Attach 1 - SOW 381591 040725.pdf

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STATEMENT OF WORK

Requisition #: 381591

Title: WRPS Closeout Office Audit Support- Subcontractor Audits

Revision Number: 0

Date: 04/07/2025

1.0 Objective

The objective of this Statement of Work is to provide subcontract incurred cost and indirect rate audit services to the Internal Audit department of Washington River Protection Solutions (WRPS).

2.0 Background/Introduction

Washington River Protection Solutions (WRPS) is obligated through the Tank Farms Operations Contract (TOC) DE-AC27-08RV14800, under contract clause Department of Energy Acquisition Regulations (DEAR) 970.5232-3, “Accounts, Records, and Inspections”, to perform audits of its subcontracts where costs incurred are a factor in determining the amount payable to the subcontractor of any tier. Multiple subcontractor audits are typically planned and performed each year to meet WRPS internal audit obligations. This subcontractor is required to perform to Generally Accepted Government Auditing Standards (GAGAS) assurance standards, planning, fieldwork, work paper preparation, and reporting of subcontractor incurred cost and/or indirect rate audits, and other related tasks with the availability to complete and issue draft subcontract audit reports prior to September 01, 2025.

This work provides administrative or audit related program support functions only. No hands-on tank farms operational activities will be performed.

3.0 Scope

Perform identified subcontractor’s incurred cost and/or indirect rate audits through all aspects of the audit including planning, fieldwork, work papers preparation, and reporting. Audits shall be performed, documented and reported in a manner compliant with the (GAGAS) framework as issued by the U.S. Government Accountability Office.

Determine whether subcontract costs are compliant to the subcontract terms and provisions and applicable laws, regulations, policies and contractual requirements.

o For incurred cost audits this determination is not limited to, but should include risks associated with: whether subcontract terms and provisions were in compliance with WRPS’ regulatory and prime contract requirements; whether any cost-plus-percentage-of-cost arrangements, explicit or de factor, existed; whether individuals met qualifications for labor categories billed; whether any excessive pass-through costs were incurred; whether costs were adequately supported;

whether costs were incurred within the subcontract’s period of performance;

Page 2 of 5 (B-2 04.27.2023) whether costs were compliant to FAR 31.2; whether prices paid were fair and reasonable; whether lower-tier subcontractors were related parties and billed accordingly; and any other identified risks that could result in questioned costs.

o For indirect rate audits, this determination is not limited to but should include risks associated with determining whether the subcontractor’s indirect rate submission complies with FAR 52.216-7(d), whether costs included in the indirect/overhead pool(s) comply with FAR 31.2, and any other identified risks that could result in questioned costs.

Prepare audit work papers and supporting documentation for completeness, accuracy, and logical conclusions. Work papers must be complete and have evidence of review prior to submittal.

Prepare audit reports to support the closing of subcontracts by WRPS Procurement

Provide the standard audit programs, reports, and tools to be used in the performance of subcontract audits.

Provide written status updated, at a minimum, biweekly, to the Chief Audit Executive or delegate. These updates shall include, at a minimum, status of schedule, any potential questioned, unsupported, or unallowable costs, and status of all requests made from or to WRPS or subcontractor personnel.

Work with subcontractors to obtain needed documentation or other information.

Provide timecards with employee and authorizing supervisor certification for any hourly billing or non-firm fixed price contract.

Provide a final Audit Report to the Chief Audit Executive or delegate identified in the Kick-Off meeting by a specified due date identified at the subsequent release level.

4.0 Submittals

Submittals will consist of an audit report for each subcontractor audit performed along with the audit work papers and supporting documentation.

5.0 Acceptance Criteria

Subcontract work products and services shall meet applicable standards as referenced in

6.2 below. All deliverable documentation shall be complete, accurate, legible, and reproducible. Before delivery, work performed, and documents provided shall be reviewed by qualified Subcontractor personnel for technical adequacy and appropriate content. The Subcontractor shall attest, in writing, to the accuracy and completeness of the information contained in the final deliverables.

6.0 Configuration Management and Standards

6.1 Configuration Management Requirements

There are no specific Configuration Management requirements applicable to this SOW.

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6.2 Applicable Standards

There are no specific applicable standards identified for this SOW.

7.0 ESH&Q Requirements

7.1 Quality Assurance Requirements

The Subcontractor shall follow standard commercial quality practices.

7.2 Special ESH&Q Requirements

Hanford Site access is not authorized for work to be completed under this SOW.

7.3 Price-Anderson Amendments Act Requirements

This 7.3 section and the General Provisions Article 2.11 entitled, Price-Anderson Amendments Act (PAAA), are both determined to be not applicable.

7.4 Sustainable Acquisition

WRPS shall ensure that the appropriate sustainable acquisition requirements per DEAR 952.223-78, Sustainable Acquisition Program, are met to the maximum extent possible.

This helps to eliminate environmental hazards, conserve environmental resources, minimize life-cycle cost, and maximize operational sustainability through the procurement of environmentally preferable products (EPP) thereby minimizing the economic and environmental impacts of managing toxic by-products, hazardous wastes, and air pollutants generated in the conduct of site activities. This entails the following efforts:

Procuring EPP when available, affordable, and effective. If EPP products cannot be utilized, a determination shall be documented citing the reason.

Procuring Environmental Protection Agency (EPA) designated recycled-content products.

Procuring Department of Agriculture designated biobased-content products and EPA Significant New Alternatives Policy (SNAP) program acceptable substitutes for ozone depleting substances (ODSs).

Procuring EPA Energy Star® labeled and Federal Energy Management Program (FEMP)-designated products.

Considering other environmentally preferable products, using tools such as:

Sustainable Facilities Tool (SFTool) to identify sustainable strategies and efficient planning opportunities.

Green Procurement Compilation (GPC) to identify environmental requirements by product category.

WRPS shall ensure that sustainable acquisition requirements are flowed down to the Subcontractor.

8.0 Verification/Hold Points

Not Applicable

9.0 Reserved

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10.0 Work Location/Potential Access Requirements

Contractor’s home office with periodic office visits to audited subcontractors’ home offices if necessary. Travel costs, if any, are to be part of the firm fixed price for each release.

11.0 Training

The Contractor is expected to be appropriately trained and experienced in performing the work specified. Task specific or unique training or qualifications required for this task includes knowledge of the Federal Acquisition Regulations, Department of Energy Acquisition Regulations, Generally Accepted Government Auditing Standards and incurred cost and indirect cost auditing programs.

12.0 Qualifications

Subcontractor personnel performing services shall have technical staff, appropriate training, experience, qualification and/or certification(s), should be familiar with subcontractor incurred cost and indirect rate audits.

Documentation / certification of personnel qualifications shall be maintained by the subcontractor and provided to WRPS. Subcontractor personnel qualifications / certifications will be verified by WRPS.

Project Manager:

o Must possess a B.S. or B.A. Degree in Business Administration, Accounting, or related field.

o Must have at least five years of applicable work experience.

o Other desired qualifications include a Masters or MBA and at least one of the following certifications: Certified Public Accountant, Certified Internal Auditor, Certified Information Systems Auditor, Certified Government Auditing Professional, and/or Certified Management Account.

Project Team Overall:

o Must possess general knowledge of the Hanford Site or DOE operational practices. Other desired qualifications include prior experience auditing subcontractors for a DOE prime contractor.

o Must possess experience in interpreting Federal Acquisitions Regulations (FAR), Department of Energy Acquisition Regulations (DEAR), and Cost Accounting Standards (CAS), DOE Office of Inspector General (OIG) acquisition letters and audit reports.

o Must possess mastery knowledge of auditing within Generally Accepted Accounting Principles (GAAP) and Internal Auditing Standards.

o Must be able to work in a team atmosphere and be able to communicate and relate effectively with coworkers, subcontractors and DOE personnel.

Subcontractor:

o Must have current peer review as required per Generally Accepted Government Auditing Standards (GAGAS) and will be required to provide any updates to peer review status upon request.

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13.0 Special Requirements

Not Applicable

Use of Government Vehicles

There is no anticipated need for any Subcontractor employees to use a Government-furnished vehicle in the performance of this statement of work. The Subcontractor’s employees, therefore, are specifically prohibited from driving any Government-furnished vehicles under the performance of this statement of work unless this statement of work is formally so modified by the parties and the employee(s) will present a valid driver’s license to the BTR for review.

Government Property

Government Property is not anticipated to be furnished to or acquired by Subcontractor under this SOW.

14.0 Reporting/Administration

Kick-off Meeting

A kick-off meeting shall be held after award of this Blanket Master Agreement. This meeting will focus on a discussion of the work scope and the goal, role, and responsibility of each project participant. Pertinent documents shall be reviewed and discussed.

Status Meeting

The subcontractor shall hold status meetings on a as needed basis to discuss project issues as they arise. The frequency of the meetings may be subject to change as the project progresses and per the direction of the Audit Director. The Subcontractor shall prepare meeting minutes and submit them to WRPS for review and concurrence.

Communications

Any oral communications or informal written communications (e.g. e-mail, facsimiles) affecting the approved work scope shall be brought to the attention of WRPS by the Subcontractor before the Subcontractor takes any action. Any changes/additions to the work scope shall be formalized by written contract amendment issued by WRPS Contract Administrator.

15.0 DEAR 970.5223-4 Workplace Substance Abuse Programs at DOE Sites (Dec 2000) Requirements

Not Applicable.