Contract Auditor SOW Northern District Ilinois-CFFS.doc

SEQ CHAPTER \h \r 1 ADVANCE \x 252Executive Office for United States Attorneys

Acquisitions Staff

Bicentennial Building

600 E Street, NW, Suite 2400

ADVANCE \x 252Washington, DC 20530

(202) 616-6425 FAX (202) 616-6651

April 28, 2008 Reference:

Investigational Auditor Services Subject:

Request for Proposal

Solicitation Number RFP-EOA24-8-0097

100% Small Business Set-Aside

Dear Offeror:

The Executive Office for United States of Attorney’s (EOUSA) on behalf of the United States Attorney’s Office, Northern District of Illinois invites contractors to submit a proposal for services described in the attached statement of work, under the authority of Part 12 of the Federal Acquisition Regulation.

Enclosed you will find a Statement of Work for Investigational Auditor Services in the office of Chicago, IL. Please submit your price and technical proposal by Wednesday, May 28, 2008, 2:00 pm (EST). This RFP in no way obligates the U.S. Government to award a contract, nor does it commit the U.S. Government to pay any cost incurred in preparing and submitting your proposal.

The selection process will consist of a Best Value source selection based on key personnel, organizational past performance, organizational experience, and price. Under a Best Value source selection, non-price evaluation factors, when combined are significantly more important than price. However, EOUSA will not select an offeror for award on the basis of a superior capability without consideration of the amount of its price. The Contractor must provide the following information:

(1) Provide resumes of prospective personnel. The personnel will be the person expected to perform the tasks identified in the Scope of Work. The resume should reflect the personnel’s security clearance level, training and certifications, if any.

(2) Provide up to three (3) references for commensurate projects that are in progress or were completed within the last three (3) years. If a Contractor will be using a subcontractor, up to three (3) references must be provided for the subcontractor as well. References may be from commercial and federal/state Government contracts; however, similar support services performed for Federal Government customers generally will be considered more relevant than those done for commercial or state government customers. The Government reserves the right to check other references not provided by the Contractor. The following information is required for each reference:

(A) Customer name and address

(B) Point of contact (name, telephone number) for contractual/administrative matters and technical performance.

(C) Period of contract performance

(D) Description of work performed

(3) A summary of the Contractor’s experience demonstrating the contractor’s knowledge and ability to perform the duties and tasks reflected in the Scope of Work. This summary shall not exceed two (2) pages.

(4) Price quote as reflected in Section B.

This procurement is a 100% Small Business Set Aside. The NAICS code for this solicitation is 541211. In order to be considered a small business under this NAICS code, your average annual receipts must not exceed $6.5 million.

The Government estimated value of this contract is $347,000.00 for one base year and two 12 month option years. The precise period of performance will be determined at the time of award.

Proposals submitted in response to this RFP will be received in the following manner: via regular mail (please allow additional time for security screening), hand carried, and email. Proposal may also be forwarded by Courier or Overnight Mail Service to the attention of the undersigned at EOUSA.

Hand-Carried and Mailing Address:

Executive Office for the United States Attorney’s Office

600 E Street, NW, Suite 2400

Washington, DC 20530

Attention: Erica Bigelow Email Address: Erica.Bigelow@usdoj.gov Proposals that are faxed will not be accepted. Proposals must be received by the closing date and time stated above.

Please refer any questions concerning this request to Erica Bigelow at (202) 305-9279 or by email at Erica.Bigelow@usdoj.gov Attachments

Section B, Supplies/Service and Prices

Section C, Description/Specifications/Statement of Work

Section D, Preservation, Packaging and Marking

Section E, Inspection and Acceptance

Section F, Deliveries or Performance

Section G, Contract Administration Data

Section H, Special Contract Requirements

Section I, Contract Clauses

Section J, List of Attachments

Section K, Representations, Certifications and Other Statements of Offerors

Section L, Instructions, Conditions and Notices to Offerors

Section M, Evaluation Factors for Award

SECTION B

SUPPLIES/SERVICES AND PRICES

B.1 General

(a) The contractor shall provide Investigational Auditor Services for the United States Attorney’s Office (USAO), Northern District of Illinois.

(b) The contract term includes a base year and four option years as shown in the table below.

Contract Term

Base Year To be determined at the time of award

Option Year 1 To be determined at the time of award

Option Year 2 To be determined at the time of award

(c) The contract will be a Commercial Item Labor Hour contract with fixed unit prices.

B.2 Pricing

(a) All unit prices are fixed unit prices that include all costs (including, but not limited to: labor, fringe benefits, overhead, G&A, and profit) necessary to provide the services required in the SOW.

Base Year

Price Extended Price

Option Year One

Price Extended Price

Option Year Two

Price Extended Price

SECTION C

DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 Background

The Department of Justice, United States Attorney’s Office (USAO), Northern District of Illinois covers 18 northern Illinois counties across the top tier of the state, with a population of approximately nine million people. The district also has a branch office in Rockford Illinois servicing nine counties. The USAO is responsible for the prosecution of criminal cases brought by the Federal Government, the prosecution and defense of civil cases in which the United States is a party and the collection of debts owed the Federal government which are administratively uncollectible.

C.2 SEQ CHAPTER \h \r 1Statement of Worktc "2.1 Scope " \l 2 The Contractor shall provide all labor (including supervision), material, equipment, facilities, and whatever else may be needed, except as otherwise provided herein, to provide investigational auditor services in accordance with the Statement of Work set forth herein. The U.S. Attorney's Office will be referred to as "USAO" and the provider of recording services will be referred to as "Contractor."

The USAO, Northern District of Illinois has a requirement for an investigational auditor. The services are required in support of the USAO’s Complex Financial Fraud Section. The Contractor shall provide professional auditing, accounting, financial, statistical, and economic analysis, in support of investigations including trial preparation and presentation of findings before the US District Court. Cases involve extensive problem definition, planning and coordination with Assistant United States Attorneys (AUSA’s); analyzing and auditing a large variety of financial records and systems; and reconstructing partial or inadequate records of financial transactions. The individual will both independently, or as a group leader, plan and conduct audits of a complex and difficult nature to assist prosecutors in examining complex financial transactions including those involving bank fraud, corporate fraud, securities and commodities fraud and international offshore transactions. The assigned tasks will vary in scope and complexity, but characteristically involve the most difficult and complex financial issues administered by the USAO. The Contractor shall be able to assist in the investigation of financial activity that often involves complex, interrelated transactions and operational entities. The Contractor must have the capability to analyze financial systems and transactions in complex organizational dealings and conducts analysis to determine whether there have been violations of Federal Statutes warranting further investigations.

C.3 Specific Duties and Tasks C.3.1 The contractor shall independently conduct and carry out to completion financial investigations involving alleged federal criminal violations primarily in the area of corporate fraud and securities and commodities fraud. Further, the investigator shall investigate and coordinate the seizure of various assets acquired through criminal activity under the direction of the AUSA.

C.3.2 The Contractor shall conducts audit and financial investigations, typically involving one or more persons or entities in various professions and positions; or financial entities having substantial business operations with a large number of activities, operations and transactions whose interrelationships are difficult to establish.

C.3.3 The Contractor shall conduct financial accounting examination of books, records, computer tapes, data processing material, and activities of individuals and firms involved in financial matters subject to USAO investigation. In the absence of records, the Contractor with Government assistance obtains detailed financial information from other sources to include interview of business associates, firm employees, and competitors, as well as examination of county and state records. The Contractor maybe required to reconstruct partial or inadequate records to the extent necessary for the purpose of investigation.

C.3.4 The Contractor shall obtain evidence and documentation through the interrogation of employees, business people, and other persons throughout the area who have information relative to pertinent financial operations.

C.3.5 The Contractor shall prepare concise and accurate audit reports involving assembling, correlating, and analyzing the facts obtained from analysis and investigation of financial matters, and prepares detailed charts, summaries and schedules as necessary.

C.3.6 The Contractor shall assist and discuss cases with USAO personnel and recommend further courses of action such as closing of the case, further investigation, and institution of administrative, civil or criminal proceedings.

C.3.7 The Contractor shall participate in conferences and interviews with members, officers, directors, and representatives of financial institutions, law enforcement agents of the city, county, state, and federal governments, Certified Accountants, and attorneys.

C.3.8 The Contractor shall develop, coordinate, and issue technical audit guidelines and instructions applicable to financial audits and investigations performed by the USAO. Guidelines developed include consideration of applicable criminal statutes, the type and subject-matter of cases typically investigated by the USAO, and accepted professional audit and accounting guidelines.

C.4 Deliverables C.4.1 The Contractor shall provide the Government with an audit or investigation report upon the Governments request. This report shall include significant findings and conclusions, recommendations for additional investigative follow-up and an assessment of the evidence obtained. (C.3.4) (C.3.5)

C.4.2 Upon the Government request, the Contractor shall provide written course of actions and recommendations as a result of audit or investigative efforts conducted by the contractor. (C.3.6) C.4.3 Develop and issue technical audit guidelines and instructions applicable to financial auditing. (C.3.8)

C.5 Government Furnished Property

The COTR will provide the Contractor with government owned property, facility, and equipment to perform the requirements of the contract. The COTR will furnish a workspace, appropriate office furnishings, computer hardware and software, telephone, and other materials appropriate for on-site performance. Limited government supplies will be available to the Contractor for use in the performance of the requirements of this contract. The Contractor shall acquire all other materials and repair parts necessary to perform the requirements of this contract. The COTR will provide the Contractor with copies of documents containing the standards, procedures, and guidelines as required.

C.6 Key Personnel

The Contractor shall provide personnel with the knowledge, skills and abilities to perform the duties as specified herein. The contract employee shall be proficient in various computer software programs (e.g., Word, Power Point, Excel, Outlook and Word Perfect). The contract employee shall possess experience which demonstrates skills in entering data into and retrieving data from a database, following up on requests for information, report preparation, problem-solving, setting priorities and meeting deadlines and communicating with officials and high-level employees within and outside of the organization.

SECTION D

PRESERVATION, PACKAGING AND MARKING

Not Applicable.

SECTION E

INSPECTION AND ACCEPTANCE

E.1 Notice Listing Contract Clauses Incorporated by Reference

The following contract clauses pertinent to this section are hereby incorporated by reference (by Citation Number, Title, and Date) in accordance with the clause at FAR "52.252-2 CLAUSES INCORPORATED BY REFERENCE" in Section I of this contract. See FAR 52.252-2 for an internet address (if specified) for electronic access to the full text of a clause.

NUMBER TITLE DATE

FEDERAL ACQUISITION REGULATION (48 CFR Chapter 1)

52.246-4

INSPECTION OF SERVICES--FIXED-PRICE

AUG 1996

52.246-6

INSPECTION--TIME-AND-MATERIALS AND

MAY 2001

LABOR-HOUR

SECTION F

DELIVERIES OR PERFORMANCE

F.1 Period of Performance Contract Term

Base Year To be determined at the time of award

Option Year 1 To be determined at the time of award

Option Year 2 To be determined at the time of award

F.2 Place of Performance

The Contractors principal place of performance is the United States Attorney’s Office, 219 South Dearborn Street, Chicago, IL. The Contractor, as directed by the COTR may be required to provide services at other district branches or other directed locations. Access to the work place will be from 8:00AM to 5:30PM, Wednesday through Friday, except on federal holidays.

F.3 Performance Standards

Evaluation of the Contractor's overall performance in accordance with the performance standards set forth in Section C, Tangible Results and Deliverables, will be conducted jointly by the COTR and the Contracting Officer, and shall form the basis of the Contractor's permanent performance record with regard to this contract.

SECTION G

CONTRACT ADMINISTRATION DATA

G.1 Contracting Officer’s Technical Representative (COTR) Upon award, a Contracting Officer's Technical Representative (COTR) will be designated to coordinate the technical aspects of this contract and inspect items/services furnished hereunder; however, the COTR shall not be authorized to change any terms and conditions of the resultant contract, including price. The COTR is authorized to certify (but not to reject or deny) invoices for payment in accordance with enclosed payment terms. The authority to reject or deny performance and associated invoice payment is expressly reserved for the Contracting Officer.

The COTR for this order is:

(To be determined at time of award)

G.2 Contracting Officer

The Contracting Officer for this order is:

(To be determined at time of award)

Executive Office for US Attorneys

Acquisitions Staff

600 E. Street, NW, Suite 2400

Washington, DC 20530

Written communications shall make reference to the contract number and shall be mailed to the above address.

G.3 SEQ CHAPTER \h \r 1Payment/Invoice Requirements Payment for actual work and services rendered under this contract will be made on a monthly basis. To constitute a proper invoice, the invoice must be prepared in accordance with FAR 52.212-4(g) in Section I. In addition, the following information must appear on the invoice:

1. Date service was performed

2. Location service was performed

3. Time in Session/Conference and rate

4. Description and rate for research time, preparation time and other services

5. Work Order Number issued by the USAO for the services provided.

Invoices shall be submitted to the COTR at the address shown in Section G. The COTR will certify the invoice for payment and forward the invoice to the Finance Office for payment with a copy to the Contracting Officer. All follow-up invoices shall be marked “Duplicate of Original.” Contractor questions regarding payment information or check identification should be directed to DOJ Vendor Assistance Hotline on (202) 616-6260.

G.4 Accounting and Appropriation Data To be determined at the time of award.

SECTION H

SPECIAL CONTRACT REQUIREMENTS

SEQ CHAPTER \h \r 1H.1 Required Security Investigation

(a) The Contractor shall assure that all persons to be utilized in the performance of this contract submit to the Government the following Government security investigation forms prior to assignment hereunder. The intent and purpose of the investigation are to preclude the assignment of any individual who poses a threat to the Government or successful contract completion due to past unlawful or inappropriate behavior. The contract employee must furnish all required data in the form and format determined by the United States Attorney (USA) or his/her duly authorized representative. The Contracting Officer will notify the Contractor in writing, with a concurrent copy to the Contracting Officer Technical Representative (COTR), of the results of the investigation.

(b) Risk Level

In general, services performed by Contractor personnel may fall within three (3) risk categories as described below:

High Risk Are those sensitive positions that have the potential for exceptionally serious impact involving duties especially critical to the DOJ or a program mission with broad scope of policy or program authority, such as:

· Policy development or implementation

· Higher-level management assignment

· Independent spokespersons or non-management positions with authority for independent action,

· Significant fiduciary and procurement authority and responsibilities, and

IT-computer positions responsible for the planning, and implementation of a computer security program; the direction, planning and design of a computer system, including the hardware and software; or, accessing a system during the operation or maintenance in such a way, with relatively High Risk to cause grave damage or realizing significant personal gain. (Refer to Appendix III, OMB Circular A-130, “Management of Federal Information Resources, “ for those computer positions that are High Risk at:

http://www.whitehouse.gov/OMB/circulars/a130/a130trans4.html Moderate Risk - Are those sensitive positions that have the potential for moderate to serious impact involving duties very important to the DOJ or program mission with significant program responsibilities and delivery of client services to the public, such as:

· Assistance to policy development and implementation,

· Mid-level management assignments,

· Non-management positions with authority for independent or semi-independent action,

· Delivery of service positions that demand public confidence or trust,

· IT-computer positions of a lesser degree of risk that required for High Risk positions (Refer to Appendix III, OMB Circular A-130, “Management of Federal Information Resources, “for those computer positions that are other than High Risk.).

Low Risk (Non-sensitive) - Are those non-sensitive positions that do not fall into any of the above categories and include those positions with potential for impact involving duties of limited relation to the DOJ mission.

(c) Types and Numbers of Background Investigations

Work performed under this CONTRACT will fall within one or more of the risk categories defined paragraph 3.2.2(b). As a result, the Contractor's personnel must undergo a background investigation commensurate with the assessed risk category. In addition, before the issuance of any calls for additional personnel, the COTR, the exact number and types of background investigations required for all Contractor positions hired under this CONTRACT.

The Contractor will not be permitted to commence performance under the CONTRACT until a sufficient number of its personnel, as determined by the COTR received requisite background investigations or approved pre-appointment background investigation waivers.

During the life of the CONTRACT, the Contractor shall ensure that no Contractor or Subcontractor employee commences performance hereunder prior to receipt of written authorization from the Contracting Officer or the COTR.

(d) Pre-Appointment Background Investigations and Waivers

Background investigations must be conducted and favorably adjudicated for each contract employee prior to commencing work on this task order. However, where programmatic needs do not permit the Government to wait for completion of the entire background investigation, the SPM, in consultation with the COTR, can grant a pre-appointment background investigation waiver. The extent of the background investigation and/or the information needed to waive the background investigation will vary depending upon the Risk Category associated with each position. A waiver will be revoked if the resulting investigation uncovers derogatory information that cannot be resolved in the contract employee’s favor. When derogatory information has been discovered that cannot be resolved in the contract employee’s favor, the employee should be removed from the contract. Minimum pre-appointment investigative requirements are listed below.

High Risk Positions. The background investigation shall be an LBI (Limited Background Investigation) consisting of a personal subject interview, NAC, credit history check, written inquiries and record searches covering 5 years, and personal interviews covering specific areas during the most recent 3 years. Pre-appointment waivers may be granted following a successful National Crime Information Center (NCIC) check, vouchering of previous 2 employers and a favorable review of forms submitted.

Moderate Risk Positions. The background investigation shall be a NACI (National Agency Check and Inquiries) consisting of a NAC, written inquiries, and record searches covering specific areas of a subject’s background during the past 5 years. Pre-appointment waivers may be granted following a favorable NCIC check and a favorable review of forms submitted.

Low Risk Positions. The background investigation shall be a Federal Bureau of Investigation Name and Fingerprint check. Pre-appointment waivers may be granted following a favorable NCIC check.

(e) The following forms and submission dates shall be adhered to by the Contractor for each type of investigation listed below. The forms shall be submitted to the designated COTR or point of contact within seven days after receipt of the forms.

(f) Procedures for Pre-Screening Applicants and Investigations

Contractor’s Responsibility - The Contractor must determine whether the conduct of the person being considered for assignment on this contract indicates a potential for behavior which would interfere with, prevent, or otherwise impact adversely on: 1) the position to be filled by applicant; 2) the performance of the duties and responsibilities of others on the CONTRACT or in the Government; or 3) the ability of the employing agency to effectively carry out its mandated responsibilities. If the Contractor determines that employing an applicant will not promote the efficiency of this CONTRACT, the applicant must be disqualified from assignment on the CONTRACT. In this regard, the Contractor shall be responsible for performing the following pre-screening and investigative duties for all persons proposed for work under this CONTRACT:

1. Furnish to each proposed Contractor employee the forms described in Section 5 and ensure that adequate instructions for completing the forms are provided to each applicant.

2. Ensure that applicants obtain two (2) complete sets of their fingerprints on the prescribed Form DD-258 from an organization qualified to take fingerprints.

3. Collect completed forms from each applicant and review all forms for completeness and correctness. Return any incomplete or incorrect form(s) to applicant(s) to be corrected and re-submitted.

4. Submit completed forms to the COTR by no later than seven (7) calendar days after receipt of the blank forms.

(g) Contractor Status under the National Industrial Security Program (NISP)

Companies participating in the National Security Program (NISP) are required the meet certain federal standards for the investigation of facilities and employees. If the Contractor is a registered in the NISP, investigation initiated by the Department may not be required. The COTR should determine if the Contractor is registered in the NISP, then the facility clearance level held by the Contractor, and if individuals selected to work for the Department were previously investigated in accordance with NISP procedures. If an individual selected to work for the Department was previously investigated within the last 12 months, the COTR will obtain a copy of the Letter of Consent (LOC) issued by the Defense Industrial Security Clearance Office (DISCO).

(h) Factors for Suitability Determinations. The Department of Justice uses several basic factors in making suitability determinations for contract employees. This information is intended as a guide for the Contractor during their screening process and is not inclusive of all disqualifying situations.

Disqualifying Factors The following conduct factors, as disclosed on the SF-85P and the SF-85P-S, in a written statement or personal interview with the applicant, or established during a reference check may disqualify an applicant from employment on a DOJ contract. Contractors should be aware such individuals may not be able to work for the Department under the CONTRACT.

Criminal Behavior (e.g., a conviction resulting from a serious felony -- murder, rape, armed robbery, etc. -- regardless of when the conviction occurred; a felony conviction, notwithstanding the severity of the crime, within the previous seven (7) years; a period of incarceration as a result of a felony conviction within the previous seven (7) years; or pending indictments or criminal charges)

Infamous or disgraceful conduct (e.g., sexual behavior of a criminal nature, whether or not the individual has been prosecuted, or bizarre behavior indicating depravity)

Improper or illegal involvement with drugs within the past 7 years.

Current and continuing alcohol abuse

Intentional false statement, deception, fraud in appointment (e.g., altering the condition of discharge on military discharge documents, altering college transcripts, falsely completing the SF-85P or SF-85P-S, etc.)

Financial considerations (e.g., deceptive or illegal financial practices; continuing inability or unwillingness to satisfy debts; financial problems linked to such dependencies on alcohol, drugs, gambling, etc.)

Non-U.S. Citizenship (e.g. non-legal residents; recent legal residents, residing in the U.S. less than four years; non-U.S. citizens maintaining citizenship in "hostile" countries)

Questionable Allegiance to the United States (e.g., membership in organizations or association with individuals advocating violence or overthrow of the U.S. government or involvement in any act of sabotage, espionage, treason, terrorism, or sedition)

Emotional, mental, and personality disorders (when a credentialed mental health professional acceptable to the government has determined that the individual has a condition or treatment that may indicate a defect in judgment, reliability or stability or could physically harm him/herself or others)

Previous security violations (e.g., unauthorized disclosure of classified information or deliberate or multiple violations)

Misuse of information technology systems (e.g. illegal or unauthorized entry into or illegal, unauthorized, or improper use of an information technology system)

Foreign Influence (e.g. when an individual’s immediate family, including co-habitants and other who the individual is bound by close ties or affection, is not a U.S. citizen and may be subject to coercion and/or duress)

Foreign Preference (e.g. and individual’s behavior indicates a preference for a foreign country over the United States)

(i) Mitigating Factors When questionable conduct is disclosed, the following factors should be considered as to whether or not disqualification of an individual for work in the Department is warranted. The decision is made on a case-by-case basis, and is subject to review by the assigned Security Officer, in consultation with the COTR.

1. The nature, extent and seriousness of the conduct.

2. The circumstances surrounding the conduct, to include knowledgeable participation.

3. The frequency and recency of the conduct.

4. The individual’s age and maturity at the time of the conduct.

5. The voluntaries of participation.

6. The presence or absence of rehabilitation, resolution, and other pertinent behavioral changes.

7. The motivation for the conduct.

8. The potential for pressure, coercion, exploitation or duress.

9. The likelihood of continuation or recurrence.

(j) Given the above guidelines for determining suitability, the Contractor should be able to determine, without DOJ involvement, which applicants are unsuitable for employment under this contract. However, additional questions and requests for information may result from review of the security packages by DOJ personnel. In the event the Department or the contractor has reasonable cause to believe that an employee under the CONTRACT falls under any of the eleven mandatory disqualification factors listed above, the employee must be removed from this CONTRACT. In addition, all contract employees are expected to adhere to the Department's Standards of Conduct.

(k) The COTR will notify the Contractor of the results of background investigations as they are completed and adjudicated. The COTR will also notify the Contractor of any applicants who are found ineligible for employment under this contract so that the Contractor can immediately recruit and initiate paperwork to clear replacement applicants. If a contract employee is already business on the CONTRACT and is determined to be ineligible, he or she will be removed from the call order.

(l) The COTR will notify the Contracting Officer when a sufficient number of Contractor employees have received employment security approvals or pre-appointment waivers approvals. Upon receipt of this information and any other information, which may be required elsewhere in the CONTRACT, the Contracting Officer will issue the Contractor a Notice to Proceed, which permits the commencement of work under the call(s).

(m) The Contractor shall ensure no contract or subcontract employee commences performance hereunder prior to receipt of a written authorization from the Contracting Officer.

(n) The Contractor shall make every effort to preclude incurrence of costs by the Government for security investigations for replacement of employees, and in so doing shall ensure otherwise satisfactory and physically able employees assigned hereunder remain in contract performance for at least one year. The Contractor shall take all necessary steps to assure contract or subcontract personnel selected for assignment to this contract are professionally qualified and personally reliable, of reputable background and sound character, and meet all other requirements stipulated herein. The fact the Government performs security investigations shall not in any manner relieve the Contractor of the responsibility to ensure that all personnel furnished are reliable and of reputable background and sound character. Should a security investigation conducted by the Government render ineligible a Contractor-furnished employee, the Contracting Officer will investigate the cause and determine whether the Contractor has abdicated his responsibility to make every effort to select reliable employees of reputable background and sound character. Should there be a need to replace a contract or subcontract employee due to non-performance, the Contracting Officer will determine whether the Contractor has abdicated his responsibilities to make every effort to select trained and experienced employees.

(o) Should the Contracting Officer determine the Contractor has failed to comply with the terms of paragraph above, the Contractor may be held momentarily responsible, at a minimum, for all reasonable and necessary costs incurred by the Government to (a) provide coverage (performance) through assignment of individuals employed by the Government or third parties in those cases where absence of contract personnel would cause either a security threat or DOJ program disruption, and (b) conduct security investigations in excess of those which would otherwise be required.

(p) Nothing in this clause shall require the Contractor to bear costs involved in the conduct of security investigations for replacement of an employee who becomes deceased or severely ill for a long period of time.

(q) Under no circumstances shall the Contractor fail to comply with the terms and conditions set forth herein without assuming liability for such failure as may be established pursuant to this clause. The rights and remedies conferred upon the Government by this clause are in addition to all and other rights and remedies specified elsewhere in this contract or established by law.

H.2 Contractor Employee Residency Requirement tc "3.4 Contractor Employee Residency Requirement " \l 2 All contractor employees assigned to this contract and business within the United States shall meet the DOJ Residency Requirement. The Residency Requirement states that, for three of the five years immediately prior to applying for a position, the individual must have: 1) resided in the United States; 2) worked for the United States overseas in a Federal or military capacity; or 3) be a dependent of a Federal or military employee serving overseas.

H.3 Prohibition on Use of Non-US Citizens tc "3.5 Prohibition on Use of Non-US Citizens " \l 2 The Department of Justice does not permit the use of Non-U.S. citizens in the performance of this contract or commitment for any position that involves access to or development of any DOJ IT system. By signing the contract or commitment document, or commencing work thereunder, the contractor agrees to this restriction. [In those instances where other non-IT requirements contained in the contract or commitment can be met by using Non-U.S. citizens, those requirements shall be clearly described].

H.4 Consent of Subcontractors The term subcontractor, as used in this contract, includes any contractor business on behalf of the prime contractor. Subcontracting is not restricted under this contract if, in the judgment of the government, it does not adversely affect the quality or delivery of the final product or service. The Contracting Officer shall have the right to restrict subcontracting if it is determined that such an action is in the best interest of the Government. Subcontractors named and described in the Contractor’s successful proposal are considered authorized to perform work under this contract without further written consent from the Contracting Officer, unless such consent is revoked by the Contracting Officer. If the prime contractor recommends additional subcontractors, the Contracting Officer must provide consent prior to the subcontractor performing any work or having access to any relevant information.

H.5 SEQ CHAPTER \h \r 1Security of Systems and Data, Including Personally Identifiable Data ( SEQ CHAPTER \h \r 1a) Systems Security

The work to be performed under this contract requires the handling of data that originated within the Department, data that the contractor manages or acquires for the Department, and/or data that is acquired in order to perform the contract and concerns Department programs or personnel.

For all systems handling such data, the contractor shall comply with all security requirements applicable to Department of Justice systems, including but not limited to all Executive Branch system security requirements (e.g., requirements imposed by OMB and NIST), DOJ IT Security Standards, and DOJ Order 2640.2E. The contractor shall provide DOJ access to and information regarding the contractor’s systems when requested by the Department in connection with its efforts to ensure compliance with all such security requirements, and shall otherwise cooperate with the Department in such efforts. DOJ access shall include independent validation testing of controls, system penetration testing by DOJ, FISMA data reviews, and access by the DOJ Office of the Inspector General for its reviews.

The use of contractor-owned laptops or other media storage devices to process or store data covered by this clause is prohibited until the contractor provides a letter to the contracting officer (CO) certifying the following requirements:

1. Laptops must employ encryption using a NIST Federal Information Processing Standard (FIPS) 140-2 approved product;

2. The contractor must develop and implement a process to ensure that security and other applications software is kept up-to-date;

3. Mobile computing devices will utilize anti-viral software and a host-based firewall mechanism.

4. The contractor shall log all computer-readable data extracts from databases holding sensitive information and verify each extract including sensitive data has been erased within 90 days or its use is still required. All DOJ information is sensitive information unless designated as non-sensitive by the Department.

5. Contractor-owned removable media, such as removable hard drives, flash drives, CDs, and floppy disks, containing DOJ data, shall not be removed from DOJ facilities unless encrypted using a NIST FIPS 140-2 approved product;

6. When no longer needed, all removable media and laptop hard drives shall be processed (sanitized, degaussed, or destroyed) in accordance with security requirements applicable to DOJ;

7. Contracting firms shall keep an accurate inventory of devices used on DOJ contracts;

8. Rules of behavior must be signed by users. These rules shall address at a minimum: authorized and official use; prohibition against unauthorized users; and protection of sensitive data and personally identifiable information;

9. All DOJ data will be removed from contractor-owned laptops upon termination of contractor work. This removal must be accomplished in accordance with DOJ IT Security Standard requirements. Certification of data removal will be performed by the contractor’s project manager and a letter confirming certification will be delivered to the CO within 15 days of termination of contractor work.

(b) Data Security

By acceptance of, or performance on, this contract, the contractor agrees that with respect to the data identified in paragraph a, in the event of any actual or suspected breach of such data (i.e., loss of control, compromise, unauthorized disclosure, access for an unauthorized purpose, or other unauthorized access, whether physical or electronic), the contractor will immediately (and in no event later than within one hour of discovery) report the breach to the DOJ CO and the contracting officer’s technical representative (COTR).

If the data breach occurs outside of regular business hours and/or neither the CO nor the COTR can be reached, the contractor shall call the DOJ Computer Emergency Readiness Team (DOJCERT) at 1-866-US4-CERT (1-866-874-2378) within one hour of discovery of the breach. The contractor shall also notify the CO as soon as possible during regular business hours.

(c) Personally Identifiable Information Notification Requirement

The contractor further certifies that it has a security policy in place that contains procedures to promptly notify any individual whose personally identifiable information (as defined by OMB) was, or is reasonably believed to have been, breached. Any notification shall be coordinated with the Department, and shall not proceed until the Department has made a determination that notification would not impede a law enforcement investigation or jeopardize national security. The method and content of any notification by the contractor shall be coordinated with, and be subject to the approval of, the Department. The contractor assumes full responsibility for taking corrective action consistent with the Department’s Data Breach Notification Procedures, which may include offering credit monitoring when appropriate.

(d) Pass-through of Security Requirements to Subcontractors

The requirements set forth in Paragraphs a through c, above, apply to all subcontractors who perform work in connection with this contract. For each subcontractor, the contractor must certify that it has required the subcontractor to adhere to all such requirements. Any breach by a subcontractor of any of the provisions set forth in this clause will be attributed to the contractor.

SECTION I

CONTRACT CLAUSES

I.1 52.252-2 Clauses Incorporated By Reference (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text may be accessed electronically at this Internet address, http://www.arnet.gov.

52.216-27 Single or Multiple Awards

(OCT 1995)

I.2 52.204-9 Personal Identity Verification of Contractor Personnel (JAN 2006)

(a) The Contractor shall comply with agency personal identity verification procedures identified in the contract that implement Homeland Security Presidential Directive-12 (HSPD-12), Office of Management and Budget (OMB) guidance M-05-24, and Federal Information Processing Standards Publication (FIPS PUB) Number 201.

(b) The Contractor shall insert this clause in all subcontracts when the subcontractor is required to have physical access to a federally-controlled facility or access to a Federal information system.

(End of clause)

I.3 52.212-4 Contract Terms and Conditions – Commercial Items (SEP 2005)

(a) Inspection/Acceptance. The Contractor shall only tender for acceptance those items that conform to the requirements of this contract. The Government reserves the right to inspect or test any supplies or services that have been tendered for acceptance. The Government may require repair or replacement of nonconforming supplies or reperformance of nonconforming services at no increase in contract price. The Government must exercise its post-acceptance rights --

(1) Within a reasonable time after the defect was discovered or should have been discovered; and

(2) Before any substantial change occurs in the condition of the item, unless the change is due to the defect in the item.

(b) Assignment. The Contractor or its assignee may assign its rights to receive payment due as a result of performance of this contract to a bank, trust company, or other financing institution, including any Federal lending agency in accordance with the Assignment of Claims Act (31 U.S.C.3727). However, when a third party makes payment (e.g., use of the Governmentwide commercial purchase card), the Contractor may not assign its rights to receive payment under this contract.

(c) Changes. Changes in the terms and conditions of this contract may be made only by written agreement of the parties.

(d) Disputes. This contract is subject to the Contract Disputes Act of 1978, as amended (41 U.S.C. 601-613). Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated herein by reference. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract.

(e) Definitions. The clause at FAR 52.202-1, Definitions, is incorporated herein by reference.

(f) Excusable delays. The Contractor shall be liable for default unless nonperformance is caused by an occurrence beyond the reasonable control of the Contractor and without its fault or negligence such as, acts of God or the public enemy, acts of the Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, unusually severe weather, and delays of common carriers. The Contractor shall notify the Contracting Officer in writing as soon as it is reasonably possible after the commencement of any excusable delay, setting forth the full particulars in connection therewith, shall remedy such occurrence with all reasonable dispatch, and shall promptly give written notice to the Contracting Officer of the cessation of such occurrence.

(g) Invoice.

(1) The Contractor shall submit an original invoice and three copies (or electronic invoice, if authorized) to the address designated in the contract to receive invoices. An invoice must include --

(i) Name and address of the Contractor;

(ii) Invoice date and number;

(iii) Contract number, contract line item number and, if applicable, the order number;

(iv) Description, quantity, unit of measure, unit price and extended price of the items delivered;

(v) Shipping number and date of shipment, including the bill of lading number and weight of shipment if shipped on Government bill of lading;

(vi) Terms of any discount for prompt payment offered;

(vii) Name and address of official to whom payment is to be sent;

(viii) Name, title, and phone number of person to notify in event of defective invoice; and

(ix) Taxpayer Identification Number (TIN). The Contractor shall include its TIN on the invoice only if required elsewhere in this contract.

(x) Electronic funds transfer (EFT) banking information.

(A) The Contractor shall include EFT banking information on the invoice only if required elsewhere in this contract.

(B) If EFT banking information is not required to be on the invoice, in order for the invoice to be a proper invoice, the Contractor shall have submitted correct EFT banking information in accordance with the applicable solicitation provision, contract clause (e.g., 52.232-33, Payment by Electronic Funds Transfer—Central Contractor Registration, or 52.232-34, Payment by Electronic Funds Transfer—Other Than Central Contractor Registration), or applicable agency procedures.

(C) EFT banking information is not required if the Government waived the requirement to pay by EFT.

(2) Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C. 3903) and Office of Management and Budget (OMB) prompt payment regulations at 5 CFR part 1315.

(h) Patent indemnity. The Contractor shall indemnify the Government and its officers, employees and agents against liability, including costs, for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark or copyright, arising out of the performance of this contract, provided the Contractor is reasonably notified of such claims and proceedings.

(i) Payment.

(1) Items accepted. Payment shall be made for items accepted by the Government that have been delivered to the delivery destinations set forth in this contract.

(2) Prompt Payment. The Government will make payment in accordance with the Prompt Payment Act (31 U.S.C. 3903) and prompt payment regulations at 5 CFR Part 1315.

(3) Electronic Funds Transfer (EFT). If the Government makes payment by EFT, see 52.212-5(b) for the appropriate EFT clause.

(4) Discount. In connection with any discount offered for early payment, time shall be computed from the date of the invoice. For the purpose of computing the discount earned, payment shall be considered to have been made on the date which appears on the payment check or the specified payment date if an electronic funds transfer payment is made.

(5) Overpayments. If the Contractor becomes aware of a duplicate contract financing or invoice payment or that the Government has otherwise overpaid on a contract financing or invoice payment, the Contractor shall immediately notify the Contracting Officer and request instructions for disposition of the overpayment.

(j) Risk of loss. Unless the contract specifically provides otherwise, risk of loss or damage to the supplies provided under this contract shall remain with the Contractor until, and shall pass to the Government upon:

(1) Delivery of the supplies to a carrier, if transportation is f.o.b. origin; or

(2) Delivery of the supplies to the Government at the destination specified in the contract, if transportation is f.o.b. destination.

(k) Taxes. The contract price includes all applicable Federal, State, and local taxes and duties.

(l) Termination for the Government’s convenience. The Government reserves the right to terminate this contract, or any part hereof, for its sole convenience. In the event of such termination, the Contractor shall immediately stop all work hereunder and shall immediately cause any and all of its suppliers and subcontractors to cease work. Subject to the terms of this contract, the Contractor shall be paid a percentage of the contract price reflecting the percentage of the work performed prior to the notice of termination, plus reasonable charges the Contractor can demonstrate to the satisfaction of the Government using its standard record keeping system, have resulted from the termination. The Contractor shall not be required to comply with the cost accounting standards or contract cost principles for this purpose.