FMO SOW Recompete - FINAL Draft.docx

STATEMENT OF WORK

FINANCIAL MANAGEMENT OVERSIGHT

1.0 Overview

The Financial Management Oversight (FMO) program is one of the Federal Transit Administration’s (FTA) management tools for examining recipient 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 5338. This section allows the set-aside of one-half or three-quarters of one percent from certain program funds. Section 5338 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 recipient 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.

2.0 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 5010.1F, 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.

3.0 Description of Services/Specifications

CLIN 1: Program Management

Contract Kickoff Meeting The Program Manager from each contractor team shall participate in a contract kickoff meeting with the Contracting Officer (CO), Contracting Officer’s Representative (COR), and Office of Program Oversight. It is anticipated this meeting will occur within one week of contract award. This meeting will take place via conference call. The purpose of the kickoff meeting is to do the following below:

· Ensure that there is a mutual understanding of the work to be performed, understanding the terms and requirements among all parties responsible for the management and performance of the contract;

· Review priorities and expectations;

· Define and/or clarify roles and responsibilities and;

· Discuss the review schedule

Deliverables: There are no deliverables from this task.

Monthly Progress and Program Performance Reports

Concurrent with the monthly invoice, the Contractor shall produce a monthly progress report and risk and issue log summarizing the work performed in the previous month and the status of their work. The monthly report is due with the invoice and should cover all work performed the preceding month. A report template that the Contractor shall use and complete in full each month is provided as Attachment D: Progress Report and Risk and Issue Log.

Deliverables:

· Completed Monthly Progress Report and Risk and Issues Log

· Format: Microsoft (MS) Office Excel

· Deliver to: FTA COR via email

· Due: Concurrent with monthly invoice

Quarterly Contractor Meetings

The Contractor shall participate in quarterly meetings with the Office of Program Oversight. These meetings will be conducted in person as directed by the COR. All meetings will take place either at the USDOT Headquarters in Washington, DC, the USDOT Training Facility in Arlington, VA or virtually (when necessary). There is a potential for virtual meetings in the event of inclement weather, building closures, national emergencies, and/or other events impacting agency needs.

The Office of Program Oversight will schedule these meetings and develop the agendas. Upon request from COR, Contractor shall suggest agenda topics, report on specific issues or concerns, and/or document discussion points and action items and provide a written summary to the COR. The Senior Managers and up to two (2) key personnel staff shall participate in these meeting unless otherwise directed by the COR. While the exact timing of these meetings will be at the discretion of the COR they will roughly occur as follows:

· Quarterly Meeting 1: This meeting will likely occur in December or January (subject to change depending on award date) to discuss and changes to the review process or review guide questions.

· Quarterly Meeting 2: This meeting will be combined with the Annual Oversight Meeting described below.

· Quarterly Meeting 3: This meeting will likely occur in June (subject to change depending on award date) to discuss and resolve any issues that have emerged during the review process. This meeting will last approximately 8 hours.

· Quarterly Meeting 4: This meeting will be combined with the Annual Contractor Summit described below.

Deliverables:

· Agenda items and discussion topics

· Format: Email

· Deliver to: FTA Task Order COR

· Due: If requested, one week prior to quarterly meeting

· Summary of key discussion points and action items

· Format: MS Office Word

· Deliver to: FTA COR

· Due: If requested, within 5 business days after the quarterly meeting

FTA’s Annual Oversight Meeting

Contractor shall participate in FTA’s Annual Oversight Meeting, likely to be held in March or April. Attendance at this meeting is comprised of senior FTA leadership, oversight staff from FTA headquarters and regional offices, invited staff from other program offices, and FTA program oversight contractors. All contractor teams are expected to be represented at and actively participate in this meeting. FTA, at its discretion, may limit the number of attendees from each contractor team. Notification will be provided by the COR in advance of each conference. Upon request from COR, Contractor shall develop presentations, talking points, agendas, or other materials related to the Annual Oversight Conference. There is a potential for virtual Annual Oversight meetings in the invent of inclement weather, building closures, national emergencies, and/or other events impacting agency needs. Contractor teams will still be expected to be represented at and actively participate in these meetings.

Deliverables:

· Agenda items, presentations, talking points, and discussion topics

· Format: Email

· Deliver to: FTA COR

· Due: Per COR instructions

Program Oversight Contractors Summit

Contractor shall participate in the Office of Program Oversight’s Annual Contractor Summit, likely to be held in September or October. This annual summit of oversight review contractors is designed to provide a forum for contractors to better understand how other contractor teams approach and conduct reviews, training, and technical assistance; develop and share best practices; and improve the consistency in how FTA contractors conduct oversight reviews and identify findings of deficiency. All contractor teams are expected to be represented at and actively participate in this meeting. FTA, at its discretion, may limit the number of attendees from each contractor team. Notification will be provided by the COR in advance of each conference. Upon request from COR, Contractor shall develop presentations, talking points, agendas, or other materials related to the Program Oversight Contractors Summit. There is a potential for virtual Contractors Summit in the event of inclement weather, building closures, national emergencies, and/or other events impacting agency needs. Contractor teams will still be expected to be represented at and actively participate in these meetings.

Deliverables:

· Agenda items, presentations, talking points, and discussion topics

· Format: Email

· Deliver to: FTA COR

· Due: Per COR instructions

CLIN 2: Special Assignments

Within this CLIN, the Contractor may be tasked with various work items and special assignments to support FTA’s program oversight activities. Per the notification of the COR, the Contractor shall provide all resources necessary to perform tasks such as, but not necessarily limited to, the following:

· Participate in FTA-delivered training related to conducting the FMO Review, FTA grant programs, and using FTA IT systems including but not limited to OTrak and TrAMS.

· Lead recipient-hosted training related to FTA’s programmatic oversight.

· Conduct informational sessions for FTA staff and/or Recipients, which may or may not include development of informational materials, MS PowerPoint presentations, other audio-visual aids, workbooks, manuals, pamphlets or oral presentations.

· Attend industry conference to assist in the presentation of oversight-related information.

· Prepare and/or participate in delivering technically correct and professional briefings, presentations, etc. on matters related to the FMO Review program.

· Prepare ad-hoc program level reports, gather data, and capture lessons learned for publication to FTA internal and/or external websites or for meetings.

· Aid FTA staff with various OTRAK activities, such as:

· Extract and analyze data

· Participate in establishing requirements for and testing new system functionality

· Aid with detailed and crosscutting analysis of oversight data.

· Aid with developing and modifying oversight strategies for grant programs.

· Assist FTA with Special Projects (e.g., developing and reviewing procedural improvements to programs and developing informational materials including, audiovisuals or overhead projections).

Special Assignment Work Plans and Budgets In advance of each assignment, the Contractor shall submit to the COR as follows below:

Special Assignment Work Plan – The Contractor shall submit a special assignment work plan for each assignment detailing the Contractor’s understanding of the assignment, work tasks to be undertaken, deliverables to be provided to FTA, and schedule for assignment completion.

Special Assignment Budget – The Contractor shall submit a budget detailing the labor and direct expenses that the Contractor will incur to complete the assignment. Contractor shall not begin work on the assignment until the Special Assignment Work Plan and Budget have been approved by the COR and the COR has issued a written approval for work to begin. Once approved by the COR, the Special Assignment Work Plan shall be considered the assignment scope of work and the Special Assignment Budget shall be considered the not-to-exceed (NTE) amount for the assignment. Any deviation from the Special Assignment Work Plan or Special Assignment Budget must be approved, in writing, by the COR in advance of the Contractor performing any work not included in the Special Assignment Work Plan or billing beyond the NTE amount.

Deliverables:

· Special Assignment Work Plan

· Format: MS Office Word

· Deliver to: FTA COR via email

· Due: Within 5 business of receipt of assignment from the FTA COR

· Special Assignment Budget

· Format: MS Office Excel

· Deliver to: FTA COR via email

· Due: Within 5 business of receipt of assignment from the FTA COR

Special Assignment Task Deliverables Special assignment tasks may include assignment-specific deliverables. These will be described in the Special Assignment Work Plan along with the format for deliverables and schedule and mechanism for delivery.

Deliverables:

· Special Assignment Deliverables (as identified in the Special Assignment Work Plan)

· Format: As identified in the Special Assignment Work Plan

· Deliver to: FTA COR and others as identified in the Special Assignment Work Plan via email unless otherwise specified in the Special Assignment Work Plan

· Due: As identified in the Special Assignment Work Plan

Special Assignment Technical Memorandum

After each assignment, unless otherwise notified by the COR, Contractor shall submit a Special Assignment Technical Memorandum detailing the work performed, discussing issues of note, and suggesting next steps for FTA as appropriate.

Deliverables:

· Special Assignment Technical Memorandum

· Format: MS Office Word

· Deliver to: FTA COR and others as identified in the Special Assignment Work Plan via email

· Due: Within 10 business of completing the special assignment.

CLIN 3: Financial Management Oversight Reviews

The Contractor shall conduct financial management oversight reviews at the written request of the FTA COR. The following reviews may be requested:

CLIN 3.1 – Full Scope Financial Managements System Review

The objectives of this task are to initiate, perform, and report on financial management system reviews of recipients assigned by FTA. The reviews shall be performed in accordance with applicable AICPA Professional Standards. The contractor performs transaction testing to evaluate the recipient's financial management systems. 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 recipient and its current major capital investment project, and verifies that the recipient’s financial management system meets the requirements of the Uniform Administrative Requirements, as defined in 2 CFR Part 200. If a recipient's system is not in compliance with the Uniform Administrative Requirements, 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 recipient’s financial management system meets the requirements of the Uniform Administrative Requirements (2 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 recipient’s internal control environment. These reviews require multiple visits to the recipient. 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 2 CFR Part 200 (Uniform Administrative Requirements), the financial management system of recipients and sub-recipients, 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 federally assisted activities must be made in accordance with financial reporting requirements.

2. Accounting Records. Recipients and subrecipients must maintain records that adequately identify the source and application of funds provided for federally assisted activities. These records must contain information pertaining to the Award or subawards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income.

3. Internal Control. Effective control and accountability must be maintained for all cash provided to support the Award or subaward, real and personal property, and other assets; recipients and subrecipients must adequately safeguard all such property and must ensure that it is used solely for authorized purposes.

4. Budget Control. Actual expenditures or outlays must be compared with budgeted amounts for each Award or subaward. 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 or Cooperative Agreement or written agreement with the subrecipient. If the unit cost data are required, estimates based on available documentation will be accepted whenever possible.

5. Allowable Cost. Applicable Office of Management and Budget (OMB) cost principles of 2 CFR part 200 for Awards made on or after December 26, 2014, and OMB cost principles for Awards made before December 26, 2014, as stated in former 2 CFR parts 220, 225, and 230, as applicable. U.S. DOT program regulations, and the terms of the Grant or Cooperative Agreement or other written agreement with the subrecipient, must be followed in allowability and allocability of costs.

6. Source Documentation. Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records, contracts, and subrecipient documents.

7. Cash Management. Procedures for minimizing the time elapsing between the transfer of funds from the Treasury and disbursement by recipients and subrecipients must be followed whenever advance payment procedures are used. Recipients must establish reasonable procedures to ensure the reports on subrecipients’ cash balances and cash disbursements are received in sufficient time to enable them to prepare complete and accurate cash transactions reports to the awarding agency. When advances are made by electronic transfer of funds methods, the recipient must make drawdowns as close as possible to the time of making disbursements. Recipients must monitor cash drawdowns by their recipients to ensure that they conform substantially to the same standards of timing and amount that apply to advances to recipients. Payment received from FTA must be disbursed within three business days. If not disbursed within three days, funds become excess funds and must be returned to FTA with interest.

The contractor must determine if the recipient’s financial management system complies with each of the seven standards described above. If a recipient's system does not comply with the Uniform Administrative Requirements 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 recipient’s project financial accounting system can 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 recipient's overall financial management system;

2. Determine if the recipient's fixed assets tracking system meets the requirements in the Uniform Administrative Requirements, 2 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.

The FTA will make the initial contact with the recipient. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the recipient. 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 recipient site visit, FTA representatives may accompany the contractor.

CLIN 3.2 – Follow-up to Full Scope Management System Review

The contractor will perform and report on a follow-up financial management system review on recipients 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.

The FTA will make the initial contact with the recipient. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the recipient. 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 recipient site visit, FTA representatives may accompany the contractor.

CLIN 3.3 – Cost Allocation Plan/Indirect Cost Rate Review

The contractor will perform and report on Cost Allocation Plan/Indirect Cost Rate Proposals (CAP/IDCRP) submitted to FTA by its recipients for approval. The objective of the CAP/IDCRP Rate review is to assure that the rate claimed by a recipient 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 5010.1F (or the latest version of 5010 circular), and the grant agreement as a condition for reimbursement.

· The contractor will determine if the CAPs/IDCRPs distribution of indirect costs are acceptable:

· 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/IDCRP 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/IDCRP 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 recipient, the confidence (or lack of confidence) the reviewer has in the reliability of the recipient’s financial reports and representations.

The Contractor shall make the initial contact with and request a copy of the CAP/IDCRP 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 recipient 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 recipient site visit, FTA representatives may accompany the contractor.

CLIN 3.4 – Agreed-Upon Procedures

The Contractor shall conduct Agreed-Upon Procedures to carry out special assignments under the FMO program. The contractor will be required to develop procedures for FTA agreement sufficient to meet their engagement objective. Procedure effectiveness is effectiveness is based on FTA requirements. Agreed-Upon Procedures are used to address concerns by FTA as to whether grants funds were spent per the guidelines of the grant and in accordance with the applicable cost principles. The review is conducted to add credibility to the assertion of FTA. The report will contain procedures used and findings, contractor’s independence from all other parties are required. 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 recipient’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.

The FTA will make the initial contact with the recipient. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the recipient. 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 recipient site visit, FTA representatives may accompany the contractor.

CLIN 3.5 – Consulting Engagements

The Contractor shall conduct Consulting Engagements to carry out special assignments under the FMO program. The contractor will be required to develop procedures for FTA agreement sufficient to meet their engagement objective. Consulting Engagements are used to address concerns by FTA as to whether grants funds were spent per the guidelines of the grant and in accordance with the applicable cost principles. The primary purpose of the review is to develop findings, conclusions, advice, and recommendations that assist management in making decisions or meeting other objectives. The report will typically contain methodologies employed, analyses, findings, conclusions and recommendations. 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 recipient’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.

The FTA will make the initial contact with the recipient. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the recipient. 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 recipient site visit, FTA representatives may accompany the contractor.

CLIN 3.6 – Financial Condition and Capability Assessment (non-New Starts) The Contractor will perform and report on the financial condition, capability and/or capacity of selected FTA recipients. The contractors will evaluate and render a determination as to the recipient’s financial condition and their capability and/or capacity to complete the undertaking per 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.

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

The Contractor shall determine the recipient’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 per 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 recipient’s funding partners;

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

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

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

· the recipient’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 recipient’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 recipient’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 recipient’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:

· Demonstrates 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, and programs.

· 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 recipient’s control. Measure the impact of the sensitivity analyses to the financial plan and to recipient’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 recipient’s financial capacity. Include as attachments the financial plan, sensitivity analysis and stress scenarios.

The FTA will make the initial contact with the recipient. After the initial contact, the contractor will be responsible for all coordination with FTA regional staff and with the recipient. 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 other recipient site visit, FTA representatives may accompany the contractor.

CLIN 4: Financial Management Oversight Resource Manual (FMO Manual) and Financial Management Oversight Workshop Workbook and Materials

For this CLIN, the following work is needed from the contractors:

CLIN 4.1 – 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 compact discs (CDs) of the FMO Manual to FTA and FMO contractors.

CLIN 4.2 – 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.

CLIN 5: Corrective Action Support

The Contractor shall, per the notification of the FTA COR, provide targeted assistance to FTA regional or program office staff to review material submitted by a Recipient to verify that the Recipient has successfully fulfilled the requirements of a corrective action.

Corrective Action Support Work Plan and Budget

Corrective Action Support Assignments will be tasked to Contractors based on specific needs of FTA and specific capabilities of the Contractor. In advance of each assignment, the Contractor shall submit to the FTA COR:

· Corrective Action Support Work Plan for each assignment detailing the Contractor’s understanding of the assignment, work tasks to be undertaken, deliverables to be provided to FTA, and schedule for assignment completion.

· Corrective Action Support Budget detailing the labor and direct expenses that the Contractor will incur to complete the assignment.

The Contractor shall not begin work on the assignment until the Corrective Action Support Work Plan and Corrective Action Support Budget have been approved by the FTA COR and the COR has issued a written approval for work to begin. Once approved by the FTA COR, the Corrective Action Support Work Plan shall be considered the assignment scope of work and the Corrective Action Support Budget shall be considered the not-to-exceed amount for the assignment. Any deviation from the Corrective Action Support Work Plan or Corrective Action Support Budget must be approved, in writing, by the COR in advance of Contractor performing any work not included in the Corrective Action Support Work Plan or billing beyond the NTE amount.

Deliverables:

· Corrective Action Support Work Plan

· Format: Microsoft (MS) Office Word

· Deliver to: FTA COR via email

· Due: Within 5 business of receipt of assignment from the FTA COR

· Corrective Action Support Budget

· Format: Microsoft Excel

· Deliver to: FTA COR via email

· Due: Within 5 business of receipt of assignment from the FTA COR

Corrective Action Support Task Deliverables

Corrective Action Support assignments may include assignment-specific deliverables. These will be described in the Corrective Action Support Work Plan along with the format for deliverables and schedule and mechanism for delivery.

Deliverables:

· Corrective Action Support Deliverables (as identified in the Corrective Action Support Work Plan)

· Format: As identified in the Corrective Action Support Work Plan

· Deliver to: FTA COR and others as identified in the Corrective Action Support Work Plan

· Due: As identified in the Corrective Action Support Work Plan

Corrective Action Support Technical Memorandum

Upon review of the Recipient materials, the Contractor shall provide the COR and Regional Office a technical memorandum providing an assessment, with explanations and justifications, of whether the Recipient’s submitted materials successfully address the assigned corrective action. If the submitted material does not sufficiently address the identified deficiency, the Contractor shall provide instructions on steps the recipient should consider taking to address the finding.

Deliverables:

· Corrective Action Support Technical Memorandum

· Format: MS Office Word

· Deliver to: FTA COR via email

· Due: Within 10 business of completing the special assignment.

CLIN 6: Targeted Technical Assistance

Upon request from the COR, Contractor shall provide targeted technical assistance directly to one or more Recipients. Such technical assistance is most often related to a recently performed oversight review however, it can be utilized as a means for providing specific technical assistance to Recipients for reasons unrelated to a review. Contractors may also be required to monitor Recipients’ adherence with corrective actions after the findings have been closed, or to assist Recipients who are experiencing difficulties with program implementation issues.

The goal of this technical assistance is to help build compliance capacity within the Recipient and the scope of a technical assistance effort will vary depending on the need of a Recipient. Contractor’s role is limited to advice, guidance, and training. The Contractor shall not develop, write, or implement documents, policies, or procedures for Recipients. Typical technical assistance efforts focus on:

· On-site training to improve Recipient understanding of specific compliance topics

· Guidance and advice for the development of new policies and procedures

· Review of documents and processes for compliance with FTA rules and policies

· Monitor implementation of new or updated policies, processes or systems

Technical Assistance Work Plan and Budget

Assignments will be tasked to Contractors based on specific needs of FTA and specific capabilities of the Contractor. In advance of each assignment, Contractor shall submit to the FTA COR:

· Technical Assistance Work Plan for each assignment detailing the Contractor’s understanding of the assignment, work tasks to be undertaken, deliverables to be provided to FTA, and schedule for assignment completion.

· Technical Assistance Budget detailing the labor and direct expenses that the Contractor will incur to complete the assignment.

The Contractor shall not begin work on the assignment until the Technical Assistance Work Plan and Technical Assistance Budget have been approved by COR and COR has issued a written approval to begin work. Once approved by the COR, the Technical Assistance Work Plan shall be considered the assignment scope of work, and the Technical Assistance Budget shall be considered the not-to-exceed (NTE) amount for the assignment. Any deviation from the Technical Assistance Work Plan or Technical Assistance Budget must be approved, in writing, by the COR in advance of the Contractor performing any work not included in the Technical Assistance Work Plan or billing beyond the NTE amount.

Deliverables:

· Technical Assistance Work Plan

· Format: MS Office Word

· Deliver to: FTA COR via email

· Due: Within 5 business of receipt of assignment from the FTA COR

· Technical Assistance Budget

· Format: MS Office Excel

· Deliver to: FTA COR via email

· Due: Within 5 business of receipt of assignment from the FTA COR

Technical Assistance Task Deliverables

Technical Assistance assignments may include assignment-specific deliverables. These will be described in the Technical Assistance Work Plan along with the format for deliverable and schedule and mechanism for delivery.

Deliverables:

· Technical Assistance Deliverables (as identified in the Technical Assistance Work Plan)

· Format: As identified in the Technical Assistance Work Plan

· Deliver to: FTA COR and others as identified in the Technical Assistance Work Plan

· Due: As identified in the Technical Assistance Work Plan

Technical Assistance Technical Memorandum

After each assignment, unless otherwise notified by the COR, Contractor shall submit a technical memorandum detailing at a minimum, but not limited to the compliance issues that led to the technical assistance, work performed, outcomes of the technical assistance, issues of note and/or concern, next steps for FTA as appropriate. Unless otherwise directed, Contractor shall submit this document in MS Word format to the COR within 10 business days of completing the assignment.

Deliverables:

· Technical Assistance Technical Memorandum

· Format: MS office Word

· Deliver to: FTA COR and others as identified in the Technical Assistance Work Plan

· Due: Within 10 business of completing the assignment.

CLIN 7: Financial Management Oversight Workshop/Training

A lead contractor may be selected annually to provide FTA technical support in conducting the Financial Management Oversight workshop/training program. The workshop/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 workshop/training will be designed to assist recipients 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 workshop/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 recipients. The contractor will also assist in updating and development New FMO training initiatives and innovative workshop/training delivery methods, as directed.

The FMO contractors may conduct virtual workshop/trainings for FTA staff and/or Recipients related to FTA’s programmatic oversight, which may or may not include development of informational materials, MS PowerPoint presentations, other audio-visual aids, workbooks, manuals, pamphlets or oral presentations.

CLIN 7.1 – FMO Workshop Instructors

A contractor will provide the necessary staff to present the FMO workshop/training materials during the training and to provide technical assistance to recipients when not making a presentation during the seminar.

CLIN 8: FMO Program Reports

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

Program Assistance: The contractor will aid 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, recipients name, contractor, and date completed or as directed.

CLIN 9: Risk Assessment

The Contractor shall conduct risk assessment of recipients at each regional location. The risk assessments would be conducted as an additional day of workshops. In regions where workshops are not held, a risk assessment will still be conducted of recipients. All risk assessments are to be conducted during the workshop timeframe (May – beginning of August). The assessments will be completed prior to the opening of the Oversight Assessment Tool (OAT).

Improper payment review should trigger FMO. If a recipient has several erroneous credits or errors in ECHO drawdown or if a recipient has an extremely large drawdown (dollar amount needs to be set) then the FMO contractor will be assigned a task order to review the drawdown by reviewing supporting documentation.

CLIN 10: Regional Workshops/Trainings

Contractor shall be responsible for developing, planning, organizing, and executing the regional workshops identified by the Task Order COR.

Workshop/Training Facilitation/Instruction

The Contractor shall facilitate Recipient oversight workshops which shall include presenting workshop/training material and facilitating discussions. The workshops/trainings will require two full days at each workshop/training location. The Contractor shall record all questions from Recipients that arose during general discussions and provide those questions, and any answers provided during the workshop/training to the FTA COR and Regional and/or Program Office within five (5) business days of the end of the workshop/training. Once questions and answers have been reviewed and approved by FTA and Contractor has received approval from Task Order COR, the Contractor shall distribute the questions and answers to workshop/training attendees as well as other contractors conducting oversight workshops/trainings.

The FMO contractors may conduct virtual workshop/trainings for FTA staff and/or Recipients related to FTA’s programmatic oversight, which may or may not include development of informational materials, MS PowerPoint presentations, other audio-visual aids, workbooks, manuals, pamphlets or oral presentations.

Deliverables:

· Draft workshop Q&A

· Format: MS Office Word

· Deliver to: FTA COR, FTA Regional Office designee(s), and FTA Office of Civil Rights designee via email (if civil rights related).

· Due: Within 5 business days after the workshop

· Final workshop Q&A

· Format: MS Office Word

· Deliver to: FTA COR, FTA Regional Office designee(s), FTA Office of Civil Rights designee via email (if civil rights related), Workshop/Training participants, and other contractor team conducting workshops/trainings

· Due: Within 1 business days of receipt of final answers from FTA

Workshop/Training Plan

The Contractor shall submit to the FTA COR a Workshop/Training Work Plan detailing the Contractor’s work tasks to be undertaken to deliver all workshops/transportation assigned in this task order, deliverables to be provided to FTA, and schedule for completion of all tasks. This workplan shall also contain a master schedule for all workshops identified in this task order.

Deliverables:

· Preliminary Workshop Plan

· Format: MS Office Excel

· Deliver to: FTA COR and FTA Regional Office designee(s) via email. Due: Within 5 business days of task order award

*NOTE: For all FMO events, logistical support such as conference planning services will be performed by a logistical support vendor awarded under the logistical support Blanket Purchase Agreement (BPA) program.

CLIN 11: Innovation Training/Recipient Training Modules

Innovation Training

· Aid FTA and other contractors with updating and/or producing program content including, but not limited to:

· The annual FMO Review Guide

· Recipient Information Request package

· Workshop plans, content, slides, talking points, and agendas

· Training modules and video storyboards

· Case studies

Recipient Training Modules

Contractor shall, under direction from COR and in consultation and coordination with the appropriate FTA offices, develop Recipient training materials designed to improve Recipient compliance and build capacity for Recipients. These trainings will use content developed by Oversight Review Contractors, Subject Matter Experts, and/or FTA staff and will focus on, among other things, FTA's oversight processes, guidance changes, and specific compliance issues of nation-wide concern. All materials posted online for public use will require close technical coordination with FTA's Office of Information Technology. All materials posted online shall be on the FTA approved Government website. All videos shall include closed captioning. These trainings may take any number of formats depending on the topic, intended audience, and method of distribution, but may include:

· Webinars and recorded presentations

· Case study videos

· Online training modules, self-assessments, and quizzes

· Online toolbox of compliant practices/examples Training Module Work Plan and Budget Assignments shall be tasked to Contractors based on specific needs of FTA and specific capabilities of the Contractor. In advance of each assignment, the Contractor shall submit to the COR:

· Training Module Work Plan- The Contractor shall submit a training module work plan for each assignment detailing the Contractor's understanding of the assignment, work tasks to be undertaken, deliverables to be provided to FTA, and schedule for assignment completion.

· Training Module Budget – The Contractor shall submit a budget detailing the labor and direct…