OIG - Acctg Audit - Questions - Responses.docx

Amendment 002

ATTACHMENT 1

Questions - Responses

1. I do not have my CPA. Is this solicitation requiring such a certification or it does not matter?

Please review C.3 Supplies or Services – 2nd paragraph, 2nd and 3rd sentences.

2. As per Attachment A, it references the requirement for Top Secret security clearances. If I teamed up with another organization in order to perform services requested, do the principals of the prime and/or subprime organizations, as well as the individual CPAs, auditors, etc. have to have Top Secret Clearances? In other words, would the requirements requested be met if only the staff performing the services all had individual clearances?

According to H.9 Security Requirements a Top Secret facility clearance is required of the Prime and any Subcontractors and individual security clearances must be commensurate with the required level of access prior to contract performance.

3. The synopsis/solicitation states there will most likely be multiple awards under this contract. During the bid submission process, should the 8(a) or small business concerns submit bids based upon fulfilling all the requirements requested or how or when will the determination be made concerning the division or the workload in conjunction with an individual organization’s ability to perform services requested be determined?

Task orders will be competed amongst the vendors awarded a contract. No one vendor will be performing all the services.

4. I am assuming that the below statement means that as long as the contractor is licensed by some government sponsored entity, they are qualified to bid, correct? I ask this because we are licensed by the state of Texas and not in Virginia or D.C.

a. “The contractor’s partners, principals and audit managers shall be independent certified public accountants licensed as such by a state or other political sub-division of the United States. The contractor shall also have a license to practice public accounting issued by a state or other political sub-division of the United States.”

Correct.

5. Will the services be provided in Arlington or can the work be performed at the contractor’s location. We have offices in D.C.

The location where the work can be performed will depend on the scope of the individual task orders. Some work may need to be performed at overseas locations.

6. Is there an incumbent contractor for this requirement? If so, could you please provide the contractor name and the contract number that was awarded?

Contract No. S-AQM-PD-04-D0033, Leonard G. Birnbaum & Company, LLP Contract No. S-AQM-PD-04-D0035, Cotton & Company LLP Contract No. S-AQM-PD-04-D0040, Regis & Associates, PC Contract No. S-AQM-PD-04-D0044, L.F. Harris & Associates, CPA, PA

7. Does the offeror need to have a security clearance prior to the award? If not, what happens in the event the security clearance is not obtained within the 180 days?

The statement of work does not address this question specifically but normally the Department will sponsor a company for a facility clearance but there may be stipulations as to how long they have until the facility clearance is issued.

8. Who are the incumbents for this work and what were the fees awarded in conjunction with this work for the three previous audit years?

Leonard G. Birnbaum & Company, LLP Cotton & Company LLP Regis & Associates, PC L.F. Harris & Associates, CPA, PA

Fees awarded in the three previous years are not available.

9. Can the Prime contractor be a non-audit specialist or is it a requirement that the prime contractor for the statement of work be a Certified Public Accountant Firm?

Please review page 7, Section C.3 Supplies or Services, second paragraph, third sentence: “The contractor shall also have a license to practice public accounting issued by a state or other political sub-division of the United States.”

10. Can a proposal be presented for some statement of works as opposed to all five without penalty and be given full consideration?

No. The proposal would be considered nonresponsive?

11. It’s our understanding the audit covered by this Statement of Work be conducted in accordance with Government Auditing Standards. Is our understanding correct?

Yes, work should be conducted in accordance with Government Auditing Standards, July 2007 Revision.

12. Government Auditing Standards – 2003 Revision (Yellow Book) requires that an audit organization seeking to enter into a contract to perform work under GAGAS to furnish their most recent peer review report and any letter of comments. Where should this be inserted in the technical proposal?

It should be inserted in Factor E, Quality Control Plan, Subfactor E-4, Quality Control and Assurance. Please note that work should be conducted in accordance with Government Auditing Standards, July 2007 Revision, and not the 2003 Revision.

13. Government Auditing Standards – 2003 Revision (Yellow Book) requires that a CPA firm contracting with the government must have a Peer Review completed that meets the requirements of GAGAS. Is our understanding correct that the firm must have this to qualify?

Government Auditing Standards, July 2007 Revision, footnote 40 states “The external peer review requirement is effective within 3 years from the date an audit organization begins field work on its first assignment in accordance with GAGAS for both financial audit practices and performance audit practices.”

If the CPA firm is licensed in a state where peer review is required for renewal of a license or licensure, the CPA firm should be in compliance with the state board of accountancy’s peer review requirement. Also, if the CPA firm is a member of the American Institute of Certified Public Accountants (AICPA), it should be in compliance with the AICPA’s peer review requirement.

Please note that work should be conducted in accordance with Government Auditing Standards, July 2007 Revision, and not the 2003 Revision.

14. Could you provide us with the sample audit report that is expected to be issued in conjunction with these SOWs?

Copies of audit reports that have been determined to be publicly releasable can be found on http://oig.state.gov/lbry/audrpts/index.htm.

15. Do you anticipate issuing an extension to the referenced Combined Synopsis/Solicitation?

No.

16. What is the timeline and hours to complete each part of the Statement of Work?

a. Statement of Work 1 – Financial Statement Audit

b. Statement of Work 2 – Indirect Cost Rate Review

c. Statement of Work 3 – Pre-award Contract Audit

d. Statement of Work 4 – Agreed-Upon Procedures – Information Security and Privacy

e. Statement of Work 5 – Audit of Costs Incurred Under a Cost-Plus-Fixed Fee Contract

This information is not available.

17. Will there be different pay rates for each of the above tasks?

No.

18. What is the traveling requirement related to this scope of work?

Travel requirements will be determined by each statement of work and they are not known at this time.

19. Will there be any overseas traveling involved?

There may be some overseas travel involved. It will depend upon the scope of the individual statements of work.

20. Can you provide an estimate of time by location based on past experience to allow us to be able to make reasonable estimate of travel costs?

No. Travel will be reimbursed on an actual cost basis.

21. Could we have access to previous years audit work papers prior to submitting the proposal?

No.

22. What is the Contract value for the period of performance from 10/01/2003 to 09/30/2008?

This information is not available for this time period.

23. Who were the past Auditors?

Leonard G. Birnbaum & Company, LLP Cotton & Company LLP Regis & Associates, PC L.F. Harris & Associates, CPA, PA

24. Is there an enrollment period for potential bidders?

RFP are posted on fedbizopps for all interested parties to view. Not familiar with any enrollment process.

25. The last audited report was issued for FY2008. For FY2009, has there been any quarterly interim audit work performed? Are the quarterly work papers available for review? If yes, who performed the quarterly interim work?

If this question is referring to the audit of BBG’s FY 2009 financial statements, the audit is being performed by Leonard G. Birnbaum & Company, LLP. The audit will result in an audit report for FY 2009.

26. Page 27 of the solicitation indicates that the contractor shall not subcontract any work unless specifically approved in advance in writing. Can our proposal to provide subcontracted services for separate Statements of Work (as described in Section L) be considered our in advance request or will our proposal be considered non-responsive and then dismissed?

Your proposal may provide subcontracted services for separate Statements of Work, but you will also need to request in writing your need to use a subcontractor as you bid on individual task orders.

27. If we propose subcontractors to perform certain separate Statements of Work (as describe in Section L), will those subcontracts be considered not applicable to the limitation as stated in the “Limitations on Subcontracting Clause” #52.219-14(a) on page 47 of the solicitation?

FAR Clause 52.219-14(a) should be applied as written for your use of subcontractors.

28. Please provide information pertaining to previous Auditor – Leonard Birnbaum. Any reason for Leonard Birnbaum to discontinue the audit services?

The fourth option year of the contract expires on 9/29/09. The Department is required to recompete the contract.

29. We noticed the directions for submission of the past performance questionnaires (on the last page) are unclear. Instructions are to mail or fax to you, Frederick Washington, but only your phone number and email address are listed. There is not a listing for your fax number or address.

Email past performance surveys to WashingtonFJ@state.gov or fax them to (703) 284-1966.

30. We would like to confirm with you your preferred method of submission for the past performance questionnaires.

Email past performance surveys to WashingtonFJ@state.gov or fax them to (703) 284-1966.

31. In accordance with Page 82 of the Solicitation, paragraph L.5, (1) is missing and under (2) B.7 and B.9 are missing from the complete solicitation. Might you have these missing pages, so that we can make sure we are complying with all requirements of the solicitation?

Section L.5: only the (1) is missing preceding the first paragraph which reads: Proposals shall be submitted …

Section B: B.7 thru B.9 was renumbered and replaced with B.4 and B.5. Statement in B.4 and B.5 is corrected to read “See Attachment D”.