PWS_TEMPLATE.docx

PWS/QASP TEMPLATE

PERFORMANCE WORK STATEMENT (PWS)NOTE: Text boxes, like this one, contain informational material and examples that should be deleted by the Offeror when finalizing this document. Mandatory numbering system, summary tables and examples have been included for your use.

1. PROJECT TITLE: Investment Consulting Services

2. BACKGROUND:

The Employee Retirement Income Security Act of 1974 (ERISA) established the Pension Benefit Guaranty Corporation (PBGC) as a federal corporation to encourage the growth of defined benefit pension plans, provide timely and uninterrupted payment of pension benefits, and keep pension insurance premiums at a minimum. Defined benefit pension plans promise to pay a specified monthly benefit at retirement, commonly based on salary and years on the job. The PBGC, a wholly owned United States Government corporation, administers the insurance program and termination process for most private-sector defined benefit pension plans that are tax-qualified under the Internal Revenue Code. The PBGC is headed by a Director who reports to a board of directors consisting of the Secretaries of Labor, Commerce, and Treasury, with the Secretary of Labor as Chairman. General tax revenues do not fund PBGC. The PBGC collects insurance premiums from employers that sponsor insured pension plans, earns money from investments and receives the assets of the pension plans it terminates.

The strategic objectives of the PBGC are to preserve plans and protect pensions, pay timely and accurate benefits and maintain high standards of stewardship and accountability across the program.

Description of the PBGC Investment Management Program

The Program is structured as a manager-of-managers program. No assets are managed internally and the PBGC uses institutional investment management firms to invest its assets. The PBGC continuously reviews and evaluates manager performance and conducts extensive due diligence to ensure satisfaction of performance standards and compliance with guidelines.

The general structure of the Program is described by the following portfolio tree.

· Total Fund

· Total Non-Fixed Income

· Global Public Equity

· US Public Stock

· Large Cap

· Small Cap

· All Cap

· US REITs

· International Public Stock

· EAFE

· Canada

· Emerging Markets

· Public Stock Transition

· Inherited Private Market Assets

· Fixed Income

· US Fixed Income

· Revolving Fund

· Treasuries

· TIPS

· Cash

· Long Duration Fixed Income

· Core Fixed Income

· High Yield

· International Fixed Income

· Developed Market Fixed Income

· Emerging Market Fixed Income

· Fixed Income Transition

· Money Market Securities

Additional details on the structure, composition, and features of the Program follow:

· Single Employer and Multiemployer Programs: The PBGC insures two types of defined benefit pension plans in two separate insurance programs. Single employer pension plans are pensions that employers set up only for people who work for their company. Multiemployer pension plans, often maintained under collective bargaining agreements, cover workers of more than one employer, usually companies in the same industry, such as construction, trucking, or coal mining. The assets and liability streams of the Single Employer and Multiemployer Programs are separate. The Multiemployer Program’s assets are represented by a minority portion of the Revolving Fund (defined below). The Single Employer Program’s assets are represented by the majority of the Revolving Fund plus the entirety of the Trust Fund (defined below).

· Revolving Fund: The PBGC collects insurance premiums from corporations for guaranteeing their defined benefit pension plans. By law, those premiums must be held in the Revolving Funds and invested solely in U.S. Treasury securities. The U.S. Bureau of Public Debt is the custodian for the Revolving Funds.

· Trust Fund: The Trust Fund holds investment assets of terminated Single Employer pension plans transferred to the PBGC. The Trust Fund is primarily comprised of Global Public Equity, Fixed Income (ex. Revolving Fund), Cash (ex. Revolving Fund), Transition Accounts, and Inherited Private Market assets. A significant amount of the Trust Fund assets are held in separate accounts at PBGC’s primary custodian, State Street Bank & Trust (SSB).

· Global Public Equity: There are sixteen investment mandates, of which two are separate accounts and the remaining fourteen are commingled funds. Five of the commingled funds are actively managed while the remaining nine are passively managed. The Global Public Equity portfolio encompasses US Publicly Stock, US Public REITs, International Public Stock, as well as derivatives and foreign exchange (FX).

· Fixed Income: There are twenty nine separate Fixed Income mandates, of which three are commingled funds and the remaining twenty six are separate accounts. The three commingled funds are passively managed while all twenty six separate accounts are actively managed. The Fixed Income portfolio encompasses the Revolving Fund (Treasuries, TIPS), Long Duration, Core, High Yield, Developed Markets, Emerging Markets, as well as derivatives and FX.

· Cash: There are two primary cash accounts, one in the Revolving Fund and the other in the Trust Fund.

· Inherited Private Market Assets: Inherited Private Market assets primarily consist of private equity and private real estate and include a diversified mix of partnerships and direct holdings. The books of record for these assets are held at two major custodians. There are approximately 750 separate Private Market investments of various structures that include, but are not limited to, limited partnerships, direct holdings, and closed end funds. The PBGC does not have an active alternatives program (e.g., the PBGC does not commit new funds to Private Market investments).

· Cash Collateral Funds – Securities Lending: There is one cash collateral fund managed by SSB for the PBGC and three cash collateral funds managed by BlackRock Institutional Trust Company, N.A. (BlackRock). Each collateral fund is generally invested in fixed income securities.

· Current Equity, Fixed Income and Private Market Index Benchmarks: The Program utilizes benchmark data provided by Russell, S&P, Dow Jones, MSCI, MSCI GICS, Barclays Capital, JP Morgan, NYSE, and NASDAQ. The PBGC currently has separate license agreements with MSCI, MSCI GICS and Russell.

· Custodians: The U.S. Bureau of Public Debt is the custodian for the Revolving Funds. The custodian for the majority of Trust Fund assets is SSB. PBGC Contractors serve as the book of record for investment monitoring purposes of the Private Market portfolios.

· Pricing Sources: The PBGC outsources pricing to its custodians. Well recognized and established pricing providers (typically separate entities from the custodians) are utilized for the majority of assets in the Program.

· Number of Managers: There are approximately nineteen (19) separate investment firms managing or monitoring assets on behalf of the PBGC.

· Overall Portfolio: The portfolio is currently invested with approximately 70% of its assets in fixed income securities and the majority of the balance of the portfolio is invested in equities and other non-fixed income assets. The PBGC has two private equity managers that monitor/manage the private investments that PBGC has inherited from terminated pension plans. In addition, the PBGC also has a special situations manager to assist in managing and liquidating special assets.

3. SCOPE: The purpose of the scope section is to establish the “boundaries” of the contract, including size and magnitude. Include objectives, performance areas, project parameters and limitations and constraints.

3.1. Objective:

To provide an investment advisory service solution to PBGC CID, including ongoing advice, analysis and support on investment matters in compliance with the current PBGC current Investment Policy Statement (IPS) dated 2015.

3.2. Performance Areas:List the performance areas to be worked on this contract. The objectives in the SOO should be directly traceable to performance areas. The performance areas for this effort are listed for you below:

3.2.1. Performance area 1 – Investment Policy

3.2.2. Performance area 2 – Asset Allocation

3.2.3. Performance area 3 – Asset Liability Analyses

3.2.4. Performance area 4 – Investment Structure

3.2.5. Performance area 5 – Investment Manager Selections and Evaluation

3.2.6. Performance area 6 – Asset Transfer

3.2.7. Performance area 7 – Procurement

3.2.8. Performance area 8 – Special Studies and Advice

3.2.9. Performance area 9 – Communications

3.2.10. Performance area 10 – Investment Performance Measurement

3.3. Limitations and Constraints:List any limitations or constraints. At a minimum include limitations and constraints identified in the SOO that you have not described elsewhere in the PWS.

3.3.1. …

3.3.2. …

3.3.3. ….

4. APPLICABLE DOCUMENTS: Required and informational publications are provided for you from the SOO (Section 6.3) below. At a minimum, include the following language and publications table in your PWS:

The documents that apply to this SOO are listed below. These documents have been designated mandatory or informational. The contractor shall follow these publications listed as mandatory, along with applicable Federal, State and local laws. The contractor must be guided by those documents listed as informational, along with industry standards, rules and regulations, to the extent necessary to perform the work described in the SOO and the Offeror’s proposed PWS.

Applicable Publications

http://csrc.nist.gov/publications/fips

I

I

I

I

M=Mandatory, I=Informational

5. PERFORMANCE REQUIREMENTS:Describe the contractual work requirements (tasks) as gleaned from the Government’s SOO and as particular to your technical solution. Include the tasks identified in the SOO at a minimum. To develop performance oriented task descriptions for these tasks, and tasks particular to your technical solution, consider the following when creating and submitting a PWS as part of your proposal:

· Divide the work into tasks and subtasks.

· Describe tasks in terms of required outputs (number the tasks sequentially , e.g., Task 1 – Title of Task and description, Task 2 – Title of performance area, followed by description paragraph(s)

· Define requirements as precisely as possible as to “what” is to be accomplished (not “how”)

· Describe trigger to initiate work (per task)

· Describe all work elements (data requirements, phasing requirements, documentation requirements, reporting requirements, timing, maintainability, testing, installation, training, transition, etc.)

· Describe pertinent previous efforts (per task)

· Describe known risks (per task)

· Ensure consistency of terminology (shall instead of will, business days or Calendar days consistently)

· Describe project phasing and contractor approval to move from phase to phase

· When government approval or acceptance is required, describe the review and approval process and the time allotted for the review and the resulting revision process (per task)

· Describe the contract management requirements (reporting tasks) Include the purpose, areas to cover, and the frequency of submission

· Identify government responsibilities and interfaces with 3rd parties (per task) Examples structure is provided for you below. For example…….

5.1. Performance Area 1-Investment Policy:

5.1.1. Task 1 – Provide _____________ , _____________ and __________...

5.1.1.1. Contractors must initiate the Policy Review upon…

5.1.1.2. The Contractor shall provide____ within ___ business days that includes____ , ____ and ____.

5.1.2. Task 2 – Provide procurement support.

5.1.2.1. …

5.1.2.2. …

5.1.3. Task 3 – Provide Senior Leadership Briefings.

5.1.3.1. …

5.1.3.2. …

5.2. Performance Area 2 – Asset Allocation

5.2.1. Task 1 – Provide ...

5.2.1.1. …

5.2.1.2. …

5.2.2. Task 2 – Provide …

5.2.2.1. …

5.2.2.2. …

5.2.2.3. …(Offeror can propose as many tasks and sub-tasks as it feels are appropriate)

6. PERFORMANCE STANDARDS: The Performance Requirements Summary (PRS) Table (Table 1) in the QASP captures the details of the required performance and acceptable quality levels (AQLs) for each performance area. Performance standards are not required for every task and subtask. Only performance measures that the government will use to monitor each performance area on contract are included in the PRS. Provide any recommended additional performance measures. The language below is to be included in your PWS at a minimum.

6.1. Performance standards are contained in the Performance Requirement Summary Table (PRS) in the Quality Assurance Surveillance Plan (QASP) at the end of this document. Absence of any contract requirement from the PRS does 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.”

6.2. The Contractor shall adhere to the following performance standards on all deliverables:

· Accuracy - Deliverables shall be accurate in presentation, technical content, and adherence to generally accepted elements of style.

· Clarity - Deliverables shall be clear and concise. All Charts and Tables shall be clearly labeled, easy to understand and relevant to the supporting narrative.

· Consistency to Requirements - All work products and deliverables must satisfy the requirements of the PWS.

· Fitness for Intended Purpose - Deliverables shall be fit for PBGC’s intended purpose under the PWS.

· Editable - All text, chart, and table files shall be editable by PBGC.

· Format - Deliverables shall be submitted in the media format defined in the PWS.

· Timeliness - Deliverables shall be submitted on or before the due date specified per the PWS.

7. DELIVERABLES AND DELIVERY SCHEDULE: List all outputs/outcomes with specific due dates or time frames. Include task, deliverable, due date, media type, quantity, and delivery point. Deliverables from the SOO (Section 6.2) have been brought over to this template for examples and are not considered a complete list from the SOO. At a minimum include deliverables identified by you in the SOO and any additional deliverables particular to your proposed service solution. The below matrix is an example and you are to create your service proposal version. Include any information in the matrix that you glean from SOO or your pre-award due diligence activities. Ensure you do not include tasks as deliverables.

7.1. Deliverables and Delivery Schedule

Provide advice, analysis and recommendations on PBGC’s investment program and policies.

To Be Determined (TBD)

Approximately every one to three years

Provide detailed analyses and periodic reports in accordance with the Special Studies and Advice section to assist the PBGC in making long term asset allocation decisions.

TBD

Approximately every one to three years

Develop and maintain a model to evaluate how alternative investment strategies might impact the future financial situation of the PBGC. Provide ongoing advice and analysis.

TBD

Approximately every one to three years

Provide detailed analysis and summary report related to the structure of PBGC's investment managers.

Provide detailed analysis of PBGC’s current and prospective investment managers. Continuously monitor those managers, and provide PBGC with analysis and recommendations.

Provide advice, analysis, reports and assistance on the most efficient means of effecting the transfer of assets. Assist in marketing illiquid assets and the actual transfer of assets from newly terminated pension plans.

TBD

Anticipated to be infrequent

Serve as a technical advisor to any Technical Evaluation Panel.

TBD

Dependent on, among other things, contract expiration and new mandates.

TBD

Multiple times per year.

Special presentations at PBGC Advisory committee and Board of Directors.

TBD

Typically, at a minimum at the majority of Advisory Committee meetings (approximately 6 per year).

Quarterly performance reports detailing PBGC's investment performance and the performance of its investment managers.

By the first business day of the second month following the end of each calendar quarter unless an extension is requested in writing and approved in advance in writing by the COR.

Monthly performance reports detailing PBGC's investment performance and the performance of its investment managers.

Monthly performance reports within 15 business days after each month end.

Electronic Document

COR

Weekly custom performance reports that include weekly, monthly, calendar year-to-date, and fiscal year-to-date index returns; and information on Treasury yields and foreign exchange rates.

First business day of each week.

· Additional requests for data and commentary a few times each quarter

Electronic Document

COR

Assist PBGC with the preparation and collection of investment data for PBGC annual reports.

7.2. Deliverable Review Period:

The Government (through the COR) will have up to 10 business days to review and accept each deliverable. The COR will acknowledge formal acceptance in writing, via email. If changes are required, the government (through the COR) will request said changes in writing and the contractor will have up to 10 business days to make requested changes. The COR will confirm acceptance of final deliverable in writing, via email.

NOTE: All stated days for product delivery and government review, unless denoted otherwise, are stated in business days.

8. GOVERNMENT-FURNISHED EQUIPMENT AND INFORMATION (GFE/GFI):Identify the Government-Furnished equipment and information, if any, to be provided to the contractor, and identify any limitations of its use. If there is no GFE or GFI to be provided by the Government, this section may be eliminated. As of the release of this solicitation, the Government does not anticipate any GFE/GFI for this contract beyond the onsite office equipment provided to all PBGC contractors. If your due diligence or service solution proposes any additional GFE/GFI please include this table.

9. PLACE OF PERFORMANCE: Service is required at the PBGC site. Specify the contractor site, in addition to PBGC if your service solution includes service performance at a Contractor site, in addition to PBGC. Describe any local or long distance travel the contractor will conduct to perform or that no travel is anticipated. For example:

9.1. Performance of this contract shall be at PBGC on 1200 K Street NW, Washington DC 20005.

9.2. Additionally, work shall be performed at ________________.

9.3. Travel ___ anticipated ________times per_________to__________from___________.

10. PERIOD OF PERFORMANCE:

The period of performance shall be for one (1) year base period and four (4) one (1) year option periods.

11. QUALITY ASSURANCE: The Government will evaluate the contractor’s performance on this contract. See the government’s Quality Assurance Surveillance Plan (QASP) below:

Government Quality Assurance Surveillance Plan (QASP)

1. Title: Investment Consulting Services, QASP.

2. Purpose: This QASP specifically corresponds to the PWS Section 5, Performance Requirement (Tasks). Section 5 of the PWS discusses what work is to be performed and to what outputs or outcomes the Government expects and to what specification. The QASP provides a surveillance plan sufficient to ensure acceptable performance.

3. Objective: The objective of this Surveillance Plan is to evaluate how the Investment Consulting Services Contract is being performed by the Contractor in support of the Pension Benefit Guaranty Corporation at 1200 K Street NW, Washington DC 20005.

4. Surveillance Method by Performance Area:Provide a narrative in this section giving summary QASP information about each service area specified in the PWS and what outputs are to be surveilled by the Government per service area. Do not repeat the technical specification from the PWS for each task and subtask. Focus on narrating what actions the Government will take to carry out quality assurance on the service outputs or deliverables, to include at what frequency and any required calculations to be used and how this will ensure contract performance. You may order these outputs or deliverables in any sequence, for example: in order of tasks in Section 5 of the PWS; in order of the Deliverables in the Deliverable Table of the PWS; in order by delivery date; in order by frequency of delivery. Then, summarize the surveillance in the PRS Table. See below example using the 100% inspection surveillance technique:

4.1. Surveillance described:

4.1.1. The COR, or other member of CID staff, shall perform a 100% inspection of each written deliverable in the PWS, Section 5 and as summarized in the Performance Requirement Summary Table (PRS).

4.1.2. The COR will enter each inspection result on an Evaluation Table.

4.2. Reporting Results:

4.2.1. Thirty business days after the end of each Fiscal Quarter the COR will prepare a written report for the Contracting Officer that summarizes the overall results of the quality assurance surveillance of the Contractor’s performance. The Evaluation Table will be included with this report and document the Contractor’s ongoing performance on contract.

4.2.2. A copy will be maintained in the COR file.

4.2.3. Unsatisfactory Performance:

Unsatisfactory contract performance, performance not meeting the AQL will be reported by the COR immediately to the Administrative Contracting Officer (ACO).

4.3. Performance Requirement Summary:

NOTE: See Performance Requirement Summary (PRS) Table below:Fill out the Performance Requirement Summary Table based on the above narrative, as follows:

No. – Number the PRS rows sequentially Task – List the corresponding PWS paragraph from the Task section.

Output or Deliverable – Give a descriptive name of the output or deliverable, like “monthly progress report”, help tickets, Software iteration, etc.

Performance Standard – Using objective and measurable terms, describe the standard of quality you expect the deliverable to adhere to. For example, restores desktop computer service within 4 hours of receiving trouble report during business hours.

Acceptable Quality Level (AQL) – State what the acceptable quality level is to meet the performance standard. For example: Meets performance standard 95% of the time.

Surveillance Method Used – State how the government will inspect the deliverable or output to determine if the performance standard is met. Methods include 100% inspection (often used for written products), random sampling, scheduled or unscheduled observations, customer feedback (usually used in combination with other methods and not as primary method, etc. Example: 100% Inspection Frequency – State how often inspections will take place.

Performance Requirement Summary (PRS)

Deliverable Performance Standard Acceptable Quality Level (AQL) Surveillance Method Used

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2.

3.