Solicitation No. CB07-RFP0003 Full and Open Competition Financial Audit Services_part1 ppt

Solicitation No. CB07-RFP0003
Full and Open Competition







Financial Audit Services

Issued by:
Congressional Budget Office
Washington, D.C.
www.cbo.gov/procurement

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CB07-RFP0003 Financial Audit Services PAGE i
TABLE OF CONTENTS


PART I—THE SCHEDULE

SECTION A – SOLICITATION/CONTRACT FORM
Standard Form 33 1

SECTION B – SUPPLIES OR SERVICES AND PRICES/COSTS
B.1 General Description 2
B.2 Price Schedule 2
B.3 Payment Schedule 2

SECTION C – DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK

C.1 Background of Congressional Budget Office 3
A. Prior Audits 3
C.2 Objectives and Scope 3
C.3 Deliverables 4
C.4 Delivery Schedule 5
C.5 Audit Site 5
C.6 Audit Considerations 6
C.7 Listing of Acronyms 6

SECTION D – PACKAGING AND MARKING
D.1 Identification of Contract Deliverables 8

SECTION E – INSPECTION AND ACCEPTANCE
CBO 07 Inspection and Acceptance 9

SECTION F – DELIVERIES OR PERFORMANCE
F.1 Period of Performance – Base Contract and Options 10

SECTION G – CONTRACT ADMINISTRATION DATA
G.1 Contracting Officer’s Authority 11
G.2 Contracting Officer’s Technical Representative (COTR) 11

SECTION H – SPECIAL CONTRACT REQUIREMENTS
H.1 Special Inspection Procedures 12
CBO 25 Security for Confidential Information (Alternate 1) 12
H.3 Incorporation of Contractor’s Proposal 12
H.4 Key Personnel Changes 12

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PART II—CONTRACT CLAUSES

SECTION I – CONTRACT CLAUSES
CBO 01 Terms and Conditions Limited 13
CBO 03 Payment 13
CBO 05 Invoice 13
CBO 06 Method of Payment 14
CBO 08 Assignment 15
CBO 09 Changes 15
CBO 10 Risk of Loss / Title 16
CBO 11 Warranties 16
CBO 12 Endorsements/News Releases/Advertising 17
CBO 13 Obligations Contingent on Future Appropriation 17
CBO 14 Excusable Delays 17
CBO 15 Waiver of Default 17
CBO 16 Termination for Convenience 17
CBO 17 Termination for Default 17
CBO 18 Disputes 18
CBO 19 Compliance With Laws 18
CBO 20 Affirmative Action for Workers With Disabilities 18
CBO 21 Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and
Other Eligible Veterans 20
CBO 22 Employment Reports on Special Disabled Veterans, Veterans of the Vietnam Era, and
Other Eligible Veterans 23
I.20 Option to Extend the Term of the Contract 24
I.21 Legislative Branch Agencies 25

PART III—LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

SECTION J – LIST OF ATTACHMENTS
Attach. 1 Timeline
Attach. 2 CBO Non-Disclosure Agreement
Attach. 3 CBO Past Performance Questionnaire

PART IV—REPRESENTATIONS AND INSTRUCTIONS
(This Part will be removed from the contract document)

SECTION K – REPRESENTATIONS, CERTIFICATIONS, AND OTHER STATEMENTS OF
OFFERORS
K.1 Authorized Negotiators 27
K.2 Offeror Representations and Certifications 27
K.3 Taxpayer Identification 29
K.4 Data Universal Numbering System (DUNS) Number 30

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SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS
L.1 Instructions to Offerors – Competitive Acquisition 32
CBO 28 Electronic Mail and Facsimile Proposals 36
L.3 Type of Contract 37
L.4 Proposal Composition – Source Selection Procedures 37
L.5 Instructions for Preparing the Technical Proposal 37
L.6 Instructions for Preparing the Price Proposal – Source Selection Procedures 40

SECTION M – EVALUATION FACTORS FOR AWARD
M.1 Proposal Evaluation Criteria – Source Selection Procedures 41
M.2 Evaluation Adjectival Ratings 42
M.3 Evaluation of Options 43

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SOLICITATION, OFFER, AND AWARD
1. THIS CONTRACT IS A RATED ORDER UNDER DPAS
(15 CFR 700)
RATING
2. CONTRACT NUMBER
3. SOLICITATION NUMBER
CB07-RFP0003
SEALED BID (IFB)
X
NEGOTIATED (RFP)
4. TYPE OF SOLICITATION 5. DATE ISSUED
08/10/2007
6. REQUISITION/PURCHASE NUMBER
R1 CB2007-0156
CODE
PSCBO
Procurement Services
Congressional Budget Office
2nd and D Streets, SW
FHOB Room 406
Washington, DC 20515-0001
7. ISSUED BY
Procurement Services
Congressional Budget Office

Fax: 888-734-1760

8. ADDRESS OFFER TO (If other than Item 7)
NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".
SOLICITATION
N/A 17:00:00 08/31/2007
(Hour) (Date)
CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions
9. Sealed offers in original and _____0_______ copies for furnishing the supplies or services in the Schedule will be received at the place specified in item 8, or if
handcarried, in the depository located in ______________________________________________________ until ________________ local time _________________
10. FOR
INFORMATION
CALL:
A. NAME
Caryn Rotheim
AREA CODE
202
NUMBER
226-2632
EXT.
B. TELEPHONE (NO COLLECT CALLS)
C. E-MAIL ADDRESS

11. TABLE OF CONTENTS
(X) SEC. DESCRIPTION PAGE(S) (X) SEC. DESCRIPTION PAGE(S)
PART I - SCHEDULE PART II - CONTRACT CLAUSES
X A
SOLICITATION/CONTRACT FORM
1 X I
CONTRACT CLAUSES
13-25
X B

SUPPLIES OR SERVICES AND PRICES/COSTS
2 PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH
X C
DESCRIPTION/SPECS./WORK STATEMENT
3-7 X J
LIST OF ATTACHMENTS
26
X D
PACKAGING AND MARKING
8 PART IV - REPRESENTATIONS AND INSTRUCTIONS
X E
INSPECTION AND ACCEPTANCE
9
X K REPRESENTATIONS CERTIFICATIONS AND OTHER
STATEMENTS OF OFFERORS
27-31
X F
DELIVERIES OR PERFORMANCE
10
X L
INSTRS., CONDS., AND NOTICES TO OFFERORS
32-40X G
CONTRACT ADMINISTRATION DATA
11
X M
EVALUATION FACTORS FOR AWARD
41-43
X H
SPECIAL CONTRACT REQUIREMENTS
12

OFFER (Must be fully completed by offeror)
NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.
In compliance with the above, the undersigned agrees, if this offer is accepted within _______________________ calendar days (60 calendar days unless a different
period is inserted by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite
each item, delivered at the designated point(s), within the time specified in the schedule.
12.
13. DISCOUNT FOR PROMPT PAYMENT (See Section 1,
Clause No. 52.232-8)
10 CALENDER DAYS(%)
0.00
20 CALENDER DAYS(%)
0.00
30 CALENDER DAYS(%)
0.00
CALENDAR DAYS
NUMBER
0
PERCENTAGE
0.00
14. ACKNOWLEDGEMENT OF AMEND- MENTS (The offeror
acknowledges receipt of amendments to the SOLICITATION for offerors
and related documents numbered and dated):
AMENDMENT NO. DATE AMENDMENT NO. DATE
15A. NAME AND
ADDRESS OF
OFFEROR
CODE FACILITY
16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN
OFFER (Type or Print)
15B. TELEPHONE NUMBER

AREA CODE NUMBER EXT.
15C. CHECK IF REMITTANCE ADDRESS IS
DIFFERENT FROM ABOVE - ENTER SUCH
ADDRESS IN SCHEDULE.
17. SIGNATURE 18. OFFER DATE
AWARD (To be completed by Government)
19. ACCEPTED AS TO ITEMS NUMBERED 20. AMOUNT 21. ACCOUNTING AND APPROPRIATION
10 U.S.C. 2304(c) ( ) 41 U.S.C. 253(c) ( )
22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:
23. SUBMIT INVOICES TO ADDRESS SHOWN IN (4 copies
unless otherwise specified)
ITEM
CODE
24. ADMINISTERED BY (if other than Item 7)
CODE
Congressional Budget Office
Office of Financial Management
OR Fax: 866-754-3302
Washington, DC 20515
25. PAYMENT WILL BE MADE BY
26. NAME OF CONTRACTING OFFICER (Type or print)
Stacy F. Newman (202/226-9850)
(Signature of Contracting Officer)
27. UNITED STATES OF AMERICA
28. DATE
IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.
AUTHORIZED FOR LOCAL REPRODUCTION
Previous edition is unusable
STANDARD FORM 33 (REV. 9-97)
Prescribed by GSA - FAR (48 CFR) 53.214(c)

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SECTION B
SUPPLIES OR SERVICES AND PRICES/COSTS


B.1 GENERAL DESCRIPTION
The Congressional Budget Office (CBO) has a requirement for a contractor to perform an annual
audit of the agency’s financial statements.

The Contractor shall deliver: (1) A combined report covering their opinion on CBO’s financial
statements, internal control over financial reporting, positive assurance that all Financial
Management Systems comply with FISCAM, and the results of compliance tests; (2) A
management letter, if appropriate; and (3) Complete and accurate work papers to document all
work performed and support the conclusions reached.

B.2 PRICE SCHEDULE
This is a firm fixed-price type contract. Offerors shall list the lump sum price for each line item
in the Price Schedule below.

(Failure to submit an offer on all items will be cause for your offer to be determined
unacceptable.)
Item
No.
Description Quantity & Unit Total Price
0001
Base Period:
Perform financial audit for Fiscal Year 2007
1 Lump Sum $

0002
Option Period 1:
Perform financial audit for Fiscal Year 2008
1 Lump Sum $
0003
Option Period 2:
Perform financial audit for Fiscal Year 2009
1 Lump Sum $
0004
Option Period 3:
Perform financial audit for Fiscal Year 2010
1 Lump Sum $
0005
Option Period 4:
Perform financial audit for Fiscal Year 2011
1 Lump Sum $

Total for Schedule:
$

B.3 PAYMENT SCHEDULE
Payment will be made upon inspection and acceptance of deliverables in accordance with the
following payment schedule, which applies to the base and option periods of this contract:

Item
Payment %
1 End of Audit Work 40%
2 Signed Opinion Report 60%

END OF SECTION B
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SECTION C
DESCRIPTION/SPECIFICATIONS/STATEMENT OF WORK


Financial Audit of Congressional Budget Office

C.1 BACKGROUND OF CONGRESSIONAL BUDGET OFFICE
The Congressional Budget Office (CBO) is a legislative branch agency of the federal
government. It was established in 1974, and began operations in February of 1975 to provide the
Congress with objective, timely, nonpartisan analyses needed for economic and budget decisions
and with information and estimates required for the Congressional budget process. That
information includes forecasts of the economy, analyses of economic trends and alternatives,
fiscal policies, long-term projections of federal spending and revenue, and, upon request, studies
on budget-related issues. In addition, CBO provides Congress with multi-year cost estimates for
reported bills, as well as analyses of the costs of state, local, tribal, or private sector mandates.

As of September 30, 2006, CBO’s balance sheet showed total assets of $6.643 million; for the
year ended September 30, 2006, CBO’s net operating expenses were $37.431 million.
Approximately ninety percent of CBO’s operating appropriations were for salaries and benefits.
CBO’s source of revenue for funding operating expenses is an annual congressional
appropriation.

A. Prior Audits
Kearney & Company conducted full financial statement audits for the fiscal years ended
September 30, 2004 through 2006. For each year Kearney & Company issued a combined report
which included: 1) an unqualified opinion on the agency’s principal statements; 2) an unqualified

opinion on the internal control structure over financial reporting; and 3) a statement finding no
compliance violations.

The audits of the agency were performed in accordance with generally accepted
accounting principles (GAAP) and the Office of Management and Budget (OMB) Circular
No. A-136. For transition purposes, the new auditor may have access to FY 2006 audit
documentation as necessary after award. In the last performance period of the contract, the
outgoing auditor should be available to transition to the new incoming audit firm as necessary.

C.2 OBJECTIVES AND SCOPE
CBO has a requirement for a contractor to perform annual audits of the agency’s financial
statements for the years ending September 30, 2007 through 2011. The financial statements will
be prepared from the Library of Congress’ (LOC) financial management system in accordance
with GAAP. CBO uses the LOC’s financial management system as part of a cross-servicing
agreement authorized under the Economy Act. The Contractor shall coordinate as necessary
with the LOC and their auditor for any information specific to the financial system.

The financial statements for FY 2007 through FY 20011 will be prepared based upon the
hierarchy contained within the American Institute of Certified Public Accountants’ Statement on
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Auditing Standards No. 91, Federal GAAP Hierarchy. The statements will also be prepared
based on guidance on the form and content of financial statements published in the OMB
Circular No. A-136, Financial Reporting Requirements. CBO is not required to adopt this
circular, but has elected to use the disclosures management deems necessary for the fair
presentation of financial statement information.

The accounting structure of CBO is designed to reflect both accrual and budgetary accounting.
Under the accrual method, revenues are recognized when earned and expenses are recognized

when a liability is incurred, without regard to receipt or payment of cash. The budgetary
accounting, on the other hand, is designed to recognize the obligation of funds according to legal
requirements, which may be prior to the occurrence of an accrual-based transaction. The
budgetary accounting facilitates compliance with legal constraints on and controls over the use
of federal funds.

The preparation of financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could
differ from these estimates.

CBO has adopted federal standards for financial reporting and internal controls in a manner
consistent with a legislative agency. CBO maintains its fund balances with the Department of
Treasury and submits information required to incorporate its financial and budget data into the
overall federal government structure. While CBO is not subject to fulfilling the internal control
objectives of 31 U.S.C. §3512, formerly the Federal Managers’ Financial Integrity Act of 1982
(FMFIA), and the OMB Circular No. A-123, CBO has elected to follow the spirit of these
requirements. CBO’s management provides a separate assurance over the effectiveness of
internal control over financial reporting. CBO is not subject to the Federal Financial
Management Improvement Act of 1996, the Federal Managers’ Financial Integrity Act, and the
Government Performance and Results Act. However, CBO uses these statutes as guidance and
reference in its operations.

Financial information systems are important in CBO’s audit. The Contractor shall use the
Federal Information System Controls Audit Manual (FISCAM) as amended for auditing the
effectiveness of security controls for financial information. The financial information systems
are: Momentum; Financial Reporting System (FRS); National Finance Center’s (NFC) EPIC and
Mainframe; NFC’s STAR Time and Attendance; Human Resources Office; OFM Payroll
Projector; and FAS Gov (Property, Plant & Equipment).

C.3 DELIVERABLES
Deliverables consist of three documents:

1. A combined report covering the following elements (separate reports are not
acceptable):
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a. Your opinion on CBO’s financial statements (including your findings on the
consistency of supplementary information, Management’s Discussion and
Analysis (MD&A) and other accompanying information in the Performance
and Accountability Report);
b. Your opinion on the internal control over financial reporting;
c. Your opinion containing positive assurance that all Financial Management
Systems comply with FISCAM; and
d. The results of your tests of compliance with laws and regulations.

2. A management letter, if appropriate.

3. Complete and accurate work papers must be developed to document all work performed
and support conclusions reached. The Contractor shall provide full and complete access
to the working papers, electronic files, notes, and documentation to CBO management
and/or the COTR(s) at their request. The Contractor shall retain the original working
papers, electronic files, notes and other documentation that were created in performing
this audit for its files.

C.4 DELIVERY SCHEDULE
A specific timeline for the base contract period is included at Attachment 1 of this contract. The
Attachment will be updated by a modification to the contract to reflect actual dates for each

option period as the options are exercised. The work shall follow the general schedule below for
each period of the contract (base and each option). CBO may modify the schedule in the option
periods to adjust some of the dates, but the amount of time allowed for each phase is not
anticipated to change.

1. The Kick-Off meeting will occur by September 30.
2. CBO will provide a Final Trial Balance by November 30.
3. FISCAM and property walkthrough can begin at the end of September or early October.
4. CBO will deliver the complete Financial Statements with notes for the FY by January 31.
5. The Planning Phase shall be completed by mid-February.
6. Compliance Testing shall be completed by March 31.
7. Substantive Testing shall be completed in April.
8. Opinion and Management Letter shall be completed in May.

C.5 AUDIT SITE
Work is to be performed at CBO, located at:

Congressional Budget Office
Office of Financial Management
Ford House Office Building, 4
th
Floor
2
nd
and D Street, SW
Washington, DC 20515

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Work space and access to the financial system will be provided by CBO. Documentation is
attached to most transactions in the financial system. If documentation is not attached, CBO
staff will provide hard copy documentation. We do not anticipate any out-of-town travel for this
contract.

C.6 AUDIT CONSIDERATIONS

Accounting System
CBO is cross-serviced by the Library of Congress (LOC). LOC uses Momentum from CGI
Federal as its central accounting system. Momentum has modules for purchasing, accounts
payable and disbursements, travel, accounts receivable and collections, budget execution, cost
allocations and external reporting which are integrated with the general ledger module. The
CBO general ledger has a partition base with Momentum. CBO uses the Department of
Agriculture’s National Finance Center (NFC) in New Orleans for payroll processing and payroll
accounting data is posted to the CBO general ledger with the same interface that is used by LOC.
Financial Statements are prepared directly from Momentum. The Momentum Financial
Statements are then formatted into Microsoft Word and the notes are added.

Transaction Cycles
Revenues/Receipts – CBO’s funding is through an annual appropriation that includes some funds
that are available for longer than one year. CBO does not have any gift funds.

Payroll – Payroll data is electronically transmitted to NFC on a biweekly basis. NFC transmits
payroll accounting data back to Momentum on a weekly basis. Reconciliations are performed on
both a pay period and a monthly basis.

Property and Equipment – CBO uses FAS Gov from Sage Software along with electronic
spreadsheets to account for property and equipment.

Treasury – LOC has its own disbursing office, which prepares an SF-1219 (Statement of

Accountability) and SF-1220 (Statement of Transactions). Momentum prepares the Statement of
Transactions; the SF-224 is transmitted monthly by LOC. FACTS I and FACTS II are prepared
by LOC and reviewed by CBO on a quarterly basis (except for the 1
st
quarter of the fiscal year).

C.7 LISTING OF ACRONYMS

CBO Congressional Budget Office
COTR Contracting Officer’s Technical Representative
FACTS Federal Agencies’ Centralized Trial-Balance System
FAS Gov Fixed Asset Solutions for government
FFMIA Federal Financial Management Improvement Act of 1996
FISCAM
Federal Information Controls Audit Manual
FMFIA Federal Managers’ Financial Integrity Act of 1982
FRS Financial Reporting System
FY Fiscal Year
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GAAP Generally accepted accounting principles
GPRA Government Performance and Results Act
LOC Library of Congress
MD&A Management’s Discussion and Analysis
NFC National Finance Center
NFR Notification of Findings and Recommendations
OMB Office of Management and Budget
OFM Office of Financial Management
PBC Provided by Client

SF Standard Form
U.S.C. United States Code

Unless otherwise stated, all references in Section C to “year(s)” refer to fiscal years.


END OF SECTION C

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