B05 Attachment 3 PWS (Order).pdf

Performance Work Statement Office of Financial Analysis and Management

Modeling Services and Budget Preparation

1.0 Purpose

The U.S. Small Business Administration (SBA), Office of Financial Analysis and Management (OFAM) has a need for modeling services and budget preparation technical assistance.

2.0 Background

The models forecast the cash flows associated with SBA's direct loan and loan guarantee programs. Forecasts of loan repayments, prepayments, defaults, fees, recoveries, expenses, and related cash flows are developed based on actual historical loan performance data. When new programs are proposed by the SBA’s senior management, the Office of Management and Budget (OMB) or via congressional requests, the historical data of similar existing loan programs at the SBA or another Federal Agency are appropriately adjusted and used as proxy data for the proposed program. SBA's models are built using a variety of software programs including SAS and Excel.

3.0 Objectives

Given the constant evolution of best practices in the credit modeling environment, the Contractor shall ensure that it provides to SBA (services and models) that are current, relevant, and reflective of industry best practices, and in compliance with the Federal Credit Reform Act. The Contractor shall also be prepared to perform informational training sessions of Federal Credit Reform modeling to SBA employees, if required.

4.0 Non-personal Services Contract

(a) The Government and the Contractor understand and agree that the services to be delivered under this contract by the Contractor to the Government are non-personal services as defined in FAR 37, Service Contracting, and the parties recognize and agree that no employer-employee relationship exists or will exist under the contract between the Government and the Contractor’s personnel. It is, therefore, in the best interest of the Government to afford both parties an understanding of their respective obligations.

(b) Contractor personnel under this contract shall not:

(1) Be placed in a position where they are under relatively continuous supervision and control of a

Government employee.

(2) Be placed in a position of command, supervision, administration, or control over Government personnel or over personnel of other Contractors performing under other SBA contracts.

(c) The services to be performed under this contact do no require the Contractor or the Contractor’s personnel to exercise personal judgement and discretion on behalf of the Contractor.

(d) Rules, regulations, directives, and requirements that are issued by the SBA under its responsibility for good order, administration, and security are applicable to all personnel who enter the Government installation and facilities, who are provided access to Government systems, or who travel on Government transportation. This is not to be construed or interpreted to establish any degree of Government control that is inconsistent with a non-personal services contract.

(e) Both parties are responsible for monitoring contract activities for indication of improper employee-employer relationships during performance. In the event a situation or occurrence takes place inconsistent with this contract language, the following applies:

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(1) The Contractor shall notify the Contracting Officer in writing within five (5) business days from the date of any situation or occurrence where the Contractor considers specific contract activity to be inconsistent with the intent of this contract language. The notice must include the date, nature and circumstance of the situation or occurrence, the name, function, and activity of each Government employee or Contractor employee involved or knowledgeable about the situation or occurrence, provide any documents or the substance of any oral communications related to the activity, and an estimated date by which the Government is recommended to respond to the notice in order to minimize cost, delay, or disruption of performance.

(2) The Contracting Officer will review the information provided by the Contractor, obtain additional information (if needed), and respond in writing as soon as practicable after receipt of the notification from the Contractor. The Contracting Officer’s response will provide a decision on whether the Contracting Officer determines the situation or occurrence to be inconsistent with the intent of this contract language and, if deemed necessary, will specify any corrective action(s) to be taken in order to resolve the issue.

5.0 Non-inherently Government Functions

The Contractor shall not perform any inherently governmental functions as defined in FAR 7.503. At no time shall the contractor or its personnel represent themselves or conduct themselves as an “employee” of the SBA. At no time shall the contractor or its personnel:

(a) Direct and Control Federal Employees;

(b) Determine Agency Policy;

(c) Perform resource allocation or program management duties that must be performed by the

Government;

(d) Approve any contract documents or provide any contract administration for other SBA contracts;

The Contractor and its personnel may perform functions that are closely associated with Inherently Governmental Functions provided they do not impinge on Federal Official’s performance of inherently governmental functions. The performance of any closely associated functions must be carefully monitored so that they do not cross into inherently governmental functions over time. This oversight will be provided by the Contracting Officer’s Representative.

6.0 Description of Services

The Contractor shall provide services in accordance with the contract Task 2 – Modeling Services and Budget Preparation Technical Assistance and Additional Program Analysis. These services include, but are not limited to the following:

Maintaining existing modeling processes.

Development of models to project program requirements.

Data collection, and performance and/or benefit analyses.

Automating the processing of current models.

Maintaining and enhancing 10-year plans for loan programs and automating the updating of the plans.

Processing data and updating tables for loan performance web sites.

Design and development of subsidy estimate and re-estimate models as tasked.

Sensitivity analysis and testing of the models.

Documentation of approaches and findings used in the modeling efforts.

Designing the automation of projected versus actual performance analyses.

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Automating other inputs and outputs, including use of loan level data, used in the modeling process;

and document and/or review of any of the above activities.

Below are the Loan Programs to be serviced:

SBIC Debentures Microloans

SBIC PS

Small Programs Credit Risk Tool

7.0 Task Order Administration

7.1 Contracting Officer (CO) / Government Contract Administration

The CO and Government CA for this requirement will be:

Rachelle Colon-Serna U.S. Small Business Administration Office of the Chief Financial Officer, Acquisitions Division 721 19th Street Denver, CO 80202 Phone: (303) 844-4752 Email: Rachelle.Colon-Serna@sba.gov

7.2 Contracting Officer’s Representative

The COR will receive, for the Government, all work called for by the Task Order and will represent the CO in the technical phases of the work. The COR will provide no supervisory or instructional assistance to contractor personnel.

The COR is not authorized to change any of the terms and conditions, scope, schedule, and price of the Task Order. These types of changes shall be made by the CO through a formal modification to the Task Order.

The COR for this requirement will be [to be completed at time of award]:

[POC Name, Title Company Name Address 1 Address 2 City, State Zip Code Phone: (xxx) xxx-xxxx Email: email address]

8.0 Quality Control Plan (QCP)

The Contractor shall develop a Task Order QCP and maintain an effective quality control program to ensure services are performed in accordance with the IDIQ contract and this PWS. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-recurrence of defective services. The

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Contractor's QCP is the means by which he assures himself that his work complies with the requirement of the contract and Task Order.

The finalized QCP will be accepted by the Government at the time of the award of the Task Order. The Contracting Officer may notify the Contractor of required modifications to the plan during the period of performance. The Contractor then shall coordinate suggested modifications and obtain acceptance of the plan by the Contracting Officer. Any modifications to the program during the period of performance shall be provided to the Contracting Officer for review no later than 10 working days prior to effective date of the change.

The QCP shall be subject to the Government's review and approval. The Government may find the QCP "unacceptable" whenever the Contractor's procedures do not accomplish quality control objective(s). The Contractor shall revise the QCP within 10 working days from receipt of notice that QCP is found "unacceptable."

9.0 Quality Assurance Surveillance Plan (QASP)

The Government shall monitor the Contractor’s performance under this Task Order in accordance with the QASP incorporated at Attachment B of the Indefinite Delivery, Indefinite Quantity contract.

10.0 Deliverables

The following contract deliverable requirements (CDR) are applicable to this Task Order.

CDR

CDR Description

IDIQ

WBS

FREQUENCY

DELIVER

TO

1 Planned Enhancements for Phase I 6.2.2.2 Beginning of February each year

COR

Reporting of March 31 Data for Accounting Review

6.2.2.3 Prior to April 25th each year

COR & SBA

Accountants

Preliminary Phase I IV&V Model Package

6.2.2.4 Detailed on the Task Order COR

Responses to Questions from IV&V Review

6.2.2.5 Detailed on the Task Order COR

5 Final Phase I Re-estimate Model Package 6.2.2.6 Submission range from June 1st thru June 30th each year

COR

Prepare Preliminary Formulation Estimates

6.2.2.7 July 10th each year COR

Phase II - Responses to Auditor Questions

6.2.3.1 Two weeks after receipt of questions.

COR and Auditors

Reporting of June 30 Data for Accounting Review

6.2.3.2 Prior to August 20th each year

COR & SBA

Accountants

Preliminary Phase II IV&V Model Package (if required).

6.2.3.3 First week in September each year

COR

Responses to Questions from IV&V Review (if required).

6.2.3.4 5 business days from receipt of question

COR

Financing Account Interest (FAI) Calculations

6.2.3.5 3 business days after the September release of CSC2 each year

COR

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CDR

CDR Description WBS FREQUENCY

DELIVER

TO

Final Phase II Financial Statement Re-estimate Model Package

6.2.3.6 2 business days prior to final review; Third week of September each year

COR

13 Written Support for Re-estimates 6.2.3.7 Second week of October each year

COR

Final Phase III President’s Budget Re-estimate Model Package

6.2.4.1 One week prior to required submission to OMB

COR

Report to OCA, Investment Division, or ODA discussing preliminary Budgetary Assumptions

6.2.5.1 2 business days prior to meeting with program office; typically late October each year

COR

Preliminary Phase IV Formulation Model Package for IV&V (if required)

6.2.5.2 One week prior to second week in November each year

COR

Responses to Question from IV&V Review (if required).

6.2.5.3 5 business days from receipt of questions

COR

Final Phase IV Formulation Model Subsidy Estimates

6.2.5.4 One week prior to the 1st week in December each year

COR

Reporting of Liability for Loan Guarantee and Recoveries on Assets in Inventory Projections for Financial Statements

6.2.6.1 Upon delivery of the last final Phase II model

COR

President’s Budget and Financial Statement Re-estimate Tables.

6.2.6.2 Upon delivery of the last final Phase II and Phase III models

COR

21 Financing Account Interest Tables 6.2.6.3 Third week of September each year

COR

22 Analysis for 10-year Plan 6.2.7.1 Middle of November each year COR

23 Budget Briefing Book 6.2.7.2 Middle of May each year COR

24 Policies and Procedures Document 6.2.7.3 Third week of May each year COR

25 Website Reports 6.2.7.4 17th or 18th after end of each quarter quarterly

COR

26 Monthly Data Creation 6.2.7.5 5th business day after receiving data; Monthly

COR

27 1502 Analysis. 6.2.7.6 Third week of July each year and first week of November each year

COR

28 LIP Impact for 7(a) Loans 6.2.7.7 Second week of October each year

COR

29 7(a), 504, ARC loan increases 6.2.7.8 Second week of October each year

COR

30 Credit Risk Tool 6.2.7.9 Annually COR

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11.0 Payment Schedule

Payments will be processed in accordance with the following schedule:

[To be completed at time of award and in accordance with the Contractor’s proposal.]

All invoices must adhere to the invoice instructions included in the Indefinite Delivery Indefinite Quantity contract.

12.0 Period of Performance

The anticipated period of performance for this Task Order is as follows:

Base: 07/10/2020 – 07/09/2021 Option 1: 07/10/2021 – 07/09/2022 Option 2: 07/10/2022 – 07/09/2023 Option 3: 07/10/2023 – 07/09/2024 Option 4: 07/10/2024 – 07/09/2025