Audit_Readiness_DRAFT_PWS.pdf

PERFORMANCE WORK STATEMENT (PWS)

Defense Advanced Research Projects Agency (DARPA), Office of the Comptroller (COMP) Audit Readiness Support

General Information

1. GENERAL: This is a non-personnel services contract to provide audit readiness support services.

The Government shall not exercise any supervision or control over the contract service providers performing the services herein. Such contract service providers shall be accountable solely to the Contractor who, in turn is responsible to the Government.

1.1 Description of Services/Introduction: The contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform audit readiness support services as defined in this Performance Work Statement except for those items specified as government furnished property and services. The contractor shall perform to the standards in this contract.

1.2 Background: The Defense Advanced Research Projects Agency (DARPA) was created as the Advanced Research Projects Agency (ARPA) by Public Law 85-325 and DoD Directive 5105.41, in February 1958. DARPA is a separate agency under the Office of the Secretary of Defense, reporting to the Director of Defense Research and Engineering. DARPA's technical program offices manage the large majority of the DARPA's funds. The offices manage both broad, basic technology programs and projects that prepare the way for major programs to demonstrate future defense systems.

In 2017, in accordance with the 2010 National Defense Authorization Act (NDAA), Section 1003, the Financial Improvement and Audit Readiness (FIAR) Directorate merged the Departments financial improvement and audit objectives with the OMB Circular A-123, Appendix A requirements. Specifically, as defined by the FIAR guidance, DARPA is now required to issue a Statement of Assurance (SOA) on Internal Controls over Financial Reporting (ICOFR), and Internal Controls over Financial Systems (ICOFS) as a subset of its Annual Federal Financial Management Improvement Act (FFMIA) Statement of Assurance (SOA) reporting process. Furthermore, DARPA and its service providers must focus on improving controls and processes supporting information that is most often used by management, while continuing to work toward financial, information technology, and supporting documentation improvements that facilitate the achievement of unmodified audit opinions on its financial statements. To support the Department’s audit priorities and strategy, DARPA is required to perform procedures stipulated in Appendix A in accordance with OMB and as prescribed by the FIAR guidance. The DARPA Manager’s Internal Control Program has overall responsibility for preparation of the paragraphs in the SoA that address the ICOFR/ICOFS and to monitor the FIAR guidance and OMB Circular A-123, Appendix A implementation process.

The FIAR guidance identifies critical capabilities, which must be achieved by each component in order to assert audit readiness. Audit readiness is defined as having the capabilities in place to allow an auditor to scope and perform a full financial statement audit that results in actionable feedback. Assertion of audit readiness is based on overall progress against the critical capabilities as defined by OUSD(C).

1.3 Objectives:

a. Successful audits resulting from the implementation of lessons learned in compliance with the NDAA.

b. Improvement of information and processes supporting auditable statements for the financial information that is most often use to manage the Department of Defense.

c. Incorporate FIAR guidance with the following areas:

i. Incorporating guidance on the appropriate use of sub-allotments;

ii. Aligning the FIAR methodology to merge revised requirements of OMB Circular No. 123, Management’s Responsibility for Enterprise Risk Management and Internal Controls;

iii. Incorporating guidance on requirements of Statement of Standards for Attestation Engagements (SSAE) No. 18 relating to service provider controls; and,

iv. Property policy and implementation.

1.4 Scope: The Contractor shall provide support services to include Accounting Operations, Financial Management and Budget Execution Support for DARPA with Financial Analysis, Document Preparation, Reporting, Internal and External Accounting Record Reconciliation Support, review of Reported Amounts for Selected Financial Statement Accounts, Assertion Process and Internal Control over Financial Reporting (ICOFR) and Internal Controls over Financial Systems (ICOFS).

1.5 Period of Performance: The period of performance shall be for one (1) Base Period of 12 months and four (4) 12-month option periods. The Period of Performance reads as follows:

Transition in: 04 September 2018 to 03 November 2018 Base Period: 04 November 2018 to 03 September 2019 Option Period One: 04 September 2019 to 03 September 2020 Option Period Two: 04 September 2020 to 03 September 2021 Option Period Three: 04 September 2021 to 03 September 2022 Option Period Four: 04 September 2022 to 03 September 2023

1.6 General Information:

1.6.1 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 is the means by which he assures himself that his work complies with the requirement of the contract. The QCP shall be delivered via electronic mail within 30 days of contract award.

Amendments/changes to the QCP shall be delivered to the COR and KO within three business days following any change.

1.6.2 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).

1.6.3 Recognized Holidays: The contractor is not required to perform service on holidays

New Year’s Day Labor Day Martin Luther King Jr.’s Birthday Columbus Day President’s Day Veteran’s Day Memorial Day Thanksgiving Day Independence Day Christmas Day

1.6.4 Hours of Operation: The contractor is responsible for conducting business, between the core hours of 9:00 AM to 3:00 PM, arriving no earlier than 6:30 AM and departing no later than 6:30 PM Monday thru Friday except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closings, or similar Government directed facility closings. For other than firm fixed price contracts, the contractor will not be reimbursed when the government facility is closed for the above reasons. The Contractor must at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within this 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.

1.6.5 Place of Performance: The work to be performed under this contract will be performed in three distinct locations:

1. DARPA Headquarters in Arlington, VA;

2. The Defense Finance and Accounting Service (DFAS) Indianapolis, IN Center; and,

3. The DFAS Columbus, OH Center

A government provided office space will be provided in each location. The team located in Indianapolis will work both on an offsite. Contractor personnel may be requested to work at the Governments alternate locations during emergencies and emergency exercises. Individual Contractor personnel may be designated as essential personnel to support contingency operations at alternate Government locations during actual emergencies and emergency exercises.

1.6.6 Type of Contract: TBD

1.6.7 Security Requirements: Unless stated elsewhere all Contractor personnel performing work under this contract must have and maintain a interim SECRET security clearance. The security requirements are in accordance with the attached DD Form 254 which will be provided to the Contractor upon award of the contract. The Contractor shall comply with all security policies and procedures that apply to DoD and WHS/EM. Security procedures shall be made available to Contractor personnel.

1.6.7.1 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.

1.6.7.2 Key Control: The Contractor shall establish and implement methods of making sure all keys/key cards issued to the Contractor by the Government are not lost or misplaced and are not used by unauthorized persons. NOTE: All references to keys include key cards. 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.

1.6.7.2.1. 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.

1.6.7.2.2. The Contractor shall prohibit the use of Government issued keys/key cards 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.

1.6.7.3 Lock Combinations. The Contractor shall establish and implement methods of ensuring that all lock combinations are not revealed to unauthorized persons. The Contractor shall ensure that lock combinations are changed when personnel having access to the combinations no longer have a need to know such combinations. These procedures shall be included in the Contractor’s Quality Control Plan.

1.6.8 Special Qualifications: Contractor personnel will be required to sign a Non-Disclosure Agreement

1.6.9 Post Award Conference/Periodic Progress Meetings: The Contractor agrees to attend any post award conference convened by the contracting activity or contract administration office in accordance with Federal Acquisition Regulation Subpart 42.5. The contracting officer, 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 will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues.

These meetings shall be at no additional cost to the government.

1.6.10 Contracting Officer Representative (COR): The (COR) will be identified by separate letter. The COR monitors all technical aspects of the contract and assists in contract administration The COR is authorized to perform the following functions: assure that the Contractor performs the technical requirements of the contract: perform inspections necessary in connection with contract performance:

maintain written and oral communications with the Contractor concerning technical aspects of the contract:

issue written interpretations of technical requirements, including Government drawings, designs, specifications: monitor Contractor's performance and notifies both the Contracting Officer and Contractor of any deficiencies; coordinate availability of government furnished property, and provide site entry of Contractor personnel. A letter of designation issued to the COR, a copy of which is sent to the Contractor, states the responsibilities and limitations of the COR, especially with regard to changes in cost or price, estimates or changes in delivery dates. The COR is not authorized to change any of the terms and conditions of the resulting order.

1.6.11 Key Personnel: The personnel listed below are considered essential to the work being performed under this contract. Before removing, replacing, or diverting any of the listed or specified personnel or facilities, the Contractor shall (1) notify the Contracting Officer reasonably in advance and (2) submit justification (including proposed substitutions) in sufficient detail to permit evaluation of the impact on this contract. The Contractor shall make no diversion without the Contracting Officer's written consent;

provided that the Contracting Officer may ratify in writing the proposed change, and that ratification shall constitute the Contracting Officer's consent required by this document.

Position Title Experience Educational Clearance Position Location 1 Program Manager 15 Yrs Bachelor’s Degree

– Business Administration;

Accounting preferred

Secret National Capital Region

2 Subject Matter Expert (CPA) 15 Yrs Bachelor’s Degree– Business Administration;

Accounting preferred

Secret National Capital Region or DFAS Indianapolis

3 Subject Matter Expert (Special Projects)

15 Yrs Bachelor’s Degree Secret National Capital Region

4 Lead Senior Auditor 10 Yrs Bachelor’s Degree– Business Administration;

Accounting preferred

Secret National Capital Region or DFAS Indianapolis

5 Task Lead/Senior Analyst 10 Yrs Bachelor’s Degree– Business Administration;

Accounting preferred

Secret DFAS Columbus

6 Task Lead/Senior Analyst 10 Yrs Bachelor’s Degree– Business Administration;

Accounting preferred

Secret DFAS Indianapolis

7 IT Auditor 7 Yrs Bachelor’s Degree– Business Administration;

Accounting preferred

Secret National Capital Region or DFAS Indianapolis

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

1.6.13 Contractor Travel:

At contract award, the Government will determine the amount of funding to be provided for travel expenses.

(a) All travel requests, other than local travel, shall be approved in advance by the Contracting Officer’s Representative. Reimbursement for travel-related expenses shall be in accordance with the Contractor’s approved travel policy. The Federal Travel Regulations and Standardized Regulations as stated in FAR 31.205-46 will be used as a guide in determining reasonableness of per diem costs. Costs for travel shall be allowable subject to the provisions of FAR 31.205-46.

(b) In connection with direct charge to the contract of travel-related expenses, the Contractor shall travel as required to meet the objectives of the contract, and substantial deviations from the amount of travel agreed to during contract negotiation shall not be made without the authorization of the Contracting Officer. When applicable, the Contractor shall notify the COR of proposed travel of an employee beyond that agreed to during negotiations.

(c) All foreign travel shall be authorized and approved in advance, in writing, by the Contracting Officer.

Request for such travel must be submitted to the Contracting Officer at least forty-five (45) days in advance of traveler’s anticipated departure date, and shall include traveler’s itinerary of United States Flag Air Carriers.

1.6.14 Other Direct Costs: This category includes travel (outlined in 1.6.13), reproduction, and shipping expenses associated with training activities and visits to contractor facilities.

1.6.15 Data Rights: The Government has unlimited rights to all documents/material produced under this contract. All documents and materials, to include the source codes of any software, produced under this contract shall be Government owned and are the property of the Government with all rights and privileges of ownership/copyright belonging exclusively to the Government. These documents and materials may not be used or sold by the contractor without written permission from the Contracting Officer. All materials supplied to the Government shall be the sole property of the Government and may not be used for any other purpose. This right does not abrogate any other Government rights.

1.6.16 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 effect 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.

1.6.17 Phase In/Phase Out Period: To minimize any decreases in productivity and to prevent possible negative impacts on additional services, the Contractor shall have personnel on board, during the sixty (60) day phase in period. During the phase in period, the Contractor shall become familiar with performance requirements in order to commence full performance of services on the contract start date.

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. A person with authority to enter into, administer, and or terminate contracts, and make related determinations and findings on behalf of the government. Note: The only individual who can legally bind the government.

2.1.3. CONTRACTING OFFICER'S REPRESENTATIVE (COR). 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. 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. Actions that prevent 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). An organized written document specifying the surveillance methodology to be 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.

2.1.11. SUBCONTRACTOR. 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:

ACOR Alternate Contracting Officer's Representative BCTF Boards, Commissions, and Task Forces CFR Code of Federal Regulations CONUS Continental United States (excludes Alaska and Hawaii) COR Contracting Officer Representative COMP Office of the Comproller COTR Contracting Officer's Technical Representative COTS Commercial-Off-the-Shelf DARPA Defense Advanced Research Projects Agency DD Form 254 Department of Defense Contract Security Requirement List DFAS Defense Financial Accounting System DFARS Defense Federal Acquisition Regulation Supplement DMDC Defense Manpower Data Center DOD Department of Defense FAR Federal Acquisition Regulation HIPAA Health Insurance Portability and Accountability Act of 1996 KO Contracting Officer OCI Organizational Conflict of Interest OCONUS Outside Continental United States (includes Alaska and Hawaii) ODC Other Direct Costs PIPO Phase In/Phase Out 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

PART 3

GOVERNMENT FURNISHED PROPERTY, EQUIPMENT, AND SERVICES

3. GOVERNMENT FURNISHED ITEMS AND SERVICES:

3.1. Services: The government will provide basic services to phones, desks, utilities, information technology, and general office supplies) while working in Government facilities.

3.2 Facilities: Basic facilities such as work space and its associated operating requirements (i.e., phones, desks, utilities, information technology, and general office supplies) will be provided while working in Government facilities. Tele-workers will only use government furnished equipment to remotely access the DARPA/DFAS network.

3.3 Equipment: The Government will provide will provide basic services to phones, desks, utilities, information technology, and general office supplies) while working in Government facilities. Tele-workers will only use government furnished equipment to remotely access the DARPA/DFAS network.

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.

4.2 Secret Facility Clearance: The contractor shall possess and maintain a SECRET facility clearance from the Defense Security Service. The Contractor’s employees, performing work in support of this contract shall have been granted a SECRET security clearance from the Defense Industrial Security Clearance Office. The DD 254 will be forwarded to the contractor upon award of the contract.

4.3. Materials: NA

4.4. Equipment: NA

PART 5

SPECIFIC TASKS

5. SPECIFIC TASKS:

5.1. Basic Services: The contractor shall provide services for accounting and financial operations support services and Chief Financial Officer’s Act support.

5.2. Accounting and Financial Operations Support Services: The performance of the tasks outlined below requires an in-depth knowledge of a Defense Agency’s internal structure, automated financial systems and expertise in programmatic and financial analysis and installation level accounting. The following support services shall be performed at all locations, the contractor shall:

5.2.1. Perform continual finance and accounting assessments of work units within DARPA and document finding in reports. The contractor shall interface, communicate and educate all levels of the Agency’s staff on the findings of the analysis.

5.2.2. Evaluate both new and on-going business practices and/or requirements and identify areas of deficiency or inefficiency, and recommend process improvements to streamline procedures, strengthen internal management controls and ensure compliance with relevant regulations and statutory guidance.

5.2.3. Guide Defense Agency Initiative (DAI) end users on technical items and system requirements when building system transactions and “trouble shooting” system issues. Assist with the development, application and reporting of finance and accounting data required to operate within DAI.

5.2.4. DARPA Headquarters Specific Support. The following support services will be performed exclusively at the DARPA Headquarters Site, the contractor shall:

5.2.4.1. Provide support to to research and monitor program execution, accounting records and contract payment files for contracts managed within DARPA’s Contract Management Office (CMO). Ensure that all contracts with pending Unliquidated Obligation (ULO) have their obligations and expenditures recorded correctly in both the accounting and entitlement systems.

5.2.4.2. Identify any discrepant conditions and prepare a corrective action package that recommends a solution and describes how the solution should be implemented. Ensure the corrective action package is worked to completion.

5.2.5. DFAS-Columbus Specific Support. The following support services will be performed exclusively at the DFAS-Columbus site, the contractor shall:

5.2.5.1. Provide on-site support at the DFAS Columbus, OH facility with a primary concentration on the Mechanization of Contract Administration Services (MOCAS). Perform contract analysis and document research support for the DARPA Financial Management staff, their support contractor (s), and the DFAS representatives that are performing reconciliations of Unmatched Disbursements (UMDs), Prevalidation and overage ULOs, and support to DARPA Tri-Annual Review (TAR).

5.2.5.2. Identify any discrepant conditions and prepare a corrective action package that recommends a solution and describes how the solution should be implemented. Ensure the corrective action package is worked to completion.

5.2.3. DFAS-Indianapolis Specific Support. The following support services will be performed exclusively at the DFAS-Indianapolis site, the contractor shall:

5.2.3.1. Identify and reconcile accounting records that are in an “out of balance” condition. Conduct research on DFAS Indianapolis coordinated UMDs, and overage ULOs.

5.2.3.2. Identify any discrepant conditions and prepare a corrective action package that recommends a solution and describes how the solution should be implemented. Ensure the corrective action package is worked to completion.

5.2.3.3. Provide analysis and corrective actions, if required, thrice annually supporting the Comptroller’s

TAR.

5.2.3.4. Ensure that all DARPA actions flow through DAI and CAPS-W accurately and within regulatory guidelines by providinge direct on-site support within the DFAS Indianapolis Accounts Payable office.

Provide policy and/or procedural updates, monitoring DARPA agreements, reconcile discrepant conditions (UMDs/Pre-validation errors), recommend corrective actions and follow recommendations through to completion.

5.2.3.5. Act as liaison between the DARPA Financial Management staff, DFAS Mission Support Accountants, support contractor(s), DFAS Columbus, DFAS Indianapolis and DFAS Cleveland.

Coordinate with the geographically disbursed teams and implement a workload control procedure to minimize the potential of duplication of effort between the geographically disbursed teams.

5.2.3.6. Provide documentation and data review for an accounting system conversion and reconciliation for successful migration and deployment to an enterprise resource planning (ERP) upgrade or other financial information/accounting system solution and related audit readiness initiatives.

5.2.3.7. Provide recommendations to accommodate remediation plans as a result of audit or mock audit findings. The recommendations would require workflow documentation and narrative support to be reviewed and approved by the DARPA Comptroller.

5.3 Chief Financial Officer’s Act Support Services: The following services shall be performed at the DFAS-Indianapolis and DARPA Headquarters locations, the contractor shall:

5.3.1. Perform audit readiness activities and associated reviews of compliance with laws and regulations, the systems of internal controls and accounting standards, and review financial results and audit reports (when applicable). At minimum two times annually or as otherwise directed by the COR, provide assessments and recommendations for resolution of finance, accounting, accounting systems and auditing issues related to DARPA, and keep an open line of communication between DARPA, its Audit Committee and other responsible entities within the Office of Secretary of Defense (OSD), Comptroller Office.

5.3.2. Review the adequacy of internal controls over financial reporting, including computerized information system controls and security. Create and maintain business process flow charts and narratives which will include the assessment of associated risks, control activities, environment, information, monitoring, testing weaknesses (dependent or otherwise) as they relate to the reasonable assurance of financial reporting.

5.3.3. Project staff must utilize Teammate Electronic Workpapers (EWP), a commercial off the shelf product to manage, maintain and store all documentation relative to ICOFR and audit readiness. Must also make available three (3) additional licenses of Teammate EWP exclusively for the use of DARPA staff.

5.3.4. Create new or review and update the existing permanent file documentation (procedures, processes, and key control points) necessary for DARPA to assert audit readiness, while also identifying significant financial improvements issues where corrective action plans need to be applied, including Complimentary User Entity Controls (CUECs). Complete packages of the permanent file documentation will be maintained and updated at the end of each Fiscal Year.

5.3.5. Provide support to DARPA when responding to the requirements of OUSD(C)/FIARSD. Provide up-to-date Assessable Unit (AU) documentation of internal controls over financial reporting and systems as required. Areas that should be documented include, but are not limited to: Fund Balance with Treasury, Accounts Receivable, Accounts Payable and Financial Reporting, Contract Pay and Civilian Pay.

5.3.6. Create and maintain DARPA financial reporting objectives (FROs), and the tests of internal controls and key supporting documents (KSDs) needed to demonstrate audit readiness. At least twice annually, provide evidence of sufficient tests of internal controls and key supporting documents included in the scope of its AUs.

5.3.7. Perform reviews of Fund Balance with Treasury (FBWT) and maintain all requisite documentation (executive summary, reconciliations, DFAS-Defense Reconciliation & Reporting Tool [DRRT]). Reviews assess the adequacy of the controls and procedures for recording transactions and determine the reasonableness of the total amounts reported as current-period transactions affecting FBWT. Amounts reviewed will include disbursements, collections, appropriations realized, transfers in, transfers in/out, and other adjustments (rescissions, etc.) of funding authority that affect FBWT. Reviews will be performed each quarter of the Fiscal Year.

PART 6

APPLICABLE PUBLICATIONS

6. APPLICABLE PUBLICATIONS:

6.1. The Contractor must abide by all statutes, applicable regulations, publications, manuals, and federal policies, procedures.

PART 7

ATTACHMENT/TECHNICAL EXHIBIT LISTING

7. ATTACHMENT/TECHNICAL EXHIBIT LIST:

7.1. Attachment 1/Technical Exhibit 1 – Performance Requirements Summary

7.2. Attachment 2/Technical Exhibit 2 – Deliverables Schedule

7.3 Attachment 3/Technical Exhibit 3 – Estimated Workload Data

TECHNICAL EXHIBIT 1

Performance Requirements Summary

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 Objective (The Service required— usually a shall statement)

Standard Performance Threshold (This is the maximum error rate. It could possibly be “Zero deviation from standard”)

Method of Surveillance

PRS # 1.

Monthly status reports due by the 5th business day of each month, format and contents of which will be agreed upon by the Contractor and the

COR.

No more than one deviation per life of the contract.

Delivery Date

PRS # 2

Permanent file documentation required to meet Financial Improvement and Audit Readiness (FIAR) audit readiness guidance and OMB A-123, Appendix A requirements within prescribed deadlines set forth by the COR.

No more than one deviation per life of the contract.

Deviation from COR’s instruction

PRS # 3 Report on results of monthly Fund Balance with Treasury (FBWT) reconciliation due by the 20th calendar day of each month, unless specifically agreed to otherwise by the COR.

No more than one deviation per life of the contract.

Completeness of reconciliation and Delivery Date

PRS # 4 Report on results of Internal Management Control (IMC) reviews, following a prescribed format set forth by the DARPA Comptroller’s office including, but not limited to the following items: Executive Summary, Objectives & Approach, Findings, and Conclusions & Recommendations. At minimum, one IMC report shall be delivered within prescribed deadlines set forth by the COR.

No more than one deviation per life of the contract.

Completeness of IMC and Delivery Date

PRS # 5 Ad-hoc reports or analysis as required, and coordinated between the project manager and

COR.

No more than one deviation per life of the contract.

Completeness of reports analysis and delivery date

TECHNICAL EXHIBIT 2

DELIVERABLES SCHEDULE

Deliverable PWS Frequency # of Copies Medium/Format Submit To Monthly Status Report

5.2 5th each month one MS Word Delivered to COR via email

Non Disclosure Agreement

1.6.8 Within five (5) days of

contract placement one MS Word Delivered to COR via email

Permanent file documentation

5.3.4 Within five (10) days of

contract placement one MS Word Delivered to COR via email

Monthly FBWT Reconciliation

5.2.3.6 20th calendar day monthly one MS Word Delivered to COR via email

IMC 5.3.1 Once Annually One MS Word Delivered to COR via email

TECHNICAL EXHIBIT 3

ESTIMATED WORKLOAD DATA

This technical exhibit lists the historical workload data, i.e., the hours previously performed under the PWS by labor category.

Item Name Estimated Quantity (hours)

1 Program Manager (NCR) 1920 2 Subject Matter Expert (NCR) 1920 3 Lead/Senior Auditor (NCR) 1920 4 Senior Auditor/Team Lead (Indianapolis) 1920 5 Senior Auditor (Indianapolis) 1920 6 Senior Auditor (Indianapolis) 1920 7 Subject Matter Expert (NCR) 1920 8 IT Auditor 1920 9 Auditor (Indianapolis) 1920

10 Auditor (Indianapolis) 1920 11 Senior Analyst (NCR) 1920 12 Senior Analyst (NCR) 1920 13 Senior Analyst (NCR) 1920 14 Senior Financial Analyst (Columbus) 1920 15 Senior Financial Analyst (Indianapolis) 1920 16 Junior Auditor (Indianapolis) 1920 17 Financial Analyst (Columbus) 1920 18 Financial Analyst (Indianapolis) 1920