FMO RFP Section C thru M Final Version 30 Apr 2009 Amend't 0002.doc

DTFT06-09-R-00012

Attachment # 3 Section C - Descriptions and Specifications

Statement of Work (SOW)

For

Financial Management Oversight Program (FMO)

PART 1

GENERAL INFORMATION

1.1 Description of Services/Introduction: The contractor shall provide all personnel, supervision as non-personal services necessary to perform Financial Management Oversight support as defined in this Statement of Work (SOW) at locations to be specified in individual task orders. The contractor shall perform to the standards in this contract.

1.2 Background: The Financial Management Oversight (FMO) program was established in July 1991 and is authorized by 49 U.S.C. 5327(c). This section authorizes the Federal Transit Administration (FTA) to conduct oversight activities such as management and financial compliance reviews, and audits of grantees. This SOW consists of a series of tasks that constitute continuing and new work efforts in support of the FMO mission.

1.3 Objectives: The objectives of this SOW are to provide expertise to assist with the conduct of financial management oversight reviews and assessments including: (1) Full Scope Financial Management System Reviews (Full Scope Review); (2) Follow-up to Full Scope Financial Management System Review (Follow-up Review); (3) Cost Allocation Plan review (CAP review); (4) Agreed-Upon Procedures; (5) FMO Financial Condition, Capability and/or Capacity Assessment (non New Starts); (6) Update Financial Management Oversight Resource Manual; (7) FMO Training; (8) FMO program Reports; and, (9) Oversight Program Support and Special Assignments.

1.4 Scope: The scope of this SOW includes tasks to assure the Federal Transit Administration (FTA) can discharge its financial management oversight responsibilities. The FMO program facilitates the FTA required assurances that Grantees have sound financial management systems and adequate internal controls to manage the Federal funds and to determine the general financial condition of a Grantee, its non-federal funding entities and the financial capability of the grantee to maintain its ongoing operations.

The specific tasks described above will require resource support as follows:

1.4.1 Transit industry experience to conduct Financial Management Oversight Reviews;

1.4.1.2 Certified Public Accounting (CPA) Firms are required to perform financial management oversight reviews of selected grantees’ financial management systems. The CPA Firms must demonstrate knowledge of the transit industry and Federal regulations related to the FTA financial management oversight in order to report on, not to change, the FTA grantee's financial management system. The Firms must be CPAs in good standing with licensing requirements. The proposed staff shall include a range of senior to junior staff necessary to provide adequate basis for the contractor's professional, external, independent and objective opinion in accordance with applicable American Institute of Certified Public Accountants (AICPA) Professional Standards, the Committee of Sponsoring Organizations (COSO); and,

1.4.1.3 Transit Financial Analysts to conduct FMO financial condition, capability and/or assessments of selected grantees.

NOTE: Offeror’s do not have to be a CPA firm, but, all Prime awardees are required to have dedicated full-time CPA(s), FMO program manager, and transit financial analyst(s) on its staff to support the FMO program efforts.

1.5 Period of Performance: The period of performance shall be for one (1) Base Period of Twelve (12) months and Four (4) 12-month Option Periods. The Period of Performance (POP) reads as follows:

Base Period

01 July 2009 thru 30 June 2010

Option Year I

01 July 2010 thru 30 June 2011

Option Year II

01 July 2011 thru 30 June 2012

Option Year III

01 July 2012 thru 30 June 2013

Option Year IV

01 July 2013 thru 30 June 2014

The Government reserves the right to extend the term of this contract at the prices set forth in Section B in accordance with the terms and conditions contained in clause 52.217-9 entitled, “Option to Extend the Term of the Contact”.

1.6 General Information

1.6.1 Recognized Holidays:

New Year’s Day

Labor Day

Martin Luther King Jr.’s Birthday

Columbus Day

President’s Day

Veteran’s Day

Memorial Day

Thanksgiving Day

Independence Day

Christmas Day

1.6.2 Type of Contract: The government anticipates award of a 8(a) Competitive, Indefinite Delivery Indefinite Quantity Fixed Priced contract with Fixed Labor rates.

1.6.2.1 Government Issued ID: The Contractor shall establish and implement methods of making sure all ID Cards issued to the Contractor by the Government are not lost or misplaced and are not used by unauthorized persons. The Contractor shall develop procedures covering ID control that shall be included in the Quality Control Plan. Such procedures shall include turn-in of any issued ID’s by personnel who no longer require ID’s. The Contractor shall immediately report any occurrences of lost or duplicate ID’s to the COTR or the Contracting Officer.

1.6.2.2 The Contractor shall prohibit the use of Government issued ID’s by any persons other than the Contractor’s employees assigned full-time under the FMO contract.

1.6.3 Post Award Conference/Periodic Progress Meetings: The Contractor agrees to attend any post award conference convened by the contracting activity or contract administration office in accordance with Federal Acquisition Regulation Subpart 42.5. The Contracting Officer (CO), Contracting Officers Technical Representative (COTR), and other Government personnel, as appropriate, may meet periodically with the contractor to review the contractor's performance. At these meetings the CO or COTR will apprise the contractor of how the government views the contractor's performance and the contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the government.

1.6.4 Contracting Officer technical Representative (COTR): The (COTR) is identified below:

TO BE INSERTED AT TIME OF AWARD

The COTR monitors all technical aspects of the contract and assists in contract administration. The COTR is authorized to perform the following functions: (1) assure that the Contractor performs the technical requirements of the contract; (2) perform inspections necessary in connection with contract performance; (3) maintain written and oral communications with the Contractor concerning technical aspects of the contract; (4) issue written interpretations of technical requirements, including Government specifications; (5) monitor Contractor's performance and notifies both the Contracting Officer and Contractor of any deficiencies. A memo of designation issued to the COTR, a copy of which is sent to the Contractor, states the responsibilities and limitations of the COTR, especially with regard to changes in cost or price and estimates. The COTR is not authorized to change any of the terms and conditions of the resulting contract.

1.6.11 Contract Manager: The contractor shall provide a contract manager who shall be responsible for the performance of the work. The name of this person and an alternate who shall act for the contractor when the manager is absent shall be designated in writing to the contracting officer. The contract manager or alternate shall have full authority to act for the contractor on all contract matters relating to daily operation of this contract.

1.6.12 Identification of Contractor Employees: All contract personnel attending meetings, answering Government telephones, and working in other situations where their contractor status is not obvious to third parties are required to identify themselves as such to avoid creating an impression in the minds of members of the public that they are Government officials. They must also ensure that all documents or reports produced by contractors are suitably marked as contractor products or that contractor participation is appropriately disclosed.

PART 2

DEFINITIONS & ACRONYMS

(This section includes all special terms and phrases used in the SOW. The definition must clearly establish what is meant. Each definition provided should be carefully considered, for that definition becomes binding for all requirements in the contract. This section should also contain a complete listing of all acronyms used, giving both the acronyms and the words represented by the acronym).

Defective Service. A service output that does not meet the standard of performance as defined in the Statement of Work.

Contracting Officer’s Technical Representative (COTR): A representative from the requiring activity assigned by the Contracting Officer to perform surveillance and to act as liaison to the contractor

CPA – Certified Public Accountant

FMO – Financial Management Oversight

FTA–Federal Transit Administration

SOW – Statement of Work

PART 3

GOVERNMENT FURNISHED PROPERTY, EQUIPMENT, AND SERVICES

N/A

PART 4

CONTRACTOR FURNISHED ITEMS AND SERVICES

4.1 General: Except for those items specifically stated to be government furnished in Part 3, the contractor shall furnish everything required to perform this SOW. In fulfillment of this effort, the Contractor will provide the deliverables identified in Technical Exhibit 1 of this SOW. All deliverables will be submitted to the COTR, unless otherwise agreed upon.

4.2. Government Furnished Data. All data produced as a result of the Financial Management Oversight (FMO) program related reviews, FMO Resource Manual, FMO Seminars Workbook, FMO Regional Training Workbook, FMO Final Report CD, FMO Review draft and final reports and an data generated as a result of the FMO program assignments are considered Government data and/or government materials.

PART 5

SPECIFIC TASKS

5.1. BASIC TASKS

The contractor shall be directly responsible for ensuring the accuracy, timeliness and completion of all tasks under this effort. Specifically, the contractor shall carry out the following tasks. Deliverable due dates are identified in technical Exhibit 1.

5.2 TASK 1 - Full Scope Financial Management System Review

5.2.1 The objectives of this task are to perform, report on, and initial financial management system reviews of selected grantees as assigned by FTA. The reviews shall be performed in accordance with applicable AICPA Professional Standards. The contractor performs transaction testing to evaluate the grantee's financial management systems as a whole. The contractor determines if the financial management system is adequate to support effective control of capital project(s) at all project stages, provides a brief description of the grantee and its current major capital investment project, and verifies that the grantee’s financial management system meets the requirements of the Common Rule, as defined in 49 CFR Part 18.20. If a grantee's system is not in compliance with the Common Rule, the contractor will identify which standard is not met and will identify the corrective actions needed, and the timeframe, to be in full compliance with the regulations.

5.2.2 During full scope FMO reviews, contractors conduct a series of interviews, full transaction review and appropriate substantive tests to determine whether the grantees’ financial management system meets the requirements of the Common Rule (49 CFR Part 18.20). The contractors then express an objective, external, independent professional opinion to FTA, in accordance with established public accounting standards, on the effectiveness of the grantees’ internal control environment. These reviews require visit(s) to the cognizant FTA Headquarter or Regional Office as well as visit(s) to the grantee.

5.2.3 To assist in the performance of the reviews, contractors are required to use the Financial Management Oversight Resource Manual (The FMO Resource Manual) as revised located at www.fta.dot.gov. As required by 49 CFR Part 18.20 (the Common Rule), the financial management system of grantees and sub-grantees, other than a State, at a minimum, must meet the following standards:

1.

Financial Reporting. Accurate, current, and complete disclosure of the financial results of financially assisted activities must be made in accordance with the financial reporting requirements of the grant agreement.

2.

Accounting Records. Accurate records that adequately identify the source and application of funds provided for financially assisted activities. These records must contain information pertaining to grant or sub-grant awards, obligations, unobligated balances, assets, liabilities, expenses, and revenues.

3.

Internal Control. Effective control and accountability must be maintained for all grant and sub-grant cash, real and personal property, and other assets. Grantees must adequately safeguard all such property and must assure that it is used solely for authorized purposes.

4.

Budget Control. Actual expenditures must be compared with budgeted amounts for each grant and sub-grant. Financial information must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant agreement.

5.

Allowable Costs. Applicable OMB cost principles, agency program regulations, and the terms and conditions of the grant agreement will be followed in determining the reasonableness, allowability, and allocation of costs. If indirect costs are being charged to the grant, there must be a properly prepared and approved, by the cognizant agency, cost allocation plan.

6.

Source Documentation. Accounting records must be supported by such source documentation as canceled checks, paid bills, payroll, time and attendance records, contracts documents, electronic transactions, etc.

7.

Cash Management. Procedures for minimizing the time elapsing between the transfer of funds from the U.S. Treasury and disbursement by grantees must be followed. When electronic transfer of funds methods makes payments, the grantee must make drawdown’s as close as possible to the time of making disbursements (Treasury identified this period to be 3 business days).

5.2.4 The contractor must determine if the grantees' financial management system complies with each of the eight standards described above. If a grantee's system does not comply with the Common Rule or FTA policies, the contractor must identify which standard or FTA policy is not met. The contractor must identify the corrective actions needed, and the timeframe, to be in full compliance with the regulations.

5.2.5 The contractor shall make the following additional assessment doing their review to assure requirements for Project Change are being met. Determine if the grantee’s project financial accounting system is able to document and track all project changes that result in the need for additional funds, a revision in the scope or objectives of the project, or a need to extend the period of availability of funds or any other changes or budgetary transfers which would require the prior written approval of the FTA.

5.2.5.1 The contractor shall:

1.

Determine that any individual project financial accounting system is interfacing properly with the grantee's overall financial management system;

2.

Determine if the grantee's fixed assets tracking system meets the requirements in the Common Rule, 49 CFR Part 18.32 (d); and

3.

Determine whether the system can, during the construction phase, provide timely projections of the financial impact of project change orders.

5.2.5.2 These reviews require visit(s) to the cognizant FTA Headquarter or Regional Office as well as visit(s) to the grantee. Again, to assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

5.2.6 The FTA will make the initial contact with the grantee. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the grantee. The contractor will arrange appropriate site visits, interviews, inspection of documents, surveys of representative transactions, and, as appropriate, any necessary coordination with the Project Management Oversight contractor. During the initial and any subsequent grantee site visit, FTA representatives may accompany the contractor.

5.2 TASK 2 - Follow-Up to Full Scope Financial Management System Review

5.2.1 The contractor will perform and report on a follow-up financial management system review on grantees that have already had a Full Scope review. The objective of the Follow-up review is to make sure that all recommendations for findings that are a material weakness and/or a significant deficiency have been implemented and are currently operating properly. The contractor must review the work papers from the initial review to avoid duplication of effort. These reviews require visit(s) to the cognizant FTA Headquarter or Regional Office as well as visit(s) to the grantee. Again, to assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

5.2.2 The FTA will make the initial contact with the grantee. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the grantee. The contractor will arrange appropriate site visits, interviews, inspection of documents, surveys of representative transactions, and any other necessary coordination. During the initial and any subsequent grantee site visit, FTA representatives may accompany the contractor.

5.3 TASK 3 - Cost Allocation Plan Review

5.3.1 The contractor will perform and report on Cost Allocation Plan cost proposals submitted to FTA by its grantees for approval. The objective of the Cost Allocation Plan review is to assure that the rate claimed by a grantee for its indirect costs meets acceptable federal criteria. The contractor will determine if the financial document used to distribute the indirect costs of a State or local government’s executive and central level support functions to its appropriate operating organizations within the government benefiting from them meets the criteria contained in OMB requirements (A-87, A-122, A-21 or the Federal Acquisition Regulations), FTA Circular 5010.1D (or the latest version of 5010 circular), and the grant agreement as a condition for reimbursement.

The contractor will determine if the Cost Allocation Plan’s distribution of indirect costs:

· Are necessary and reasonable for the conduct of FTA supported programs (and other Federal programs performed by the transit agencies, it there are any);

· Are permissible under the terms of the grant awards(s),

· Are not otherwise unallowable under OMB regulations, the Federal Acquisition

Regulations or FTA requirements,

· Are reconciled to official budget or audited financial statements,

· Are excluding from the allocation bases non-federal and unallowable direct cost activities

· Removes distorting direct costs from bases,

· Treats cost sharing properly,

· Removes unallowable costs from indirect cost pools,

· Are consistent in treatment of costing,

· Calculations and carry forward of variances are correct; and,

· Rates use in claims is applicable.

5.3.2 The contractor shall ascertain the depth of a CAP review by pre-determining the acceptable level of risk of improper charges and payments. This will set the parameters for the conduct of the CAP review. Risk measures include, but are not limited to the following factors:

· the amount of Federal funds involved and the potential overpayment that could result from improper indirect cost claims; and,

· the knowledge the reviewer has about the accounting and costing practices of the grantee, the confidence (or lack of confidence) the reviewer has in the reliability of the grantee’s financial reports and representations.

These reviews require visit(s) to the cognizant FTA Headquarter or Regional Office as well as visit(s) to the grantee. Again, to assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

5.3.3 The contractor shall make the initial contact with and request a copy of the Cost Allocation Plan from the appropriate FTA regional office. The contractor will be responsible for all coordination with FTA regional staff. Site visit to the FTA Regional office and grantee must be coordinated through the FTA Regional Offices. Once approval is provided by FTA Regional office, the contractor will arrange appropriate site visits, interviews, inspection of documents, and surveys of representative transactions. During the initial and any subsequent grantee site visit, FTA representatives may accompany the contractor.

5.4 TASK 4 - Agreed-Upon Procedures (Special Assignment)

5.4.1 The contractor shall conduct Agreed-Upon Procedures to carry out any special assignment under the FMO program. The contractor will be required to develop procedures for FTA agreement sufficient to meet their engagement objective. Agreed-Upon Procedure are used to address concerns by FTA as to whether grants funds were spent according to the guidelines of the grant and in accordance with the applicable cost principles. The contractor will:

· Determine the status and resolution of expenditures that have been classified as questionable by a third party audit or oversight review contractor of the FTA

· Provide FTA Headquarters and Regional personnel and other interested parties with sufficient information to evaluate whether costs were allowable and reasonable

· Identify problems and issues with the grantee’s ability to properly manage and account for Federal funds

· Provide the FTA with information needed to make required representations and warranties to other interested agencies and outside parties.

5.4.2 The contractor shall work closely with the Regional Office to determine the appropriate procedures to be performed prior to performance of the review. The contractor will use prior FMO reports, other FTA oversight reviews, third party audits, and single audit reports to gain insight prior to the development of procedures.

These reviews require visit(s) to the cognizant FTA Headquarter or Regional Office as well as visit(s) to the grantee. Again, to assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

5.4.3 The FTA will make the initial contact with the grantee. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the grantee. The contractor will arrange appropriate site visits, interviews, inspection of documents, surveys of representative transactions, and any other necessary coordination. During the initial and any subsequent grantee site visit, FTA representatives may accompany the contractor.

5.5 TASK 5 - Financial Capacity Assessment (non New Starts)

5.5.1 The contractor will perform and report on the financial condition, capability and/or capacity of selected FTA grantees. The contractors will evaluate and render a determination as to the grantees financial condition and their capability and/or capacity to complete the undertaking according to the terms, conditions, budgets, schedules and commitments in the Terms and Conditions of the Grant(s) Agreement to maintain its core transit services, including capital replacement requirements or as proposed in a Recovery Plan.

The assessment is to be conducted in accordance with FTA Circular 7008.1A, Financial Capacity Policy or the most recent version of the circular located at www.fta.dot.gov. To assist in the performance of the assessment the contractor will use, as a guide, the Financial Management Oversight Resource Manual, as revisedwww.fta.dot.gov also at .

5.5.2 Financial condition and capability and/or capacity assessments shall require visit(s) to an FTA Regional Office and grantee offices.

The contractor shall determine the grantee’s condition and capability and/or financial capability to:

· Deliver its non-Federal Share of funding;

· Operate and maintain its existing core transit service, as well as the expansion service, including meeting capital replacement requirements (as appropriate;

· Complete, as appropriate, new Federally-funded construction by the revenue operation date and according to the terms and conditions of grant documents, including cash flow and timing of receipt of funds.

5.5.3 At a minimum, the financial condition and capability and/or capacity assessment will address the following:

· financial condition, capability and/or capacity, including the reliability of the grantee’s funding partners;

· the grantee’s future revenues, commitments, contingencies, liabilities and associated risks;

· the grantee’s financial capability to operate the existing system before and after the major investment project (if applicable);

· the grantee’s capability to fund the project along with other capital requirements while continuing to operate and maintain its existing transit system;

· the grantee’s capability to operate the completed project while continuing to operate and maintain its existing transit system;

· Adequacy of sponsor’s financial plan, including:

· the status of the grantee’s tracking of all sources of funding in support of the agency activities including calculations pertaining to Federal and local shares and any deferred local share;

· the reliability and internal consistency of the grantee’s budgeting and planning processes; and,

· the contingency plan to fund Federal funding delays and, as appropriate, project cost increases without any delays.

5.5.4 At a minimum, the following procedures are required:

· Review the appropriate baseline documents in accordance with FTA Guidelines. Baseline documents may include:

· Grants Agreement

· Project, and Agency-wide financial plans.

· Review the grantee’s financial planning model and assess the adequacy of the methodology and assumptions;

· Analyze capital and operating budgets for evidence of a stable and reliable revenue base to support the project. Evaluate the potential for significant commitments, contingencies and conditions that may lead to significant unforeseen cost increases;

· Review the Transportation Improvement Program (TIP) financial plan that:

· Demonstrate how the TIP can be implemented;

· Indicates resources from public and private sources that are reasonably available; and

· Identifies innovative financing techniques to finance projects, programs and strategies.

· Review the reasonableness of revenue projections and underlying assumptions, for both revenues from operations (fare revenues, etc.), as well as subsidy revenues. This will include a review of key economic indicators typically used in the community, as well as historical trends for the various revenue sources. Emphasis will be placed on the driving variables associated with the revenue sources that will support existing operations, the new starts project, and operating deficits;

· Review the reasonableness of operating and maintenance (O&M) cost projections and underlying inflation and cost growth assumptions. This will include a review of historical cost trends, and the driving variables associated with O&M costs for existing operations, and the new starts project.

· Review the bond program, and verify the current balance and debt service requirements of any outstanding bonds, plans, and capacity for current and future financings;

· Assess the status of funds in the financial plan;

· Review funding partner participation and disclose any issues affecting the funding;

· Perform sensitivity analysis to test the assumptions in the financial plan regarding trends in future revenues and costs. Identify the variables that are most affected by adverse changes, uncertainties, and impacts beyond the grantee’s control. Measure the impact of the sensitivity analyses to the financial plan and to grantee’s overall financial capacity. Conduct stress case scenarios by assuming changes to multiple variables in combination.

· Meet, as appropriate, with FTA Headquarters, FTA Regional Office, and the Program Management Oversight Contractor, as appropriate, at the start of the effort and at any other time as necessary;

· Coordinate questions and difficulties with the FTA Headquarters and Regional Office;

· Prepare a report for FTA on the initial or follow-up financial capacity assessment of the transit agency. Identify the risk factors that may affect the grantee’s financial capacity. Include as attachments the financial plan, sensitivity analysis and stress scenarios.

These reviews require visit(s) to the cognizant FTA Headquarter or Regional Office as well as visit(s) to the grantee. Again, to assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

5.5.5 The FTA will make the initial contact with the grantee. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the grantee. The contractor will arrange appropriate site visits, interviews, inspection of documents, surveys of representative transactions, and any other necessary coordination. During the initial and any subsequent grantee site visit, FTA representatives may accompany the contractor.

5.6 TASK 6: Update Financial Management Oversight Resource Manual (FMO Manual) and Financial Management Oversight Seminar Workbook and Materials

5.6.1 FMO Resource Manual. The Financial Management Oversight Resource Manual (FMO

Manual) is designed to serve as a guide for FTA staff in understanding the FMO process and the FMO contractors’ to assist in conducting FMO reviews. Annually, the lead Contractor will revise and assist in the update to the FMO Manual. Updates will include any new FTA directives, guidance, and changes in federal regulatory requirements. The lead Contractor will distribute hard copies and CDs of the FMO Manual to FTA and FMO contractors.

Site visit(s) may be required to the cognizant FTA Headquarter Office during the development of the FMO Resource Manual.

5.6.2 FMO Seminar Workbook. The lead contractor will be tasked annually to revise and update the FMO Seminar Workbook. The workbook will be updated to conform to all pertinent Federal policies and FTA guidance pertinent to the Financial Management Oversight program prior to the start of the annual offering of the FMO Seminars.

Site visit(s) may be required to the cognizant FTA Headquarter Office during the development of the FMO Seminar Workbook.

5.7 TASK 7 Financial Management Oversight Training

5.7.1 A lead contractor will be selected annually to provide FTA logistical and technical support in conducting and hosting the Financial Management Oversight training program. Other FMO contractors will provide technical support as directed. The training is conducted for transit professionals and FTA staff responsible for managing federal funds and assuring compliances to in the use of these funds. The training will be designed to assist grantees in improving their financial management of FTA grants through enhancing and refining their financial management systems to meet the standards established by the Common Rule, Federal regulatory requirements and FTA guidance. FTA staff training is provided to assure a complete understanding of the FMO program and their responsibilities in administering the financial management directive and federal regulatory requirements to grantee’s. The contractor will also assist in updating and development New FMO training initiatives and innovative training delivery methods, as directed.

5.7.2 FMO Training Instructors: The lead contractor will provide the necessary staff to present the FMO training materials during the training and to provide technical assistance to grantees when not making a presentation during the seminar.

5.8 TASK 8: FMO Program Reports

5.8.1 Program Summary Reports: The lead contractor will provide assistance in the preparation of the mid-year and year-end financial management oversight review programs summary reports. The reports may include, but are not limited to, information such as: summary of findings open and closed; number of findings by review area; top five areas of findings; and trend of findings by year, recommendation for program improvements.

5.8.2 Program Assistance: The contractor will provide assistance in collecting financial management oversight review final reports from other FMO contractors and create a library of these documents on a CD for future use, on a quarterly basis. The CD will organize the reports by region, grantees name, contractor, and date completed or as directed.

5.9 TASK 9: Oversight Program Support and Special Assignment

5.9.1 The contractor shall perform the following activities as directed.

· attend FTA’s Annual Oversight Meetings held in Washington D.C.

· prepare briefing and presentation, etc., that reflect a level of understanding of the FMO program and processes

· provide technical assistance or staging of informational session with FTA regional office staff and/or grantees relating to FMO reviews and findings

· attend FTA orientation and/or FMO training to stay proficient with program related requirements

· provide input and support to FTA and its lead contractor(s) in developing and updating FMO program tools, annual, semi-annual, monthly, and summary reports on program related reviews

· assist with development and implementation of new FMO program activities including but not limited to initiatives generated under the Economic Recovery Act

· perform special assignment task as directed by FTA

These items will address problem areas or other areas of concern, as determined by FTA. The contractor is required to provide all resources necessary to perform all Special Assignments.

PART 6

OTHER CONTRACT REQUIREMENTS

6.1 ADMINISTRATIVE CONSIDERATIONS

6.2 Points of Contact

6.2.1 Contracting Officer’s Technical Representative (COTR)

The Contracting Officer’s Technical representative for this effort is as follows:

TO BE INSERTED AT TIME OF AWARD

6.3 POST AWARD EVALUATION OF CONTRACTOR PERFORMANCE

6.3.1 Contractor Performance Evaluations

Interim and final evaluations of contractor performance will be prepared on this effort in accordance with FAR Subpart 42.1500. A final performance evaluation will be prepared, by the COTR, at the time of completion of work. In addition to the final evaluation, interim evaluations may be prepared, by the COTR, annually to coincide with the anniversary date of this effort.

Interim and final evaluations will be provided to the Contractor as soon as practicable after completion of the evaluation. The Contractor will be permitted thirty (30) calendar days to review the document and to submit additional information or a rebutting statement. Any disagreement between the parties regarding an evaluation will be referred to an individual one level above the CO, whose decision will be final.

Copies of the evaluations, Contractor responses, and review comments, if any, will be retained as part of the contract file, and may be used to support future award decisions.

b) Electronic Access to Contractor Performance Evaluations

Contractors that have Internet capability may access evaluations through a secure Web site for review and comment by completing the registration form that can be obtained at the following address: http://cpscontractor.nih.gov.

The registration process requires the contractor to identify an individual that will serve as a primary contact and who will be authorized access to the evaluation for review and comment. In addition, the Contractor will be required to identify an alternate contact that will be responsible for notifying the contracting official in the event the primary contact is unavailable to process the evaluation within the required thirty (30) calendar day time frame.

6.4 INVOICING

The Contractor shall invoice no more frequently than MONTHLY against each separate order. Invoices shall clearly identify hours and rates charged during the period. Travel charges must contain location and dates, and, items must be identified by subject (i.e. meals, rental car, and airfare.)

6.5 TRAVEL

The Contractors shall obtain approval from the COTR before incurring any such costs and provide detailed travel expenses in its monthly invoices.

Travel and per diem, if authorized under this contract, shall be reimbursed in accordance with the Government Travel Regulations currently in effect. Current per diem rates are listed at http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentId=17943&contentType=GSA_BASIC. Travel requirements under this contract shall be met using the most economical form of transportation available. If economy class transportation is not available, the request for payment voucher must be submitted with justification for use of higher class travel indicating dates, times, and fight numbers. All travel shall be scheduled sufficiently in advance to take advantage of offered discount rates, unless otherwise authorized by the Contracting Officer.

6.6 PERSONNEL REQUIREMENTS

Contractor will provide personnel consistent with requirements stated at Section J, J-1, of the SOW and the staffing plans in the contractor’s technical quote.

TECHNICAL EXHIBIT 1

A. DELIVERIES AND/OR PERFORMANCE SCHEDULES

The contractor shall deliver all deliverables in accordance with the specification of this SOW.

Deliverable

Number

of

Copies Delivery Date

Tasks 1- 5

Draft Reports: to be delivered as follows:

· Full Scope Financial Management Systems Review, Follow up to Full Scope Review, Agreed-Upon Procedures, Cost Allocation Plan and Special Analysis

· Hard Copy or Electronic email to:

· COTR-FTA/TPM-41

· Regional Administrator

· Regional Program Manager Deliverables must be in accordance with AICPA standards and FMO Resource Manual report directives

· Financial Condition, Capability and/or Capacity assessment (non-New Starts) Hard Copy or Electronic email to:

· COTR-FTA/TPM-41

· Regional Administrator

· Regional Program Manager

30 Calendar days after completion of initial review or exit conference

Task 6

Task 7

Task 8 Final Reports to be delivered as follows:

· Full Scope Financial Management Systems Review, Follow up to Full Scope Review, Agreed-Upon Procedures, Cost Allocation Plan and Special Analysis

· Hard Copy or Electronic email to:

· COTR-FTA/TPM-41

· Regional Administrator

· Regional Program Manager Deliverables must be in accordance with AICPA standards and FMO Resource Manual report directives

· Financial Condition, Capability and/or Capacity assessment (non-New Starts) Hard Copy or Electronic email to:

· COTR-FTA/TPM-41

· Regional Administrator

· Regional Program Manager

Financial Management Oversight Resource Manual

Financial Management Oversight Training

Draft and Final FMO Training Materials are to be submitted direct to the FMO program Manager

Technical Assistance for the Preparation of FMO Summary Reports and Program Management Support

Draft and final report to be provided to directly to COTR

Inspection and acceptance requirements will be provided at the time of assignment

Inspection and acceptance requirements will be provided at the time of assignment

To be determined at time of assignment 21 Calendar days after receipts of final comments

Will be provided at the time of assignment

Delivery dates will be based on final FMO training schedule

Will be provided at the time of assignment

Inspection and acceptance requirements will be provided at the time of assignment

Will be provided at the time of assignment

Monthly Management Status Report to be sent to:

· Contracting Officer

· COTR

Electronic Version is Acceptable.

15 days after the end of the calendar month

B. DELIVERABLES SCHEDULE

All deliverables will be grammatically correct, reflect comprehensive research and technical credibility; incorporate complete and defensible analysis, and address FTA concerns.

TASK 1– Full Scope Financial Management System Reviews. The report must have the following sections:

· Table of Contents

· Independent Accountants’ Report

· Brief description of the grantee

· Material Weaknesses

· Significant Deficiencies

· Advisory Comments

· Table Summarizing the Findings

· Criteria for Grantee Financial Management Systems

· Grantee’s Response to Findings and Advisory Comments (Full Text)

TASK 2 – Follow-Up to Full Scope Financial Management System Review. The report must address the current status of all material and reportable conditions identified during the full scope review. In addition, if during the course of the review something comes to the attention of the contractor that may indicate a weakness in the financial management system and internal control environment, the contractor must report those weaknesses in a new section titled “New findings as a result of this review”. The report must have a table summarizing the findings and its current status.

At a minimum, the report must have the following sections:

· Table of Contents

· Introduction, Objectives and Limitations

· Follow-up FMO Review Procedures

· FTA Corrective Action Requirements, Status, Findings and Recommendations

· Additional Findings as a Result of this Review

· Criteria Established by FTA as Standards for Grantee Financial Management Systems

· Matrix of Related Findings, Recommendations and Corrective Actions

· Summary of Status of prior corrective action required

· Summary of Additional Findings

· Summary of Management (grantee) Responses to Findings (Full Text)

TASK 3 – Cost Allocation Plan Review. The contractor must report on the acceptability of the proposed rate contained in the grantees Cost Allocation Plan. The contractor will determine if the financial document used to distribute the indirect costs of a State or local government’s executive and central level support functions to its appropriate operating organizations within the government benefiting from them meets the criteria contained in OMB requirements (A-87, A-122, A-21 or the Federal Acquisition Regulations), FTA Circular 5010.1D (or the latest version of 5010 circular), and the grant agreement as a condition for reimbursement.

The report will contain:

· Executive Summary

· Scope

· Overview

· Cost Allocation Plan Approach

· Proposed Indirect Cost Rate

· Evaluation of Cost Allocation Plan

· Evaluation of Sample Transit Agency’s CAP Submission

· Recommendations

· Conclusion

TASK 4 - Agreed-Upon Procedures (Special Assignment)

The contractor will conduct Agreed-Upon Procedures to carry out any special assignment under the FMO program. The contractor will be required to develop procedures for FTA agreement sufficient to meet their engagement objective. Agreed-Upon Procedures are used to address concern by FTA as to whether grants funds were spent according to the guidelines of the grant and in accordance with the applicable cost principles. The report will provide:

· Table of Contents

· Independent Accountant’s Report

· Introduction, Objectives and Limitations

· Agreed-Upon Procedures

· Findings (Material Weaknesses and Significant Deficiencies)

· Summary of Findings

· Criteria Established by FTA for Grantee Financial Management Systems

· Grantee’s Response (Full Text)

TASK 5 – Financial Condition, Capability and/or Capacity Assessment (non New Starts). The financial condition, capability and/or capacity assessment is conducted to assess the grantee’s ability to meet grant obligations to maintain its existing transit operations and as necessary to assure its transit service is not interrupted due to a lack of financial capacity. The grantee must demonstrate its ability to match and management FTA grant funds, cover cost increases and operate deficits through long term stable and reliable sources of revenue, and maintain and operate Federally-funded facilities and equipment. The report must have the following sections:

· Table of Contents

· Table of Acronyms

· Executive Summary – no more than 2 pages long

· Scope of Financial Condition, Capability and/or Capacity Assessment (non New Starts)

· Transit Agency Overview

· Grantee Financial Condition, Capability and/or Capacity

· Sensitivity Analysis (as appropriate)

· Conclusions

· Table of Appendices

TASK 6 – Financial Management Oversight Resource Manual. The manual is designed for use by the FMO contractor and FTA staff. The Manual codified the procedures for each type of FMO review including areas to be reviewed to ensure review of the entire internal control structure. The Resource Manual is to be updated to include any new FTA directives, guidance, and changes to Federal regulatory requirements. All updated will require distribution to FTA and FMO contractors via email and/or CD as directed by COTR. At a minimum, the Resource Manual will contain the following sections:

· Table of Contents (for each Section and Module)

· Overview (Section 1)

· Guidance and Programs (Section 2)

· Module 1 through 5

· Program related Reference Materials (Section 3)

Task 7 – Financial Management Oversight Training. The FMO program conducts annual outreach training activities for its customers. A contractor is assigned the task to provide logistical and technical support in conducting and hosting the financial management oversight training activities. These activities in the form of workshops and seminars are offered through the U.S. The contractor is responsible for assisting with the development of training materials including workbooks and providing well-qualified staffs with the necessary knowledge of the FMO program reviews and federal requirements governing the program to instruct the training activities. Deliverables and schedule will be determined at the time of task award by COTR.

Task 8 – Technical Assistance for the Preparation of Year-end Summary Reports and Program Management Support. Assist in the preparation of mid-year and year end FMO summary reports. Deliverables and report structure will be determined at the time of task assignment.

Task 9 – Oversight Program Support and Special Assignments. The contractor will provide program support and assist with program related special assignments as directed. At a minimum, contractor shall:

· attend FTA Annual Oversight Meetings held in Washington D.C.

· prepare briefing and presentation, etc., that reflect a level of understanding of the FMO program and processes

· Provide technical assistance or staging of informational session with FTA regional office staff and/or grantees relating to FMO reviews and findings

· attend FTA orientation and/or FMO training to stay proficient with program related requirements

· provide input and support to FTA and its lead contractor(s) in developing and updating FMO program tools, annual, semi-annual, monthly, and summary reports on program related reviews

· assist with development and implementation of new FMO program initiatives

· perform special assignment task(s) as directed by FTA

Deliverables will be determined and schedule discussed during task assignment.

Monthly Administrative Management Status Report. The narrative and financial reports are due 15 days after the end of the calendar month. Format for the reports will be provided by COTR. An electronic version of the report is acceptable. The financial report, at a minimum, shall provide by task and by site:

· a description of the work accomplished during the reported month;

· problem areas encountered, including problems with respect to expenditures relative to budget, progress relative to schedule, and overall resource allocation;

· corrective action taken by the contractor;

· work planned for the next reporting period; and

· a complete summary accounting, on the accrual basis of accounting, of contractor expenditures incurred on a current and cumulative basis. Categories to report on are:

· task and site budget and hours

· direct labor hours

· direct labor cost

· travel

· other direct costs, overhead, general & administrative expenses

· fee

· total actual expenditures, and balance remaining in the task and site

SECTION D - PACKAGING AND MARKING

a. All packing, packaging and mailing of reports or submittals shall be accomplished in the most economical and efficient manner and in accordance with the best commercial practices.

b. All information submitted to the Contracting Officer and the Contracting Officer's Technical Representative shall be clearly marked with the name of the organization/contractor, the contract, task order and/or modification number as appropriate and the identification of the submission.

c. Additional packaging and marking requirements will be specified, as necessary, in individual task orders issued under this contract.

End of Section

Section E - Inspection and Acceptance

INSPECTION AND ACCEPTANCE TERMS

Supplies/services will be inspected/accepted at:

This contract incorporates the following contract clauses by reference, with the same force and affect 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 can be accessed electronically at: http://www.arnet.gov/far/

52.246-4 inspection of Services – Fixed priced (AUG 1996)

End of Section Section F - Deliveries or Performance

F.1 DELIVERABLES

All Contractors shall provide all deliverables in accordance with the specifications as stated in the Statement of Work (SOW), Technical Exhibit.

F.2 INTERIM AND POST AWARD EVALUATION AND CONTRACTOR PERFORMANCE

a. Contractor Performance Evaluations

Interim yearly and final evaluations of contractor performance will be prepared on this contract in accordance with FAR 42.15. The final performance evaluations will be prepared as soon as possible after completion of all required work.

Interim and final evaluations will be provided to the contractor as soon as practicable after completion of the evaluation. The contractor may elect to review the evaluation and submit additional information or a rebuttal statement within thirty days. Any contractor response is voluntary. Any disagreement between the parties regarding an evaluation will be referred to an individual one level above the Contracting Officer, whose decision is final.

Copies of the evaluations,…