Statement of Work Financial Assessment-Draft-Final.docx

FTA Office of Planning and Environment Financial & Capacity Assessment Support Statement of Work

Statement of Work (SOW)

1.0 BACKGROUND

The Capital Investment Grants program (CIG) is a discretionary program in which the Federal Transit Administration (FTA) selects projects based on merit and eligibility. Federal public transportation law (49 U.S.C. § 5309) authorizes the CIG program. The program provides discretionary funding for fixed guideway investments such as new and expanded bus rapid transit, heavy rail, commuter rail, and light rail as well as corridor-based bus rapid transit investments that emulate the features of rail. FTA utilizes financial contractors to help FTA make its determination of local financial commitment for each project seeking CIG funds. Many projects seeking CIG funds are multibillion-dollar projects with complex financial plans. It is therefore imperative that financial contractors have financial analysis experience and knowledge of the following below:

· Financing large transit capital infrastructure projects;

· Operation and maintenance of transit systems; and

· Federal regulations, policy, and guidance.

The overall program as well as individual CIG projects are subjected to a high level of review and scrutiny by multiple agencies, organizations, and members of the public. Therefore, all financial contractors working under this contract must be able to produce reports that are written in a clear, straightforward manner so that the information can be understood by multiple audiences who do not have formal financial training. For example, financial terminology must be clearly defined or explained in every report.

There are three categories of eligible projects under the CIG program: New Starts, Small Starts, and Core Capacity. The law requires that the Secretary of Transportation make a number of determinations before awarding Section 5309 CIG Program funds for construction of any New Starts, Small Starts, or Core Capacity project. By law, each project must progress through a multi-year, multi-step process as described on FTA’s website at https://www.transit.dot.gov/funding/grant-programs/capital-investments/about-program. FTA is required to evaluate and rate the projects at several points during the process, including when a New Starts or Core Capacity project seeks entry into the Engineering phase and when a New Starts, Small Starts, or Core Capacity project seeks a construction grant agreement. Additionally, FTA must prepare an Annual Report to Congress that includes new or updated project ratings for many projects seeking CIG funds.

2.0 PURPOSE

The law specifies that the CIG evaluation and rating process be based on examination of six project justification criteria and if the project is supported by an acceptable degree of local financial commitment, including evidence of stable and dependable financing sources to construct, maintain, and operate the proposed CIG project and the existing transit system. Thus, project sponsors must generate information on project costs, ridership, financing, and environmental impacts and the FTA will verify the information given. The Office of Planning and Environment (TPE) within FTA is responsible for the project evaluation and rating process described above. FTA is seeking assistance specifically related to the determination of local financial commitment for proposed CIG projects.

Multiple projects are moving through the CIG program. Financial evaluations are needed throughout the year for various projects, but typically there is a high point of activity in the fall and winter related to preparation of the Annual Report to Congress. Therefore, contractors must have sufficient staff resources and “depth of bench” to perform multiple project reviews concurrently.

FTA has detailed guidance for project sponsors seeking CIG funds that describes the information that must be submitted to FTA to obtain a project rating:

· Guidance for Transit Financial Plans (June 2000) – This guidance outlines what a financial plan from a project sponsor should contain. Available on FTA’s website at: https://www.transit.dot.gov/funding/funding-finance-resources/guidance-transit-financial-plans.

· Reporting Instructions for New Starts, Small Starts and Core Capacity projects: FTA publishes Reporting Instructions each year to inform sponsors of proposed CIG projects of the information they must provide to FTA for project evaluation and rating. The Reporting Instructions contain the Local Financial Commitment Checklist, which must be submitted every time a project sponsor submits a financial plan to FTA. Available on FTA’s website at: https://www.transit.dot.gov/funding/grant-programs/capital-investments/how-apply.

The financial plan and supporting documentation submitted by the project sponsor forms the underlying basis for the financial contractor’s review and analysis for FTA. Therefore, financial contractors must have thorough knowledge of these guidance documents.

3.0 SCOPE

FTA conducts two types of financial reviews for CIG projects: Financial Assessments (FA) and Financial Capacity Assessments (FCA). The purpose of this procurement is to obtain contractor support to conduct detailed FAs and FCAs, which are defined as follows:

· An FA is a written financial assessment of a proposed CIG project that includes proposed ratings of high, medium-high, medium, medium-low, or low to three subfactors described in FTA’s guidance for the CIG program. The subfactors are current capital and operating condition; commitment of capital and operating funds; and reasonableness of capital and operating cost estimates and planning assumptions, and capital and operating funding capacity. A summary financial rating is assigned based on a combination of the individual ratings for each measure according to the weights identified in FTA’s guidance.

· An FCA is an important, time-sensitive document that supports FTA’s decision to provide a construction grant to a CIG project. An FCA includes the following elements:

· An analysis of the project sponsor’s system-wide financial condition;

· An analysis of the project sponsor’s system-wide financial capability;

· Stress tests, which explore the impact on the project sponsor’s financial plan of changes in assumptions found to be of concern in the financial capability analysis;

· An updated local financial commitment rating; and

· The financial contractor’s assessment of the project sponsor’s ability to satisfy the financial capacity requirement for CIG funds.

4.0 DESCRIPTION OF SERVICES

TASK 1 / CONTRACT LINE-ITEM NUMBER (CLIN) 0001: FINANCIAL ASSESSMENTS (FA)

Upon receipt of an FA assignment, the financial contractor conducts a financial assessment based on information submitted by the project sponsor, supplemented by historical information and industry databases. The evaluation is to be conducted in accordance with the following guidance documents available on FTA’s website as indicated below:

· The most recent version of FTA’s Final Interim Policy Guidance for the Capital Investment Grants Program (available at: https://www.transit.dot.gov/funding/grant-programs/capital-investments/capital-investment-grants-program-regulations-guidance)

· FTA Financial Contractor Guidelines and Standards for Assessing Local Financial Commitment of Proposed Capital Investment Grants Projects (available at: https://www.transit.dot.gov/funding/grant-programs/capital-investments/capital-investment-grants-program-regulations-guidance)

· The most recent version of FTA’s Reporting Instructions for the Section 5309 Capital Investment Grants Program (available at: https://www.transit.dot.gov/funding/grant-programs/capital-investments/how-apply)

In addition to the guidance documents listed above, FTA provides the financial contractors with FA templates in Microsoft (MS) Office Word and Excel. These templates must be adhered to for both content and format to ensure consistency among all FAs.

In the fall of each year, FAs must be produced and delivered according to tight schedules dictated by the publication of the Annual Report on Funding Recommendations. FTA provides financial contractors with a schedule for all FAs needed at the beginning of each Annual Report cycle. Typically, submissions are received in early September, with draft assessments due in October. FAs are also needed throughout the year when New Starts and Core Capacity projects request to enter the Engineering phase, Small Starts projects request construction grant agreements, or when projects request ratings from FTA off-cycle from the Annual Report. Therefore, financial contractors must have adequate resources to prepare multiple FAs at the same time under tight deadlines.

If possible, prior to assigning an FA, the Contracting Officer’s Representative (COR) schedules a conference call to brief the contractor on the agency and project background for the subject FA, including any financial areas of concern that are known to FTA. When a financial plan is submitted to FTA for the assigned FA, the COR sends the submittal to the financial contractor. The financial contractor has one week to complete a sufficiency review and notify the project sponsor of any missing information needed to complete the FA review. The COR must be included, or copied, on all communications with the project sponsor.

The financial contractor shall examine both the capital and operating financial data submitted by the project sponsor, as well as the underlying planning assumptions pertaining to the proposed project and the entire transit system. Considerable discussion with the project sponsor may be necessary to understand the financial plan submission and ensure all required materials have been provided.

The contractor shall prepare a written draft assessment that discusses the reasonableness of the proposed financial plan and its underlying assumptions, the level of funding commitments obtained by the project sponsor, the reasonableness of the project sponsor’s plans to secure the remaining funding commitments, the project sponsor’s capacity to cover unanticipated cost overruns or funding shortfalls that could occur as the project moves forward, and recommendations for improvement to the financial plan. The contractor shall independently verify all supporting documentation submitted by the project sponsor and not rely solely on project sponsor claims. The financial contractor shall keep a record, or log, of all requests for information submitted to the project sponsor, including when responsive information was submitted by the project sponsor. The communication log is submitted by email to FTA as an Excel document with the draft FA. During the course of the FA, the contractor must copy the COR on all communication and ensure that FTA has copies of all files and documentation provided by the project sponsor.

FTA may schedule one or more meetings with the contractor to discuss findings and results. The contractor must respond to all FTA comments and questions, typically in “track changes” mode within the document. It is not acceptable for contractors to ignore or delete FTA comments, edits or questions, without providing a response or explanation. As revisions to the document are made in response to FTA comments and questions, the contractor is responsible for ensuring consistency of information and ratings throughout each section of the FA. For example, the subfactor ratings in the project profile must match those in the text of the FA. Only once FTA is satisfied with the quality and content of the FA, determining it is in compliance with the FTA Financial Contractor Guidelines and Standards for Assessing Local Financial Commitment of Proposed Capital Investment Grants Projects (available at: https://www.transit.dot.gov/funding/grant-programs/capital-investments/capital-investment-grants-program-regulations-guidance) will FTA request a final version from the contractor.

The contractor shall participate in meetings with FTA to: (1) discuss schedules, plans, activities and requirements; (2) review and discuss draft assessments with TPE staff; (3) provide feedback to FTA on the process and how it might be improved; and (4) as otherwise determined by FTA. Travel for these purposes will be authorized separately, as needed, although conference calls may suffice in many situations.

Contractors must submit monthly reports providing the following information for active FAs: hours/dollars used to date, hours/dollars used in prior month, and remaining hours/dollars assigned. Emailed reports are sufficient.

TASK 2 / CLIN 0002: FINANCIAL ASSESSMENT (FA-R) REFRESHES

After an initial FA is performed for a project, an update, or “refresh,” to an FA may be performed, for example, before FTA’s decision to allow a CIG project to enter the Engineering phase of the program. Additionally, another example would be a minor change of scope to a Small Starts project just before the project gets a grant could affect the total project cost. The need for a refresh will depend on the extent of changes to the project cost estimate or other factors since the time of the previous FA, as determined by FTA. In situations where an FA is being prepared prior to FTA’s decision to allow a CIG project to enter the Engineering, it is not uncommon for the FA to be on the critical path of all documentation needed to support FTA’s decision to move forward within the program. This occurs primarily because other FTA oversight reviews related to project cost, scope, schedule and risk performed by the Project Management Oversight Contractor, must generally be completed before the FA can be finalized. Accordingly, the Financial Contractor must be prepared to quickly and efficiently complete the FA scope of work, review the changes and provide an updated rating for a project.

The scope, process and steps for conducting an FA Refresh are the same, minus an extensive sufficiency review, as for an FA as described under CLIN 0001 except that the contractor would get 21 days to provide instead of the historical 30 days. While a contractor is actively working on an FA, they are required to submit brief monthly reports detailing by project, the hours and/or dollars used to date, the hours and/or dollars used in the prior month, and the remaining hours and/or dollars assigned. Contractors must notify the COR in a timely manner if additional time is needed to complete an FA Refresh. Emailed reports are sufficient.

TASK 3 / CLIN 0003: DETAILED FINANCIAL CAPACITY ASSESSMENT (FCA)

The FCA is conducted in accordance with FTA’s Financial Contractor’s Guide for Conducting Financial Capacity Assessments for the Capital Investment Grants Program (available at: https://www.transit.dot.gov/funding/grant-programs/capital-investments/capital-investment-grants-program-regulations-guidance).

The purpose of an FCA is to help FTA make the following local financial commitment determinations as required by Federal public transportation law at 49 USC 5309, for projects seeking Full Funding Grant Agreements (FFGA):

· the proposed project financial plan provides for the availability of contingency amounts that the Secretary determines to be reasonable to cover unanticipated cost increases or funding shortfalls;

· each proposed local source of capital and operating financing is stable, reliable, and available within the proposed project timetable; and

· local resources are available to recapitalize, maintain, and operate the overall existing and proposed public transportation system, including essential feeder bus and other services necessary to achieve the projected ridership levels without requiring a reduction in existing public transportation services or level of service to operate the project.

An FCA is prepared shortly after a New Starts or Core Capacity project receives FTA approval to enter the Engineering phase of the CIG process.

When an FCA is prepared, the COR should be copied on all written communications, within or outside FTA, relevant to the FCA. The financial contractor should invite the COR to participate in all verbal communications, informing them in advance of the topic of the discussion. The financial contractor shall keep a record, or log, of all requests for information submitted to the project sponsor, including when responsive information was submitted by the project sponsor. The communication log is submitted to FTA with the draft FCA. The contractor must copy the COR on all communication and ensure that FTA has copies of all files and documentation provided by the project sponsor during development of the FCA.

The FCA includes the following steps:

Gathering Initial Data If possible, prior to assigning an FCA, the COR schedules a conference call to brief the contractor on the project sponsor agency and project background, including any financial areas of concern that are known to FTA. Background data should be obtained from FTA including:

· Previous financial assessments of the project sponsor/project;

· Previous findings;

· Relevant correspondence between FTA and the project sponsor; and

· Most recent Project Management Oversight report.

When a financial plan is submitted to FTA for the assigned FCA, the COR sends the submittal to the financial contractor. The financial contractor has one week to complete a sufficiency review and notify the project sponsor of any missing information needed to complete the FCA review. The financial plan submitted by the project sponsor for the FCA should conform to FTA’s Guidance for Transit Financial Plans. In addition, the financial plan submittal should include all supporting documentation items listed in the Local Financial Commitment Checklist from the current version of FTA’s Reporting Instructions. The Financial Contractor may later determine that additional information is required to complete the FCA, but the sufficiency review ensures that adequate information is obtained to begin the technical analyses.

Technical Analysis Before starting the quantitative analysis, the Financial Contractor should develop an understanding of the project sponsor’s institutional context and research the general powers of the project sponsor. After this background work is completed, the contractor’s technical analysis consists of the following elements:

· Analyze the financial plan, cash flow, commitment of funds, and finance charges specific to the proposed CIG project.

· Select appropriate metrics that will be used to analyze the capital and operating aspects of the financial plan.

· Perform a system-wide financial condition analysis of the project sponsor and existing transit system.

· Perform a system-wide financial capability analysis of the project sponsor’s ability to build the proposed CIG project and continue to operate and maintain the existing transit system.

· Conduct a stress test to estimate the impact on the project sponsor’s financial capability of less favorable outcomes for material assumptions found to be of concern in the financial capability analysis.

· Prepare an updated local financial commitment rating for the project.

· Identify and describe recommendations that the project sponsor must address to satisfy the financial capacity requirement for CIG funds.

Site Visit to Project Sponsor On a case-by-case basis, FTA may approve field work in the form of on-site meetings with the project sponsor to gather additional information on the project, the project sponsor’s financial condition, and the financial plan. The contractor must receive FTA approval prior to carrying out these activities. To receive this approval, the contactor must provide written justification which should include the proposed activities and estimated timeframe for completion.

Prepare Draft FCA Report The contractor shall prepare a draft FCA report for FTA (including the proposed local financial commitment rating). Along with the draft FCA, the contractor shall submit the cash flow model and calculations underlying the sensitivity analysis and stress scenarios. In addition, the contractor shall submit a communications log containing a record of all requests for information submitted to the project sponsor, including the dates when responsive information was submitted by the project sponsor.

Prepare Final FCA Report FTA may schedule one or more meetings with the contractor to discuss findings and results. The contractor shall prepare a final FCA report incorporating feedback and edits received from FTA.

Meetings/Conferences

· At the request of the COR, the contractor shall meet with FTA at any time as necessary. Typically, these meetings can be handled via conference call, but at times travel may be necessary;

· At the request of the COR, the contractor shall coordinate with FTA on follow-up questions to project sponsors;

· Contractor may be requested to participate in FTA meetings and teleconferences on short notice.

While a contractor is actively working on an FCA they are required to submit brief monthly reports detailing by project, the hours and/or dollars used to date, the hours and/or dollars used in the prior month, and the remaining hours and/or dollars assigned. Contractors must notify the COR in a timely manner if additional hours are needed to complete an FCA. The contractor must receive FTA approval prior to working additional hours. To receive this approval, the contactor must provide written justification which should include the proposed activities and estimated timeframe for completion. Emailed reports are sufficient.

TASK 4 / CLIN 0004: FINANCIAL CAPACITY ASSESSMENT REFRESHES

After an initial FCA is performed for a project, an update, or “refresh,” to an FCA may be performed before FTA’s decision to award a construction grant to a CIG project. The need for a refresh will depend on the extent of changes to the project cost estimate or other factors since the time of the previous FCA, as determined by FTA. In situations where an FCA is being prepared prior to FTA’s consideration of a project for a construction grant, it is not uncommon for the FCA to be on the critical path of all documentation needed to support FTA’s decision to move forward with the construction grant award. This occurs primarily because other FTA oversight reviews related to project cost, scope, schedule and risk performed by the Project Management Oversight Contractor, must generally be completed before the FCA can be finalized. Accordingly, the Financial Contractor must be prepared to quickly and efficiently complete the FCA scope of work.

The scope, process and steps for conducting an FCA Refresh are the same as for an FCA as described under CLIN 0003. While a contractor is actively working on an FCA they are required to submit brief monthly reports detailing by project, the hours and/or dollars used to date, the hours and/or dollars used in the prior month, and the remaining hours and/or dollars assigned. Contractors must notify the COR in a timely manner if additional hours are needed to complete an FCA Refresh. Emailed reports are sufficient.

TASK 5 / CLIN 0005: SPECIAL ASSIGNMENTS

Special assignments are on an as-needed basis. The contractor may be asked to provide assistance on special assignments related to capital project financial reviews. This may include, but is not limited to developing informational materials about the FTA financial review process, updating FTA tools and guidance documents, preparing project or program summary reports for FTA, etc.

The following are examples of the types of tasks that may be assigned by FTA under this CLIN as needed. Task assignments under this CLIN are not guaranteed.

· The contractor may be asked to conduct special financial assessments for selected cities and designated metropolitan areas in which complex, multi-modal, or multiple capital projects are proposed. FTA will generally require no more than five of these special assessments per year. They would generally be distributed among participating contractors after consideration of whether there are any conflicts of interest or whether any contractor has relevant past experience with the city or metropolitan area under review. These types of financial assessments will help determine whether the shared resources of regional participants are sufficient to undertake the collection of projects being proposed. Data collected will be analyzed to determine the program of projects that can be undertaken given overall regional fiscal constraints, local financial commitments, and institutional arrangements. Site visit(s) may be required. More specific instructions would be provided with each assignment.

· The contractor may be asked to provide technical assistance to FTA to identify systemic or recurring programmatic deficiencies identified with capital project financial planning. After identifying the deficiencies, the contractor may be asked to develop guidance, technical procedures, and/or methodologies for FTA that could assist with rectifying the problems. Specificity about the assignments under this CLIN will be described in detail in the Task assignment including expected deliverables and schedule. Examples under this CLIN may include:

1. Development/refinement of financial evaluation measures used in FTA’s Capital Investment Grants program;

2. Development of technical guidance for project sponsors on financial planning methodologies;

3. Analysis of capital and/or operating cost methodologies used by a project sponsor;

4. Development of deficiency correction materials; and

5. Development of outreach and training materials.

· The contractor may be asked to provide a review of the capital costs commitment levels for a sponsor’s submittal into FTA’s Expedited Project Delivery (EPD) Pilot Program. As this is a Pilot Program, there is no published policy guidance such as there is with the CIG Program. EPD Pilot Program requirements are contained in the legislation (Section 3005(b) of the FAST Act) and in a Notice of Funding Opportunity (NOFO) published in the Federal Register, https://www.transit.dot.gov/funding/applying/notices-funding/expedited-project-delivery-pilot-program-notice-funding. This NOFO describes how a sponsor should apply for funding under the EPD Pilot Program and includes submission requirements and the criteria FTA will use to evaluate proposed projects for funding. Historically, applications for this program will be accepted on a continuing basis until up to eight grants are awarded and subject to funding availability. For this kind of review the contractor would determine if the non-Federal capital funds are currently available and/or committed over a period of no longer than three weeks of receipt of materials from FTA . More specific instructions would be provided with each assignment.

TASK 6 / CLIN 0006: TRAVEL AND PER DIEM

The Contractors shall obtain approval from the COR before incurring any such costs and provide detailed travel expenses in its monthly invoices. Travel and per diem, if authorized under this contract, shall be reimbursed in accordance with the Government Travel Regulations currently in effect. Current per diem rates are listed at: https://www.gsa.gov/travel/plan-book/per-diem-rates

Travel requirements under this contract shall be met using the most economical form of transportation available. If economy class transportation is not available, the request for payment voucher must be submitted with justification for use of higher-class travel indicating dates, times, and flight numbers. All travel shall be scheduled sufficiently in advance to take advantage of offered discount rates, unless otherwise authorized by the Contracting Officer.

5.0 LABOR CATEGORIES WITH DESCRIPTIONS/QUALIFICATIONS

The Key Personnel under this requirement are as follows:

Managing Director: Bachelor’s degree or Master’s Degree in business and/or finance with at least 10 years or 15 years (with Bachelor’s) experience in the planning, development, or evaluation of transportation project financial plans.

Experience in transit is highly preferred. Demonstrate analytical capabilities and clear writing skills.

Responsible for all aspects of resource allocation and management, task deliverables, quality control, and task performance requirements. Participation and full knowledge of projects is expected for interactions with FTA and the project sponsor. Has an understanding of FTA’s capital investment program process and requirements. Must have ability to manage multiple projects at one time in time constrained situations.

Responsible for interaction with transit agencies and project sponsors on technical issues, providing analytical reports, and assistance to senior government officials on related issues.

Senior Financial Analyst: Bachelor’s degree or Master’s Degree in business and/or finance with at least 10 years or 15 years (with Bachelor’s) experience in the planning, development, or evaluation of transportation project financial plans.

Experience in transit is highly preferred. Demonstrate significant experience with the key characteristics of transit financial plans and their development, including the development of financial forecasts and the models associated with them. The ability to analyze crucial variables/assumptions in a financial model and run sensitivity analyses to determine effects.

Must demonstrate specific experience in the following areas: transportation financial forecasting and evaluation, transportation planning, complex funding source analysis, and capital and O&M revenue and cost analysis. Responsible for all aspect of resources allocation, budget development, task deliverables, quality control, and task performance requirements. The individual must have an understanding of FTA’s capital investment program process and requirements. Responsible for interaction with transit agencies and project sponsors on technical issues, providing analytical reports, and assistance to senior government officials on related issues. Record of time/resource management and meeting deadlines is essential.

Financial Analyst: Bachelor’s degree in finance, transportation or planning with some experience in the planning, development, or evaluation of transportation project financial plans. Experience in transit is preferred. Record of effective time/resource management and meeting deadlines is essential.

Assist in data review, data compilation, financial model development and evaluation.

Provides assistance in transportation financial forecasting and evaluation, transportation planning, complex funding source analysis, and capital and O&M revenue and cost analysis. The individual must have an understanding of FTA’s capital investment program process and requirements.

6.0 DELIVERABLES AND DELIVERY SCHEDULE

All deliverables should be emailed to the COR.

TASK 2/CLIN 0002

Sufficiency Review 7 days after receiving sponsor submittal information

7.0 PERIOD OF PERFORMANCE

The period of performance (POP) includes one (1) base period from the date of the award and four (4) twelve-month option periods. Exercise of the option periods is solely based on the contractor's performance and the Contracting Officer’s discretion.

8.0 PLACE OF PERFORMANCE

The work under this requirement shall be for the Office of Planning and Environment within the FTA Headquarters Building, currently located at 1200 New Jersey Ave SE, Washington, DC 20590. The work performed shall be at the individual business headquarters and submitted electronically to FTA.

9.0 GOVERNMENT FURNISHED PROPERTY/EQUIPMENT

The Government is not providing any property/equipment to perform any of the tasks under this requirement.

10.0 INSPECTION AND ACCEPTANCE

Transmission of materials for inspection and acceptance may be via email to the Contracting Officer’s Representative (COR).

11.0 SCOPE OF INSPECTION

The Contracting Officer or the COR) at the U.S. Department of Transportation, Washington, DC, will perform final inspection and acceptance of all deliverables called for by the resultant contract. The Contracting Officer reserves the right to designate other Government agents as authorized representatives upon unilateral written notice to the Contractor, which may be accomplished in the form of a transmittal of a copy of the authorization.

12.0 BASIS OF ACCEPTANCE

All written deliverable products shall be submitted electronically. The COR shall review all deliverables in accordance with the Quality Assurance and Surveillance Plan (QASP) (See Attachment J-2 Quality Assurance and Surveillance Plan). If a deliverable is not accepted, the COR shall notify the contractor in writing within 2 weeks and provide an explanation of any deficiencies. The contractor and the COR shall agree on a number of days to resubmit the deliverable depending on the required changes.

• The contractor is expected to perform at the highest levels of professional and technical competence in performing the identified task orders to achieve stated objectives. It is expected that the Contractor shall ensure all deliverables conform to the task descriptions and work objectives stated in the order.

13.0 QUALITY ASSURANCE SURVEILLANCE PLAN

The Government shall perform quality assurance in accordance with FAR Subpart 46.4, Government Contract Quality Assurance and the QASP. The Government intends to do quality assurance to monitor the quality of the contractor’s performance. The oversight provided for in the order and by the Government’s monitoring, will help to ensure that service levels reach and maintain the required levels throughout the contract term. Further, the Government’s quality assurance monitoring will provide the COR with a proactive way to avoid unacceptable or deficient performance, and provides verifiable input for the required Past Performance Information Assessments. Thus, the contractor must ensure that deliverables meet the Government’s acceptance.