONTRACTOR. A supplier or vendor having a contract to provide specific supplies or service to the government. The term used in this contract refers to the prime and team members, if any.

2.1.2. CONTRACTING OFFICER. A person with authority to enter into, administer, and or terminate contracts, and make related determinations and findings on behalf of the government.

Note: The only individual who can legally bind the government.

2.1.3. CONTRACTING OFFICER'S REPRESENTATIVE (COR). An employee of the U.S.

Government appointed by the contracting officer to administer the contract. Such appointment shall be in writing and shall state the scope of authority and limitations. This individual has authority to provide technical direction to the Contractor as long as that direction is within the scope of the contract, does not constitute a change, and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

2.1.4. DEFECTIVE SERVICE. A service output that does not meet the standard of performance associated with the Performance Work Statement.

2.1.5. DELIVERABLE. Anything that can be physically delivered but may include non-physical things such as meeting minutes.

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2.1.6. KEY PERSONNEL. Contractor personnel that are evaluated in a source selection process and that may be required to be used in the performance of a contract by the Key Personnel listed in the PWS. When key personnel are used as an evaluation factor in best value procurement, an offer can be rejected if it does not have a firm commitment from the persons that are listed in the proposal.

2.1.7. PHYSICAL SECURITY. Actions that prevent the loss or damage of Government property.

2.1.8. QUALITY ASSURANCE. The government procedures to verify that services being performed by the Contractor are performed according to acceptable standards.

2.1.9. QUALITY ASSURANCE Surveillance Plan (QASP). An organized written document specifying the surveillance methodology to be used for surveillance of contractor performance.

2.1.10. QUALITY CONTROL. All necessary measures taken by the Contractor to assure that the quality of an end product or service shall meet contract requirements.

2.1.11. SUBCONTRACTOR. One that enters into a contract with a prime contractor. The Government does not have privity of the contract with the subcontractor.

2.1.12. WORK DAY. The number of hours per day the Contractor provides services in accordance with the contract.

2.1.13. WORK WEEK. Is defined as Monday through Friday, unless specified otherwise.

2.2. ACRONYMS:

AAA Army Audit Agency ADVANA Advanced Analytics AICPA American Institute of Certified Public Accountants AMC Army Materiel Command AR Army Regulation ASA (FM&C) Assistant Secretary of the Army (Financial Management and Comptroller) AWCF Army Working Capital Fund CAC Common Access Card CAPs Corrective Action Plans CFO Chief Financial Officer CISA Cybersecurity and Infrastructure Security Agency CFR Code of Federal Regulations CONUS Continental United States (excludes Alaska and Hawaii) COR Contracting Officer’s Representative COTR Contracting Officer's Technical Representative COTS Commercial Off-the-Shelf DA Department of the Army DASA (FO) Deputy Assistant Secretary of the Army (Financial Operations) DFARS Defense Federal Acquisition Regulation Supplement DOD Department of Defense DODFMR Department of Defense Financial Management Regulation DoDIG Department of Defense Inspector General EDP Electronic Data Processing ERP Enterprise Resource Planning FAR Federal Acquisition Regulation

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FASAB Federal Accounting Standards Advisory Board (Government) FBWT Fund Balance with Treasury FIAR Financial Improvement and Audit Readiness FISCAM Federal Information System Controls Audit Manual GAAP Generally Accepted Accounting Principles GAGAS Generally Accepted Government Auditing Standards GAO Government Accountability Office GAO/PCIE FAM Government Accountability Office/President’s Council on Integrity and Efficiency Financial Audit Manual GCCS-A Global Combat and Control System – Army GF General Fund GFE Government Furnished Equipment GFEBS General Fund Enterprise Business System GMRA Government Management Reform Act GPP&E General Property, Plant and Equipment G-Staff Governement Staff IPA Independent Public Accountant IPAC Intra-Governmental Payment and Collection IR Internal Review IS Information System IT Information Technology JRP Joint Review Program KO Contracting Officer LMP Logistics Modernization Program MSC Major Subordinate Command NFR Notice of Findings and Recommendations OCI Organizational Conflict of Interest OCONUS Outside Continental United States (includes Alaska and Hawaii) ODC Other Direct Costs OMB Office of Management and Budget OPSEC Operations Security OSD Office of Secretary of Defense PBC Provide by Client POC Point of Contact PRS Performance Requirements Summary QA Quality Assurance PWS Performance Work Statement QAP Quality Assurance Program QASP Quality Assurance Surveillance Plan QC Quality Control QCP Quality Control Program SOA Statement of Assurance SOC Service Organization Controls SOP Standard operating Procedure TFM Treasury Financial Manual USD(C) Under Secretary of Defense (Comptroller)

PART 3 GOVERNMENT FURNISHED PROPERTY, EQUIPMENT, AND SERVICES

3. GOVERNMENT FURNISHED ITEMS AND SERVICES:

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3.1. Service: The Government will provide broad guidance as to the mission at hand.

3.1.1 Communications. The Government will provide network access for all computer systems required for the conduct of official business in the performance of this contract.

Access to the network must be coordinated with the COR. The Government will provide all information systems required to support this contract. The contractor shall use these systems inclusive of changes, modifications, or replacement of the systems, in whole or in part, throughout the period of performance of this contract. Recommended alternatives or changes to existing systems shall be submitted to the COR for approval. The contractor shall not implement changes without written approval from the COR who will contact appropriate Government personnel for final approval. The Government will provide access to the existing Government LAN and email capability. The contractor may use the LAN to access the Internet or to communicate outside of the Government as required for contract performance. The contractor shall use CACs to access the LAN resources.

3.2 Facilities/Office Space: The Government will provide workspace for thirty-five to forty (35

- 40) contractor staff to include desk space, telephones, computers and connectivity to printers, scanners, and fax machines. The location and amount of space may change over the life of the contract. Only contractor personnel supporting this contract can occupy Government-provided facilities. Compliance with OSHA and other applicable laws and regulations for the protection of employees is exclusively the obligation of the contractor and the Government will assume no liability or responsibility for the contractor's compliance or non-compliance with such responsibilities, with the exception of the aforementioned responsibility to make corrections IAW approved plans of abatement subject to post- wide priorities. The contractor shall make no alterations to Government or Government- provided facilities without specific written permission from the KO. However, in the case of alterations necessary for OSHA compliance, such permission will not be unreasonably withheld. The contractor shall notify the KO of any requirement to modify the facilities and shall provide documentation describing in detail the modifications required.

3.3 Government-Furnished Property/Items: The contractor shall be accountable for all Government issued property.

3.4 Utilities: The Government will provide necessary office workspace utilities. The Contractor shall instruct employees in utilities conservation practices. The contractor shall be responsible for operating under conditions that preclude the waste of utilities, such as turning off the water faucets or valves after using the required amount

3.5 Materials: The Government will provide those checklists and process flows that currently exist, and regulatory guidance.

3.6 Data Storage: The Government will provide the contractor with a data storage repository for all data related to this project.

PART 4 CONTRACTOR FURNISHED ITEMS AND SERVICES

4. CONTRACTOR FURNISHED ITEMS AND RESPONSIBILITIES:

4.1 General: The Contractor shall furnish all supplies, equipment, facilities and services required to perform work under this contract that are not listed under Part 3 of this PWS.

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4.2 Secret Facility Clearance: The contractor (and subcontractor/team members if applicable) shall have a secret facility clearance from the Defense Security Service. The Contractors and subcontractors/team members (as applicable) shall have been granted a SECRET facility clearance from the Defense Industrial Security Clearance Office prior to performing work in support of this contract.

4.3. Materials. The Contractor shall furnish all materials and supplies, with the exception of that listed in Part 3, to meet the requirements under this PWS.

4.4. Equipment: The Contractor shall furnish all equipment, with the exception of that listed in Part 3, to meet the requirements under this PWS.

PART 5 SPECIFIC TASKS

5. Specific Tasks:

5.1 Special Qualifications: All personnel performing under this contract shall be able to demonstrate competence in understanding, reading, speaking, and writing the English language. All contractor personnel shall possess a minimum of an Interim SECRET security clearance and must be a United States citizen.

5.1.1 The individual key contractor personnel assigned to the project shall be:

5.1.1.1 Knowledgeable of GAAP, FASAB, GAGAS, OMB Circular A-123, GAO Green Book, DoD Financial Management Regulation, and DoD and Army organizational structures.

5.1.1.2 Experienced in performing audit readiness services within the Department of Defense

5.1.1.3 Familiar with functionality of ERP systems, (GFEBS, GCSS-A, LMP); as well as writing Pyspark code to build GFEBS and LMP tables from the raw SAP tables. Familiar with pertinent Office of Management and Budget (OMB) policies and federal financial management systems requirements. Familiar with DoD policies, systems and procedures for personnel, acquisition, inventory, property and material management.

5.1.2 To ensure effective management of the project, the contractor shall have the following:

5.1.2.1 Experience in delivering innovative accounting or auditing solutions to the Department of Defense,

5.1.2.2 An understanding of the Army's business transformation and Enterprise Resource…