OMBP Draft RFP Q_A (HQ0423-22-R-0008) Responses 28 MAR 2022.docx

QUESTIONS and ANSWERS (Q&A) DoD Overseas Military Banking Program (OMBP) Draft Request for Proposal (RFP) March 28, 2022

Q1: Banks, especially large commercial institutions are facing additional scrutiny from the OCC and to that extent the CFPB. The only RFP comments related to H-12, reference adherence to the Bank Secrecy Act even though it states the Program does not fall under that regulation.

The bank is seeking contract language clarification, stating that stateside Laws, Rules, and Regulations do not apply to these overseas accounts which are owned by the Department of Defense (DoD). (Possible reference to H-10 which comments on overseas requirements but not U.S.)

A1: The OMBP is operated under the authority of 12 U.S.C 90 through the U.S. Treasury designation of a financial institution as a depositary and financial agent of the U.S. Government and under the authority of DODD 5118.03 for the operation of Military Banking Facilities (MBF) on military installations. Policy and procedures for OMBP operations are contained within Title 32 Code of Federal Regulations Parts 230 and 231, DoD Instruction 1000.11, and the DoD Financial Management Regulation Volume 12 Chapter 33. Generally, the operations of MBFs have not been considered to be “banking branches” subject to regulation or oversight. See “Comptrollers Licensing Manual”, Office of the Comptroller of Currency (OCC), October 2019.

However, the contractor remains responsible for adhering to applicable U.S. banking laws, rules, and regulations during contract performance and such laws, rules and regulations may intersect with the contractor’s performance of this contract even if the MBFs are not directly subject to regulation by the OCC and CFPB. Furthermore, although historically MBFs are not “banking branches” and are not generally subject to regulation on that basis it remains a possibility that a new statute, rule or regulation or reinterpretation of an existing statute, rule or regulation, could alter that conclusion and the DoD cannot contract around such a possibility except to reiterate that we do not have any reason to believe that any action or reinterpretation is forthcoming.

Q2: The communicated Draft RFP term of a 10X1 year contract presents long-term risk considerations. Would DFAS consider a 5X1 year contract term?

A2: The Government is currently contemplating a 10 year contract consisting of a base period of one-year (12 months) and nine one-year option periods. Contractor risk considerations are appropriately priced into proposals. Proposals received must be in accordance with FAR 52.215-1, Alt I Instructions to Offerors – Competitive Acquisition and the Government intends to make award after discussions with offerors within the competitive range.

Q&A March 28, 2022 OMBP Draft RFP – Issued December 14, 2021