OMB Circular A-123 Consulting Services Task Order Request- Final- 8-17-12cbwms.doc

DISTRICT OF COLUMBIA COURTS

DISTRICT OF COLUMBIA SUPERIOR COURT

OFFICE OF CONTRACTS AND PROCUREMENT

REQUEST FOR PROPOSALS (RFP) FROM

GSA FEDERAL SUPPLY SCHEDULE CONTRACTORS

For

OMB Circular A-123 Consulting Services

REQUEST FOR TASK ORDER PROPOSAL (RFTOP)

NUMBER: DCSC-12-FS-0038

SOLICITATION IS RESTRICTED TO GENERAL FEDERAL SCHEDULE GSA Schedule 520 Financial and Business Solutions (FABS)

DATE ISSUED:

August 17, 2012

CLOSING DATE & TIME:

August 29, 2012, no later than 1:00 pm

TASK ORDER REQUEST FOR PROFESSIONAL SERVICES

The District of Columbia Courts is seeking proposals for the services of Certified Public Accountant firms on the Federal Government General Services Administration (GSA) Federal Supply Schedule under the GSA Schedule 520 Financial and Business Solutions (FABS)to perform an A-123 review of internal controls in accordance with OMB’s revised Circular No. A-123, Management’s Responsibility for Internal Controls, dated December 21, 2004 which was effective beginning fiscal year (FY) 2006.

The Contractor shall work onsite at the District of Columbia Courts location, in conjunction with the Internal Audit unit and the Budget and Finance Office to address the needs of the Courts. The Court contemplates a single award to one (1) Contractor for a contract term not to exceed 52 weeks from the date of award of the contract. The date of award shall be the date the Contracting Officer signs the contract award document.

1. Introduction The District of Columbia Courts ( hereafter referred to as DC Courts) is seeking the services of Certified Public Accounting firms on the Federal Government General Services Administration (GSA) Federal Supply Schedule under the GSA Schedule 520 Financial and Business Solutions (FABS) to perform an A-123 review of internal controls in accordance with OMB’s revised Circular No. A-123, Management’s Responsibility for Internal Controls, dated December 21, 2004 which was effective beginning fiscal year (FY) 2006.

OMB Circular No. A-123 defines management’s responsibility for internal controls in Federal agencies. The Circular provides guidance to Federal managers on improving the accountability and effectiveness of Federal programs and operations by establishing, assessing, correcting, and reporting on internal control. Management is responsible for establishing and maintaining internal control to achieve the objectives of effective and efficient operation, reliable financial reporting, and compliance with applicable laws and regulations.

The DC Courts is seeking to fully comply with the mandates of OMB Circular A-123 by taking systematic and proactive measures to (i) develop and implement appropriate, cost-effective internal control for results-oriented management; (ii) assess the adequacy of internal control in its programs and operations (iii) separately assess and document internal control over financial reporting consistent with the process defined in Appendix A of OMB Circular No. A-123; (iv) identify needed improvements; (v) take corresponding corrective action; and (vi) report annually on internal control through management assurance statements.

DC Courts Management has a fundamental responsibility to develop and maintain effective internal control. The proper stewardship of agency resources is an essential responsibility of agency managers and staff. Agency employees must ensure that its programs operate efficiently and its resources are used effectively to achieve desired objectives. Programs must operate and resources must be used consistent with agency missions, in compliance with laws and regulations, and with minimal potential for waste, fraud, and mismanagement.

DC Courts Management is responsible for developing and maintaining effective internal control. Effective internal control provides assurance that significant weaknesses in the design or operation of internal control, that could adversely affect the agency’s ability to meet its objectives, would be prevented or detected in a timely manner. Appropriate internal control should be integrated into each system established by agency management to direct and guide its operations. Internal control applies to program, operational and administrative areas as well as accounting and financial management.

The importance of internal control is addressed in many statutes and executive documents. The FMFIA establishes overall requirements with regard to internal control. The agency head must establish controls that reasonably ensure that: “(i) obligations and costs are in compliance with applicable law; (ii) funds, property, and other assets are safeguard against waste, loss, unauthorized use or misappropriation; and (iii) revenues and expenditures applicable to agency operations are properly recorded and accounted for to permit the preparation of accounts and reliable financial and statistical reports and to maintain accountability over the assets.” In addition, the agency head annually must evaluate and report on the control and financial systems that protect the integrity of its programs (Section 2 and Section 4 of FMFIA respectively). The three objectives of internal control are to ensure the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. The safeguard of assets is a subset of all of these objectives.

To ensure senior management involvement, many agencies have established their own senior management council, often chaired by the agency’s lead management official, to address management accountability and related issues within the broader context of agency operations. Relevant issues for such a council include ensuring the agency’s commitment to an appropriate system of internal control; actively overseeing the process of assessing internal controls, including non-financial as well as financial reporting objectives; recommending to the agency head which control deficiencies are material to disclose in the annual FMFIA report; and providing input for the level and priority of resource needs to correct these deficiencies. Many agencies use a Senior Management Council to assess and monitor deficiencies in internal control. A Senior Management Council, which may include the Chief Financial Officer, the Senior Procurement Executive, the Chief Information Officer, and the managers of other functional offices, should be involve in identifying and ensuring correction of systemic weaknesses relating to their respective functions. Such councils generally recommend to the agency head which reportable conditions are deemed to be material weaknesses to the agency as a whole, and should therefore be included in the annual FMFIA assurance statement and reported in the agency’s annual financial report.

At this instance, the DC Courts is seeking to develop a designated council or individuals to serve in this capacity. This council would be responsible for overseeing the timely implementation of corrective actions related to material weaknesses in financial reporting. Such a council may also be useful in determining when sufficient action has been taken to declare that a reportable condition or material weakness has been corrected. While the establishment of such a council is not a requirement of OMB A-123, a Senior Management Council or similar construct is encouraged.

2. Background The DC Courts were formed under the laws of the District of Columbia Code and operate under the Joint Committee on Judicial Administration, which is the policy-making body for the DC Courts. The DC Courts are comprised of the Court of Appeals, the Superior Court and the Court Systems. The mission of the DC Courts is to protect rights and liberties, uphold and interpret the law, and resolve disputes peacefully, fairly and effectively in the nation’s capital. Effective October 1, 1997, the “National Capital Revitalization and Self – Government Improvement Act of 1997” (Revitalization Act) effected major changes in the funding process for the DC Courts. Under the Revitalization Act, the Federal Government assumed responsibility for funding the DC Courts directly. However, the DC Courts are the judicial branch of the District of Columbia government. Consequently, the DC Courts for financial statement purposes have been complying with pronouncements of the Governmental Accounting standards board (GASB), which promulgates accounting standards for state and local governments. The DC Courts do not have any component units as defined by GASB Statement no. 14, the Financial Reporting Entity, because the DC Courts are fully funded by direct federal appropriations, and the DC Council and Mayor have no authority over the appointment of members of the Joint Committee.

The single Audit Act Amendment of 1996 (The Act), Public Law (P. L. 104 – 156), dated June 14, 1996, and OMB Circular A-133, as revised, requires that any state or local government that receives more than $500,000 in federal financial assistance must have an annual independent audit performed in accordance with applicable Federal laws, rules and regulations. Failure to comply with provisions of The Act could result in severe penalties, including requests for repayment to the Federal Government and loss of funding.

3. Scope of Work The Contractor shall perform an OMB Circular No. A-123 review of the District of Columbia Courts internal controls over financial reporting following the guidance set forth by OMB. Specifically, the Contractor shall perform the following tasks:

3.1 Entrance conference – An Entrance Conference will be scheduled with the Contractor and the Courts prior to the start of the compilation to discuss the engagement, deliverables, and the Courts’ and Contractor’s responsibilities.

3.2 Prepare and/or enhance the process flow documentation of the District of Columbia Courts internal control processes used in financial reporting, including documentation of the financial reporting process and process level controls over financial reporting.

3.3 Develop a Control Matrix document that outlines and indentifies all Entity and Activity level financial reporting internal controls; the risks related to controls; the financial reporting assertions related to the controls; and the budgetary accounts impacted by the control.

3.4 Identify and document the key controls that need to be evaluated and tested based on agree upon quantitative and qualitative materiality thresholds.

3.5 Develop detailed test plans and review protocols for each area in which the key controls were identified.

3.6 Perform testing of the design and operating effectiveness of key internal controls over financial reporting and identify any deficiencies in accordance with Appendix A of OMB Circular No. A-123.

3.7 Develop Control Deficiency Logs (CDLs) and Corrective Action Plans (CAPs) for all identified issues.

3.8 Develop electronic work papers that shall provide sufficient detail to enable an experienced reviewer having no previous connection to the review to understand from the review documentation the nature, timing, extent, and results of the review procedures performed; the reviewer evidence obtained; and its source and the conclusions.

3.8.1 Provide support to the District of Columbia Courts financial statement audit in order to minimize duplication of efforts, and create a more efficient review and audit process. Activities will include, but not be limited to, coordinating on-site activities to include Internal Audit Unit participation/observation (i.e. activities such as planning, scoping, testing approach, walkthrough of processes, documentation, and testing) making A-123 work papers and copies available, responding to audit questions, and attending meeting to discuss A-123 topics.

3.9 Progress Meetings and Reports: Contractor shall attend periodic status meetings with COTR and provide biweekly status reports that include but is not limited to completion of agreed upon contract milestones, changes in agreed upon approach, difficulties encountered that impede work completion and quality of work product and overall direction of contract performance. In addition a record of contractor’s total man-hours completed produced on a biweekly report.

4 DELIVERABLES

All Deliverables shall be in a form and manner acceptable to the Courts. The Contractor shall complete the tasks and provide to the COTR the deliverables specified below within the designated time frames:

1. (3.1)

Narrative and flow chart documents of DC Courts internal control process over financial reporting

Electronic copy in

MS Word & MS Visio

_18_ weeks after contract award

COTR

Electronic copy in MS Word

Electronic copy in MS Word

Electronic copy in MS Word

5. (3.4)

6. (3.5)

7. (3.5)

8. (3.6)

9. (3.7)

10. (3.8)

5 Period of Performance

The period of performance for this SOW is not to exceed 52 weeks or 4,056 work-hours performed simultaneously by one Senior Accountant and two Staff Accountants with qualifications outlined in the requirements of this RFTOP and Contractor commencing work from the first day of the contract execution. All the work to be performed at DC Courts facilities.

5.

Location of Work

The work shall be performed primarily at the following Court sites:

Moultrie Courthouse

Gallery Place Office 500 Indiana Ave., NW, 6th Floor

616 H Street, NW, 6th Floor Washington D.C. 20001-2131

Washington D.C. 20001-2131 The following sites will be accessible and utilized on ad hoc basis:

Building A

Building B

515 5th Street NW

510 4th Street, NW Washington D.C 20001-2131

Washington D.C 20001-2131

Building C 410 E Street, NW Washington D.C 20001-2131 6.

Records Retention

6.1 All electronic and paper documents, forms, survey instruments, background materials secured as part of this contract shall be considered the property of the DC Courts.

6.2 At the request of the COTR, the Contractor shall periodically review these resource materials with the COTR and establish file and retention plans.

6.3 No later than fourteen (14) days before the close-out of the contract, the contractor shall review with the COTR all project-related materials and agree on a disposition plan for the contract closeout. The SOW is not complete until all deliverables are accepted and approved by the COTR.

7.

Supervision

In fulfilling the requirements of this contract, the Contractor shall:

7.1 Continuously monitor the status of work, providing COTR with timely information regarding possible problems and proposed action required to mitigate such problems.

7.2 Continuously communicate status of the work relative to the approved schedule. This requirement may be fulfilled by timely filing of the weekly status reports by contractor’s staff as required under the project management protocols.

7.3 Assure that staff working under this contract provides weekly status report throughout the performance of the contractor’s work, setting out current and upcoming activities, decisions required and issues of concern. [Note: Timely, complete, and satisfactory provision by the contractor to the DC Courts of such reports shall be a condition precedent to payment of the contractor.]

7.4 Assure that every two weeks (or as otherwise specified) staff working under this contract provide progress updates to the COTR that enable an updating of the project plan reflecting progress in completing scheduled work.

8.

Contract Administration:

8.1 Contracting Officer’s Technical Representative (COTR): The COTR is responsible for general administration of the contract and advising the Contracting Officer as to the Contractor’s performance or non-performance of the contract requirements. In addition, the COTR is responsible for the day-to-day monitoring and supervision of the contract. The COTR shall be:

Mr. Darryl Lesesne Chief Internal Auditor DC Courts Executive Office 500 Indiana Ave, 6th floor Washington DC, 20001

Telephone Number: 202-879-1783 9.

Term of Contract:

13.1 The term of the contract shall not exceed one year from the date of award of the contract or 4,056 hours () for completion of SOW requirements. The date of award shall be the date the Contracting Officer signs the contract document.

10.

Contract Type:

This is a firm-fixed unit contract based upon hourly rates, based upon an estimated maximum of 4,056 hours allowed for completion of SOW.

11.

Multi-year Contracts

If this contract is a multiyear contract, then the following provision is made part of the contract:

11.1 If funds are not appropriated or otherwise made available for the continued performance in a subsequent year of a multiyear contract, the contract for the subsequent year shall be terminated, either automatically or in accordance with the termination clause of the contract.

11.2 Unless otherwise provided for in the contract, the effect of termination is to discharge both the Court and the Contractor from future performance of the contract, but not from the existing obligations.

11.3 The Contractor shall be reimbursed for the reasonable value of any non-recurring costs incurred but not amortized in the price of the supplies or services delivered under the contract.

12.

Cancellation Ceiling.

12.1 In the event of cancellation of the contract because of nonappropriation for any fiscal year after fiscal year 2012, there shall be a cancellation ceiling of zero dollars representing reasonable preproduction and nonrecurring costs, which would be applicable to the items or services being furnished and normally amortized over the life of the contract.

13.

Proposal Submission Information

13.1 Each firm shall submit technical and price proposals in accordance with the performance of work specified in the Scope of Work/Requirements of this Request for Task Order. At a minimum, the contractor’s bona-fide proposals shall contain the requested information and documentation listed in Item Numbers 22 and 23 of this Task Order Request as it relates to accomplishing the requirements stated in Scope of Work/Requirements and at what price is offered.

13.2 Each firm shall submit an original and six (6) copies of their technical proposal and original and six (6) copies of their price proposal. Proposals shall be submitted in a sealed envelope clearly marked in the lower left corner with the following:

13.2.1 Solicitation Number:

DCSC-12-FS-0038

Title:

“Task Order Request for OMB Circular A-123 Consulting Services”

Closing Date/Time:

August 29, 2012, no later than 1:00 P.M.

14.

Offerors submitting their proposals by mail must mail their proposals to the following address:

District of Columbia Courts

Administrative Services Division

Procurement and Contracts Branch

Attn: Callie Byrd-Williams, Senior Contract Specialist

616 H Street, N.W., Suite 622

Washington, D.C. 20001

15.

Offerors submitting their proposals by hand delivery/courier services must hand deliver their proposals to the following address:

Attn: Callie Byrd-Williams, Senior Contract Specialist

701 7th Street, N.W., Suite 622

Washington, D.C. 20001

16.

Questions concerning this Request must be directed by e-mail to:

Callie Byrd-Williams, Senior Contract Specialist

E-mail address:

callie.williams@dcsc.gov 17.

Explanation to Prospective Offerors/Bidders 17.1 Any prospective Offeror desiring an explanation or interpretation of this solicitation must request it by email no later than close of business, August 22, 2012.

18.

Technical Proposal Format and Content:

18.1 Volume I - Technical Proposal shall be comprised of the following Sections:

18.1.1 Section A – Knowledge/experience/working ability and understanding of OMB Circular No. A-123, Management’s Responsibility for Internal Control, Appendix A The Offeror shall provide evidence which clearly shows knowledge, experience, working ability and understanding of OMB Circular No. A-123 - Management’s Responsibility for Internal Control, Appendix A. Offeror shall list prior experience and past performance in performing OMB Revised Circular A-123 assessments.

18.1.2 Section B – Offeror’s ability to evaluate internal control structure

The Offeror provide evidence of his ability to evaluate an organization’s internal control structure to achieve effective and efficiency of operations, reliability of financial reporting, and compliance with laws and applicable regulations. The Offeror shall provide a comprehensive plan to accomplish the work described herein.

18.1.3 Section C – Qualifications of proposed staff

The Offeror shall submit, at minimum, the following information for each proposed staff member utilizing under this contract:

1. Background;

2. Years of experience;

3. Degrees, Certifications, etc.; and

4. Previous work performed.

18.1.4 Section D -

Past Performance The Offeror shall provide a list of past performance to include, at minimum, the following:

Three (3) letters of reference to include information about previously performed District or federal or private entity contracts providing the same or similar services. (See Attachment J.3) For each reference, the Offeror shall submit the following information:

1. Name of Contracting Organization, Contracting Officer, and Contract Number;

2. Contract Type;

3. Total Contract Value; and

4. Description of Requirements.

Offeror; no partial awards will be made.

19. Volume II – Price Proposal

19.1 Volume II - Price Proposal shall be comprised of the following Sections:

19.1.1 Section A – Detailed Breakdown of Price

19.1.2 At a minimum the price proposal shall:

1. Identify the number of hours, hourly rates and extended price; and

2. Identify the total price and include a summary of all items/SINS proposed.

3. Identify any discounts from your GSA Schedule Price.

19.1.3 Note: This is a request for proposals from GSA Federal Supply Schedule Contractors under the Schedule 520 Financial and Business Solutions (FABS). All firms submitting proposals in reference to this request shall include a copy of their current GSA Federal Supply Contract(s).

20.

Evaluation of Proposals

The contract will be awarded to the Offeror whose proposal is most advantageous to the Courts, based upon the evaluation criteria specified below. Thus, while the points in the evaluation criteria indicate their relative importance, the total scores will not necessarily be determinative of award. Rather, the total score will guide the Courts in making an intelligent award decision based upon the evaluation criteria. The Courts reserves the right to reject any or all proposals determined to be inadequate or unacceptable. The Courts may award a contract upon the basis of initial offers received, without discussions. Therefore, each initial offer should contain the Offeror's best terms.

21.

Evaluation and Selection Criteria

Proposals will be evaluated with points assigned to each section as follows:

Evaluation Criteria

Point Range A. Knowledge, experience, working ability, and understanding of OMB Circular No. A-123, Management’s Responsibility for Internal Control, Appendix A

35___ B. Offeror’s ability to evaluate internal control structure 20___

C. Qualifications of proposed staff

35___ D. Past Performance

10___ Total Points

E. Price

The Courts will not rate or score price, but will evaluate each offeror’s price proposal for realism, reasonableness, and completeness. This evaluation will reflect the offeror understands of the solicitation requirements and the validity of the offeror’s approach to performing the work. Although the technical response is greatly more important than price, the closer the technical evaluations, the greater influence price will have on the selection. Alternative price proposals will not be considered by the Courts.

22.

Pricing Proposal Format: The offeror’s price proposal shall include all costs for the required services.

001AA

Mid-level Professional Staff _____ Estimated Labor Hrs. (LH) *Indicate price per hour $___________ per LH

001AB

Senior-Level Professional Staff _____ LH *Indicate price per hour $_________ per LH

001AA

Mid-level Professional Staff _____ Estimated Labor Hrs. (LH) *Indicate price per hour $___________ per LH

001AB

001AA

Mid-level Professional Staff _____ Estimated Labor Hrs. (LH) *Indicate price per hour $___________ per LH

001AB

001AA

Mid-level Professional Staff _____ Estimated Labor Hrs. (LH) *Indicate price per hour $___________ per LH

001AB

001AA

Mid-level Professional Staff _____ Estimated Labor Hrs. (LH) *Indicate price per hour $___________ per LH

001AB

001AA

Mid-level Professional Staff _____ Estimated Labor Hrs. (LH) *Indicate price per hour $___________ per LH

001AB

23.

Incorporated Documents

The following documents are incorporated and made a part of this solicitation:

23.1 D.C. Courts General Contract Provisions, April 2007 (Attachment J.1) 23.2 Tax Certification Affidavit (Attachment J.2) 23.3 Past Performance Evaluation Form (Attachment J.3)