Attachment E - Task Order 0001 Performance Work Statement (PWS).docx

Attachment E – Task Order 0001 Performance Work Statement (PWS)

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND (CDFI FUND)

NEW MARKETS TAX CREDIT PROGRAM (NMTC PROGRAM)

PERFORMANCE WORK STATEMENT

NMTC PROGRAM NATIVE INITIATIVE

1.0 BACKGROUND

The Community Development Financial Institutions Fund (CDFI Fund) was established in 1994 by Congress and is an agency within the U.S. Department of Treasury. The CDFI Fund's mission is to expand economic opportunity for underserved people and communities by supporting the growth and capacity of a national network of community development lenders, investors, and financial service providers. The CDFI Fund achieves its mission through the administration of the Community Development Financial Institutions Program (CDFI Program), Native American CDFI Assistance Program (NACA Program), Capital Magnet Fund (CMF), Bank Enterprise Award Program (BEA Program), New Markets Tax Credit Program (NMTC Program) and other CDFI Fund programs. These programs make annual awards through competitive application rounds administered by the CDFI Fund.

The New Markets Tax Credit (NMTC) was established by Congress in December 2000 to help Low-Income Communities (LICs) attract private investment capital by providing investors with a Federal tax credit. The NMTC Program, administered by the CDFI Fund, awards tax credit allocation authority to certified Community Development Entities (CDEs) through annual, competitive application rounds administered by the CDFI Fund.

A certified CDE is a domestic corporation or partnership that is an intermediary for the provision of loans, investments, or financial counseling in LICs. In order to be certified by the CDFI Fund as a CDE an organization must: (1) be a legal entity at the time of application; (2) have a primary mission of serving LICs; and (3) maintain accountability to the residents of is targeted LICs. CDEs apply to the CDFI Fund to receive a NMTC allocation. If selected to receive an NMTC allocation, the CDE would offer the tax credit to investors in exchange for an equity investment. The CDE can use the equity investment to make loans or equity investments in Qualified Active Low Income Community Businesses (QALICBs). In addition, certified CDEs may receive loans or investments from other CDEs that have received NMTC allocations or sell their loans to other CDEs that have received NMTC allocations.

2.0 OBJECTIVE

This PWS identifies specific Contractor activities that will support the New Markets Tax Credit Program’s broader effort to increase investment in Federal Indian Reservations, Off-Reservation Trust Lands, Hawaiian Home Lands, and Alaska Native Village Statistical Areas (NMTC Native Areas). The activities are described in detail in Section 3.0 Scope of Work.

3.0 SCOPE OF WORK

The Contractor shall be required to perform preliminary research and analysis, and report on the specific challenges that Native entities (e.g. Tribes, Alaskan Native Villages, Native Hawaiian communities) experience participating in the NMTC Program. The research and analysis will be used to inform the development of training curriculum and related materials, which will include a self-assessment guide. These deliverables are described in detail below.

3.1. Contract Deliverables

This Contract will contain five (5) distinct deliverables. The CDFI Fund expects the Contractor to generally adhere to the order for completing deliverables specified in Table 1. Order of Contract Deliverables. Any suggested changes to the order of the deliverables by the Contractor will be subject to formal CDFI Fund approval.

Table 1. Order of Precedence

I. Market Research Report to the CDFI Fund Contractor completes II. (a) Summary Analysis of NMTC Investment Data and representative sample of QALICBs.

Contractor will complete Market Research Report within four (4) months of contract execution.

Contractor will complete Summary Analysis of NMTC Investment Data within two (2) months of contract execution.

II.(c) Survey Design Contractor will complete within five (5) months of contract execution.

Contractor will provide this after the technical assistance workshops.

I. Market Research Report The Contractor shall conduct a literature and data search of peer reviewed and/or sponsored research (e.g. Tribal entities, universities, philanthropic foundations, academic journals, federal, state and local government or government-sponsored entities; Native membership associations) to identify existing research reports and/or data on tribes that have successfully implemented community economic development strategies that resulted in attracting private sector capital to NMTC Native Areas in the last 10 - 20 years. The sources should include research sponsored by tribal governments and using tribal government data sources to the maximum extent possible. The CDFI Fund will review and approve the Contractor’s sources, data, and methodology before the Contractor begins drafting the report. The Contractor shall address the CDFI Fund’s feedback on the sources and methodology used.

At a minimum, the ‘Market Research Report’ shall include a description of the report objectives, methodology and sources, description of the unique challenges facing tribes, Alaskan Native Villages and Native Hawaiian communities in attracting private sector capital for implementing economic development strategies, description of the mechanisms used to address these challenges, an executive summary, conclusions and a bibliography. The CDFI Fund also requires the Contractor to provide periodic briefings and progress updates during the report drafting process, which may include the reviewing of draft reports. The CDFI Fund’s periodic review may result in questions, suggestions or edits that the Contractor will be responsible for addressing. The ‘Market Research Report’ shall be drafted according to the CDFI Fund’s Style Guide and the final version must be 508-Compliant.

II. Summary Analysis of NMTC Investment Data, Case Study Selection & Survey of NMTC Investment Participants There are five (5) specific tasks under this deliverable:

a. Summary Analysis of NMTC Investment Data (QLICI Data): The Contractor shall conduct an in depth analysis of the NMTC Investments Data and draft a ‘Summary Analysis of NMTC Investment Data’ report that provides a high-level, overall summary of the findings and detailed information on NMTC investment in NMTC Native Areas, identifying attributes of projects or businesses that received NMTC investments (e.g., investment amount, investment purpose, QALICB location, business type, Allocatee characteristics such as service areas, Minority or Tribal ownership/control, etc.). If the QLICI data does not include needed information (e.g., business description), the Contractor shall make a determination based on analysis of the data and/or public information. The Summary Analysis shall also include a description of the methodologies used and a representative sample of QALICBs located in NMTC Native Areas that will inform the Case Study Selection. The representative sample shall reflect diversity in Native QALICB sponsors (e.g. tribes, Alaskan Native Villages and Native Hawaiian communities), business types (e.g. social services, education, industrial, retail, health, cultural, food, etc.), geographic locations, dollar amounts of NMTC investments (e.g. less than $4MM; greater than $4MM; average, median), and Allocatee types (e.g. Native CDEs and Non-Native CDEs). Native CDEs include Allocatees that identified as a Tribal Entity or as Minority-owned or Minority-controlled in the NMTC Application that received Allocations.

The CDFI Fund requires the Contractor to provide periodic briefings and progress updates during the report drafting process, which may include reviewing draft reports. The CDFI Fund’s periodic review may result in questions, suggestions or edits that the Contractor will be responsible for addressing. The ‘Summary Analysis of NMTC Investment Data’ report shall be drafted according to the CDFI Fund’s Style Guide and the final version must be 508-Compliant.

b. Case Study Selection: Based on the representative sample of QALICBs provided in II(a), the Contractor shall recommend 18 to 20 QALICBs for Case Studies that the CDFI Fund will review. The CDFI Fund will select 9 QALICB Case Studies. These 9 QALICB Case Studies will inform the Survey Design and participants in these NMTC investments will ultimately receive the Survey based on their role (e.g., tribal government, tax credit investor, QALICB, Allocatee). If there are difficulties reaching representatives of the 9 QALICBs selected to receive the Survey, the CDFI Fund will select a replacement QALICB from the original list of 18 to 20.

c. Survey Design: The Contractor shall design survey instruments using the 9 Case Studies identified and approved by the CDFI Fund. The survey instrument design should enable the Contractor to administer the survey using an electronic format and/or using a live interview format. The Contractor shall develop a distinct survey instrument for each party in the NMTC investment. For example, the Contractor shall develop a set of survey questions for the Native QALICB project sponsor that are distinct from the survey questions for the tribal government representative, the Allocatee, the leverage debt provider, and the tax credit investor. The survey instruments may also be informed by the Market Research Report findings. The CDFI Fund will coordinate with the Contractor on efforts to obtain additional information or documents from the Allocatee/CDE (e.g., NMTC financial projections) needed for the survey instrument. The CDFI Fund will review and approve the survey instrument and content before the Contractor begins administering it.

d. Administer Survey: After receiving CDFI Fund approval of the survey instruments, the Contractor shall conduct surveys of the parties to the nine (9) selected case studies. In the event that a Native QALICB sponsor(s) does not wish to participate in the survey, the CDFI Fund may select additional case studies, such that a total of nine (9) Native QALICB sponsors will be surveyed.

e. Survey Report: The Contractor shall provide a report that includes a description of the final methodology for selecting the case studies and a description of the case studies. The ‘Survey Report’ shall also compile the survey results, including: a summary of general findings, a description of the unique challenges and/or structural barriers facing tribes in attracting NMTC investments in NMTC Native Areas, and best practices for addressing these unique challenges or structural barriers. The ‘Survey Report’ shall include topics that would be helpful in NMTC Best Practices Workshops (see deliverable V. below) for various stakeholders involved in NMTC investments in NMTC Native Areas, including representatives of tribes, Alaskan Native Villages, Native Hawaiian communities, Native CDFIs, Native owned or controlled CDEs.

The ‘Survey Report’ shall provide recommendations for increasing Native CDE participation in the NMTC Program and promoting partnerships between Native Entities, Allocatees and NMTC Investors. The Survey Report shall be drafted according to the CDFI Fund’s Style Guide and the final version must be 508-Compliant.

III. NMTC Technical Workshops There are three (3) specific tasks required under this deliverable:

a. NMTC Technical Workshop Materials: The Contractor shall use their experience and familiarity working with Native American, Alaskan Native and Native Hawaiian organizations and/or institutions to adapt existing NMTC training materials to be applicable and culturally appropriate for representatives of Native organizations, including tribes, Alaskan Native Villages, Native Hawaiian communities, Native CDFIs, and Native CDEs. Potential topics include: introduction to New Markets Tax Credits, NMTC Program overview, developing an NMTC business strategy and pipeline, underwriting the NMTC project or business, assessing community outcomes, partnering with tax credit investors, management and staffing of NMTC operations and financial considerations.

At a minimum, the Training Materials shall consist of a training plan, workshop agenda, and training content. The CDFI Fund expects to work collaboratively with the Contractor and expects to have considerable input on the training content. All training materials will be drafted according to the CDFI Fund’s Style Guide and 508-Compliant.

b. Conduct a Minimum of Two (2) NMTC Technical Workshops: These workshops shall be delivered either online or in-person. The CDFI Fund will have significant input on the NMTC Technical Workshops. This includes the ability to: (1) determine the number of workshops; (2) decide how they will be delivered; (3) determine the location; and (4) who will be invited to attend. If applicable, the CDFI Fund may also set aside funding for the following groups to attend in-person workshops: (1) Native Entities; (2) Contractor; and (3) CDFI Fund staff. The CDFI Fund will only plan to cover in-person attendance for individuals that it determines need to be present in order to ensure the effective administration of the Technical Assistance Workshops and will review, approve, and may deny funding for individuals that are deemed not to be essential to this task. Lastly, Contractor shall evaluate the effectiveness of the workshops by having participants complete a post-workshop evaluation.

c. Provide Up to 100 Hours of Individual Training: The Contractor shall have a formal mechanism at the conclusion of the Technical Assistance Workshops for participants to request individual follow-up training sessions where the Contractor shall provide technical advice and answer participant-specific questions on the topics covered in the Technical Assistance Workshops. The Contractor and CDFI Fund will determine how to allocate these hours based on demand. The number of hours allocated to each participant will inform the scope of the individual training provided. The CDFI Fund expects the content to vary based on the individual needs of the participant.

IV. Self-Assessment Guide Under this deliverable the Contractor shall use the Market Research and Survey results to develop a Self-Assessment Guide for Native Entities that seek to participate in the NMTC Program as an Allocatee, a QALICB sponsor, a leverage lender, or an unrelated CDE that receives QLICI(s) from an Allocatee. For each of these roles, the Self-Assessment Guide shall discuss, at minimum, the roles and responsibilities, staffing and financial commitments, and operational capacity, including applicable knowledge, experience and systems related to underwriting, compliance, asset management, and reporting, as applicable. The CDFI Fund expects to review and provide input on the Self-Assessment Guide(s). Additionally, the Self-Assessment Guide will be drafted according to the CDFI Fund’s Style Guide and 508-Compliant.

1.0 2.0 3.0

4.0 PERIOD OF PERFORMANCE

The Contractor shall commence work on this effort within five (5) business days of the contract award and key personnel being cleared by the Office of Security Programs. The duration of the Task Order is expected to be 12-months from date of award.

5.0 PLACE OF PERFORMANCE

The Contractor shall perform the majority of all duties off-site. The CDFI Fund may request, or the Contractor may identify the need for in person meetings. If the Contractor is asked to come on-site it shall be at the following location:

Community Development Financial Institutions Fund 1801 L Street NW, 6th Floor Washington DC 20036

Due to current restrictions related to the COVID-19 pandemic, the contractor shall honor the pandemic travel restrictions that are in place at the time of travel. The contractor shall perform required services remotely, and meetings with CDFI Fund personnel will be conducted through virtual forums. Current COVID-19 travel restrictions are established by each state, so these restrictions must be considered prior to any requests for travel. All travel must be pre-approved by the COR and shall be invoiced in accordance with Federal Travel Regulation should it occur.

6.0 ACQUISITION TYPE

This is a firm-fixed price contract with firm-fixed unit and labor rate prices. Under no circumstances is the Contractor authorized to exceed the price established under this contract nor will any invoice be approved for amounts above the firm fixed-price line-item budget, unless first approved by the Contracting Officer and such change is reflected in a contract modification.

7.0 GOVERNMENT OWNERSHIP OF WORK-PRODUCT AND INTELLECTUAL PROPERTY

The Contractor irrevocably assigns to the Government exclusive title to all data, files, analyses, work-product, processes, publications, and other output (collectively “output”) generated pursuant to this contract. To the extent that any such output or any copies thereof, are in the physical possession of the Contractor at the conclusion of the contract, the Contractor shall promptly (in five or fewer days from discovery) deliver the output to the COR.

8.0 CONTRACTOR MINIMUM QUALIFICATIONS

The CDFI Fund requires the Contractor(s), their key personnel, and any partner, to collectively demonstrate capacity in the following areas:

1. Experience managing Federal government contracts.

2. Experience conducting research and writing research reports related to community or economic development.

3. Experience analyzing large data sets, summarizing, and reporting on trends, findings, and results.

4. Experience developing survey instruments and conducting surveys.

5. Knowledge of and experience in the NMTC Program and industry.

6. Experience conducting training related to the NMTC Program, or community or economic development.

7. Experience working with and/or familiarity with Native American, Alaskan Native and Native Hawaiian populations and/or institutions that primarily serve Native American, Alaskan Native and Native Hawaiian populations, including Native CDFIs, CDEs, banks and thrifts.

8. Highly effective communication skills, including writing and compiling reports; and

9. Ability to effectively market training workshops.

All contractors shall be vetted and approved by OSP prior to beginning work on any portion of this contract.

9.0 CONTRACTOR PERSONNEL REPLACEMENT PROCESS

Key personnel may, with the consent of the contracting parties, be amended from time to time during the course of the contract to add or remove key personnel. A formal modification is only required when the key personnel are specifically named in the contract. This process only applies to the extent that the contract does not otherwise specify notice or personnel replacement obligations.

9.1. Government Request

The Government may require replacement of key personnel in the instance of non-performance, misconduct, or alleged misconduct whose continued use under a contract is contrary to the best interests of the Government. Circumstances that support a request for replacement include but are not limited to performance that is inconsistent with the contract performance work statement (PWS), terms and conditions, or violations of Federal laws, regulations, or agency conduct standards. The Contracting Officer’s Representative (COR) will give written notice to the Contractor of the need for substitution, including the circumstances surrounding the request for replacement. In accordance with FAR Part 1.602-2(b), the Contracting Officer (CO) will ensure the Contractor receives impartial, fair, and equitable treatment; however, the CO is not required to investigate or validate allegations or wait until a final resolution of the circumstances surrounding the request for replacement before requiring substitution of key personnel.

Within twenty-four (24) hours of receiving notice, the Contractor shall respond to the Government’s request to replace key personnel and provide key personnel replacement information (i.e., resume, Experience Survey, COI, NDA) to the COR(s). The resume(s) shall demonstrate that the qualifications of proposed replacement key personnel meet the qualifications stated in the PWS. The COR will notify the Contractor, in writing, within forty-eight (48) hours of receiving key personnel replacement information (i.e., resume, Experience Survey, COI, NDA) if the Contractor provided replacement personnel is acceptable. The Government reserves the right to disapprove the proposed substitute(s) and negotiate with the Contractor for other key personnel replacement(s). Any Contractor replacement of key personnel must be done in consultation with the COR. The process for replacing key personnel as described above does not suspend the Contractor’s obligation to continue performance under the contract and executed Task Order.

9.2. Contractor Request

If the Contractor must substitute key personnel, the Contractor shall provide written notice to the COR and the CO two (2) calendar weeks before the proposed replacement date, whenever possible. At a minimum, the Contractor shall provide the Government with notice seventy-two (72) hours before replacement. The only exception to the seventy-two (72) hour notice is death, incapacitation, abrupt termination, or resignation from employment of key personnel where the Contractor’s notice was less than seventy-two (72) hours. If the deadline for providing notice falls on Friday after 5:00 pm, a weekend, or on a Federal Holiday, the Contractor shall provide notice the next business day if more than seventy-two (72) hours. The notice shall state the circumstances necessitating the proposed substitution of the key personnel and shall provide resume(s) of proposed replacement key personnel for review and consultation. The Contractor shall demonstrate that the qualifications of the proposed substitute(s) meet the qualifications stated in the PWS. The Government reserves the right to disapprove the proposed substitute(s) and negotiate with the Contractor for other key personnel replacement(s). Assignment of key personnel must be done in consultation with the COR.

Any replacements of identified Contractor personnel in the contract and executed Task Order or that are related to unsatisfactory performance shall be processed through the Contracting Officer.

10.0 EXISTING FURNISHED INFORMATION AND TOOLS

The CDFI Fund will provide the Contractor with the following, upon execution of the contract:

a. New Markets Tax Credit Investment Data

b. Existing CDE Training Materials

c. CDFI Fund Style Guide

11.0 SENSITIVITY TO CONFIDENTIAL INFORMATION

Contractor shall demonstrate experience in managing confidential information, such as applicants’ financial records and proprietary business models. Contractor shall be required to detail its procedures for maintaining the confidentiality of information. Contractor shall also be required to maintain confidentiality regarding the nature and extent of services rendered under this Contract. Each Contractor employee or subcontractor performing work under this Contract shall sign and submit a Non-Disclosure Agreement (NDA). The NDA is signed and submitted electronically through AMIS.

12.0 OTHER REQUIREMENTS

11.1 NON-PERSONAL SERVICE STATEMENT

Contractor employees performing services under this order shall be controlled, directed and supervised at all times by management personnel of the Contractor. The Contractor’s management personnel shall ensure that employees properly comply with the performance standards outlined in the Quality Assurance Surveillance Plan (QASP) provided in the applicable Task Order. Contractor employees shall perform independent of and without the supervision of any Government official. Actions of Contractor employees may not be interpreted or implemented in any manner that results in any Contractor employee creating or modifying Federal policy, obligating the appropriated funds of the U.S. Government, overseeing the work of Federal employees, providing direct personal services to any Federal employee or otherwise violating the prohibitions set forth in Parts 7.5 and 37.1 of the Federal Acquisition Regulation (FAR).

13.0 QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

The Government will evaluate the Contractors performance in accordance with this QASP identified herein. The purpose of the QASP is to ensure reliable, uninterrupted services are provided in accordance with the contract. This plan will also ensure acceptable performance and assist in avoiding unnecessary mistakes and/or delays.

Performance Categories & Standards. The COR will summarize and document the Contractor's service and delivery performance utilizing the following categories and standards:

a. Completeness – All Tasks and Deliverables were 100% accurately completed within the expectation of the Government by the Contractor as identified in the contract and subsequent Task Orders

b. Effectiveness – All Tasks and Deliverables provided by the Contractor were 100% effective toward contributing to the overall success identified in the Scope of Work identified in the contract and subsequent Task Orders.

c. Timeliness – All Tasks and Deliverables were completed as identified in the contract and subsequent Task Orders with specific attention to:

i. Market Research Report

ii. Summary Analysis of NMTC Investment Data, Case Study Selection & Survey of NMTC Investment Participants

iii. NMTC Technical Workshops

iv. Self-Assessment Guide

v. All other tasks and deliverables (i.e. weekly reports) in support of executing a Task Order successfully shall be timely 100% of the time

d. Communication - Communication with the Government was 100% professional.

e. Information Control - Confidentiality of all information was maintained 100% of the time during the life of the contract.

14.0 COMPLIANCE WITH GOVERNMENT LAWS, RULES, AND REGULATIONS

While the Contractor’s personnel are at the Government facility, the Contractor is responsible for compliance with all laws, rules, and regulations governing conduct with respect to health and safety – not only as they relate to its employees and agents, but also to other personnel who are government employees or agents of the government and to property at the site regardless of ownership. While on government premises and in possession of government property, the Contractor is responsible for such property and any damages thereto.

15.0 CONFLICTS OF INTEREST

The Contractor shall comply with FAR 52.203-16, Preventing Personal Conflicts of Interest. Further, the Contractor shall not advise CDFI Fund to take any action that will benefit, or appear to benefit, the Contractor beyond the scope of this contract. The Contractor shall inform CDFI Fund if the appearance of such a conflict exists. For example, the Contractor shall not influence CDFI Fund to enter into financial arrangements with entities that the Contractor expects to have future business dealings with, unless CDFI Fund has been advised of the prospect of that future business.

16.0 CONTRACTING OFFICER AUTHORITY

In no event shall any understanding or agreement between the Contractor and any Government employee other than the Contracting Officer on any order modifications, change orders, letter or verbal direction to the Contractor be effective or binding upon the Government. All such actions shall be formalized by the proper contractual document executed by the appointed Contracting Officer. The Contractor is hereby put on notice in the event a Government employee other than the Contracting Officer directs a change in the work to be performed or increases the scope of work to be performed, as described in DTAR 1052.201-70(c)(1-6); it is the Contractor’s responsibility to make inquiry to the Contracting Officer no later than the beginning of the next Government work day before making the deviation. Payments will not be made without being authorized by the appointed Contracting Officer with the legal authority to bind the Government.

17.0 FEDERAL HOLIDAYS

The following federal holidays are observed by the CDFI Fund:

Independence Day Christmas Day Holidays that fall on Saturday are observed on the previous Friday. Holidays that fall on Sunday are observed on the following Monday. Holidays shall also include any additional day(s) granted by Executive Order, which can be viewed on the Office of Personnel website at https://www.opm.gov/policy-data-oversight/snow-dismissal-procedures/.

18.0 QUALITY CONTROL PLAN (QCP)

The Contractor shall establish a complete internal QCP for this Contract that includes methods for monitoring, identifying, and correcting deficiencies for each performance category. The QCP shall be maintained by the Contractor for them to ensure the requirements of the Contract are met. The Contractor shall report any performance issues that are found immediately to the COR for discussing remediation options.