RFI_to_Acquistion_1.8.2019.pdf

REQUEST FOR INFORMATION (RFI)

OVERSEAS MILITARY BANKING PROGRAM

8 January 2019

A. BACKGROUND:

The Department of Defense (DoD) Overseas Military Banking Program (OMBP) provides banking services overseas to authorized DoD customers and supports official DoD operations through 64 banking centers (named Community Bank) and 279 ATMs in 11 countries. There is a “home office” in the United States and two District Offices with one in Germany and one in Korea. Over time, this footprint has changed based on DoD needs and may continue to change in the future.

Community Bank is a Department of Defense (DoD) owned bank provided by the Military Services to support authorized customer and official DoD banking needs. The bank is operated through a contract between DoD and one contractor, an insured and licensed commercial financial institution. Banking operations are provided through a five year cost plus fixed fee contract with five one-year options. The final one-year option of the current contract will end in March of 2023. The contractor provides its own employees for all Community Bank operations worldwide, to include the home office in the United Sates as well as all branches and district offices overseas.

The Defense Finance and Accounting Service (DFAS), in coordination with the Military Services, is responsible for the solicitation, award, and oversight of the OMBP. The contractor executes banking operations in accordance with the DoD contract terms and conditions and takes additional direction from the DFAS Program Management Office through the contracting officer’s representative and the DFAS contracting officer.

B. RFI OBJECTIVES:

DFAS is reviewing the current DoD OMBP business model for delivery of commercial banking products and services. The current business model has existed in similar form for more than 30 years. The Government is receptive to adopting a business model that may more reflect the current climate of the U.S. banking industry. Additionally, DFAS is also gathering information from the current marketplace and seeking to learn from the financial industry what products, services, and technologies are currently available, are being built, or are being studied.

Information gathered may be included in a future Request for Proposal (RFP) for banking products and services. DFAS asks that vendors provide responses to the questions in Section C and encourages respondents to be creative in addressing questions.

All responses to this RFI and content within will remain confidential.

C. INFORMATION REQUESTED

Information is hereby requested to answer the questions described in this section, as they pertain to the attached Overseas Military Banking Program Products, Services, and Technology Scope.

1. What changes, if any, would you make to the current Community Bank business model and what costs would be involved?

2. What recommendations would you make to alter the current operations, products, services, technologies, or delivery methods and what costs would be involved?

3. Refer to section J of the attachment to this RFI, regarding OMBP systems. As an alternative, how could the OMBP leverage a financial institution’s banking systems in lieu of maintaining a separate OMBP systems environment, while maintaining separate accounting for OMBP customers and OMBP financial data and reports? Explain transition activity, impact to the OMBP, cost impact, advantages, limitations, and other factors.

4. If your organization were undertaking the changes you recommend in questions 1 through 3 above, how long do you forecast it might take to implement the changes?

Describe the process you would follow.

5. Do you recommend term or type changes to the current a five year cost plus fixed fee with five one-year options. If so, why?

D. RESPONSES:

Responses to this RFI should not exceed 50 pages (one-sided, single spaced, Times New Roman, font 12), should be e-mailed as either a pdf or MS Word attachment, and must include a cover letter on institution letterhead including the institution name, point of contact, address, phone number, fax number, DUNS number, and CAGE Code. Please submit your response no later than 5:00 pm on 29 January 2019, to nicholas.j.engel2.civ@mail.mil and mark.b.barta.civ@mail.mil.

The intent of this RFI is to solicit feedback on formulating the requirement and Request for Proposal (RFP) for the follow-on contract. It is requested that all interested parties respond to the questions provided above in section C. You may also list any other questions/issues or provide any other comments you may have regarding this RFI. However, the Government may or may not provide response. If so, any responses will be provided via an RFI amendment for all interested parties to see. Answers may be provided only for clarification purposes related to questions of an administrative nature, or to clarify or expand on the current OMBP environment, if deemed necessary. In no instance will the Government respond to any questions that may reveal any interested party’s ideas, concepts, or proposed changes.

E. DISCLAIMER:

In accordance with FAR 15.201(e), responses to this notice are not offers and cannot be accepted by the government to form a binding contract. This RFI is issued solely for information and planning purposes and does not constitute a solicitation. Neither unsolicited proposals nor any other kind of offers will be considered in response to this RFI. Responses to this notice are not offers and will not be accepted by the government to form a binding contract. Responders are solely responsible for all expenses associated with responding to this RFI. All information received in response to this RFI that is marked proprietary will be handled accordingly.

Responses to the RFI will not be returned. At this time, questions concerning the composition and requirements for future RFPs will not be entertained.

Attachment:

As stated

Attachment to Request for Information Overseas Military Banking Program

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REQUEST FOR INFORMATION

CURRENT OVERSEAS MILITARY BANKING PROGRAM

PRODUCTS, SERVICES, AND TECHNOLOGY SCOPE

A. CONTRACTOR OBJECTIVES:

The DoD contractor provides banking products and services to authorized individuals stationed internationally. Overall DOD goals for contractor operations of the OMBP include:

1. Maximizing the use of automation and technology in bank operations when cost effective.

2. Enhancing operational and management efficiencies and expanding revenue-producing products and services.

3. Identifying and allocating costs incurred to the banking products and services provided

(profit/loss reports).

4. Standardizing and improving the usefulness of reported data.

5. Improving MBF employee effectiveness and efficiency through training programs that support technology, products, and customer service.

6. Streamlining operations (where possible) and improving efficiency.

B. FACILITIES

The DoD contractor must operate a “home office” in the continental U.S. All operations are managed from this location. The home office is supported overseas by two district offices—one in Korea and one in Germany.

The Community Banks are generically referred to as Military Banking Facilities (MBF). A full-time MBF operates a minimum of five days each week, including any approved evening and weekend service. A part-time MBF operates less than five days each week, exclusive of additional payday service. Part-time MBFs support payday check cashing and local currency sales. A payday service facility provides service only on paydays. Unless otherwise specified, ATMs are located on DoD installations that also host an MBF.

Country Full-time MBF Part-Time MBF ATMs Germany 19 2 79 Netherlands 1 0 4 United Kingdom 6 0 20 Italy 7 0 24 Honduras 0 0 2 Cuba 0 1 6

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Country Full-time MBF Part-Time MBF ATMs Korea 10 1 59 Diego Garcia 1 0 2 Japan 8 0 44 Okinawa 7 0 35 Kwajalein Atoll 1 0 4

C. AUTORIZED CUSTOMERS

Full banking services:

1. Active duty U.S. military personnel;

2. DOD civilian employees who are U.S. citizens;

3. U.S. citizens who are employees of all other U.S. Government departments, agencies, and

NAFI carrying on functions on a DOD installation overseas;

4. Authorized family members of such military and civilian employees;

5. Non-appropriated fund instrumentalities (NAFI) carrying on functions on a DoD installation overseas; and

6. Military disbursing officers.

Limited banking services (e.g., foreign currency conversions, other cash transactions, and ATM usage) where not precluded by Status of Forces Agreements, other intergovernmental agreements, or host-country or local law:

1. U.S. military personnel and U.S. Government civilian personnel on temporary duty;

2. U.S. Reserve military personnel and their family members, where the Reservist is on temporary active duty tours or annual training for less than 180 days;

3. Active duty personnel on authorized leave;

4. NATO Forces;

5. Foreign citizen employees of U.S. contractors at Guantanamo Bay Naval Base; and

6. U.S. military retirees residing overseas.

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D. INDIVIDUAL’S PRODUCTS AND SERVICES

1. Regular checking account services.

2. Interest bearing checking accounts.

3. Savings accounts.

4. ATM and Debit cards, to include EMV chip card.

5. Certificates of deposit (CD).

6. Check cashing as authorized.

7. Foreign currency drafts (where available).

8. Cashier’s checks and money orders.

9. Personal loans.

10. Sale and repurchase of local currency, and when permitted by the host country and approved by the appropriate DOD component military command, sale and repurchase of currency of other countries. All sales shall be for U.S. dollars.

11. Direct deposits.

12. Bank by mail.

13. Incoming and outgoing collections (bank-to-bank transfers).

14. Incoming and outgoing wire transfers to U.S. bank accounts, Euro, and GBP wires.

15. Access to MBF ATMs for the following:

a. Deposits (limited locations), withdrawals, account-to-account transfer, as well as balance inquiries for MBF accountholders.

b. Cash withdrawals and balance inquiries, through approved ATM networks, for both accountholders and non-accountholders.

c. Cash advances from credit cards through approved ATM networks.

16. Automatic transfers between accountholder’s accounts.

17. Overdraft protection.

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a. Overdraft protection with a savings account transfer to cover a checking account overdraft.

b. Overdraft protection with a line of credit.

c. The overdraft protection credit product with a $500.00 minimum limit and

$1,500.00 maximum limit was discontinued as of March 1, 2010. However, it still applies to accounts established with that type of overdraft protection prior to March 1, 2010.

18. Acceptance of rent and utilities payments (where available).

19. Local currency checking accounts (where available).

20. Standing payment orders in foreign currency to include rent, utility, and telephone payments (where available).

21. Yen Paper Drafts (Japan only).

22. Within the U.S. a toll-free customer service line for client balance and information inquiries. The Government may also provide DSN lines.

23. Miscellaneous bill paying service in local currency by EFT where permitted by the host country.

24. Point of Sale (POS) electronic debit transactions for OMBP accountholders utilizing the customer issued ATM or Debit cards.

25. Interactive Voice Response Unit (worldwide).

26. Online Banking with Bill Pay.

a. Available for US dollar payments to US domiciled payees.

b. Available for Euro payments to Euro-accepting payees.

27. Mobile Phone Banking Capability – Current capability includes multi-mode mobile banking, such as text messaging (SMS), mobile browsers, and downloadable smart-phone applications (iPhone, Blackberry and Windows/Android). Mobile banking is available in Diego Garcia and Kwajalein on a limited basis with current cell service or through WIFI..

Current functionality allows users to view accounts (balances and transactions), pay bills, transfer funds between Community Bank accounts and transfer funds externally if external payee account has been previously established in Online Banking.

28. Coin Counter / Sorter Services (where available).

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E. MILITARY DISBURSING OFFICERS’ PRODUCTS AND SERVICES

1. Receipt of deposits for credit to the U.S. Treasury, creating electronic images of both sides of negotiable instruments and maintaining the imaged records for at least three years.

2. Provide U.S. currency.

3. Provide local and foreign currency.

4. U.S. dollar custody account agreements as approved by the COR, where the bank is the custodian of the funds.

5. Local (host country) currency checking account services, when permitted by the host country and the COR.

6. Third-country currency Limited Deposit Accounts (LDA), when permitted by host country and the COR.

7. EFTs or other bank transfers in U.S. Dollars, host country, and third-country currencies.

8. Bank acceptance of EFT data.

F. NONAPPROPRIATED FUND INSTRUMENTALITIES (NAFIs) PRODUCTS AND

SERVICES

1. Checking account services in U.S. dollars, local currency, and third-country currencies, where available.

2. U.S. dollar checking and interest bearing accounts when allowed by regulation.

3. Provide U.S. currency.

4. Provide local and foreign currency.

5. U.S. dollar savings account.

6. Certificates of deposit.

7. Night depositories (where available).

8. EFTs or other bank transfers in U.S. dollar, host-country, and third country currencies.

9. Disaster Relief Donation Account: This account is established for the sole purpose of accepting deposits for National emergency disaster relief efforts such as a hurricane, typhoon, tornado or other natural disaster. The disaster relief donation account can be

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G. PRIVATE ORGANIZATIONS’ PRODUCTS AND SERVICES

1. U.S. dollar checking account services, including interest bearing checking accounts when allowed by regulation.

2. Local currency checking accounts, where authorized by the host country and approved by the COR.

3. Savings accounts.

4. Certificates of deposits.

5. U.S. and local currency when needed for authorized accommodation sales or payroll or vendor payments.

6. Disaster Relief Donation Account: This account is established for the sole purpose of accepting deposits for National emergency disaster relief efforts such as a hurricane, typhoon, tornado or other natural disaster. The disaster relief donation account can be established to receive monetary donations for a specified period (60 days) and is a non- Interest bearing checking account with no monthly service charge. No checks or debit cards will be issued for this account. Disaster relief accounts must be approved by the Installation Commander and will require two signatures to withdraw funds from the account. Upon the organization’s request, the Bank will issue a cashier’s check or complete a wire transfer at no cost to the designated relief organization.

7. EFTs or other bank transfers in U.S. dollars and host country currencies.

H. NATO FORCES IN EUROPE

1. Currency conversions of up to 250 U.S. Dollars (USD) equivalent per day.

2. Purchase of a money order or cashier’s check payable to a U.S. Government agency (Germany only) without a U.S. Dollar (USD) limitation.

I. FOREIGN CITIZEN EMPLOYEES OF U.S. CONTRACTORS AT GUANTANAMO

BAY NAVAL BASE, CUBA

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1. The Contractor shall provide limited banking services to foreign citizen employees of U.S. contractors supporting Guantanamo Bay Naval Base, Cuba.

2. Services are limited to ATM Only accounts with the additional services of check cashing, money order purchase, and wire transfers.

a. A monthly charge shall be made on ATM Only accounts that do not maintain the established minimum daily balance.

b. A processing fee per employee shall be assessed and collected from the U.S.

Contractor submitting the foreign citizen payroll for deposit to their account.

c. A charge shall be made for cashing checks.

d. A charge shall be made for the sale of money orders.

e. A charge shall be made for wire transfers.

f. A charge shall be made for all over the counter transactions.

g. A charge shall be made for each ATM card replacement.

J. TECHNICAL ARCHITECTURE/OMBP SYSTEMS

The OMBP contractor shall provide and maintain a telecommunications and technical architecture system related to systems and processes used to execute banking operations. This includes a complete suite of automated banking tools, such as the core banking application, MBF/ATM transaction processing and reporting, online banking, mobile banking application, loan decision system, telephone Interactive Voice Response (IVR) system, check writing application, Community Bank website, as well as others that may be later identified. The Community Bank suite of systems and applications, owned by the Government, are maintained separately by the contractor under the terms and conditions of the OMBP contract.

Any future competitive solicitation would include the details of the current systems and applications. Any new contractor may choose to maintain the current systems and applications for banking operations but would be responsible for transitioning administration from the current contractor and establishing any new agreements with existing subcontractors required for maintaining the existing technical architecture. The current vendor would remain under contract to support the transition of banking operations for a period of six months in the event they are not awarded the follow-on contract.

K. INNOVATIONS AND TECHNOLOGY AND PRODUCTS/SERVICES REFRESHER

The contractor provides DFAS with an annual technology and products/services review. This technology review provides a description of recent changes/developments in the banking

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