ED-FSA-16-R-0009 _Amendment_0002.pdf

NSN 7540-01-152-8070 STANDARD FORM 30. (Rev. 10-83) Previous Edition unusable Prescribed by GSA FAR (48 CFR) 53.243

Page of Pages AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. Contract ID Code

2. AMENDMENT MODIFICATION NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (if applicable)

6. ISSUED BY CODE 7. ADMINISTERED BY (If other than item 6) CODE

(x) 9A. AMENDMENT OF SOLICITATION NO.

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

8. NAME AND ADDRESS OF CONTRACTOR (NO., Street, Country, State and ZIP Code)

CODE FACILITY CODE

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in item 14. The hour and date specified for receipt of offers is extended, is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing items 8 and 15, and returning ______ copies of amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OR OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required)

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

Check One

A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE

CONTRACT ORDER NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return _______ copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible)

Except as provided herein, all terms and conditions of the document referenced in item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print)

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

15B. CONTRACTOR/OFFEROR 16B. UNITED STATES OF AMERICA

(Signature of person authorized to sign)

15C. DATE SIGNED

(Signature of Contracting Officer)

16C. DATE SIGNED

Attachment Page

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The purpose of this amendment is to:

1. Change Paragraph E.1.1, Submission Deadline to read:

Offers should be received no later than 5:00PM Eastern Standard Time on Feb 22, 2016 for the following from Section E.1, Solicitation Responses:

(a) Section A of Proposal

(b) Section B of Proposal

(c) Section C of Proposal

(d) Section D of Proposal with the exception of the Subcontracting Plan and the Small

Business Participation Plan.

Offers should be received no later than 5:00PM Eastern Standard Time on Feb 29, 2016 for the following from Section E.1, Solicitation Responses:

(a) Subcontracting Plan (Attachment 2) - Applies only to Other Than Small Businesses

(b) Small Business Participation Plan (Attachment 5) – Applies to All Offerors

Offers should be submitted ONLY to email address: mpddcteam@ed.gov. The time of receipt is considered to be the time in which the proposal submission is received at the initial point of entry to the Department’s infrastructure.

2. Change paragraph to read:

The Government anticipates awarding multiple Indefinite Delivery/Indefinite Quantity (IDIQ) contracts and Task Orders under NAICS code 561440 for default collection services. The resulting IDIQ awards will have a Base Ordering Period of five (5) years with a single, five (5) year Optional Ordering Period. To fund the work, the Government may issue one or more task orders to one or more IDIQ contract holders throughout the Base and Optional Ordering Periods, with each task order having a period of performance lasting one year or longer.

Issuance of any such task order to a contractor will be only after, and will be contingent upon, the contractor having and maintaining an Authorization to Operate (ATO), acceptance by the Government of all Deliverables due from the contractor, and the approval by the Government of the contractor’s Quality Control Plan.

3. Change Section B.2.2 Rehabilitation to read:

Provided that the borrower meets all regulatory and statutory requirements (as specified in the Performance Work Statement), the Contractor will be paid at a rate that is equal to the principal and interest balance being rehabilitated, not to exceed $1710, (i.e. if the balance rehabilitated is $537, then the PCA would be paid $537). This fee is a one time, per borrower fee, combined principal and interest balance up to a maximum of $1,710 per account. Rehabilitation fees will be cumulative until the $1,710 maximum is met, (meaning that the PCA could earn $1,000 in one month and $710 in a later month if loans are closed in different months).

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4.. Change Section C.3.37 Contractor Performance Monitoring and Evaluation (Allocation Methodology) and C.3.38, Allocation Methodology Standing and Performance Range to read:

C.3.37 Contractor Performance Monitoring and Evaluation (Allocation Methodology)

In the first few months of performance under the initial task orders, the Department intends to transfer a fixed number of accounts to every contractor. The number of transfers will not necessarily be equal and the ED may make adjustments based on a variety of factors, including but not limited to the Contractors ability to secure an Authority to Operate (ATO), staffing levels, etc. After those first few months, the Department will implement the Contractor Performance Monitoring and Evaluation (CPME) system to monitor and evaluate each contractor’s on-going performance, on a quarterly basis. The contractors will be notified before CPME is implemented. The CPME will generate a Final Allocation Percentage for each contractor, based on the formulas set forth below. A Final Allocation Percentage above zero (0) is an indication that the contractor is eligible to receive a portion of the accounts placed during the next quarter equivalent to its Final Allocation Percentage. Notwithstanding the results of the CPME, a decision to transfer accounts to a contractor at any time will be at the sole discretion of the Department and the Department may consider factors in addition to Final Allocation Percentages under the CPME when determining whether to transfer accounts to a contractor or how many accounts to transfer. The Government shall have the right to unilaterally modify the formulas and methodology used to calculate the CPME and Evaluation Scores at any time, with 30-days advance notice to the contractors.

Using the CPME, the Department will also generate Evaluation Scores for each contractor quarter. Those Evaluation Scores will be considered, along with other information by the Contracting Officer when reporting Contractor past performance rating for each contractor, including CPARS and other past performance databases.

Calculating Final Allocation Percentages

(1) To determine the Final Allocation Percentage for each Contractor for each quarter, first the following Factors will be converted to Scores, which will then be weighted and added to produce an Unadjusted Total Base Score.

a. Borrowers Resolved Factor: A resolved borrower account that is removed from the contractor’s inventory during the performance period by any of the following means:

i. Paid in full (if and only if there was either a voluntary or AWG payment posted during the review period).

ii. Compromised

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iii. Rehabilitated

iv. Consolidated

v. Discharged due to death

vi. Discharged due to total and permanent disability

vii. Incarcerated (if and only if the expected release date is greater than 10 years from the verification date.

viii. Referred for litigation

b. Dollars Collected Factor: Net amount of voluntary and AWG payments posted during the performance period, adjusted to deduct bounces (NSFs), reversals and refunds of voluntary and AWG payments, where the bounce, refund or reversal posted during the performance period.

(2) An “Unadjusted Total Base Score” will be calculated by adding the weighted versions of the following two (2) Scores ((a) and (b)):

a. Borrowers Resolved Score:

i. Dividing the number of borrowers resolved (as defined in C.3.37(1)(a) by the total inventory, which equals the total number of unique borrowers (with a balance >=$25) as of the day before the performance reporting period begins (e.g. the denominator would be as of December 31 for the first quarter (January-March)), and multiplying by 100 to calculate the Unweighted Borrowers Resolved Score

ii. Multiplying the result of C.3.37(2)(a)(i) by the weight assigned for the performance reporting period to calculate the Weighted Borrowers Resolved Score.

b. Dollars Collected Score:

i. Dividing the dollars collected (as defined in C.3.37 (1) b.) by the total inventory balance as of the day before the performance reporting period begins (e.g. the denominator would be as of December 31 for the first quarter (January-March)), and multiplying by 100 to calculate the Unweighted Dollars Collected Score.

ii. Multiplying the result of C.3.37(2)(b)(i) by the weight

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assigned for the performance reporting period to calculate the Weighted Dollars Collected Score.

The relative weights of the Borrowers Resolved and Dollars Collected Factors are initially set at 50% each.

(3) The “Unadjusted Total Base Score” will be adjusted by comparing it to the Minimum Acceptable Score for the relevant period. Only those scores above that minimum for the period will be retained, as follows:

a. A Minimum Acceptable Ratio will be defined for each transfer period and will be used to establish the relative Minimum Acceptable Score (the minimum score a contractor must achieve as a percent of the highest scoring Contractor’s score), to be eligible for any placements in the next period. Initially, the Minimum Acceptable Ratio is set at 70%.

b. The Minimum Acceptable Score is calculated relative to the highest scoring contractor by multiplying the Minimum Acceptable Ratio by the highest score.

c. Scores below the acceptable minimum will be adjusted to zero. Any contractor receiving less than the Minimum Acceptable Score for the period will receive an “Adjusted Total Base Score” of zero. For any contractor scoring above the Minimum Acceptable Score, its Adjusted Total Base Score will be the same as the Unadjusted Total Base Score.

(4) Each contractor’s Base Allocation Score will be calculated by dividing each contractor’s Adjusted Total Base Score (described in C.3.37(3)) by the sum of all contractors’ Adjusted Total Base Scores, and multiplying by 100.

(5) A Service Quality (SQ) Score will be computed for each contractor. Initially, the SQ Score will be the sum of the weighted versions of two SQ Sub-Factors or Scores: Call Counseling Compliance and Borrower Satisfaction. The final score for each sub-factor is computed and weighted as described below (for additional detail, refer to the Hypothetical Scenario and Calculator):

a. Call Counseling Compliance Score.

i. Dividing the number of monitored calls found to contain no errors by the total number of calls monitored and multiplying by 100 to calculate the Unweighted Call Counseling Compliance Score.

ii. Multiplying the result of C.3.37(5)(a)(i) by the weight assigned for the performance period to calculate the Weighted Call Counseling Compliance Score

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b. Borrower Satisfaction Score

i. Dividing the number of complaints received against the contractor (Borrower Complaints) during the performance period by the total number of complaints received against all contractors during the performance period to calculate the Share of Complaints

ii. Subtracting the Share of Complaints score from the contractor’s Share of Portfolio, which is the contractor’s starting inventory size (described in C.3.37(2)(a)(i)) divided by the sum of all contractors’ starting inventory sizes for the performance period to calculate the Unweighted Borrower Satisfaction Score

iii. Multiplying the result of C.3.37(5)(b)(ii) by the weight assigned for the performance period to calculate the Weighted Borrower Satisfaction Score

The relative weights of the Call Counseling and Borrower Satisfaction Scores are initially set at 50% each.

(6) The Allocation Modifier, based on the SQ Score, will be applied to the Base Allocation Score of each contractor. The Allocation Modifier will be computed by subtracting 50 from the SQ Score and then dividing by 100. If the Service Quality Score is less than the Minimum Acceptable Service Quality Score for the performance period, the Allocation Modifier will be -100% (i.e., the contractor’s Adjusted Allocation Score and Final Allocation Percentage will be zero).

(7) The Adjusted Allocation Score will be computed by multiplying the Base Allocation Score by the Allocation Modifier.

(8) The Final Allocation Percentages are calculated by dividing each Contractor’s Adjusted Allocation Score by the total of all Contractors’ Adjusted Allocation Scores.

Hypothetical CPME Calculation (See Attachment 6)

The following hypothetical scenario is intended to serve as an illustration of how CPME results, including Final Allocation Percentages and Evaluation Scores, could be calculated (note that weighing factors, minimum acceptable ratios, and other aspects or

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elements of the methodology may change in the future). The following is intended for illustration purposes only; actual results will vary. More than four vendors may be issued task orders.

(9) Evaluation Score – Evaluation Scores will be based on the sum of Weighted Comparative Performance and Weighted Comparative Service Quality Scores.

a. Comparative Performance Score.

i. The Unweighted Comparative Performance Score will be calculated by dividing the contractor’s Unadjusted Total Base Score described in C.3.37(1) by the highest Unadjusted Total Base Score among all contractors and then multiplying by 100.

ii. The Weighted Comparative Performance Score will be calculated by multiplying the Unweighted Performance Score by a weight established by the Department.

b. Comparative Service Quality Score

i. The Unweighted Comparative Service Quality Score will be calculated by dividing the contractor’s Service Quality Score described in C.3.37(5) by the highest Service Quality Score among all contractors, and multiplying by 100.

ii. The Weighted Comparative Service Quality Score will be calculated by multiplying the Unweighted Comparative Service Quality Score by a weight established by the Department.

What follows is a hypothetical Evaluation Score calculation.

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C.3.38 Allocation Methodology Standing and Performance Range

In assessing the overall quality of a contractor’s performance during a given period, the Department will consider the CPME’s Evaluation Scores as well as other factors. Overall performance quality will be rated using the following ratings:

a) Exceptional: 90-100

b) Very Good: 89-85

c) Satisfactory: 84-75

d) Marginal: 74-65

e) Unsatisfactory: 64 and below

An initial, base rating based on Evaluation Scores will be assigned, utilizing the rating scale above. For the final rating, the Department may take into consideration other performance indicators, including compliance with federal and state laws and regulations governing collection activity, the result of call monitoring and other reviews, including UDAAP and FDCA-focused reviews; complaints, security risks or violations, (including release of PII information); computer system inadequacies; or deficiencies in procedures, quality control or training. Unsatisfactory performance revealed by such indicators may lead to an overall rating of Unsatisfactory even when the contractor’s Evaluation Score was above 55 or above any other minimum score for the period.

The fact that a contractor achieves a CPME Final Allocation Percentage above 0% for one or more periods is not sufficient to entitle the contractor to receive future account placements under a task order. Nor are CPME results sufficient to ensure the issuance of additional task orders or the exercise of any optional extensions of the contract. Decisions to place accounts, to issue task orders, and to exercise options are entirely at the discretion of the Department (subject only to

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applicable regulatory requirements).

ED may choose to stop ordering services from one or more contractors at any time and for any reason when it is in the best interest of the government.

5. Change Section C.3.39 to read:

C.3.39 Small Business Mentoring

a) Any contractor that receives an award under this solicitation may establish a mentoring relationship from among any of the incumbent Restricted and Unrestricted Pool PCA contractors. Within 30 days before entering into a mentoring relationship, the small business contractor shall send a notice to the Contracting Officer and the Contracting Officer’s Representative indicating the name of the mentor selected. A small business may only change its mentor with the prior written authorization of the Contracting Officer.

b) The mentoring may include loans or gifts of technology or other resources, training or transfers of employees between companies or other arrangements agreeable to both parties. The mentoring may not include direct financial support, such as loans of capital from the business in the Restricted or Unrestricted Pool to the small business or stock or bond purchases. However, it is not the intent of this clause to restrict a small businesses access to financing outside of the mentoring process. For example, ED would not object to a small business obtaining a loan from a financial institution that customarily makes business loans, even if the financial institution also owned a controlling interest in the small business’ PCA mentor contractor.

c) Under the provisions of this section (5), funds of up to, but not to exceed $250,000 will be available per quarter for mentors up through the first eight quarters (24 months) of the contract to support the mentoring relationship as long as the mentee small business is meeting the minimum performance standard required under the contract. If the mentee fails to meet minimum performance standards during a given quarter, the mentor will not receive payment for that quarter. However, the mentor may be paid for subsequent quarters if the mentee improves performance to the minimum acceptable level for those quarters. The payment each mentor will receive will be based on the mentee’s allocation percentage for the quarter, assuming the mentee performed successfully. For example, if the mentee’s allocation percentage for the quarter is 10%, the mentor would receive $25,000 ($250,000 X 10%) for that quarter. Successful mentorship of a small business may also be annotated in the mentor’s Contractor Performance Assessment Review System (CPARS).

d) While it is ED’s intent to be flexible in allowing mentoring arrangements that will promote successful Task Order performance by both parties, no deviations from the Performance Work Statement or other contract provisions will be allowed without the Contracting Officer’s approval. Mentoring arrangements may not give, nor contain

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provisions that would potentially give, the business in the Unrestricted Pool a control (as defined in FAR 19.101 Explanation of Terms) in the small business contractor or one of its small business team partners.

6. Change Section D – Contract Documents, Exhibits, or Attachments to read:

Attachment 1: Performance Work Statement (PWS)

Attachment 2: Subcontracting Plan Template

Attachment 3: Other than Cost or Pricing Data Worksheet

Attachment 4: Questions and Answers Template

Attachment 5: Small Business Participation Plan Template

Attachment 6: Sample CPME Calculation

7. Change Section D of Proposal to read:

Section D of Proposal.

Offers should be received no later than 5:00PM Eastern Standard Time on Feb 22, 2016 for the following:

a) Most Recent Independently Audited and Certified Financial Statement.

b) Completion of EDAR 3452.209-70 Conflict of Interest Certification (See E.3.2(f)).

c) Completion of FAR 52.215-6 Place of Performance (See C.2).

d) Written Preliminary Plan for Continuation of Mission Critical Contractor Services (See

C.3.33)

e) Completion of SF1449 (1 copy) including any amendments to the solicitation.

f) Those Offerors proposing a teaming arrangement shall disclose and explain the arrangement, including whether the teaming arrangement is a partnership or joint venture between two or more companies; or a potential prime contractor subcontracting with one or more companies. (1 page limit) Refer to FAR Subpart 9.6.

g) Other than Cost and Pricing Information (Attachment 3).

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Offers should be received no later than 5:00PM Eastern Standard Time on Feb 29, 2016 for the following:

a) Subcontracting Plan (Attachment 2) – Applies to Other Than Small Businesses Only.

b) Small Business Participation Plan (Attachment 5). Applies to All Offerors.

8. Change Proposal Format Requirements to read:

Each section of the Offeror’s proposal (Section A, B, C, and D) must be a separate .doc or .pdf file. The Offeror shall not combine all sections of the proposal and submit it as a single file.

Proposals will be submitted in Times New Roman, 12 point font.

9. Change Section E.2 FAR 52.212.-2 Commercial Items (Oct 2014) Tailored to read:

(a) The Government may award one or more IDIQ contracts resulting from this solicitation to the responsible offeror(s) whose offer(s) conforming to the solicitation will be most advantageous to the Government. See FAR Subpart 16.5 for information on IDIQ contracts. Prior to starting performance, each offeror who receives an IDIQ contract will also have to receive a task order. The Government reserves the right to award without discussions.

The following factors will be used to evaluate offers:

• Factor 1: Past Performance

• Factor 2: Management Approach

• Factor 3: Small Business Participation Plan

10. Change Section E.1, Section B of Proposal to read:

Section B of Proposal. Past Performance.

a) Relevant Past Performance. (5 page limit per contract or project)

The Offeror will submit information on no more than three (3) of its most recent and relevant contracts or projects.

In this section of the proposal, the Offeror shall describe the work performed for each identified project or contract and explain in detail why it is believed to be relevant to the requirements in the PWS in its size, scope and/or complexity.

For each contract or project, the Offeror must identify a point of contact knowledgeable about

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the offeror’s past performance (including name, title, email address, and phone number). If there is information for a project or contract in the Contractor Performance Assessment Reporting System (CPARS) or the Past Performance Information Retrieval System (PPIRS), then it is not necessary to provide a point of contact for that project or contract.

11. Change Section E.2.1 Evaluation Factors to read:

Subfactor 1.a. – Relevance of Past Performance

The three projects or contracts submitted by the Offeror in its proposal in accordance with Section B, will be examined to determine the relevance of the Offeror’s past performance, considering similarities in size, scope and complexity of those projects or contracts to the requirements in the Performance Work Statement (PWS).

Factor 3 – Small Business Participation Plan

(a) All Offerors (both large and small businesses) are required to provide a Small Business Participation Plan in accordance with Attachment 4. Offerors shall propose the level of participation of small businesses (as a small business prime and/or through subcontracting and/or other appropriate business relationships) in the performance of this acquisition.

b) Offeror’s proposal must meet the minimum mandatory Total Small Business Participation goal through collective small business participation from any type of small business or sub-category small business, whether small business prime or 1st tier small business subcontractor.

The subcategory small business goals are NOT mandatory. However, the Government will evaluate the proposal to determine which offeror(s) proposal the best value in terms of meeting all the Small Business Participation goals herein. The work to be performed directly by a small business prime will be evaluated as small business participation. The small business participation goals for this acquisition are:

Total Small Business (any type of small business): 25.5% of total contract value Sub-category Small Business:

5.0% of total contract value to Small Disadvantaged Business (SDB) 5.0% of total contract value to Women Owned (WOSB) 3.0% of total contract value to HUBZONE 3 % of total contract value to Service-Disabled Veteran Owned (SDVOSB)

(Note, for example, that a participation plan that reflects 1% of the total contract value for WOSB would also count towards the overall Small Business Goal.

(c) Small Business Participation Plans will be evaluated on the basis of:

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(1) The extent to which such Small Business firms are specifically identified in proposals;

(2) The extent of commitment to use such Small Business firms (and enforceable commitments will be considered more favorably than non-enforceable ones);

(3) Identification of the complexity and variety of the work small firms are to perform;

(4) Past performance of the offeror in complying with the requirements of FAR clauses

52.219-8, Utilization of Small Business Concerns and 52.219-9, Small Business Subcontracting Plan; and

(5) The extent of participation of small business prime offerors and 1st tier small business subcontractors in terms of the percentage of the value of the total acquisition and the extent to which the proposal meets or exceed the small business participation goals for this acquisition.

(d) Separate from the Small Business Participation Plan, large business offerors shall also submit a Subcontracting Plan as required by FAR 52.219-9, Alternate III. Subcontracting plans will be reviewed (as part of the responsibility determination of the apparent winners) to determine if they are acceptable. A large business will not be eligible for award if it fails to submit an acceptable Subcontracting Plan. Subcontracting Plans shall reflect and be consistent with the commitments offered in the Small Business Participation Plan.

12. Change Section E.2.3 Price to read:

The Government has established common pricing which is found in Schedule B of the SF1449.

The contracting officer will establish final pricing before award.

13. Change Section E.2.4 Determination of Responsibility to read:

The Contracting Officer will make a determination of responsibility for all prospective awardees pursuant to FAR Subpart 9.1 – Responsible Prospective Contractors. As part of the determination of responsibility, the Contracting Officer will consider each Offeror’s negative judgments, including but not limited to loss of a civil lawsuit (not to include settlements), criminal conviction of a corporate official that was related to financial mismanagement of the Offeror’s organization, and/or a fine or loss of a license as determined by a governing body.

The Small Business Subcontracting Plan will also be reviewed as part of the responsibility determination of the apparent winners to determine whether they are acceptable.

Offerors who are other than small businesses must provide a small business subcontracting plan in accordance with the requirements of FAR 52.219-9. The Offeror may use the Subcontracting Plan Template (Attachment 2). The Offeror shall propose the small business subcontracting percentage, which is defined as the percentage of the Offeror’s account transfers received from FSA that will be subcontracted to small business. The small business subcontracting percentage must include collection efforts, e.g. the small business subcontractor performs the entire collection process from skip-tracing through collections, to include rehabilitation and consolidation, as well as administrative wage garnishment and not just one part of the collection process, such as skip-tracing. Offerors that propose subcontracting 50% or more of their account

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transfers are considered to be at a higher risk of unsatisfactory performance.

In addition to the requirement to submit a subcontracting plan, the Offeror shall list all subcontractors, including roles, responsibilities, and if they will have access to Government data under the resulting contract and provide an update within 30 days if any information changes.

Small business subcontracting percentages will be rounded to the nearest tenth (0 to 4 hundredths rounds down and 5 to 9 hundredths rounds up).

An Offeror that proposes a small business subcontracting commitment of less than 5% of account transfers to small business will receive an unsatisfactory rating.

(1) In accordance with requirements of FAR 19.705-4, the Government will evaluate whether the Offeror proposed subcontracting goals that are challenging, and attainable. The Government will review subcontracting plans to determine if the:

• Offeror can meet subcontracting plan goals;

• Offeror’s goals are consistent with their cost or pricing data or information other than cost or pricing data;

• Offeror has honored the terms of subcontract agreements (i.e., timely payments of amounts owed, use of firms cited in proposal, etc.) in previous contracts;

• If the Subcontracting Plan includes the contractor’s commitment to adopt and comply with its requirements and goals for small business utilization;

• If the Offeror’s subcontracting goals are in accordance with FSA’s subcontracting goals and;

• The Offeror will be evaluated on their commitment to grow small businesses in support of FSA’s small business subcontracting goals, demonstrated by the proposed percentage of the Offeror’s account transfers that the Offeror commits to subcontract to small business from date of first account transfer through the end of contract (refer to Attachment 2). This requirement is necessary even if the Offeror is a small business.

(2) The Government shall review the subcontracting plan as “acceptable” or “unacceptable:”

• Acceptable. The subcontracting plan meets all of the requirements listed in Section (a).

The Offeror has provided details that demonstrate an acceptable approach to assisting, promoting and utilizing small businesses, small disadvantaged businesses, women-owned small businesses, historically underutilized business zone small businesses, veteran-owned small businesses, and service disabled veteran-owned small businesses. The Offeror has demonstrated an ability to meet prior subcontracting plan goals and honor the terms of subcontract agreements. The subcontracting goals are realistic, challenging, and attainable.

• Unacceptable. The subcontracting plan fails to meet a requirements listed in Section (a).

The offeror has not provided an acceptable approach to assisting, promoting, and utilizing small businesses. The offeror has a history of failing to honor subcontract agreements. The Offeor’s proposed subcontracting goals are not attainable in light of the contractor’s past performance in meeting subcontracting goals. The Offeror’s goals are not realistic, challenging, or attainable.

Failure to receive a rating of acceptable may jeopardize offeror’s eligibility for contract award.

See FAR 19.702(a)(1).

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The subcontracting plans will also be coordinated with the Small Business Administration (SBA) in accordance with 19.705-6.

14. Change Section 1.1 of the Performance Work Statement to read:

1.1. GENERAL ACCOUNT CHARACTERISTICS

The general characteristics of the portfolio, as of September 30, 2015 are borrower accounts having a balance (principal, interest, penalty fees, fees, and administrative costs) of $500.00 or more.

15. Change Section B.2.2 of the Performance Work Statement to read:

B.2.2. Rehabilitation

Provided that the borrower meets all regulatory and statutory requirements (as specified in the Performance Work Statement), the Contractor will be paid at a rate that is equal to the principal and interest balance being rehabilitated, not to exceed $1710, (i.e. if the balance rehabilitated is $537, then the PCA would be paid $537). This fee is a one time, per borrower fee, combined principal and interest balance up to a maximum of $1,710 per account. Rehabilitation fees will be cumulative until the $1,710 maximum is met, (meaning that the PCA could earn $1,000 in one month and $710 in a later month if loans are closed in different months).

16. Change Section 2.7 Repayments of the Performance Work Statement to read:

2.7 REPAYMENTS

The Contractor is strictly prohibited from soliciting the receipt of payments and then processing the payments under this Contract. The exception is outlined in 2.7.1 in which the Contractor is able to process credit card payments on behalf of ED through the approved vendor Pay.Gov. The Contractor is also prohibited from soliciting post-dated checks. ED's Lockbox will not accept post-dated checks. Reference the Procedures Manual for instructions relative to this subject.

2.7.1. CREDIT CARDS

Any contractor that processes credit cards/debit cards for accounts under this Contract shall abide by all credit card securities and requirements as outlined by ED and contained in the Payment Card Industry Data Security Standard (PCI DSS). The Contractor is responsible for the security of any cardholder data it maintains or possesses.

17. Change Section 5.0 Contractor Deliverables to read:

a) List of subcontractors, to include the Offeror shall list all subcontractors, including roles, responsibilities and if they will have access to Government data under the resulting contract

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and provide an update every 30 days.

18. Change Section 7.5.1.5 of the Performance Work Statement to read:

Attachment 2 is Service Level Agreements (SLAs) which will be used to measure Contractor compliance with existing security requirements. The SLAs also include disincentives to encourage better performance in this area, without taking more serious actions (stop payment/show cause/stop work). Contractor employees who do not possess the proper clearance or (past an initial period for clearance application) puts the Departments programs, mission, and sensitive data at risk. The disincentive amounts in the SLAs are $5,000, $2,500, and $1,000. The disincentive would come into effect if on any monthly period for SLAs 1 & 2, if the contractor failed to achieve the metric or the contractor submitted inaccurate, incomplete, or untimely clearance over the standard errors allowed. Similarly on the Quarterly reports the contractor would be charged $1,000 for every error over the standard allowed.

19. Add Attachment 2 to the Performance Work Statement:

Service Level Agreements for Contractor Employee Clearance Monitoring

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