amendment_3_solicition_04252014_toni__.docx

Regulated Institutions Risk Oversight And Risk Oversight Support Services

Office of Capital Access/Office of Credit Risk Management

PART I – SUPPLIES OR SERVICES AND PRICES/COSTS

SERVICES

The Contractor shall provide services necessary to create an evaluation framework for conducting risk-based reviews of lenders that receive loan guarantees from the U.S. Small Business Administration (SBA) through the 7(a) loan program, and to assist with the performance of lender reviews, provide technical assistance with the administration of lender reviews, and track and manage data related to lender reviews. The Contractor shall also provide services to apply the evaluation framework to lenders selected by SBA’s Office of Capital Access / Office of Credit Risk Management (OCRM), and measure and benchmark the outcomes and impacts of services provided.

1. CONTRACT DEFINITION – INDEFINITE DELIVERY – INDEFINITE QUANTITY

This is an Indefinite Delivery - Indefinite Quantity Contract as defined at Subpart 16.504 of the Federal Acquisition Regulation (FAR), FAR Clause 52.216-22, Indefinite-Quantity. Services provided by the Contractor under this Contract shall be secured by the issuance of Task Orders placed in accordance with the following clauses: FAR 52.216-18, Ordering, and FAR 52.216-19, Ordering Limitations.

2. MINIMUM AND MAXIMUM QUANTITIES AND AMOUNTS FOR ORDER

The minimum quantity and/or amount to be ordered under this contract shall not be less than the minimum quantity and/or amount shown in the following table. The maximum quantity and/or amount to be ordered under this contract shall not exceed the maximum quantity and/or amount shown in the table. THE MINIMUM AND MAXIMUM AMOUNT IS FOR THE LIFE OF THE CONTRACT which includes the base year and all options periods exercised.

2.1. TYPE OF CONTRACT - HYBRID CONTRACT TYPE

The contract type is a hybrid. Task orders issued may contain Firm Fixed Price (FFP) or Fixed Unit Price (FUP) Contract Line Items (CLINS), with a cost-reimbursement line item for travel, or a combination of these types.

Task orders will be issued on a fixed price basis or fixed unit price basis. Orders may combine the two types if warranted, e.g. travel costs may be reimbursable under a fixed price order. Upon receipt of a request for a proposal, the Contractor shall provide a proposal of costs to be incurred, including direct labor and other direct costs. In doing so, the Contractor agrees that, unless otherwise specified in the request for proposal, reimbursable travel will be paid based upon Federal travel regulations in place at the time the travel takes place and will not have any fee added to it.

3. PERIOD OF PERFORMANCE BASE CONTRACT

The period of performance for this contract is one, one-year base period and four, one-year option periods.

Base period will begin on the date of award and completed twelve months after the date of award.

Option period 1 (1 year) NOTE: DATES WILL BE FILLED IN AT TIME OF AWARD Option period 2 (1 year) Option period 3 (1 year) Option period 4 (1 year)

PART II. IDIQ PRICING SCHEDULE -

4. CONTRACT LINE ITEM (CLIN)- PRICE SCHEDULE IS LOCATED AT ATTACHMENT 1-*NOTES: -FOR PROPOSAL PURPOSES FILL IN THE UNIT RATE FOR THE CONTRACT LINE ITEMS (CLINS) ON THE SF 1449AND SUBMIT THIS DOCUMENT.

-PRICE PROPOSAL FOR THE TASK ORDER SHALL BE COMPLETED ON THE TASK ORDER PRICING SCHEDULE AT ATTACHMENT 2. Price Proposal for the Task Order shall be completed on the Task Order Pricing Schedule on Attachment 4, Page and ALSO LOCATED ON ATTACHMENT 1 IS THE CONTRACT LINE ITEM (CLINS) STRUCTURE WITH QUANTITY ESTIMATES. - -THE MINIMUMS AND MAXIMUMS LISTED ARE FOR ESTIMATING PURPOSES AND ARE ONLY ESTIMATES !!! GUARNTEES ARE LISTED IN PARAGRAPH 2.0 ABOVE!

5. UTILIZE THE SF 1449 FOR PROVIDING PRICING ON THE BASE/PARENT IDIQ.

As total compensation for all services performed in accordance with the terms, conditions, and specifications stated herein, the Contractor will be paid according to the prices listed above per CLIN Structure or per negotiated level of effort per the Labor Rates listed below under paragraph 5.1 as negotiated as a fixed price on all Task Orders issued.

6. LABOR RATES

The Contractor shall perform negotiated task orders under this contract based on unit pricing the offeror provided on the SF 1449 and Attachment 1. Provide the labor categories, labor rates utilized to build the unit pricing. Each Labor category must list a corresponding Task from the PWS that it is associated. Additional lines may be added as needed.

NOTE: All labor rates submitted with the IDIQ task will be incorporated into this section upon award and shall be valid for the base period and option periods of the contract.

PART III – PERFORMANCE WORK STATEMENT

1.0 Purpose

The Contractor shall provide services necessary to create an evaluation framework for conducting risk-based reviews of lenders that receive loan guarantees from the U.S. Small Business Administration (SBA) through the 7(a) loan program, and to assist with the performance of lender reviews, provide technical assistance with the administration of lender reviews, and track and manage data related to lender reviews.

2.0 Background

The SBA is an independent agency of the United States, established on July 30, 1953, pursuant to the Small Business Act. The SBA derives its authority principally from the Small Business Act and the Small Business Investment Act.

The U.S. Small Business Administration (“SBA”) Office of Credit Risk Management (“OCRM”) is charged with risk management of the SBA’s lending programs. OCRM’s objective for lender oversight is to identify and analyze the risk profile of SBA’s lending partners and assign a specific level of concern to each lender.

The 7(a) Guaranteed Loan Program is the primary federal lending program devoted to small business in the United States. Established under Section 7(a) of the Small Business Act, as amended, the program extends a full faith and credit guarantee of the U.S. Government to lenders that make small business loans pursuant to SBA Loan Program Requirements.

3.0 Overview

OCRM’s strategy is to select 7(a) Lenders for Risk-Based Reviews (“RBRs”) based upon a broad set of risk attributes, so as to meet its mission of identifying, assessing and managing credit program risks related to eligibility, credit underwriting, servicing, and suspicious activity. To accomplish this, OCRM conducts extensive lender analysis combined with strategic on-site and off-site (virtual) review activities.

OCRM conducts risk based analyses of SBA's lending partners through strategic reviews of lending partners' activities including the performance of their SBA lending operations and their compliance with SBA Loan Program Requirements. The OCRM also assesses the quality of the overall SBA loan portfolio. Through this analysis, trends are identified and analyzed. As a result of this trend analysis and assessment, as well as, other analytical risk indicators identified, OCRM is able to better understand lender and portfolio performance. All of the tasks outlined in the Performance Work Statement, is critical to the effective oversight of SBA’s lending and investment partners and analysis of SBA's loan and investment programs.

4.0 Objectives

• SBA is seeking a Contractor who will provide innovative approaches to SBA’s oversight and monitoring processes, and Risk-Based Reviews of 7(a) lenders in accordance with 13 C.F.R. Part 120 and SBA SOPs 51 00 “On-Site Lender Reviews/Examinations” and 50 53 “Lender Supervision & Enforcement”, as amended from time to time. The Contractor will ensure that (1) SBA Loan Program Requirements as defined in 13 C.F.R. 120.10 are being followed by 7(a) Lenders, and (2) the assessments of individual 7(a) Lenders are provided at the best value possible to the SBA as well as to the 7(a) Lenders.

• SBA is seeking a Contractor who has an understanding of the existing process of SBA’s risk-based reviews in accordance with 13 C.F.R. Part 120 and SBA’s SOPs 51 00 and 50 53, as amended from time to time.

• SBA is seeking a Contractor who has an understanding of SBA’s Loan Program Requirements, including SBA regulations in 13 CFR Part 120 and SOPs applicable to loan writing, servicing and liquidating (i.e., SOPs 50 10 (5) “Lender and Development Loan Programs” and 50 57 “7(a) Loan Servicing and Liquidation”, as amended from time to time.)

• SBA is seeking a Contractor who can provide services consistent with the practices utilized by the various federal banking regulators and servicer rating agencies as part of its overall lender oversight and monitoring efforts. The Contractor must have industry accounting designation, experience conducting large scale risk management, risk based reviews, and internal control systems capabilities. The Contractor shall provide support consistent with these objectives.

• SBA is seeking a Contractor who shall ensure that the SBA is provided with services and models that are current, relevant, and reflective of federal government, regulatory and industry best practices, given the constant evolution of generally accepted accounting principles and federal banking regulations.

5.0 Abbreviations and Definitions

5.2 Definitions

5.2.1 Business Day: Any day other than a Saturday, Sunday, a Federal holiday or other day on which the Federal Government, by law, or executive order is closed.

5.2.2 Contracting Officer: The SBA Official authorized to execute and administer the contract on behalf of SBA and includes any duly appointed successor or authorized representative.

5.2.3 Contractor: The individual, partnership, corporation, or other entity, which is the party subject to the terms and condition of this contract.

5.2.4 Day: Calendar day unless otherwise stated.

5.2.5 Deliverables: If a deliverable date falls on a weekend or federally recognized holiday, the due date shall be the next business day. Unless otherwise specified SBA will review all deliverables and provide comment’s generally within 30 days after receipt of either a draft or a final deliverable.

5.2.6 Delegated Lender: An SBA Lender that is authorized to make credit determinations without prior review by SBA. All such determinations must comply with SBA requirements and are subject to subsequent review by SBA.

5.2.7 Findings: Significant issues identified during Risk Based Reviews (e.g. violations of SBA Loan Program Requirements of the governing agreement or applicable regulation. Findings must be specific and supported by documentation.

5.2.8 Key Personnel: Personnel specifically considered to be essential to the work being performed under this contract are defined at Paragraph 11.

5.2.9 Lender Profile Assessment (LPA): An assessment that is compiled from internal SBA data sources and public federal regulatory information.

5.2.10 Loan Program Requirements: Requirements imposed upon Lenders by statute, SBA regulations, any agreement the Lender has executed with SBA, SBA SOPs, official SBA notices and forms applicable to the 7(a) loan program, and loan authorizations, as such requirements are issued and revised by SBA from time to time.

5.2.11 PARRiS: Portfolio Performance, Asset Management, Regulatory Compliance, Risk Management and Special Items Risk Assessment Framework.

5.2.12 Performance Work Statement: Describes the requirement in terms of measurable outcomes rather than by means of prescriptive methods.

5.2.13 Portfolio Stratification Analysis: an analysis of SBA 7(a) loan portfolio to determine risk.

5.2.14 Pre-Plan: A Microsoft Word document that documents the procedures to be performed to meet the review objectives and review methodology. The objective of the pre-plan is to ensure that each party is well prepared for an efficient and productive review.

5.2.15 Quality Assurance: A program for the systemic monitoring and evaluation of the various aspects of a project, service, or facility to ensure that standards of quality are being met.

5.2.16 Quality Control: Those actions taken by a Contractor to control the production of outputs to ensure that they conform to the contract.

5.2.17 Quarter – A quarter will be defined as the first of January through the end of March, first of April through the end of June, first of July through the end of September, and first of October through the end of December.

5.2.18 Regulated Institution – an institution that provides financial services that administer the SBA 7(a) loan program.

5.2.19 Risk Assessment Framework: The OCRM PARRiS risk framework that includes various components of risk assessment for each 7(a) Lender.

a) Portfolio Performance: The “P” in the PARRiS Risk Assessment Framework involves, but may not be limited to, a review of lenders’ SBA loan portfolio performance statistics (12 month and 5 year default rates and other performance measurements), as well as review of cash flow impact to SBA (cumulative net cash flow yield), and its guarantee obligations.

b) Asset Management: The “A” in the PARRiS Risk Assessment Framework involves, but may not be limited to, an assessment of each lender’s ability to manage SBA loans through origination, underwriting, servicing, and resolution stages of the lending lifecycle. Specifically, to measure a lender’s performance in these processes, SBA may review indicators related to: (a) high risk originations; (b) stressed loans; (c) early problem loans; (d) early defaults; (e) loans in liquidation and active purchases. SBA may also review loan files and all policies and procedures related to SBA lending to ensure the lender is adhering to SBA’s and its own asset management requirements and prudent lending standards.

c) Regulatory Compliance: The “R” in the PARRiS Risk Assessment Framework involves, but may not be limited to, a review of each lender’s compliance with SBA Loan Program requirements. In particular, SBA will review compliance with loan eligibility; timely and accurate submission of all 1502 reports; submission of recovery, on-going, and upfront guaranty payments; oversight fees submission; and compliance with corrective actions required.

d) Risk Management: The “Ri” in the PARRiS Risk Assessment Framework involves but may not be limited to, determining the adequacy of risk management systems, capability of management, the soundness of policies and procedures, and the effectiveness of internal controls. SBA will also review the bank’s overall capital and non-performing asset ratios, as well as their SBA Lender Risk Rating(s), as well as SBPS score(s). It may also include information on the Primary/Prudential Regulatory Institution. (i.e. FDIC and OCC). SBA may also review each lender’s, corporate governance structure, SBA operating plan, quality control processes (including fraud deterrence and detection practices), risk classification system, and internal oversight strategy over the SBA loan portfolio.

e) Special Items: The “S” in the PARRiS Risk Assessment Framework involves, but may not be limited to, a review of risk areas that do not fall into any of the above categories, but may pose risk to SBA, such as lenders’ use of loan agents and lender service providers, secondary market sales activity, franchise lending, loan participations, pledges, fraud, waste, and abuse issues, and acquisitions of SBA portfolios.

5.2.20 Risk Assessment Memorandum: Integral to Contractor's planning stage for any specific Lender review (regardless of whether the review is a PFR or a PTR). This document serves as the work order on what is to be done and is specific to each Regulated Institution to be reviewed. It establishes specific objectives for the review.

5.2.21 Risk Based Reviews: An in-depth analytical assessment of a financial institution’s administration of the SBA 7(a) loan program (i.e. – PAR, PTR, PFR,)

5.2.22 SBA: The U.S. Small Business Administration. The terms “Small Business Administration,” “SBA” and the “Government” shall be synonymous and may be used interchangeably in this contract.

5.2.23 Technical Monitor: The Technical Monitor (TM) is subordinate to the COR and assigns work associated with regions, reviews, etc. and assists the COR in monitoring the Contractor’s performance. The TM may provide project-specific technical clarification, assistance and direction to the Contractor in the performance of duties of this contract. The TM provides technical advice and assistance to the COR.

5.2.24 Technical Security Plan: A formal plan that identifies the plan of action to implement and secure the various systems outlined in the Performance Work Statement.

5.2.25 Virtual Data Room: An online repository of information, created by or provided by the Contractor that is used for the storing and distribution of documents.

6.0 Contractor Furnished Items

The Contractor shall furnish the necessary personnel, materials, travel, facilities that fully functional offices and meeting space, teleconference capacities, share space abilities to allow interface between contractor key personnel and SBA staff, and services and shall otherwise do all things necessary for, or incidental to, the performance of the tasks set forth in this contract. Any additional specific requirements and any government furnished items or services will be identified in each task order.

The Contractor shall appoint a Project Manager and an Alternate Project Manager. The Alternate Point of Contact shall be capable of assuming the role of the Main Point of Contact without delays due to any lack of knowledge/information, which could reduce the level of efficiency necessary to ensure task order performance. NOTE: The Project Manager and the Alternate Project Manager of Contact SHALL be employees of the Contractor and cannot be employees of a subcontractor or consultant. The Project Manager and an Alternate Project Manager are considered part of the KEY PERSONNEL and shall have the same qualifications as listed in paragraph 11. .

7.0 Government Furnished Property and Services

SBA will provide the Contractor with seating in its office facilities in Washington D.C., Kansas City, MO, and Citrus Heights, CA including office space, furniture, office equipment and Agency-approved software and hardware in order to perform some of the services detailed in this Performance-Based Statement of Work. Only Contractor employees who have completed all security clearance requirements and have been cleared through SBA OIG and who work at SBA facilities will have access to SBA systems.

8.0 Performance Work Statement

The Contractor will provide SBA with assistance providing risk oversight services; access to either a (developed or provided)Management Workflow and Tracking System/Virtual Data Room and maintain a Management Workflow and Tracking System/Virtual Data Room; and technical assistance in accordance with the general scope outlined herein. The Contractor will be required to provide SBA with a detailed description of its proposed methodology for review, coordination, tracking, and follow-up and its plan for implementing its methodology for all tasks identified. The Contractor is expected to work collaboratively with SBA employees, including OCRM and the Office of Capital Access (“OCA”)

Below in sections 8.1, 8.2 and 8.3, are general descriptions of the major services associated with this contract. Section 9 contains a more detailed description of all tasks and deliverables associated with the contract.

8.1 Risk Based Oversight/Review

• The Contractor will assist SBA in conducting Risk Based Reviews (RBRs) that will assess the current financial institution practices against both internal policies and procedures accepted industry practices, and SBA Loan Program Requirements. At a minimum, Risk Based Reviews will include the extraction and analysis of data from various SBA data warehouses and lender files, plus file reviews, operating reviews and possible site visits. Access to these data warehouses will be provided at post award. The Contractor shall prepare a report addressing each risk assessment framework area for PARRiS (Portfolio Performance, Asset Management, Regulatory Compliance, Risk Management and Special Items) Protocol. (See Attachment 5 Exhibits 1- 10)

• The Contractor will provide risk oversight through 7(a) Lender monitoring activities, as defined by SBA, for approximately 4,500 7(a) Lenders annually. These monitoring activities include participating in the selection of Lenders for PAR reviews for a defined population of at least 100 7(a) Lenders annually based on risk characteristics. The defined population is updated annually and the PAR reviews will be based upon risk characteristics as determined by SBA. These monitoring activities also include conducting Delegated Lender Authority Review Assessments of at least 1200 delegated lenders on a biennial schedule. These numbers will vary each fiscal year and will be further defined at the task order level. The numbers in this paragraph are estimates and are not guaranteed.

• The Contractor shall prepare a report that outlines any weaknesses or deficiencies identified during the review and make recommendations for improvement as applicable. The report shall discuss the methodology used for determining the Contractor’s findings. The Contractor shall produce and prepare other ancillary reports as requested by SBA.

• Included in these tasks are conducting RBRs both on-site at lender location, through electronic means, and other possible locations that are distant from lender location, which shall include established SBA office locations.

8.2 Management Workflow and Tracking System and Virtual Data Room

• The Contractor will be responsible for providing access to a Management Workflow and Tracking System and Virtual Data Room that are IT web-based, to support the coordination of the lender review/monitoring and corrective action process. The Management Workflow and Tracking System and Virtual Data Room will include and incorporate information obtained through the performance of related contract functions. The Management Workflow and Tracking System/Virtual Data Room, will include, at a minimum, lender (client) contact information and a record of communications with the lender client; as well as, tracking of the risk-based review process and corrective action review follow-up.

• The Contractor will be responsible for ensuring that the Management Workflow and Tracking System and Virtual Data Room is internet accessible. The Contractor must demonstrate through the Contractor’s Technical Security Plan its adherence to SBA’s security requirements.

• The Contractor will be responsible for ensuring the Virtual Data Room is accessible to SBA employees, its authorized representatives, and to individual lenders within their respective storage locations. It must provide for upload of information by all users, and accessibility on-line, as well as allowance for download permissions and other possible communications as defined in the Security Section of this document. Through the use of digital media, the Contractor must ensure that SBA has access to the data contained in the Management Workflow and Tracking System and Virtual Data Room even when this contract has ended. SBA owns the data that will be entered into the Virtual Data Room and expects delivery of that data as detailed below in the deliverables chart.

• The Contractor will also be required to develop or provide and maintain the Virtual Data Room so that it an integrated data room warehouse that is accessible to SBA-users 24 hours a day through a secure Internet website. The Virtual Data Room/data room warehouse will be used to file and catalogue data, images, and information developed.

• The Contractor shall implement a work paper retention client management service. The Contractor must ensure that has SBA has access to all work papers even when this contract has ended.

• The Contractor shall ensure that SBA has access for up to 50 users for the Management Workflow and Tracking System and Virtual Data Room.

8.3 Quality Control Plan / Quality Assurance Plan

The Contractor shall provide a Draft Quality Control Plan / Quality Assurance Plan (QCP/QAP) with its proposal that addresses both the Parent IDIQ and Task Order 0001.

The contractor shall develop, implement, and execute a detailed QCP / QAP that provides for inspections of all services and deliverables to verify conformance to acceptability standards specified in the task order. The contractor shall provide a Draft of its QCP/QAP as part of their proposal and then after award deliver a Final copy to the COR via email not later than 7 days after the post award conference. The QCP/QAP is considered a “living document” and as such, shall be revised by the contractor as its conditions changes. The QCP/QAP shall include provisions for responding to and incorporating technical direction and comments from the COR and TMs; descriptions of the techniques to be employed for producing and validating services and deliverables conforming to the acceptable quality standards in the contract, and a description of “checks and balances” that shall be used to ensure the government receives quality services.

Within 30 days of the contract Award, the Contractor shall provide a Final QCP/QAP that will provide for complete quality control for all Reports, Letters, and Agreements to be issued. The QCP/QAP shall include a defined process and personnel identification by title. The QCP/QAP shall also include Communication Plan to ensure effective communication between SBA Personnel and Contract Analyst/Reviewers/Writers and to ensure the objectives of the contract are being met. The QCP/QAP also

Plus address the concerns listed below;

• The development and implementation of

- A system of internal controls for managing the Management Workflow and Tracking System and Virtual Data Room as well as assuring timely delivery of all tasks.

· Procedures to identify and bring to the attention of SBA any potential conflicts of interest that exist as a result of providing risk oversight services.an information control policy that includes confidentiality requirements.

• The Contractor is obligated by the terms of its contract (including any corresponding confidentiality agreement) to (i) safeguard the Confidential Information as set forth in this Agreement; (ii) return, or certify to the SBA the destruction of, all copies of the Confidential Information at the conclusion of its engagement with the SBA; (iii) not use the Confidential Information for any purpose other than in connection with its engagement with the SBA; and (iv) not disclose the Confidential Information outside of the Contractor without the prior written approval of the SBA.

Deliverable: Provide a Draft QCP / QAP with the proposal and within 30 days after Award provide the Final QCP/QAP. The contractor shall develop, implement, and execute a detailed QCP / QAP that provides for inspections of all services and deliverables to verify conformance to acceptability standards specified in the task order. The contractor shall provide a Draft of its QCP/QAP as part of their proposal and then after award deliver a Final copy to the COR via email not later than 7 days after the post award conference. The QCP/QAP is considered a “living document” and as such, shall be revised by the contractor as its conditions changes. The QCP/QAP shall include provisions for responding to and incorporating technical direction and comments from the COR and TMs; descriptions of the techniques to be employed for producing and validating services and deliverables conforming to the acceptable quality standards in the contract, and a description of “checks and balances” that shall be used to ensure the government receives quality services.

9.0 Performance Work Statement Tasks

9.1 Technical Assistance and Oversight Activity

The Contractor will be required to provide;

• SBA with technical assistance in the assessment of 7(a) Lenders overall management of their SBA loan programs from file review information collected, as well as from other data available to the SBA and maintained in the data room warehouse.

• Technical assistance for the Delegated Lender Review and Assessment to include, at a minimum, administrative processing of records and documents.

• OCRM technical assistance in effectively and efficiently monitoring the performance of the 7(a) programs through SBA loan and lender portfolio stratification for strategic planning of risk mitigation activities, annual audit plan development, selection of lenders for enhanced assessment activities, and planning and conducting risk-based reviews (“RBRs”) using SBA’s risk assessment framework.

9.2. Task 1: Technical Assistance - CLINS 0001, 1001, 2001, 3001 and 4001

The Contractor will be required to provide SBA with technical assistance in the assessment of the SBA 7(a) loan program. The tasks shall include at a minimum:

Task 1A: Delegated Lender Authority Technical Assistance

Delegated Lender Authority Review Assessments

The Contractor shall provide technical assistance in the review, assessment, and processing of all Delegated Lender Authority Nominations and Renewals processing. The Contractor shall perform the administrative research necessary, to include but not be limited to, collecting all required information and certification from the lender and District Office to assist the SBA in determining eligibility and qualification for the specific status being sought.

Deliverable: The Contractor shall prepare and distribute the Delegated Lender Assessment Review Letters and Agreements. This is on-going and the contractor will work with SBA personnell on the deliverable. There is no set schedule for the contractor; you will assist in the process. Deliver to SBA COR and TM.

Delegated Lender Authority Renewal Lender Portfolio Analysis

The Contractor shall perform a Delegated Lender Authority portfolio review and analysis of all lenders with delegated authority. This will be completed by tracking of the expiration dates for Delegated Lender Authority statuses for all SBA Lenders. Each month the Contractor will provide to SBA a list of all lenders with authorities that will expire in three months (eg,. - in January of each year, provide a list of all lenders with authorities expiring in April of that same year and in February of each year, provide a list of all lenders with authorities expiring during May of that same year).

Deliverable: The analysis will be conducted and provided to SBA on the first of the month. This must be done three months in advance of the lenders Delegated Lender Authority expiration date. The Contractor shall provide a formal written analysis.

Task 1B: Lender Oversight Technical Assistance

Lender Oversight Technical Assistance includes the following work at a minimum;

Identifying Lender Portfolio risks, for the SBA 7(a) Portfolio through analysis of SBA data. (data will be provided at post award.);

Assisting in the developing a Portfolio Stratification Analysis;

Assisting in the development of selection criteria for a Annual Risk Management Oversight Plan- current plan will provided at or about post award;

Preparation of individual 7(a) Lender Profile Assessments;

Technical assistance in developing the content of individual 7(a) Lenders PARRiS Analytical Review plans;

Assisting in the developing and maintaining the corrective action plan process;

Tracking of SBA portfolio trends and performance via a dashboard;

The development of a solution that provides data and business analytics that will be used to support the organizational strategic goals; and

Documenting and assessing the process for delegated lenders renewal of authorities.

Deliverable: The Contractor shall provide a monthly report on the technical assistance provided. A report is due five days after the end of the month unless further defined at the Task Order level.

9.2 Task 2: PARRiS Analytical Review (PAR) - CLINS 0002, 1002, 2002, 3002 and 4002

PARRiS Analytical Reviews are performed using a standard Lender Profile Assessment (LPA) (See Exhibit 1), and are designed to 1) measure the level of risk the 7(a) federally regulated lender poses to SBA, and 2) determine the scope of any additional assessment necessary (e.g., through a PTR or PFR). The purpose of the PAR is to identify whether additional assessment is necessary and to inform decisions regarding delegated lender authorities.

a) Populate Lender Profile Assessment (LPA) – Contractor shall populate the LPA with information pulled electronically from internal SBA data sources and public federal regulatory information and review this information for accuracy, consistency, and completeness. (See Exhibit 1)

b) Contractor will obtain review information from lender files, lender loan data information and other lender information, from SBA, and outside sources (e.g., previous RBR findings and corrective actions, SBA processing and liquidation center input, lender’s latest strategic plan and organizational chart, lender’s policies and procedures, and copies of audits and independent loan reviews).

c) Contractor will perform initial analysis (using for example the LPA and information obtained).

d) Contractor will nclude at a minimum, full narrative and analysis based on the PARRiS protocols ready for delivery to SBA team analyst. The narrative should include relevant observations, findings and corrective actions as applicable, and recommendations. The Contractor must include review of previous RBR findings and corrective actions, SBA processing and liquidation center input, lender's latest strategic plan and organizational chart, lender’s policies and procedures, and copies of audits and independent loan reviews. Report should also include Contractor's recommendation for an additional PARRiS Targeted Review (PTR) or PARRiS Full Review (PFR), as applicable. If PTR or PFR is recommended, this recommendation should include an assessment of lender's ability to submit loan information electronically to allow for a "virtual" review.

e) Supplemental PAR Reports per lender – the Contractor shall provide any supplemental reports, if the SBA deems that supplemental review work is necessary.

Deliverable: Draft PARRiS Analytical Review (PAR) Report in accordance with the following specification. Within two (2 days of receipt of a work order from the Technical Monitor the Contractor shall populate, analyze, and complete the Lender Profile Assessment. The Contractor must also prepare an Executive Summary that must include all identified findings, weaknesses, corrective actions, and recommendations. Within two (2) days from the receipt of the task order the Contractor must also prepare the Draft PARRiS Analytical Review Report and deliver it to the Technical Monitor via designated Virtual Data Room.

Deliverable: Final PARRiS (PAR) Analytical Review Report in accordance with the following specification. The Contractor receives Technical Monitor comments to the initial Draft PARRiS Analytical Review Report; the Contractor shall incorporate the Technical Monitor comments into the Final PARRiS Analytical Review Report and deliver to Technical Monitor via designated Virtual Data Room within 2 days. (See Exhibit 4)

9.3 Task 3: PARRiS Targeted Review (PTR) -CLIN 0003, 1003, 2003, 3003 and 4003

The Contractor shall assist SBA 1) in performing a review of one or more benchmark elements, risk elements, or flag areas identified in specific components of PARRiS requiring a focused scope of review for the identified component, and/or 2) with internal requests (e.g. supervision and enforcement unit or other SBA Offices) and/or external requests (e.g. GAO, Congress, etc.) regarding identified high risk issues requiring a focused scope of review for the identified PARRiS component. The Targeted Review is performed either on-site or virtually using information from lender files, lender loan data information from and other lender information, SBA, and outside sources. If the lender is able to provide information to SBA and the contractor in a secure and acceptable manner, SBA generally prefers the use of virtual reviews in order to reduce the costs to the lenders. The Contractor shall provide a formal written report and analysis of the benchmark elements, risk elements, or flag areas reviewed, and any deficiencies identified must be cited with the corresponding SBA Loan Program Requirement.

Deliverable: Each PTR will result in a formal proprietary report, of varying size and scope. A draft will be due to the COR no more the 15 days after issuance of either the Task Order or Assignment of PTR by the Technical Monitor to be finalized at the Post Award. The final will be due 5 days after receipt of comments from the SBA.

9.4 Task 4: PARRiS Full Review (PFR) - CLIN 0004, 1004, 2004, 3004 and 4004

Based on OCRM’s PAR results, OCRM may determine the need for a PARRiS Full Review. In addition, if a lender has never been reviewed by the SBA’s Office of Credit Risk Management or if a lender has not been reviewed for a long period of time (as determined by SBA), a PARRiS Full Review may be conducted. A PARRiS Full Review requires an on-site visit to relative review location(s). SBA will determine the number of on-site business days required to complete the report based on the size and complexity of the SBA portfolio. Contractor maybe required to also obtain information from lender files, lender loan data information and other lender information, SBA, and outside sources. All elements of the PARRiS Risk Assessment framework will be reviewed.

Deliverable: Each PFR will result in a formal proprietary report. A draft will be due to the COR no more the 30 days after issuances of either the Task Order or Assignment of PFR by the TM to be finalized at the Post Award. The final report will be due five days after receipt of comments from the SBA.

9.5 Task 5: Specialty Review - CLIN 0005, 1005, 2005, 3005 and 4005

The Contractor shall assist in the monitoring and tracking of supervision and enforcement activities. The Contractor shall perform a Specialty Review, which may include fraud and forensic accounting analysis. A Specialty review may be required as a result of noncompliance with corrective action requirements, special lender requests, borrower fees complaints, OIG hotline and SBA District Office referrals, and/or risk factors that indicate fraud, waste, or abuse.

The Draft Specialty Review Report shall be prepared by the Contractor and delivered to the Technical Monitor via designated Virtual Data Room within 30 days from the end of the review.

Upon the Contractors receipt of Technical Monitor comments to the initial Draft Specialty Review Report, the Contractor shall incorporate the Technical Monitor comments into the Final Specialty Review Report and deliver to Technical Monitor via designated Virtual Data Room within five (5) days.

Deliverable: The Contractor shall provide a formal written report and analysis of the Lender reviewed. To be defined at the Task Order level.

Deliverable: Provide DRAFT Specialty Review Report as specified above.

Deliverable: Provide Final Specialty Review Report as specified above.

9.6 Task 6: Partial Loan File Review (Ad Hoc) - CLINS 0006, 1006, 2006, 3006, and 4006

The Contractor shall perform partial compliance and/or credit review of loans limited to a specific area as defined in the task order (e.g., eligibility, appraisal, credit memo underwriting, loan authorization, business valuation, liquidation, servicing follow-up, etc.).

The Draft Partial Loan File Review Report shall be prepared by the Contractor and delivered to the Technical Monitor via designated Virtual Data Room within fifteen (15) days from the issuance of the Risk Assessment Memo.

Upon receipt of Technical Monitor comments to the initial Final Partial Loan File Review Report, the Contractor shall incorporate the Technical Monitor comments into the Final Partial Loan File Review Report and deliver to Technical Monitor via designated Virtual Data Room within five (5) days.

Deliverable: The Contractor shall provide a formal written report and analysis of the loans reviewed. To be defined at the Task Order level.

Deliverable: Provide Draft Partial Loan File Review Report as specified above.

Deliverable: Provide Final Partial Loan File Review Report as specified above.

9.7 Task 7: Full Loan File Review (Ad Hoc)- CLINS 0007, 1007, 2007, 3007, and 4007

The Contractor shall perform compliance and credit administration review of loans, in increments of five, including an assessment of underwriting.

Deliverable: The Contractor shall provide a formal written report and analysis of the loans that were reviewed. To be defined at the Task Order level.

9.8 Task 8: Loan Agent Review (Ad Hoc) - CLINS 0008, 1008, 2008, 3008, and 4008

The Contractor shall assist SBA in performing a loan agent review if the lender uses agents/lender loan service providers. The Contractor shall compare the list of agents/lender loan service providers provided by the lender with SBA Forms 159 submitted to SBA by lender and search for agents in a database of debarred individuals and entities. The Contractor shall determine if any agents are debarred and if the lender is providing 159s on loans as compared to what they provided in data tape. The Contractor shall address the lender's overall use of loan agents in loan production. The Contractor shall perform research (internet searches, etc.) necessary to evaluate the integrity of the loan agent or the SBA assistance provided. In addition, if requested by SBA, the Contractor shall confirm information given by the loan agent to the lender. This could include a visual observation of the loan agent’s place of business, verification that a business actually exists on a loan referred by the loan agent, and/or verification of any loan documents provided for the SBA loan.

The Draft Loan Agent Review Report shall be prepared by the Contractor and delivered to the Technical Monitor via designated Virtual Data Room within fifteen (15) days from the issuance of the Risk Assessment Memo.

Upon receipt of Technical Monitor comments to the initial Draft Loan Agent Review Report, the Contractor shall incorporate the Technical Monitor comments into the Final Loan Agent Review Report and deliver to Technical Monitor via designated Virtual Data Room within five (5) days.

Deliverable: The Contractor shall provide a formal written report and analysis (including photographs, interview write-ups, etc.) of the information reviewed. The Contractor shall provide a formal written report and analysis on the Lender reviewed. To be defined at the Task Order level.

Deliverable: Provide Draft Loan Agent Review Report as specified above.

Deliverable: Provide Final Loan Agent Review Report as specified above.

9.9 Task 9: Agreed Upon Procedures (AUP) Review (Ad Hoc)- CLINS 0009, 1009, 2009, 3009 AND 4009

The Contractor shall assist SBA in performing a review of the audit/assessment submitted by the lender. The Contractor shall complete sample testing on the work performed and determine the adequacy of the work product.

The Draft Agreed Upon Procedure Review Report shall be prepared by the Contractor and delivered to the Technical Monitor via designated Virtual Data Room within twenty (20) days from the issuance of the Risk Assessment Memo.

Upon receipt of Technical Monitor comments to the initial Draft Agreed Upon Procedures Review Report, the Contractor shall incorporate the Technical Monitor comments into the Final Agreed upon Procedures Review Report and deliver to Technical Monitor via designated Virtual Data Room within five (5) days.

Deliverable: The Contractor shall provide a formal written report and analysis to ascertain whether:

Assertions and objectives were met;

Testing and results are accurate; and report is reliable.

The Contractor shall provide a formal written report and analysis on the Lender reviewed. To be defined at the Task Order level.

Deliverable: Provide Draft Agreed-Upon Procedures Report as specified above.

Deliverable: Provide Final Agreed-Upon Procedures Report as specified above.

9.10 Task 10: Management Workflow and Tracking Systems - CLINS 0010 - ONE TIME CHARGE FOR SOLUTION THEN THE MANAGEMENT IS PART OF CLIN 0001

The contractor must assume current systems that that SBA is currently utilizing for tracking workflow as well as Document Management, Delegated Lender Authority, Corrective Actions Tracking, systems include Foxpro, excel, Access Database, Partner Information Management System (PIMS) and other SBA systems.

Task 10A: PARRiS Document Management System (PDMS)

The Contractor shall provide a document management and workflow tracking solution that supports, the above systems and at a minimum:

The Contractor shall implement a solution that serves as a Virtual Data Room to store electronic documents in a data store/warehouse.

The Contractor shall implement a solution that tracks all forms of documents SBA will accept for uploading --all versions of Microsoft Office.

The Contractor shall implement a solution that utilizes workflow to track the lender oversight process from beginning to end. The Contractor will be responsible for all data upload of all completed work papers. Work papers uploaded must be readable.

Task 10B: Delegated Lender Authority Management System (DLAMS)

The Contractor shall provide a document management workflow and tracking solution that supports at a minimum:

Utilizes workflow to track actions that upcoming pending and completed; and

• Maintain a system of record for all Delegated Authority actions by type (i.e. – nominations, renewals etc.)

Task 10C: Corrective Actions Tracking System (CATS)

An Access database is currently being used to track Corrective Actions. The Contractor shall review, improve, and implement a more robust system in the form of a work paper retention client management service or other solution to track corrective action follow-up. The solution will include at a minimum a system which incorporates an entry screen to allow SBA users to enter new review findings, a screen to record information received from a lender and any pertinent analysis, a section to record routine contact and communication notes, a tickler system to test corrective actions, and a report function that allows basic reports to be generated from the system.

Deliverable: The Draft Technical Security Plan is due 30 days after post award. Final Technical Security Plan is due ten days after receipt of edits from the COR. All of the systems should be in place within 30 days of contract award.

9.12 Task 11: Analysis of Delegated Lender Process - CLINS 0011, 1011, 2011, 3011, and 4011

The Contractor shall provide an in-depth analysis of the Delegated Lender Authority review process identifying strengths and weaknesses and providing recommendations on ways to streamline the process and implement efficiencies.

Deliverable: A Delegated Lender Authority Review Process Analysis Report is submitted. Due 30 days after Post Award.

9.13 Task 12: Biannual Analysis of the Oversight Program and Process -CLIN 0012, 1012, 2012, 3012 and 4012

The Contractor shall provide an in-depth analysis of the SBA Oversight Program and Process for the 7(a) loan program, identifying strengths and weaknesses, and providing recommendations on ways to make the oversight program more efficient.

Deliverable: The report will be due October 1 and April 1 of each year.

NOTE: TASK 13 and 14 ARE NOT SEPARATELY PRICED

9.14 Task 13: 7 (a) Lender Oversight Review Requirements

Task 13A: Develop, Create and Maintain a Loan Sampling Plan

The Contractor will be required to develop review sampling standards and create a loan sampling plan.

The Contractor shall define two groups for sampling loan elements to list and test as part of the evaluation of the review. The outcome is defined by the Contractor based on its risk assessment and knowledge gleaned from the Technical Monitor and/or SBA Financial Analyst(s), or problematic issues as described in the RAM and Pre-Plan.

Deliverable: Provide Review Sampling Standards within 30 days of contract award. And provide a detail detailed loan sampling plan - due date to be defined at the Task Order Level.

Task 13B: Pre- Plan Development

The Contractor will develop a Pre-Plan format, as a Word Document, to be used for all reviews within 10 days of the award of the contract. (See Exhibit 2)

Deliverable: Pre-Plan format delivered within 10 days of the award of contract.

Task 13C: Pre-Plan

Within five (5) days of receipt of the Risk Assessment Memo from the Technical Monitor, the Contractor shall prepare a Word Document as the Pre-Plan outlining its…