SOW-Print Mail-SBAFinancialForms.docx

PERFORMANCED-BASED STATEMENT OF WORK

FOR PRINTING AND MAIL SERVICES

FOR THE SMALL BUSINESS ADMINISTRATION, DENVER FINANCE CENTER

I. Background

The Small Business Administration (SBA), Office of the Chief Financial Officer (OCFO), Denver Finance Center (DFC) is located at 721 19th Street, Denver, Colorado, 80202 – and is referred in this Statement of Work (SOW) as “Agency.” The Agency requires vendor services for the outsourcing of printing and mailing services. These services are currently performed in accordance with an existing contract, SBAHQ-07-C-0008, which expires 01/31/2012. Services to SBA are centered on electronic exchange of files containing data for printing and mailing of borrower and lender payment notifications, yearly Internal Revenue Service (IRS) reporting and miscellaneous mailings resulting from SBA communication requirements. Due to the high variability and unpredictability of lending activity resulting from declared disasters, workload demands may vary widely from time to time.

II. Objectives

The contractor shall be responsible for downloading of electronic data files, printing and mailing borrower repayment notices, lender notices, SBA miscellaneous communications, and IRS reporting on a nationwide basis (including the locations of Guam, Puerto Rico, the Virgin Islands and Hawaii). The mailings may include occasional communications to foreign locations. The contractor shall download electronic data files, print, sort and transport the mail pieces to the U.S. Post Office and mail those items by first class mail. The contractor shall provide all printing and mailing materials. The contractor shall pay for all mail postage. The contractor shall work with the SBA’s Denver Finance Center to establish all required, and time specific mailing routines, which shall be reduced to writing.

III. Scope

The scope of this contract consists of downloading, print processing and mailing of specified SBA notifications to borrowers and lenders. The matrix is an estimation of quantity only, and actual quantities may vary. The following forms are included:

· “1201 Notices to Borrowers”: Download electronic data files, print and mail between 5,000 and 35,000 borrower notices (“1201 Notices”) per day in accordance with a pre-established payment mailing matrix which shall be delivered to the contractor prior to the start of each month’s agency billing cycle.

· “1201 Notices – Treasury Offset”: “1201 Notices for 1201 – Treasury Offset files” will have a 2 page, duplex print letter attached. Treasury Offset notification files are to be printed and mailed once per week.

· “1544 Messages”: Download electronic data files, print and mail between 2,000 and 6,000 messages per day, or on an as-needed basis.

· “1078 Notices” – Notices of Loan Maturity: Download electronic data files, print and mail between 1,000 and 3,000 loan maturity notices (“1078 Notices”) one day per month.

· IRS Forms 1098, 1099-Misc and 1099C: IRS information reporting files are also required to be electronically downloaded, printed and mailed on an annual basis (“IRS forms 1098, 1099-Misc and 1099-C”). Note: all Internal Revenue Service print guidelines are to be complied with. Guidelines for the current year and instructions for forms can be downloaded from http://www.IRS.Gov . Forms are to be printed according to IRS print standards detailed in IRS Publication #1179.

· SBA Miscellaneous Mailings: On an as-needed basis, some miscellaneous mailings may be required. The mailings may vary based on agency communication requirements. SBA miscellaneous mailings will be coordinated in advance of the mailing date with the Contractor by SBA.

The Agency shall provide all print information to the contractor in daily transmissions via a high-speed encrypted electronic transfer. The contractor shall electronically download files, print and mail notifications and communications. The contractor shall process and mail all notices and communications using contractor provided equipment and supplies at the contractor’s facility. Payment for all files processed within a given month shall be invoiced at a stated fixed unit price multiplied by the quantity of processed items. Rates are to be charged at the accepted contract line item rate identified by the contract between the vendor and the SBA. Contractor operations shall be staffed on a Monday through Friday basis, with the exception of Federal Holidays. Weekend and after-hours activity will be limited to automated transmittals between the SBA and contractor.

The contractor and the SBA will exchange electronic notifications of file transmission, receipt and print confirmations for each file exchanged at the time of actual work.

The following chart summarizes the types of items to be mailed on behalf of SBA, provides an estimate of projected annual volume by type of notification, estimated envelope requirements and a brief summary of information related to the mail requirements. Again, volumes may change based on increased mail requirements such as the SBA’s response to declared disaster related activity.

IRS - Form 1099-Misc Copy B

IV. Period of Performance

The base period of performance for this contract is one year with the option for renewal annually for four additional option years. Each renewal is to be exercised at the option of the SBA. An Entrance Conference will be conducted by the agency’s Contract Officer within 5 business days from the contract award date to further define operating requirements and tasks. Dates will be adjusted at time of award.

V. Special Contractor Requirements

1. Contractor shall be able to assure quality control for printing and mailing processes to prevent incomplete and/or incorrect mailings. If such an event should happen, the contractor must immediately report the incident in writing to SBA. If the event also resulted in a Privacy Act violation, such violation must be resolved at the expense of the contractor in the form of Credit Monitoring or other such action agreed to by SBA. Reprinting due to incorrect or incomplete forms shall be a contractor’s expense.

2. The contractor’s processing equipment shall be able to support high-speed file transfers and be able to receive ASCII data files which are encrypted.

3. Daily transmitted files shall be processed and mailed on the same business day received, with the exception of files transmitted on a weekend or on a Federal Holiday. Files transmitted on a weekend or following a Federal Holiday shall be processed and mailed the next business day.

4. Annually transmitted files (1098, 1099-Misc, and 1099-C) shall be downloaded the day of transmittal and held for a random drop copy review and acceptance by the SBA prior to mailing. After written acceptance by SBA files shall be mailed the next business day and not later than the last business day of the month.

5. All notices, communications and envelopes shall be printed on a minimum paper weight of 20 lbs. The purchase of paper and printing of envelopes are the expense of the contractor. All of contractor’s direct and indirect expenses, except postage increases, are included in contractor’s fully loaded rates. Fully loaded rates include postage rates in effect at the time of contract award. Postage rate increases that occur after contract award are a separate contract CLIN.

6. Special printing specifications: All notices shall be mailed using #10 window envelopes with or without cellophane protection at contractor’s discretion. The notices or communications shall be tri-folded or inserted to allow the name and address to be shown in the window of the envelope.

(a) SBA 1201 Notices: Notices shall be printed using 2 color ink. Notices shall be mailed each business day in accordance with a published payment date matrix provided by SBA. The matrix will also indicate which due date the SBA data file will contain on a specific day. Tri-fold of the notice is required. The borrower’s name and address shall be printed on the bottom third of the page in a specific location. The page shall contain a perforation line along the bottom third of the page in a specific location. A return mail envelope addressed to the lockbox assigned to each specific loan number contained in the daily notice file shall be included with the 1201 Notice. A sample of the form will be provided by SBA.

(b) SBA 1201 Notices - Treasury Offset Letters: One day each week, a special data file for US Treasury Offset notifications shall be sent to the contractor for processing. The notices shall be printed on 1201 Notice stock paper and shall have an attached duplex style form letter inserted with the notice. Insertion of a return envelope is required. A sample of the form will be provided by SBA.

(c) SBA 1544 Notices: These notices are sent daily, or on an as-needed basis. Tri-fold of the notice is required. The name and address of the addressee shall be printed on the bottom third of the page in a specific location. The page shall contain a perforation line along the bottom third of the page in a specific location. In some instances, a return mail return envelope is required. A sample of the form will be provided by SBA.

(d) SBA Form 1078 – Notice of Loan Maturity: Notices are sent once per month, during the first week of the month. The name and address for each addressee is to be printed in a specific location. A fixed format document is required. No return envelope is required. A sample of the form will be provided by SBA.

(e) SBA – Form 1098 Statement of Mortgage Interest: Notices shall be mailed annually during the first 10 days of January. Tri-fold of the notice is required. The current year form shall be downloaded and printed in accordance with the specifications located at: www.IRS.Gov. The form shall be reverse folded for mailing to assure privacy protection of printed data. The addressee’s name and address shall be printed on the back and positioned to be viewable through the #10 window envelope opening. A data file will be provided by SBA. Drop copies will be requested by SBA and acceptance of the format must be given to the contractor prior to mailing.

(f) IRS - Form 1099-Misc: Notifications shall be mailed annually during the first 10 days of January. Tri-fold of the form is required. The current year form shall be downloaded and printed in accordance with the specifications located at: www.IRS.Gov. A data file will be provided by SBA. Drop copies will be requested by SBA and acceptance of the format must be given to the contractor prior to mailing. The form shall be reverse folded for mailing to assure privacy protection of printed data. The addressee’s name and address shall be printed on the back and positioned to be viewable through the #10 window envelope opening. A sample of a prior year form will be supplied by SBA.

(g) IRS – Form 1099-C: Notifications shall be mailed annually during the first 10 days of January. Tri-fold of the form is required. The current year form shall be downloaded and printed in accordance with the specifications located at: www.IRS.Gov. A data file will be provided by SBA. Drop copies will be requested by SBA and acceptance of the format must be given to the contractor prior to mailing. The form shall be reverse folded for mailing to assure privacy protection of printed data. The addressee’s name and address shall be printed on the back and positioned to be viewable through the #10 window envelope opening. A sample of a prior year form will be supplied by SBA.

(h) SBA Miscellaneous Mailings: SBA may determine that a SBA miscellaneous mailing is required. The design and mailing of such mailings is to be coordinated with the contractor prior to the actual data file remittance.

7. Coding Accuracy Support System (CASS): Addresses contained in SBA data files are to be run against the United States Postal System database identified as “CASS”. Address exceptions identified by the data file run against CASS shall be corrected by the contractor prior to printing. An exception indicator may be included in daily files sent by SBA to the contractor. An exception indicator will indicate that no change to a specific address is to be made after the file is run against the CASS database. The contractor shall have the capability to insert address codes from CASS in to a specified bar code format at the top of each address printed on the notification forms. Contractor shall use such services as Alternate Change Services (ACS) to reduce postage costs for returned mail when possible.

8. Reporting: The contractor shall electronically report the status of mailings on a daily basis to confirm the type of file and the item count. These notifications shall be sent by the contractor in the form of e-mails to designated contractor and SBA staff as verification of mailings. Reports shall contain the minimum information:

a. SBA 1201 Notices - Processing Summary Report: This report shall reflect the file batch number, date, record count detailed by lockbox location, total record count, error count and error record listings with the error code identified by the US postal service indicated on the report.

b. SBA 1544 Notices – Processing Summary Report: This report shall reflect the file batch number, date, run time, a record count detailed by lockbox location and total record count.

c. SBA – LATE –Treasury Offset Notices: This report shall reflect the file batch number, date, a record count detailed by lockbox location, total record count, error count and error record listings. There are two types of notices printed and mailed weekly.

d. SBA 1078 Notices: This report shall reflect the file batch number, date, and total number of records mailed. This file is sent during one week of each month.

e. Year-end IRS Reporting: The volume for each reporting type (1098, 1099-Misc and 1099-C) is simply reported by an e-mail to SBA and provides SBA with the total count of each type of form mailed. SBA and the contractor will be in daily contact during the period the data is downloaded, tested and mailed. These files are sent to borrowers during the first 10 days of January of each year.

f. The contractor shall mail notices within 24 hours of receipt and download of the data files.

g. The contractor shall process PGP encrypted data files delivered using File Transfer Protocol (FTP).

h. The contractor shall ensure scan line quality control (OCR-B required). Note: the scan line placement is specific and must be consistently placed on each notice to meet lockbox processing requirements.

i. The contractor shall print and insert one optional, duplex printed insert at no charge to the agency when it is deemed necessary by SBA.

j. The contractor shall insert return envelopes to various lockbox locations as directed by the data file (such as Atlanta, Hawaii and Denver).

k. The contractor shall receive files electronically and unattended between the hours of 6:00 pm and 6:00 am daily – Eastern time.

l. The contractor shall have disaster recovery capability to direct files to alternate sites which are in excess of 50 miles from the contractor’s site. The backup site shall assure timely delivery of services on a consistent basis; i.e. to assure the timely delivery of services on a consistent basis as compared to a regular delivery.

m. The contractor shall be able to produce and deliver drop copies of mailings which may be requested by SBA on an as-needed basis by the COTR or Contract Officer (CO). Copies shall be received within 24 hours from the download date. Requests for drop copies can be made by SBA using either zip code, loan number, or file type.

n. The contractor shall produce and deliver monthly invoices, including backup support data in a manner agreed upon between the CO, the COTR and the contractor at the contract entrance meeting conducted with the SBA. Invoices shall contain the work date, job identification, the item processed count by job type, additional postage, and CLIN rate. An activity summary shall be prepared to support the billing volumes for all type of processing conducted within the calendar month. At a minimum, the activity summary shall include a listing of each notice type processed, date of processing, volume of each data download type, and the CLIN rate.

Invoicing shall occur no more often than monthly and in arrears. Invoices shall be submitted to jaamscp.sba.gov . Invoicing shall include the activity summary to verify charges.

VI. Tasks

1. Envelope conformance: The contractor shall print SBA Forms and mail the items in a window envelope (#10 size without cellophane protector or a specific window envelope indicated by IRS for 1098, 1099-Misc and 1099-C reporting). The contractor shall include a return mail envelope (#9 size) as appropriate to each mailing. Additional inserts may be included if they are to be determined necessary by SBA. Correct formatting is required to assure that the address data aligns with the window opening of the envelope. A sample of each SBA notice is available for contractor reference.

2. SBA 1201 Notice forms shall be pre-printed, both front and back side, with specific wording in blue ink. SBA forms 1544 and 1078 are not pre-printed. Data inserted on the SBA forms 1201, 1544 and 1078 form shall be inserted using black ink. IRS forms 1098, 1099-Misc and 1099-C shall be downloaded and printed in accordance with IRS guidelines and the inserted data shall be printed in black ink.

3. Contract entrance conference: An entrance conference shall be held with the Contractor within 5 business days after the contract award date. At this meeting, both the Contractor and SBA will resolve any questions or concerns offered by either party. A contract kickoff meeting will be held within 10 days of this meeting.

4. A preliminary action plan is to be developed between SBA and the Contractor. This plan shall provide a description of action items to achieve printing, mailing and reporting goals, as well as the steps required to accomplish the tasks. The Contractor shall deliver a formal Plan of Action acceptable to SBA no later than ten calendar days from the date of the conference.

5. A monthly meeting between the SBA and contractor shall be held to review issues at hand involving the contract. The Contractor will be responsible for preparing a meeting agenda and meeting notes which will be shared between the Contractor and SBA. The conferences will be hosted by the SBA COTR and other SBA officials as required.

6. Any redesign or change to notices or envelopes or file delivery and verification procedures must be fully coordinated between the Contractor and SBA. If these changes affect the lockbox operations, the lockbox contractors must provide written certification that they are able to accommodate the changes. Testing for coupon processing with the lockbox contractors must be performed prior to the start of the contract and prior to implementation of any change in file delivery or coupon design.

7. The Contractor shall spend no more than 30 days from the date of contract award to set up data processing to comply with SBA specifications.

8. The Contractor shall notify the SBA COTR in writing and/or orally of any contract problems as soon as they are identified. The Contractor and SBA shall determine the best method to resolve each problem.

9. Points of contact and alternate points of contact for both SBA and the Contractor shall be identified at the Entrance Conference conducted by SBA with the Contractor. The information shall be reduced to written format and distributed to both the SBA and the Contractor.

Contractor conforms to Statement of Work requirements.

Task One – Envelope conformance.

Task Two – Form printing requirements.

Task Three – Entrance conference.

Task Four – Preliminary action plan.

Task Five – Monthly meeting.

Task Six – Coordination of redesign / change.

Task Seven – Data processing requirements Task Eight – Problem notice & resolution Task Nine – Formalization of points of contact

No special incentives or disincentives are a part of the performance-based statement of work. The main incentive will be SBA’s positive reports as a result of good contractor performance. The main disincentive with the additional cost to the contractor for reprinting due to inaccurate or incomplete printing runs.

VII. Contracting Officer’s Technical Representative

The SBA Contracting Officer will designate an SBA employee as the Contracting Officer’s Technical Representative (COTR) to monitor the contract performance and assist the Contracting Officer (CO) with specifically designated duties detailed in a written communication to the Contractor.

VIII. Contractor’s Facility

Throughout the life of the contract, the contractor shall maintain a secure facility for the performance of contractor work. Contractor’s facility shall be managed in a safe manner at all times. Contractor shall perform all printing and mailing activities on-site. Contractor shall lease or own equipment that can decode and encode encryption tapes. Contractor shall have appropriate arrangements for the secure disposal of items produced in the course of this contract, such as excess forms and any information containing borrower or lender identity.

IX. Contractor Employees - Wages / Security / Breach of Confidence

1) The Contract Service Act of 1965 applies to this Contract, and contractor employees shall be compensated accordingly.

2) Personal identity verification of contractor personnel -

(a) Contractor shall comply with Agency personal identity verification (PIV) procedures 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) Contractor shall insert this clause in all subcontracts when the subcontractor is required to have physical access to a federally-controlled facility and/or access to a federally-controlled information system.

3) Contractor personnel security clearance - Unless otherwise specified, all Contractor personnel shall submit to the COTR, one (1) fully completed Security Package consisting of the following items and SBA forms:

· Standard Form – 85P, Questionnaire for Public Trust Positions

· SBA Form 2044, Credit Report Release for Employment

· Form FD-258, Fingerprint Card or Electronic Fingerprints through OHCM

· SBA Form 1228, Computer Access Clearance/Security Form

· SBA For 1939, Position Designation Record

· Statement of Work or Position Description

· Form 2, Requisition for Supplies/Services or Budget Code

· Contractor Start Date

SBA COTR will complete the following for the Security Package:

· SBA Form 1939, Position Designation Record

· Sign the filled-in SBA Form 1228

Except to the extent the SBA grants a contract employee a temporary security clearance, the Contractor personnel’s Security Package must receive a favorable security background clearance from the SBA’s Office of Inspector General (“OIG”) prior to the personnel reporting to their assigned work site. If the COTR receives an unsuitable report on any of Contractor’s on-site staff after processing the Security Package, or if the Contract COTR finds any of Contractor’s on-site staff to be unsuitable or unfit for assignment, the Contractor shall be advised that the individual cannot continue to work or be assigned to work under the Contract. The Contractor shall immediately remove any such individual from performing SBA work.

4) Temporary security clearance - SBA shall have and exercise full and complete control over granting, denying, withholding, or terminating clearance for Contractor personnel. The SBA’s OIG may, as it deems appropriate, authorize and grant temporary clearance to Contractor personnel at the request of the SBA. However, the granting of temporary clearance to any Contractor personnel shall not be considered as assurance that full clearance will follow as a result or condition thereof and the granting of either temporary or full clearance shall in no way prevent, preclude, or bar the withdrawal or termination of any such clearance by the SBA.

SBA pays the out-of-pocket cost for security clearances for contractor employees.

Contractor personnel assigned to work on an SBA site will be required to sign a Confidentiality Agreement. Contractor personnel may deal with sensitive, personal, and confidential information in the performance of their duties. Contractor personnel shall not discuss the information they obtain in the course of duty with other individuals (including SBA employees, other contractors, and the public).

For security reasons, work performed pursuant to this contract may not be subcontracted out to another contractor or third-party entity.

XI. Transitioning

The parties recognize that there is a period of transition at the beginning of this contract and at the end. “Transition” refers to the transfer of the work performed pursuant to this SOW at the beginning of the contractor to Contractor. “Transition” also refers to the transfer of this work at the end of this contract back to the Government or to another contractor. Contractor agrees to cooperate and assist in all transitions required by this contract at no additional cost to the Government.

XII. Paperless Option

The SBA may decide to transition some or all of the forms which are a part of this contract to a paperless form of transmittal. This decision may occur at some time during the performance period of this contract. Contractor agrees to submit a priced technical proposal to the SBA, based on contractor’s pricing schedule and the perimeters of SBA’s plans. If the parties can reach an agreement as to price and terms, this contract may be modified to include an option for paperless transmission. Pricing will be evaluated based on the marketplace, the prices in this contract, and the prices offered by Contractor to its other customers. It is expected that pricing for the paperless option will include firm-fixed rates, based on level of effort (transmittal numbers). This potential option does not limit SBA’s ability to contract for paperless transmission services using another contract vehicle.

XIII. Attachments

· 1201 Notice, side 1 of 2

· 1201 Notice, side 2 of 2

· Santa Ana – 1201 Notice – Treasury Offset – side 1 of 2

· Santa Ana – 1201 Notice – Treasury Offset, side 2 of 2

· Santa Ana – Treasury Offset – Duplex Print Letter – side 1 of 2

· Santa Ana – Treasury Offset – Duplex Print Letter – side 2 of 2

· Birmingham – 1201 Notice – Treasury Offset – side 1 of 2

· Birmingham – 1201 Notice – Treasury Offset – side 2 of 2

· Birmingham - 1201 Notice – Treasury Offset / Duplex Print Insert – side 1 of 2

· Birmingham – 1201 Notice – Treasury Offset / Duplex Print Insert – side 2 of 2

· 1544 Message – side 1 of 1

· Statement of Notice of Maturity – SBA Form 1078 – side 1 of 1

· SBA Form 1098 – Borrower address is printed on reverse side of ensure name only shows in window – reverse fold – 2 pages

· IRS 1099 – Miscellaneous Form – Name/address is printed on the reverse side to ensure other information does not show in the envelope window – 2 pages

· IRS Form 1099-C – Name is printed on the reverse side to ensure only the name/address shows in the window - 2 pages

· Sample of #10 Envelope – side 1 of 2

· Sample of #10 Envelope – side 2 of 2

· Sample of Lockbox Return Mail Envelope for 1201 Notices – side 1 of 2

· Sample of Lockbox Return Mail Envelope for 1201 Notices – side 2 of 2

Statement of Work – SBA Financial Forms – Print and Mail Page 13