Work_Category_5_-_final.doc

Sample “Call” for Work Category 5

SECTION I – STATEMENT OF WORK

Work Category 5 TEXT ANALYTICS SUPPORT - Task 1

C. STATEMENT OF WORK

C.1 Background The Division of Economic Research and Analysis(DERA) was created in September 2009 to integrate financial economics, and rigorous data analytics into the core mission of the U.S. 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 agency’s “think tank,” DERA relies on a variety of academic disciplines, quantitative and non-quantitative approaches, and knowledge of market institutions and practices to enable the Commission to approach complex matters using innovative and risk based methods. DERA also assists in the Commission’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 supporting collaborative efforts throughout the agency.

Within DERA, the Office of Quantitative Research (OQR) is responsible for providing analytical research and development, model development and implementation using modern econometric methods, user support for analytical applications, and data management and administration to support these analytical projects. In support of DERA’s analytical functions, OQR has recently assumed responsibilities to create a new analytical development environment and manage database functions to support DERA’s analysis projects.

The SEC receives regulatory filings from investment companies and registered corporations on a daily basis. Analysis of many of these filings is done manually, which makes it time-consuming and error-prone. Augmenting the manual processes with modern text analysis techniques will allow DERA to streamline some processes, highlight problematic areas for further review, and reduce the overall error rate. Some of the more interesting filings for examination are inconsistently structured so to apply text analysis methods, consistency must be imposed post hoc.

The usual way to impose structure on an unstructured text corpus (i.e., body of documents) for analysis is add tags or markups, that is, to add labels in XML or another standard label set (e.g. CLAWS7, BNC, TigerXML) marking textual components and concepts. For example, TEI with BNC tags allows for labelling each word in a document with its part of speech and demarcating each paragraph, sentence, and clause with tags. The OQR is mostly interested in gross structural marking, at the level of SEC-mandated sectioning, so only a subset of standard lexical markups will be required.

C.2 Scope 10-K filings are received by the SEC’s Edgar system on a daily basis. These are the annual reports filed by publicly-traded corporations, corresponding to their annual reports to shareholders. Examples can be obtained through the Edgar “latest filings” menu (http://www.sec.gov/cgi-bin/browse-edgar?action=getcurrent). To see examples, enter “10-K” in the “Form Type” field and press “Retrieve Filings”. To see older examples, use the company search function (http://www.sec.gov/edgar/searchedgar/companysearch.html). DERA estimates that the total number of documents to be examined would be on the order of 200,000.

A typical 10-K filing consists of four Parts in 15 Items:

· PART I is “Item 1. Business”, “Item 1A. Risk Factors”, “Item 1B. Unresolved Staff Comments”, “Item 2. Properties”, “Item 3. Legal Proceedings”, and “Item 4. Mine Safety Disclosures”.

· PART II is “Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities”, “Item 6. Selected Financial Data”, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk”, “Item 8. Financial Statements and Supplementary Data”, “Item 9A. Controls and Procedures”, “Item 9A(T). Controls and Procedures”, “Item 9B. Other Information”.

· PART III is “Item 10. Directors, Executive Officers and Corporate Governance”, “Item 11. Executive Compensation”, “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters”, “Item 13. Certain Relationships and Related Transactions, and Director Independence”, and “Item 14. Principal Accounting Fees and Services”.

· PART IV is “Item 15. Exhibits, Financial Statement Schedules”.

The scope of the 10-K project will focus on breaking the text into Items. While the Item headers are standardized, not every filer respects the standard. The contractor will work with the SEC to develop a taxonomy for identifying which headers correspond to the standard Items.

There are historical filings in Edgar dating back to 1994 that OQR users will need to access. Formats have changed over this time so the filings must be normalized.

Asset backed securities (ABS) Prospectus and Prospectus Supplement filings (henceforth “APPS”), are received by the SEC’s Edgar system on a daily basis. APPS refers to 424B5 filings found in on the Edgar system under SIC code “6189” (Asset backed securities). Examples can be obtained through the Edgar search menu (http://www.sec.gov/edgar/searchedgar/companysearch.html). To see examples, enter “6189” in the SIC code field, and press “Find Companies”. DERA estimates that the total number of documents to be examined would be of an order of magnitude around 25,000 to 50,000.

A typical 424B5 filing contains a “Prospectus Supplement” and a “Prospectus”, which are distinct documents typically filed under an umbrella document of type “424B5”. When a filer files more than one 424B5, it is likely the case that the Prospectus document remains unchanged, and the “Prospectus Supplement” is revised in each new filing to describe the particular assets and terms associated with each individual issuance.

The scope of the ABS project will focus on parsing 2-3 key sections of the Prospectus Supplement document. For example, the following sections are especially relevant: (1) Risk Factors, (2) The description of the securities being issued, and (3) the description of the assets. The desired sections contain information that should be uniformly present in all filings. However, these sections might be identified with different headers across the set of documents. The contractor will work with the SEC to develop a taxonomy for identifying which section titles capture the same content categories that are desired.

There are historical filings in Edgar dating back to 1994, however, this project scope is limited to more recent filings, from 2002 and later that OQR users will need to access. Formats have changed over this time so content must be normalized.

Tasks 2 and 3 may be completed in a phased approach to meet deliverable deadlines identified herein.

C. 3 Objectives

The objectives of this Task Order are to provide text analytics support for two projects that will be conducted sequentially. OQR estimates that these projects are roughly the same size and complexity.

1. The Contractor shall assist OQR Subject Matter Experts (SMEs) and other contractors to create and provide maintenance and regular updates of a marked-up corpus of 10-Ks, assist in developing standard documentation, provide analysis support, and assist in assessing and recommending markup changes when reports are adjusted.

2. The Contractor shall assist OQR Subject Matter Experts (SMEs) and other contractors to create and provide maintenance and regular updates of a marked-up corpus of APPSs, assist in developing standard documentation, provide analysis support, and assist in assessing and recommending markup changes when reports are adjusted.

C.4 Task 1 – Program Management

The contractor shall provide an integrated project schedule to manage all work identified by this task order. At a minimum, the plan shall include the work breakdown structure, project contract milestones, and contract deliverables. The contractor shall reassess the schedule following the completion of each task and may adjust the dates with COR approval.

(For Deliverable, see D.1) C.5 Task 2 Text Analytics for 10Ks C.5.1 Task 1 Project Plan The Contractor shall submit a detailed work breakdown structure for managing the work to accomplish the objectives of this project. The project plan shall include the Project Management plan, Communication plan and Quality Assurance plan for this project. The contractor shall provide a project plan narrative that describes the project, technical approach, milestones, and deliverables. The project plan shall also include a project schedule for all work associated with this task. (For Deliverable, see D.2) C. 5.2.3 Interim Reports or Presentations.

The Contractor shall prepare and deliver to the COR a status report or a presentation describing, at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution. This report may be in the form of a presentation, particularly regarding analytical methods. (For Deliverables, See D.3) C.5.3.4 Monthly Reports A monthly status report describing at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution.

The monthly report shall include project cost, schedule and risk. It should include a detailed summary of the burn rate, estimated monthly hours, actual hours and planned hours for the next reporting cycle. The report shall be submitted with each monthly invoice to monitor cost and schedule. (For Deliverables, See D.4) C.5.4 Meeting Minutes

The Contractor shall prepare and deliver minutes from all meetings with the OQR SME related to this task order. The Contractor shall work with the COR to resolve issues and resubmit revised minutes. (For Deliverables, See D.5) C.5.5 Creation and Maintenance of Daily and Historical 10-K Data The Contractor shall work with DERA SMEs and OQR personnel to review and develop an understanding of the structure and organization of 10-K filings, the organization of the Edgar system, and the technical requirements of the targeted research. The Contractor shall work with OQR staff to define a standard for marking up 10-Ks.

The Contractor shall create a marked-up data set with entries corresponding to all extant 10-Ks in Edgar and add to the set as filings arrive daily. (For Deliverables, See D.6, D.7, and D.9) C.5.6 Recommendation Packages

The Contractor shall recommend methods and treatment that will yield correct data suitable for the purpose required. (For Deliverables, See D.8 and D.10) C.5.7 Maintenance

The Contractor shall assist in the daily routine data maintenance as follows:

a) Identify erroneous data,

b) Ensure data integrity,

c) Identify and resolve corruption in the corpus,

d) Identify and resolve anomalies and problems in the data, and

e) Identify and resolve duplicate filings for removal

(For Deliverables, See D.6, D.7, and D.9)

C.5.8 Documentation of Daily and Historical 10-K Data The Contractor shall provide copies of all source code used to process 10-K filings, including industry-standard comments for documentation. The Contractor shall work with OQR staff and DERA SMEs to provide descriptions of mark-ups used, including examples for each tag and technical specs for what are allowable values. (For Deliverables, See D.7) C.6 Task 3 Text Analytics for APPS Data

C.6.1 Project Plan The Contractor shall submit a detailed work breakdown structure for managing the work to accomplish the objectives of this project. The project plan shall include the Project Management plan, Communication plan and Quality Assurance plan for this project. The contractor shall provide a project plan narrative that describes the project, technical approach, milestones, and deliverables. The project plan shall also include a project schedule for all work associated with this task. (For Deliverables, See D.11) C.6.2 Interim Reports The Contractor shall prepare and deliver to the COR a status report describing, at a minimum the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution. This report may be in the form of a presentation, particularly regarding analytical methods. (For Deliverables, See D.12) C.6.3 Monthly Reports A monthly status report describing at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution.

The monthly report shall include project cost, schedule and risk. It should include a detailed summary of the burn rate, estimated monthly hours, actual hours and planned hours for the next reporting cycle. The report shall be submitted with each monthly invoice to monitor cost and schedule. (For Deliverables, See D.13) C.6.4 Meeting Minutes

The Contractor shall prepare and deliver minutes from all meetings with the OQR SME related to this task order. The Contractor shall work with the COR to resolve issues and resubmit revised minutes. (For Deliverables, See D.14) C.6.5 Creation and Maintenance of Daily and Historical APPS Data

The Contractor shall work with DERA SMEs and OQR personnel to review and quickly develop a thorough understanding of the structure and organization of APPS filings, the organization of the Edgar system, and the technical requirements of the targeted research. The Contractor shall work with OQR staff to define a standard for marking up APPS consistent with the goals of the staff’s research. The contractor shall deliver parsed documents that include APPS filings covering the 2002 to 2012 Edgar filings. The Contractor shall create a marked-up data set with entries corresponding to all extant APPS in Edgar and add to the set as filings arrive daily.

(For Deliverables, See D.15 and D.18) C.6.6 Recommendation Packages

The Contractor shall recommend methods and treatment that will yield correct data suitable for the purpose required. The Contractor shall assist in the daily routine data maintenance as follows:

a) Identify erroneous data,

b) Ensure data integrity,

c) Identify and resolve corruption in the corpus,

d) Identify and resolve anomalies and problems in the data, and

e) Identify and resolve duplicate filings for removal (For Deliverables, See D.17 and D.19) C.6.7 Documentation of Daily and Historical APPS Data

The Contractor shall provide copies of all source code used to process APPS filings, including industry-standard comments for documentation. The Contractor shall work with OQR staff to provide descriptions of mark-ups used, including examples for each tag and technical specs for what are allowable values. (For Deliverables, See D.16)

D. DELIVERABLES

The contractor shall prepare deliverables specific to the Tasks as shown in the tables below. All deliverables shall be formatted by the contractor and prepared using Microsoft Office Suite applications. The following deliverables shall be submitted electronically to the COR, and the Contract Specialist as designated:

D.1 Task 1 Master Project Plan The contractor shall provide an integrated project schedule to manage all work identified by this task order. At a minimum the plan shall include the work breakdown structure, project contract milestones, and contractual deliverables. The contractor shall reassess the schedule following the completion of the each task, and may adjust dates and timeframes with COR approval.

D.2 Task 2 Project Plan

The Contractor shall submit a detailed work breakdown structure for managing the work to accomplish the objectives of this project. The project plan shall include the Project Management plan, Communication plan and Quality Assurance plan for this project. The contractor shall provide a project plan narrative that describes the project, technical approach, milestones, and deliverables. The project plan shall also include a project schedule for all work associated with this task. The contractor shall reassess the schedule following the completion of the planning and design phase, and may adjust dates and timeframes with COR approval.

D.3 Task 2 Interim Report or Presentation As identified in the work plan, status report to the OQR SME and Contracting Officer’s Representative (COR), describing, at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution. This report may be in the form of a presentation, particularly regarding procedures or analytical methods.

D.4 Task 2 Monthly Report

A monthly status report describing, at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution.

The monthly report shall include project cost, schedule and risk. It should include the burn rate, a detailed summary of the estimated monthly hours, actual hours and planned hours for the next reporting cycle. The report shall be submitted with each monthly invoice to monitor cost and schedule.

D.5 Task 2 Meeting Minutes

The Contractor shall prepare in Microsoft compatible format and deliver to the COR meeting minutes from all meetings with the OQR SME relating to this task order. The Contractor shall work with the COR to resolve issues and resubmit revised meeting minutes.

D.6 Task 2 Input for Documentation of tags used in markup

The contractor shall provide descriptions of the content and examples of use for each tag used in mark-up of documents to support documentation. The Contractor shall provide input for documentation of tags in Microsoft compatible format.

D.7 Task 2 Source code

The Contractor shall provide source of applications used to process documents with appropriate comments for readability (Not necessarily provided in Office format).

D.8 Task 2 Recommendations for Procedures for Regular Processes

The Contractor shall provide recommendations to support the development of manuals describing steps in each process, end-to-end process including dependencies between processes and roles/responsibilities within processes.

D.9 Task 2 Updated Input for Documentation of Tags used in markup

The Contractor shall provide Descriptions of the content and examples of use for each tag used in markup of documents

D. 10 Task 2 Updated Recommendations for Procedures for Regular Processes

The contractor shall provide updated recommendations for establishing regular procedures for processing. The recommendations shall describe steps in each process, end-to-end process including dependencies between processes and roles/responsibilities within processes.

D.11 Task 3 Project Plan

The Contractor shall submit a detailed work breakdown structure for managing the work to accomplish the objectives of this project. The project plan shall include the Project Management plan, Communication plan and Quality Assurance plan for this project. The contractor shall provide a project plan narrative that describes the project, technical approach, milestones, and deliverables. The project plan shall also include a project schedule for all work associated with this task. The contractor shall reassess the schedule following the completion of the planning and design phase, and may adjust dates and timeframes with COR approval.

D.12 Task 3 Interim Report or Presentation

As identified in the work plan, status report to the OQR SME and Contracting Officer’s Representative (COR), by the designated PM describing, at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution.

D.13 Task 3 Monthly Report

A monthly status report to the Contracting Officer’s Representative (COR), designated PM describing, at a minimum, the current status and progress, work accomplished during the report period, work to be accomplished during the next report period, and identifying any issues or concerns requiring resolution.

The monthly report shall include project cost, schedule and risk. It should include the burn rate, a detailed summary of the estimated monthly hours, actual hours and planned hours for the next reporting cycle. The report shall be submitted with each monthly invoice to monitor cost and schedule.

D.14 Task 3 Meeting Minutes

The Contractor shall prepare in Microsoft compatible format and deliver to the COR meeting minutes from all meetings with the OQR SME relating to this task order. The Contractor shall work with the COR to resolve issues and resubmit revised meeting minutes.

D.15 Task 3 Input for Documentation of tags used in markup

The contractor shall provide descriptions of the content and examples of use for each tag used in mark-up of documents to support documentation. The Contractor shall provide input for documentation of tags in Microsoft compatible format.

D.16 Task 3 Source code

The Contractor shall provide source of applications used to process documents with appropriate comments for readability (Not necessarily provided in Office format).

D.17 Task 3 Recommendations for Procedures for Regular Processes

The Contractor shall provide recommendations to support the development of manuals describing steps in each process, end-to-end process including dependencies between processes and roles/responsibilities within processes.

D.18 Task 3 Updated Input for Documentation of Tags used in markup

The Contractor shall provide Descriptions of the content and examples of use for each tag used in markup of documents

D. 19 Task 3 Updated Recommendations for Procedures for Regular Processes

The contractor shall provide updated recommendations for establishing regular procedures for processing. The recommendations shall describe steps in each process, end-to-end process including dependencies between processes and roles/responsibilities within processes.

As a result of the SEC’s review process, the Contractor may be asked to perform additional procedures, adjust or clarify existing work and revise its draft or final report to reflect comments provided by the SEC.

Final Work Plan – three days after COTR approval of draft work plan

COR

Final Work Plan – three days after COTR approval of draft work plan

COR

E. PERIOD OF PERFORMANCE

F. PLACE OF PERFORMANCE

The work will primarily be performed at the contractor’s site; however, meetings will be held at the Government’ site address below:

Securities and Exchange Commission (Headquarters)

Division of Risk, Strategy, and Financial Innovation

100 F Street, NE

Washington, DC 20549

G. TYPE OF ORDER

This is a Time and Materials task order.

H. TRAVEL

It is anticipated that long distance travel will be on a not-to-exceed basis.

Local travel will not be reimbursed. However, in the event travel is required, all travel shall be in accordance with Federal Travel Regulations (FTR) and approved in advance by the COTR. Additionally, costs for transportation, lodging, meals, and incidental expenses must be coordinated and approved in advance by the COR. Submit cost breakdown electronically to the COR. (1) Costs incurred by contractor personnel on official company business are allowable, subject to the limitation contained in FAR Part 31.205-46. Government per diem rates can be found on the website at www.gsa.gov. The ability to perform unscheduled travel is contingent upon Government approval and will only be used to address travel needs as they occur.

H.1 Local Travel

The local travel area for SEC duty assignments in the Washington, DC metropolitan area has been established as follows: The District of Columbia; the cities of Alexandria, Fairfax, Falls Church in Virginia; Arlington and Fairfax Counties in Virginia; and Montgomery, Charles, and Prince George’s Counties in Maryland.

I. Other Direct Costs

It is anticipated that other direct costs may be included for incidental expenses.

J. GOVERNMENT FURNISHED INFORMATION/PROPERTY

The government will provide office space, and/or access to necessary telecommunications and computer equipment for the support services work that is to be performed on-site. The Contractor will not have a due diligence event to evaluate the government furnished property or information prior to award. The government will make meeting rooms available when required.

K. DRESS CODE

Business attire is required when contractor personnel are on-site.