Inactive Total Small Business Set-Aside (FAR 19.5)

This is a combined synopsis/solicitation for services prepared in accordance with the format in FAR Subpart 12.6 and FAR 13, as supplemented with additional information included in this notice. This a... This is a combined synopsis/solicitation for services prepared in accordance with the format in FAR Subpart 12.6 and FAR 13, as supplemented with additional information included in this notice. This announcement constitutes the only solicitation; quotes are being requested and a written solicitation will not be issued. Instructions to offerors, evaluation criteria, and all applicable FAR Provisions and Clauses are attached. The solicitation number is 70Z035-20-Q-P4D01000 and is issued as a Request for Quotation (RFQ). The solicitation document and incorporated provisions and clauses are those in effect through Federal Acquisition Circular 2019-06. Department of Labor Wage Rates for services are included in this order and are applicable. Wage Determination NO: 2015-5686 Revision NO: 11 Date of Last Revision: December 23, 2019 The associated NAICS code is 541611 and the small business size standard is $16,500,000.00. This acquisition is set-aside 100% for SMALL BUSINESS. ***This is an extension of the previously deadline ob 03/27/2020 due to a lack of participation as a result of COVID-19 telework and other communication issues. The new deadline for this RFQ is 04/03/2020 by 2:30 PM. I will contact contractors by phone as well.*** _________________________________________________________________________________________________________________________________________________________________________________ STATEMENT OF WORK Base Ketchikan NAFY 2019 Non Appropriated Financials Audit I. INTRODUCTION The specifications contained herein are intended to describe the scope and nature of the work required of the Certified Public Accountant (hereinafter referred to as the “Contract Auditor”), who is engaged by the U. S. Coast Guard Base Ketchikan Morale, Well-Being, and Recreation (hereinafter referred to as the “MWR”) Program, to conduct: 1 An audit of the non-appropriated fund financial statements of the USCG Base Ketchikan and AIRSTA Sitka’s MWR all hand clubs (Crow’s Nest, Buoy Deck, Eagle Nest); and, 2. An examination of management’s assertions regarding the effectiveness of the internal control structure over financial reporting. II. BACKGROUND The MWR is a non-appropriated fund instrumentality of the United States Government. The MWR mission is to uplift the spirits of the Coast Guard family and be an essential element of the Coast Guard mission readiness and retention through customer-owned and driven MWR programs and services around the world. The MWR financial objective is to maintain a sound capital structure to ensure continued operation of the local MWR program. The unit Commanding Officer directly controls local MWR operations that may consist of Category A, B, or C MWR Activities. In general, category designations denote the amount of appropriated fund support authorized. For instance, Category A MWR Activities are authorized the maximum appropriated fund support as they have the least ability to generate revenues. Category C Activities have the maximum abilities to generate revenues and must be operated as a business entity. General administrative, financial, personnel, and operations instructions are contained in Commandant Instructions M1710.13D, M7010.5C, and M12271.B, supplemented with other MWR Headquarters’ Instructions and local command guidance. The Contract Auditor should note that Coast Guard policy is updated periodically. Before the engagement, the Contract Auditor should ensure that Coast Guard policy documents, as stated herein have not been amended. The unit’s MWR accounting records are maintained on-site using mostly off-the-shelf automated accounting software or Coast Guard prescribed forms, if performed in-house. The modules may consist of an Accounts Payable, Accounts Receivables, and a General Ledger. Payroll is prepared using the services of the firm, ADP. The accounting function may be performed by MWR employees or it may be contracted to a third party accounting firm. Quarterly financial statements and audit reports, where conducted, for the past three (3) years will be available. The MWR does not produce an annual report, but rather four quarterly reports; the MWR does not produce monthly financial statements for distribution to the Community Services Command (CSC), but may develop monthly reports for local management purposes. The cost of goods sold should be determined by the perpetual inventory method at cost. The MWR is not required to pay federal, state, or local income, sales, property, or use taxes, except payroll taxes and occupational taxes for food and beverage operations. A copy of the location’s quarterly financial reports is available on-site and should be requested as part of a site visit. The prospective Contract Auditor shall coordinate any request for an on-site visit with the unit point of contact who will normally be the unit MWR Officer or MWR Director. III. SPECIFICATIONS Audit Objectives. The audit objectives are financial, compliance, and performance related to include: 1. Expressing an opinion on the fairness of presentation of the Operating Summary (Balance Sheet and Income Statement) of the MWR activities at 31 January 2020 in conformance with generally-accepted accounting principles (GAAP), Government Auditing Standards (GAAS), and the MWR accounting standards. The MWRs use a comprehensive accounting basis that may differ slightly from GAAP. 2. Determining whether the MWR has established sufficient internal controls to safeguard the assets against loss from unauthorized use or disposition, including assessing the adequacy of the management control system to measure, report, and monitor the MWRs’ operations. 3. Review and recommendation of improvements in the internal controls identified in the above objective (Paragraph III.A. 2.above), including at a minimum, testing, and analyzing such areas as cash receipts, cash disbursements, payroll, inventory management, and fixed asset acquisition and control. 4. Reviewing the previous two (2) years’ of audit reports and determining if corrective action was warranted and whether it was taken. 5. Recommending to management ways to improve the effectiveness of the MWR’s organization and fiscal operations, and identify methods to increase the MWR’s program profitability. 6. PROVIDE A LIST TO MANAGEMENT REGARDING REQUIRED DOCUMENTATION NEEDED FOR THE AUDIT (NOT CONCLUSIVE) Scope of Work. The Contract Auditor shall provide all labor, equipment, supplies necessary to perform a complete audit of USCG Base Ketchikan’s Non-Appropriated financial records and statements at 31 January 2020, and the related income statement for the year then ending for each activity. Estimated total value is $44,000 based on previous records. A fixed price proposal is required. Auditing Standards. 1. The audit of the MWRs’ operations shall be conducted according to generally-accepted General Accounting Office (GAO) Standards; generally-accepted auditing by the Federal Managers Financial Officers Act of 1990; including the Federal Manager’s Financial Integrity Act, and Office of Management and Budget (OMB) (Circular A-123, Internal Control Program), with standards and procedures set forth in the Coast Guard Non-appropriated Fund Instrumentalities (NAFI) Manual, Commandant Instruction M7010.5C , Coast Guard Morale, Well-Being, and Recreation Manual, Commandant Instruction M1710.13D; and, other regulatory guidance, as applicable. 2. Should the Contract Auditor suspect fraud, waste, mismanagement, abuse, or any other illegal or unethical action by the MWR personnel or vendors, the Contract Auditor should bring this immediately to the attention of the Audit Director, who will in turn refer instances of suspected waste, fraud, or any other abuse to the appropriate command staff level. The Audit Director may be contacted at (510) 437-3792. Audit Report. 1. Draft Audit Report. a. The Contract Auditor shall prepare a preliminary draft of the audit report and submit the draft report to the Audit Director and the MWR Officer/Director. After the Audit Director has reviewed and approved the draft with changes as appropriate, the Contract Auditor will make all appropriate changes and send the revised draft report to the unit’s Commanding Officer. The Contract Auditor should schedule an exit briefing with the MWR Officer/Director and the Commanding Officer to discuss the audit report before it is finalized. b. The Contract Auditor may send by electronic means the preliminary draft report to the Audit Director: Jeffrey Stumpf, CWO4, USCG USCG Base Ketchikan PSD 1300 Stedman ST Ketchikan, AK 99901 (907) 228-0293 Email: Jeffrey.t.stumpf@uscg.mil c. The Contract Auditor shall make changes necessary to clarify the findings and statements made in the audit report draft, and cooperate with the Audit Director as necessary to resolve any audit findings and disputes. Final Audit Report. The Contract Auditor shall deliver one (1) electronic copy of the final audit report to, Contracting Officer Technical Representative at. The Contract Auditor will have completed all work required under this contract only on delivery of the final audit report, which must contain all applicable documentation and/or SAS 114 communication, acceptable by the Audit Director. The Contract Auditor may then submit an invoice for services provided. The management letter should be bound as a part of the audit report. Form and Content. a. Address the audit report to the Audit Director. b. The report should contain these parts: A report and opinion on the financial statements’ examination, consisting of a statement of the Contract Auditor’s scope, and an opinion on the financial statements according to GAAP and GAO Standards, including the Chief Financial Officer’s Act. A report and opinion on whether the MWR activity has established sufficient internal controls to safeguard its’ assets against loss from unauthorized use or disposition and findings, or recommendations to improve the internal control environment. Each finding will include a regulatory citation or criteria to identify the laws, regulations, directives, or standards against which the condition is measured. Each finding, labeled as such, will include whenever feasible, quantifiable terms of the effect of the condition and its impact, consequences, or significance on cost, performance, or lost sales. Each finding also should include those other elements required by GAO Standards, including the condition, cause, effect and criteria, and recommendations to correct the finding. Separate and number each finding by seriousness or materiality concerns to highlight and identify important areas and facilitate follow-up. Report on the status of the corrective recommendations for the previous two (2) years’ of audits and other inspections. NOTE: Management’s comments will be required through follow-up action initiated by CSC which requires MWR units to comply with recommendations in accordance with Coast Guard and GAO directives. A presentation of the balance sheet and income statements for the year ending 31 January 2020. The income statement presentation should include a summary of all revenue, expenses and a breakdown showing results for business activities. The balance sheet should also include aged schedules of all account receivables and payables. B. Time Limitations. Follow the timetable below as closely as possible. The Audit Director and the Contract Auditor may modify this timetable if such modifications would not jeopardize the successful completion of the audit, or that such changes would enhance the Contract Auditor’s product. Dates for Key Milestoness: Begin audit fieldwork; coordinate with the local MWR Officer/Director. All field work must be completed by 15 May 2020. 15 June 2020 Deliver preliminary draft report to Audit Director. 15 July 2020 Deliver final audit reports to the Base Ketchikan Audit Director. V. PROPOSAL A. A separate fixed price proposal, to include all costs, is required for this MWR location. In preparing a proposal for an audit, the Contract Auditor shall describe these: 1. Methodology to be used to perform the audit. 2. Qualifications to perform the audit: Firm’s qualifications, including previous government auditing experience that conforms to GAO Standards, and retail auditing experience. Proposed staff qualifications, including previous government auditing experience that conforms to GAO Standards and retail auditing experience. Procedures to notify the Audit Director of key personnel changes. Staffs’ accounting and auditing CPEs in the last two (2) years. Independence to perform the audit and statement that only Certified Public Accountant, or CPA candidates, will perform field audit work for the engagement. A statement that there exists no conflict of interest or related-party involvement, including family or relatives of Coast Guard current or former employees, or Coast Guard activity former employees to perform audit work. Additionally, no members of the audit team performing field work may be current Coast Guard personnel, civilian or military, active duty or reservist. Peer review results from the most recent peer review. Any disciplinary actions against the firm during the past five (5) years. The Contract Auditor shall immediately notify the Audit Director if suspended, disbarred, or declared ineligible by any Federal department or agency, or upon receiving a notice of proposed debarment from another Federal department or agency during the performance of this contract. B. The Contracting Officer will select the Contract Auditor based upon LOWEST PRICE conforming the specifications outlined within the statement of work. Submit proposal and signed Standard Form 1449 to: Base Ketchikan D. Direct questions about this Statement of Work to Mr. Jeffrey Stumpf, Technical Representative at (907) 228-0293. Coordinate on-site visits with MWR Officers/Directors. E. Submit proposals by 2:30 PM Alaskan Time on 03 April 2020. F. After the proposals have been received, they will be reviewed and the Contract Auditor awarded as seen fit by the Contracting Officer (KO).