ATTACHMENT_3_Task_Order_0001.docx

ATTACHMENT #3

TASK ORDER 0001

Pricing Schedule for Task Order 0001

Travel - Estimated Reimbursable Travel Expenses (Hotel, Transportation and Per Diem for Approved Travelers) (Cost Reimbursement with No Fee)

$150,000.00

TOTAL TASK ORDER PRISE

Purpose:

PRICING PROPOSAL -NOTE: FOR YOUR PRICE PROPOSAL PROVIDE BACK-UP DOCUMENTS THAT DETAIL THE LABOR CATORGIES AND HOURS PROPOSED FOR EACH TASK THAT HAS A UNIT RATE. FOR TASK ORDER 0001 PROVIDE SAME DETAILS FOR THE TOTAL PRICE FOR THIS TASK ORDER AND EACH TASK

Period of Performance:

Twelve months from award

Purpose:

Contractor shall provide the necessary services to complete the following CLINS 0001, 0002, 0003, 0004 and 0004

CLIN 0001

Task 1: SMART ALP and PCLP Delegated Authority CDC Reviews and Technical Assistance Oversight Activity for delegated and non-delegated CDCs - CLINS 0001, 1001, 2001, 3001 and 4001

The Contractor will be required to provide SBA with technical assistance in the assessment of the SBA 504 loan program. The CDC Profile Assessment (LPA) has been developed using SAS and report writing has been automated. The LPA is a tool and should be utilized whenever assessing a CDC. SBA anticipates working with the Contractor to consider improvements to the LPA. The LPA will be prepared for each delegated authority review. Note: Pricing for Task 1 includes Tasks 1A and 1B.

The tasks shall include at a minimum:

Task 1A: SMART ALP & PCLP Delegated-Lender CDC Reviews Technical Assistance – There is an estimated minimum of 30 reviews and a maximum of 80 reviews annually as part of the pricing under Task 1.

SMART ALP & PCLP Delegated-Lender CDC Reviews

The Contractor shall provide technical assistance in the review, assessment, and processing of all SMART ALP & PCLP Delegated-Lender CDC 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 CDC 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 SMART ALP & PCLP Delegated CDC Authority Review Assessment and eligibility process is as follows:

Overview of process:

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

The data analysis components for each CDC currently include:

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

Data Analysis for Compliance includes:

Data Analysis- Regulatory:

Deliverable: “The Contractor shall prepare and distribute the SMART Delegated Renewal CDC Reviews (SDR), Letters and Agreements (if applicable). The SBA will provide the Contractor with a list of CDCs with Delegated Authorities requiring review on a monthly basis. The Contractor’s analysis should be completed and provided to SBA three months in advance of the CDC’s Delegated Lender Authority expiration date. SBA will make the final decision regarding renewal of delegated authority. SBA will provide Contractor with any comments/questions regarding Contractor’s CDC Delegated Authority Renewal Analysis and Contractor will provide SBA with an updated analysis addressing those SBA comments/questions within 7 business days.

SMART Delegated-Lender CDC Authority Renewal CDC Portfolio Analysis

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

Delegated Authority Renewals for each CDC may be granted for up to 2 years. Renewal Terms may also be limited to less than 2 years (e.g. one year, six months, and/or extensions for period under the 2 year term) based on the analysis of the elements and components. Delegated Authority can also be non-renewed or revoked from a CDC.

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 CDC 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 CDC Delegated Lender Authority expiration date. The Contractor shall provide a formal written analysis.

Task 1B: Delegated and non-delegated CDC Oversight Technical Assistance

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

-Entering select financial and operational information from each CDC’s Annual Report into a database to allow for a comprehensive understanding of the financial structure and performance of the CDCs and the organizational and operational traits that may be related to higher level risk to SBA;

- Identifying CDC Portfolio risks, for the SBA 504 Loan Portfolio through analysis of SBA data (data will be provided at post award);

-Assisting in the analysis and evaluation of CDC financial statements and annual reports;

-Assist in providing an annual analysis of CDC financial statements and annual reports;

-Assisting in the review and tracking of PCLP LLRF compliance;

-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 that will be provided at or about post award;

-Preparation of individual CDC Profile Assessments;

-Technical assistance in developing the content of individual CDC SMART 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 CDCs 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 SAS and report writing has been automated. The LPA is a tool and should be utilized whenever assessing a CDC. SBA anticipates working with Contractor and other existing SBA contractors 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 5 days after the end of the month unless further defined at the Task Order level. For the CDC annual financial statement and annual report, the majority of CDCs have a fiscal year end of September 30, which means that their annual reports and financial statements are due to SBA by the following March 31. Those reports are submitted by the CDCs to SBA’s local district offices who then forward them to SBA Headquarters. The September 30 annual reports and financial statements should be available for review and analysis no later than June 30. The next most common fiscal year end for CDCs is December 31, which means that those CDC annual financial statements and annual reports will be made available to SBA Headquarters by September 30. A small number of CDCs have fiscal years ending in either March or June, which will result in SBA Headquarters staff having access to these financial statements and reports by December 31 or March 31, respectively. The Contractor shall enter select financial and operational information from each CDC’s annual report and financial statements no later than one year after each CDC’s annual report date.

CLIN 0002

Task 2: SMART Analytical Review (SAR) - CLINS 0002, 1002, 2002, 3002 and 4002

SMART Analytical Reviews are performed using a standard CDC Profile Assessment (LPA) (See Exhibit 1), and are designed to 1) measure the level of risk the CDC poses to SBA, and 2) determine the scope of any additional assessment necessary (e.g., through a STR or SFR). The purpose of the SAR is to identify whether additional assessment is necessary and to inform decisions regarding delegated CDC authorities.

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

b) Contractor will obtain review information from CDC files, CDC loan data information and other CDC information, from SBA, and outside sources (e.g., previous RBR findings and corrective actions, SBA processing and liquidation center input, CDC’s latest strategic plan and organizational chart, CDC’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 SMART protocols ready for delivery to SBA team analyst. The narrative should include relevant observations, findings, weaknesses 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, CDC's latest strategic plan and organizational chart, CDC’s policies and procedures, and copies of audits and independent loan reviews. Report should also include Contractor's recommendation for an additional SMART Targeted Review (STR) or SMART Full Review (SFR), as applicable. If STR or SFR is recommended, this recommendation should include an assessment of CDC's ability to submit loan information electronically to allow for a "virtual" review.

e) Supplemental SAR Reports per CDC – 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 SMART Analytical Review (SAR) 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 SAR work plan. Within two weeks from receipt of the work (order) assignment the Contractor must prepare the Draft SAR 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 SAR 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 SAR report (which includes an executive summary); (3) risk assessment cover letter; and (4) draft risk assessment memo (if necessary). If SBA has any comments or proposed edits of these documents, SBA’s Technical Monitor will provide them in writing to the Contractor. The Contractor shall provide the Technical Monitor with updated SAR documents via designated Virtual Data Room addressing SBA comments and/or edits within 5 business days. The SAR Report must be completed in compliance with American Institute of Public Certified Accountants (AICPA) Professional Standards – Consulting Services type reviews.

Deliverable: Final SMART (SAR) Analytical Review Report in accordance with the following specification. The Contractor receives Technical Monitor comments to the initial Draft SMART Analytical Review Report; the Contractor shall incorporate the Technical Monitor comments into the Final SMART Analytical Review Report and deliver to Technical Monitor via designated Virtual Data Room within 2 days. (See Exhibit 4). The SAR Report must be completed in compliance with American Institute of Public Certified Accountants (AICPA) Professional Standards – Consulting Services type reviews.

CLIN 0003

Task 3: SMART Targeted Review (STR) -CLIN 0003, 1003, 2003, 3003 and 4003

The Contractor shall assist SBA 1) in performing a review of one or more benchmarked elements, risk elements, or flag areas identified in specific components of SMART 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 (regarding identified high risk issues requiring a focused scope of review for the identified SMART component. The Targeted Review is performed either on-site or virtually using information from CDC files, CDC loan data information from and other CDC information, SBA, and outside sources. If the CDC 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 CDCs. 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 SMART Risk Assessment Memorandum from the TM along with the SAR for a specific CDC. 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 SMART Risk Assessment Memorandum but no later than ten (10) days prior to the scheduled review start date.

The SMART Targeted review may address individual or a composite of benchmarked metrics and/or Risk Flags. In most cases a STR 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 STR for submission to the TM for review. 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 STR report must be completed in compliance with AICPA Professional Standards – Consulting type reviews. The final STR will be due 5 days after receipt of comments from the TM.

Typically, delivery of a Targeted 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: SMART Full Review (SFR) - CLIN 0004, 1004, 2004, 3004 and 4004

Based on OCRM’s SAR or STR results, OCRM may determine the need for a SMART Full Review. In addition, if a CDC has never been reviewed by the SBA’s Office of Credit Risk Management has not been reviewed for a significant period of time (as determined by SBA) or for any other reason (as determined by SBA), a SMART Full Review may be conducted. A SMART Full Review requires an on-site visit to 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 CDC files, CDC loan data information and other CDC information, SBA, and outside sources. All elements of the SMART Risk Assessment framework will be reviewed.

Deliverable:

– A SMART Full Review will typically address all of the benchmark elements. It will require the Contractor to establish a loan sample, and a Pre Plan to outline the Review program. It will include a site visitation, but not necessarily or solely for loan reviews (prefer the use of Virtual Data Room), but may also be for management and personnel interviews and review of lender’s processes and internal controls reviews. Typically a full review may include, but not limited to the review of 30 to 60 files. There may be provision for additional files to be reviewed or follow up documentation. However, utilizing the Virtual Data Room, the Contractor should be requesting information to be uploaded and reviewed prior to the site visit, to be as efficient as possible. In the event a CDC is unresponsive, unprepared or untimely, the design of this Contract provides for additional CLIN Tasks including for additional loan reviews.

The Contractor will have 30 to 45 days from the scheduled review start date to complete and prepare a Draft Full Review for submission to the COR and TM. The final Full Review Report will be due 5 days after receipt of comments from the TM. Contractor shall provide SBA Technical Monitor with draft SMART Review Report no later than 30 days after the last onsite day of the review. SBA will provide the Contractor with any edits and/or comments and will expect a final SMART Review Report to be provided within 10 business days. The Contractor is expected to consistently provide SBA with a final version of the SMART Report no later than 60 days after the conclusion of on-site review activities at the CDC. The Full Review Report must be completed in compliance with AICPA Professional Standards – Consulting Services type reviews.

CLIN 0010

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

The contractor shall provide a one-time price for the original implementation of their Management Workflow and Tracking Systems on Task Order 001 under CLIN 0010. And then provide a price for System Maintenance and IT Security Management support for the follow-on years under CLINS 1010, 2010, 3010 and 4010. Note: Pricing for Task 10 includes Tasks 10a, 10b and 10c.

The contractor must assume current systems that SBA is currently utilizing for tracking workflow as well as Document Management, Delegated CDC Authority, Corrective Actions Tracking, systems include Foxpro, excel, Access Database, Partner Information Management System (PIMS) and other SBA systems. The contractor must ensure that any proposed solution conforms with SBA’s IT security requirements and that any support, updates, or maintenance required for the proposed solutions are included in SBA’s access to the proposed solution.

Respective Items and requirements referenced in Task 1 and Task 10 are to be met using commercial off the shelf (COTS) and already existing tools/solutions. This task does not seek the design and/or development of a system. Some solutions may require some customization and configuration for implementation specifically for SBA. The customizing and configuration specifically for SBA is anticipated for in the Contractors response/pricing referenced as CLIN 0010 - Task 10 of the Task Order 0001- Attachment 2. SBA does not anticipate owning a system at conclusion of the contract. SBA owns all of the data within the tracking and management system and will continue to own this data following the conclusion of the contract. SBA anticipates there could be a ramp up period for Tasks 10a, 10b and 10c over the first 90 days. The technical architecture of the current system consists of an Oracle database with cold fusion.

Task 10A: SMART Document Management System (SDMS)

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 CDC 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.

Access is anticipated for specific CDCs for information and/or documents they specifically have uploaded.

Other Access capabilities are anticipated for SBA team members and the Contractor team members.

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

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

Task 10C: Corrective Actions Tracking System (CATS)

An Access database is currently being used to track Corrective Actions. The Contractor shall review, improve, and provide access to 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 CDC 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. The Corrective Action Tracking System is currently configured as an Access Database with input screens for capturing review and corrective action findings. The CATS system is currently internal to SBA and the RBR Contractor. Users are limited to 20.

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.

CLIN 0011

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

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

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