FMO_FINAL__RFP-_.docx

Request for Proposal (RFP), DTFT6015R00003 Financial Management Oversight Program

Table of Contents

PART I - THE SCHEDULE

SECTION B: SUPPLIES OR SERVICES AND PRICES

B.1 Supplies or Services B.1.1 Professional contractor support to provide the Department of Transportation (DOT), Federal Transit Administration (FTA) with Financial Management Oversight (FMO) Program services to examine grantee performance and adherence to current OMB and FTA requirement and policies. The contractor will be utilized by FTA to continue the responsibility of the FMO program as first mandated by Congress in 1991.

This requirement is a total 8(a) small business set-aside. The Government intends to award a minimum of three but no more than five Indefinite Quantity Indefinite Delivery type contracts.

B.2 North American Industry Classification System (NAICS) Code and Small Business Standard The North American Industry Classification System (NAICS) code for this acquisition is 541211, Certified Office of Public Accountants Services. The small business size standard is $20,500,000 (Twenty million five hundred dollars).

B.3 Contract Definition – Indefinite Delivery – Indefinite Quantity This is an Indefinite Delivery - Indefinite Quantity Contract as defined at Subpart 16.504 of the Federal Acquisition Regulation (FAR) and in Section I, FAR Clause 52.216-22, Indefinite-Quantity, herein. Services provided by the Contractor under this Contract shall be secured by the issuance of Task Orders placed in accordance with the following clauses, herein: FAR 52.216-18, Ordering, and FAR 52.216-19, Ordering Limitations B.3.1 Minimum and Maximum Obligation of the Government – Indefinite Delivery Indefinite Quantity Contract;

a) Per FAR 52.216.22 “INDEFINITE QUANTITY,” the minimum of this indefinite quantity contract shall be any quantity or combination of supplies and services equal to the amounts(s) set forth below.

b) The Minimum amount guaranteed under this contract will be $1,000.00. Once a single Task Order is received by the Contractor, that exceeds the contract minimum, the guaranteed minimum will be considered satisfied in full.

c) The Maximum amount for this indefinite quantity contract for all contract years shall be any quantity or combination of supplies and services equal to $30M upon award over a 5 year period of performance. The maximum NTE amount is an estimate and does not reflect an obligation of the Government.

d) The Government’s obligation hereunder shall be specified in the task orders issued during the period of performance under the contract.

e) The Contractor is not authorized and is proceeding at its own risk to incur costs that would exceed the funds obligated on the contract at any given time during the contract period of performance.

B.4 Hybrid Contract Type B.4.1 The contract type is a hybrid and specific contracts will be determined at the task order level. Task orders will be issued FFP or LH. Orders may have a combination of the two types if warranted, e.g. Other Direct Costs (ODCs) and travel costs may be reimbursable under a fixed price order. Task orders also may be issued with a combination of CLINs with a NTE task order value. All orders will be awarded based on Section H.16 Task Order Ordering Procedures.

B.5 Sample Task Order CLIN Structure – Mapped to Section C Work Functions

B.6 Contract Period of Performance The contract period of performance is from date of award through a five year period. The FAR clause 52.217-8 “Option to Extend Services”, has been incorporated in this contract, as referenced in Section I, in the event the Government requires continued performance of any services with the limits and at the rates specified in the contract beyond the five-year period of performance. In addition FAR Clause 52.216-22 has also been included which allows for task orders that have been issued prior to the expiration of the IDIQ to have period of performances that go beyond the period of performance of the master contract.

B.7 Pricing/Labor Rates Table The labor categories in the Pricing/Labor Rates Matrix (Attachment J-1 Estimated Workload Data Sheet) shall be used for all task orders issued under this IDIQ contract.

Task orders will be awarded to contractors based within the pre-established Fixed Labor rates as stated in each Task award using the CLIN structure in B.5 above.

B.8 Other Direct Costs: Travel Travel costs under this task order shall be determined on the task order level. The Contractor shall be reimbursed for actual allowable costs that apply over the life of the requirement, not to exceed the amount shown in the schedule. All travel must be approved by the Contracting Officer’s Representative (COR) preferably in writing prior to the occurrence of the travel. It is the contractor’s responsibility to contact the COR if lodging arrangements exceed the GSA per diem rates. Long distance travel shall be reimbursed at cost to the contractor and in accordance with Government Federal Travel Regulations (FTR). Local travel shall be billed and is defined as all travel within a fifty (50) mile radius of Washington, DC or within a fifty-mile radius of the contractor’s facility when the client site is outside the Washington, DC area (excluding normal commuting travel).

The cost for travel during task assignments shall be in keeping with GSA guidelines in terms of: local per diem, subsistence, and miscellaneous expenses, all of which will be reported to the COTR. See notes below:

Note 1: Per FTR Sec.301-11.2 – the contractor is prohibited from invoicing for meals and incidental expenses (M&IE) if travel is for 12 hours or less.

Note 2: Per FTR Sec. 301-11.101 – the contractor shall be restricted to invoicing for 75% of the M&IE on the first day of travel, 100% of the M&IE on full days in travel status and 75% of the M&IE on the last day of travel.

End of Section

SECTION C: DESCRIPTION / STATEMENT OF WORK

C.1 Overview

The Financial Management Oversight (FMO) program is one of the Federal Transit Administration’s (FTA) management tools for examining grantee performance and adherence to current FTA requirements and policies. The FMO program started in July 1991 and is authorized at 49 U.S.C., Section 5327(c). This section allows the set-aside of one-half or three-quarters of one percent from certain program funds. Section 5327(c) was originally established for program management oversight. Safety, procurement management, and financial compliance reviews were specifically included later.

FMO services ensure that FTA can continue to discharge its financial management oversight responsibilities. This effort facilitates FTA compliance with Congressional direction to conduct independent financial assessments. FTA is charged with assisting the grantee community in meeting a high level of financial capacity needed to implement new start projects. Further, FTA requires assurances that grantees have sound financial management systems and adequate internal controls to manage the Federal funds.

C.2 Background

In 1992, FTA issued the first detailed FMO Review instructions, now known as the FMO Resource Manual. The manual has been updated several times since then and is scheduled to be updated annually to ensure that all relevant information necessary to successfully conduct FMO reviews is available to FMO contractors.

Since 1992, the FMO review program has been fine-tuned continuously. This Manual codifies the procedures required for each type of FMO review. Recent updates include changes in references for FTA circulars 5010.1D and 4220.1F, the addition of areas to be reviewed to ensure review of the entire internal control structure in accordance with changes in the Committee of Sponsoring Organizations (COSO) model for internal controls, updates to the manual for new FTA procedures, changes in the format and delivery schedule for some of the draft and final reports, and revision of the terms used when reporting internal control findings based on new standards.

C.3 Statement of Work

CLIN 0001 - Full Scope Financial Management System Review

The objectives of this task are to initiate, perform, and report on financial management system reviews of grantees 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 projects 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 CFR Part 200. 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.

During full scope FMO reviews, contractors conduct a series of interviews, full transaction reviews, and appropriate substantive tests to determine whether the grantee’s financial management system meets the requirements of the Common Rule (CFR part 200). The contractors then express an objective, external, independent professional opinion to FTA, in accordance with established public accounting standards, on the effectiveness of the grantee’s internal control environment. These reviews require at least one visit to the grantee. At times, a visit to the cognizant FTA Headquarters or Regional Office is also required.

To assist in the performance of the reviews, contractors are required to use the Financial Management Oversight Resource Manual (The FMO Resource Manual). As required by CFR Part 200 (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 cost allocation plan or indirect cost rate by the cognizant agency.

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).

The contractor must determine if the grantee’s financial management system complies with each of the seven 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.

The contractor shall also assess whether requirements for Project Change are being met. The contractor shall 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.

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, CFR Part 200; and

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

These reviews require at least one visit to the grantee. At times, a visit to the cognizant FTA Headquarters or Regional Office is also required. To assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

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. The contractor will keep the FMO Program Manager informed throughout the review. During the initial and any subsequent grantee site visit, FTA representatives may accompany the contractor.

CLIN 0002- Follow-Up to Full Scope Financial Management System Review

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 at least one visit to the grantee. At times, a visit to the cognizant FTA Headquarters or Regional Office is also required. To assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

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.

CLIN 0003- Cost Allocation Plan Review

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 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards 2 CFR Part 200 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.

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 may require at least one visit to the grantee. At times, a visit to the cognizant FTA Headquarters or Regional Office is also required. To assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

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.

CLIN 0004- Agreed-Upon Procedures (Special Assignment)

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 Procedures 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.

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 at least one visit to the grantee. At times, a visit to the cognizant FTA Headquarters or Regional Office is also required. To assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

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.

CLIN 0005- Financial Capacity Assessment (non-New Starts)

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 grantee’s 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.

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.

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.

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 at least one visit to the grantee. At times, a visit to the cognizant FTA Headquarter or Regional Office is also required. To assist in the performance of the reviews, the contractor must use the FMO Resource Manual, as revised.

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.

CLIN 0006- Update Financial Management Oversight Resource Manual (FMO Manual) and Financial Management Oversight Seminar Workbook and Materials

CLIN 0006.1. 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.

CLIN 0006.2 FMO Workshop Workbook. A contractor will be tasked annually to revise and update the FMO Workshop 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 Workshops.

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

CLIN 0007 Financial Management Oversight Training

A lead contractor may be selected annually to provide FTA technical support in conducting the Financial Management Oversight training program. 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 Uniform Administrative Requirements 2 CFR Part 200, 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 grantees. The contractor will also assist in updating and development New FMO training initiatives and innovative training delivery methods, as directed.

CLIN 0007.1 FMO Training Instructors: A 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.

CLIN 0008: FMO Program Reports

Program Summary Reports: - A contractor will provide assistance when necessary in the preparation of the financial management oversight review programs summary reports.

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.

CLIN 0009: Oversight Program Support and Special Assignment

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

CLIN 0010: Corrective Action Support

To facilitate the timely resolution of findings, the Contractor shall provide targeted assistance related to FMO Reviews with open findings. The Contractor shall utilize their technical expertise to review corrective action materials submitted by grantees to the FTA for compliance with requirements. The Contractor shall subsequently recommend appropriate action to the FTA.

CLIN 0011: Technical Assistance

The Contractor may be tasked with providing technical assistance directly to one or more grantees. Such technical assistance may be related to a recently performed FMO Review; however, it can be utilized for reasons unrelated to a specific review. Contractors may be required to monitor grantees’ adherence with corrective actions after the findings have been closed, or to provide technical expertise to grantees who are experiencing difficulties with program implementation issues.

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.

CLIN 00110: TRAVEL A NTE amount to be determined will be provided for travel each year. The Contractor shall obtain approval from the COR before incurring any such costs that exceed this limit and provide detailed travel expenses in its invoices. The Contractor shall be responsible for monitoring their budgeted versus actual and planned travel expenses and alerting the COR immediately if planned and actual expenses might exceed the budget. The Contractor shall also include this information in the Contractor’s monthly progress reports.

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.

C.4 Deliverable Matrix

TECHNICAL EXHIBIT 1

A. DELIVERIES AND/OR PERFORMANCE SCHEDULES

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

Draft Reports to be delivered as follows:

30 Calendar days after completion of initial review or exist conference or as stated in FTA SOPs

CLIN

Financial Condition, Capability and/or capacity assessment (non-New Starts)

Hard Copy or Electronic email to:

Final Reports to be delivered as follows:

21 Calendar days after receipts of final comments or as stated in FTA SOPs

Hard Copy or Electronic email to:

Deliverables must be in accordance with AICPA standards and FMO Resource Manual report directives

CLIN

Financial condition, Capability and/or Capacity assessment (non-New Starts)

Hard Copy or Electronic email to:

CLIN

CLIN

Financial Management Oversight Training

Draft and Final FMO Training Materials are to be submitted directly to the FMO Program Manager

CLIN

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

Draft and Final Report to be provided directly to the COR

CLIN

Monthly Management Status Report to be sent to:

Contracting Officer

COR

15 days after the end of the calendar month

Electronic Version is acceptable.

End of Section

SECTION D: PACKAGING AND MARKING

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.

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.

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

SECTION E: INSPECTION AND ACCEPTANCE

E.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

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.acquisition.gov

52.246-4 INSPECTION OF SERVICES FIXED PRICE (AUG 1996)

52.246-6 INSPECTION – TIME- AND- MATERIAL AND LABOR HOUR (MAY 2001)

All pertinent clauses will be incorporated in the task orders as awarded.

E.2 Contracting Officer or Contracting Officer’s Representative (COR Inspection and Acceptance) The Contracting Officer or the Contracting Officer's Representative (COR) at the Department of Transportation, Federal Transit Administration, Washington, DC, will perform final inspection and acceptance of all deliverables called for by this contract. The Contracting Officer reserves the right to designate other Government agents as authorized representatives upon unilateral written notice to the Contractor, which may be accomplished in the form of a transmittal of a copy of the authorization.

SECTION F: DELIVERIES OR PERFORMANCE

F.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

52.242-15 Stop-Work Order (Aug 1989-Alternate 1 (Apr 1984) 52.242-17 Government Delay of Work (April 1984) F.2 Period of Performance All work under this IDIQ contract; including delivery of all required reports/items, shall be accomplished within five (5) years after the date of contract award. The period of performance for each task order will be established in the respective task order awards.

F.3 Delivery Schedule

A. DELIVERABLES SCHEDULE

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

CLIN 0001 – 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 (Matrix)

· Criteria for Grantee Financial Management Systems

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

CLIN 0002 – Follow-Up to Full Scope Financial Management Systems 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 entitled “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)

CLIN 0003 – Cost Allocation Plan (CAP) Review

The contractor must report on the acceptability of the proposed rate contained in the grantee’s Cost Allocation Plan. The contractor will determine if the financial document used to distribute the indirect cost 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 (2 CFR part 200, or Federal Acquisition Regulations), FTA Circular 5010.1D (or the latest version of 5010 Circular) and the grant agreement as a condition of 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 CLIN 0004 – Agreed-Upon Procedures (Special Assignment) The contractor will conduct Agreed-Upon Procedures to carry-out any special assignments 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 (Matrix)

· Criteria Established by FTA for Grantees Financial Management Systems

· Grantee’s Response (Full Text)

CLIN 0005 – 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 manage 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

CLIN 0006 – 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 updates will require distribution to FTA and FMO contractors via email and/or CD, as directed by the COR.

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

· Reference Materials (Section 3)

CLIN 0007 – Financial Management Oversight Training

The FMO program conducts annual outreach training activities for its customers. A contractor is assigned the task to provide technical support in conducting and hosting the financial management oversight training activities. These activities, in the form of workshops, are offered throughout the U.S.