ENGLISH BPD-IAF-11-R-0006.doc

CIRES

Informe de Auditoría 2/3

OMB CONTROL NO. 1505-0080/0081

SOLICITATION AND OFFER —

NEGOTIATED ACQUISITION

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I. SOLICITATION

1. SOLICITATION NUMBER

BPD-IAF-11-R-0006

2. DATE ISSUED

November 29, 2010

3. OFFERS DUE BY

December 29, 2010 2:00 pm ET

4. OFFERS VALID FOR 60 DAYS UNLESS A DIFFERENT PERIOD IS ENTERED HERE

90 days

5. ISSUED BY

Department of the Treasury

Bureau of the Public Debt

Division of Procurement

200 Third Street – Avery 5-F

Parkersburg, WV 26106-5312

ATTN: Mindy Wargowsky

6. ADDRESS OFFER TO (If other than Item 5)

7. FOR INFORMATION CALL (No collect calls)

PHONE NUMBER

480-7034 PSB3@bpd.treas.gov

8. BRIEF DESCRIPTION

This solicitation is intended to result in an indefinite-delivery, indefinite-quantity (IDIQ) contract award for Grant Compliance Auditing Services in Guatemala, to support the Inter-American Foundation (IAF).

This acquisition is unrestricted. The NAICS code is 541211 and the size standard is $8.5 million.

9. TABLE OF CONTENTS

II. OFFER

The undersigned agrees to furnish and deliver the items or perform services to the extent stated in this document for the consideration stated.

The rights and obligations of the parties to the resultant contract shall be subject to and governed by this document and any documents attached or incorporated by reference.

11. NAME AND ADDRESS OF OFFEROR

12A. SIGNATURE OF PERSON AUTHORIZED TO SIGN

12B. NAME OF SIGNER

12C. TITLE OF SIGNER

AREA CODE

NUMBER

NUMBER

AUTHORIZED FOR LOCAL REPRODUCTION OPTIONAL FORM 308 (9-97)

COMPUTER GENERATED

Prescribed by GSA - FAR (48 CFR) 53.215-1(f)

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1. CONTRACT SUMMARY

This contract consists of a base year with four one-year option periods. A contract will be awarded that is performance-based, indefinite-delivery, indefinite-quantity, and contains fixed-price professional fees, hourly rates for optional services, and reimbursable travel costs. The time periods of this contract are as follows:

Base Period

Date of Award through month 12 Option Period I

Month 13 through Month 24 Option Period II

Month 25 through Month 36

Option Period III

Month 37 through Month 48 Option Period IV

Month 49 through Month 60

B.2. CONTRACT MINIMUM/MAXIMUM

The minimum value of this contract shall be $10,000 and the maximum value shall be calculated based on the evaluated price. See Section M.2.2.

B.3. LABOR CATEGORY DESCRIPTIONS

The Contractor shall be a licensed accounting firm, accountants, or audit organization with a full-time physical presence in Guatemala. The Contractor shall have legal status to operate in Guatemala for the duration of the contract. Contractors shall propose an appropriate staff configuration to include an Audit Partner/Senior Manager and an experienced Staff Auditor.

Audit Partner/Senior Manager

The Audit Partner/Senior Manager shall be a Certified Public Accountant (CPA) and be licensed by the appropriate country/state licensing authority. The minimum educational experience includes: (a) a bachelor’s degree in accounting or business, and (b) 80 hours of Continuing Professional Education (CPE) in the past two years that meets the Generally Accepted Government Auditing Standards (GAGAS) CPE requirements. The responsibilities in this category generally include:

1. reviewing working papers, financial statements and related reports for accuracy and completeness;

2. conducting discussions with clients about the results of the work performed;

3. directing staff auditors;

4. reviewing and approving work plans and programs;

5. ensuring that assignments are carried out within the budgeted time and within delivery commitments;

6. following the progress of the engagement; and helping resolve accounting, auditing, and reporting problems as they arise.

The Audit Partner/Senior Manager is regularly assigned to the firm’s other audit engagements in a managerial capacity. The Audit Partner/Senior Manager is responsible for the work performed, i.e., overall project management and final report review.

Staff Auditor

The Staff Auditor shall have a bachelor’s degree in accounting or business, and have a minimum of two years general audit experience. The responsibilities of the Staff Auditor may include independently performing segments of an audit and making decisions on all but the most unusual accounting, auditing, and reporting matters.

Section B.3.1 contains descriptions of the qualifications for the auditors performing the audits included in the pricing example provided in Section B.5.

B.3.1. Auditor(s)

1. The Contractor shall meet the qualifications and independence standards as specified in the Generally Accepted Government Auditing Standards (GAGAS or “Yellow Book”). These standards specify the necessary requirements related to Auditor Qualification and include (but are not limited to) the following key competence standards:

a. The Contractor shall be licensed certified public accountants or persons working for a licensed public accounting firm.

b. The Contractor (individual responsible for planning, directing or reporting) should complete, every two years, at least 80 hours of continuing professional education (CPE), 24 hours of which should be related to government auditing. Auditors who are only involved in performing field work and charge less than 20 percent annually to GAGAS engagements are only required to take 24 hours of government related CPE in the two-year period.

c. The Contractor should undergo an external peer review by an independent accounting firm once every three years. The contractor shall also have an appropriate quality control system in place.

2. The Contractor, according to US Government Auditing Standards, shall comply with the applicable provisions of the public accountancy law and rules of the jurisdiction in which they are licensed and where the engagement is being conducted.

3. The Contractor shall ensure that the Staff Auditors possess the requisite experience and knowledge necessary to conduct an audit. The educational requirements for the Staff Auditor would include a bachelor’s degree in accounting or business, and at least two years of general audit experience. The Contractor shall ensure that audit staff understands the unique environment in which the Foundation grantees operate. The Contractor shall exhibit cultural sensitivity and the capacity to relate to the variety of development actors involved in the various programs as well as the business community.

4. The Contractor shall have a physical presence in Guatemala. The Contractor shall be willing and able to travel to remote areas of Guatemala to conduct fieldwork at the grantees’ physical location.

5. The Contractor shall provide grant audit services in other countries, under special circumstances on an ad-hoc, temporary basis as requested by the COTR.

6. The Contractor (including staff) shall be fluent in Spanish, speaking, reading, and writing in professional business language.

B.4. PROFESSIONAL FEES and UNIT PRICES (All rates shall be provided in US dollars.)

The professional fees and unit prices set forth in this section for all line items are fixed for the duration of the contract.

The Audit Fee, as well as the Orientation/Initial Assessment Fee, shall include the cost of professional services for time and materials, excluding reimbursable travel costs (meals, lodging, and transportation). International travel outside Guatemala, for the purpose of conducting the Audits or Orientation/Initial Assessments, will not be considered reimbursable except as requested and approved in advance by the COTR.

Each audit (including planning, field work, and reporting) is estimated to take the equivalent of one individual approximately 5 to 7 days to complete (excluding travel time) and require a staffing configuration of one Audit Partner/Senior Manager and one Staff Auditor. Each Orientation/Initial Assessment is intended to take one individual (Staff Auditor) one day to complete (excluding travel time). Therefore, the unit prices listed below shall include the Contractor’s total fee for conducting one audit and one Orientation/Initial Assessment. The audit and assessment prices are fixed-price.

See Attachment A for a chart of estimated numbers of grant audits that would be required to be performed per contract year. The locations of grantees will vary and may include any and all departments/provinces/states. The nature of IAF grant activity is such that field visits are likely to require travel to remote areas of the country, resulting in difficult travel and lodging conditions.

Other Optional Services shall include an hourly rate for the provision of potential services which would include such services as; hosting regional conferences and/or workshops, providing ad hoc consulting services related to specific Foundation requests (ex, revisions to the audit manual, grantee guides or other written guidance materials), and performing Foundation-requested field visits for technical assistance. The unit prices listed below for Other Optional Services shall include the Contractor’s hourly fee for possible work on the activities described in this paragraph and in Section C. The calculation of the hourly rate for the hosting of conferences and/or workshops should reflect only the Contractor’s time and administrative overhead expenses in arranging for the conference and/or workshop. Other costs associated with the conference and/or workshop, e.g. renting the meeting facility, invitations, etc. must be approved in advance by the Foundation Auditor and/or COTR, and will be reimbursed on an actual cost basis or paid directly by the Foundation to the vendor(s).

B.5. TASK ORDERS

The Government will issue orders under this contract on a fixed-price basis for the deliverables or on an hourly rate basis for Other Optional Services plus authorized travel expenses as set forth below. Prior to the beginning of each twelve-month period, the Contractor shall submit a travel cost estimate for the visits that are planned for the upcoming twelve-month period in accordance with the order provided by the Contracting Officer’s Technical Representative (COTR) (Attachment B). Travel cost estimates shall include per diem (lodging, meals, and incidental expenses) and transportation expenses necessary to conduct the audit. The travel cost estimate shall cover only one contractor staff member unless otherwise approved by the COTR on a case-by-case basis. International travel outside the country, for the purpose of conducting the Audits or Orientation/Initial Assessments, will not be considered reimbursable except as requested and approved in advance by the COTR. The COTR will review the travel cost estimate and either accept or request revisions to it. Expenses not pre-approved may not be paid. The Contracting Officer will issue a Task Under Contract Request Form (Attachment B) to the Contractor by e-mail specifying a firm-fixed price for the visits (in accordance with the pricing in Section B) and a not-to-exceed amount for travel expenses. Receipts must be submitted with invoices for airfare, lodging and all expenses over US$75.

BASE YEAR (Award through Month 12)

PRICE

AMOUNT

OPTION YEAR 1 (Month 13 through 24)

PRICE

AMOUNT

OPTION YEAR 2 (Month 25 through 36)

PRICE

AMOUNT

OPTION YEAR 3 (Month 37 through 48)

PRICE

AMOUNT

OPTION YEAR 4 (Month 49 through 60)

PRICE

AMOUNT

Travel Estimates:

A Government-estimated travel budget will be determined at the time of award, and added to the contractor’s proposed total in order to establish the maximum contract value.

SECTION C - DESCRIPTION/SPECIFICATIONS

PERFORMANCE WORK STATEMENT (PWS)

C.1. BACKGROUND

The Inter-American Foundation (IAF) is an independent agency of the United States Government, established as part of the Foreign Assistance Act of 1969. The mission of the IAF is to promote sustainable grassroots development throughout Latin America and the Caribbean. To that end, the IAF provides grants directly to grassroots and community-based organizations in Latin America and the Caribbean to help them implement their own creative ideas for development and poverty reduction.

Since beginning operations in 1972, the IAF has distributed over $630 million through nearly 5,000 grants. Many grants have supported grassroots organizations such as agricultural cooperatives, and neighborhood or small business associations; others were awarded to intermediary organizations that provide grassroots groups with credit, technical assistance, training, and marketing expertise. The largest portion of IAF funding has been invested in food production and agriculture, followed by micro-enterprise development, and education and training. For more information about the IAF, please visit our website at: www.iaf.gov.

The IAF seeks grant proposals for projects that meet the following criteria:

· Offer innovative solutions to development problems among populations generally beyond the reach of traditional foreign assistance agencies.

· Demonstrate substantial beneficiary participation in project design, management, and implementation.

· Generate practical benefits for the poor in ways that increase the capacity of poor people for self-help.

· Strengthen the capacity of poor people's organizations, are technically feasible, and have the potential for sustainability.

· Show counterpart contributions from the proponent, and ideally, from other local supporters.

The IAF gives preference to organizations that have not received direct funding from other U.S. government agencies. Also, the IAF gives preference to applications that demonstrate a strategy for forming development partnerships with private and public sector institutions.

The grassroots development projects supported by the IAF are often carried out by groups in poor communities with limited administrative capacity and technical knowledge. As a result, it is sometimes necessary to provide training and technical assistance along with grants. The IAF is based in Washington DC, with all staff residing in the U.S. Conducting outreach and providing support to grassroots organizations has led the IAF to fruitful relationships with local individuals and organizations including the “Local Liaison Advisory Services” (LLAS) who assists the COTR in monitoring and managing the Guatemala portfolio.

In-country functions complementary to the LLAS include financial auditing, the subject of this Performance Work Statement and programmatic results verification. The IAF currently contracts an in-country firm for financial auditing services. A second in-country contractor currently provides results verification services that are used for IAF reports to the U.S. Congress and other internal purposes. The LLAS does not have responsibility for financial audits or results verification, but may assist grantees in obtaining technical assistance related to these topics. Aside from the IAF contractors for financial audits and data verification, the IAF does not have additional in-country support.

As of July 2010, the IAF’s Guatemala program consists of 16 active grantees (Attachment A). Current and potential grantees carry out projects in a variety of thematic areas including agriculture and environment, micro-enterprise development, local planning and governance, youth empowerment, and the use of remittance transfers for local development. The IAF Guatemala program emphasizes development partnerships between grantees and private and public sector institutions. The IAF’s portfolio in Guatemala may change in number and type of projects funded over the course of the contract awarded under this solicitation. The Guatemala auditor should anticipate that his or her workload will be proportional to the size and activities of the Guatemala portfolio and will correspond to the needs of the agency, and may increase or decrease according to any portfolio changes. Fluctuations in the portfolio will affect the workload and amounts paid under this contract.

C.2. OBJECTIVE

The purpose of this acquisition is to provide compliance audit services on Foundation grants in Guatemala.

C.3. SCOPE

The scope of this contract and the audits to be conducted shall be in conformity with the “Audit Manual for Use by Independent Auditors in the Examination of Foundation Grants” (2006 version) or Audit Manual, provided as Attachment C to this PWS. For purposes of this PWS, an Audit shall be defined as an examination-level attestation engagement as defined in section 6.02 of the Yellow Book, and does not constitute a financial audit under GAGAS or Generally Accepted Auditing Standards (GAAS). Audits performed under this contract will include sufficient testing of a grantee’s books and records to determine whether the grantee is in compliance, in all material respects, with the requirements set forth in the grant agreement executed between the Foundation and the Grantee, and to render an opinion to that effect.

The audit shall include a review of a Grantee’s use of grant funds as well as its receipt and use of counterpart resources, in the context of the grant agreement. The auditors shall evaluate and analyze actual incurred costs and compare the costs with budgeted and proposed line items. Included in the audit report shall be a comparative analysis between the actual incurred costs (the disbursed budgeted amount) and the overall total budgeted amount.

The form, content and timing of submission of the audit report shall be in accordance with the criteria specified in the Audit Manual established by the Foundation (Attachment C).

C.3.1. Requirements

(1) The Contractor shall provide all services, personnel, facilities, equipment and materials necessary to perform the work required under this PWS.

(2) The Contractor shall conduct all audits performed under this PWS and the resultant contract in accordance with the Generally Accepted Government Auditing Standards (GAGAS or Yellow Book) as promulgated by the Comptroller General of the United States in the most recent version (currently the 2007 version). The Contractor shall possess the requisite knowledge of and familiarity with the US Office of Management and Budget (OMB) Circular A-122, “Cost Principles for Non-profit other than Educational Organizations”.

(3) The Contractor shall conduct all audits in accordance with the specific procedures and reporting requirements set forth in the Foundation’s Audit Manual, 2006 version. The Audit Manual is hereby incorporated in its entirety into this PWS [See Attachment C]. Any subsequent revisions to the Audit Manual will be delivered by the Foundation to the Contractor, and will take effect as of the date specified by the Foundation.

(4) The Contractor shall report material findings, in accordance with section 6.15 of the Yellow Book, “Developing Elements of Findings”. The findings shall include the following elements: criteria, condition, cause and effect. For each finding, the Contractor shall also include an auditor’s recommendation and a response to the finding from grantee officials.

(5) The Contractor shall perform all required audit fieldwork on-site at the grantee’s location. Due to the nature of the Foundation’s grant activity, the Contractor will be expected to travel, in some cases, to remote regions of Guatemala in the course of an Audit.

(6) The Contactor shall report immediately (i.e., within 24 hours) to the Foundation Auditor and the COTR all cases of possible fraud or abuse involving the misuse of the Foundation grant funds discovered as part of the audit, or at any other time.

(7) For each new grantee, the Contractor shall conduct an individual one-day on-site orientation/initial assessment of the grantee’s accounting and finance environments. This assessment shall serve as an internal control risk assessment as well as an opportunity for the Contractor to provide the Grantee guidance related to appropriate accounting controls and/or systems necessary for the administration of Foundation grant funds. The Contractor shall provide to and discuss with the Grantee the IAF’s “Grant Financial Management Guide.” The Grant Financial Management Guide is a document specifically designed for grantees that describes the accounting and grant reporting requirements of typical Foundation grants (see Attachment D).

The Contractor shall provide a Word document of approximately two pages outlining the results of the assessment. The report shall be sent electronically to the Foundation Auditor and the COTR within 60 days of the Contractor’s receipt of the grant agreement.

(8) The Contractor shall retain audit reports and all related work papers for the lifetime of the project plus two years after project termination or expiration, or six years, whichever is longer.

(9) The Contractor shall be available to attend quarterly status meetings by teleconference with the Foundation Auditor and COTR for planning, performance assessment, and issue resolution purposes.

(10) As requested by the COTR, the Contractor (to include a maximum of two individuals) shall participate in one or more regional conference(s) and/or workshop(s) with other contractors and Foundation officials to evaluate contract activities, review and update audit policies and procedures, as well as share “best practices” and insights pertaining to conducting grant audits. Costs for travel, lodging and meals incurred by the Contractor to attend the meetings will be covered by the Foundation on an actual cost basis.

(11) The Contractor shall participate in group orientation meetings for new Foundation grantees as requested by the COTR. Costs for travel, lodging and meals incurred by the Contractor to attend the meetings will be covered by the Foundation on an actual cost basis.

(12) The Contractor shall participate in a Foundation external Quality Control Review (or QCR) which shall be conducted approximately once every three years. The QCR will be conducted by the Foundation Auditor and will require complete access to grant audit working papers as well as the assistance and availability of the Contractor and key staff.

C.3.2. Office Location and Technical Capacity

The Contractor shall have a physical in-country office located in Guatemala. The Audit office shall be equipped with a computer, phone, fax, and Internet services. Key project staff shall be proficient in the use of Microsoft Word and Excel; all electronic files shall be compatible with software already existing in the Foundation office (Microsoft Office 2003 Word and Excel), unless otherwise directed by the COTR.

C.4. REPORTING REQUIREMENTS

The following deliverables are required under this contract:

(1) A summary report of the orientation/initial assessment shall be approximately two pages in length and meet all the requirements detailed in the Audit Manual (See Attachment C). The report shall be sent via e-mail to the Foundation Auditor and COTR as a PDF document in accordance with the time frames specified in subparagraph C.5.(1) below.

(2) An audit report following the standard format and contents prescribed in the Audit Manual (2006 version) shall be sent via e-mail as a PDF attachment with an electronic signature to the Foundation Auditor and

COTR in accordance with the time-frames specified in subparagraph C.5.(2) below.

Audit reports shall include material findings, grantee responses, and the Contractor’s assessment of those responses. Recommendations shall also be provided for each finding or observation. Refer to C.3.1.(4) above for more information.

The audit reports shall be submitted in Spanish.

(3) If requested, the Contractor shall show and/or send to the Foundation work papers (or copies of the auditors’ originals) identifying all analyses, work flow, concepts, audit adjustments and computations used to justify the aforementioned findings, observations and recommendations.

(4) The Contractor shall be available for quarterly audit status updates. Contractor may be asked by the COTR to provide periodic updates as needed or required to the Foundation Auditor and the Foundation Representative during the audit to allow for discussion of potential findings.

C.5. DELIVERY SCHEDULE

(1) The two-page summary of the orientation/initial assessment shall be submitted to the COTR and Foundation Auditor within 60 calendar days of the Contractor’s receipt of a copy of the approved new grant agreement, which will be sent directly to the Contractor by the COTR.

(2) Frequency of Audits – The COTR will communicate with the Contractor to establish audit schedules. The COTR will send an updated audit schedule at least every twelve months reflecting new grants, amendments and other information. All Audit Reports are due no later than 90 days following the end of the audit period (with the exception of Special Audits described below).

Audit Schedule – Foundation grants require audits in accordance with the following schedule, which assumes a typical three (3) year grant term:

· First Audit – The first audit shall be conducted for the 12-month period ending one year after the Grant Date.

· Second Audit – The second audit shall be conducted for the 12-month period ending one year after the First Audit (12-month period ending 24 months subsequent to the Grant Date)

· Final Audit - The Final Audit shall be conducted for the 12-month period ending one year subsequent to the Second Audit (12-month period ending 36 months subsequent to the Grant Date). If a grant agreement is modified or amended to extend the grant period 12 months or less, the Final Audit shall be delayed to the amended grant agreement expiration date. If the grant agreement is extended greater than 12 months, the Contractor will ensure an additional audit is conducted to ensure that no audit period exceeds 24 months.

· Special Audits - The Contractor shall conduct special audits as requested in writing by the COTR on an ad hoc basis. Given the special, and often times urgent, nature of these audits, reports are due to the COTR within 30 days of assignment, unless otherwise stated by the COTR.

C.6. WORKING PAPERS

(1) All working papers shall be maintained in a secure location and made accessible to the COTR at his/her request, including Quality Control Reviews (QCR).

(2) At the request of the COTR, the Contractor shall, at the Contractor’s expense, provide a copy of any work papers, audit notes, or any other documentation (paper or electronic format) that the Contractor may create in performing the audit. These documents may become the property of the Foundation.

(3) Working papers shall contain the objectives, scope and methodology of an audit, including any sampling criteria used. The working papers shall contain documentation of the work performed to support significant conclusions and judgments, including descriptions of transactions and records examined that would enable an experienced auditor to reach the same conclusions and judgments. The working papers shall also include documentation related to the assessment of risk.

(4) Working papers of an audit conducted by a non-supervisory auditor shall contain evidence of supervisory reviews of all work performed by the Contractor. They shall contain sufficient information to enable an experienced auditor having no previous connection with the audit to ascertain from them the evidence that supports the auditor’s significant conclusions and judgments.

C.7. CONFIDENTIALITY

All work performed under this contract is confidential and is not to be released to outside parties without express written permission from the COTR.

C.8. CONTRACTOR’S INDEPENDENCE

(1) In accordance with the GAGAS, in all matters related to audit work, the Contractor and its employees shall be independent and shall maintain an independent attitude and appearance so that opinions, conclusions, judgments and recommendations will be impartial and shall be viewed as impartial by knowledgeable third parties.

(2) The Contractor shall consider three general classes of potential limitations to its independence – personal, external and organizational. If one of these limitations might affect an auditor’s ability to carry out audit work and report findings impartially or create the appearance of such, the Contractor shall, at a minimum, require the recusal and replacement of that auditor from those specific audit responsibilities until such time as the conflict or appearance of conflict ceases to exist for that individual. In those situations where a particular auditor cannot be replaced, the Contractor shall immediately notify the COTR in writing.

(3) The Contractor shall follow the American Institute of Certified Public Accountants (AICPA) code of professional conduct.

C.9. PERFORMANCE REQUIREMENTS

The purpose of the Performance Requirement Summary (PRS) is to provide a quality assurance plan for auditing services in Guatemala. This plan provides a basis for the COTR to evaluate the quality of the Contractor's performance. The oversight provided for, in the contract and in this plan, will help to ensure that service levels reach and maintain the required levels throughout the contract term. Further, this plan provides the COTR with a proactive way to avoid unacceptable or deficient performance, and provides verifiable input for the required past performance evaluations.

The Contractor is responsible for performing the requirements of this contract in accordance with the PRS detailed on the following page. The Contractor will be subject to the incentives/disincentives associated with the PRS. The Contractor shall submit a quality control plan as part of the technical proposal.

Performance Requirements Summary (PRS) Desired Outcome Required Service Performance Standard Monitoring Method Incentives/Disincentives for Meeting or not Meeting the

Performance Standards

Orientation/ Initial Visit Reports See C.4.(1) and C.5.(1) The report shall be submitted within 60 calendar days of the Contractor’s receipt of the grant agreement.

The reports shall meet the requirements as outlined in C.3.1.(7), C.4.(1), and in the

Audit Manual.

100% inspection

The COTR will review each report for its quality according to the established criteria in this contract.

The COTR will record the grant start date and dates the grant agreements are sent by electronic mail.

Past performance evaluation.

If the deliverable is received after the due date with no prior written approval by the COTR, 10% (of the orientation report fee) penalty will be assessed.

The contractor shall re-perform at no cost to the government if the work product is unacceptable. No payment will be made until the acceptable product is received.

The vendor shall not invoice until email confirmation from the COTR accepting the report has been provided.

Audit Reports See C.4.(2) and C.5.(2) The Audits for the periods outlined in C.4.(2) are to be delivered electronically to the Foundation within 90 calendar days of the end of the audit period.

The reports shall meet the requirements as outlined in C.4.(2) and in the Audit Manual.

100% inspection

The COTR will record the receipt date of all reports as well as their quality according to the established criteria in this contract.

Past performance evaluation.

If the deliverable is received after the due date with no prior written approval by the COTR, a 10% (of the audit report fee) penalty will be assessed.

The contractor shall re-perform at no cost to the government if the work product is unacceptable. No payment will be made until the acceptable product is received.

The vendor shall not invoice until email confirmation from the COTR accepting the report has been provided.

Special Audit Reports See C.5.(2)

Special Audits

The Contractor shall conduct special audits as required by the COTR. The Special Audit reports are to be delivered within 30 calendar days of assignment.

The reports shall meet the requirements as outlined in C.4.(2) and in the Audit Manual.

100% inspection

The COTR will record the receipt date of all reports as well as their quality according to the established criteria in this contract.

Past performance evaluation.

If the deliverable is received after the due date with no prior written approval by the COTR, a 10% (of the audit report fee) penalty will be assessed.

The contractor shall re-perform at no cost to the government if the work product is unacceptable. No payment will be made until the acceptable product is received.

The vendor shall not invoice until email confirmation from the COTR accepting the report has been provided.

Attend Conferences/ Group Orientation Meetings See C.3.1.

(10), (11)

The Staff Auditor shall attend and participate in the conferences described in C.3.1.(10), (11).

Meeting attendance and participation.

Past performance evaluation.

SECTION D - PACKAGING AND MARKING

D.1. PAYMENT OF POSTAGE AND FEES

All postage and fees related to submitting information and materials to the Contracting Officer (CO) or the COTR shall be paid by the Contractor unless mutually agreeable alternate arrangements are made between the COTR and the Contractor.

D.2. PREPARATION FOR DELIVERY

All items shall be packaged in accordance with normal commercial practice.

D.3. MARKING OF SHIPMENTS

To facilitate identification, the Contractor and each subcontractor making shipments to the Government shall mark each piece, bundle, or container (inside and outside) with the Government contract number, including task order number and mark all shipments in accordance with normal commercial practice.

SECTION E - INSPECTION AND ACCEPTANCE

E.1. 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Office will make their full text available. Also, the full text of a clause may be accessed electronically at this address: www.acquisition.gov/far.

The following clause is incorporated by reference:

E.2. 52.246-6 INSPECTION – TIME-AND-MATERIAL AND LABOR-HOUR (MAY 2001)

E.3. INSPECTION AND ACCEPTANCE

Inspection and acceptance of all work performed under this contract shall be performed by the COTR to ensure compliance with the contract and assess conformance with the PRS.

E.4. RECORDS

The Contractor shall maintain and provide the CO and the COTR access to all documents and records for services performed during the contract. The Contractor shall comply with requirements in FAR 4.7, Contractor Records Retention.

E.5. QUALITY CONTROL

The Contractor is required to immediately notify the COTR of problems or situations that could negatively impact compliance with the provisions of the contract and task order and to inform the COTR of the plan the Contractor will implement to resolve problems.

SECTION F - DELIVERIES OR PERFORMANCE

The following clauses are incorporated by reference:

F.1. 52.242-15 STOP-WORK ORDER (AUG 1989)

F.2. 52.242-17 GOVERNMENT DELAY OF WORK (APR 1984)

F.3. DELIVERABLES

In addition to the deliverables outlined in the performance work statement (C.9.), deliverables associated with

Services, see B.4., will be identified in the task order issued under the contract.

F.4 PLACE OF DELIVERY

Delivery of all items to the COTR shall be made to the address specified in the contract, G.3.

SECTION G - CONTRACT ADMINISTRATION DATA

G.1. CONTRACTING OFFICE REPRESENTATIVES

Contracting Officer: Gina Hanna

Administrative Contracting Officer(s): to be named at award

Contract Negotiator: Mindy Wargowsky

Address:

Department of the Treasury

Bureau of the Public Debt

Division of Procurement, 200 Third Street - Avery 5F

Parkersburg, WV 26106-5312

E-mail Address: to be provided at award Fax: (304) 480-7204

G.2. CONTRACT ADMINISTRATION

In no event shall any understanding or agreement, contract modification, change order, or other matter in deviation from the terms of this contract between the Contractor and persons other than the Contracting Officers be effective or binding upon the Government. The Contracting Officers are the only persons authorized to make or approve any changes in any of the requirements of this contract and, notwithstanding any provisions contained elsewhere in this contract, the said authority remains solely in the Contracting Officers. In the event the Contractor makes any changes at the discretion of any persons other than the Contracting Officers, the change will be considered to have been made without authority and no adjustment will be made in the contract price to cover any increase in the costs incurred as a result thereof.

G.3. DTAR 1052.201-70 CONTRACTING OFFICER’S TECHNICAL REPRESENTATIVE (COTR)

DESIGNATION AND AUTHORITY (APR 2004)

a) The Contracting Officer’s Technical Representative is to be named at award.

b) Performance of work under this contract shall be subject to the technical direction of the COTR identified above, or a representative designated in writing. The term “technical direction” includes, without limitation, direction to the Contractor that directs or redirects the labor effort, shifts the work between work areas or locations, fills in details, and otherwise serves to ensure that tasks outline in the work statement are accomplished satisfactorily.

c) Technical direction must be within the scope of the specification(s)/work statement. The COTR does not have authority to issue technical direction that:

1) Constitutes a change of assignment or additional work outside the specification(s)/work statement;

2) Constitutes a change as defined in the clause titled “Changes”;

3) In any manner causes an increase or decrease in the contract price or the time required for contract performance;

4) Changes any of the terms, conditions, or specification(s)/work statement of the contract;

5) Interferes with the Contractor’s right to perform under the terms and conditions of the contract; or

6) Directs supervises or otherwise controls the actions of the Contractor’s employees.

d) Technical direction may be oral or in writing. The COTR shall confirm oral direction in writing within five workdays, with a copy to the Contracting Officer.

e) The Contractor shall proceed promptly with performance resulting from the technical direction issued by the COTR. If, in the Contractor’s opinion, any direction of the COTR, or his/her designee, falls within the limitations above, the Contractor shall immediately notify the Contracting Officer no later than the beginning of the next Government work day.

f) Failure of the Contractor and Contracting Officer to agree that technical direction is within the scope of the contract shall be subject to the terms of the clause titled “Disputes.”

G.4. INVOICE REQUIREMENTS

a) Invoices for costs associated with travel or materials shall be submitted on a monthly basis in arrears. For time-and-materials orders, the Contractor may render invoices in arrears as work is performed, but not more frequently than monthly unless authorized at intervals that are more frequent by the Contracting Officer. Work performed under multiple task orders cannot be combined into a single invoice. The Contractor shall retain a copy of all invoices for inspection upon request by the CO and/or COTR. The Contractor shall invoice no later than 30 days after COTR provides notice of acceptance of approved reports.

b) Invoices shall be submitted electronically. Protected Microsoft Excel files are the preferred format, however, Adobe Acrobat Portable Document Format (PDF) and Microsoft Word are also acceptable. The email address will be provided at time of award.

c) A proper invoice must include the following information and/or attached documentation:

1) Name of the business concern and date of invoice.

2) Contract number or other authorization for delivery of property or services.

3) Task order number, description, price, quantity of services actually delivered or rendered, and the date thereof.

4) Shipping and payment terms.

5) Name, title, and phone number of responsible official preparing the invoice.

6) Name and signature of contractor’s certifying official, title, phone number, and complete mailing address of responsible official to whom payment is to be sent.

7) For time-and-materials task orders, documentation supporting time billed (description of tasks performed), subcontractor’s invoices, or any other documentation supporting the invoice.

d) Invoices will be paid upon receipt and after certification by the COTR that the deliverables are acceptable.

G.5. ORDERING

G.5.1. Task Proposal Requests A request for services shall be initiated by the submission of the “Task Under Contract Request Form” (Attachment B) by either the COTR or the Contractor. Such requests may be issued by facsimile, or by electronic commerce methods at any time during the term of this contract.

a) The task proposal request will specify, at a minimum, the following information:

1) A description of the work to be performed

2) The desired period of performance or required completion date 3 ) Reporting requirements and deliverables

b) Acceptance of task proposal requests will result in task orders subject to the terms and conditions of this contract. In the event of a conflict between a task order and this contract, the contract shall prevail.

c) The Contractor shall not proceed with any work under a proposed task order unless authorized by the

Contracting Officer. Each task order will indicate an effective date which shall be considered the start date as far as the determination of due date(s) for deliverables is concerned.

d) The task proposal request neither commits the Government to pay any costs incurred in the submission of any proposal or in making necessary studies for the preparations thereof, nor does it commit the

Government to issue a task order for such services. The Contracting Officer is the only individual who can commit the Government to the expenditure of funds in connection with this contract.

G.5.2. Task Proposals/Authorization

a) The Contractor shall provide a written response to the task proposal request within ten calendar days, unless otherwise specified in the task proposal request. The Contractor’s written response shall consist of the following:

1) A technical proposal with the contractors approach to performing the required work

2) A work schedule identifying the person-days, travel, and deliverables

3) The Contractor shall complete the “Contractor’s Estimated Cost” portions of the Task Under Contract Request Form. The price shall be calculated using the unit price specified in Section B times the number of audits required. Any travel estimate shall be priced in accordance with FAR 31.205-46.

b) The Government may enter into discussions with the Contractor regarding the task proposal for purposes of negotiating the technical approach, proposed person-days, or any other issues.

G.5.3. Task Orders Should the Government determine to proceed with the work identified in the task proposal request, a task order will be issued by the Contracting Officer to specify the work to be performed by the Contractor. All task orders will be unilateral, not requiring the Contractor’s signature. Task orders may be transmitted via electronic mail. At a minimum, each task order issued under this contract will include the following:

a) A task order number

b) A description of the work to be performed

c) The work schedule, period of performance, or required completion date

d) The reporting requirements and deliverables

e) The not-to-exceed amount for time-and materials orders to complete the requirements

f) The obligation of funds

g) The payment schedule/terms

G.6. CORRESPONDENCE PROCEDURES

To promote timely and effective administration, correspondence (with the exception of invoices) shall be subject to the following procedures:

a) Technical correspondence shall be addressed to the COTR.

b) All other correspondence shall be addressed to the Contracting Officer.

G.7. PRICING OF ADJUSTMENTS

When costs are a factor in any determination of a contract price adjustment pursuant to the “Changes” Clause, or any other clause of this contract, such costs shall be in accordance with the contract cost principles and procedures in Part 31 of the Federal Acquisition Regulation (48 CFR 31) in effect on the date of the contract award.

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1. PUBLIC RELEASE OF INFORMATION PERTAINING TO THIS CONTRACT

Any proposed public release of information pertaining to this contract or the work called for hereunder shall be submitted to the Contracting Officer for approval prior to release. No information shall be released without written approval from the CO.

H.2. INTERPRETATION OF CONTRACT REQUIREMENTS

If the Contractor finds clarification necessary with respect to the scope of the services to be performed or manner in which the services are to be performed hereunder, he/she shall request such clarification from the Contracting Officer. No interpretation of any provision of this contract, including applicable specification, shall be binding on the Government unless furnished or agreed to in writing by the CO.

H.3. NON-PAYMENT FOR ADDITIONAL WORK

Any additional services or a change to work specified which may be performed by the Contractor, either at his own volition or at the request of an individual other than a duly appointed Contracting Officer, except as may be explicitly authorized in the contract, will be done at the financial risk of the Contractor. Only a duly appointed Contracting Officer is authorized to bind the Government to a change in the specifications, terms, or conditions of this contract.

H.4. INDEMNIFICATION

The Contractor shall indemnify and hold harmless the Government and its officers, agents, representatives, and employees from all claims, loss, damage, actions, causes of action, expense, and/or liability resulting from, brought for, or on account of any personal injury or property damage received or sustained by any person or property growing out of or attributable to any work performed under or related to this contract, regardless of whether such claims, loss, damage, actions, expense, and/or liability may be attributable to the fault, failure, or negligence of the Contractor.

H.5. NON-PERSONAL SERVICES

The Contractor agrees that this is a non-personal services contract; that for all the purposes of the contract the Contractor is not, nor shall he/she hold himself/herself out to be, an agent or partner of, or joint venture with, the Government; and that he/she shall neither supervise, nor accept supervision from, Government employees.

H.6. REASSIGNMENT AND REPLACEMENT OF KEY CONTRACTOR PERSONNEL

a) The Government reserves the right to require the Contractor to reassign key Contractor employees who are deemed incompetent, careless, unsuitable or otherwise objectionable, or whose continued use under any task order issued under this contract is deemed contrary to the best interests of the Government. The Contracting Officer will give notice of such reassignment, in writing.

b) In the event the Contractor finds it necessary to replace the key personnel during the life of the contract, the COTR shall be notified in writing. In cases of Contractor-initiated reassignment of personnel, the request shall be submitted at least fifteen calendar days prior to reassignment to the COTR for review and approval as well as allowing sufficient time for training of replacement personnel. This notice shall also include the resume(s) of the proposed replacement personnel. All replacement personnel are subject to the written approval of the Contracting Officer prior to their beginning work under this contract.

h.7. COMPLIANCE WITH LOCAL LABOR LAWS (OVERSEAS)

(a) The Contractor shall comply with all-

(1) Local laws, regulations, and labor union agreements governing work hours; and

(2) Labor regulations including collective bargaining agreements, workers' compensation, working conditions, fringe benefits, and labor standards or labor contract matters.

(b) The Contractor indemnifies and holds harmless the United States Government from all claims arising out of the requirements of this clause. This indemnity includes the Contractor's obligation to handle and settle, without cost to the United States Government, any claims or litigation concerning allegations that the Contractor or the United States Government, or both, have not fully complied with local labor laws or regulations relating to the performance of work required by this contract.

(c) Notwithstanding paragraph (b) of this clause, consistent…