C04 Attachment 1 - Statement of Work.pdf

US Department of Agriculture (USDA)

Statement of Work

Contents Project General Information

1.0 Scope of Work

2.0 Background

Contractor Requirements

3.0 Technical Requirements / Tasks

4.0 Government Furnished

5.0 Deliverables / Schedule

6.0 Travel

7.0 Contractor’s Key Personnel

8.0 Security Requirements

9.0 Data Rights

10.0 Section 508 – Electronic and Information Technology Standards

Project Bank Rating & Sovereign Reports On-line Subscription

General Information

1.0 Scope of Work

The United States Department of Agriculture (USDA) Foreign Agriculture Service (FAS) requires access to the Fitch Credit Ratings Research and BMI Sovereign Credit Solutions provided by Fitch Solutions, Inc., online subscription service for members of the FAS Risk and Asset Management (RAM) branch.

FAS requires an online subscription that provides ratings and research as well as leading analytical tools and ongoing surveillance. The subscription shall include in-depth bank analyses using the CAMEL (capital adequacy, asset quality, management, earnings, liquidity) analysis methodology commonly accepted by financial institutions and other entities that extend credit to banks. In addition, the service shall include macroeconomic indicators, foreign exchange rates, inflation and employment data, trade and current account balances, political risk assessments, and the fiscal statuses of foreign governments, which will enable RAM to review country risks and to establish country limits during the planning process for each fiscal year.

Only one subscription, Fitch Solutions, Inc., is available that provides this information.

RAM staff relies primarily upon reports generated by Fitch Solutions, Inc. to fully identify and analyze the financial condition of foreign banks that are granted credit limits in CCC’s Export Credit Guarantee Programs. RAM also uses these reports to validate the financial standing of U.S. banks that apply to participate as lenders in CCC’s Export Credit Guarantee programs. RAM staff also relies primarily on data collected and provided by Fitch to identify promising markets, assess and manage country-specific credit risks, and ultimately prevent potential defaults.

Fitch Credit Ratings Research and BMI Sovereign Credit Solutions is a proprietary, electronic analytical service available from one source.

2.0 Background

Fitch Credit Ratings Research and BMI Sovereign Credit Solution is a service provided by Fitch Solutions, Inc., part of the Fitch Group, a global leader in financial information services with operations in more than 30 countries. Fitch Credit Ratings Research and BMI Sovereign Credit Solution is an online subscription service that provides bank & country risk ratings and financial industry and macroeconomic data and research as well as leading analytical tools and ongoing surveillance. Included in the subscription is timely insights, objective opinions, credit analysis, as well as fundamental financials and market-based indicators on entities both rated and not rated by Fitch. Additionally, Fitch clients have access to experienced Fitch Ratings analysts all over the world to help them monitor up-to-the-minute rating changes, understand credit trends, and make informed investment decisions.

Fitch is the only external rating agency which specializes and focuses on banks, and they provide significantly more bank analyses than any other external rating agency. Fitch’s network of offices in numerous countries throughout the world enables them to provide in-depth research and analysis in a timely manner. The Fitch subscription includes in-depth bank analyses, using the CAMEL (capital adequacy, asset quality, management, earnings, liquidity) analysis methodology commonly accepted by financial institutions and other entities that extend credit to banks. Fitch also rates these foreign banks using a methodology that is standardized and accepted throughout the investment community, thereby allowing RAM to compare banks of similar ratings. These reports and updates are designed to fill the analysis gap that RAM has when trying to analyze a bank solely based on its financial statements and without being able to visit the bank on an annual basis.

The RAM branch reviews and approves limits for foreign countries and foreign banks for the Commodity Credit Corporation’s Export Credit Guarantee (GSM-102 and Facility Guarantee) Programs. Given limited travel funds, RAM can do very little travel to the countries in which these banks are domiciled. Therefore, RAM must utilize the reports generated by third parties such as Fitch Solutions, Inc. as a source of current information about countries, banking systems and specific foreign banks throughout the world to conduct financial analysis of these countries and foreign banks. Fitch has offices in many of these countries and spends significant time with each rated foreign bank to do an in-depth financial and risk analysis. Fitch also does an analysis of the sovereign government and the banking system in these countries.

They provide updates on the banks which they review semi-annually or annually and peer review reports for higher profile banks. This allows comparison of a bank’s relative strengths, weaknesses, and other factors to its peers. RAM relies on these reports to conduct economic, financial and risk analysis to establish country and bank credit limits. This subscription allows up to 9 users to access ongoing reviews and reports for the current portfolio which encompasses approximately 100 foreign banks (though not all are rated by external rating agencies). The subscription includes financial and risk analyses of these individual banks as well as the banking systems and the countries in which they are located and operate.

Contractor Requirements

3.0 Technical Requirements / Tasks

The RAM branch requires access to the Fitch subscription. This is an online web-based platform that provides comprehensive ratings and research as well as analytical tools and ongoing surveillance. The online database shall provide reports, financial statements, financial ratios supporting “CAMEL” analysis, credit ratings and banking industry as well as macroeconomic, fiscal, and political risk data for the following products: Fitch Credit Ratings Research for Global Banks and Sovereigns and BMI Sovereign Credit Solutions through Fitch Ratings Pro a technology platform which includes a web portal (formerly, Fitch Connect) for up to 9 users in RAM.

4.0 Government Furnished

There is no government provided property of facilities, and the contractor does not need access to government facilities.

FAS will provide the contractor with a listing of authorized RAM members to include name, email address and geographical location to establish team member accounts.

5.0 Deliverables / Schedule

The subscription services are required for a 12-month base period starting on the date of award, with four 12-month option periods.

6.0 Travel

Not Applicable

7.0 Contractor’s Key Personnel

Not Applicable

8.0 Security Requirements

Not Applicable

9.0 Data Rights

All content and associated information provided by FAS (e.g. email addresses) from users submitted remain the sole property of FAS. The vendor will never share information gathered through these services with third parties for any reason. This agreement will be executed in full compliance with the Privacy Act of 1974.

10.0 Section 508 – Electronic and Information Technology Standards The contractor shall ensure, to the maximum extent practicable, Section 508 Compliance with the performance and delivery outlined in the statement of work.