OCRM_Solicitation06132014_amend8.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 ATTACHMENT 1, SUBMIT THESE DOCUMENTS.

-PRICE PROPOSAL FOR THE TASK ORDER SHALL BE COMPLETED ON THE TASK ORDER PRICING SCHEDULE AT ATTACHMENT 3. 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 ATTACHMENT 1 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 6. as negotiated as a fixed price on all Task Orders issued.

6. LABOR RATES

All task orders issued against this contract will be firm-fixed price. Tasks will be either based on a per unit price agreed upon with the award of the IDIQ contract or will be based on proposed labor categories and hourly rates agreed upon with the award of the IDIQ contract. Please see section 6 of this solicitation for further information on how to propose pricing for tasks based on labor categories and rates.

Tasks 1, 2, 3, 4, 6, 7, 10, 11, 12, and 15 are based on per unit pricing. For task 1, offerors should propose a monthly price for technical assistance. The costs associated with tasks 18, 19, and 21 should be included in the proposed monthly price for task 1. For tasks 2, 3, 4, 6, and 7, offerors must propose a per review price. Costs associated with tasks 13 and 14 should be included in the proposed per review price for tasks 2, 3, 4, 6, and 7, as tasks 13 and 14 must be completed as part of each review. The proposed price for task 10 should be per order and is estimated to be ordered once per year of contract performance. The proposed price for task 11 is per order for delegated lender process analysis and it is estimated that this task may be ordered once or twice a year, or more a year of contract performance. The proposed price for task 12 is per biannual analysis of oversight program and process, which is estimated to be ordered once per year of contract performance for two a year. The proposed price for task 15 is per assessment report and it is estimated that an assessment report will be ordered quarterly or 4 times per year of contract performance. The per unit pricing for tasks 1, 2, 3, 4, 6, 7, 11, 12, and 15 must be listed in the SF 1449 and Attachment 1. Additionally, if the task order RFP at Attachment 2 orders any of the tasks listed here, then the pricing for those tasks should be listed in the offeror’s pricing proposal for the task order award (Attachment 3). -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 5.16. as negotiated as a fixed price on all Task Orders issued.

TASKS BASED ON LABOR CATEGORIES AND RATESLABOR RATES

Some of the tasks described in this solicitation are priced based on a fixed price, which will be agreed upon with the award of task orders placed against the IDIQ contract. For certain tasks associated with the contract, offeror’s must provide their proposed labor categories and hourly pricing in response to the IDIQ RFP by completed the SF 1449 and Attachment 1. If a task order RFP is issued for one of those tasks, the offeror must propose the number of hours and individuals necessary to complete the tasks, based on the agreed upon labor categories and hourly pricing. The resulting task order award is a firm-fixed price award.

The following tasks are priced based on labor categories and hourly rates agreed upon in the IDIQ contract: task 5, task 8, task 9, task 16, task 17, and task 22. If any of these tasks (5, 8, 9, 16, 17, or 22) are included in the Task Order 1 RFP (Attachment 2), the Offeror must provide its proposed number of hours and individuals to complete those tasks and include that information in its proposal for the task order award. The proposed labor categories, hourly rates, and any increase in price for option year performance of such tasks will be incorporated into the award of the IDIQ contract and the number of hours and individuals will be negotiated and agreed upon prior to the award of any task order for these tasks.

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. SBA prefers a Contractor who has experience conducting large scale risk management, risk based reviews, and internal control systems capabilities.

• 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.

· SBA prefers the offeror to have experience performing reviews under AICPA standards and consulting services. SBA also prefers that offerors be able to demonstrate experience performing reviews or audits involving financial standards, forensic reviews, agreed upon procedure reviews and reviews for fraud waste and abuse when there was a degree of attestation required within the past 3 years.

SBA is seeking a Contractor that will be capable of providing and utilizing a Virtual Data Room solution. The SBA is not currently using a virtual data room solution. SBAseeks access to an existing commercial off the shelf solution (COTS) that will integrate the current tools and implement the Contractors proposed COTS solution.

SBA seeks COTS tools in response to the requirements associated with Task 1 and Task 10. Some solutions may require some customizing and configuration for implementation specifically for SBA. The customizing and configuration specifically for SBA is anticipated for in the Contractor’s response/pricing referenced as CLIN 0010 - Task 10 of the Task Order 0001- Attachment 3. SBA does not seek the design and development of a system for SBA. SBA does not anticipate owning a system at the conclusion of the contract. SBA will however own all data housed in the virtual data room and tracking system..

The Contractor shall provide support consistent with these objectives.

5.0 Abbreviations and Definitions

5.1.2. CAM - Certified Auditing Manager

5.1.16 PDR - PARRiS Delegated -Lender Review

5.1.22 SAS - Statistical Analytical Software

5.1.23 TM – Technical Monitor

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. Industry Accounting Designation: The designation can be found at American Institute of Certified Public Accountants

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

5.2.10. Lender Profile Assessment (LPA): An assessment that is compiled from internal SBA data sources and public federal regulatory information. Data is provided by SBA. A full list of data sources will be provided post award.

5.2.11 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.

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

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

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

5.2.15 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.

5.2.16 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.

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

5.2.18 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.

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

5.2.20 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.

5.2.21. 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.

5.2.22 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,)

5.2.23. Risk Data Warehouse - The risk data warehouse is already established. Data mining is facilitated by use of SAS programming and report writing. SBA also refers to our BI Tool in the delegated authority work flow. The BI Tool is programmed in SAS and is a capability that the offeror will find beneficial to accessing our Risk Data Warehouse

5.2.24 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.

5.2.25. SAS (Statistical Analysis System), is a software suite developed by the SAS institute for advanced analytics, business intelligence data management and predictive analytics

5.2.26 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.

5.2.27 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.

5.2.28. Risk Data Warehouse: The risk data warehouse currently exists, Data mining is facilitated by use of SAS programming and report writing. SBA also refers to our BI Tool in the delegated authority work flow. The BI Tool is programmed in SAS and is a capability that the offeror will find beneficial to accessing our Risk Data Warehouse.

5.2.29 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. The current platform for PDMS is Dropbox. The current platform for DLAMS is FoxPro, Excel, SAS-BI Tool and the SBNA-PIMS system. SBA is currently maintaining the data.

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 at post award meeting or 10 days after award and then after award deliver a Final copy to the COR via email not later than 30 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 change. 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 post award conference, 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 should also 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, and 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. SBA anticipates that all Technical Assistance shall be either onsite at an SBA Office or at their office located in the DC Metro Area (as defined) fulltime and management staff continuously coordinating with the SBA Staff.

• 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.

Technical assistance should reflect discussion and coordination with the key personnel and project management team. Cost for advisory and technical assistance may be allocated in the CLIN monthly cost and/or imputed across the fixed cost items. SBA wishes to be able to consult, meet with and converse on aspects of performance, improvement of, efficiencies and conduct of the engagement with the Contractor to assure best practice execution and value to the SBA.

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 Lender Profile Assessment (LPA)has been developed using SA S and report writing has been automated. The LPA is a tool and should be utilized whenever assessing a lender. SBA anticipates working with the Contractor to consider improvements to the LPA. The LPA will be prepared for each delegated authority review.

The tasks shall include at a minimum:

Task 1A: PARRiS Delegated-Lender Reviews Technical Assistance - Minimum of 1200 reviews and a Maximum of 2500 reviews annually as part of the pricing under Task 1.

PARRiS Delegated-Lender Reviews

The Contractor shall provide technical assistance in the review, assessment, and processing of all PARRiS 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. This will include preparing an LPA.

The PARRiS Delegated Lender Authority Review Assessment and eligibility process is as follows:

Overview of process:

The Delegated Lender team which includes “CT/FA” process includes four types of actions, renewals, reconsiderations, extensions and nominations. The team assesses eight types of delegated authorities:

The data analysis components for each lender include:

The Data Analysis elements for each lender include:

Data Analysis- Performance

All loans are pulled from the BI SAS Tool and SBA RiskLender to determine Performance Scope for a lender that includes the following:

Data Analysis for Compliance includes:

Data Analysis- Regulatory:

Deliverable: The Contractor shall prepare and distribute the PARRiS Delegated-Lender Reviews (PDR), Letters and Agreements. This is on-going and the contractor will work with SBA personnel on the deliverable. There is no set schedule for the contractor; you will assist in the process. Deliver to SBA COR and TM.

PARRiS Delegated-Lender Authority Renewal Lender Portfolio Analysis

The Contractor shall perform a PARRiS 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).

Delegated Authority Renewals for each lender may be granted for 2 years, a New SBA lender is/may be granted a one year renewal or two years as prescribed by SOP 50 10 (5). Renewal Terms may also be granted for one year, six months, and/or extensions for period under the 2 year full term based on the analysis of the elements and components. Delegated Authority can also be denied to a lender.

Much of the Data components are provided and/or accessible through SBA data and systems. An LPA will be prepared for each delegated authority review. SBA has access to lender regulatory and financial information.

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 development of a Portfolio Stratification Analysis;

-Assisting in the development of selection criteria for an 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 development and maintenance of the corrective action plan process;

-Tracking of SBA portfolio trends and performance via a dashboard. The dashboard already exists and the Contractor will analyze and track the information presented through the dashboard.

-The development of a solution that provides data and business analytics that will be used to support the organizational strategic goals. This is intended for the offeror to provide SME input and is up to Offeror to work with SBA in the normal course of supporting the OCRM Review program ; and

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

The contractor will assist in the annual risk plan and developing the annual review/audit plan.

The LPA has been developed using SA S and report writing has been automated. The LPA is a tool and should be utilized whenever assessing a lender. SBA anticipates working with Contractor and D&B to consider improvements to the LPA. The LPA will be prepared for each delegated authority review.

SBA is working on some reporting dashboards with the L/LMS contractor. SBA anticipates this contractor supplementing the dashboard for Review activity (Project Coordinator Status Reporting), providing expertise on appropriate dashboard items and general SME input.

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 include 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: The Contractor must populate and provide an LPA for each review conducted. The Contractor will have two days from the work (order) assignment from the Technical Monitor to populate, analyze and complete the LPA and a PAR work plan. Within two weeks from receipt of the work (order) assignment the Contractor must prepare the Draft PARRiS Analytical Review Report and Risk Assessment Cover Letter with a (draft) Risk Assessment Memorandum if required for referral for a target or full risk based review and deliver it to the Technical Monitor via designated Virtual Data Room. The Contractor must also prepare and include with the Draft PARRiS Analytical Review Report an Executive Summary that must include all identifying findings, weaknesses, corrective actions, and recommendations. To summarize, the following are four of the required deliverables for this task: (1) an LPA; (2) draft Parris analytical review report (which includes an executive summary); (3) risk assessment cover letter; and (4) draft risk assessment memo (if necessary).

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). The PAR Report must be completed in compliance with American Institute of Public Certified Accountants (AICPA) Professional Standards – Consulting Services type reviews.

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:

The Contractor will receive a PARRiS Risk Assessment Memorandum from the TM along with the PAR for a specific lender. The Contractor will establish a Target Loan Sample utilizing the loan sampling plan as well as complete a Pre Plan within 5 days of receiving the PARRiS Risk Assessment Memorandum but no later than ten (10) days prior to the scheduled review start date.

The PARRiS Targeted review may address individual or a composite of benchmarks and/or Risk Flags. In most cases a PTR will require the review of 15 to 30 loans, and/or operational information. The Contractor will have 30 days from the scheduled review start date to complete and prepare a Draft PTR for submission to the TM for review. The final PTR will be due 5 days after receipt of comments from the TM. Please note, if a site visit is determined to be necessary, it will also be conducted an incorporated within the 30 days from the scheduled review start date. The PTR report must be completed in compliance with AICPA Professional Standards – Consulting type reviews.

Typically, delivery of a Target Review Report should not exceed 60 days. If more time is required, that determination will be made and approved by the TM and COR.

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.