NAFI AUDIT Solicitation Qs and As.docx

Solicitation 70Z03926QCGA00035: Questions and Answers

NOTE: QUESTIONS RECEIVED FROM NOW CANCELLED RFQ 70Z03926QCGA00035. This office is re-soliciting this requirement as best value. All documents have been updated to reflect.

1. We would like to know if this is a brand new contract OR if there is (was) an incumbent performing these services. If not brand new, could you please provide the current / previous contract number?

Contracts for NAFI audit services have been awarded in the past, but there is currently no incumbent.

2. Please provide copies of the 2022 audits of the Athletic Activity Fund and Academic Activities Fund and the 2020 audit of the Cadet Activities Fund, including related findings, management letters, and corrective-action plans. Redacted copies are acceptable. If the reports cannot be released before award, please provide summary information regarding their scope, material findings, transaction volumes, and level of audit effort.

Copies of past audits, and related materials will not be made available before contract award.

Past awards included gathering of statements prior to an onsite visit to the Academy (typically 2-3 days for field work), followed by work done off-site to complete the audits.

3. Are the activities, financial structure, transaction volumes, staffing levels, number of accounts, and overall audit effort reflected in those historical reports representative of the anticipated fiscal year ending June 30, 2026? If not, please identify any material changes offerors should consider when developing their technical approaches and firm-fixed pricing.

Fiscal year ending June 30, 2026 is representative and similar to previous audit years.

4. Please provide the approximate annual revenue, expenses, assets, number of employees, number of bank accounts, and annual transaction volume for each of the three funds.

Academic Activities Fund: Annual revenue: $200K; Expenses: $200K, Assets: $150K Number of employees: ~ 12 employees, Number of bank accounts: two (2); annual transaction volume: ~1200 journal entries/year (including payroll)

Cadet Activities Fund: Annual revenue: $2M; Expenses: $2M, Assets: $2.7M, Number of employees: ~ 10 employees, Number of bank accounts: six (6); annual transaction volume: ~4000 journal entries

Athletics Activity Fund: Annual revenue: $5.24M; Expenses: $3.63M; Assets: $1.81M; Number of employees: ~25 employees; Number of bank accounts: five (5); Annual transaction volume: approximately 1,900 transactions/journal entries per year.

5. Please identify the accounting and financial-reporting framework applicable to each NAFI. Will the Government provide the current Coast Guard NAF accounting manual, audit guide, chart of accounts, standard financial-statement formats, and applicable locally issued accounting policies?

The Contractor must complete an audit of the three activity funds (AAF, CAF and AcAF) according to Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), Coast Guard Financial Resource Management Manual (FRMM – NAF sections), with standards and procedures set forth in the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), Morale, Well-Being, and Recreation Manual (Commandant Instruction M1710.13E), and other regulatory guidance, as applicable.

The Government will provide access to NAF Manuals.

6. In addition to Generally Accepted Government Auditing Standards, please confirm whether the audits must be performed under Generally Accepted Auditing Standards, Statements on Standards for Attestation Engagements, the Coast Guard NAF Audit Guide, or any other specified professional or agency standards.

The Contractor must complete an audit of the three activity funds (AAF, CAF and AcAF) according to Generally Accepted Government Auditing Standards (GAGAS/ “Yellow Book”), Coast Guard Financial Resource Management Manual (FRMM – NAF sections), with standards and procedures set forth in the Non-Appropriated Fund Instrumentalities (NAFI) Manual (Commandant Instruction M7010.5 series), Morale, Well-Being, and Recreation Manual (Commandant Instruction M1710.13E), and other regulatory guidance, as applicable.

7. Is the examination of management’s assertion regarding internal control over financial reporting expected to result in a separate attestation opinion for each fund? If so, will management prepare and provide its formal assertion and identify the criteria against which the assertion must be evaluated?

A GAGAS report on internal control over financial reporting and compliance issued with the audit is required. A separate attestation opinion of management’s assertion regarding internal control over financial reporting for each fund is not required.

8. Do any of the three NAFIs receive appropriated-fund support or the use of shared personnel, facilities, equipment, utilities, administrative services, reimbursements, loans, advances, or other in-kind support? If so, how are these costs and benefits identified, allocated, approved, and recorded?

No appropriated fund support is received by the three NAFIs. Reimbursements for cadet meals are provided through appropriated funds and are recorded as a reimbursement.

9. Are there transfers, loans, advances, shared expenses, shared employees, due-to/due-from balances, or other interfund transactions among the Athletic Activity Fund, Academic Activities Fund, and Cadet Activities Fund? If so, please provide the approximate volume and describe how these transactions are authorized, recorded, and reconciled.

There are no transfers, loans, advances, shared expenses, shared employees or other interfund transactions among the Athletic Activity Fund, Academic Activities Fund, and Cadet Activities Fund.

10. Please identify the governing or oversight body for each NAFI. Will the contractor receive access to applicable charters, delegations of authority, governing-board minutes, approved budgets, business plans, financial reports, and management certifications?

The Contractor will receive access to the applicable Superintendent Instructions for the establishment of the NAFIs, as well as financial reports and approved budgets for the FY ending June 30, 2026

11. Do any of the NAFIs maintain merchandise or concession inventory, uniforms, equipment, fixed assets, cash on hand, ticket stock, or other accountable property? If so, please provide the approximate value and number of locations and confirm whether physical inventory or asset observation will be required.

No physical inventory or asset observation will be required as part of the three audits.

12. Please provide the approximate number of personnel paid by each NAFI and identify whether they are NAF employees, federal employees, contractors, cadets, or other personnel. Does the required audit scope include payroll, benefits, timekeeping, personnel authorization, tax reporting, and transactions processed through ADP?

The approximate number of NAF employees in each activity fund is as follows: AcAF: ~15 employees; CAF: ~10 employees; AAF: ~25 employees.

The required audit scope includes ensuring payroll and benefits are accounted for properly, tax reporting occurs. The audit scope doesn’t include timekeeping personnel authorization. ADP functions are centrally managed through the CG Community Services Command.

13. How many bank, investment, merchant-processing, petty-cash, and other financial accounts does each NAFI maintain? How many locations collect or process cash, checks, credit-card payments, electronic payments, or other receipts?

The details of the operations of each NAF will be detailed upon award. In general, there are few instances of petty cash operations and processing of checks and electronic payments through the AAF and CAF. There is one bank utilized by AcAF, and three banks each for CAF and AAF.

14. Please identify the Coast Guard directives, command instructions, NAF personnel requirements, MWR requirements, local policies, and other compliance criteria applicable to each fund. Will the Government provide the versions that were effective during the fiscal year ending June 30, 2026?

Each Activity Fund falls under the same compliance criteria and CG directives, command instructions and other applicable policies will be provided by the Government.

15. Will the contractor be required to test and report on the implementation status of findings and corrective actions from previous audits, inspections, or management reviews? If so, approximately how many open findings or corrective actions exist for each NAFI?

The Contractor will not be required to test and report on the findings and corrective actions from previous audits under other contracts, inspections or management reviews.

16. Will the contractor receive secure remote electronic access to QuickBooks, ADP reports, supporting documentation, and other required records, or must the accounting records be reviewed onsite?

The Government is able to provide electronic access to QuickBooks, and to securely share reports, supporting documentation and other required records. However, the Government does not provide the secure site to which documents will be shared with Contractor.

17. Does the Government anticipate onsite fieldwork? If so, approximately how many visits or onsite days should offerors include in their pricing?

In the past, Contractors conducted a two-to-three-day visit (in total) for field work for all three of the Activity Funds.

18. The Statement of Work indicates that travel will be established as a separate CLIN for the base and option periods. Should offerors propose separate travel CLINs, incorporate travel into the audit CLINs, or provide a travel allowance? If travel is separately reimbursable, will reimbursement be limited to actual allowable costs under applicable federal travel regulations?

Travel should be priced out as separate CLINs, with reimbursement limited to actual allowable costs under applicable federal travel regulations.

19. Are offerors required to submit CPA licenses, peer-review reports, Yellow Book continuing-professional-education documentation, quality-control documentation, or specific independence representations with their quotes?

Offerors should submit information regarding their experience and qualifications, to include CPA licenses. Peer review reports and education documentation is not required to be submitted as part of the proposal. The Government can request this information as a follow up if deemed necessary.

20. Is there a page limit for the technical quote beyond the one-page limitation identified for the cover sheet?

There is no page limit for technical quote.

21. Should the technical and price quotes be submitted as separate files or combined into one document?

They may be submitted combined.

22. What minimum quote-validity period should offerors provide on the cover sheet?

Quotes shall remain valid for a minimum of 30 calendar day from quote due date.

23. Please confirm that Option Period Three applies to audits for the fiscal year ending June 30, 2029, as the stated option-period dates appear to contain a duplication.

Base period is for audits ending Fiscal Year (FY) 2026 (June 30, 2026) Option Year 1, ending Fiscal Year 2027 (June 30, 2027) Option Year 2, Ending FY 2028 (June 30, 2028) Option Year 3, Ending FY 2029 (June 30, 2029)

24. CLIN Structure and Travel The RFQ identifies four CLINs (0001–0004), corresponding to the base period and three option periods. However, SOW Section 9.0 states that travel shall be established as a separate CLIN for the base period and each option year.

Please clarify whether:

a. all travel costs are to be included in the applicable firm-fixed-price audit CLIN; or

b. travel will be separately authorized and priced under separate travel CLINs.

If travel will be separately priced, will the Government issue a revised CLIN structure and provide instructions for pricing travel?

The Contractor shall price all travel separately from labor and other direct costs. All travel shall comply with the Federal Travel Regulation (FTR), the Joint Travel Regulations (JTR), and all applicable agency travel policies. Travel will be authorized only when essential to fulfill the requirements of this contract.

Per Diem

a. Per diem (lodging and meals/incidental expenses) shall be billed in accordance with the prevailing federal per diem rates published by the U.S. General Services Administration (GSA) for the authorized travel location and dates.

b. Per diem shall not exceed the maximum allowable GSA rate. The Government will not reimburse amounts above established federal per diem limits.

Mileage

a. Privately Owned Vehicle (POV) mileage shall be reimbursed at the current GSA‑authorized POV mileage rate in effect at the time the travel occurs.

b. The Contractor shall separately itemize mileage charges, including travel dates, origin, destination, and miles traveled.

Air Travel

a. Airfare must comply with Federal Travel Regulation guidelines, including use of the least costly, coach‑class fare consistent with mission requirements.

b. Contractor personnel shall use U.S. flag carriers when required under the Fly America Act.

c. Any airfare in excess of the lowest available coach fare must be justified in writing and approved by the Government prior to purchase.

Travel Estimates and Invoicing

a. Proposed travel costs shall be provided as a separate, itemized travel CLIN, supported by estimated quantities (number of trips, travelers, destinations, and duration).

b. Actual travel charges must be invoiced separately from other contract costs and must include receipts where required.

c. The Government reserves the right to reject or adjust any travel cost not in compliance with federal travel regulations.

25. Onsite Audit/Fieldwork SOW Section 4.2 states that the Contractor may schedule onsite visit(s) to the U.S. Coast Guard Academy, if needed.

Please clarify whether the determination that onsite fieldwork is necessary will be made by the Contractor, the Government, or jointly. If onsite travel is required, please also clarify the authorization and reimbursement requirements.

The Contractor shall make the determination if onsite fieldwork is necessary. If the Contractor anticipates multiple visits for fieldwork, the proposal must reflect all anticipated travel in the Travel CLIN.

26. Applicable Financial Reporting Framework SOW Section 1.3 references GAGAS/Yellow Book requirements and states that Coast Guard NAFIs use a comprehensive accounting basis that may differ slightly from GAAP. SOW Section 2.3 subsequently references an opinion on the financial statements according to GAAP and GAO Standards.

Please identify the specific financial reporting framework against which the financial statements of the three NAFIs are to be audited and the basis upon which the Contractor is expected to express its opinion.

These audits should be conducted in accordance with generally-accepted General Accounting Office (“GAO”) Standards; generally-accepted auditing by the Federal Managers Financial Officers Act of 1990; including the Federal Manager’s Financial Integrity Act, and Office of Management and Budget (“OMB”) (Circular A-123, Internal Control Program), with standards and procedures set forth in the NAFI Manual, Commandant Instruction M7010.5C; and other regulatory guidance, as applicable, collectively with auditing standards generally accepted in the United States of America (“GAAS”), and Government Auditing Standards (“GAGAS”), to ensure that the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

27. Internal Control Examination The SOW requires an examination of management’s assertions regarding the effectiveness of internal controls over financial reporting.

Please clarify whether the Government requires a separate examination/attestation engagement and report on management’s assertion regarding internal control over financial reporting, in addition to the financial statement audit.

If so, please identify the applicable professional standards and required form of reporting for this portion of the engagement.

A GAGAS report on internal control over financial reporting and compliance issued with the audit is required. A separate attestation opinion of management’s assertion regarding internal control over financial reporting for each fund is not required.

28. Chief Financial Officer’s Act SOW Section 2.3 references the Chief Financial Officer’s Act in connection with the required financial statement opinion.

Please confirm whether compliance with/reporting under the Chief Financial Officer’s Act is an intended requirement of this engagement and, if so, clarify the specific requirement applicable to these NAFI audits.

No, compliance with and reporting under the Chief Financial Officers (CFO) Act of 1990 is not a requirement of this engagement.

29. Base-Period Audit Date SOW Sections 1.3 and 2.3 contain references to “June 30, 2021 2026” and “30 June 20212026.”

Please confirm that all such references for the base-period audit are intended to mean the fiscal year ending June 30, 2026.

Base period is for audits ending Fiscal Year (FY) 2026 (June 30, 2026) Option Year 1, ending Fiscal Year 2027 (June 30, 2027) Option Year 2, Ending FY 2028 (June 30, 2028) Option Year 3, Ending FY 2029 (June 30, 2029)

30. Option Period Three SOW Section 4.0 identifies Option Period Three as “FY2027-2028 Audit, for FY ending June 30, 2029,” while RFQ CLIN 0004 identifies the period as FY2028-2029.

Please confirm that Option Period Three is FY2028-2029, for the fiscal year ending June 30, 2029.

Option Year 3, Ending FY 2029 (June 30, 2029)

8. Final Audit Report Addressee Comment by Hart, Stephen A CDR: Just a Q on the numbering convention of this - #8 is out of place SOW Section 2.3 states that the Contractor must address the audit report to the “Commandant of CadetDirector of Business Operations, U.S. Coast Guard Academy.”

Please clarify the intended official/title to whom each final audit report should be addressed.

The Audit Reports must be addressed to the Director of Business Operations, US Coast Guard Academy.

31. Physical Copies of Final Reports SOW Section 2.4 requires three final report copies for each of the three Activity Funds, for a total of nine report copies, as well as electronic delivery.

Please confirm whether nine physical, bound copies are required in addition to the electronic reports.

Nine physical, bound copies are required in addition to the electronic reports.

32. Prior Audit Findings SOW Section 2.3 requires reporting on the status of corrective recommendations for the previous two years of audits. However, SOW Section 1.4 states that the last AAF and AcAF audits were completed in 2022 and the last CAF audit was completed in 2020. Please clarify which prior audit reports, findings, and corrective recommendations the Contractor will be required to review and follow up on during the FY2026 engagement.

The Contractor will not be required to test and report on the findings and corrective actions from previous audits (in 2020 and 2022), inspections or management reviews. However, the Contractor in Option years One, Two and Three shall report on the status of corrective recommendations from each previous year, starting with Base Year, FY ending June 30, 2026.

33. Government-Furnished Information and System Access SOW Section 5.0 states that the Government will not furnish resources to the Contractor. Other sections indicate that prior financial statements and audit reports are available and that the Contractor will be granted access to NAF systems, financial records, and facilities as required.

Please clarify what Government-furnished information, records, system access, and other data will be made available to the Contractor for performance of the audits.

The Government will provide access to NAF systems, QuickBooks, financial records, reports, and past audit reports to complete the audit. Access to government facilities will be facilitated as part of any required field work.

34. Draft and Final Report Schedule SOW Section 8.0 requires the three draft audit reports within 70 days of contract award and the final reports within 21 days of submission of the draft reports.

Please confirm:

a. whether all three draft reports are due within 70 days of award;

b. whether the three audits are expected to proceed concurrently; and

c. whether the 21-day period for final reports begins upon submission of the draft reports or upon receipt of consolidated Government review comments.

All three draft reports are due within 70 days of award, with the expectation that the Contractor is conducting the audits concurrently. The 21 day for final reports will begin upon receipt of consolidated Government review comments.

35. Technical Acceptability Documentation The RFQ provides for award on a Lowest Price Technically Acceptable basis and identifies experience, personnel qualifications, audit capability, safeguarding of sensitive information, timely performance, coordination, and project management as technical requirements.

Please clarify the specific documentation the Government expects quoters to submit to demonstrate technical acceptability, including whether the Government requires:

· CPA firm/license information;

· resumes for key personnel;

· identification and qualifications of the Project Manager;

· examples of relevant GAGAS, Government, nonprofit, or NAFI audit experience;

· past performance references;

· a technical approach/work plan;

· a staffing plan; and/or

· a proposed performance schedule.

Documentation demonstrating technical acceptability could include: CPA firm/license information; resumes of key personnel (including Project Manager); past experience with NAFI audits; past performance references; technical approach; and proposed performance schedule.

36. Price Evaluation Please clarify whether the Government will evaluate the total price of the base period and all option periods in determining the lowest evaluated price for purposes of the LPTA award decision.

NEW RFQ PUBLISHED, see best value evaluation criteria document.

37. Is it possible to see the previous draft reports so that we can ascertain some of the previous concerns, findings, etc.

Copies of past audits, and related materials will not be made available by the Government before contract award.

38. RFQ CLIN 0004 states "Option Period Three — FY2028-2029 Audit, FY ending June 30, 2029," while SOW §4.0 labels Option Period Three "FY2027-2028 Audit, for FY ending June 30, 2029." Please confirm that Option Period Three covers the FY2028-2029 audit (FYE June 30, 2029) and that Option Period Two covers FYE June 30, 2028.

Base period is for audits FY2025-2026 Audit, for FY ending June 30, 2026 Option Year 1, FY2026-2027 Audit, for FY ending June 30, 2027 Option Year 2, FY2027-2028 Audit, for FY ending June 30, 2028 Option Year 3, FY2028-2029 Audit, for FY ending June 30, 2029

39. The RFQ states the CLIN structure "shall include a total of four (4)," while SOW §9.0 requires travel as a separate CLIN for the base period and each option year (which implies 8 CLINs), and the invoicing clause references approved travel under FAR 31.205-46. Please confirm whether travel will be established as separate reimbursable CLINs (and provide a revised CLIN structure/pricing template), or whether all travel must be included in the firm fixed price.

See updated CLIN structure on solicitation document to include all base and option years plus travel CLIN for each.

40. SOW §2.1 directs draft reports to the three Business Managers and then by email to the Academy Comptroller, while the SOW §8.0 deliverables table lists distribution to the COR and Contracting Officer. Please confirm the official distribution and submission channel for draft and final reports, and whether email delivery to the Comptroller alone satisfies the deliverable.

Draft reports should be submitted to the three Business Managers and the Comptroller. Final reports should be submitted to the Comptroller.

DISTRIBUTION

N/A

COR

41. The Contracting Officer name and email in SOW §10.0 are listed as "XXXX," and the RFQ states quotes "shall be emailed to the following addresses" (plural) while listing only Kayla.L.Rex@uscg.mil. Please identify the Contracting Officer and confirm the complete quote-submission email address(es).

Quotes should be submitted to SK1Kayle Rex at Kayla.L.Rex@uscg.mil

42. The RFQ states award will be made on a strict Lowest Price Technically Acceptable (LPTA) basis, but also includes language that the Buyer may use criteria other than price and award to the "most advantageous" offer on the basis of price, technical capability, and delivery. Please confirm that award will be made strictly on an LPTA basis (acceptable/unacceptable technical rating, then lowest evaluated price).

NEW RFQ PUBLISHED, see best value evaluation criteria document.

43. A one-page cover sheet "included on Volume I" is required, but no volume structure, page limits, or pricing template/format is defined in the solicitation package. Please prescribe the required quote format, including volumes, required content, page limits, and a pricing template for the four CLINs.

See evaluation Criteria attachment

44. Final reports are due "within 21 days of submitted Draft Audit Report," yet SOW §2.1 requires Business Manager review, management comments, and dispute resolution before final reports — a step outside the contractor's control. Does the 21-day final-report period run from the Government's return of consolidated management comments? Will the deadline be equitably adjusted if management comments or dispute resolution are delayed?

Deadlines will be adjusted if management comments or dispute resolution are delayed.

45. No anticipated award date is stated, and the 70-day draft-report deadline runs from award, for an FYE June 30, 2026 audit awarded after fiscal year-end. What is the anticipated award date? Please confirm the FY2026 books will be closed and records available at award.

FY26 will be closed out at award.

46. The SOW requires three hard copies of each report (nine total) "and in electronic format," with the management letter bound in each report. Will electronic-only delivery (PDF) be accepted in lieu of the nine printed and bound copies?

Nine physical, bound copies are required in addition to the electronic reports.

47. The SOW contains two sections numbered 1.4 (Applicable Documents; Activity Fund General Information). Please confirm the Government will issue a consolidated SOW correcting the section numbering, or that citing sections by title is acceptable.

Citing sections by title is acceptable.

48. The RFQ cites a $24.5M size standard for NAICS 541211; SBA's currently published standard is $26.5M in average annual receipts. Please confirm the applicable size standard, as the solicitation figure controls small-business eligibility.

The applicable size standard for NAICS 541211 is $26.5M

49. SOW §1.3 states "CG NAFIs use a comprehensive accounting basis that may differ slightly from GAAP," while §2.3 requires an opinion on the financial statements "according to GAAP." These are different reporting frameworks that produce different opinions. Please confirm the financial reporting framework for the opinion: U.S. GAAP (FASB), or the Coast Guard NAF comprehensive basis as a special-purpose framework. Please also identify the authoritative criteria and any prescribed statement formats.

These audits should be conducted in accordance with generally-accepted General Accounting Office (“GAO”) Standards; generally-accepted auditing by the Federal Managers Financial Officers Act of 1990; including the Federal Manager’s Financial Integrity Act, and Office of Management and Budget (“OMB”) (Circular A-123, Internal Control Program), with standards and procedures set forth in the NAFI Manual, Commandant Instruction M7010.5C; and other regulatory guidance, as applicable, collectively with auditing standards generally accepted in the United States of America (“GAAS”), and Government Auditing Standards (“GAGAS”), to ensure that the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

50. The report must opine "according to GAAP and GAO Standards, including the Chief Financial Officer's Act." The CFO Act/GMRA audit requirements apply to the financial statements of the 24 CFO Act agencies — not to standalone activity-fund Nonappropriated Fund Instrumentalities. Please clarify the intended application of the CFO Act to these engagements; if there is none, the offeror requests removal of the reference.

Compliance with and reporting under the Chief Financial Officers (CFO) Act of 1990 is not a requirement of this engagement.

51. The SOW requires an "examination of management's assertions" and a "report and opinion" on whether each fund has "sufficient internal controls." An examination-level opinion on internal control effectiveness is an attestation engagement (AT-C 205 / GAGAS attestation standards), which requires substantially more work than the report on internal control and compliance normally issued with a GAGAS financial audit (no opinion). Please confirm the required internal control deliverable: (a) a GAGAS report on internal control over financial reporting and compliance issued with the audit, or (b) a separate examination-level attestation opinion on ICFR effectiveness.

A GAGAS report on internal control over financial reporting and compliance issued with the audit is required. A separate attestation opinion of management’s assertion regarding internal control over financial reporting for each fund is not required.

52. The opinion covers the "Operating Summary (Balance Sheet and Income Statement)" only, whereas a complete GAAP presentation normally includes a statement of cash flows and notes to the financial statements. Please confirm the exact financial statements and disclosures required (balance sheet, income statement, statement of cash flows, notes, budget-to-actual), and whether the income statement must present business-activity detail.

The opinion will cover the Operating Summary (Balance Sheet and Income Statement). Budget to actual is not required.

For each audit, an opinion for each of the Funds on the fairness of presentation of the Operating Summary (Balance Sheet and Income Statement for CAF and AAF, and Statement of Financial Position and Statement of Activities for the AcAF) as of year-end is required.

53. The AAF and AcAF were last audited in 2022 and the CAF in 2020; FY2023-2025 activity is unaudited, so FY2026 opening balances carry residual risk. Will prior audit reports and any available workpapers be furnished? Are FY2026 opening balances considered established, or is prior-period work expected? Were any prior findings left unresolved? Was a FY2021-2022 CAF audit completed under the prior contract?

A CAF audit was not completed under the prior contract. Prior audit reports will be made available.

54. Records are maintained on-site in QuickBooks Pro; place of performance is the contractor's facility; and on-site visits are optional "if needed." The mechanics of records access are undefined. How will records be provided to the contractor (secure data extracts, hosted or read-only QuickBooks access, or on-site review only)? How many on-site fieldwork days does the Government anticipate, and is travel to be priced separately (see Question A-2)?

QuickBooks access will be provided. Past audits have had three days of field work onsite at the US Coast Guard Academy.

55. Payroll is processed by ADP under a Community Services Command contract — a third-party service organization relevant to internal control over financial reporting. Will the contractor have access to ADP payroll reports and the ADP SOC 1 (service auditor) report?

Contractor will have access to ADP payroll reports and ADP SOC 1.

56. Stated security requirements are limited to encryption/password protection and installation access; no CUI handling, background investigation, or cybersecurity clauses are cited. Are there any CUI, background-check, or information-system security requirements beyond those stated (e.g., FAR 52.204-21, Basic Safeguarding of Covered Contractor Information Systems)?

All financial data shall be treated as proprietary and confidential information. Encryption of computers, use of a secure, encrypted internet-based file transfer system, and use of secure email and password-protected software programs are requirements of this engagement. REAL ID is required to access the Coast Guard Academy for on-site field work.