Attachment 8 Special Standards of Responsibility.pdf

DJM-13-A32-R-0003

SPECIAL STANDARDS OF RESPONSIBILITY

Attachment 8

The following data is necessary for the Government to complete the requirements of Solicitation

DJM-13-A32-R-0003 Section L.7, Special Standards of Responsibility Demonstration of

Financial Capability. Please label all information you provide according to the number of the item that it is responsive to below, and provide all data in electronic format when possible:

1. General Information

1. Contact information (name, phone, fax, email) for those providing the information requested and participating in any necessary follow-up interviews.

2. A brief Company history, including the date and place of incorporation, as well as the full name of the top executives (e.g. CEO, CFO, COO, Managing Partners, Board of Directors).

3. A summary of any planned or anticipated changes to the current operations, including a copy of any documented strategic plans.

4. An organizational chart along with the entity’s full legal name (including any trade or other names used in doing business), and a description of current corporate structure, including parent companies, subsidiaries, affiliates, and any other financial parties with fiduciary interests.

5. Information on any contingent liabilities, ongoing or future contractual obligations, or any existing past, threatened, ongoing, and/or pending litigation.

2. Financial information

A. Historical financial statements

1. Detailed financial statements, certified by an independent public accountant for the prior five fiscal years and interim quarters, including:

Balance sheets, income statements, bank statements, cash flow statements and notes

Any historical projections or budget-to-actual income statements

Any restatement of historical financial statements to reflect discontinued operations

Information regarding any unusual, nonrecurring, extraordinary, or special accounting items during not specifically disclosed in the financial statements

Method of costing inventory (e.g. FIFO, LIFO, average cost)

2. A schedule of the current debt held, including the coupon/interest rates, any debt covenants, and other key terms.

3. Details of any significant off-balance sheet financing.

4. A schedule of pension and/or profit sharing contributions and commitments the Company made during the past five fiscal years.

5. Information on any off-balance sheet liabilities (such as pending litigation, compliance requirements, service liabilities, etc.). Details on any investments held in corporations, partnerships and/or joint ventures, including the interest held and a description of the investment.

B. Other financial information

1. Board approved projections for a five-year period. Include:

A schedule of any anticipated depreciation, capital expenditures, working capital, interest expense, extraordinary cash inflows/outflows, and financing needs

Expectations of long-term normalized growth rates

Financing plan related to the potential USMS contract award

2. Details regarding the assumptions used in the buildup of the projections. Any analyses by management concerning the estimated cost of equity and/or the

Company’s weighted average cost of capital.

3. Financial ratios that must be maintained to comply with any relevant lender credit terms.

4. Expectations of long-term normalized growth rates (five years out and beyond).

5. Marginal tax rates of the Company.

6. A description of any net operating losses, including details on any limitations of use and expiration dates.

7. Payroll information such as projected aggregate monthly payroll expenses and headcounts.

8. If not disclosed appropriately in the aforementioned financial statements, include a description about any previous corporate insolvency, or any personal insolvency of key personnel that may impact the business debt covenants, and other key terms.

9. Be able to show financial assets sufficient to support at least three (3) months of total payroll and all other operating expenses necessary to meet the terms and conditions of the contracts.

Company information

A. Operations

1. Describe significant operating expenses.

2. Provide a schedule of the Company’s major customers for the last three years.

Also describe:

The geographical distribution of sales

Any seasonal aspect to sales

What percentage of revenues comes from repeat customers

B. Transactions

1. Provide details on any recent acquisitions or divestitures.

2. Provide details of any recent transactions related to the Company’s stock.

C. Competition & Industry

1. Describe the Company’s overall market, including its definition, future prospects, market size, and anticipated growth.

2. List competitors, including:

Basis of competition (e.g. price, service, quality, location, etc.)

Information concerning the market area served and market share held by the Company and its competitors for each major line of business

The Company’s advantages and disadvantages compared to each competitor

3. Provide any information on ranking or specialization within the industry.

4. Information concerning any governmental policy or industry regulations that affect the Company’s operations.

Note: As is common with this type of analysis, it may be necessary for the Government to obtain additional or follow-up information from you. If such an instance arises, we will contact you as soon as we become aware of the need for any additional detail.