SOW W-2_1099 Service 2020_draft_04.28.2020.doc

Human Resources Office and Payment Management Branch

Combined Statement of Work (SOW) for

W-2 and 1099 (R/MISC/NEC/INT) Printing and Mailing Distribution Support

C.1 Background The Administrative Office of the United States’ Courts Human Resources Office and the Payment Management Branch is responsible for the management and delivery of W-2s and 1099s (including 1099-R, 1099-MISC, 1099-NEC and 1099-INT forms) for all court employees, judicial officers and judicial officer annuitants.

All W-2’s and 1099-R forms are generated in the Human Resources Management Information System (HRMIS). This is accomplished for the following agencies of the Federal Judiciary: Administrative Office of United States Courts (AOUSC), Federal Judicial Center (FJC), United States Sentencing Commission (USSC), United States Federal Courts, Judicial Retirement and Survivors Annuity System (JRSO) and the United States Judges.

All 1099-MISCs, 1099-NECs and 1099-INTs forms are generated in the Judiciary Integrated Financial Management System (JIFMS), a judiciary-customized CGI Federal Momentum Financial Management System.

The AO is seeking to procure a firm-fixed-price (FFP) contract for contractor provided support services for the printing and mailing of W-2, 1099-R, 1099-MISC, 1099-NEC and 1099-INT Forms.

C.2 Scope of Work

The contractor shall print and mail paper copies of the Judiciary W-2s and 1099-R, 1099-MISC, 1099-NEC and 1099-INTs Forms for calendar years 2020-2024. The contractor shall also provide the judiciary with electronic copies of all printed and mailed forms.

C.3 Place of Performance

Primary performance shall be at the Contractor’s facility. All in person meetings and presentations shall be held at the Thurgood Marshall Federal Judiciary Building located at One Columbus Circle NE Washington DC 20544. All other meetings and presentations may be held via teleconference.

Contractor provided travel is not anticipated and is therefore not authorized in performance of this contract.

C.4 Period of Performance

The Period of Performance is 12-months from the date of award with the potential for four one-year option periods. Anticipated period of performance dates is:

Base Year

- 11/01/2020 through 10/31/2021

Option Year 1

- 11/01/2021 through 10/31/2022

Option Year 2

- 11/01/2022 through 10/31/2023

Option Year 3

- 11/01/2023 through 10/31/2024

Option Year 4

- 11/01/2024 through 10/31/2025 C.5 Reporting

The contractor shall provide all written reports in adobe format. Presentation slides shall be provided in Microsoft Office Power Point. Raw data shall be provided in Microsoft Office Excel.

C.6 Safeguard of Judiciary Data In performance of this contract, the judiciary will provide the contract with proprietary data that includes Personally Identifiable Information (PII) and is not publicly available. The contractor shall take every precaution to safeguard all judiciary provided data and adhere to the following judiciary clauses: 7-20, Security Requirements and 7-35, Disclosure or Use of Information.

In no event will the contractor permit any Judiciary data to be accessed, handled, used, processed, or viewed by any individual who has not been properly screened in accordance with clause 7-20, nor shall the contractor permit any data to be handled, stored, or processed except in strict adherence to the limitations in clause 7-35.

C.7 Information Security All contractor provided services, including deliverables, shall comply with minimum security policies standards and procedures set forth in the HRIMIS IT Security Policies and Procedures and System Security Plan (SSP). The HRMIS IT SSP provides security requirements relative to HRMIS and the persons whom have access to HRMIS data held in or out of the HRMIS security boundary. The contractor’s W-2 and 1099 form application, database, and data sharing interface shall be deployed in adherence to the following security requirements:

a. The contractor shall certify at a minimum a MODERATE risk impact information system in accordance with the Federal Information Processing Standard (FIPS)-199.

b. The contractor shall meet minimum security requirements set forth is the Judiciary Information Security Framework version 2.1.2 or the National Institute of Standards and Technology (NIST) SP-800-53, Recommended Security Controls for Federal Information.

c. The contractor shall comply with industry best practice encryption methods when receiving and holding custody HRMIS sensitive data (i.e. SSL/TLS or Advanced Encryption Standard (AES)),

d. The contractor shall notify the AOUSC Security Operations Center (SOC) of any breach of HRMIS/JIFMS sensitive data in their custody within 1 hour of discovery along with information about incident response actions taken.

C.8 Deliverables

The Contractor shall provide the following for the year of award and each option year.

CLINs 001, 101, 201, 301, 401 – File load and test files The judiciary will provide the contractor test files within thirty (30) days after contract award (award anniversary for option years). The below listed items (a) through (d) must be completed to the satisfaction of the judiciary by December 31.

a. The judiciary will provide test files to the contractor using digital encryption transfer protocols such as Secure Sockets Layer (SSL) or Secure File Transfer Protocol (SFTP) as required by the government.

b. Provide five test files for review and approval prior to printing and mailing forms as defined on the following files:

1. File 1 with an estimated 50 W-2 test employee records under five FEINs in a pre-defined file layout.

2. File 2 with an estimated 10 1099-R test employee records under one FEIN in a pre-defined file layout.

3. File 3 with an estimated 25 1099-MISC test contractor records under one FEIN in a pre-defined file layout.

4. File 4 with an estimated 25 1099-NEC test contractor records under one FEIN in a pre-defined file layout.

5. File 5 with an estimated 15 1099-INT test contractor records under one FEIN in a pre-defined file layout.

c. Provide copies of the test file.

d. Provide correction and or file reload services if required.

CLINs 002, 102, 202, 302, 402 - Printing and Mailing of W-2s for employees under 5 FEINs) The contractor must have the capability to create a print and mail File 1 on a date mutually agreed upon between the judiciary and the contractor the items listed below: in (a) through (g).

a. File 1 with an estimated 37,000 W-2s on the base year, under five FEINs in a pre-defined file layout

b. Provide 10 random samples from each FEIN of form W-2, a total of 50 forms, for review and approval prior to printing and mailing all forms.

c. Print paper W-2 forms for employees provided to the Contractor

d. Prepare envelopes for judiciary certificate/permit mailing by pre-printing permit and penalty certificate on envelopes. Agency return address must be printed if suitable double window envelope is not used.

e. Fold and insert forms in envelopes. Seal envelopes and deliver to US Post Office for mailing with AOUSC permit at least 7 days prior to IRS deadline.

f. Provide confirmation of form W-2s printed and mailed by the contractor.

g. Return certified mailing permit PS Form 3615 to the AOUSC.

CLINs 003, 103, 203, 303, 403 - Printing and Mailing of 1099-R under 1 FEIN The contractor must have the capability to create a print and mail the file on a date mutually agreed upon between the judiciary and the contractor the items listed below in (a) through (g).

a. File 2 with an estimated 2,000 1099-Rs in a pre-defined file layout

b. Provide 15 random samples of form 1099-R, for review and approval prior to printing and mailing all forms

c. Print paper 1099-R forms for annuitants provided to the Contractor

d. Prepare envelopes for judiciary certificate/permit mailing by pre-printing permit and penalty certificate on envelopes. Judicial Retirement and Survivors Annuity System (JRSO) return address can also be printed if suitable double window envelope is not used.

e. Fold and insert forms in envelopes. Seal envelopes and deliver to US Post Office for mailing with AOUSC permit at least 7 days prior to IRS deadline

f. Provide confirmation of form 1099-Rs printed and mailed by the contractor.

g. Return certified mailing permit PS Form 3615 to the AOUSC.

CLINs 004, 104, 204, 304, 404 - Printing and Mailing of 1099-MISC/1099-NEC under 1 FEIN.

The contractor must have the capability to print and mail the file on a date mutually agreed upon between the judiciary and the contractor the items listed below in (a) through (g).

a. File 3 and 4 with an estimated 30,000 1099-MISCs/1099-NECs in a pre-defined file layout

b. Provide 25 random samples of each form type, 1099-MISC and 1099-NEC, a total of 50 forms, for review and approval prior to printing and mailing all forms.

c. Print paper 1099-MISC and 1099-NEC forms for contractors provided to the Contractor

d. Prepare envelopes for judiciary certificate/permit mailing by pre-printing permit and penalty certificate on envelopes. U.S. Federal Courts return address can also be printed if suitable double window envelope is not used.

e. Fold and insert forms in envelopes. Seal envelopes and deliver to US Post Office for mailing with AOUSC permit at least 7 days prior to IRS deadline.

f. Provide confirmation of forms 1099-MISCs and 1099-NECs printed and mailed by the contractor

g. Return certified mailing permit PS Form 3615 to the AOUSC.

CLINs 005, 105, 205, 305, 405 - Printing and Mailing of 1099-INT under 1 FEIN.

The contractor must have the capability to print and mail the file on a date mutually agreed upon between the judiciary and the contractor the items listed below in (a) through (g).

a. File 5 with an estimated 2,000 1099-INTs in a pre-defined file layout

b. Provide 15 random samples of the 1099-INT forms for review and approval prior to printing and mailing all forms.

c. Print paper 1099-INT forms for contractors provided to the Contractor

d. Prepare envelopes for judiciary certificate/permit mailing by pre-printing permit and penalty certificate on envelopes. U.S. Federal Courts return address can also be printed if suitable double window envelope is not used.

e. Fold and insert forms in envelopes. Seal envelopes and deliver to US Post Office for mailing with AOUSC permit at least 7 days prior to IRS deadline.

f. Provide confirmation of forms 1099-INTs printed and mailed by the contractor

g. Return certified mailing permit PS Form 3615 to the AOUSC.

CLINs 006, 106, 206, 306, 406 - W-2, 1099-R and 1099-MISC/1099-NEC records on CD.

The below listed items (a) through (d) must be completed to the satisfaction of the judiciary by January 28th each year.

a. Provide an original CD and one copy of the CD with all W-2, 1099-R, 1099-MISC/1099-NEC and 1099-INT records (printable, with form and data) for each FEIN on the two load files. Total of eight (8) CDs required.

b. W-2 CDs must be cataloged to allow search and bulk printing by state and locality (box 15 or 20) in addition to basic search criteria such as name and SSN.

c. W-2, 1099-R, 1099-MISC/1099-NEC, and 1099-INT information shall use at a minimum the Advanced Encryption Standard (AES) 256bit encryption for copying W-2 and 1099 records to CD and the encryption key must be provided by secure means to the recipient for the purpose of decryption.

d. All CDs must be labeled: Sensitive but Unclassified.