RRB11R004 Actuarial Audit Services.doc

Request for Proposal

RRB11R004

Actuarial Audit of the Statement of Social Insurance

SECTION B

SUPPLIES OR SERVICES AND PRICES OR COSTS

B1 Services B1.1 The Contractor shall provide professional actuarial audit services in accordance with the requirements of this solicitation. The Contractor shall provide all management, supervision, manpower, materials and equipment (except as otherwise provided), and shall plan, schedule, coordinate and assure effective performance of all services described herein.

B1.2 This solicitation provides for both initial services and optional services.

B1.3 Upon award of a contract, the Contractor shall devote efforts to accomplish all initial work as set forth in Section C – Statement of Work

B1.4 No optional services are to be performed until the Office of Inspector General (OIG) advises the Contractor in writing of its decision to exercise its option for such services.

B2 Prices B2.1 The several tasks required by this solicitation will be priced individually.

B2.2 The Contractor shall provide a “fully loaded” firm-fixed price below to provide the initial and optional services listed below and as described in section C of this solicitation. The RRB defines “fully loaded rates” as the price inclusive of direct wage, fringe benefits, all overheads, general and administrative (G&A) costs, profit and fees, and all travel and per diem costs for the contractor’s employee to perform the required services at the RRB/OIG headquarters facility, located in Chicago, Illinois.

Initial Services

FY 2011 Actuarial Audit

Optional Services

FY 2012 Actuarial Audit

FY 2013 Actuarial Audit

FY 2014 Actuarial Audit

FY 2015 Actuarial Audit

TOTAL PRICE

B3 Option Exercise Dates The Office of Inspector General (OIG) will exercise its option to order optional services by the following dates:

FY 2012 Actuarial Audit

No later than March 31, 2012 FY 2013 Actuarial Audit

No later than March 31, 2013 FY 2014 Actuarial Audit

No later than March 31, 2014 FY 2015 Actuarial Audit

No later than March 31, 2015 B4 Quote Must Include Both Initial and Optional Services

Contractors must provide a firm fixed price quote for the initial services (FY 2011) as well as for the optional services (FYs 2012, 2013, 2014, 2015).

B5 Unbalanced Offers

Offerors are cautioned that any offer may be rejected as nonresponsive if it is materially unbalanced as to prices for the initial and optional services. An offer is unbalanced when it is based on prices which are significantly less than cost for some work and prices which are significantly overstated for other work.

SECTION C

STATEMENT OF WORK

C1 Introduction & Background The contractor will perform a limited scope actuarial audit of the RRB’s statement of social insurance and the related underlying actuarial projection process.

The Office of Inspector General (OIG) of the Railroad Retirement Board (RRB) is issuing this Request for Proposals (RFP) to assist the OIG with its annual audit(s) of the RRB’s financial statements.

The RRB is an independent agency in the executive branch of the Federal government. Its primary function is to administer comprehensive retirement-survivor and unemployment-sickness insurance benefit programs for the nation's railroad workers and their families. These programs are provided under the Railroad Retirement Act (RRA) and the Railroad Unemployment Insurance Act (RUIA). In addition, the RRB has administrative responsibilities under the Social Security Act for certain benefit payments and Medicare coverage for railroad workers.

The RRB publishes audited financial statements in its annual Performance and Accountability Report, the form and content of which is mandated by the Office of Management and Budget (OMB). The agency prepares its financial statements from the books and records of the RRB in accordance with U.S. generally accepted accounting principles (GAAP). The American Institute of Certified Public Accountants (AICPA) has recognized the statements of Federal Financial Accounting Standards (SFFAS) promulgated by the Federal Accounting Standards Advisory Board (FASAB) as GAAP for Federal government entities.

During FY 2010, the Railroad Retirement program paid over $10 billion in benefits and reported approximately $30 billion in assets at fiscal year-end. The RRB's financial statements for the fiscal year ended September 30, 2010 reported total financing sources in excess of $11 billion which it received primarily from payroll taxes and the financial interchange with the Social Security Administration. The bulk of the RRB's financing sources are expended on benefits for railroad workers.

The agency’s FY 2010 financial statements reported total assets of approximately $6 billion which were comprised primarily of investments with the Treasury and receivables from the Social Security Administration for the financial interchange. The balance of the Railroad Retirement program’s assets, approximately $24 billion, were held and invested by the National Railroad Retirement Investment Trust (NRRIT). The NRRIT prepares and publishes financial reports separate from the RRB.

Statement of Social Insurance

The statement of social insurance is a comparative financial statement comprised of estimates of income and expenditures for a 75-year period for the railroad retirement program. The required notes to the statement of social insurance include significant underlying assumptions, fund balances as of the valuation date for each of the years presented, and identifies the elements of the closed group estimate.

Requirement for a Statement of Social Insurance

SFFAS #17, as amended, requires Federal agencies that are responsible for social insurance programs to present a statement of social insurance as one of its audited financial statements. SFFAS #17 specifically identifies the Railroad Retirement program as a social insurance program subject to this reporting requirement.

The information required by paragraphs 27(3) and 32(3) of SFFAS #17 and paragraphs 28 and 29 of SFFAS #37 are presented in a basic financial statement. The underlying significant assumptions are included in the notes that are presented as an integral part of the basic financial statement. Other information required by SFFAS #17, including the sensitivity analysis required in SFFAS #17, paragraphs 27(4) and 32(4), is presented as required supplementary information (RSI), except to the extent that the preparer elects to include some or all of that information in the notes that are an integral part of the basic financial statement.

Statement of Changes in Social Insurance Amounts SFFAS #37 requires Federal agencies that are responsible for social insurance programs to prepare a statement of changes in social insurance amounts to present the reasons for changes during the reporting period in the open group measure reported on the statement of social insurance.

Preparation of the Statement of Social Insurance The RRB’s Bureau of the Actuary prepares the agency’s statement of social insurance. The statement of social insurance is based on the periodic actuarial valuation of the assets and liabilities, also prepared by the agency’s Bureau of the Actuary. The Bureau of the Actuary publishes a new actuarial valuation every three years. This triennial valuation, which is updated during each of the two interim years, supports agency reporting responsibilities under the following statutes:

· Section 15 of the Railroad Retirement Act of 1974 requiring the Railroad Retirement Board, at intervals of not more than three years, to prepare actuarial valuations of the railroad retirement system;

· Section 22 of the Railroad Retirement Act of 1974 requiring the Railroad Retirement Board to prepare an annual report containing a five-year projection of revenues to and payments from the Railroad Retirement Account, and to submit the report to the President and the Congress by July 1; and

· Section 502 of the Railroad Retirement Solvency Act of 1983 requires the Railroad Retirement Board to prepare an annual report on the actuarial status of the Railroad Retirement program.

Actuarial Advisory Committee

Section 15(f) of the Railroad Retirement Act requires that the triennial valuation process include review of assumptions and methods by the agency’s Actuarial Advisory Committee. The committee’s statement is published with the valuation and describes the scope of their work.

Prior Actuarial Audits The RRB has not had a full scope actuarial audit of the work of its Bureau of the Actuary.

The most recent limited scope audit was conducted in 1998. The scope of the engagement was limited to an assessment of the reasonableness of the estimates and key assumptions as reported in the Twentieth Actuarial Valuation of the Assets and Liabilities Under the Railroad Retirement Acts as of December 31, 1995. In the opinion of the consulting actuary, the valuation was thorough and objective, the methodology was sound and the assumptions were reasonable.

Basis of Estimates The statement of social insurance is a comparative statement that presents data for the current and four prior years. The estimates and projections in the statement of social insurance are based on the triennial valuation of assets and liabilities of the Railroad Retirement program prepared by the RRB’s Bureau of the Actuary.

FY 2016

Updated for use in preparing the June 2016Section 502 Report

FY 2015

Not Applicable. The triennial valuation serves as the annual report required by Section 502 of the Railroad Retirement Solvency Act of 1983.

Updated for use in preparing the June 2014 Section 502 Report

FY 2013

Updated for use in preparing the June 2013 Section 502 Report

FY 2012

Not Applicable. The triennial valuation serves as the annual report required by Section 502 of the Railroad Retirement Solvency Act of 1983.

FY 2010

Updated for use in preparing the June 2010 Section 502 Report

FY 2009

Not Applicable. The triennial valuation serves as the annual report required by Section 502 of the Railroad Retirement Solvency Act of 1983.

FY 2007

Updated for use in preparing the June 2007 Section 502 Report

FY 2006

Not Applicable. The triennial valuation serves as the annual report required by Section 502 of the Railroad Retirement Solvency Act of 1983.

C2 Scope of Work The contractor shall provide all services, personnel, facilities, equipment, and materials necessary to perform the work described by this statement of work.

The contractor will provide both the initial and optional services described in this RFP.

C2.1 FY 2011 Actuarial Audit (Initial Service) The contractor will perform the limited scope actuarial audit of the FY 2011 statement of social insurance as described in Section C3. The scope of the contractor’s work will include the estimates and disclosures for FY 2011 only.

C2.2 FY 2012 Actuarial Audit (Optional Service)

The contractor will perform the limited scope actuarial audit of the FY 2012 statement of social insurance as described in Section C3. The scope of the contractor’s work will include the estimates and disclosures for FY 2012 only.

C2.3 FY 2013 Actuarial Audit (Optional Service)

The contractor will perform the limited scope actuarial audit of the FY 2013 statement of social insurance as described in Section C3. The scope of the contractor’s work will include the estimates and disclosures for FY 2013 only.

C2.4 FY 2014 Actuarial Audit (Optional Service)

The contractor will perform the limited scope actuarial audit of the FY 2014 statement of social insurance as described in Section C3. The scope of the contractor’s work will include the estimates and disclosures for FY 2014 only.

C2.5 FY 2015 Actuarial Audit (Optional Service)

The contractor will perform the limited scope actuarial audit of the FY 2015 statement of social insurance as described in Section C3. The scope of the contractor’s work will include the estimates and disclosures for FY 2015 only.

C3 Scope of the Actuarial Audit The contractor will perform such work as is required to make the following determinations for each year’s actuarial audit as awarded. This includes an actuarial analysis which is done in a spreadsheet using cell data. In addition, every third year the contractor must reconcile cell data back to source data in the spreadsheet:

C3.1 The methods and assumptions used in the valuation of the Railroad Retirement program, and by extension the statement of social insurance, are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial Standards Board.

C3.2 The actuarial valuation considers all pertinent provisions of laws and regulations governing program operations, including any changes to laws or regulations affecting the actuarial calculations since the date of the latest statement of social insurance.

C3.3 Data used in preparing the statement of social insurance is complete, and reliable.

C3.4 The estimates presented in the statement of social insurance are reasonable and prepared in compliance with the requirements of SFFAS #17 as amended.

C3.5 The fund balance, as of the valuation date, has been accurately computed in compliance with SFFAS #17 as amended.

C3.6 The disclosure of significant assumptions is complete and meets the requirements of SFFAS #17 as amended.

C3.7 Other footnotes meet the disclosure requirements of SFFAS #17 as amended.

C3.8 The reconciling items on the statement of changes in social insurance amounts are reasonable and prepared in compliance with SFFAS #37 including any applicable laws and amendments.

C3.9 The reporting of the statement of social insurance, statement of changes in social insurance amounts and other related communication are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial Standards Board.

C4 Reporting Requirements The contractor will summarize their findings and determinations in a formal, written report that details the scope of their work and their overall conclusions.

C4.1 The contractor’s report must respond individually to each determination required in Section C3 of this RFP.

C4.2 The contractor’s report must describe the scope and methodology used in making the determinations.

C4.3 The contractor’s report must describe any limitations on the scope of their work caused by lack of documentation.

C4.4 The contractor’s report must be prepared in compliance with applicable Actuarial Standards of Practice adopted by the Actuarial Standards Board.

C5 Applicable Guidance

The Contractor will be required to evaluate compliance with any revised or additional guidance, legislation, pronouncement or standard issued subsequent to this contract that impact the estimates presented in the statement of social insurance or the practice of the actuarial profession.

C6 Agency Involvement

The COTR, the Chief Actuary, his staff and the responsible staff of the various RRB operation units directly subject to the scope of the actuarial audit will be available during the audit to assist the Contractor by providing information and explanations. While RRB and OIG staff will work with the Contractor to pull documents, reproduce files and respond to Contractor inquiries on an intermittent basis, the Contractor cannot expect them to prepare schedules or otherwise provide full-time assistance.

Contractor requirements for agency facilities, materials, data or direct assistance must be detailed in the Technical Approach and Workplan section of the technical proposal.

C7 Government Furnished Data

The RRB will provide access to documentation (electronic and hardcopy) of information required to make the determinations required by Section C3 of this solicitation.

Supporting documentation (electronic and hard copy) for the various estimates in the statement of social insurance pertaining to FY 2009 through FY 2010 will be made available to the Contractor after contract award upon consultation with the Contracting Officer’s Technical Representative (COTR).

Supporting documentation (electronic and hard copy) for the various estimates in the statement of social insurance pertaining to FY 2011and later years will be available to the Contractor as they become available to the OIG.

· The triennial valuations are completed by June 30th of the year in which they are performed.

· Interim year updates to the triennial valuation are completed by June 30th of the year in which they are performed.

· The statement of social insurance is completed by July 31st of each year.

C8 Entrance/Exit Conferences The entrance and exit conferences and other significant meetings are to be held with the COTR and responsible agency officials. The entrance conference provides an opportunity for the Contractor to discuss the audit approach and introduce key staff to agency officials. The entrance conference will not be an opportunity to change the terms, conditions, or price of the contract.

At the completion of their work, the Contractor shall hold an exit conference with the COTR and responsible RRB officials. At this conference the Contractor communicates the findings and recommendations developed during the audit, and elicits initial views from agency officials.

During the course of their work, the Contractor shall be prepared to discuss with the COTR and management in the RRB’s Bureau of the Actuary matters that come to the Contractor’s attention that could have an impact on the determinations within the scope of the actuarial audit. Furthermore, the Contractor shall notify the COTR of any such meetings that do not include the COTR.

C9 Progress Reports Monthly written progress reports are to be presented by the Contractor to the COTR including (at a minimum) the following:

a) progress to-date compared with the audit plan and time schedule;

b) any issues that could impact the progress or outcome of the Contractor’s work; and

c) matters that have come to the Contractor’s attention that could impact the results of the determinations required in Section C3.

C10 Confidentiality

The actuarial valuation model and the factors, assumptions and software applications that support it are the property of the Government of the United States. The Contractor agrees to hold strictly confidential any information relating to the model and related factors, assumptions, and software applications to which it may be privy during the audit.

SECTION D

PACKAGING AND MARKING

D1 Packaging Preservation, packaging and packing for shipment or mailing of any work deliverables hereunder shall be in accordance with good commercial practice and adequate to insure acceptance by common carrier and safe transportation at the most economical rate(s)

D2 Marking Each package, report or other deliverable shall be accompanied by a letter or other document which:

a. Identifies the contract by number under which the item is being delivered.

b. Identifies the deliverable Item Number or Report Requirement which requires the delivered item(s).

c. Indicates whether the Contractor considers the delivered item to be a partial or full satisfaction of the requirement.

SECTION E

Inspection and Acceptance

E1.1 Inspection Inspection of all items under this contract shall be accomplished by the Contracting Officer’s Technical Representative (COTR) or any other duly authorized representative as designated by the Contracting Officer.

E1.2 Inspection of Services—Fixed-Price (FAR 52.246-4 August 1996)

(a) Definition. “Services,” as used in this clause, includes services performed, workmanship, and material furnished or utilized in the performance of services.

(b) The Contractor shall provide and maintain an inspection system acceptable to the Government covering the services under this contract. Complete records of all inspection work performed by the Contractor shall be maintained and made available to the Government during contract performance and for as long afterwards as the contract requires.

(c) The Government has the right to inspect and test all services called for by the contract, to the extent practicable at all times and places during the term of the contract. The Government shall perform inspections and tests in a manner that will not unduly delay the work.

(d) If the Government performs inspections or tests on the premises of the Contractor or a subcontractor, the Contractor shall furnish, and shall require subcontractors to furnish, at no increase in contract price, all reasonable facilities and assistance for the safe and convenient performance of these duties.

(e) If any of the services do not conform with contract requirements, the Government may require the Contractor to perform the services again in conformity with contract requirements, at no increase in contract amount. When the defects in services cannot be corrected by reperformance, the Government may—

(1) Require the Contractor to take necessary action to ensure that future performance conforms to contract requirements; and

(2) Reduce the contract price to reflect the reduced value of the services performed.

(f) If the Contractor fails to promptly perform the services again or to take the necessary action to ensure future performance in conformity with contract requirements, the Government may—

(1) By contract or otherwise, perform the services and charge to the Contractor any cost incurred by the Government that is directly related to the performance of such service; or

(2) Terminate the contract for default.

E2 Acceptance

a. Acceptance of all work and effort under this contract shall be accomplished by the Contracting Officer or his designee. The right to reject the work performed under this contract shall continue for 10 days after receipt.

b. Acceptance will be demonstrated by written notice to the Contractor.

E3 Resolution If necessary, the Contractor shall participate in up to three follow-up meetings after acceptance of the final report to assist the Office of Inspector General in resolving issues related to the findings and determinations communicated in the contractor’s report. The meeting may be in person or telephone conference at the contractor’s option.

F

DELIVERABLES AND PERFORMANCE

F1 Period of Performance

The Contractor shall begin performance of work described in Section C of this contract on the date of the contract award and continue until acceptance of the last deliverable.

Work under this contract is expected to commence no later than June 15, 2011 and continue until acceptance of the last deliverable.

F2 Deliverables For the mandatory audit of FY 2011and each subsequent year for which the Office of Inspector General exercises its option, the Contractor will provide the following:

F2.1 The Contractor shall submit a timetable for the completion of the limited scope actuarial audit as detailed in Section C of this RFP:

(a) within 5 business days of contract award for the initial Actuarial Audit (FY 2011); and (b) within 15 business days of the OIG’s exercise of its option(s) for optional Actuarial Audits ( FY 2012 – FY 2015).

F2.2 A monthly progress report will be submitted by the Contractor by the fifth working day of each month beginning with the first full month after contract award and ending with the acceptance of the final deliverable.

F2.3 The Contractor shall provide a draft written report for discussion with OIG personnel, that addresses the requirements of Section C4, communicating the opinion of the firm and any other matters that are reportable pursuant to applicable reporting requirements within the timeframes set forth in Section F3.

F2.4 The Contractor shall provide a final written report pursuant to the requirements of Section C4, communicating the opinion of the firm and any other matters that are reportable pursuant to applicable reporting requirements within the timeframes set forth in Section F3.

F3 Deadlines for Draft and Final Reports The reports required by Section C4 will be due on the dates shown below:

(Optional)

FY 2013

(Optional)

FY 2014

(Optional)

FY 2015

(Optional)

F4 Delivery

The Contractor shall furnish all deliverables to the COTR or his/her designated representative(s) by 4:00 PM local time on the established date to the addresses shown below.

a.

Printed paper documents should be delivered to the following street address.

COTR – Contract #________

Office of Inspector General

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, Illinois 60611 b.

Adobe Acrobat (PDF) files should be transmitted via EMAIL to DKRUEL@OIG.RRB.GOV.

F5 Number of Copies The Contractor shall provide copies of each draft and final report as follows:

a.

three (3) printed paper copies, and b.

one (1) electronic copy in ADOBE Acrobat computer format (PDF file).

F6 Stop-Work Order (FAR 52.242-15 August 1989)

(a) The Contracting Officer may, at any time, by written order to the Contractor, require the Contractor to stop all, or any part, of the work called for by this contract for a period of 90 days after the order is delivered to the Contractor, and for any further period to which the parties may agree. The order shall be specifically identified as a stop-work order issued under this clause. Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. Within a period of 90 days after a stop-work is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the Contracting Officer shall either—

(1) Cancel the stop-work order; or

(2) Terminate the work covered by the order as provided in the Default, or the Termination for Convenience of the Government, clause of this contract.

(b) If a stop-work order issued under this clause is canceled or the period of the order or any extension thereof expires, the Contractor shall resume work. The Contracting Officer shall make an equitable adjustment in the delivery schedule or contract price, or both, and the contract shall be modified, in writing, accordingly, if—

(1) The stop-work order results in an increase in the time required for, or in the Contractor’s cost properly allocable to, the performance of any part of this contract; and

(2) The Contractor asserts its right to the adjustment within 30 days after the end of the period of work stoppage; provided, that, if the Contracting Officer decides the facts justify the action, the Contracting Officer may receive and act upon the claim submitted at any time before final payment under this contract.

(c) If a stop-work order is not canceled and the work covered by the order is terminated for the convenience of the Government, the Contracting Officer shall allow reasonable costs resulting from the stop-work order in arriving at the termination settlement.

(d) If a stop-work order is not canceled and the work covered by the order is terminated for default, the Contracting Officer shall allow, by equitable adjustment or otherwise, reasonable costs resulting from the stop-work order.

SECTION G

Contract Administration Data

G1.

GOVERNMENT CONTACTS FOR POST AWARD ADMINISTRATION

G1.1 Contracting Officer

The Contracting Officer is the only official who can:

assign additional work within the general scope of the Statement of Work;

issue a change as defined in the contract article entitled "Changes - Fixed Price - Alternate III" (FAR 52.243-01);

c.

cause an increase or decrease in the total contract price or change the time required for the contract performance;

d.

change any of the expressed terms, conditions, or specifications of the contract.

G1.2 Contracting Officer's Technical Representative (COTR) a.

Performance of work under this contract shall be subject to the technical direction of the COTR. The term "technical direction" is defined to comprise the following:

i.

Directions to the Contractor which redirect the contract effort, shift work emphasis between work areas or tasks, require pursuit of certain lines of inquiry, fill in details or otherwise serve to accomplish the contractual statement of work.

ii.

Provisions of information to the Contractor which assist in the interpretation of drawings, specifications, or technical portions of the work description.

iii.

Review and, where required by the contract, approval of technical reports, drawings, specifications, and technical information to be delivered by the Contractor to the OIG under this contract.

b.

Technical directions must be within the general scope of work stated in the contract. The COTR does not have the authority to and may not issue any direction which (i) constitutes an assignment of additional work outside the general scope of the contract; (ii) in any manner causes an increase or decrease in the estimated cost or the time required for contract performance; (iii) change any of the expressed terms, conditions, or specifications of the contract.

c.

The Contractor shall proceed promptly with the performance of technical directions duly issued by the COTR in the manner prescribed by this section and within his authority under the provisions of the section. If, in the opinion of the Contractor, any instruction or direction issued by the COTR is within one of the categories as defined in b(i), b(ii), b(iii) above, the Contractor shall not proceed but notify the Contracting Officer within 5 days after receipt of any such instruction or direction and shall request the Contracting Officer to modify the contract accordingly. Upon receiving such notification from the Contractor, the Contracting Officer shall issue an appropriate contract modification or advise the Contractor in writing that, in his opinion, the technical direction is within the scope of this section. The Contractor shall thereupon proceed immediately with the direction given. A failure of the parties to agree upon the nature of the instruction or direction or upon the contract action to be taken with respect thereto shall be subject to the provisions of the contract article entitled "Disputes".

d.

The COTR will be named upon contract award.

G2.

PAYMENT ADMINISTRATION

G2.1.

Payments

Payments will be made to the Contractor as follows:

10%

Upon Acceptance of First Monthly Progress Report

(Work accomplished must include timetable [see F2.1] and opening conference [see C8])

20%

Upon Acceptance of Second Monthly Progress Report

50%

Upon Acceptance of Draft Deliverables

20%

Upon Acceptance of Final Deliverables

100%

The above percentages will be applied to the initial work and optional work separately.

G2.2.

Billing Address

Invoices should be submitted to the following address:

COTR- Contract No: __________

Office of Inspector General

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, Illinois 60611

G2.3 Invoicing In accordance with the Prompt Payment Act, Public Law 97-177, to constitute a proper invoice, the invoice (original and four copies) must include the following minimum information and/or attached documentation.

Name of business concern/ letterhead;

Invoice date and separate/ distinct number;

c.

Contract Number;

d.

Amount of installment requested;

e.

Name, title, phone number, and complete mailing address of responsible official to whom payment is to be sent;

f.

A statement signed by a responsible official of the concern certifying the required work has been completed.

G3. CORRESPONDENCE

a.

All correspondence, including reports required under this contract, as well as technical correspondence, shall be addressed to the billing address shown in G2.2.

b.

All correspondence other than invoices and reports should contain a subject line which commences with the contract number and then the subject. An example is shown below.

SUBJECT: CONTRACT NO. XXX, REQUEST FOR SUBCONTRACT CONSENT

SECTION H

Special Contract Requirements

H1 Performance Period The initial contract shall begin on the date of contract award and shall end with acceptance of final report.

H2 Audit (1) The Office of Inspector General shall have access to and the right to examine any of the Contractor's directly pertinent records involving transactions related to this contract or a subcontract hereunder.

(2) The Office of Inspector General shall have access to and the right to examine any of the Contractors working papers and supporting documentation related to the determinations and reports specified in Section C – Statement of Work.

(3) This paragraph may not be construed to require the Contractor or subcontractor to create or maintain any record that the Contractor or subcontractor does not maintain in the ordinary course of business or pursuant to a provision of law.

H3.

Information Privacy Certification

All contractor personnel assigned to this engagement must complete RRB Form G-511 “Information Privacy Certification by Contractor,” included as Attachment D to this solicitation (see Section J).

SECTION I

Contract Clauses

I1.

Clauses Incorporated By Reference (52.252-2 February 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.

This contract also incorporates by full text those clauses that appear in Section I2.

Incorporated by reference:

I2.

Incorporated full text:

The following clauses are incorporated into this solicitation full text.

I2.1 Approval of Contract (Far 52.204-1 DEC 1989)

This contract is subject to the written approval of Inspector General and shall not be binding until so approved.

I2.2 Central Contractor Registration (FAR 52.204-7 APR 2008)

(a) Definitions. As used in this clause--

"Central Contractor Registration (CCR) database" means the primary Government repository for Contractor information required for the conduct of business with the Government.

"Data Universal Numbering System (DUNS) number" means the 9-digit number assigned by Dun and Bradstreet, Inc. (D&B) to identify unique business entities.

"Data Universal Numbering System +4 (DUNS+4) number" means the DUNS number assigned by D&B plus a 4-character suffix that may be assigned by a business concern. (D&B has no affiliation with this 4-character suffix.) This 4-character suffix may be assigned at the discretion of the business concern to establish additional CCR records for identifying alternative Electronic Funds Transfer (EFT) accounts (see the FAR at Subpart 32.11) for the same concern.

"Registered in the CCR database" means that--

(1) The Contractor has entered all mandatory information, including the DUNS number or the DUNS+4 number, into the CCR database; and

(2) The Government has validated all mandatory data fields, to include validation of the Taxpayer Identification Number (TIN) with the Internal Revenue Service (IRS), and has marked the record "Active". The Contractor will be required to provide consent for TIN validation to the Government as a part of the CCR registration process.

(b)(1) By submission of an offer, the offeror acknowledges the requirement that a prospective awardee shall be registered in the CCR database prior to award, during performance, and through final payment of any contract, basic agreement, basic ordering agreement, or blanket purchasing agreement resulting from this solicitation.

(2) The offeror shall enter, in the block with its name and address on the cover page of its offer, the annotation "DUNS" or "DUNS +4" followed by the DUNS or DUNS +4 number that identifies the offeror's name and address exactly as stated in the offer. The DUNS number will be used by the Contracting Officer to verify that the offeror is registered in the CCR database.

(c) If the offeror does not have a DUNS number, it should contact Dun and Bradstreet directly to obtain one.

(1) An offeror may obtain a DUNS number--

(i) Via the Internet at http://fedgov.dnb.com/webform or if the offeror does not have internet access, it may call Dun and Bradstreet at 1-866-705-5711 if located within the United States; or

(ii) If located outside the United States, by contacting the local Dun and Bradstreet office. The offeror should indicate that it is an offeror for a U.S. Government contract when contacting the local Dun and Bradstreet office.

(2) The offeror should be prepared to provide the following information:

(i) Company legal business.

(ii) Tradestyle, doing business, or other name by which your entity is commonly recognized.

(iii) Company Physical Street Address, City, State, and Zip Code.

(iv) Company Mailing Address, City, State and Zip Code (if separate from physical).

(v) Company Telephone Number.

(vi) Date the company was started.

(vii) Number of employees at your location.

(viii) Chief executive officer/key manager.

(ix) Line of business (industry).

(x) Company Headquarters name and address (reporting relationship within your entity).

(d) If the Offeror does not become registered in the CCR database in the time prescribed by the Contracting Officer, the Contracting Officer will proceed to award to the next otherwise successful registered Offeror.

(e) Processing time, which normally takes 48 hours, should be taken into consideration when registering. Offerors who are not registered should consider applying for registration immediately upon receipt of this solicitation.

(f) The Contractor is responsible for the accuracy and completeness of the data within the CCR database, and for any liability resulting from the Government's reliance on inaccurate or incomplete data. To remain registered in the CCR database after the initial registration, the Contractor is required to review and update on an annual basis from the date of initial registration or subsequent updates its information in the CCR database to ensure it is current, accurate and complete. Updating information in the CCR does not alter the terms and conditions of this contract and is not a substitute for a properly executed contractual document.

(g)(1)(i) If a Contractor has legally changed its business name, "doing business as" name, or division name (whichever is shown on the contract), or has transferred the assets used in performing the contract, but has not completed the necessary requirements regarding novation and change-of-name agreements in Subpart 42.12, the Contractor shall provide the responsible Contracting Officer a minimum of one business day's written notification of its intention to (A) change the name in the CCR database; (B) comply with the requirements of Subpart 42.12 of the FAR; and (C) agree in writing to the timeline and procedures specified by the responsible Contracting Officer. The Contractor must provide with the notification sufficient documentation to support the legally changed name.

(ii) If the Contractor fails to comply with the requirements of paragraph (g)(1)(i) of this clause, or fails to perform the agreement at paragraph (g)(1)(i)(C) of this clause, and, in the absence of a properly executed novation or change-of-name agreement, the CCR information that shows the Contractor to be other than the Contractor indicated in the contract will be considered to be incorrect information within the meaning of the "Suspension of Payment" paragraph of the electronic funds transfer (EFT) clause of this contract.

(2) The Contractor shall not change the name or address for EFT payments or manual payments, as appropriate, in the CCR record to reflect an assignee for the purpose of assignment of claims (see FAR Subpart 32.8, Assignment of Claims). Assignees shall be separately registered in the CCR database. Information provided to the Contractor's CCR record that indicates payments, including those made by EFT, to an ultimate recipient other than that Contractor will be considered to be incorrect information within the meaning of the "Suspension of payment" paragraph of the EFT clause of this contract.

(h) Offerors and Contractors may obtain information on registration and annual confirmation requirements via the internet at http://www.ccr.gov or by calling 1-888-227-2423, or 269-961-5757.

I2.3 Statement of Equivalent Rates for Federal Hires

(FAR 52.222-42 MAY 1989)

In compliance with the Service Contract Act of 1965, as amended, and the regulations of the Secretary of Labor (29 CFR Part 4), this clause identifies the classes of service employees expected to be employed under the contract and states the wages and fringe benefits payable to each if they were employed by the contracting agency subject to the provisions of 5 U.S.C. 5341 or 5332.

This Statement is for Information Only: It is not a Wage Determination

I2.4 Availability of Funds (APR 1984) 52.232-18

Funds are not presently available for this contract. The Government’s obligation under this contract is contingent upon the availability of appropriated funds from which payment for contract purposes can be made. No legal liability on the part of the Government for any payment may arise until funds are made available to the Contracting Officer for this contract and until the Contractor receives notice of such availability, to be confirmed in writing by the Contracting Officer.

I2.5 Option to Extend Services (NOV 1999) 52.217-8

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 30 days.

I2.6 Option to Extend the Term of the Contract (MAR2000) 52.217-9

(a) The Government may extend the term of this contract by written notice to the Contractor within thirty (30) days; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least sixty (60) days before the contract expires. The preliminary notice does not commit the Government to an extension.

(b) If the Government exercises this option, the extended contract shall be considered to include this option clause.

(c) The total duration of this contract, including the exercise of any options under this clause, shall not exceed five (5) years.

I2.7 Contract Terms and Conditions- Commercial Items (JUNE 20 2010) 52.212-4

(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. If repair/replacement or reperformance will not correct the defects or is not possible, the Government may seek an equitable price reduction or adequate consideration for acceptance of nonconforming supplies or services. 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—

(i) Remit the overpayment amount to the payment office cited in the contract along with a description of the overpayment including the—

(A) Circumstances of the overpayment (e.g., duplicate payment, erroneous payment, liquidation errors, date(s) of overpayment);

(B) Affected contract number and delivery order number, if…