Attachment_D.1_-_BPA_Call_Order_01_RFQ_-_SMILE.pdf

Solicitation Number SOL-620-16-000001 Call Order 01 (SMILE)

Audit and Financial Review Services

TABLE OF CONTENTS

SECTION B - CONTINUATION OF SF-1449

B.1 TITLE

B.2 PURPOSE

B.3 PERIOD OF PERFORMANCE

B.4 CALL ORDER TYPE

B.5 PRICE SCHEDULE

B.6 COST/PRICE INFORMATION

B.7 INDIRECT COSTS

B.8 BILLING

B.9 TERMINATION

B.10 DESCRIPTION/STATEMENT OF WORK

B.11 SPECIAL CONSIDERATIONS

SECTION C - ADMINISTRATIVE REQUIREMENTS

C.1 PLACE OF PERFORMANCE

C.2 ACCOUNTING AND APPROPRIATION DATA

C.3 PAYING OFFICE AND PROCEDURES, PAYMENT TERMS, AND INVOICING

C.4 LOGISTICS AND SCHEDULE

C.5 REPORTS AND DELIVERABLES

C.6 POST AWARD ADMINISTRATION

C.7 RELATIONSHIPS AND RESPONSIBILITIES

C.8 SPECIAL PROVISIONS

C.9 NOTICE LISTING OF CLAUSES INCORPORATED BY REFERENCE:

SECTION D - LIST OF ATTACHMENTS

SECTION E - INSTRUCTIONS TO OFFERORS AND EVALUATION FACTORS FOR AWARD

E.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY REFERENCE

E.2 DELIVERY INSTRUCTIONS:

E.3 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

E.4 INSTRUCTIONS FOR THE PREPARATION OF THE PRICE QUOTE

E.5 INSTRUCTIONS FOR THE PREPARATION OF A BRANDING IMPLEMENTATION AND

MARKING PLAN

E.6 EVALUATION FACTORS FOR AWARD

SECTION B - CONTINUATION OF SF-1449

B.1 TITLE

Financial Review Services for the “Sustainable Mechanism for Improving Livelihoods & Household Empowerment” (SMILE) Project.

B.2 PURPOSE

The purpose of this award is to conduct a financial review of the SMILE Award Number:

AID-620-A-13-00003, managed by Catholic Relief Services; and in accordance with the scope of work in Section B.10 of this solicitation.

B.3 PERIOD OF PERFORMANCE

The effective date of this contract will be the date of the USAID/Nigeria Contracting Officer's signature.

B.4 CALL ORDER TYPE

The Government will issue a purchase order that is Firm-Fixed Price (FFP).

B.5 PRICE SCHEDULE

In order to perform the Statement of Work set forth in Section B.10, the Contractor must use the agreed and negotiated price schedule in the BPA.

B.6 COST/PRICE INFORMATION

The prices/costs will be applied to this Call Order as follows:

(a) Labor:

(1) The price schedule negotiated and approved in the BPA contains the loaded hourly ceiling rates for work performed at any location designated. “Loaded hourly rate” is defined as the direct hourly labor rate along with appropriate load factors, inclusive of profit or fee. Other load factors include overhead, fringe, and general & administrative (G&A) costs. The loaded hourly rates set forth in this schedule are fully burdened, not-to-exceed, ceiling prices. The contractor may, at their discretion, propose lower loaded hourly rates for this Call Order.

(2) The quantity of hours of each labor category will be multiplied by the loaded hourly rates listed in this schedule or lower, and the cumulative extended total of all hours will define the fixed price labor amount for the task.

(3) The prices (loaded labor rates) approved in this Call Order, (or applicable

"discounted" rates submitted in a response to this Call RFQ) will govern this order's price during the performance period.

(b) Travel and Other Direct Cost (ODC):

The amount negotiated for travel and ODCs will be added to the total labor amount to arrive at the Call Order total fixed price. Travel and other direct costs (ODCs) can be reimbursed based on actual expenses incurred, not to exceed the negotiated ceiling on travel and ODCs or at a fixed price.

(1) Materials/Other Direct Costs: Other Direct Cost(s) which will be proposed and approved includes the following:

• Communication; and

• Printing

(2) Travel: The Government will reimburse the cost of travel required in conjunction with performance of orders issued under the agreement. Reimbursement for travel is limited to that required in the performance of the order and expressed in the offeror’s ODC proposed budget. Specific Government direction to attend meetings or gather information will be reimbursed on a cost reimbursable basis only. The Government will not pay travel charges for travel to and from the BPA holder employer’s home office location or to and from one company building to another (either within a company or to and from a prime to a sub company). Travel costs subject to reimbursement are limited to travel occurring at the direction of the Government, performed in conjunction with a specific requirement for a trip authorized in the order. Any administrative/clerical support travel costs will be considered and approved by the Contracting Officer on a case-by-case basis. Allowable costs include:

• Travel

• Per diem (lodging and meals)

• Other travel related costs

Note: Travel as stated above is not limited to airfare. It includes visas, Defense Base Act (DBA) insurance, taxis and local transportation, medical shots, and other costs associated with an assignment that requires travel as designated in the Foreign Affairs Manual (FAM) and General Service Administration (GSA) Federal Travel Regulation.

(c) Subcontracts:

If the offerors propose to use subcontract labor under this Call Order, the loaded hourly Ceiling Rates included in this Call Order will apply to all subcontracted labor.

B.7 INDIRECT COSTS

Reimbursement for allowable indirect costs will be at the negotiated final or predetermined rates indicated in the BPA.

B.8 BILLING

The Call Order will cite the applicable hourly rates selected from the Price Schedule negotiated under the BPA. The hourly rates approved under the Call Order will remain in effect for the entire Call Order period. Any rates billed in excess of the hourly billing rates designated in the Call Order schedule will not be authorized. Each hourly rate listed in BPA Section B.6 is "loaded" and must only include the following:

• Salary cost or consulting fee of the individual providing the services;

• Payroll costs (fringe benefits, FICA, etc.);

• Indirect costs applicable to labor; and

• Profit or fee, if any. Please note fee on fee is not authorized. Fee on ODC’s and materials is not authorized.

B.9 TERMINATION

See FAR Clause 52.212-4 Contract Terms and Conditions-Commercial items (May 2015).

B.10 DESCRIPTION/STATEMENT OF WORK

B.10.1 Background

On April 29, 2013, the U.S. Agency for International Development, mission to Nigeria (USAID/Nigeria) approved the Sustainable Mechanisms for Improving Livelihoods and Household Empowerment (SMILE) Project, Award No. AID-620-A-13-00003; to Catholic Relief Services. The performance period for this award is April 29, 2013 to April 28, 2018, with a total estimated cost of $40,996,889.00.

The objective of the SMILE project is to improve the wellbeing of 600,000 Vulnerable Children (VC) and 150,000 caregivers in Edo, Kogi, Benue, FCT Abuja and Nasarawa States of Nigeria. SMILE is implemented through an umbrella grants mechanism (UGM) whereby Civil Society Organizations (CSOs) receive sub-grants to support capacity strengthening and OVC program implementation at the community level. The project also strengthens the Nigerian VC response by working at the state level to enhance the coordination and monitoring capacity of the five State Ministries of Women Affairs and Social Development (SMWASD) and Social Welfare Departments of targeted Local Government Areas (LGA). In addition, SMILE facilitates CSOs’ collaboration with communities to increase access to integrated and comprehensive services for vulnerable children and households with a focus on household economic strengthening (HES); quality nutrition and food security services and increased access to HIV and TB services.

As of December 31, 2015, USAID has obligated a total of $16,120,248 into the SMILE award, and accrued expenditures of $16,120,248 have been reported. This translates to an average monthly expenditure of $502,744 (since inception of award.) Payments under this award are administered through Letters of Credit (LOC) mechanism managed in USAID M/FM/CMP office in Washington D.C. and quarterly financial reports are sent to the mission in accordance with the terms of the award.

The recipient maintains three operational offices in Nigeria for the SMILE project, which are, the main office in FCT Abuja, and program coordinating offices in Benue and Edo States.

B.10.2 Objectives of the Financial Review

The purpose of this engagement is to conduct a financial review of the SMILE Award no:

AID-620-A-13-00003, managed by Catholic Relief Services, for the period: from April 29, 2013 to December 31, 2015, in accordance with general attestation standards1 and instructions issued by the mission. The specific objectives of this financial review will be to determine the following:

(1) If adequate accounting and financial management systems are in place to manage funds expended by the recipient under the SMILE award, in compliance with the terms and conditions of the awards; relevant U.S. Federal Government accountability and fund management rules; and generally accepted accounting/financial management practices.

(2) If payment for goods and services made under the award are valid and in line with the terms and conditions of the awards and procedures set forth in 2 CFR 200 and Final OMB Uniform Guidance for federal awards.

(3) If property acquired under the award are utilized only for the purposes covered under the award.

(4) If project income, where applicable, are adequately disclosed and accounted for, in compliance with the terms and conditions of the awards and generally accepted financial management practices.

B.10.3 Scope of Work

The following are specific scopes to cover in this award:

(1) an evaluation of the recipients financial management and internal control systems;

(2) a review of sampled accounting transactions and records; and,

(3) an evaluation of the recipient’s financial management capacity.

1 The American Institute of Certified Public Accountants (AICPA) general standard on criteria, and the field work and reporting standards and the related Statements on Standards for Attestation Engagements (SSAE), unless specifically excluded or modified by this statement of work.

B.10.4 Specific Tasks

(1) Financial Review

The firm should use the following steps for the financial review. They are not considered all-inclusive or restrictive in nature and do not constitute relief from exercising professional judgment.

The steps should be modified to fit local conditions and specific program design, implementation procedures, and agreement provisions, which may vary from award to award. Any limitations in this statement of work must be communicated to USAID/Nigeria.

Pre-Review Steps: The firm must review the applicable documents considered necessary to perform the financial review. Following is a list of documents applicable to this award:

(a) The agreement between USAID and the recipient, including subsequent modifications.

(b) The sub-agreements between the recipient and other implementing entities, as applicable.

(c) The recipient’s contracts and subcontracts with third parties, if any.

(d) The budgets, work plans, and written procedures approved by USAID.

(e) USAID Automated Directives System Chapter 636 – “Program Funded Advances”

(f) ADS 303.5 – Grants and Cooperative Agreements to Non-Governmental

Organizations.

(g) 2 CFR 200 – Administration of Assistance Awards to U.S. Non-Government

Organizations.

(h) Final OMB Uniform Guidance: Cost Principles, Audit, and Administrative

Requirements for Federal Awards Subpart F, Appendix IV, Appendix V, Appendix IX

(i) Federal Acquisition Regulation (FAR), Part 31, Contract Cost Principles and

Procedures.

(j) USAID Acquisition Regulation (AIDAR), which supplement the FAR.

(k) OMB circulars A-123 – Management Responsibility for Internal Control.

(l) Cash management Improvement Act (CMIA) (Pub. L. 101 – 453), codified at 31 CFR

Part 205.

(m) OMB circulars A-127 – Financial Management Systems.

(n) Mandatory Standard Provisions for Non-U.S. Nongovernmental Grantees (USAID Automated Directives System, Series 300).

(o) Standard Provisions Annex for Project Loan or Grant Agreements with Foreign Governments (USAID Automated Directives System, Series 200).

(p) All program financial and progress reports, charts of accounts, organizational charts, accounting system descriptions, procurement policies and procedures, operations policies and procedures, accounting and financial management forms, warehousing and distribution procedures for materials, as necessary , to successfully complete the required work.

(2) Evaluation of Internal Control Environment and Risk Assessment

The firm must review and evaluate the recipient's internal controls related to USAID programs under the award, to ensure they are adequate, in operation, and effective. The firm should conduct this evaluation using the Control Environment and Risk Assessment Checklists, see BPA Attachment D.5.

These checklists must be completed and crossed referenced to supporting documents or to the internal control tests conducted.

(3) Accounting and Financial Management Systems

(a) The firm must conduct a review of internal controls documentation and evaluate the recipient’s accounting and financial management systems to determine if they meet the following financial management standards:

i. Accounting records are supported by documentation that identify, segregate, accumulate, and record all costs incurred and which fully disclose:

• the amount and dispositions by source of funds received;

• the total cost of the program or undertaking in connection with assistance received; and

• other records as will facilitate an effective audit.

ii. Existence of records that identify adequately the source and application of funds for sponsored activities. These records contain information pertaining to awards, authorizations, obligations, un-obligated balances, assets, expenditures, and income.

iii. Effective control over and accountability for all funds, property, and other assets. Assets are safeguarded from unauthorized use.

iv. Comparison of actual outlays with budget amounts for each agreement.

Financial information is related to performance and unit cost data whenever appropriate. The same chat of accounts is used for budgeting and reporting and variances between actual and planned results are analyzed.

v. Maintenance of adequate procedures for determining allowable and allocable costs in accordance with the provisions of the award, applicable cost principles, and generally accepted accounting principles.

vi. Financial information disclosed for sponsored programs are accurate, current, and complete.

vii. Financial transactions and reports are subject to examinations or internal audit, by qualified individuals who are sufficiently independent of those that authorize the expenditure of funds.

viii. Existence of a systematic method to ensure timely resolutions of audit and financial review findings.

ix. Existence of procedures to minimize the time elapsing between the transfer of funds from USAID and their disbursement by the recipient, whenever funds are advanced by USAID. When advances are made by Letters of Credit, the recipient shall make drawdowns as close as possible to the time of making disbursements. USAID policies require that disbursements are made no longer than 30 days from the date the funds were received.

(b) The firm must review procurement procedures to determine whether sound commercial practices including competition were used, reasonable prices were obtained, and adequate controls were in place over the qualities and quantities received.

(c) Procedures performed by the firm to report on the effectiveness of the financial management systems and internal control procedures of the recipient, must include evaluation of the following:

i. Accounting and financial management operations and the capabilities of the recipient’s accounting and finance unit staff.

ii. Applicable payment and expenditure accounting policies and procedures, accounting forms, logs and registers.

iii. Procedures for initiating, authorizing, executing and accounting for retreats, seminars, workshops and trainings.

iv. Procedures for funding, tracking and reporting sub-grants under the awards.

v. Procedures for recognizing and allocating joint or common costs among benefiting projects (USAID and Non-USAID), if applicable.

vi. Procedures for recognizing and allocating cost share to the USAID award, if applicable.

vii. Procedures for recognizing and allocating program income (e.g. Interest income) among benefiting projects / awards (USAID and Non-USAID).

viii. Fixed assets usage procedures, including utilization of shared assets.

ix. Procedures for motor vehicles usage and maintenance.

x. Procedures for activities planning, design, implementation, monitoring and evaluation, and close-out.

xi. Basis and method of accounting for program expenditures under the award.

xii. Accounting data description and recording processes.

xiii. Financial transaction measurement and processing system.

xiv. Financial reporting capabilities, financial report production and distribution processes.

xv. Access and security of accounting system and data.

xvi. Policies and procedures for documents protection, storage and control.

xvii. Methods by which significant class of transactions are authorized and initiated, documented and recorded, processed in the accounting system and placed in the financial reports and disclosures.

xviii. The payroll cycle and system.

xix. Travel policies and procedures.

xx. Acquisition and payment for goods and services.

xxi. Cash receipts and payment procedures.

xxii. Banking arrangements and treasury operations.

xxiii. Policies and procedures for managing current assets (Cash, Inventory, Receivables, and Advances).

xxiv. Policies and procedures for managing and accounting for accounts payables and other liabilities.

xxv. Procedures for managing and accounting for prepaid, deferred and accrued expenses.

xxvi. Existing internal analytical checks – reconcilements and independent proofs of accuracy and completeness.

xxvii. Financial planning capabilities and budgeting systems – cash flows, project budgets, budgetary controls and funds management.

xxviii. Commodities and technical assistance directly procured by USAID during the period of the financial review.

xxix. Arrangements for maintaining oversight of sub-recipients’ financial management systems.

(d) The firm shall document the evaluation of the effectiveness of the recipient’s internal control procedures and financial management system, using the internal control procedures questionnaire in Attachment D.10 of BPA RFQ. However, other internal control questionnaire could be used if it sufficiently documents the required procedures.

(4) Substantive Tests of Internal Control Procedures And Review Of Accounting Records

The firm must evaluate program implementation actions and accomplishments to determine whether samples of costs incurred are allowable, allocable, and reasonable under the agreement terms, and applicable USAID rules. At a minimum, the firm must perform substantive tests or reviews that cover the following:

(a) Review of financial reports (trial balances, financial status reports, ledgers, transactions reports) produced by the recipient.

(b) Review of bank reconciliation statements and other accounting processes that are subject to reconciliations.

(c) Review of selected accounting vouchers and records supporting at least 40% of costs charged to USAID under the award, and covering transactions for a period, not less than half of the period under review.

(d) Irrespective of the requirement in Section B.11.6.3 above; the samples of accounting records and vouchers reviewed must include the following:

i. Retreats, seminars, trainings, and workshops;

ii. Travels, vehicle repairs, and property purchases;

iii. Payroll and employee compensation;

iv. Sub-grants and subcontracts, if applicable;

v. Allocation of common costs, if applicable;

vi. Cost share, if applicable;

vii. Re-imbursement for use of project assets;

viii. Program income, if applicable; and,

ix. Statutory payments like income tax, withholding tax, value added tax, and pension payments.

(e) Review of general and program ledgers to determine whether costs incurred were properly recorded. Reconcile direct costs billed to, and reimbursed by, USAID to the program and general ledgers.

(f) Perform tests to determine whether the recipient's financial reports (including those on the status of cost sharing contributions) and claims for advances and reimbursement contain information that is supported by the books and records.

(g) Review of personnel files, grant files, and selected procurement files.

(h) Review of selected vehicle usage logs.

(i) Review of advance or receivable aging reports.

(j) Physical check on current asset (cash and inventory) balances.

(k) Review of fixed assets register (non-expendable property) procured with USAID funds.

(l) Review of indirect cost charges, if applicable.

(m) Verification of existence and operating status of selected major vendors.

(n) Perform tests to determine whether the recipient complied, in all material respects, with agreement terms (including cost sharing, if applicable) and applicable laws and regulations related to USAID-funded programs. All material instances of noncompliance and all illegal acts that have occurred or are likely to have occurred must be identified. Such tests must include the compliance requirements related to required cost-sharing contributions, if applicable.

(o) Ascertain whether the recipient ensured that audits of its sub-recipients were performed to ensure accountability for USAID funds passed through to sub-recipients.

If sub-recipient audit requirements were not met, the firm must disclose this in the financial review report as a material weakness.

(p) Determine if the recipient has taken adequate corrective action on prior audit or financial review recommendations.

(q) The firm must question and report all cost claims considered ineligible, not supported with adequate documentation, or did not have required prior approval. All incurred costs, not meeting the requirements of the recipient’s policies and procedures must be reported as questionable costs. Questionable costs must be presented using the format in Attachment D.11.

(5) Other Financial Review Responsibilities

The firm must perform the following steps:

(a) Hold entrance and exit conferences with the recipient. The USAID/Nigeria must be notified of these conferences in order that USAID representatives may attend, if deemed necessary.

(b) During the planning stages of the financial review, the firm must communicate information to the recipient regarding the nature and extent of planned testing and documents to be reviewed. Written communication is preferred. The firm must document these communications in the working papers.

(c) Institute quality control procedures to ensure that sufficient competent evidence is obtained through inspection, observation, inquiries, and confirmations to afford a reasonable basis for an opinion regarding the recipient’s internal controls and financial management system. The firm may use its standard procedures for ensuring quality control, those procedures must, at a minimum, ensure the following:

i. The financial review reports and supporting working papers are reviewed by a responsible officer of the firm, who was not involved in the review. This review must be documented in the working papers;

ii. All quantities and monetary amounts involving calculations are footed and cross-footed; and,

iii. All factual statements, numbers, conclusions and monetary amounts are cross-indexed to supporting working papers.

(d) Financial review findings should be adequately supported. USAID/Nigeria reserves the right to review the working papers to ensure that assessments were done properly.

(e) The firm should obtain specific representations from management concerning its knowledge of any actual fraud or suspected fraud affecting the entity, involving management or others, and potentially having a material effect on the financial statements. The firm should also obtain management’s acknowledgement of its responsibility to prevent and detect fraud. In reporting material fraud, illegal acts, or other noncompliance, the firm should place their findings in proper perspective. The Mission will then notify the Regional Inspector General (RIG), Dakar, to advise USAID/Nigeria on the subsequent steps and actions.

B.11 SPECIAL CONSIDERATIONS

See special considerations in the BPA Section B.13.

[END OF SECTION B]

SECTION C - ADMINISTRATIVE REQUIREMENTS

C.1 PLACE OF PERFORMANCE

Place of performance under this BPA will be in Abuja Office, Benue and Edo State Offices.

C.2 ACCOUNTING AND APPROPRIATION DATA

To be inserted at award.

C.3 PAYING OFFICE AND PROCEDURES, PAYMENT TERMS, AND INVOICING

(a) The Vendor will make an electronic submission of the signed and completed Standard Form

1034, Public Voucher for Purchases and Services other than Personal, to the paying office designated below.

Office of Financial Management USAID/Nigeria U.S. Embassy Abuja Plot 1075 Diplomatic Drive Central District Area, Abuja, Nigeria E-mail: nigeriapayments@usaid.gov

(b) Payment Terms:

(i) Payment will be made per the Contract terms, after acceptance of the contract deliverable by the Contracting Officer’s Representative (COR).

(ii) 60 percent on the date of the draft report and 40 percent on the date USAID/Nigeria approve the final report. Partial payments may be negotiated based on the completion of milestones.

(i) The vendor will simultaneously forward a copy of the signed voucher, supporting documents and invoice to the Contracting Officer’s Representative (COR).

(ii) A request for payment is not considered properly submitted unless the claim (SF 1034) has been properly prepared and is accompanied by all required supporting documentation.

(iii) Payments will be made in local currency, unless otherwise specified.

(c) Invoicing: Invoices must be submitted using SF-1034. Invoices may not be submitted more frequently than once every 30 days.

C.4 LOGISTICS AND SCHEDULE

(a) It is the responsibility of the recipient to ensure that all records are available, all accounting entries and adjustments are made, and all other necessary steps are taken to make it possible for the firm to perform the required work and present the final review report within 90 calendar days.

mailto:nigeriapayments@usaid.gov

(b) The team will conduct a planning meeting in Abuja prior to the commencement of the assessment. The team will review and clarify any questions on the SOW, draft an initial Financial Review Program, clarify team roles, and assign drafting responsibilities for the financial review report. The timeline for submission of deliverables will be finalized and agreed upon during the planning meeting. USAID/Nigeria COR may participate in sessions of the planning meeting.

(c) The financial review must begin as soon as practicable, after the effective date of the contract.

C.5 REPORTS AND DELIVERABLES

(a) Language of Reports and Other Requirements

(1) All reports and other deliverables will be in the English language.

(2) The contractor will submit the reports to the designated COR and the

Contracting Officer.

(3) The contractor will promptly notify the Contracting Officer and COR of any problems, delays, or adverse conditions which materially impair the contractor's ability to meet the requirements of the contract.

(4) The cover page of all deliverables required in this contract will include the USAID logo (or the name of the Agency written out) prominently displayed, the contract number, Contractor name, relevant USAID Mission/Office), the publication or issuance date of the document, document title, and Call Order number.

(5) Descriptive information is required whether Contractor-furnished products are submitted in paper or electronic form.

(6) All materials must include the name, organization, address, and telephone/fax/internet number of the person submitting the materials.

(b) Reports and Deliverables

All deliverables must meet the requirements set forth in this Call Order. The following minimum reports will be required, and must be submitted to the COR by the due dates indicated in the table below:

Type of Document/Report

Due Date

1 Complete Financial Review Program or Workplan Within 20 calendar days of Award

2 Draft Financial Review Report Within 70 calendar days after award.

3 Final Financial Review Report 90 days after award

(1) Financial Review Program or work plan.

The Financial Review Program or work plan must contain all elements or major milestones necessary to accomplish the requirements of the scope of work.

(2) Draft Financial Review Report

The offeror will provide USAID/Nigeria with a draft report that includes all the components of the final evaluation report before contract end date. USAID/Nigeria will provide written comments on the draft report to the offeror within 10 working days of receiving the draft report. This report must follow the format in Attachment D.4; Financial Review Report Format. A draft report must at a minimum, contain the following:

i. All instances of weaknesses or deficiencies in internal control environment and all identified control risks. Internal control conditions not satisfying the assertions using internal control environment checklist in attachment d.5; and risk assessment checklist in attachment D.9 or other objective standards, must be reported as findings.

ii. All instances of deficiencies in the recipient’s internal control procedures and financial management systems. Conditions not satisfying the assertions in internal control questionnaire. (See attachment D.10) or other objective standards, and not complying with the terms and conditions of the award must be reported as findings.

iii. Identified cost claims considered ineligible, not supported with adequate documentation, not in accordance with the recipients policies and procedures, or do not have required prior approval, as findings. Details of questionable costs must be presented using the format in questionable cost matrix. (See attachment D.11.)

iv. The firm’s actionable recommendations for:

• Correcting identified internal control deficiencies;

• Correcting identified financial management deficiencies;

• Resolving identified questionable cost claims;

• Mitigating identified control risk and vulnerability of USAID funds managed by the recipient; and,

• Strengthening the recipient’s internal controls and financial management system.

v. An implementation matrix that will be used to monitor the implementation of the financial review findings, using the format in attachment D.12.

vi. Control Element Report: The firm must determine the significance of control deficiencies and provide detailed control element report for all deficiencies considered to be material weaknesses and significant deficiencies.2 The control element report must include for each material weakness or significant deficiencies the following elements of findings:

• Criteria: The laws, regulations, contracts, grant agreements, standards, measures, expected performance, defined business practices, and benchmarks against which performance is compared or evaluated. Criteria identify the required or desired state or expectation with respect to the program or operation. Criteria provide a context for evaluating evidence and understanding the findings.

• Condition: Condition is a situation that exists. The condition is determined and documented during the engagement.

• Cause: The cause identifies the reason or explanation for the condition or the factor or factors responsible for the difference between the situation that exists (condition) and the required or desired state (criteria), which may also serve as a basis for recommendations for corrective actions. Common factors include poorly designed policies, procedures, or criteria; inconsistent, incomplete, or incorrect implementation; or factors beyond the control of program management.

• Effect or potential effect: The effect is a clear, logical link to establish the impact or potential impact of the difference between the situation that exists (condition) and the required or desired state (criteria). The effect or potential effect identifies the outcomes or consequences of the condition.

(3) Final Financial Review Report

(i) A final financial review report must include revisions incorporating USAID/Nigeria comments on the draft report.

(ii) The contractor must submit one hard copy and one electronic copy of the financial review report to the COR with a copy to the Contracting Officer.

(c) Inspection and Acceptance of Reports and Deliverable

(1) The financial review program (including detailed steps) and the draft report will be subject to approval and acceptance by USAID/Nigeria. After approval, the draft report will be discussed with the responsible officers of the recipient.

(2) USAID/Nigeria is responsible for ensuring that the work performed under this engagement complies with this statement of work. Therefore, USAID/Nigeria will perform desk reviews on every draft financial review report and may perform quality

2 Deficiencies in the design or operation of internal controls that in the firm’s judgment, could adversely affect the recipient’s ability to meet the terms and conditions of the award; record, process, summarize, and report financial data consistent with the assertions of management in the financial reports submitted to USAID.

control reviews of the working papers. The firm must ensure that all working papers supporting the findings of the financial review are available for USAID/Nigeria review, if necessary. To this end, USAID/Nigeria must have access to all pertinent working papers and records of the recipient and their sub-recipients and make excerpts, photocopies, and transcripts.

(3) If USAID/Nigeria does not accept the report because of deficiencies in the work, the firm must perform any additional financial review work requested at no additional cost.

C.6 POST AWARD ADMINISTRATION

(a) Contracting Officer

TBD

Office of Acquisition & Assistance (OAA) USAID/Nigeria U.S. Embassy Abuja Plot 1075 Diplomatic Drive Central District Area, Abuja, Nigeria Tel: +234-9-461-9300

(b) Contracting Officer's (CO) Authority

See BPA Section C.6.2.

(c) Contracting Officer’s Representative (COR)

Designation of the COR and alternate will be made in a separate communication prior to the Call Order award.

(d) Technical Direction/Relationship with USAID

Same as BPA Section C.6.4.

C.7 RELATIONSHIPS AND RESPONSIBILITIES

The client for this contract is USAID/Nigeria. The firm will work in co-ordination with USAID/Nigeria.

The USAID mission may meet with the firm at the beginning of the review to explain financial/compliance areas of concern contained in the statement of work and provide any advice concerning the performance of the financial review. The USAID mission would provide the following information to the firm for the entrance conference:

A list of all payments made for assets, equipment, materials, and technical assistance purchased by USAID from third parties for the period being reviewed.

A list of all advances and recoveries made during the review period.

A list of all disbursements made to the recipient.

USAID/Nigeria may also provide written comments on the draft financial review report concerning the facts and conclusions contained in the report in order to obtain the best possible end product.

USAID/Nigeria may also attend the exit conference for the same purpose. However, the comments on the draft report and at the exit conference will not be binding on the firm.

The firm must properly maintain and store the working papers for a period of three years from the completion of the financial review. During this three-year period the firm must immediately provide the working papers when requested by USAID/Nigeria. Firms that are nonresponsive or do not provide timely responses to questions raised by USAID/Nigeria shall be temporarily or permanently excluded from performing additional financial reviews.

C.8 SPECIAL PROVISIONS

All provisions from the BPA are incorporated into this Call Order by reference.

C.9 NOTICE LISTING OF CLAUSES INCORPORATED BY REFERENCE:

All applicable clauses included in the BPA Contract and its subsequent amendments, are hereby incorporated into this Call Order by reference.

(END OF SECTION C)

SECTION D - LIST OF ATTACHMENTS

Attachments are listed in Section D of the BPA.

(END OF SECTION D)

SECTION E - INSTRUCTIONS TO OFFERORS AND EVALUATION FACTORS FOR

AWARD

E.1 NOTICE LISTING SOLICITATION PROVISIONS INCORPORATED BY

REFERENCE

All applicable provisions included in the base BPA Contract and its subsequent amendments, are hereby incorporated into this Call Order by reference.

E.2 DELIVERY INSTRUCTIONS:

Please see instructions in Section E.4 of the BPA RFQ.

E.3 INSTRUCTIONS FOR THE PREPARATION OF THE TECHNICAL PROPOSAL

(a) Organization of Technical Proposal

(1) Format and Presentation

The technical proposal must be entirely separate from the quotation and must not include cost information nor make reference to cost data, to ensure that technical evaluation may be made strictly on the basis of technical merits.

(2) Technical Proposal Page Limitation

(i) Technical proposals may not exceed 10 pages, excluding attachments and annexes, and must be on 8.5 by 11 inch or A4 size paper, single spaced, 12-point font with one-inch margins on all sides and tabs for ease of reference to each section.

(ii) If the technical proposal contains text boxes, they must also be in no less than

10-point font, as to not unduly interfere with readability.

(iii) Cover letter, Cover page, Tabs/dividers, Table of Contents, Acronym list, Executive Summary, and Annexes do not count against the 10-page limitation.

Any page in the technical proposal that contains a table, chart, or graph, not otherwise excluded above, is subject to the page limitation.

(iv) All information from appendices must be referenced in the technical proposal and summarized and included in the annex section. All critical information from appendices/annexes clearly identified and summarized in the technical proposal will be evaluated as part of the basis of award.

(v) Additional documentation beyond the 10-page limit and the referenced annexes will not be read or evaluated by USAID.

(b) Content of Technical Proposal

(1) Information provided in the technical proposal will indicate a clear understanding of the work to be undertaken and the responsibilities of all parties involved. The technical proposal must be concise, comprehensive, and responsive to the instructions contained herein. Offerors must take into account the technical evaluation factors and sub-factors listed in Section E.6. It must clearly demonstrate how the proposed approach will addresses all technical requirements stated in the SOW.

(2) Unnecessarily elaborate brochures or other presentations beyond those sufficient to present a complete and effective proposal in response to this RFQ are not desired and may be construed as an indication of the Offeror’s lack of cost consciousness. Elaborate art work and expensive visual or other presentation aids are neither necessary nor wanted.

E.3.1 Cover Letter (does not count against 10-page limit)

Include the offeror’s name submitting the proposal and the organization’s DUNS number. Major subcontractors (hereafter referred to as “subs”) must be clearly identified, along with their DUNS numbers; major subs are defined as those expected to perform at least 20% or a prominent part of the technical effort. Include a contact person for the proposal, including his/her name (both typed and signed), title or position with the organization, address, telephone, and email address. Also state whether the contact person is the person with authority to Contract for the Offeror, and if not, that person should also be clearly identified.

E.3.2 Table of Contents (does not count against 10-page limit)

The Technical Proposal will contain a Table of Contents with page numbers indicated.

E.3.3 Acronym List (does not count against 10-page limit)

The Technical Proposal will contain a list of all acronyms used in the proposal, along with their full meaning.

E.3.4 Executive Summary (does not count against 10-page limit)

The executive summary describes the basic elements of the Offeror’s proposal. This section must include goals and objectives and summarize the key elements of the Offerors methodologies, management, personnel and implementation plan.

E.3.5 Management Approach

(a) Technical Approach – [See Section E.6.3 (a)(1)]

(1) Offerors will describe its plan to carry out the work as described in Section B.10 of this solicitation. The plan must demonstrate clear milestones towards completion of the assessment within the contract period.

(2) Offerors must explain the management approach, including plan to conduct a risk assessment, internal control evaluation, and substantive testing; the rationale and value added by each staff member for addressing the tasks and challenges described in Section B.10.

(b) Staffing Plan -[See Section E.6.3(a)(2)]

(1) Offerors must describe a staffing pattern to accomplish the work under this Call

Order.

(2) Delineation of responsibilities among assessment team members, if applicable, must be fully described i.e. a description of roles and responsibilities of each assessment team member, and clear reporting lines.

(c) Key Personnel -[See Section E.6.3(a)(3)]

Offerors must propose a Financial Review Team Leader (TL). The TL must have Professional certification as a Certified Public Accountant (CPA) or as Chartered Accountant (ACCA, ACA) and must have demonstrated progressive responsible professional-level experience in assurance and attestation services. Additionally, the TL must have sound knowledge of general attestation services, generally accepted U.S.

government auditing standards (GAGAS); and Standards for Internal Control in the Federal Government (Green book), and demonstrated experience leading medium size teams to perform assurance and attestation engagements.

Primary responsibilities of the Team Leader will include:

(1) Serving as the main point of contact between USAID and the Contractor;

(2) Ensuring effective and efficient performance for all aspects of this Call Order, including management and oversight, advisory support services, and ensuring quality control and reporting;

(3) Planning and directing performance of the Financial Review team; and,

(4) Preparing and submitting reports requested by USAID.

E.4 INSTRUCTIONS FOR THE PREPARATION OF THE PRICE QUOTE

-[See Section E.6.3(b)]

(a) The Price Quote must include a letter, on company letterhead, and signed by an authorized representative of each company, which specifically indicates the company’s agreement to be included in the offeror’s proposed offer.

(b) The price quote must be submitted under separate file from the technical proposal. The price quote must be in Excel (2003 version or newer) and compatible with a MS Windows XP operating environment. All calculations and formulas must be visible and unlocked.

Furthermore, there will be no password protected cells or spreadsheets.

(c) While there is no page limit, Offerors are encouraged to be as concise as possible, but still provide the necessary detail to address the solicitation requirement.

(d) The price quote must be separated by dividers and clearly labeled.

(e) Budget narratives must be in Microsoft Word format and can be converted to Adobe PDF for submission. As applicable, each subsequent Call Order price quotation must include a summary budget by major line items, and a subsequent tab with a detailed budget and a grand total.

(f) Offerors must structure their price quote in the following order:

Volume II – Price Quote

(1) Standard Form (SF) 1449;

(2) Price Quotation

(3) Annexes (as applicable)

E.4.1 Part 1 – Standard Form (SF) 1449

The Offeror must submit Section A (cover page) of this Solicitation SF 1449, “Solicitation, Offer and Award”. With blocks 12 through 15 completed, with an original signature of a person authorized on behalf of the Offeror to sign the offer. In addition, all amendments if any, to the solicitation must be acknowledged.

E.4.2 Part 2 – Price Quotation

(a) The overall costs and pricing for the Call Order 01 is expected to be fair, reasonable, allowable, allocable and cost-effective, and subject to a price/cost realism analysis. The offeror’s proposed rates for this Call Order must not exceed the maximum daily rates as proposed in the BPA.

(b) Offerors must submit a summary using the format in Tab (1) One of Attachment D.3 and a detailed price worksheet in Microsoft Excel format. The spreadsheet will be fully unlocked, cells unhidden, and with all formulas viewable. The contractor should expand upon the summary price worksheet to create a detailed price worksheet in Tab (2) Two that reflects how the relevant labor categories were loaded, including base rate, fringe, fee and all other applicable costs. The contractor may add complimentary sections for newly proposed labor categories.

(c) The “Fully Loaded Labor Rate” as described in the worksheet is intended to be an hourly ceiling. Call order level price quotes for labor can be discounted, but may not exceed the proposed rates at the BPA level.

(d) The Offeror must also provide a Prime and Subcontractor Percentage of Labor Overview Chart as an annex to the price schedule, identifying the anticipated labor utilization for the prime and all subcontractors.

(e) Cost/Price Narrative

(1) Offerors are required to submit a narrative detailing proposed loaded hourly rate for personnel and loaded ceiling rates for each labor category, and the factors that led to these proposed rates. For the sake of this solicitation “Loaded hourly rate” is defined as the direct hourly labor rate along with appropriate load factors, inclusive of profit. Other allowable load factors include overhead, fringe, inflation, and general & administrative (G&A) costs. The loaded hourly rates set forth in this schedule are fully burdened, not-to-exceed, ceiling prices. All relevant information contributing to an understanding of how these proposed rates are fair and reasonable must be included in the cost narrative.

(2) Offerors should include labor categories described in the SOW, including description of the skills and abilities of each of the proposed personnel in the review team. Biographical Data Sheets (see Attachment D.13 of the BPA solicitation) are required for all proposed personnel (forms may be obtained at http://www.usaid.gov/sites/default/files/AID1420-17.doc). Bio‐data forms must be properly completed, certified and signed by both employee and Contractor in the appropriate spaces with all blocks completed, as appropriate.

(3) Hourly rates must include consideration of the contractor’s established personnel policies and procedures. Final proposed rates are fixed for the contract period.

Hourly rates must not include or be applied to costs covered as other direct costs these costs are not to be considered part of the Labor Hourly Rate.

E.4.3 Part 3 – Call Order Budget

This Call Order will be awarded concurrently with the BPA.

E.5 INSTRUCTIONS FOR THE PREPARATION OF A BRANDING

IMPLEMENTATION AND MARKING PLAN

See BPA Section E.7.

E.6 EVALUATION FACTORS FOR AWARD

E.6.1 GENERAL INFORMATION

This procurement utilizes the Lowest Price Technical Acceptable (LPTA) process as set forth in

FAR 15.101-2.

E.6.2 RATING METHODOLOGY

(a) USAID will evaluate the technical proposals and price quotations on the basis of the evaluation factors listed in Section E.6.3 below.

(b) The technical proposal will be evaluated on an “acceptable” or “unacceptable” basis, using the ratings provided below:

Technical Acceptable/Unacceptable Ratings Rating Description Acceptable Proposal clearly meets the minimum requirements of the solicitation.

Unacceptable Proposal does not clearly meet the minimum requirements of the solicitation

(c) Rating of technical factors vs. price: All Technical evaluation factors must be “acceptable” in order to be considered for the price evaluation. Technical Proposals will not be ranked.

(d) Price quotation analysis will be used to determine the total evaluated price to support the selection of the lowest priced technically acceptable offeror.

(e) The selection decision will be based on evaluation of the following factors:

(1) Factor 1 – Management Approach

• Technical Approach

• Staffing Plan

• Key Personnel

(2) Factor 2 - Price

E.6.3 FACTORS FOR EVALUATION

(a) FACTOR 1 – MANAGEMENT APPROACH

(1) Technical Approach – [See Section E.3.5 (a)]

• Demonstrated understanding of the Call Order scope and objectives; and adequacy of the Offeror’s approach to performing the work.

• Reasonable and realistic timeline for completion of audit work.

• Adequacy of management approach, demonstrating a clear understanding of the specific task requirements outlined in Section B.10 and specificities of a USAID financial review.

• The degree of feasibility of plans to conduct a risk assessment; internal control evaluation; and substantive testing.

(2) Staffing Plan – [See Section E.3.5(b)]

• Relevance of staff experience and qualifications to perform the required services.

• Overall extent that staffing structure demonstrates the requisite expertise, and other capabilities necessary to effectively implement the proposed activities.

(3) Key Personnel – [See Section E.3.5(c)]

Extent to which the proposed Financial Review Team Leader meets the minimum qualifications and possesses specific skills and abilities outlined in Section E.3.5(c).

(b) FACTOR 2 – PRICE – [See Section E.4]

USAID will evaluate the price quotations based on, but not limited to all of the following considerations:

(1) Lowest Price;

(2) Fairness and reasonableness of proposed costs;

(3) Accuracy and completeness of the price quotation and supporting documentation;

and,

(4) Cost realism will verify the Offeror’s understanding of the requirements;

consistency with the Scope of Work; and assess the degree to which the cost included in the price quotation accurately represents the work effort included in the Technical Proposal.

[END OF SECTION E]