PDF1_cov_PRIS_RFP.pdf

SECHQ113R0005

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

ORDER UNDER DPAS (15 CFR 700)

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP)

SEALED BID (IFB)

5. DATE ISSUED

1. THIS CONTRACT IS A RATED RATING PAGE OF PAGES

1 89

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRS., CONDS., AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH.

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECS./WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXT.NUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

12. In compliance with the above, the undersigned agrees, if this offer is accepted within ______________ calendar days (60 calendar days unless a different period is inserted

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BY

26. NAME OF CONTRACTING OFFICER (Type or print)

CODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 253 (c) ( 10 U.S.C. 2304 (c) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

06/13/2013 X

SEC - SECHQ

US SECURITIES EXCHANGE COMMISSION

OFFICE OF ACQUISITIONS

100 F STREET NE

MAILSTOP 4010

WASHINGTON DC 20549-2000

1400 ES 07/15/2013

ROBERT WITHERSPOON 202

witherspoonr@sec.gov

551-7319

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PAGE(S)

ANGELA BRUCE-DUNSON

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (Rev. 9-97)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 89

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SECHQ113R0005

(A) (B) (C) (D) (E) (F)

SECHQ1-13-R-0005-Quantative Research Analytical

Data Support (QRADS)RFP

FOB: Destination

0001 Base Period: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 1: Capital Markets and

Financial Industry Data Analysis in the Statement of Work Section C.3.1.

0002 Base Period: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 2: Quantitative

Analytical Support in the Statement of Work

Section C.3.2.

0003 Base Period: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 3: Analytical

Development Environment Database Support in the

Statement of Work Section C.3.3.

0004 Base Period: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 4: Communication and

Technical Writing Support in the Statement of

Work Section C.3.4.

0005 Base Period: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 5:Text Analytics

Support in the Statement of Work Section C.3.5.

0006 Base Period: Other Direct Cost (ODC's): Travel LO reimbursement (no local travel) in accordance with Section H-20 herein-Not To Exceed $5,000.

0007 Base Period: Other Direct Cost (ODC): LO

Reimbursement of Expenses-Not To Exceed $500.

0008 Option Year 1: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 1: Capital Markets and

Financial Industry Data Analysis in the Statement of Work Section C.3.1.

0009 Option Year 1: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 2: Quantitative

Analytical Support in the Statement of Work

Continued ...

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

NSN 7540-01-152-8067

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CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SECHQ113R0005

(A) (B) (C) (D) (E) (F)

Section C.3.2.

0010 Option Year 1: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 3: Analytical

Development Environment Database Support in the

Statement of Work Section C.3.3.

0011 Option Year 1: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 4: Communication and

Technical Writing Support in the Statement of

Work Section C.3.4.

0012 Option Year 1: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 5:Text Analytics

Support in the Statement of Work Section C.3.5.

0013 Option Year 1: Other Direct Cost (ODC's): Travel LO reimbursement (no local travel) in accordance with Section H-20 herein-Not To Exceed $5,000.

0014 Option Year 1: Other Direct Cost (ODC): LO

Reimbursement of Expenses-Not To Exceed $500.

0015 Option Year 2: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 1: Capital Markets and

Financial Industry Data Analysis in the Statement of Work Section C.3.1.

0016 Option Year 2: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 2: Quantitative

Analytical Support in the Statement of Work

Section C.3.2.

0017 Option Year 2: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 3: Analytical

Development Environment Database Support in the

Statement of Work Section C.3.3.

0018 Option Year 2: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 4: Communication and

Technical Writing Support in the Statement of

Work Section C.3.4.

Continued ...

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

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CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SECHQ113R0005

(A) (B) (C) (D) (E) (F)

0019 Option Year 2: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 5:Text Analytics

Support in the Statement of Work Section C.3.5.

0020 Option Year 2: Other Direct Cost (ODC's): Travel LO reimbursement (no local travel) in accordance with Section H-20 herein-Not To Exceed $5,000.

0021 Option Year 2: Other Direct Cost (ODC): LO

Reimbursement of Expenses-Not To Exceed $500.

0022 Option Year 3: The Contractor shall provide the LO necessary personnel and resources to provide services for Work Category 1: Capital Markets and

Financial Industry Data Analysis in the Statement of Work Section C.3.1.

0023 Option Year 3: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 2: Quantitative

Analytical Support in the Statement of Work

Section C.3.2.

0024 Option Year 3: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 3: Analytical

Development Environment Database Support in the

Statement of Work Section C.3.3.

0025 Option Year 3: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 4: Communication and

Technical Writing Support in the Statement of

Work Section C.3.4.

0026 Option Year 3: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 5:Text Analytics

Support in the Statement of Work Section C.3.5.

0027 Option Year 3: Other Direct Cost (ODC's): Travel LO reimbursement (no local travel) in accordance with Section H-20 herein-Not To Exceed $5,000.

0028 Option Year 3: Other Direct Cost (ODC): LO

Reimbursement of Expenses-Not To Exceed $500.

0029 Option Year 4: The Contractor shall provide the DO necessary personnel and resources to provide

Continued ...

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

5 89

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

SECHQ113R0005

(A) (B) (C) (D) (E) (F) services for Work Category 1: Capital Markets and

Financial Industry Data Analysis in the Statement of Work Section C.3.1.

0030 Option Year 4: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 2: Quantitative

Analytical Support in the Statement of Work

Section C.3.2.

0031 Option Year 4: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 3: Analytical

Development Environment Database Support in the

Statement of Work Section C.3.3.

0032 Option Year 4: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 4: Communication and

Technical Writing Support in the Statement of

Work Section C.3.4.

0033 Option Year 4: The Contractor shall provide the DO necessary personnel and resources to provide services for Work Category 5:Text Analytics

Support in the Statement of Work Section C.3.5.

0034 Option Year 4: Other Direct Cost (ODC's): Travel LO reimbursement (no local travel) in accordance with Section H-20 herein-Not To Exceed $5,000.

0035 Option Year 4: Other Direct Cost (ODC): LO

Reimbursement of Expenses-Not To Exceed $500.

OPTIONAL FORM 336 (4-86)

Sponsored by GSA

Page 6 of 89 RFP SECHQ1-13-R-0005

SECTION B - SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 – General

The Quantitative Research Analytical Data Support (QRADS) is a Multiple Award, Indefinite Delivery, Indefinite Quantity (IDIQ) contract to provide the Securities and Exchange Commission’s Division of Economic and Risk Analysis (DERA) with quantitative analytical, text analytics support, capital markets and financial sector data analysis, database design and maintenance support services for the DERA analytical development environment, and technical writing support as described in Section C, Statement of Work. The Contractor shall provide in accordance with issued Task Orders (TOs), all management, supervision, labor, facilities, and materials necessary to perform the services on an IDIQ basis.

B.2 – Contract Minimum and Maximum Summary

a. The Work Category (WC) guaranteed minimum is $2,000 and will be applied during the base period only. There is no guaranteed minimum for the option periods for this IDIQ. The minimum amount on each contract will be the sum of the Contracting Line Item Numbers (CLINs) for which the Contractor receives an award. For example, if the Contractor receives awards under two WC CLINs upon IDIQ award, the minimum contract value will be $4,000.

This means that if a Contractor is awarded a contract under two CLINs and all options are exercised the final contract minimum value will be $4,000. During the current ordering period of the contract, the minimum guarantee insures that a Contractor receives the minimum amount if no task orders are issued. Once task orders have been issued and the minimum is met during the current ordering period, the minimum funding will be deobligated from the IDIQ contract.

Note: Fiscal Law requires an obligation to be recorded upon execution of the contract.

Therefore, the guaranteed minimum will be obligated for the base ordering period to all successful Offerors at the time of IDIQ award (with the exception of the successful Offerors of the sample task award). Once the guaranteed minimum is met through the successful award of a task order, the minimum amount will be deobligated.

b. The maximum (total) dollar amount of all orders issued under each Work Category CLIN identified below is the Government’s best estimate of the total value of all work to be performed in the respective WC CLIN for the base period and if all options are exercised.

Since multiple awards will be made per WC CLIN, any single contract recipient is unlikely to receive orders in a WC CLIN equaling the estimated maximum amount (if all options are exercised) indicated for that WC CLIN. The actual amount of any orders placed under any single contract will be determined using the procedures prescribed herein for competition of individual task orders.

Work Category (WC) Estimated Maximums

WC #1 $32,860,258

WC #2 $13,796,050

WC #3 $28,662,736

Page 7 of 89 RFP SECHQ1-13-R-0005

WC #4 $15,748,886

WC #5 $7,425,311

B.3 – Ordering Period Program Ceiling

The collective program ceiling across all contracts awarded is $98,338,608 inclusive of each of the five (5) WC CLINs for all ordering periods (if options are exercised). The maximum ceiling amounts at the WC CLIN level for each of the five (5) work categories for each ordering period is for estimating purposes only. Actual ceiling restrictions shall be applied at the total program level without limitation among these individual WC CLIN estimates. The maximum value of $98,338,608 as stated above, is a collective ceiling that will be shared among all IDIQ awardees across all contracts and task orders awarded if all options are exercised.

B.3 – Contract Term

The term of the QRADS contract is a (1) one-year base period and 4 (four) one-year option periods. This is not a multi-year contract as defined in FAR Part 17.1, Multiyear Contracting.

TOs may be issued at any time during the base and/or option period. The performance periods will be specified in the TOs and may include option periods which extend the TO up to twelve

(12) months beyond the expiration date of this IDIQ contract.

B.4 – Contract Pricing

(a) All TOs may be issued on either a Time & Materials (T&M), Labor and Hours (L&H), or Firm Fixed Price (FFP) basis and will be subject to the pricing set forth in Section J – List of Attachments, Attachment B-1, Labor Rate Tables. The labor rates in this attachment reflect fully-burdened hourly rates for each labor category and will apply to all direct labor hours. The fully-burdened labor rates include all direct labor and indirect costs applicable to that direct labor (such as fringe benefits, overhead, G&A), and profit. These fixed hourly rates are ceiling rates and will apply to the prime Contractor. The Contractors may elect to propose lower hourly rates on a task-by-task basis. For non-competitive task order awards in excess of $700,000, the Task Order Contracting Officer (TO CO) will require certified cost or pricing data in accordance with FAR 52.215-20, Requirements for Certified Cost or Pricing Data or Data Other Than Cost or Pricing Data. In any case, proposed rates for TOs shall not exceed the ceiling rates established in the contract. The TO CO may request certified cost or pricing data on orders less than $700,000 on an as needed basis.

The labor rate table shall include the prime Contractor and each Subcontractor’s established accounting practices for recording work in excess of 40 hours per week. The accounting practices for each member shall be clearly identified (e.g., prime Contractor records all hours;

“Subcontractor A” records 40 hours per week; “Subcontractor B records all hours, etc.). The descriptions of the methods will be incorporated into the contract and will be effective for T&M and L&H task orders.

The indirect rates applicable to direct materials, subcontracts for supplies, and other direct costs

Page 8 of 89 RFP SECHQ1-13-R-0005 established in Attachment B-1, Labor Rate Tables, are ceiling rates and shall apply to the prime Contractor only. There are no indirect ceiling rates for Subcontractors. However, the Contractor may elect to propose lower indirect rates on a task-by-task basis.

In accordance with FAR 52.216-29, Time and Materials/Labor Hour Proposal Requirements- Non-Commercial Item with Adequate Price Competition, the prime Contractor shall establish fixed hourly rates using separate rates for each category of labor to be performed by each Subcontractor and for each category of labor to be performed by the Offeror, and for each category of labor to be transferred between divisions, subsidiaries, or affiliates of the Offeror under a common control.

(b) The labor rates set forth in the table reflect fully-burdened rates for performance at a Government site and for performance at a Contractor site.

(1) Government Site Rates. When performing at Government sites, the Contractor shall furnish fully-burdened labor rates. The Government will provide office space, furniture and office equipment, and as specified in the individual task orders. The Contractor shall be responsible for supplies in accordance with Section H.22, Supplies.

(2) Contractor Site Rates. When performing at a Contractor site, the fully-burdened labor rates shall include applicable indirect costs for office space and all normal supplies and services required to support the work. This includes, but is not limited to, telephones, faxes, copiers, personal computers, postage, including courier services such as Federal Express, ordinary business software, such as word processing, spreadsheets, graphics, etc., normal copying and reproduction costs.

(c) Only Government-required labor categories (Key Personnel) are included in

Attachment B-1, Labor Rate Tables. Additional labor categories may be proposed and added to meet specific TO requirements, in accordance with Section B.4.3, Rate Refreshment, and Section G.5.3(G), Task Order Unique Labor Categories.

IDIQ Program Management Support Costs. IDIQ Contract-level program management support costs include contract-level management, reporting requirements (See Section F, Deliveries or Performance) and related travel and meeting attendance costs associated with the Contractor’s program management staff. This relates to overall management of the QRADS Indefinite Delivery Indefinite Quantity (IDIQ) contracts. As a result, these program management support costs shall be included within each fully burdened labor category rate, and shall not be proposed as separate labor categories or cost.

The contract-level “program management” support costs are differentiated from individual task order “Task Order Manager” or “Project Manager” support costs, which are to specifically support project management for individual task orders. The “Task Order Manager” or “Project Manager” support labor hours are billed at hourly labor rates against individual task orders for direct support to the effort performed under those task orders. This will result in direct billings at the task order level.

Page 9 of 89 RFP SECHQ1-13-R-0005

B.4.1 Firm- Fixed-Price (FFP) Task Orders For FFP type task orders, travel and materials, if applicable, may be estimated for each TO, including applicable indirect costs, subject to the indirect ceiling rates established in the contract. Partial payment of FFP type TOs may be negotiated based on the completion of milestones/deliverables.

B.4.2 Time-and Materials (T&M) /Labor and Hours (L&H) Task Orders

For T&M or L&H type task orders, the quantity of hours ordered from each labor category will be specified as deliverable hours billable at the ceiling rates specified in Attachment B-1, Labor Rate Tables, or as negotiated, if lower rates are proposed for the TO. Materials will be estimated for each TO and may include applicable indirect costs computed in accordance with the Contractor’s established accounting practices, subject to the indirect ceiling rates established in the contract. For T&M type task orders, profit on materials is not allowable.

The cumulative extended total of all labor categories ordered plus materials/applicable indirect costs will define the TO rates up to the ceiling to allow flexibility. Reimbursement under the contract shall be governed by the clause FAR 52.232-7, Payments under Time and Materials and Labor-Hour Contracts.

(a) Labor. Attachment B-1, Labor Rate Tables, shall include descriptions of the Prime Contractor and each Subcontractor’s established accounting practices for recording and billing for labor hours under task orders. The table lists the Prime Contractor and each Subcontractor separately to assure that the accounting practices for each are clearly identified (e.g., Prime Contractor records all hours; “Subcontractor A” records forty (40) hours per week;

“Subcontractor B” records all hours, etc.). The descriptions are incorporated into the contract and orders and are effective for T&M and L&H task orders.

In the performance of T&M and L&H task orders, the hours billed shall show the labor hours performed by the prime Contractor and each Subcontractor separately. If the established accounting practices described in the contract are to record and bill a standard number of hours per week (e.g., forty (40) hours), the labor hours will be billed only on the basis of a standard number of hours. If the established accounting practices described in the contract are to record and bill all hours worked by employees, the labor hours billed will be based on all hours worked. If the Contractor provides that its established accounting practices are to record and bill all hours worked but it is found after award that the established accounting practices at the time of award were not based on recording all hours worked by employees, the Government shall be entitled to a price adjustment on all payments for labor hours under the T&M and L&H order. The amount of the price adjustment shall be the difference between the number of hours billed based on recording all hours worked and the hours that would have been recorded using a standard number of hours (e.g., forty (40) hours).

(b) Subcontractor Rates.

(1) Competitive Task Orders. The TO CO will use competition to determine reasonableness of the subcontract rates. The numbered items below provide further guidance for competing TOs:

Page 10 of 89 RFP SECHQ1-13-R-0005

The term “QRADS Prime” is defined as a QRADS Prime Contractor submitting the proposal in response to a Task Order Request Package (TORP); and the term “QRADS Contract Holder” is defined as a QRADS Prime Contractor that is functioning in the role as a Subcontractor under another QRADS Prime.

(i) QRADS Prime subcontracts with the QRADS Contract Holder on competed orders and proposes rates that are “at or below” the QRADS Prime’s contract ceiling rates:

If a QRADS Prime subcontracts with a QRADS Contract Holder, the QRADS Prime and the QRADS Contract Holder may propose up to the ceiling rate in their respective Attachment B-1, Labor Rate Tables, of their QRADS contract. If the rates proposed to SEC, inclusive of the QRADS Prime’s allocable indirect costs and a reasonable profit are at or below the QRADS Prime contract ceiling rates, the QRADS Prime would not have to disclose anything further in their proposal.

(ii) QRADS Prime subcontracts with the QRADS Contract Holder on competed orders and proposes rates that are “above” the QRADS

If a QRADS Prime subcontracts with a QRADS Contract Holder, the QRADS Prime and the QRADS Contract Holder may propose up to its ceiling rate in their respective Attachment B-1, Labor Rate Tables, of their QRADS contract.

If the rates proposed to SEC, inclusive of the QRAD’s Prime’s allocable indirect costs and a reasonable profit are above the QRADS Prime’s ceiling rates, the QRADS Prime will have to disclose the amount of the indirect costs and the amount of the profit that were added to the QRADS Contract Holder’s proposed rate. A reasonable profit will be determined in accordance with the policies of FAR 15.404-4 by the TO CO for the specific requirement.

(iii) QRADS Prime subcontracts with non- QRADS Contractors on competed orders and proposes rates that are “at or below” the QRADS

If an QRADS Prime Contractor subcontracts with a non-QRADS Contractor and the rates proposed to SEC, inclusive of the QRADS Prime’s allocable indirect costs and a reasonable profit are at or below the QRADS Prime contract ceiling rates in Attachment B-1, Labor Rate Tables, of their QRADS contract, the QRADS Prime would not have to disclose anything further in their proposal.

(iv) QRADS Prime subcontracts with non- QRADS Contractors on competed orders and proposes rates that are “above” the QRADS

If a QRADS Prime Contractor subcontracts with a non-QRADS Contractor, the QRADS Prime may then include in its proposal, (i) the fully burdened rate proposed to the QRADS Prime by the Subcontractor, (ii) allocation of the QRAD’s

Page 11 of 89 RFP SECHQ1-13-R-0005

Prime’s indirect costs in accordance with established accounting practices, and

(iii) a reasonable profit. If the rates proposed to SEC, inclusive of the QRADS Prime’s allocable indirect costs and a reasonable profit are above the QRADS Prime’s ceiling rates, the QRADS Prime must disclose the amount of the indirect costs, and the amount of the profit that were added to the Subcontractor’s proposed rates. A reasonable profit will be determined by the TO CO for the specific requirement.

(2) Non-Competitive Task Orders. For task orders in excess of $700,000, the TO CO will require certified cost or pricing data in accordance with FAR 52.215-20, Requirements for Certified Cost or Pricing Data or Data other than Certified Cost or Pricing Data. Documentation will include but not be limited to the agreement that the prime has obtained with the Subcontractor showing the rate being paid to the Subcontractor for that labor category. The QRADS Prime shall include in their proposal (i) the allocation of the QRADS Prime’s indirect costs in accordance with established accounting practices and (ii) a reasonable profit. A reasonable profit will be determined by the TO CO in accordance with the policies of FAR 15.404-4 for the specific requirement.

(3) Affiliate Rates. The TO CO will require (a) certified cost or pricing data or (b) data other than certified cost or pricing data, whichever is appropriate, in 15.404-3. The affiliate of the QRADS Prime shall not include profit (unless exempt under paragraph (d) of FAR 52.216-30) in the affiliate rates. However, the QRADS Prime may include an allocation of indirect costs and profit in accordance with their established accounting practices.

(4) Addition of New Subcontractor After Task Order Award. If a QRADS Prime adds a new Subcontractor after task order award, the Subcontractor must have a separate set of fixed hourly rates. The task order will be modified, and the QRADS Prime will have to provide (1) agreement between Prime and Subcontractor on the Subcontractor rates; and (2) documentation showing whether the subcontract rate was determined competitively or single/sole source. If subcontract rates were determined competitively, no further cost information will be required. If subcontract rates were based on sole source, the TO CO will require certified cost or pricing data if the result will be a task order modification exceeding $700,000, in accordance with FAR 52.215-20, Requirements for Certified Cost or Pricing Data or Data Other Than Certified Cost or Pricing data. The subcontract rates must not exceed applicable ceilings if the Subcontractor is an QRADS contract holder. The QRADS Prime may include an allocation of indirect costs in accordance with their established accounting practices plus a reasonable profit.

(c) Materials. Materials are defined in the clause at FAR 52.232-7, Payments Under Time and Materials and Labor Hour Contracts.

Materials means—

• Direct materials, including supplies transferred between

Page 12 of 89 RFP SECHQ1-13-R-0005 divisions, subsidiaries, or affiliates of the Contractor under a common control;

• Subcontracts for supplies and incidental services for which there is no labor category specified in the contract;

• Other direct costs (e.g., incidental services for which there is no labor category specified in the contract, travel, computer usage charges, etc.);and,

• Applicable indirect costs.

Indirect costs allocated to any direct materials and other direct costs shall be proposed consistent with the payment requirements of FAR Clause 52.232-7, Payments Under Time and Materials and Labor–Hour Contracts, paragraph (b)(5), as follows:

“The Contractor may include allocable indirect costs and other direct costs to the extent they are—

(i) Comprised only of costs that are clearly excluded from the hourly rate;

(ii) Allocated in accordance with the Contractor's written or established accounting practices; and

(iii) Indirect costs are not applied to subcontracts that are paid at the hourly rates.”

Indirect costs allocated to any direct materials and other direct costs shall be proposed consistent with FAR 52.216-7, Allowable Cost and Payment clause.

The cost of general purpose items required for the conduct of the Contractor’s normal business operations are not allowable materials in the performance of task orders under this contract. See also Section G and Section H for additional limitations on materials and mandatory support documentation.

Profit is not allowed on materials under a T&M type task order.

(d) Travel (all order types). If authorized in the task order, travel will be reimbursed at actual direct costs in accordance with the limitations set forth in FAR 31.205-46, Travel Costs. No profit is allowed for travel. Subject to the ceiling rates in the table, indirect costs may be applied to travel in accordance with the Contractor’s established accounting practices consistent with FAR 31.2, Contracts with Commercial Organizations. Travel will be a separate Not-To- Exceed CLIN on orders.

B.4.3 Rate Refreshment In accordance with Section B.4(c), additional labor categories may be proposed and added to meet specific requirements. The labor rates and indirect rates are fixed ceiling rates for all contract year periods for the IDIQ contract. Although, the Contractor may submit a proposal reducing the fixed hourly rates and/or indirect rates applicable to materials at any time during the life of this contract. The Government will review these proposals and determine if the revised rates are realistic and in the best interests of the Government. If the rates are accepted, the Government will modify the contract by incorporating the new rates into Attachment B-1, Labor Rate Tables.

At any time and throughout the life of the contract, at the request of either the Contractor or the

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Government, the Contractor may propose additional labor categories, rates and descriptions in addition to the Government labor categories. These additional Task Order Unique labor categories, rates, and descriptions will be negotiated on a case-by-case basis (See Section G.5.3(G)).

(End of Section B)

Page 14 of 89 RFP SECHQ1-13-R-0005

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 Background

The Division of Economic and Risk Analysis (DERA) was created in September 2009 to integrate financial economics and rigorous data analytics into the core mission of the Securities and Exchange Commission (SEC). The Division is involved across the entire range of SEC activities, including policy-making, rule-making, enforcement, and examinations. As the SEC’s “think tank,” DERA relies on a variety of academic disciplines, quantitative and qualitative approaches, and knowledge of market institutions and practices to enable the SEC to approach complex matters using innovative and risk based methods. DERA also assists in the SEC’s efforts to identify, analyze, and respond to risks and trends, including those associated with new financial products and strategies. Through the range and nature of its activities, DERA serves the critical function of promoting collaborative efforts throughout the SEC.

The activities of DERA as a whole include:

• providing detailed, high-quality economic and statistical analyses, and specific subject-matter expertise to the SEC;

• identifying and analyzing issues, trends, and innovations in the marketplace;

• developing analytical approaches, methods, and models in order to identify trends, risks, or potential securities law violations in the capital markets;

• working with outside experts in academia and industry to strengthen the SEC’s foundation of market knowledge;

• managing and analyzing public and private data to support relevant initiatives and projects;

• creating knowledge through high-quality research and publication in peer-reviewed journals; and

• participating in, and contributing to, academic and industry conferences.

Part of the support DERA provides to other SEC Offices and Divisions includes transparently discussing model limitations and making recommendations for alterations to those models.

DERA actively encourages SEC Offices and Divisions that rely on analytics to develop internal processes within their programs to define procedures for how to use analytics. DERA also assists in managing error rates: a process that will only improve as staff becomes increasingly familiar with both the analytics and the registrant space.

Within DERA, the Office of Quantitative Research (OQR) is responsible for providing analytical research and development, model development, user support for analytical models, and data management and administration to support analytical projects. As an example of recent work, OQR staff developed a model used by the Division of Enforcement’s Asset Management Unit.

For that project, OQR, together with the Office of Compliance, Inspections and Examinations (OCIE), developed an analytical model that uses performance data to identify hedge fund advisers worthy of further review by either OCIE or the Asset Management Unit. This initiative has been extraordinarily successful. For example, the initiative resulted in 4 recent cases (Michael Balboa, ThinkStrategy, Patrick Rooney and LeadDog. In addition, OQR staff provides ongoing analytical support and performs ad hoc research at the request of OCIE and Enforcement.

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In support of DERA’s analytical functions, OQR was tasked with creating a new development environment and management of database functions that support DERA’s analysis projects.

Analytical tools and middleware have been developed and are being enhanced to provide additional data and analytical reports to stakeholders in DERA and within the SEC. The tools and analysis are developed using modern econometric techniques, informed by academic research methods and rigor, and implemented with software tools such as Statistical Analysis System (SAS), Perl, Matlab, Stata, Mathematica, etc. The tools, middleware, and other products developed by DERA are often related to ongoing research topics and require maintenance or modification to support additional analyses.

Some of the data sets utilized by DERA are large and may include both structured and unstructured data. For example, it is possible that storage of an accumulated data set may require tens or hundreds of terabytes (TBs) of space to process. Some data may consist of text files and some may reside in structured relational databases. Growth rates vary from data set to data set;

rough estimates indicate that 3 billion records a week could come into a single large database.

Data are updated monthly, daily or on an ad hoc basis depending on the data set. Some data sets are static or are not accessed frequently and will be updated on a less frequent basis. Sources of data include commercial proprietary data feeds, NYSE, web-based feeds, manual downloads, File Transfer Protocol (FTP), APIs and aggregated data platforms like Wharton’s WRDS.

These data sets are commonly updated or augmented using manual downloads or Unix shell scripts via FTP. The data sets are often downloaded to a separate SAS server, some go into an MS SQL Server and some go into an Oracle Server. All of these reside inside the secured SEC infrastructure. SAS is currently used to load the flat files obtained from various sources into SAS databases and then SAS is used to manipulate the data to produce the desired data sets. It is expected that most data will reside in managed data-warehouses within Oracle in the future.

SAS, along with Matlab, Stata, and other similar packages will be used for reporting and analytics. In addition, staff will need efficient access to Oracle data from within other applications.

Documentation exists for some but not for all of the sources. There are subject matter experts in DERA who would be consulted for technical documentation.

The SEC infrastructure uses Microsoft Windows [2003, 2008 moving to Windows 7, 2010], Redhat Linux, and Sun Solaris servers hosted on dedicated server hardware or virtual servers at two central data centers, utilizing high bandwidth connectivity for data storage replication and redundancy. The SEC OIT operates four environments: development, Quality Control Testing Center (QCTC), staging (for pre-production), and production.

C.2 Objectives

The objectives of this contract are to:

• Increase OQR capacity to provide analysis, tools, and associated data support to DERA and other OQR customers

• Increase capacity to provide quantitative reports and analytical solutions based on methods and models developed by DERA financial economists

• Enable quick turnaround of high quality data sets for analytical purposes

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• Develop and maintain expert knowledge-base for key data sets

• Develop and maintain technical and analytical documentation for tools such as OIDS, reports, and data sets

• Increase support for text analytics

This contract is expected to support a variety of individual analytical projects. These task orders may require work during different phases of the project(s). Thus, the work for each project may require different schedules and occur over dissimilar durations. The work will be described in multiple task orders. OQR does not expect to issue task orders for the entire base year or option years at one time for that period of performance, instead, multiple task orders will likely be initiated during each of the contract periods.

C.3 Scope

The Contractor shall provide to the Securities and Exchange Commission’s Division of Risk Strategy and Financial Innovation (DERA) analytical, data analysis, database design and maintenance support services for the DERA analytical development environment, and technical writing support. The Contractor shall work with DERA’s OQR to expand and maintain an analytical environment that accommodates expanding DERA analyses. The efforts anticipated in this Statement of Work (SOW) require a combination of quantitative skills, subject matter expertise, and technical experience to support quantitative analyses and methodologies for specific unique analytical tasks. The Contractor shall provide data analysis, quantitative and statistical analysis, dataset support, and technical writing to provide robust support for DERA analyses. The purpose of this SOW is to provide a flexible means to obtain functional and technical capabilities to support the OQR quantitative development environment and analytical program.

OQR expects to deliver ten to twenty analytical projects in the next eight to ten months that utilize government developed tools and middleware. The number of projects is expected to increase for each of the next two to three years. OQR anticipates the need for additional resources and skills to identify, integrate, deliver, and maintain data and analytical resources to support the OQR/DERA research and development programs.

OQR has identified approximately twenty to thirty analytical projects that could be implemented in the new analytical development environment within the next two years. OQR expects the number and scope of these data sources and analytical projects to increase over the course of the contract period to between thirty to forty analytical projects. These projects are expected to range in size and complexity from small projects that involve adding new reports to existing models to projects of a more analytically demanding nature that may require the Contractor to conduct complex econometric analyses and which may involve manipulating very large databases.

The Contractor shall place a high emphasis on human interface, flexibility, and ease of use for the reports, graphs, and other deliverables. The SEC will obtain and the Contractor shall assign and deliver to the SEC all the Contractor’s rights, including without limitation all copyrights, in the software and analysis first produced in the performance of this contract, as provided in the specific clauses in Section H.11 and Section I.

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This SOW is composed of the following five work categories:

C.3.1 Work Category 1 Capital Markets and Financial Industry Data Analysis

This requirement is to provide strong subject matter expertise in the financial markets, securities, and related financial data analyses, coupled with database knowledge to quickly provide a deep understanding of DERA's data, databases, the technical applications, and operational requirements relying on these data and databases to support DERA’s analyses and repeatable results in the DERA analytical development environment. Although each year may vary, DERA estimates that roughly 30% - 35% of the work under this contract will be associated with this work category.

C.3.2 Work Category 2 Quantitative Analytical Support

This requirement is to provide highly skilled technical expertise to assist DERA economists in developing, in Windows or Unix platforms, such capabilities as:

• using modern econometrics methods, statistical modeling techniques, and graphical analysis,

• process data sets by developing and writing project-specific programs;

• analyzing and interpreting statistical data;

• computing supporting metrics;

• producing and maintaining models, middleware, or other analytical products;

• producing reports and/or generating graphical displays.

DERA estimates that roughly 25% of the work will be associated with this work category.

C.3.3 Work Category 3 Analytical Development Environment Database Support

This requirement is to provide expertise to assist the OQR Data Base Administrators (DBAs) in designing and/or maintaining DERA’s databases, data warehouses, and ensuring data acquisition, conversion, and interfaces are managed so that the DERA analytical development environment is efficiently maintained for use by DERA economists and researchers. DERA estimates that roughly 25% of the work will be associated with this work category.

C.3.4 Work Category 4 Communication and Technical Writing Support

This requirement is to provide to DERA various documentation components associated with analytical projects, database design and implementation, and/or operations and maintenance procedures of various projects for a multimedia environment in a manner that can be indexed to provide electronic references by various analytical tools as well as enable searches by key words.

DERA estimates that roughly 15% - 20% of the work will be associated with this work category.

C.3.5 Work Category 5 Text Analytics Support

This requirement is to provide highly skilled technical expertise to assist DERA economists in developing text analytics capabilities, and any support related to text analytics such as:

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• developing and writing project-specific programs to process data sets using modern econometrics methods, statistical modeling techniques, and graphical analysis, process data sets by developing and writing project-specific programs;

• analyzing and interpreting statistical data;

• computing supporting metrics;

• producing and maintaining models, middleware, or other analytical products;

DERA estimates that approximately 5% - 10% of the work will be associated with this work category.

C.4 Tasks

C.4.1 Work Category 1 Capital Markets and Financial Industry Data Analysis: The OQR utilizes a wide variety of data that contain current, historical, and futures information about indices, sensitive public company data, hedge fund data, mutual fund data, trade and quote data, to name a few examples. OQR data sets may range in size from 60GB for a weekly feed to 2 TB for a daily feed. OQR creates novel combinations of information from multiple sources to support the development of white papers, analyses, and computer aided models. Additional resources and skills are needed to ensure efficient and quality data availability within the DERA analytical development environment to support repeatable results.

C.4.1.1 Scope

The Contractor shall provide knowledge and analyses based on experience in the financial markets, securities, and related financial data analyses, coupled with knowledge of data supporting the financial markets, securities and related data analytics industry, to quickly develop a thorough understanding of DERA's data sets/databases, and the technical applications and operational requirements relying on these data sets/databases. These data sources may span a wide range of topics such as hedge funds, mortgage backed securities, public company data, municipal bonds, over-the-counter-trade information, private fund advisors, mutual funds, to name a few.

C.4.1.2 Tasks

The Contractor shall conduct detailed discussions with the subject matter experts (SMEs) to support the development, update, and maintenance of data sets sustaining analytical methods and models. The Contractor shall define relationships between data fields, to assist database developers and database architects in developing a blue print for a design which will be approved and implemented by the Database Administrators (DBAs).

The Contractor shall review and determine the meaning of the data contained in various data sets and databases and an in-depth understanding of the data desired for use in various analyses.

The Contractor shall provide quality assessments of data contained in multiple data sets and databases. The Contractor shall provide descriptions and assessments of data sources outlining the purpose and quality, descriptions of variables included, common uses, as well as weaknesses or limitations of the various data elements and sources. The Contractor shall assist in setting OQR data standards.

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The Contractor shall assist DERA economists and other staff in identifying requirements, developing use cases for data sets/databases to support analyses, testing analytical solutions using recommended data sets/databases, providing data set quality assessments, and assessing the availability, quality, and use of data supporting the analytical logic developed for quantitative models, database queries, and analytical reports.

The Contractor shall assist OQR SMEs and DBAs in providing regular maintenance of the data sets/databases identified by OQR. The Contractor shall assist in identifying erroneous data, and recommend methods and treatment that will yield correct data suitable for the purpose required.

The Contractor shall provide expertise in checking for corruption in the database, identifying anomalies and problems in data, identifying duplicate records for removal, and identifying anomalies in materialized views and backup/recovery operations.

The Contractor shall provide reports related to the above tasks.

C.4.2. Work Category 2 Quantitative Analytical Support:

C.4.2.1 Scope

DERA economists respond to inquiries regarding regulatory implications of SEC rule changes on capital formation and market liquidity, conduct economic research to understand market conditions, and develop analytical methods, benchmarks, and models to analyze potential fraud, wrongdoing, or lack of transparency. This includes analyzing current and historical financial reports, regulatory filings, public and commercial data, conducting trend analyses, among others, that are used to develop economic and statistical models to address policy related questions.

OQR staff members spend significant resources developing extensive analyses that include interpreting and manipulating data and applications utilizing quantitative analytics implementing scoring models. The data sources may be very large and require knowledge of efficient programming techniques to retrieve, manipulate, and validate data quality. The analysis requirements are expected to expand and increase as a result of the recent market events and the passage of the Dodd-Frank Act which requires the SEC to collect and analyze additional information, and in some cases information that has not been collected before.

C.4.2.2 Tasks

The Contractor shall support DERA economists in developing and writing project-specific programs to process data sets using modern econometrics…