ATT 1_PWS CCSP Updated 2.16.21.pdf

OPM Child Care Subsidy Program Tuesday, February 16, 2021 1

Performance Work Statement (PWS) Child Care Subsidy Program Administration Services

For the Office of Personnel Management (OPM)

1) Background The purpose of this program is to procure a qualified Contractor to support the Office of Personnel Management (OPM), Human Resources Office to administer OPM’s Child Care Subsidy Program (CCSP). The program benefits the Work/Life Wellness initiative for Full-Time OPM employees with lower incomes by subsidizing child care expenses, to reduce the financial pressure by providing subsidies directly to the child care provider.

The eligibility requirements for employees to receive benefits through the CCSP are a full-time work schedule, a total family income below the agency-established threshold, and one or more children age 13 or under (or disabled and under age 18) in licensed child care. The amount an employee can receive depends on total family income and the amount paid for child care. Foster care and foster children are not covered. The child care provider must be a family child care home or a child care center, and both types of care must be licensed and/or regulated by the state and/or local authorities where the service is provided to meet eligibility requirements.

Currently the OPM threshold for total family income to be eligible for CCSP is set at $60,000.00 per year. Note the total family income is subject to change upon approval by OPM leadership. The chart below shows the percentage of total child care costs that OPM pays based on total family income:

Total Family Income Percentage of Child Care Costs Paid by OPM Over $60,000 0% $55,001-$60,000 25% $40,000-$55,000 40% $39,999 or less 70%

Total family income is drawn from IRS Tax Form 1040 or 1040A, and as such is subject to change annually. Any child care subsidy award will be reduced by the amount of other state or local child care subsidies received.

Family income and eligibility thresholds may be subject to change in response to changes in tax regulations, or other forces, and the Contractor shall adjust their services accordingly without an adjustment in the contracted rate for services. OPM reserves the right to increase the total family income threshold and the subsidy formulas indicated above at its sole discretion during performance of this contract, and will provide the Contractor with 60 days notice of such increase in order to prepare to receive additional enrollment requests and adjust payments. OPM is under no obligation whatsoever to make any such increase.

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2) Period of Performance Base Period (12 months): April 1, 2021 –March 31, 2022 Option Period One (12 months) : April 1, 2022 – March 31, 2023 Option Period Two (12 months): April 1, 2023 – March 31, 2024 Option Period Three (12 months): April 1, 2024 – March 31, 2025 Option Period Four (12 months): April 1, 2025 – March 31, 2026

3) Place of Performance All work is to be performed at the Contractor’s site. The Contractor is not required to work on-site and not required to obtain an OPM badge. No space will be provided for Contractor use inside a Government building.

4) Description of Services Required Child care providers receiving payments under this program will mostly be located within commuting distance of the cities listed below, but there MAY be outliers in other geographic locations based on the residence and duty station of the OPM employees.

Washington, DC Philadelphia, PA Boyers, PA Atlanta, GA Charlottesville, VA Chicago, IL Denver, CO Ft. Meade, MD Kansas City, MO Macon, GA Norfolk, VA San Francisco, CA

The Contractor shall provide service to ALL eligible OPM employees in the U.S.

regardless of geographic location.

OPM estimates the number of children eligible for child care subsidy each year will range from 5 to 25 for each base/option year, however, there are no maximum or minimum enrollment numbers being established by this contract. The contractor will process however many or few OPM child care subsidies as are eligible and apply each year. The number of children enrolled/eligible each month may also vary. The number of centers providing care each year may vary.

OPM has provided historical data regarding enrollment for the past several years, along with current enrollment data in Exhibit A. Due to the many variables that contribute to the enrollment and eligibility for the program, the number of eligible participants/children is unable to be accurately predicted.

In performance of this contract, the Contractor shall:

(a) Receive Applications, Comply with Regulations, Evaluate Eligibility.

o Work with OPM staff to assist the Government in establishing Agency policy for employee applications. Recommend procedures to electronically receive completed employee applications. Process applications, make a determination of eligibility and recommend approval by OPM Benefits Team Lead. Process child care assistance amounts based

OPM Child Care Subsidy Program Tuesday, February 16, 2021 3 on the percentage of total child care costs that OPM will pay based on total family income (TFI) (see section 1-Background). Ensure that any assistance an employee receives from State/county/local child care subsidy funds is taken into consideration when determining the assistance amount.

Ensure those child care providers receiving funds as a result of the Agency's child care assistance are licensed and/or regulated by State and/or local authorities. Child care provider licensure verification/ re-verification must occur immediately at the start of the new contract and on an annual basis thereafter.

o Ensure that Federal employees submit with their completed OPM 1643 application form, a completed copy of OPM 1644 (Child Care Provider Information Form). Attached with the OPM 1644 shall be a copy of the provider's unexpired license and/or statement of compliance from their State and/or local authorities.

o Ensure that licensed child care providers understand that if a provider, for whatever reason, is no longer licensed and/or regulated by the State and/or local authorities, the provider must immediately notify the Contractor and the Federal employee whose child is enrolled in the child care program. In such cases, the provider will no longer be permitted to receive assistance funds. If available at the time of award, OPM will provide the Contractor with a list of existing child care providers and the date of their last licensure verification.

o If employees become ineligible for CCSP after being approved, the Contractor will provide employees with at least a 30 calendar day notice of benefit withdrawal. This could occur when there is:

an increase in income that causes TFI to exceed the eligibility requirements according to subparagraph failure to use a licensed daycare provider non-compliance with terms of Contractor’s CCSP contract.

Note: If an employee provides Contractor with fraudulent documentation, CCSP assistance must be withdrawn, and OPM notified immediately.

o Maintain confidentially of all information contained in CCSP applications and ensure that only the Contractor, the child care provider, the COR, and OPM’s HR staff know the identity of the applicant.

o Notify the participants and child care providers of the number of monthly assistance payments that each family will receive, and the date the assistance payments will begin or end.

o Participants will be required to requalify by June 1st of each year based on their updated total family income (1040 AGI). The Contractor shall send letters to participants each May requesting submission of their most recent tax return, SELs, and SF-50 to prove continued eligibility. OPM will provide the Contractor with current participant records upon award.

o Ensure program documents, communications and marketing materials are 508-compliant.

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(b) Receive Subsidy Monies from OPM and Issue Payments to Providers.

o Ensure that child care providers submit a signed invoice no less frequently than monthly to the Contractor. Both the child care provider and the parent must certify on the invoice that the care was provided. The Contractor shall obtain all necessary signatures. Provide qualifying payment to provider no later than 5 workdays after the date of invoice receipt.

o Pay the child care subsidy monies directly to the child care provider, not to the OPM employee.

o Pay child care subsidies monthly as required by Agency policy. Provider invoices must be quoted as full week amounts unless services for the child end during a particular week or are not provided for a full week.

o Based on the analysis of the applications received by the Contractor, the Contractor shall provide quarterly estimates of the funds needed to pay the subsidies for the remainder of the current contract period of performance (calendar year). These estimates shall be forwarded to the OPM Contracting Officer Representation, Manager of OPM’s HR Talent Management & Development Services group, and OPM’s Benefits Team Lead.

(c) Prepare Reports.

o Contractor shall track payments to child care providers by employee name on a monthly basis as required by OPM.

o Contractor shall provide monthly, quarterly, and annual reports to the

COR, the Manager of OPM’s HR Policy, Training and Benefits group, and OPM’s Benefits Team Lead. See Section 7- Deliverables for specific report requirements.

o Prepare tax-related documents as required by law. See Section 7 – Deliverables for specific requirements.

(d) Coordinate Program Participation:

o In the case of an employee request for review of a denial of benefits, the

Contractor shall prepare and provide the documentation necessary for the COR and OPM Benefits Team Lead.

o The Contractor shall serve as the point of contact for information eligibility, application requirements, and program administration for potential participants and will also respond to child care provider questions. The Contractor shall advise the participant if he or she is no longer eligible to participate in the Agency's CCSP based on Agency policy. The Contractor shall forward fairness questions to OPM’s Benefits Team Lead.

(e) Maintenance and Records.

o All records related to OPM’s CCSP administration shall be maintained by the Contractor. These records include but are not limited to, all transactions between the Contractor and OPM, the Contractor and the child care provider, the Contractor and the employee, and any other transactions between the Contractor, and any other party to the contract.

o Records will be maintained by calendar year.

OPM Child Care Subsidy Program Tuesday, February 16, 2021 5 o A hard copy of all records for the previous calendar year are to be provided to OPM within 2 months after the end of each calendar year.

Such records shall be sorted by calendar year and then employee name.

o Promptly respond to requests from the COR and OPM Benefits Team Lead for information related to Freedom of Information Act or Privacy Act inquiries.

Performance of this contract shall not require or include the creation or development of a website, app, or online portal for OPM employee use.

5) Contract Type and Pricing Structure The contract type will be Indefinite Quantity (IDIQ) with FIRM FIXED PRICES for the specified services. There will be two contract line items (CLINS) per period of performance:

CLIN X0001 - Administrative Services Fee: The payment structure for services will include a fixed monthly rate inclusive of all services required, for up to and including 15 children receiving CCSP in any given month, and includes all expenses of running the program. In months for which more than 15 children are receiving CCSP services, the Contractor shall be paid an additional fixed rate per child /per month for the 16th and subsequent children. Refer to the Price Schedule for more information.

CLIN X0002: Child Care Subsidies: The Contractor will be reimbursed for the CCSP subsidy payments it makes to the providers on behalf of the government at actual COST, with no markup or profit added. This is a direct pass-through, and no portion of these funds may be kept by the Contractor if not utilized. Advanced payment will be authorized for Child Care Subsidies only. Refer to Invoicing section for further details.

6) Invoicing The Contractor shall be permitted to invoice as follows:

(a) A single advance invoice for Child Care Subsidies, CLIN X0002, with which to pay the coming months’ subsidies, which shall not exceed 15% of the annual subsidy estimate funded on the task order. This advance is to be used to establish a balance from which to pay the subsidies to the child care providers due in the coming months. (Note: Initial advance draw per period of performance shall not exceed 15% of the annual subsidy estimate funded on the task order. )

• Advance is not intended to finance the Contractor’s operations, but to ensure the Contractor has adequate funds on hand with which to pay the subsidies once all signatures verifying services rendered have been received from parents/guardians.

• Under NO circumstances may the Contractor bill for advance payments above 15% of the annual total.

(b) A monthly actual usage invoice for Child Care Subsidies, CLIN X0002, billing in arrears for the amount of subsidy payments actually made, in order to replenish

OPM Child Care Subsidy Program Tuesday, February 16, 2021 6 the advanced balance. This actual usage invoice shall be submitted with or after the monthly report.

Under NO circumstances may the Contractor accrue excess subsidy funds belonging to the Government.

Excess subsidy funds from one contractual period of performance shall not be carried forward (rolled over) by the Contractor for use in the next period of performance.

It is important that the Contractor ensures that any remaining advances received get credited against the last few months subsidy invoices in each period of performance in order to not have a large balance needing to be refunded.

If excess funds exist at the end of the period of performance which are not needed to pay the final month subsidies, the Contractor shall promptly refund those excess funds back to the Government. Contact the Contracting Officer for updated instructions on how to send a refund of any overcollection.

(c) A monthly service fee invoice, for CLIN X0001, to be paid in arrears of the month in which services were rendered. This service fee invoice shall be submitted after the monthly reports and the dollar value requested shall be supported by the content of the monthly reports.

Invoicing may not exceed a maximum of three invoices per month, one for the advance , and up to two additional invoices to cover the actual subsidies used and the Contractor’s service fees. The Contractor may combine invoices so long as itemized detail is provided and charges are clearly delineated according to the three categories noted above. The Contractor shall ensure that the correct contract line item number (CLIN) is referenced for each amount invoiced. Contractor shall note that CLIN numbers will change in each option year, and shall ensure that the correct CLIN is being billed against for the month in question. Invoices shall be submitted in accordance with the invoice submission instructions stated in the contract terms and conditions, and also copy the COR on that emailed submission. Invoices that do not comply with invoice submission requirements, which attempt to collect for amounts above what is allowed, or which reference the incorrect CLINs will be returned without payment for correction and resubmission.

7) Deliverables The Contractor shall complete and deliver the following:

(a) Full Monthly Report: Deliver a Full Monthly Report to OPM no later than the 10th day of each month for the activity that occurred in the previous calendar month. The report shall contain the following information, at a minimum:

The dollar amount and number of child care subsidies disbursed in the given month.

The invoice number and the dollar amount of the monthly advance taken for that month. The invoice number and dollar amount of the monthly adjustment invoice submitted for that month.

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The number of children enrolled whose parents receive the child care subsidy.

The number of Federal employees from the agency who qualified for a subsidy and who is receiving the subsidy.

The total family income of each family that receives a child care subsidy, broken down to reflect the total reported income for each spouse in the family.

The name, address, and tax ID number (TIN) of each child care provider who received a subsidy on behalf of an OPM employee.

The amount of child care subsidy for each recipient.

The name of the OPM employee in receipt of CCSP benefits, and the name, age, and address of each eligible child.

The total number of new applications for child care subsidy in the process at the end of the month.

The number of new child care subsidies processed during the month, including the number of applicants who were found ineligible.

Financial information for tax purposes that includes the name of each employee whose child care provider received a child care subsidy for that month, the employee’s social security number, and the amount of the subsidy received by the employee’s child care provider.

The names of the child care providers whose licensure verifications have been completed in the prior month.

Because of the Personally Identifiable Information (PII) included in the Full Monthly Report, the Contractor shall properly secure the electronic file for submission to the Contracting Officer’s Representative (COR) and OPM Benefits Team Lead via email. The Full Monthly Report shall never be submitted through the Invoice Submission email address. The Full Monthly Report must not be submitted later than the final invoice for that month (i.e. – final invoicing for each month cannot be approved without the Full Monthly Report having already been delivered to the COR and OPM Benefits Team Lead.)

(b) Sanitized Monthly Report: A sanitized version of the Monthly Report shall be submitted with the end of month invoices to support the dollars being invoiced therein. The sanitized version shall omit children’s and employee’s names, addresses, social security numbers (SSN), household income, and the TIN/SSN numbers of the daycare providers. This report shall be submitted as an attachment to the SAME emails used to transmit the Adjustment Invoice (Item 6b above).

(c) Quarterly Report: Deliver a Quarterly Report to OPM no later than the 10th day of the month following the end of each contract quarter describing the status of the child care subsidy program and all significant issues encountered during the previous quarter and all significant issues and all significant issues the Contractor anticipates it will encounter in the quarter following the quarter being reported.

The Quarterly Report shall not be submitted through the Invoice Submission

OPM Child Care Subsidy Program Tuesday, February 16, 2021 8 email addresses. The Contractor shall submit to the Contracting Officer’s Representative (COR) and OPM Benefits Team Lead via email.

In addition to the above, the Quarterly Report shall also detail the following:

The names of all child care providers who received subsidy payments in the given quarter, along with their addresses, TIN, and the dollar value each received.

The status of licensing and certification of each child care provider who received subsidy payments.

The names of any parents whose child care provider is no longer compliant with licensing/certifications and the date upon which they have been notified by the Contractor of the cancellation or suspension of subsidy payments.

Quarterly estimates of the funds needed to pay the subsidies for the remainder of the current contract period of performance (calendar year)

(d) Annual Contract Settlement Report: Deliver an annual contract settlement report to the Contracting Officer (CO), COR, and OPM Benefits Team Lead following receipt of payment for the final invoices relative to each period of performance, and not later than 3 calendar months following the end of the period of performance. This report shall include the following detail:

The invoice numbers, submission dates, CLIN Numbers, and dollar values billed to each, total invoice and payment amounts, and performance dates for each invoice relative to that period of performance.

Note the total dollar value of funds the Government obligated to each CLIN for that period of performance, calculate the dollar value of invoices paid against each CLIN, and indicate the dollar value of excess funds for each CLIN which were not utilized and may be deobligated from the contract via modification.

The financials on the Annual Contract Settlement Report must match with the numbers from each of the monthly reports, and the quarterly reports previously submitted, as well as balance with the invoices rendered for that period of performance. The Contractor shall submit to the Contracting Officer’s Representative (COR) and OPM Benefits Team Lead via email.

The Contractor may be required (at CO discretion) to sign and submit a Release of Claims form to be provided by the Contracting Officer, authorizing closeout of each period of performance and acknowledging that the Contractor has invoiced and been paid in full for that period of performance.

If the final invoice for the period of performance has not yet been paid to the Contractor before the end of the 3rd month following the end of the period of performance, the Contractor shall notify the COR and OPM Benefits Team Lead in writing of the need to submit the Annual Contract Settlement Report late.

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(e) Tax Document Compliance and Reporting: The Contractor shall prepare and distribute all tax-related documents as required by law, including, but not limited to:

W-2 Reporting: The Contractor shall provide a report of "tax year" benefits paid for inclusion on the employee's W-2. This information shall be provided no later than December 31 of each tax year. W-2 Reporting shall include each employee, and list employee name, social security number, and amount of CCSP assistance monies paid during the tax year. The W-2 information shall be sent to the COR as well as the OPM Benefits Team Lead.

Form 1099: For each child care provider who receives CCSP payments under this program, the Contractor shall provide a completed Form 1099, as required by law. The Contractor shall provide OPM copies of the completed form 1099 for all participants.

(f) Calendar Year Records Transfer: As indicated in Section 4(e) above, the Contractor shall provide hard copy records transfer to OPM annually, on a calendar year basis.

8) Use of Government Data The Contractor shall not use any Child Care Subsidy Program (CCSP) related data (including participant employee or dependent names, addresses, demographic, income, or contact information) for any reason other than administration and performance of this contract without OPM's explicit written approval in advance. The contractor shall not market, distribute, or sell such data to any third party, for any purpose whatsoever.

9) Quality Assurance Surveillance Plan The following Quality Assurance Surveillance Plan (QASP) applies to performance under this contract:

Quality Assurance Surveillance Plan (QASP) Deliverable Performance Standard Acceptable Quality

Level (AQL) Monitoring Method

Performance Incentive/ Reduction

Performance of Services as described in Section 4

As stated in Section 4. COR Does not receive any complaints from child care providers or parents regarding non-payment / late payment.

Provider complaints, Parent complaints

Positive/ Negative Evaluation in

CPARS

6 – Invoicing Invoicing references the correct CLINS and includes the full level of detail required. Invoices submit according to invoicing instructions.

Amounts billed are fully supported by the Sanitized Monthly Report.

Invoices do not require rejection of more than one invoice per year.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS

OPM Child Care Subsidy Program Tuesday, February 16, 2021 10

Deliverable Performance Standard Acceptable Quality Level (AQL)

Monitoring Method

Performance Incentive/ Reduction

7(a) - Full Monthly Report

Due no later than the 10th day of each month, Delivered to the COR, not via invoice submission mailbox.

Arrives ahead of the end of month invoices for the stated month.

Late not more than once per year, Not more than 2 days late if late, and advance notification given of the intention to submit late.

PII is protected by secure transmission.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS

7(b) - Sanitized Monthly Report

To be submitted with the end of month invoicing.

Sensitive information is not included.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS

7(c) - Quarterly Report

Due no later than the 10th day of the month following the end of each contract quarter, Delivered to the COR, not via invoice submission mailbox.

Late not more than once per year, Not more than 2 days late if late, and advance notification given of the intention to submit late.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS

7(d) - Annual Contract Settlement Report

Due not later than 3 calendar months following the end of the period of performance

Advance notification is given if anticipated to be late.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS

7(e) - Tax Compliance & Reporting

As stated in Section 7(e). 100% on-time, cannot be late.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS

7(f) - Records Transfer

As stated in Section 7(f). Advance notification is given if anticipated to be late.

COR shall monitor receipt

Positive/ Negative Evaluation in

CPARS