PWS_-_DBO_FIAR_for_SS.pdf

DRAFT

PERFORMANCE WORK STATEMENT (PWS)

FOR

FINANCIAL IMPROVEMENT AND AUDIT READINESS, MANAGERS’ INTERNAL

CONTROL PROGRAM (MICP), AND STRATEGIC PLAN SUPPORT

October 9, 2014

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Table of Contents

Part 1 General Information

Part 2 Definitions and Acronmyns

Part 3 Government Furnished Property, Equipment, and Services

Part 4 Contractor Furnished Items and Services

Part 5 Specific Tasks

Part 6 Quality Assurnace Surveillance Plan (QASP)

Part 7 Performance Requirements Summary (PRS)

Exhibit 1 Performance Objectives

Exhibit 2 Deliverables

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FINANCIAL IMPROVEMENT AND AUDIT READINESS, MANAGERS’ INTERNAL

CONTROL PROGRAM (MICP), AND STRATEGIC PLAN SUPPORT

PART 1

General Information

1.0 General: This is a non-personal services contract to provide Financial Improvement and Audit Readiness (FIAR), Managers’ Internal Control Program (MICP), and Strategic Plan Support to the Defense Security Cooperation Agency (DSCA). The Government shall not exercise any supervision or control over the contractors performing the services herein. Such contract service providers shall be accountable solely to the Contractor who, in turn, shall be responsible to the Government.

1.1. The Defense Security Cooperation Agency (DSCA) provides financial and technical assistance, transfer of defense articles, training and services to allies, and promotes military-to-military contacts. Its mission is to lead, resource, and educate the Defense Security Cooperation (SC) community to shape, refine, and execute innovative security solutions for partners in support of U.S. interests. Achieving DSCA’s mission goals requires effective governance, including internal controls, and targeting focus areas for process and financial improvement that align with DSCA’s strategic goals. In order to strengthen internal controls and financial management practices, DSCA strives to institute sustainable business processes, develop guidance as required, and drive effective change throughout the Security Cooperation community. DSCA is working to improve its existing Managers’ Internal Control Program (MICP) and Financial Improvement and Audit Readiness (FIAR) programs. Building upon the MICP will allow DSCA to assess and control the organization’s mission-facing and mission-enabling risks. Leveraging the FIAR program will allow DSCA to assess and manage its risks related to DoD appropriated funds, and this same framework can be applied to risks associated with additional funding types (e.g., FMS, FMF) which reside outside the scope of the traditional FIAR guidance. By driving a larger mission-based approach to the entire portfolio of business processes that aligns with their strategic goals, DSCA can drive greater transparency with customers, MILDEP stakeholders, and industry:

1.2. The contractor shall provide all personnel, equipment, supplies, facilities, transportation, material, supervision, and other items and non-personal services necessary to perform the services outlined in this performance work statement except for those specified as government furnished property and services. The contractor shall perform to the standards in this contract.

1.3. Objectives:

1.3.1. DSCA intends to enhance the maturity of existing oversight programs, such as the Financial Improvement and Audit Readiness (FIAR) program and the Managers’ Internal Control Program (MICP). This will allow DSCA to improve its ability to meet mandatory FIAR and MICP requirements.

1.3.2. The approach will enable the following:

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1.3.2.1. Integration: Support FIAR and MICP

1.3.2.2. Repeatability: Facilitate ongoing assessments that can be repeated with the same processes, systems, tools, and data sets

1.3.2.3. Progress Metrics: Provide consistent status on activities by applying performance metrics that can be provided to and integrated with the Chief Performance Office and the MICP

1.3.2.4. Documentation: Enable the identification and availability of complete, accurate and timely documentation to support FIAR and MICP procedures and more informed organizational decision making

1.3.3. In order to successfully implement this broader approach that aligns business processes with their strategic goals, DSCA requires support from a contractor with specialized knowledge of:

1.3.3.1. Financial Improvement and Audit Readiness (FIAR) Guidance

1.3.3.2. DSCA Manual 5105.38-M, Security Assistance Management Manual

1.3.3.3. Security Cooperation and Foreign Military Sales

1.3.3.4. Management Consulting and Transformation Program Integration

1.3.3.5. Federal Managers Financial Integrity Act of 1982 (FMFIA)

1.3.3.6. Office of Management and Budget (OMB) Circular A-123

1.3.3.7. DoD Directive 5010.38 and DoD Instruction 5010.40

1.3.3.8. Generally Accepted Accounting Principles (GAAP)

1.3.3.9. Federal Accounting Standards Advisory Board (FASAB)

1.3.3.10. Government Accountability Office (GAO) Financial Audit Manual (FAM)

1.3.3.11. DoD Financial Management Regulations (FMRs)

1.3.4. In addition to the specialized expertise in DoD and Federal financial management areas, the team deployed shall have a comprehensive understanding of the business processes that drive DSCA’s mission and strategic goals. This knowledge is critical to facilitate the investigation and root cause analysis necessary to document current-/future-state processes. Such knowledge is equally important when developing and executing targeted improvement/corrective actions related to FIAR and MICP.

1.4 Hours of Operation

1.4.1 The Contractor shall conduct business, between the hours of 0800 – 1700, Monday through Friday except Federal Holidays or periods where contractors may have to travel with Government staff in support of training or project execution, or when the Government facility is closed due to local or national emergencies, administrative closures, or similar Government directed facility closing. The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the PWS when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce are essential.

1.4.2 Current federal holidays are:

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1) New Year’s Day

2) Martin Luther King Day

3) President’s Day

4) Memorial Day

5) Independence Day

6) Labor Day

7) Columbus Day

8) Veteran’s Day

9) Thanksgiving Day

10) Christmas Day

If government facilities are closed due to inclement weather or any other authorized closure, the Contractor is not authorized to bill the government for those hours unless the Contractor can perform productive duties from an alternate worksite.

1.5 Place of Performance

The Contractor shall perform all tasks on location at the DSCA, 201 12th Street, Suite 203, Arlington, VA 22202, subject to space constraints. Any work performed off-site will be performed upon approval of the Contract Officer’s Representative (COR), as an alternate work location. Performance under this contract may require contractor personnel to travel.

1.6 Travel

1.6.1 The government anticipates that CONUS and OCONUS travel will be required in support of the contract. The Contractor shall be authorized travel expenses consistent with the substantive provisions of the Joint Travel Regulation (JTR) and the limitation of funds specified in this contract. All travel requires prior Government approval/authorization and notification to the COR. An amount will be designated in a separate Contract Line Item Number (CLIN) to cover costs for Travel. The Contractor shall not exceed that amount without prior notification and written approval of the Contracting Officer.

1.6.2 The Government anticipates completion of some tasks may require site visits to the five (5) Regional Centers (George C. Marshall European Center for Security Studies in Garmisch-Partenkirchen, Germany, Asia-Pacific Center for Security Studies in Honolulu, Hawaii, and the Center for Hemispheric Defense Studies, Africa Center for Strategic Studies, Near East-South Asia Center for Strategic Studies in Washington, DC), the Defense Institute of International Legal Studies (DIILS) in Rhode Island, the Defense Institute of Security Assistance Management (DISAM) in Dayton, Ohio, and the Defense Security Assistance Design Center (DSADC) in Harrisburg, Pennsylvania, in order to include their processes and controls in the scope of the FIAR assessments.

1.7 Period of Performance

The period of performance for this effort shall be for one (1) Base Year of 12 months and two 12-month option years. The period of performance reads as follows:

Base Year – (POP to be determined in RFP)

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Option Year I Option Year II

1.8 The Contractor must have the following qualifications:

1.8.1 Specialized expertise in DoD and Federal financial management areas, the contractor must have a comprehensive understanding of the business processes that drive DSCA’s mission and strategic goals. This knowledge is critical to facilitate the investigation and root cause analysis necessary to document current-/future-state processes, and demonstrate greater accountability to the stakeholders in the FMS lifecycle. Such knowledge is critically important to develop and execute targeted improvement/corrective actions and implement programs to sustain sound management practices related to ongoing FIAR and MICP efforts.

1.9 Labor Category Standards - The Government anticipates the following mix of labor categories will be required to perform this effort:

Labor Category Responsibilities/ Skills

Program Manager

(KEY)

Strong experience leading all aspects of a management consulting project.

Fifteen (15) years total experience, with demonstrated experience in DoD Security Cooperation and Foreign Military Sales environment comparable efforts.

Demonstrated knowledge of, and experience with SC/FMS IT systems.

Demonstrated knowledge of and experience with SC/FMS LRPs, principles and key stakeholders.

Experience participating and facilitating information gathering sessions and process walkthroughs.

Experience maintaining the day-to-day government interactions, fostering successful program management through performance reviews, assessment and analysis, design and development of solutions, issues resolution, and implementation.

Responsible for the effective management of funds and personnel, and is accountable for the quality and timely delivery of contractual items.

Project Management Professional (PMP) certified.

MICP Lead

(KEY)

Strong experience leading all aspects of a management consulting project.

Eight (8) years total experience, with minimum five (5) years of experience in DoD environment.

Demonstrated experience conducting organization-wide risk assessments, executing control testing, and documenting processes.

Demonstrated experience preparing, creating and submitting annual SOAs.

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Provides technical expertise to MICP team.

Responsible for the effective management of funds and personnel, and is accountable for the quality and timely delivery of contractual items.

Preferably Project Management Professional (PMP) certified.

FIAR Lead

(KEY)

Ten (10) years total experience, with minimum five (5) years of experience in DoD environment; FIAR experience is preferable.

Preferable certifications: Project Management Professional (PMP), Certified Defense Financial Manager (CDFM), Certified Government Financial Manager (CGFM), or Certified Public Accountant (CPA).

Demonstrated experience supporting DoD components with FIAR assertion package development.

Experience documenting processes, conducting risk and control assessments, executing control and substantive testing, developing, executing, and validating corrective actions.

Directs the performance of and provides technical expertise to FIAR team

Responsible for the effective management of funds and personnel, and is accountable for the quality and timely delivery of contractual items

Financial Analyst(s)

Minimum of four (4) years of experience with financial improvement and/or financial audit readiness projects for the Department of Defense.

Experience providing audit readiness expertise and associated guidance to DoD agencies or services, and leading DoD organizations through external program reviews.

Experience with DSCA financial management and reporting processes, people, systems, and data preferred.

Strong financial analysis skills; able to analyze budget information, financial statements, and large data sets to identify financial improvement requirements.

Process Analyst(s)/Subject Matter Expert(s)

Minimum of four (4) years of experience supporting Department of Defense organizations with continuous process improvement efforts.

Experience with DSCA or other Security Cooperation programs providing process improvement support preferred.

Strong analysis skills; able to analyze information and large data sets to identify improvement opportunities.

Systems Specialist/ Data Analyst(s)

Experienced with advanced data analytics tools.

Minimum of three (3) years of experience developing and executing reconciliation procedures between financial and feeder systems.

Demonstrated experience with Defense Finance & Accounting Service

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(DFAS).

Experience providing audit readiness expertise and associated guidance to DoD agencies or services.

Experience documenting data analysis test results and process flows.

Familiar with financial/accounting systems flow of transactions.

Strong understanding of the financial/accounting systems data model.

DSCA Senior Advisor

Strong understanding of DSCA financial management and reporting processes, people, systems and data, including the Security Cooperation Enterprise System (SCES) pending implementation.

Minimum of ten (10) years of relevant DoD financial management experience.

Experience providing audit readiness expertise and associated guidance to DoD agencies or services.

Experience in managing project scope and approach, integration of business and technical functions, and driving business and customer strategy.

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

1.11 Contractor Employees

1.11.1 Contractor personnel shall present a neat appearance and be easily recognized as contractor employees by wearing a Security Identification Badge at all times while on Government premises. When contractor personnel attend meetings, answer phones, and work in other situations where their status is not obvious to third parties, they must identify themselves as such to avoid creating the impression they are government employees.

1.11.2 Physical Security: The contractor shall be responsible for safeguarding all government equipment, information and property provided for contractor use. At the close of each work period, government facilities, equipment, and materials shall be secured as required by the local Government facility.

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1.11.3 Key Control. The Contractor shall establish and implement methods of making sure all keys issued to the Contractor by the Government are not lost or misplaced and are not used by unauthorized persons. No keys issued to the Contractor by the Government shall be duplicated. The Contractor shall develop procedures covering key control that shall be included in the Quality Control Plan. Such procedures shall include turn-in of any issued keys by personnel who no longer require access to locked areas. The Contractor shall immediately report any occurrences of lost or duplicate keys/key cards to the Contracting Officer. NOTE:

References to keys include key cards.

1.11.3.1 In the event keys, other than master keys, are lost or duplicated, the Contractor shall, upon direction of the Contracting Officer, re-key or replace the affected lock or locks; however, the Government, at its option, may replace the affected lock or locks or perform re-keying. When the replacement of locks or re-keying is performed by the Government, the total cost of re-keying or the replacement of the lock or locks shall be deducted from the monthly payment due the Contractor. In the event a master key is lost or duplicated, all locks and keys for that system shall be replaced by the Government and the total cost deducted from the monthly payment due the Contractor.

1.11.3.2 The Contractor shall prohibit the use of Government issued keys by any persons other than the Contractor’s employees. The Contractor shall prohibit the opening of locked areas by Contractor employees to permit entrance of persons other than Contractor employees engaged in the performance of assigned work in those areas, or personnel authorized entrance by the Contracting Officer.

1.12 Special Instruction

1.12.1 General. All official documents and deliverables described in this PWS, and any subsequent amendments or modifications, will be submitted in writing, on the prime contractor’s letterhead.

1.12.2 Progress Report. Progress reports are to be submitted to the DSCA COR no later than the 15th workday of every month. Progress reports must be submitted on the prime contractor’s letterhead. Failure to provide reports correctly will necessitate a resubmission by the contractor. The monthly Progress Report will include, but is not limited to: Contract number;

brief task description; a list of the work accomplished during the reporting period and/or significant events; a list of the work to be accomplished in the following reporting period;

deliverable progress; problem or areas of risk to delivery; description of any travel.

1.12.3 Delivery Instructions. All deliverables identified in Exhibit 3 will be delivered to the DSCA COR no later than the date specified in this PWS.

1.12.4 Inspection and Acceptance. In the absence of other agreements negotiated with respect to time provided for government review, deliverables will be inspected and the contractor notified of the DSCA COR’s findings within 15 workdays of normally scheduled review. The DSCA COR will have the right to reject or require correction to any deliverables that do not meet the requirements of the PWS or are found to be contrary to the information contained in the contractor’s accepted proposal. In the event of a rejected deliverable, the DSCA COR will notify

10 | P a g e the contractor in writing as for the specific reasons why the deliverable was rejected. The contractor shall have 10 business days to correct the rejected deliverable and return it to the DSCA COR. Representatives of the government and the contractor shall meet telephonically at a time designated by the government on a monthly basis to review performance; to inspect work for compliance with the PWS, the associated contractor proposal, and to accept or reject deliverables completed since the previous review. Monthly reviews will normally be held at the place of task performance. In the event that the contractor is excused from attending any final review, formal acceptance or rejection of deliverables will be accomplished by email.

1.12.5 Payment Information. Invoicing Instructions: Requests for payments must be submitted electronically via the Internet through the Wide Area Workflow – Receipt and Acceptance (WAWF-RA) system at https://wawf.eb.mil. All contractors must create two documents (Invoice and Receiving Report; i.e. Combo Documents) with a single-data entry session.

1.13 Quality Control: The contractor shall develop and maintain an effective quality control program to ensure services are performed in accordance with this PWS. The contractor shall develop and implement procedures to identify, prevent, and ensure non-recurrence of defective services. The contractor’s quality control program (QCP) is the means by which he assures himself that his work complies with the requirement of the contract. The QCP is to be delivered within 30 days after contract award to the COR, and copies of the comprehensive QCP shall be submitted to the Contracting Officer and COR within 5 working days when changes are made thereafter. After acceptance of the QCP, the contractor shall receive the contracting officer’s acceptance in writing of any proposed change to his QC system.

1.14 Quality Assurance: The government shall evaluate the contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable defect rate(s).

1.15 Organizational Conflict of Interest: Contractor and subcontractor personnel performing work under this contract may receive, have access to or participate in the development of proprietary or source selection information (e.g., cost or pricing information, budget information or analyses, specifications or work statements, etc.) or perform evaluation services which may create a current or subsequent Organizational Conflict of Interests (OCI) as defined in FAR Subpart 9.5. The Contractor shall notify the Contracting Officer immediately whenever it becomes aware that such access or participation may result in any actual or potential OCI and shall promptly submit a plan to the Contracting Officer to avoid or mitigate any such OCI. The Contractor’s mitigation plan will be determined to be acceptable solely at the discretion of the Contracting Officer and in the event the Contracting Officer unilaterally determines that any such OCI cannot be satisfactorily avoided or mitigated, the Contracting Officer may affect other remedies as he or she deems necessary, including prohibiting the Contractor from participation in subsequent contracted requirements which may be affected by the OCI.

1.16 Security Requirements

https://wawf.eb.mil/

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1.16.1. The overall classification of work associated with this PWS is at the SECRET level for purposes of access to unclassified DoD computer networks. Investigative requirements for SECRET eligibility and access are outlined in Section 1.16.2 of this PWS. The Contractor MUST have a current facility clearance of SECRET issued by the Defense Industrial Security Clearance Office (DISCO) to work this effort.

1.16.2. Contractor personnel working in support of this contract shall have a favorably completed Access National Agency Check and Inquiries (ANACI) or National Agency Check with Local Agency and Credit Check (NACLC), resulting in final SECRET eligibility adjudicated by the Defense Industrial Security Clearance Office (DISCO) or another recognized clearance adjudication facility provided they have been claimed in the Joint Personnel Adjudication System (JPAS) as an industry contractor for the awarded company. DSCA requires a Visitor Authorization Request (VAR) to be submitted to the DSCA Security Officer signed by the Contractor Facility Security Officer (FSO) verifying the contractor personnel security credentials. INTERIM SECRET eligibility may be accepted by DSCA provided it has been awarded by the Defense Industrial Security Clearance Office (DISCO) and JPAS reflects the information for the contract awarded company. INTERIM SECRET or SECRET accesses must be posted in JPAS by the FSO before the start of the contract for those individuals in support of this contract.

1.16.3. Upon award of this contract, names and social security numbers (SSN) of contractor personnel working on this contract shall be submitted to the DSCA Security Officer.

DSCA requires a Visitor Authorization Request (VAR) to be submitted to the DSCA Security Officer signed by the FSO verifying the contractor personnel security credentials. If contractor personnel do not have the appropriate investigative or security clearance requirement the contractor personnel will be denied the ability to work in support of this contract.

1.16.4. Visit(s) to DSCA by contractor personnel not physically or permanently assigned to this contract shall require an escort by the DSCA POC they are visiting.

1.16.5. Upon completion of this contract, the contractor personnel shall surrender all government supplies, materials and equipment to the COR or designated government representative. Upon the completion of the contract, all contractor personnel officially in-processed through the DSCA Security Officer, must officially out-process with the DSCA Security Officer for a de-briefing and return all access badges to the DSCA Security Officer.

1.16.6. If the Government notifies the contractor that the employment or the continued employment of any contractor personnel is prejudicial to the interests or endangers the security of the United States of America, that person will be removed and barred from the worksite. This includes security deviations/incidents and credible derogatory information on contract members during the course of the contract period. The awarded Contractor shall make any changes necessary in the appointment(s). Security incidents involving contractor personnel will be posted by the DSCA Security Officer and the details forwarded to DISCO and the contractor FSO for action.

1.17 Environmental Protection: The Contractor shall be knowledgeable and comply with all applicable federal, state, and local laws, regulations, and requirements regarding environmental protection. In the event environmental laws or regulations change during the term of this contract, the Contractor is required to comply as such laws come into effect.

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PART 2

DEFINITIONS & ACRONYMS

2. DEFINITIONS AND ACRONYMS:

2.1. DEFINITIONS:

2.1.1. CONTRACTOR. A supplier or vendor awarded a contract to provide specific supplies or service to the government. The term used in this contract refers to the prime.

2.1.2. CONTRACTING OFFICER (CO). The CO is an individual with warranted authority to enter into, administer, terminate, and make contractual determinations and findings on behalf of the U.S. Government. Note: The only individual who can legally bind the government.

2.1.3. CONTRACTING OFFICER'S REPRESENTATIVE (COR). The COR is an employee of the U.S. Government appointed by the contracting officer to administer the contract. Such appointment shall be in writing and shall state the scope of authority and limitations. This individual has authority to provide technical direction to the Contractor as long as that direction is within the scope of the contract, does not constitute a change, and has no funding implications.

This individual does NOT have authority to change the terms and conditions of the contract.

2.1.4. DEFECTIVE SERVICE. A service output that does not meet the standard of performance associated with the Performance Work Statement.

2.1.5. DELIVERABLE. A deliverable is anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports.

2.1.6. KEY PERSONNEL. Contractor personnel that are evaluated in a source selection process and that may be required to be used in the performance of a contract by the Key Personnel listed in the PWS. When key personnel are used as an evaluation factor in best value procurement, an offer can be rejected if it does not have a firm commitment from the persons that are listed in the proposal.

2.1.7. PHYSICAL SECURITY. Physical security is any action that prevents the loss or damage of Government property.

2.1.8. QUALITY ASSURANCE. The government procedures to verify that services being performed by the Contractor are performed according to acceptable standards.

2.1.9. QUALITY ASSURANCE SURVEILLANCE PLAN (QASP). The QASP is an organized, written document specifying the surveillance methodology used for surveillance of contractor performance.

2.1.10. QUALITY CONTROL. All necessary measures taken by the Contractor to assure that the quality of an end product or service shall meet contract requirements.

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2.1.11. SUBCONTRACTOR. A subcontractor is one that enters into a contract with a prime contractor. The Government does not have privity of contract with the subcontractor.

2.1.12. WORK DAY. The number of hours per day the Contractor provides services in accordance with the contract.

2.1.12. WORK WEEK. Monday through Friday, unless specified otherwise.

2.2. ACRONYMS:

ANACI Access National Agency Check and Inquiries CFR Code of Federal Regulations CONUS Continental United States (excludes Alaska and Hawaii) COR Contracting Officer Representative COTS Commercial-Off-the-Shelf DD250 Department of Defense Form 250 (Receiving Report) DD254 Department of Defense Contract Security Requirement List DFARS Defense Federal Acquisition Regulation Supplement DFAS-IN Defense Finance and Accounting Service – Indianapolis DISCO Defense Industrial Security Clearance Office DOD Department of Defense DSCA Defense Security Cooperation Agency FAR Federal Acquisition Regulation FIAR Financial Integrity and Audit Readiness FSO Facility Security Officer FTE Full-time Equivalent IST Integrated Strategic Team JPAS Joint Personnel Adjudication System MICP Manager’s Internal Control Program NACLC National Agency Check with Local Agency and Credit Check OCI Organizational Conflict of Interest OCI Organizational Conflict of Interests OMB Office of Management and Budget POC Point of Contact PRS Performance Requirements Summary PWS Performance Work Statement QA Quality Assurance QAP Quality Assurance Program QASP Quality Assurance Surveillance Plan QC Quality Control QCP Quality Control Program TE Technical Exhibit VAR Visit Authorization Request

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PART 3

GOVERNMENT FURNISHED PROPERTY, EQUIPMENT, AND SERVICES

3. GOVERNMENT FURNISHED ITEMS AND SERVICES:

3.1 Services: The Government will provide personnel necessary to assist the contractor set-up computers and network access.

3.2 Facilities: The Government will provide the necessary workspace for the contractor staff to provide the support outlined in the PWS to include desk space, telephones, computers, and other items necessary to maintain an office environment.

3.3 Equipment (If applicable): The Government will provide the contractor access to scanners, fax machines, and printers for us in performance of the tasks outlined in this PWS.

3.4 Locations: The Government anticipates the primary work places for contract personnel being located at DSCA HQ, Arlington, VA, based on space availability.

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PART 4

CONTRACTOR FURNISHED ITEMS AND SERVICES

4. CONTRACTOR FURNISHED ITEMS AND RESPONSIBILITIES:

4.1 General : The Contractor shall furnish all supplies, equipment, facilities and services required to perform work under this contract that are not listed under Section 3 of this PWS.

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PART 5

SPECIFIC TASKS

5.0 Tasks:

5.1 Task 1 – FIAR – The DSCA FIAR office continues to assess the effectiveness of key control activities related to the Civilian Pay, Reimbursable Work Orders (RWO) – Grantor, Building Partnership Capacity, and Contract Vendor Pay assessable units in order to validate DSCA’s overall audit readiness by 30 September FY2015. The contractor shall provide support to maintain compliance with FIAR guidance and validate the effective implementation of identified corrective action plans (CAPs). Representative tasks may include, but are not limited to:

5.1.1 Assess financial risks and develop mitigation strategies to ensure DSCA’s ability to provide reliable, timely, and useful financial and managerial data to support decision making

5.1.2 Develop and implement a full sustainment program to regularly validate key processes/controls continue to be effective

5.1.3 Identify opportunities to streamline financial processes and develop/execute implementation strategies

5.1.4 Revise process narratives and flowcharts

5.1.5 Review and support DSCA general ledger reconciliation performed by the Defense Finance and Accounting Service (DFAS)

5.1.6 Address OUSD(C) identified audit readiness “Dealbreakers” (e.g., general ledger does not balance to transactional detail, supporting documentation not provided in a timely manner, data retrieval and storage procedures not established to allow for evaluation and future audit)

5.2 The FIAR office continues to assess DSCA’s audit infrastructure and processes.

The contractor shall provide support to assess ongoing FIAR activities and suggest areas of enhancement. In anticipation of future audits, DSCA requires audit support and a methodology to allow for consistent communication of internal control priorities. Representative FIAR audit tasks may include, but are not limited to:

5.2.1 Management of a centralized repository for FIAR audit artifacts

5.2.2 Manage sample documentation requested by the FIAR auditors

5.2.3 Evaluate FIAR audit preparation efforts and recommend enhancements

5.3.1 The primary requirement is to assist DSCA in the expansion of the MICP program to components outside of the DSCA Headquarters. The components include those identified in section 1.6.2 of the PWS.

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5.3.2 Propose Assessable Units (AUs) to DSCA common for every component and AUs unique to a component organization(s). Each AU will be linked to an organization within a DSCA assigned area of responsibility.

5.3.3 Document process maturity levels and develop risk registers for each DSCA-approved AU, to include those for non-HQ components. The risk register will identify the state of process development for each AU. Resulting risk registers will be incorporated into DSCA HQ’s existing MICP Framework and Implementation Plan for execution by the CPO MICP team.

5.3.4 Develop proposed control test plans for each DSCA approved component AU, to include those for non-HQ components; assist non-HQ components to conduct initial control testing for selected AUs, which are approved in advance by the CPO and Component MICP Managers. Assist in transitioning control testing responsibilities to the AU Managers (AUMs).

5.3.5 Develop training materials for MICP/FIAR related topics for use in desktop, brownbag, and other MICP/FIAR training. The training audience is comprised of individual Action Officers, Supervisors, Principal Directors or above, or a group at the division, directorate, agency, or component level.

5.3.6 Develop for Government consideration, a comprehensive MICP communication plan for DSCA HQ and component engagement. For the DSCA approved communication plan, develop targeted materials.

5.3.7 Prepare a draft version of DSCA’s annual Statement of Assurance including each OSD Comptroller-required financial and MICP sections.

5.4. Task 3 – FIAR Framework for FMS – The FMS Trust Fund is not currently within the scope of formal DoD FIAR efforts, as such efforts to-date for financial transparency and auditability have focused on audit readiness of DoD appropriated funds. Current FIAR efforts and similarities between processes and systems used to manage the various appropriations and identified deficiencies also exist within the FMS Trust Fund and other security assistance appropriations. DSCA intends to proactively develop a financial transparent and auditable framework to confirm the safeguarding of security assistance resources rather than wait for an oversight agency to recommend a formal implementation of a FIAR framework. The Government anticipates the following representative tasks that may include, but are not limited to:

5.4.1 Assessable unit identification, prioritization, and alignment with existing FIAR and MICP efforts

5.4.2 Develop and execute a FMS FIAR Implementation Plan

5.4.3 Develop control test approaches for key process areas, execution of Government approved control testing, and reporting of control testing results.

5.4.4 Development of process narratives and flowcharts.

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5.4.5 Provide quarterly review and support of general ledger reconciliation performed by DFAS, to include root cause analysis, training, and sustainment.

5.5. Task 4 – Data Quality for Financial Processes – DSCA relies on support from DFAS to effectively manage its financial processes. As DFAS looks to transition legacy systems, such as the Washington Headquarters Service Allotment Accounting System (WAAS), the General Accounting and Finance System (GAFS), and the Comprehensive Cost and Requirements System (CCARS) into the Defense Agency Initiative (DAI), DSCA faces the prospect that its data is not of sufficient quality to transition, which will negatively impact audit readiness and data integrity within DAI. DSCA must exert appropriate emphasis on the quality of its financial data. To enable the successful transition from to DAI, DSCA requires contractor assistance to proactively manage anticipated financial data challenges, including the existence of varying financial governance and data quality standards, capabilities, and varying definitions of master data records. The Government anticipates tasks may include, but are not limited to:

5.5.1 Provide an end-to-end data quality solution to DSCA’s potential data quality issues during the DAI transition.

5.5.2 Assess the health of the data and root causes.

5.5.3 Develop and implement a remediation plan, as necessary, to prepare the data for load into DAI.

5.5.4 Perform Quantitative Drill Downs (QDD) and reconciliation for all data derived from DSCA Headquarter systems and other data systems, as required.

5.6 Task 5 - Transformation Program Integration - As DSCA drives to implement a strategic plan with an outlook to 2020, DSCA requires support to manage the annual implementation plans centrally, and support within the individual initiative owner to achieve milestones and tasks. Support includes strategy alignment to operating model; capability assessments to transformation; and project management (scope management, schedule management, cost management, quality assurance, communication management, organizational and cultural change management, performance management and reporting, and risk management); coupled with process improvement, data analytics; and subject matter expertise (SME) to deliver the required tasks. DSCA requires integrated project management support that enables DSCA to connect the outcomes of each objective, and create integration across initiatives; improved business and fiscal control; more efficient use of leadership’s availability to review and address hypotheses, viewpoints and risks and less disruption to current operations.

The Government anticipates tasks may include, but are not limited to:

5.6.1 Program and strategic objective alignment

5.6.2 Performance measurement

5.6.3 Schedule management

5.6.4 Risk management

5.6.5 Operating Model/Capability Assessment

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5.6.6 Change and Communications management

5.6.7 Data analytics and visualization

5.6.8 Initiative Implementation Support

5.6.9 FIAR and MICP integration

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PART 6

QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

6.0 The role of the government in quality assurance is to ensure contract standards are achieved.

The purpose of the QASP is to identify the methods and procedures the government will use to evaluate contractor actions while performing the requirements in the Performance Work Statement (PWS). The QASP provides a systematic method to evaluate the services the contractor is required to furnish. The QASP is based on the premise the government desires to maintain a quality standard for Consulting and Advisory Services and that a service contract is the best means of achieving that objective. The QASP has been developed by the requiring activity. It is designed to provide direction to personnel performing contract surveillance activities. Personnel surveying the contract terms and conditions and Performance Work Statement requirements will periodically review the QASP throughout the life of the contract.

6.1 Contracting Officer Representative (COR). The COR is responsible for quality assurance guidance and to ensure that contract quality requirements, provision, standards, and thresholds are defined, practical, enforceable, necessary, and verifiable.

6.1.1. The COR evaluates and documents contractor performance in accordance with the QASP and PWS.

6.2.2. The COR notifies the Contracting Officer of any significant performance deficiencies.

6.2.3 The COR maintains surveillance documentation.

6.2.4. The COR recommends improvements to the QASP and PWS throughout the life of the contract.

6.2 Contracting Officer (KO). The Contracting Officer is responsible to safeguard the interests of the United States in contractual relationships. Only the contracting officer is authorized to bind the government and then, only to the extent of the authority delegated to them through the issuance of a warrant.

6.2.1 The KO delegates authority for inspection and/or acceptance in accordance with the terms of the contract.

6.2.2 The KO informs the contractor of the names, duties, and limitations of authority for all quality assurance personnel assigned to the contract.

6.3 The contractor shall provide all personnel, equipment, tools, materials, supervision, and other items necessary to provide education support services for the DSCA program, as defined in the Performance Work Statement (PWS).

6.4 The contractor, not the government, is responsible for management and quality control actions to meet the terms of the contract. The quality control program is the driver for quality.

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The contractor is required to develop a comprehensive program of inspections and monitoring actions. The first major step to ensuring a “self-correcting” contract is to ensure that the quality control program, approved at the beginning of the contract, provides the measures needed to lead the contractor to success. Once the quality control program is accepted, careful application of the process and standards presented in the remainder of this document will ensure a robust quality assurance program.

6.5 The Contracting Officer Representative (COR) will develop a surveillance schedule. Copies of the schedule shall be sent to the contract administrator five calendar days prior to the start of the month. Changes to the surveillance schedule will be posted and copies sent to the contract administrator. Include documentation regarding reason for changes.

6.6 This QASP shall incorporate a combination of 100% Inspection and Validated Customer Complaint, where applicable, as the approach to ensure the contractor complies with the PWS requirements. Re-performance at no cost to the Government is the preferred method of correcting any unacceptable performance.

6.6.1 Validated Customer Complaint. All Performance Requirements (PRs) will be surveilled using this surveillance method. Anyone who observes unacceptable services, either incomplete or not performed, should immediately contact the COR. The COR will conduct an investigation to determine the validity of the complaint. If the COR determines the complaint to be valid, the COR will document the findings and notify the customer and the contractor. The COR will retain the annotated copy of the written complaint for the government’s files. If the complaint is valid, the contractor will be given four hours to correct the defect.

6.6.2 The COR should inform the customer the approximate time the defect will be corrected and advise the customer to contact the COR if the defect is not corrected. The COR will consider the customer complaint resolved unless notified otherwise by the customer.

6.6.3 The contractor shall return the written customer complaint document to the COR, completed with the actions taken to correct the defect. The government will retain this document to ensure the contractor has taken appropriate action(s) to prevent the recurrence of defects. The COR will retain and file the complaint form. At the end of each month, all validated complaints will be counted to determine if performance is satisfactory or unsatisfactory based on the criteria in the Performance Requirements Summary.

6.6.4 All performance requirements will be surveilled using the periodic surveillance method of surveillance.

6.6.5 All deliverables will be reviewed and surveilled 100%.

6.6.6 The surveillance team consists of the Contracting Officer Representative, the Contracting Officer, and the Task Managers.

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6.6.7 If the number of complaints/defects exceeds the performance threshold for any objective, the COR will determine the possible cause of this unacceptable performance.

Government-caused complaints/defects shall not be counted against the contractor. The same applies to any other requirement of the contract when Government-caused complaints/defects are the cause of unacceptable contractor performance. If the contractor’s performance is judged unacceptable for any requirement by the COR, the COR will inform the contractor’s on-site representative, and request his or her signature and date of surveillance on documentation acknowledging notification. If the on-site contractor representative refuses to sign, COR personnel shall annotate on the documentation the date and time of notification and name of representative and his/her refusal to acknowledge. If the contractor disputes the results of surveillance, COR must refer the contractor to the contracting officer for resolution.

6.6.8 Revisions to this QASP are the joint responsibility of the requiring activity and the contracting office. Surveillance checklists may be revised jointly by COR personnel and contractor personnel. The contracting officer must approve the revisions in writing before being used by COR personnel.

6.7 The Contracting Officer Representative is responsible for maintaining a Surveillance Folder at a designated location. The following information should be contained in the Surveillance Folder:

6.7.1 QASP

6.7.2 Contractor’s Quality Control Plan

6.7.3 Activity Log: A chronological log of the actions taken to accomplish quality assurance.

6.7.4 Contract: All applicable portions of the contract, PWS, and modifications.

6.7.5 Appointment Letters and Training Certificates of the COR

6.7.6 Certification of Services Documentation

6.7.7 Surveillance Checklists

6.7.8 Quality Assurance Surveillance Schedules

6.7.9 Corrective Action Request Log

6.7.10 Corrective Action Requests

6.7.11 Monthly Surveillance Status Reports

6.7.12 Minutes/Memo’s/Miscellaneous Correspondence

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PART 7

PERFORMANCE REQUIREMENTS SUMMARY (PRS)

7.0 This summary identifies critical success factors for the contract. It identifies both the performance objectives for those factors and the performance threshold required for each performance objective. The Government reserves the right to surveil all services called for in the contract to determine whether or not the performance objectives and goals were met.

7.1 This PRS:

7.1.1 Lists the performance objectives for the required service that the Government will conduct surveillance upon.

7.1.2 The absence of any contract requirement from the PRS shall not detract from its enforceability nor limit the rights or remedies of the Government under any other provision of the contract including the clauses entitled “Inspection of Services” and “Default”.

7.1.3 Is used as the baseline for the QASP. The QASP identifies the surveillance methods the Government will use to evaluate the contractor’s performance.

7.1.4 Surveillance methods may include: Random Sampling, 100 Percent Inspection, Periodic Surveillance, Validated Customer Complaint, or any combination of the methods.

7.1.5 Methods of surveillance can change after contract award based on, but not limited to:

7.1.5.1 Acceptance of a contractor QC plan

7.1.5.2 A partnering agreement which established the metrics to be used

7.1.5.3 Contractor performance

7.2 Performance of a service will be evaluated to determine whether or not it meets the performance threshold. Re-performance at no cost to the Government is the preferred method of correcting any unacceptable performance. The contractor shall provide the Government written response why the performance threshold was not met, how performance will be returned to acceptable levels, and how recurrence of the cause will be prevented in the future.

7.3 The contractor service requirements are summarized into performance objectives that relate directly to mission essential items. The performance threshold briefly describes the minimum acceptable levels of service required for each requirement. These thresholds are critical to mission success and are as shown in Technical Exhibit #1 of the PWS.

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TECHNICAL EXHIBIT 1

The contractor service requirements are summarized into performance objectives that relate directly to mission essential items. The performance threshold briefly describes the minimum acceptable levels of service required for each requirement. These thresholds are critical to mission success.

Performance Objectives Standard Performance Threshold Method of Surveillance

PRS #1

Monthly Report(s) of scheduled, completed, and outstanding tasks

98% of reports accurately describe current status

90% on-time delivery of assigned tasks and required delivery dates.

95% resolution of all issues, accuracy and completeness of final deliverables.

Monthly review of suspense deadlines through Monthly Status Report Meetings.

PRS # 2

Contract Management

All contractor personnel assigned to the project possess the skills needed to perform the required tasks as specified in the

PWS.

All contractor personnel possess the needed skills prior to in-processing

DSCA.

The contractor’s work products are suitable to support the full range of requirements as specified in the PWS.

The contractor’s personnel…