Draft_OID_SOWv6 (Attachment 1).docx

Statement of Work (SOW) Preparation of Original Issue Discount (OID) Tables for IRS Publication 1212 Table of Contents

C.1. Overview This contract provides support for the annual preparation and release of Pub. 1212, Guide to Original Discount (OID) Instruments, which lists Original Issue Discount (OID) instruments. The contractor will manage the OID bond data repository, contact issuers to correct discrepancies, calculate OID accruals, and produce tables for publication. The results will be made publicly available to support compliance by financial institutions, brokers, and taxpayers.

1. BACKGROUND

Currently, the IRS is required to provide OID information to brokers, middlemen, and the public on an annual basis. Pub. 1212 provides the necessary data to perform various financial calculations and references a list of OID debt instruments (bonds) posted on the IRS website (IRS.gov/Pub1212).

The information is collected from various sources but primarily from completed Forms 8281, Information Return for Publicly Offered Original Issue Discount Instruments. The resulting OID tables include income amounts to be reported on information returns for each calendar year, calculated through a variety of methods, generating approximately 100 to 150 pages of tables.

2. OBJECTIVE

The objective of this acquisition is for the contractor to gather, analyze, process, and format bond information into accurate and complete OID tables that will be posted to the IRS website. The contractor shall maintain the established structure and format of Pub. 1212 OID tables to preserve historical continuity for users. For the most recent years, the approximate counts were as follows:

· Tax year 2020: 6,038 bonds

· Tax year 2021: 5,816 bonds

· Tax year 2022: 6,876 bonds

· Tax year 2023: 8,705 bonds

· Tax year 2024: 10,025 bonds

These figures reflect a growth trend, which contractors must account for in pricing and resource allocation. Exact figures for future periods cannot be guaranteed.

3. SCOPE OF WORK

3.1 General Requirements

· Provide all necessary labor, postage, shipping charges, research, contacts, communications, reports, supplies, equipment, and project management.

· Perform services at the contractor’s facility located within the United States. No work will be performed on-site at IRS facilities unless separately authorized in writing by the Contracting Officer (CO).

· Maintain and update a secure Lifetime OID accrual schedule from source documents provided by the IRS.

· Perform outreach to issuers to resolve missing or inaccurate Form 8281 information.

· Ensure all outputs are compliant with Section 508 accessibility requirements (Section508.gov).

· Deliver final outputs in TXT, PDF, and XLSX formats unless otherwise specified.

· Ensure all table columns are fully visible and properly formatted in each output format.

· Perform all OID calculations using semi-annual accrual periods, adjusting issue prices accordingly.

· Maintain a detailed audit trail of all database changes.

· The contractor shall retain and dispose of all IRS-provided source documents, Form 8281 data, Lifetime OID accrual schedule, and related working documents strictly in accordance with IRS Records Control Schedule (Document 12990) and applicable NARA guidelines. Disposition actions must be documented, and certificates of disposal (Form 11671) completed prior to destruction.

3.2 Specific Tasks

· The contractor shall maintain and update comprehensive Lifetime OID accrual schedule. For existing bonds, the contractor must either secure historical Lifetime OID accrual schedule from the IRS or accurately reconstruct these schedule, ensuring historical continuity and data integrity for Pub. 1212.

· Perform OID calculations and called bond adjustments per IRS guidance.

· Identify and remove called bonds from the Lifetime OID accrual schedule and Pub. 1212 OID tables.

· Called bonds are debt instruments redeemed before maturity and must be excluded from Pub. 1212 to prevent inaccurate tax reporting. The contractor is responsible for ensuring that all called bonds are excluded from the Draft and Final Pub. 1212 OID tables.

· Produce Pub. 1212 OID tables in accordance with historical formatting standards.

· Provide Draft OID Tables by November 15 annually and Final OID Tables by January 15 annually.

· The contractor shall anticipate an average of 10–30 public inquiries annually related to the Pub. 1212 OID tables and must respond to each within 48 business hours.

· Assist with issue resolution and promptly alert the Contracting Officer’s Representative (COR) if deadlines may be missed.

· Correct any output errors within 24 hours of notification, or provide an estimated correction time to the COR.

· Complete all required IRS contractor training (Security Awareness, UNAX, etc.) within the deadlines set by the COR.

3.3 Deliverables

All deliverables shall be submitted electronically to the COR via secure IRS-approved transmission methods, including but not limited to Secure Data Transfer (SDT), Secure File Transfer Protocol (SFTP), SharePoint, or email. The COR will provide detailed submission instructions upon contract award. If the contractor is unable to access the designated IRS-approved transmission method, the contractor shall immediately notify the COR to coordinate an alternative submission method that meets IRS security requirements.

Deliverables are due on the dates specified below. If a deliverable is due on a weekend or federal holiday, submit it by the next business day.

The COR will review each deliverable for compliance with the requirements outlined in this SOW. Deliverables that do not meet quality standards—including accuracy, completeness, and formatting—will be rejected. The contractor shall correct all deficiencies at no additional cost to the government and resubmit the deliverable within five (5) business days of receiving notice of rejection.

Any changes to the required file formats or delivery methods must be approved in writing by the COR prior to submission.

The table below outlines the required deliverables, due dates, delivery methods, and file formats:

3.4 Inspection and Acceptance

Deliverables will be inspected and accepted by the COR. Acceptance criteria vary by deliverable and may include timely delivery, completeness, compliance with formatting requirements, and adherence to accessibility and data integrity standards as defined in Section 3.4. Specific acceptance criteria for each deliverable are provided in the Deliverables Table in Section 3.3.

Deliverables not meeting the required quality or deadline requirements must be corrected at no additional cost to the government. The COR will notify the contractor in writing of any deficiencies, which must be resolved within the specified timeframe or as otherwise agreed in writing.

3.5 Columns and Data Structures

The contractor must fully and accurately fill all required fields and columns in the Lifetime OID accrual schedule and Pub. 1212 OID tables, as specified in Section 3.3 final deliverables. These fields and columns ensure consistency, completeness, and compliance with IRS requirements for OID reporting.

Lifetime OID Accrual Schedule Required Fields:

· Serial number (top-right of Form 8281)

· Issuer name

· CUSIP number

· Issue date

· Maturity date

· Issue price (%)

· Stated interest rate (%)

· Yield to maturity (%)

· Comments (Roman numeral classification and explanatory notes)

· Begin date

· End date

· Days

· Adjusted issue price

· Daily OID

· Period OID

· 180-day period OID

· Called date

· Contact name

· Address line 1

· Address line 2

· City

· State

· ZIP Code

· Telephone number Pub. 1212 OID Table Required Columns:

The contractor shall ensure that the Pub. 1212 OID tables (which are the draft and final outputs) include the following columns for each OID instrument:

· Issuer name

· CUSIP number

· Issue date

· Maturity date

· Issue price (%)

· Stated interest rate (%)

· Yield to maturity (%)

· Total OID accrued up to January 1 of the current calendar year

· OID for each accrual period

· OID for the current calendar year and the subsequent year

· Comments (as applicable) Historical Format Requirement:

All outputs must match the historical format and order of columns used in prior editions of Pub. 1212 to preserve continuity for users. For reference, contractors can view past versions and column layouts at IRS.gov/Pub1212. Proposed modifications to columns, labels, or data structures should be documented and submitted to the COR for review and approval before they are implemented.

The contractor shall not subcontract the preparation or publication of the OID tables without written approval from the CO. All data handling and computation must comply with IRS data security standards and applicable federal standards, including but not limited to:

· IRS IT Security Policy (IRM 10.8.1),

· Section 6103(n) of the Internal Revenue Code,

· The Federal Information Security Modernization Act of 2014 (FISMA 2014) (Public Law 113-283), and

· The National Institute of Standards and Technology (NIST) Special Publication 800-53.

Contractors must consult IRS Pub. 4812, Contractor Security Controls, for comprehensive guidance. Vendors must ensure secure storage, access, and transmission of taxpayer data in accordance with these standards.

The contractor is responsible for timely contact and resolution of missing or inconsistent Form 8281 data. If records cannot be reconciled after due diligence, a flag shall be added to the comments column and escalated to the COR for further guidance.

3.6 Limitations and Exclusions

This contract does not include IRS system integration, system development, or publication layout design for print or IRS web formatting. The contractor is responsible solely for providing data files and tables as outlined in Section 3.

4. PERFORMANCE REQUIREMENTS AND ACCEPTABLE QUALITY LEVELS (AQLs)

5. DELIVERABLE CORRECTIONS

If any deliverable is determined to be inaccurate, incomplete, or otherwise noncompliant with contract requirements, the COR will notify the contractor in writing within five (5) business days. The contractor shall correct all deficiencies at no additional cost to the government and resubmit the deliverable for acceptance within five (5) business days of receiving the notice of rejection.

6. CONTRACTOR QUALITY CONTROL

The contractor’s Quality Assurance Plan (QAP) shall include procedures for reconciling discrepancies with bond issuers. If discrepancies cannot be resolved, the contractor shall flag the issue in the data and escalate it to the COR. Resolution attempts and outcomes must be summarized in each semi-annual quality assurance report.

· Submit a QAP within 30 days of contract award. (See also Section 3.3 Deliverables Table.)

· Conduct internal quality reviews quarterly.

· Maintain secure backups of all databases and outputs.

· Track and document all changes.

· Proofread and validate all deliverables prior to submission.

· Submit semi-annual quality assurance reports.

7. COMMUNICATION REQUIREMENTS

· The contractor shall designate a primary point of contact (POC) responsible for all communications with the COR. The contractor shall also designate an alternate POC who can act in the primary POC’s absence. Both contacts’ names, email addresses, and phone numbers must be provided to the COR within ten (10) business days of contract award.

· The contractor shall notify the COR immediately in writing of any issue impacting deliverables or any changes to these POCs within one (1) business day of such change.

· All communications shall be documented by email unless an alternative method is authorized by the COR or CO.

· The contractor shall provide written email notification to the COR at least sixty (60) days prior to the expiration of each base or option period to ensure continuity of services and facilitate contract administration. Failure to provide timely notification to the COR may result in corrective actions consistent with contract terms.

8. PERIOD OF PERFORMANCE

The contract period of performance will commence on February 1 and conclude on January 31 of the subsequent year. This framework provides the contractor with adequate time to complete and submit the annual tables, which are due by January 15 and must cover the entirety of the previous calendar year. All tasks must be performed within the contract’s designated period of performance; invoices for work conducted outside this timeframe will not be accepted.

The contract includes a 12-month base period and four (4) 12-month option periods, as follows:

· Base period 1: February 1, 2027–January 31, 2028

· Option period 1: February 1, 2028–January 31, 2029

· Option period 2: February 1, 2029–January 31, 2030

· Option period 3: February 1, 2030–January 31, 2031

· Option period 4: February 1, 2031–January 31, 2032 The contractor must complete all work for the January 15 deliverable within the specified period of performance to ensure timely submission.

The contractor must submit quarterly progress reports covering deliverable status, completed tasks, upcoming milestones, and project risks. Regular meetings with the COR are required to review reports and discuss needed adjustments or support for successful completion.

9. INFORMATION SECURITY AND TRAINING

· Contractor personnel shall complete all IRS-mandated training, including Security Awareness, UNAX (unauthorized access), and PII (personally identifiable information) Handling, before receiving access to IRS systems or taxpayer data. Certification of completion shall be submitted to the COR upon request.

· Comply with FISMA 2014 (Public Law 113-283).

· Adhere to the guidelines set forth by the Cybersecurity and Infrastructure Security Agency (CISA) and NIST.

· Follow IRS IT Security Policy (IRM 10.8.1).

· Report any data incidents immediately to the IRS Computer Security Incident Response Center (CSIRC).

· Protect taxpayer information under the Privacy Act and section 6103 of the Internal Revenue Code.

Store and transmit all deliverables and IRS data according to IRS security standards, using encryption as needed. Mail documents per IRS protocols to keep information secure and confidential. Only authorized personnel may access secured systems handling IRS data. Deliverables must be sent via secure, IRS-approved methods detailed in Section 3.3. Report any unauthorized access, loss, or data corruption immediately to IRS CSIRC and the COR.

10. GOVERNMENT-FURNISHED PROPERTY (GFP)

· Copies of Forms 8281 and attachments.

· Prior-year Pub. 1212 ASCII files and related outputs.

11. GOVERNMENT-FURNISHED INFORMATION AND SUPPORT (GFI/GFS)

The IRS will provide the following GFI/GFS to the contractor:

· Access to IRS technical experts for clarifications.

· Prior contractor’s Lifetime OID accrual schedule or equivalent historical accrual datasets will be provided if available. These tables track accrual data for each bond across its lifespan and are necessary to ensure continuity and accuracy in future OID table generation. In the event such data is unavailable or incomplete, the contractor shall be responsible for recreating any required accrual history using Forms 8281 and prior-year Pub. 1212 files.

12. INVOICING AND PAYMENT

· Invoices are due by the 5th business day of each month.

· Invoices must reference completed deliverables.

· Invoices are to be submitted only for work completed within the current period of performance (Feb. 1–Jan. 31).

· The contractor shall submit the invoice for the January 15 deliverable no later than January 31 of the same performance period.

13. OWNERSHIP OF DATA, DELIVERABLES, AND WORK PRODUCTS

All deliverables under this contract are exclusively owned by the IRS.

The contractor shall retain all IRS-furnished and -derived data, including Forms 8281, source materials, and working databases, for the duration of the contract and any applicable IRS-defined retention period thereafter. Upon completion of the retention period, the contractor shall return the data to the IRS or certify secure destruction, consistent with IRS Pubs. 4761 and 4465-A. The COR will provide the mailing address and security procedures upon request. Upon confirmation from the COR that all materials have been received by the IRS, electronic records are to be securely deleted in accordance with established procedures. Data may not be retained beyond the duration of the contract unless prior written authorization is obtained from the COR and such retention complies with IRS data retention policies.

14. CONFIDENTIALITY AND LEGAL AUTHORITY

Form 8281 and its attachments contain taxpayer return information protected by Internal Revenue Code section 6103(n). The contractor must follow all laws and regulations regarding the confidentiality and use of this data. Unauthorized access or disclosure is prohibited and may result in penalties under 26 U.S.C. sections 6103, 7213, and 7431.

15. REFERENCES

· FISMA 2014 (Public Law 113-283): https://www.congress.gov/bill/113th-congress/senate-bill/2521

· NIST Special Publication 800-53 Rev. 5: https://csrc.nist.gov/publications/detail/sp/800-53/rev-5/final

· Privacy Act of 1974: https://www.justice.gov/opcl/privacy-act-1974

· IRS IRM 10.5.5—UNAX Program Policy: https://www.irs.gov/irm/part10/irm_10-005-005

· IRS Pub. 4761, Protecting Taxpayer Data: https://www.irs.gov/pub/irs-pdf/p4761.pdf

· IRS Pub. 4465-A, Contractor Responsibilities: https://www.irs.gov/pub/irs-pdf/p4465a.pdf