QA Report_1-5-2011

Questions and Answers Report, continued

January 5, 2011 Return Preparer Testing and Fingerprinting Support Services

Solicitation No. TIRNO-11-R-00005 (dated December 6, 2010)

Questions and Answers Report (Set 1) RFP General

1. Question: “The IRS is asking the testing vendor to propose a solution with a fingerprinting partner. It is understandable that synergy between the two vendor be desired, we would like further clarity as to why the proposal is being evaluated on the capabilities of the other when, for the most part, their respective services are exclusive of one another?”

Answer: Evaluation of each requirement (testing and fingerprinting) will be based on their respective evaluation criteria in Section IV.

2. Question: “Are we correct in assuming that the terms “vendor” and “contractor” are used interchangeably throughout the RFP?”

Answer: Yes. The terms "vendor" and "contractor" are used interchangeably throughout the RFP.

RFP SECTION I, STATEMENT OF OBJECTIVES

Paragraph 1.1, Scope/Objective

3. Question: “Will the awarded vendor be issued a ORI for channeling with FBI approved Channelers?”

Answer: The Originating Agency Identification (ORI) number would not be needed or issued as the awarded vendor will be transmitting and exchanging data with the channeler and IRS, and not directly with the FBI.

Paragraph 1.1, Scope/Objective

4. Question: “Can we get the logical and physical architecture specifications for the [incumbent’s] PTIN system?”

Answer: The logical and physical architecture specifications for the incumbent’s PTIN system will be provided after contract award as Government Furnished Information, if deemed applicable.

Paragraph 1.3, Test Development and Scoring

5. Question: “’Develop one or more (at IRS’s option) on-line tests...’ Are there any constraints on the test (e.g., time, format, length, use of pretest items)?”

Answer: The IRS has not set any constraints on the test (e.g. time, format, length, use of pre-test items). A job analysis is required to be prepared, that will serve as a key component of the test. IRS will have final approval over test specifications and test plan.

Paragraph 1.3, Item 1

6. Question: “Does the IRS currently own exam content (such as the Special Enrollment Exam or the competency tests for the Volunteer Income Tax Assistance Grant Program) that is comparable to the planned blueprint and content for the Return Preparer Exam? Would the IRS be amenable to allowing vendors access to this content as a reference (relevant JTA specs, item content, etc.) in developing the Return Preparer exam?”

Answer: The vendor will not have access to any IRS owned exam content other than 2005 and earlier Special Enrollment Examination questions and answers, which are publicly available and found at http://www.irs.gov/taxpros/agents/article/0,,id=100711,00.html.

Paragraph 1.3

7. Question: “Can the IRS share if the additional tests referenced in this section would be subject to the same fee structure as will be identified in Volume 1?”

Answer: Vendors should assume three test and one user fee for the requirements found in 1.3 and 1.4. Please refer to the answer to question 73.

Paragraph 1.3, Test Development and Scoring

8. Question: “RFP mentions pilot program. Does this start 6 months after award, or is this some time prior to go live?”

Answer: Pilot testing is to be completed prior to the start date as specified in the contract.

Paragraph 1.3, Test Development and Scoring

9. Question: “Can the IRS provide any direction or guidelines for test development requirements? For example, number of questions, exam time, number of item review meetings, job analysis requirements, etc. It is difficult for bidders to propose a per exam fee without any of this information.”

Answer: Appendix 1 of the Return Preparer Review (Dec. 2009) provides a recommendation as to the content of the examination, that may be used as a starting point in conducting a job analysis. At this time the Service does not have any additional direction or guidelines for test development requirements. The Return Preparer Review can be accessed at http://www.irs.gov/pub/irs-pdf/p4832.pdf.

Paragraph 1.4, Additional Tests.

10. Question: “’At the option of IRS the vendor may be required to develop additional tax competency tests for tax professionals.’ What are some additional tests that are anticipated? How many tests are anticipated?”

Answer: Please refer to the Return Preparer Review (December 2009) at http://www.irs.gov/pub/irs-pdf/p4832.pdf. Initially, two examinations will be offered for tax return preparers who are not attorneys, certified public accountants, or enrolled agents. The first test will cover wage and non-business income Form 1040 series returns. The second test will cover wage and small business income Form 1040 series returns. The proposed content for two examinations is shown in Appendix I. The IRS plans to add a third competency examination for return preparers after the initial implementation phase is completed. The third competency examination will address business tax issues.

Paragraph 1.5, Item 5

11. Question: “The requirement states, “Site visits may occur to ensure compliance. The vendor must implement all IRS recommendations for testing security within a reasonable amount of time after the site visit.” Can the IRS verify that the site audits are conducted to ensure compliance with previously agreed upon and approved protocols and standards outlined in the contract?”

Answer: Site visits will include reviews to ensure plant, physical and data security complies with all security requirements as specified in the RFP. The requirements are not negotiable.

Paragraph 1.5, Item 13

12. Question: “Section I, Paragraph 1.5, Item13 “describes the testing conditions. Are there any known reference sources (books, reference printouts, etc.) that the test taker will need to be provided?”

Answer: These items will be determined when the test is developed, and are subject to IRS approval.

Paragraph 1.5, Item 14

13. Question: “Which methods of payment are to be supported?”

Answer: The Vendor will collect IRS user fees from applicants and remit daily to the IRS through Pay.gov. The Vendor should be able to accept electronic payment via debit or credit card, as well as paper checks. Please refer to RFP Section II, 2.0. Remittance of Government User Fee.

Paragraph 1.5, Item 14

14. Question: “Does the candidate have to be previously fingerprinted prior to taking the Competency Exam?”

Answer: Candidates do not have to be previously fingerprinted prior to taking the competency exam. Tax return preparers who have PTINs before testing becomes available will have until Dec. 31, 2013, to fingerprint and pass the competency test. After testing becomes available, new tax return preparers will be required to fingerprint and pass the competency test before they can obtain a PTIN.

Paragraph 1.8

15. Question: “This topic references IRS case numbers. Can the IRS share how the vendor will be able to authenticate the IRS-issued case number provided by an applicant? For example, will the IRS send the Testing vendor a data feed with valid case numbers?”

Answer: The onus will be on the preparer to provide accurate identifying information including SSN and case number. Preparers will be provided with the case number which can be printed and shared with the test vendor by the preparer. The IRS will likely not provide the vendor with a validated list of case numbers, although, details associated with this process have not been finalized.

Paragraph 1.8, Item 8

16. Question: “In order to allow vendors to plan properly for ADA accommodations, can the IRS please provide a percentage breakdown, by each category of accommodation (e.g. extended time, paper and pencil due to religious observance, JAWS-enabled test delivery, professional assistive readers, etc), for the Enrolled Agent testing program over the last 2 to 3 years?”

Answer: The IRS does not possess information relevant to ADA accommodations for the Enrolled Agent testing program, and therefore cannot provide the percentage breakdown by each category of accommodation.

Paragraph 1.12

17. Question: “Section 508 Compliance states “Vendor will ensure all communication is 508 compliant. IRS certification will be required within 6 months of award of contract. Please refer to Section 508 later in this document for additional information.” Can the IRS elaborate on what is meant by ‘IRS Certification?’ ”

Answer: IRS will test the deliverables to assure the vendor has met all applicable provisions and conditions as outlined in Section 7.0, "Section 508 Compliance", and the requisite clauses found in III -22.0, 23.0 & 24.0.

Paragraphs 1.12 & 2.3

18. Question: “Section 1.12 requires all vendors be 508 compliant within 6 months of award of contract. Section 2.3 requires all vendors must meet Capability Maturity Model Integration (CMMI) Level 2 and further requires in Section III, subsection 20 (7) that that maturity or capability level be determined by an appraisal for which the commencement date of the on-site appraisal occurred within 18 months immediately preceding the due date of the verification and validation for a given year. Can CMMI Level 2 certification be revised to be consistent with 508 compliance and require verification and validation within 6 months of contract award?”

Answer: The CMMI® Level 2 certification cannot be revised to be consistent with 508 compliance and require verification and validation within 6 months of contract award.

Paragraph 1.13, Item 4

19. Question: Will the accept email notification instead or in addition to the mailing of results?

Answer: E-mail notification of test results is not acceptable for applicants who tested on paper. The requirement is notification by U.S. mail.

Paragraph 1.13, Item 9

20. Question: “This topic references a secure mailbox for the preparer. Can the IRS clarify this and how it would be used? The testing vendor typically provides applicants with a secure account (login ID and PW) to use during the testing process, not an email account.”

Answer: There is a requirement for the vendor to send secure electronic information to a tax return preparer. To meet our standard security requirements we will require the vendor to create a "secure message repository" where an email for the applicant is sent and for which the applicant would then have to log in securely to retrieve the email.

Paragraph 1.13 Item 11

21. Question: “Section 1.13 #11 states vendor "responsible for all costs related to this process at no cost to the Government." Yet Section 2.9 indicates "all costs related to processing the fingerprint information reports should be calculated separately from all other costs" Is the intent that all costs be included in any fee to be paid by the applicant? Or should any reporting costs be priced separately to be paid by the IRS?”

Answer: Yes, it is the intent of the IRS that all costs be included by the fee paid by the applicant. The "note at the end of the fingerprinting section refers to the cost calculations of fingerprinting and is intended to remind vendors that the cost calculations are for two separate processes. The fingerprinting process may be awarded to the testing vendor, and a separate vendor. The applicants will be required to pay two separate fees, one for testing and one for fingerprinting. The government will not be obligated to pay any fees, costs, or other charges or expenses in connection with the requirements as specified in the RFP.

Paragraph 2.1.1

22. Question: “Are there specific hours of operation required for the toll-free call center?”

Answer: There are no specific hours of operation required for the toll-free call center, however weekend and extended hours may be required. The hours of operation for the toll-free call center should be commensurate with the call volume, and advertised on the web site to ensure candidates will be aware of call center hours.

Paragraph 2.3

23. Question: “[Paragraph] 2.3 requires all vendors must meet Capability Maturity Model Integration (CMMI) Level 2 and further requires in Section III, subsection 20 (16)(b) that that contractors performing software development for the IRS as required under the contract shall have and maintain a CMMI-DEV level 2 or higher maturity or capability rating. Can CMMI Level 2 certification be held by the subcontractor performing the software development work on behalf of the prime or must it be held by the prime contractor?”

Answer: CMMI® level applies to the life cycle of the project including software development. Therefore the prime contractor and subcontractors shall comply with CMMI® level 2 or higher for duration of contact.

Paragraph 2.8, Item 8

24. Question: “Can the IRS please confirm that the development of a Quality Assurance Plan relates only to the successful contractor upon contract award? In other words, is it the case that bidders need not submit Quality Assurance Plans with their proposal submissions?”

Answer: Offerors must submit a quality assurance plan with their proposal submission.

Paragraph 4.0, Items 1, 2, and 6

25. Question: “Can the IRS please confirm that the development of a timeline, quality assurance plan, and database plan relate only to the successful contractor upon contract award? In other words, bidders need not submit a timeline, quality assurance plan, and database plan with their proposal submissions.”

Answer: Offerors must provide a timeline, and quality assurance, database and electronic data transmission plans, as outlined in 4.0 Managerial and Administrative Considerations with proposal submissions.

Paragraph 6.8, Safeguarding / Protecting Sensitive Personally Identifiable Information (PII)

26. Question: “Is name and email address together considered PII data?”

Answer: The name and the e-mail address constitute PII data.

Paragraph 6.8, Safeguarding / Protecting Sensitive Personally Identifiable Information (PII)

27. Question: “If PII data is encrypted so non-US staff cannot see the data would this satisfy the FISMA requirement?”

Answer: Encrypting PII may address some controls but not all FISMA requirements.

Paragraph 6.8, Safeguarding / Protecting Sensitive Personally Identifiable Information (PII)

28. Question: “If the data held in the testing system is not considered PII is the vendor still required to be FISMA compliant?”

Answer: FISMA applies to all systems operated on behalf of the Federal Government regardless of the existence of PII.

Paragraph 7.0, Section 508 Compliance

29. Question: “Can we use the text to speech features of zoomtext (installed at every workstation) instead of JAWS? Can we handle the remainder of candidates using accommodations already in place?”

Answer: Zoomtext COTS can be used along with or without JAWS, however it is not sufficient for 508 compliance.

Paragraph 8.2

30. Question: “Pursuant to [paragraph] 8.2, please provide some clarification as to “employees assigned to the contract being subject to a background investigation and fingerprinting. Does this include all call center employees who deal with registration and third party test center employees who administer the test?”

Answer: General policy and background investigative requirements for contract employees, subcontractors, experts, and consultants who work on contracts that involve the design, operation, repair or maintenance of information systems can be found in Internal Revenue Manual (IRM) 10.23.2 "Contractor Investigations", assessable on IRS.gov.

Paragraph 8.2, Vendor(s) Background Investigation

31. Question: “Who will view and adjudicate the background check results of the Vendor employees FBI CHRC? Will the IRS provide the necessary ORI number to receive these results?”

Answer: IRS will view and adjudicate the background check results of the Vendor Employees. Please review to the RFP Section III, paragraph 17(2) for further information. No, the IRS will not provide the necessary Originating Agency Identification (ORI) number to receive these results.

Paragraph 8.2

32. Question: “The RFP states that the Section 508 Test Plan Template must be completed and returned with our proposal. It is clear that this is pertinent to the end users of testing provided by the ‘Testing/Fingerprinting Vendor’. However, as a prospective ‘Fingerprinting Vendor’ I am not clear as to the application of the Section 508 Test Plan Template with respect to the fingerprint capture and channeling activities. There will be minimal software/internet interaction with the Return Preparers. Please provide any clarification possible or advise as to whether this form is required for the ‘Fingerprinting Vendor’.”

Answer: The Section 508 Test Plan Template is required for all prospective fingerprint vendors. Vendors must test their proposed solution/application/service against all the specified applicable provisions and provide those results in the response using the template. Electronic items that must be tested include: website and its pages if test is web based; fingerprinting forms; and standalone fingerprinting machines.

Paragraph 8.3

33. Question: “Can the IRS please confirm that the development of a Performance Measurement Program relates only to the successful contractor upon contract award? In other words, bidders need not submit a Performance Measurement Program with their proposal submissions.”

Answer: The development of a Performance Measurement Program is also required with proposal submissions.

Paragraph 12.0, IR1052.239-9004 Instructions to Offerors – Software Development Prerequisite (Jan 2010).

34. Question: “Please clarify the CMMI requirements. We have examined the list of appraisal results on the SEI website, and found that no major testing vendor is listed as having a maturity rating of any level. Is it necessary for offerors to have a CMMI-DEV Level 2 maturity rating at the time of proposal submission? Will vendors who are in the process of CMMI appraisal and compliance still be considered?”

Answer: CMMI® Level 2 certification must be held by the prime contractor. The IRS requires that all solicitations involving software development, in whole or in part, must require prospective offerors to identify their CMMI® -DEV appraisal level. The CMMI® -SW or CMMI® -DEV Level 2 is a contract requirement and will be evaluated as either Pass or Fail. Offers that do not verify the offeror has a CMMI® -SW or CMMI® -DEV Level 2 or higher appraisal rating will be rejected as unacceptable and will receive no further consideration for award. The prime contractor and subcontractors shall comply with CMMI® -DEV level 2 or higher for duration of contact. Pre- award appraisal must occur within the 18 months immediately preceding the proposal due date. Post- award appraisal must have occurred within the 18 months immediately proceeding the due date of verification and validation for a given year. See Section III, Contract Clauses, paragraph 20.0 (7) & (8).

35. Question: “Can the IRS please confirm that these sections are the “Statement of Objectives” that bidders are required to respond to within the Technical Proposal? Are there any additional requirements that bidders must respond to?”

Answer: Yes, Section I, 1.0 to 1.16 and 2.0 to 2.9 are the technical provisions of the contract that the prospective vendors are required to respond to. In addition, please refer to the Matrix and the Tab descriptions for addition requirements that must be responded to in Section IV, Proposal Instructions 6.0 through 6.10.

RFP SECTION II – PRICING

Paragraph 1.2

36. Question: “The current standard FBI fee is $19.25 for an applicant print. Is the IRS user fee in addition to the FBI fee or will there be only one user fee that will cover both the FBI and IRS fee?”

Answer: Pursuant to Section II, 1.2, the vendor is to propose a fee for fingerprinting services that will be charged to the registered tax preparer. The government one time user fee is separate from the vendor’s fees. Please refer to Section I, Paragraph 2.1, Item 4 of the RFP which provides that vendors are responsible for all costs related to the account management of the fingerprinting process, including but not limited to FBI charges. Further, such expenses are at no cost to the Government. In addition, the paragraph continues with the statement that the vendor will not be reimbursed by the Federal Government for fees, costs, or any other charges or expenses.

Paragraph 1.2

37. Question: “Can the vendor submit tiered pricing with discounted pricing offered for larger volumes?”

Answer: Tiered pricing is neither solicited nor will it be deemed responsive to this RFP.

38. Question: “Is there a defined list of international countries and cit[i]es that will require fingerprint sites?”

Answer: No. The IRS has not defined a list of international countries and cities that will require fingerprint sites. It is the IRS' expectation that the selected fingerprint vendor will provide fingerprinting services. However industrialized countries as well as a number of growing and populous countries may contribute to the number of preparers that require fingerprinting.

RFP SECTION III – CONTRACT CLAUSES

Paragraph 20.0 b

39. Question “Section III – Paragraph 20.0 b – “Will vendors be considered if they do not have a CMMI-DEV Level 2 rating at time of proposal submission or must a CMMI-DEV Level 2 rating be achieved prior to contract award?”

Answer: CMMI® Level 2 certification must be held by the prime contractor. The IRS requires that all solicitations involving software development, in whole or in part, must require prospective offerors to identify their CMMI® -DEV appraisal level. The CMMI® -SW or CMMI® -DEV Level 2 is a contract requirement and will be evaluated as either Pass or Fail. Offers that do not verify the offeror has a CMMI® -SW or CMMI® -DEV Level 2 or higher appraisal rating will be rejected as unacceptable and will receive no further consideration for award. Pre award appraisal must occur within the 18 months immediately preceding the proposal due date. Post award appraisal must have occured within the 18 months immediately proceeding the due date of verification and validation for a given year. See Section III Contract Clauses paragraph 20.0 (7) & (8).

RFP SECTION IV – PROPOSAL INSTRUCTIONS

Paragraphs 6.2 & 6.3 Question: “These 2 sections each reference for the Offeror to include information detailing how they arrived at their costs/prices. Does the IRS want to see this information in both Tab 1 and Tab 2?”

Answer: Volume 1, Tab 1 of the business proposal shall include the narrative explanation of how the prices and price list to be included in Volume 1, Tab 2 were developed. Volume 1, Tab 2 of the business proposal is limited to the prices and/or price lists.

Paragraph 11.1.1.2, Test Administration

40. Question: “What steps will the IRS take to ensure a fair comparison among vendors in terms of geographic coverage of sites? For instance, should respondents specify whether an existing fingerprint site is permanent – open at least 4 or 5 days a week - or a part-time site only available 1 or 2 days a week - or if it is a mobile site which is visited only occasionally?”

Answer: To ensure a fair comparison among prospective vendors by the IRS, the offerors should remit as much information as possible when responding to the requirements of the contract. Evaluation can only be made based on the information submitted.

Paragraph 7.0

41. Question: “Can the IRS clarify whether or not bidders should respond to each of the items listed in this section? If so, under which tab should the responses be categorized under?”

Answer: Offerors should respond to (1) through (11) of Section IV, 7.0.

Paragraph 9.0

42. Question: “The offeror’s solution must be 100% compliant with Section 508 of the Rehabilitation Act in order to be eligible for award under this solicitation. Proposals will be evaluated on a pass/fail basis for Section 508 conformance. Section 508 Compliance will be evaluated based upon the offeror’s completed 508 Test Plan(s), a template of which is included as Attachment 4 to this RFP. The Government reserves the right to award to other than the most compliant Offeror if the Government determines acceptance of the most Section compliant services [are] too costly when compared to the other services offered; or if the technical proposal in its entirety is evaluated to be too risky.” Can this be interpreted that the IRS may award the contract to a vendor who is not 100% compliant with Section 508 of the Rehabilitation Act?

Answer: Yes.

Paragraph 5.0, General Proposal Instructions

43. Question: “On the CD copies of the proposal, would it be acceptable for offerors to provide all documents as PDF files, instead of MS Office files?”

Answer: The CD copy of the proposal shall be in MS Office Version 6 or higher. Please refer to the RFP 5.0 (1).

Paragraph 5.0

44. Question: “Can the IRS please provide guidelines for submitting confidential and proprietary information in proposals? Examples of confidential and proprietary information include staff resumes, business continuity procedures, test center policies, security procedures, etc.”

Answer: Any information that will substantiate the vendors ability to fulfill the requirements as outlined in the contract should be submitted. IRS will handle the information with high level security established guidelines for all vendor submissions.

Paragraph 5.0, Item 1

45. Question: “This topic discusses the submission of the response on a CD. For ease of viewing, can the Vendor provide the CD files in PDF format?”

Answer: The CD copy of the proposal shall be in MS Office Version 6 or higher. Please refer to the RFP 5.0 (1).

Paragraph 6.4

46. Question: "Past Performance Survey Questionnaire" - When is this due – on the form, it indicates that it is due December 27, but on page 49 of the RFP it indicates that the forms are due “by the proposal due date.”

Answer: Paragraph 6.4 will be amended to correspond with Attachment 5 revised submission due date of January 18, 2011.

Paragraph 5.0, item 1

47. Question: “This topic discusses the submission of the response. Can the IRS provide the overnight delivery address the response should be mailed to or if vendor personnel is to deliver it in person?”

Answer: The overnight delivery address is the same as the address provided in Block 16 of the SF 1449.

RFP SECTION V - ATTACHMENTS

Attachment 1, BACKGROUND INVESTIGATION REQUIREMENTS

48. Question: “The requirement as written requires Vendor employees to have fingerprints for background checking purposes collected on ink cards by law enforcement agencies. Would the IRS accept having a subset of the Vendor’s employees fingerprinted via law enforcement and following a successful background check these would then act as “trusted agents” for the collection of additional employees’ fingerprints via our electronic enrollment network? All employees would be subjected to the same background checking requirements.”

Answer: The IRS cannot accept fingerprints submitted directly by the vendor for vendor employee background checks. Procedures for fingerprinting IRS contractors are found in Internal Revenue Manual 10.23.2.7, Fingerprinting Contractor Employees. These procedures must be strictly followed for all IRS contracts due to service agreements with the Office of Personnel Management, Treasury regulations and limitations imposed by the Privacy Act of 1974 as amended. The requirements in IRM 10.23.2.7, which is available online at IRS.gov, are also clearly stated in Attachment 1 of the SOO.

Attachment I

49. Question: “Section ‘a’ states that “All employees of the vendor assigned to the contract are subject to a background investigation.”

Answer: Correct, all employees of the vendor assigned to the contract are subject to a background investigation in accordance with Internal Revenue Manual (IRM) 10.23.2 "Contractor Investigations".

Attachment I

50. Question: “Can the IRS please narrow the definition of “assigned to the contract”?

Answer: The definition of "assigned to the contract" cannot be narrowed. Contract employees may not access IRS data/systems or facilities until the contractor employee is found eligible and suitable for the designated risk level of the duties performed.

Attachment I

51. Question: “Would the IRS be amenable to standard pre-hire employee background checks performed by the vendor?”

Answer: Background investigations and eligibility/suitability determinations are inherently governmental functions as prescribed by Federal regulations. We cannot rely on the vendor's pre-hire checks.

Attachment 4

52. Question: “Is it the IRS’s expectation that bidders will submit the Section 508 Test Plan Template to the IRS as part of the proposal submission? Or, does it need to be filled out and submitted to another entity prior to contract award? Can the IRS please specify any additional instructions?”

Answer: IRS will be using the completed test plan template to help assess the conformance level of the vendor's offering. The product should be tested using the recommended test plan language and methodologies.

Attachment 5, Past Performance Survey Questionnaire

53. Question: “Does the IRS want or will accept a past performance survey questionnaire from a possible subcontractor on the project or of just the prime contractors?”

Answer: Past performance surveys should be submitted for Major subcontractor(s) (estimated portion of effort is 20% or more), as stated in Section IV Proposal Instructions, paragraph 6.4 (3).

54. Question: “Past Performance Questionnaire lists page numbers as 1-31 for the total number of pages. However, the page count ends at 5 of 31. Can you confirm that there are only 5 pages included in the Past Performance Questionnaire?”

Answer: Yes, there are only five (5) pages to Attachment 5. Amendment 0002 dated 12/22/2010, corrected the page numbering to the attachment.