Audit Guide RFP Final.pdf

Request for Proposal For an

Audit Guide Revision

May 26, 2020

Office of Inspector General Legal Services Corporation

3333 K St, NW Washington, DC 20007 https://oig.lsc.gov/

Inquiries should be directed to:

Alison Ottenbreit Operations Specialist aottenbreit@oig.lsc.gov https://oig.lsc.gov/ mailto:aottenbreit@oig.lsc.gov

T A B L E O F C O N T E N T S

I. PURPOSE

II. BACKGROUND

III. STATEMENT OF WORK

IV. PROJECT MANAGEMENT

V. PROPOSAL INSTRUCTIONS

VI. PROPOSAL DELIVERY

X. PROPOSAL EVALUATION

VII. PLACE OF PERFORMANCE

IX. PAYMENT

XI. CONFIDENTIALITY

XII. LSC OIG’s RIGHTS

XIII. FREEDOM OF INFORMATION ACT

XIV. CERTIFICATIONS

I. PURPOSE

The purpose of this Request for Proposal (RFP), issued by the Office of the Inspector General (OIG) of the Legal Services Corporation (LSC), is to select an organization to revise the OIG’s Audit Guide to incorporate changes to public laws, LSC regulations, auditing standards, and other guidelines as appropriate since its last publication. This update would not include Appendix A (Compliance Supplement for Audits of LSC Recipients) but would include all other sections of the Audit Guide.

Our overall goal is to ensure that the revised Audit Guide is updated accurately and in line with all current appropriations law, regulations, standards, guidance, federal grant guidelines, and federal OIG audit requirements, along with any other applicable documents and information.

II. BACKGROUND

The LSC OIG is responsible for establishing and overseeing audits of LSC grantees pursuant to the Inspector General Act of 1978, as amended. Beginning in 1996, LSC’s annual appropriations acts have included the following audit related requirements: 1) annual audits of grantees are conducted by independent public accountants (IPAs or auditors) in accordance with government auditing standards,

2) the audits include a report on financial statements, internal controls, and compliance with laws and regulation, 3) the OIG has specific responsibility for oversight of grantee audits and the IPAs conducting them.

The Audit Guide is a key element in fulfilling the OIG’s role in establishing criteria and overseeing grantee audits. Specifically, the Audit Guide provides a uniform approach for audits of LSC grantees and describes recipients' responsibilities with respect to such audits. The annual audits of all grant recipients are to be performed in accordance with this Audit Guide, among other criteria, and the Audit Guide gives auditors guidance in planning and performing these audits to accomplish all audit objectives. The OIG believes updating the Audit Guide is essential to fulfilling its responsibility for oversight.

LSC is not a federal agency. However, the OIG has elected to adopt Code of Federal Regulations, Title 2, Subtitle A, Chapter II, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) for audits of LSC grantees, subject to modification in accordance with OIG guidance. The Audit Guide also relies on appropriations law, and LSC-specific regulations.

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III. STATEMENT OF WORK

The selected offeror will revise the OIG’s Audit Guide (excluding Appendix A). The offeror will undertake all activities required to update the Audit Guide. Activities should include conducting necessary background research to ensure all relevant appropriations law, other laws, regulations, standards, guidance, federal grant guidelines, and federal OIG audit requirements are appropriately incorporated into the revised Audit Guide. The offeror should identify all applicable documents for review and provide the list to the OIG to confirm inclusion of all relevant documents.

Additionally, the offeror should conduct interviews with all relevant stakeholders to ensure comprehensive understanding of LSC, the OIG, and the grantee financial statement audit process and OIG oversight of the process. Interviews may include LSC staff, OIG staff, LSC grantees, IPAs hired to conduct grantee audits, and other audit contractors who work with the OIG. The offeror should also gain a comprehensive understanding of the OIG’s mission, vision, and key audit processes and deliverables to know how the Audit Guide (excluding Appendix A) impacts each of these components. The offeror should learn the goals for the Audit Guide, and how LSC, grantees, and IPAs use the guide in their processes. Additionally, the offeror should identify areas of the current Audit Guide where compliance is a challenge, and recommend methods to improve the requirements, and training to increase the understanding of those requirements.

Once all information collection is complete, the offeror should update the Audit Guide and provide a draft to the OIG for approval and feedback. The draft should include all revisions, including any restructuring, additions or deletions the offeror deems appropriate. Once an approved draft is complete, the offeror should submit a Federal Register Notice to obtain stakeholder feedback and recommendations on Draft Audit Guide. Once the submission period is closed, the offeror should revise the Draft Audit Guide based on feedback and submit a revised Audit Guide to the OIG for approval. The OIG will provide final edits and feedback. Once complete, the offeror will submit a finalized Audit Guide for OIG approval.

In addition to the Final Audit Guide, the offeror should provide recommendations to assist with the roll out of the new Audit Guide. Recommendations may include training, job aids, communications with LSC, grantees, the LSC board, and other stakeholders, press releases, website or social media updates, and any other communications the offeror deems relevant to a successful roll out of the revised Audit Guide. The OIG will approve all roll out plans, and then the offeror will prepare materials and assist with the roll out as appropriate. The offeror should ensure that both LSC and its grantees understand the changes to the Audit Guide. Based on interviews and information collected during the course of this project, the offeror should focus any trainings or job aids on areas that are difficult for grantees and IPAs to implement.

IV. PROJECT MANAGEMENT

The selected offeror will meet for a kickoff meeting with the OIG within 10 business days of contract award at the OIG offices (3333 K Street, NW, Washington, DC 20007) or virtually as determined by the OIG. Prior to the meeting, the OIG will provide a Memorandum of Understanding (MOU) that all parties will sign in advance of the kickoff meeting. At the meeting, the offeror will introduce key staff and establish communication with the OIG. The purpose of this meeting will be to assure a common understanding of contract requirements and to begin project activities.

At this meeting the OIG will provide key points of contact for this project, and an initial list of documents the offeror should review and a tentative list of interviewees.

Within 30 days of contract award, the offeror should provide a work plan detailing the project schedule. The schedule should include all major milestones and deliverables, including a list of documents to be reviewed, the number of interviewees and a working list of specific individuals to interview, and a communications plan for rolling out the Audit Guide.

The work plan should also include all staff assigned to work on this project and a plan for communicating with the OIG, to include monthly status updates to the OIG on contract activities, regular check-in with the OIG, and ongoing communications with the OIG to address any concerns or questions.

V. PROPOSAL INSTRUCTIONS

Proposals shall be submitted on the most favorable terms, from both technical and price standpoints, that the offeror can propose. The offeror’s proposal should be no more than 10 pages long and should include, at a minimum, the following:

A. Technical Qualifications:

1. Methodology and Project Plan: The offeror shall describe in detail its understanding of the work to be performed and how it will conduct all activities necessary to update the Audit Guide.

2. Prior Experience: The offeror should explain its prior experience updating auditing documents and processes. The offeror should also describe any experience with federal grantees, federal grantors, LSC, grant audits, the Uniform Guide, non-profit audits, Federal Register notices, and any other relevant experience that will demonstrate its ability to undertake this work.

3. References: The offeror shall provide the current name, address, contact information, and a project description for at least three client references with whom the offeror has worked in the past three years.

Preferably, the staff proposed for this project will have worked with these references, and the work completed will be similar to the work described in this RFP.

4. Staff Qualifications: The offeror shall describe the qualifications, certifications, and relevant experience of staff to be assigned to this contract. The offeror shall submit resumes (as appendices) of only staff who will work on this project. Resumes should include descriptions of education, certifications, position in the firm, years with the firm, and years and types of experience. The proposal shall demonstrate that proposed staff have the knowledge and prior experience with federal grantees, federal grantors, LSC, grant audits, the Uniform Guide, non-profit audits, Federal Register notices, and any other relevant experience.

B. Price:

The price proposal shall be submitted separately from the technical proposal. The Offeror will provide a uniform fixed price for the revision of the Audit Guide and roll out. The price proposal shall indicate, at a minimum, the estimated number of hours by staff level, hourly rates by professional classification, total cost by staff level, and total costs for the project. Any anticipated out-of-pocket expenses should also be indicated. The offeror is expected to provide a best estimate based on the information provided. The offeror will also identify any conditions that might increase or reduce the cost of the proposed services.

C. Interview:

At the OIG’s discretion the Offerors’ Partner/Principal and Manager/ Supervisor on the proposal will be available for an introductory presentation and interview during the procurement evaluation.

VI. PROPOSAL DELIVERY

A. Submission: Proposals must be received no later than 5 PM Eastern Time June 26, 2020. The OIG reserves the right to exclude late proposals from consideration. Each Offeror will submit an electronic copy of their proposal to Alison Ottenbreit at aottenbreit@oig.lsc.gov.

B. Inquiries: Inquiries concerning this RFP should be directed to Alison Ottenbreit (telephone: 202-295-1639; email: aottenbreit@oig.lsc.gov). As it deems appropriate, the OIG will answer questions related to the RFP by email and will copy all prospective offerors. Questions should be submitted by June 5, 2020 at 4:30 PM Eastern Time.

C. Conditions of Proposal: All costs incurred in the preparation of a proposal responding to this RFP will be the responsibility of the Offeror and will not be reimbursed by the OIG.

D. Right to Reject: The OIG reserves the right to reject any and all proposals received in response to this RFP.

E. Notification of Award: Upon conclusion of final contract negotiations with the selected offeror, all offerors will be notified electronically.

mailto:aottenbreit@oig.lsc.gov

X. PROPOSAL EVALUATION

A. Non-responsive Proposals: Proposals may be judged non-responsive and removed from further consideration if any of the following occur:

1. The proposal is not received timely;

2. The proposal does not follow the specified format;

3. The proposal does not include the Certifications; or

4. The proposal is not adequate for the reviewers to form a judgment that the proposed activities/price are sufficient to complete the work.

B. Proposal Evaluation: The OIG will make an award to the offeror whose proposal conforms to the solicitation and provides the best value – the most advantageous balance of price and technical qualifications, including past performance. In addition, evaluation of each proposal will include the following criteria, which may not be weighted equally.

1. Technical Qualifications:

a. Project Plan and Approach: The OIG will assess the offeror’s understanding of the work to be performed as demonstrated by the description of the approach to complete the Audit Guide revision.

The OIG will also evaluate that the offeror provides a complete work plan, appropriate staffing; and realistic schedule estimates.

b. Past Performance: The OIG will assess the offerors prior experience conducting similar projects and experience working with federal grantors, federal grantees, non-profits, LSC, and the OIG. The OIG will also take experience with the Uniform Guide into consideration.

c. Staff: The OIG will evaluate the qualifications of the staff to be assigned to this contract based on resumes submitted. Evaluation criteria will include education, position in the firm, years and types of experience, continuing professional education, certifications, and applicability of prior project work. Additionally, the OIG will assess the mix of staff assigned to the contract.

d. Interview: If an interview is conducted, the OIG will assess the offerors’ senior staff introductory presentation and interview.

2. Price Evaluation (to be separately submitted): The OIG will evaluate the total fixed price proposed for the overall project, the hourly rates for each professional classification, and the number of hours estimated to complete the project.

VII. PLACE OF PERFORMANCE

The majority of the work will be conducted at the offeror’s offices. Some meetings or in person interviews may occur at LSC offices (3333 K St., NW, Washington, DC 20007).

IX. PAYMENT

Payments in the percentages specified below will be made at the following project milestones to the extent that the work performed is satisfactory to the OIG:

A. 25 percent at the start of fieldwork;

B. 65 percent upon OIG’s acceptance of the Final Audit Guide; and, C. 10 percent upon completion of all roll out communications and training.

In the event the OIG rejects a report it will state the reason(s) for the rejection in a written notification. The right to reject a report shall extend throughout the term of the contract and for ninety (90) days after the Contractor submits the final invoice for payment.

At the completion of each of the above-listed project milestones, the Contractor may submit an invoice to the OIG for payment.

XI. CONFIDENTIALITY

As part of the ensuing contract with the OIG, a successful offeror will be required to enter into a confidentiality clause, requiring information related to this audit to be kept in strict confidence, other than the reports submitted to and approved by the OIG. Any such agreement will not limit certain lawful reporting of fraud, waste or abuse.

XII. LSC OIG’s RIGHTS

Notwithstanding any other statement in this RFP or otherwise, the LSC OIG reserves the right to:

A. Accept or reject any or all proposals, or any part thereof; Waive any informalities or technicalities contained in any proposal received;

B. Conduct discussions with respondents and accept revisions of proposals after the closing date;

C. Make an award based upon various selection criteria;

D. Request clarification from any respondents on any or all aspects of its proposals;

E. Cancel or re-issue this RFP at any time;

F. Retain all proposals submitted in response to this RFP; and, G. Invite some, all, or none of the respondents for interviews, demonstrations, presentations and further discussion.

XIII. FREEDOM OF INFORMATION ACT

The Freedom of Information Act (FOIA) and associated LSC regulations may require the LSC OIG to disclose certain documents to the public, including portions of your proposal. Generally, we will not release any documents that would cause offerors competitive harm. You are encouraged, however, to label any confidential information contained in your proposal to facilitate our ability to withhold it from disclosure.

VIII. CONTRACT NEGOTIATION

The selected Offeror will be invited to enter contract negotiations with the OIG.

XIV. CERTIFICATIONS

A. The individual signing certifies that he/she is authorized to contract on behalf of the Offeror and to make these certifications.

B. The individual signing certifies that the Offeror is a properly licensed Certified Public Accountant.

C. The individual signing certifies that the prices quoted in this proposal have been arrived at independently, without consultation, communication, or agreement for the purposes of restricting competition.

D. The individual signing certifies that the firm complies with the GAO requirement of an external quality control review at least once every three years, where applicable.

E. The individual signing certifies that the Offeror, including any individuals to be assigned to the audit, does not have a record of substandard audit work and has not been debarred or suspended from doing work with any Federal, state or local government. (If the Offeror or any individual assigned to the audit has been found in violation of any state or AICPA professional standards, this information must be disclosed).

F. The individual signing certifies on behalf of the Offeror that the Offeror will not subcontract any portion of the work.

G. The individual signing certifies that the Offeror carries professional malpractice insurance.

H. The individual signing certifies that the Offeror is an Equal Opportunity Employer and does not discriminate in hiring, employment, or activities because of race, color, religion, sex, age, national origin, disability, or any other basis prohibited by law.

Dated: ________________________________

Offeror's Firm Name: ____________________________________________

Signature of Offeror's Representative: ___________________________________

Printed Name & Title of Individual Signing: _____________________________________