SOW_CreditResearch_v2_MHB_JPE_FINAL_08112023.docx

STATEMENT OF WORK

Title: Credit Research for CPO Risk Requesting Lab: CHIPS Program Office – Risk Office

I. BACKGROUND INFORMATION

In 2022, President Joe Biden signed into law the CHIPS and Science Act of 2022, which provides the Department of Commerce (DOC) with $50 billion for programs to support semiconductor research, development, and manufacturing—while also investing in American workers. These programs seek to restore U.S. leadership in semiconductor manufacturing by providing incentives and encouraging investment to expand the domestic manufacturing capacity necessary to produce the most advanced semiconductors needed for applications in artificial intelligence and high-performance computing, as well as less advanced semiconductors that remain critical components of everything from automobiles to microwave ovens. In addition to major manufacturing investments, these programs will also create a dynamic new center for innovation and research, laying the groundwork for the creation of the next generation industries.

II. OBJECTIVE

CPO requires detailed information that can provide data and analysis on semiconductor credit research, ratings, and financial data. CPO requires this information in order to properly review and evaluate potential financial and credit risks associated with loan applications submitted in response to the CHIPS notice of funding opportunities; without this data CPO would not be able to meet its mission and obligations under the CHIPS Act.

III. Requirements/Scope of Work

CPO is seeking an commercial off the shelf subscription to a service that provides access to credit research, ratings, and analysis for both public and private companies tailored specifically to the U.S. and global semiconductor manufacturing sector, updated as credit changes occur. Such a service should include company financial and credit metrics (e.g., revenues/sales, assets/liabilities, credit rating history and outlook, ESG ratings) in order to evaluate risk in CHIPS applications as well as post-award risk monitoring. The service should also include semiconductor sector forecast/economic outlook information to assess any relevant financial and macroeconomic trends and events that may affect overall credit quality of companies in the sector. Any forecast/outlook information should include data for at least 1 year out.

Specifically, CPO requires updates on key credit and financial performance indicators, ratings, and economic research for both corporate enterprises and project finance/infrastructure projects as such entities’ credit and financial situations change. Such information shall be used to assist CPO in early detection of credit deterioration or improvement in a timely manner as the agency determines CHIPS award eligibility and monitors risk and debt profiles for its semiconductor portfolio over time. Additionally, the semiconductor sector outlook forecasts will be critical for CPO to determine and monitor any impacts of macroeconomic forces on the credit and financial health of companies within the sector.

The subscription should contain licenses for up to 10 users, with the option to modify the contract to add additional users if needed in the future. In addition, CPO requires the subscription to include ongoing customer support and training services for each user during the duration of the subscription.

IV. DELIVERABLES

COR

V. TRAVEL

N/A

VI. PLACE OF PERFORMANCE/PERIOD OF PERFORMANCE/LEAD TIME

CPO would like access to a data subscription period of twelve (12) months from the award date. If desired, will exercise option year(s) after first year.

VII. PAYMENT SCHEDULE

Pay up front for one year subscription.