Inactive

Background and Objectives A. Agency Information: 1. The U.S. Railroad Retirement Board (RRB) is an independent agency in the executive branch of the Federal government. The RRB’s primary function is t... Background and Objectives A. Agency Information: 1. The U.S. Railroad Retirement Board (RRB) is an independent agency in the executive branch of the Federal government. The RRB’s primary function is to administer comprehensive retirement, survivor, unemployment and sickness insurance benefit programs for railroad workers and their families under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. These programs provide income protection during old age in the event of disability, death, temporary unemployment, and sickness. The RRB has a long history of providing excellent customer service to its annuitants and is committed to paying the right benefits to the right people, in the right amounts, in a timely manner. The RRB also administers aspects of the Medicare program and has administrative responsibilities under the Social Security Act and Internal Revenue Code. 2. The RRB Office of Inspector General (OIG) conducts independent audits, management reviews and investigations of the programs and operations of the Railroad Retirement Board. The OIG provides recommendations for improvement to agency management to promote efficiency and economy, and identifies fraud and abuse in agency programs and operations. The RRB OIG is collocated with the RRB Headquarters Facility in Chicago IL. B. Objectives: The OIG of the RRB seeks to procure services to assist the OIG with its annual actuarial audit of the RRB's financial statements, as specified in Sections II and III below. C. Questions pertaining to this solicitation must be submitted in writing and received by this office in sufficient time to allow the timely transmission of written answers by solicitation amendment. To ensure this, the RRB will only answer questions received in this office no later than 1:00 PM, Central Time (CT), February 22nd, 2021. Questions shall be sent to proposals@rrb.gov and the email subject line must reference the RFP number of this solicitation. Offers are due no later than 1:00 PM (CT), March 12th, 2021, and shall be submitted to proposals@rrb.gov. D. Offerors must state in the e-mail subject line, for submission of proposals, "Proposal submission for RFP 60RRBH21R0004, Actuarial Audit Services”. SOW for Actuarial Audit Services This Statement of Work (SOW) provides the tasks the Contractor shall perform in accordance with this SOW. When mutually executed for implementation, this SOW becomes contractually binding on the Contractor and the RRB under the terms and conditions of the Contract from the Contract award date until the RRB receives the final deliverable. A. Introduction & Background Standards & Standards for Financial Statements 1. The RRB publishes financial statements in its annual Performance and Accountability Report, the form and content of which is mandated by the Office of Management and Budget (OMB). The agency prepares its financial statements from the books and records of the RRB in accordance with U.S. generally accepted accounting principles (GAAP). The American Institute of Certified Public Accountants (AICPA) has recognized the Statements of Federal Financial Accounting Standards (SFFAS) promulgated by the Federal Accounting Standards Advisory Board (FASAB) as GAAP for Federal government entities. The OIG issues its opinion on these financial statements. 2. During fiscal year 2020, the Railroad Retirement program paid over $13.2 billion in benefits and reported approximately $32.2 billion in assets at fiscal year-end. The RRB's financial statements for the fiscal year ending September 30, 2020 reported total financing sources in excess of $13 billion which it received primarily from payroll taxes and the financial interchange with the Social Security Administration. The bulk of the RRB's financing sources are expended on benefits for railroad workers and beneficiaries. 3. The agency’s fiscal year 2020 financial statements reported intragovernmental assets of approximately $7.3 billion that were comprised primarily of investments with the Treasury and receivables from the Social Security Administration for the financial interchange. The balance of the Railroad Retirement program’s assets, approximately $25 billion, were held on behalf of the RRB and invested by the National Railroad Retirement Investment Trust (NRRIT). The NRRIT prepares and publishes financial reports separate from the RRB. 4. Statement of Social Insurance The statement of social insurance is a comparative financial statement comprised of estimates of income and expenditures for a 75-year period for the railroad retirement program. The required notes to the statement of social insurance include significant underlying assumptions; fund balances as of the valuation date for each of the years presented, and identifies the elements of the closed group estimate. 5. Requirement for a Statement of Social Insurance a. SFFAS #17, as amended, requires Federal agencies that are responsible for social insurance programs to present a statement of social insurance as one of its audited financial statements. SFFAS #17 specifically identifies the Railroad Retirement program as a social insurance program subject to this reporting requirement. b. The information required by paragraphs 27(3) and 32(3) of SFFAS #17 and paragraphs 28 and 29 of SFFAS #37 are presented in a basic financial statement. The underlying significant assumptions are included in the notes that are presented as an integral part of the basic financial statement. Other information required by SFFAS #17, including the sensitivity analysis required in SFFAS #17, paragraphs 27(4) and 32(4), is presented as required supplementary information (RSI), except to the extent that the preparer elects to include some or all of that information in the notes that are an integral part of the basic financial statement. 6. Statement of Changes in Social Insurance Amounts (SCSIA) The SCSIA presents the Net Present Value of future revenue less future expenditures for current and future participants (the “open group”) over the next 75 years for the beginning and the end of the prior two reporting period years. The SCSIA is required to show the changes in social insurance amounts for a two-year period. 7. Requirement for a Statement of Changes in Social Insurance Amounts SFFAS #37 requires Federal agencies that are responsible for social insurance programs to prepare a statement of changes in social insurance amounts to present the reasons for changes during the reporting period in the open group measure reported on the statement of social insurance. 8. Preparation of the Statement of Social Insurance The RRB’s Bureau of the Actuary and Research prepares the agency’s statement of social insurance. The statement of social insurance is based on the periodic actuarial valuation of the assets and liabilities, also prepared by the agency’s Bureau of the Actuary. The Bureau of the Actuary publishes a new actuarial valuation every three years. This triennial valuation, which is updated during each of the two interim years, supports agency reporting responsibilities under the following statutes: a. Section 15 of the Railroad Retirement Act of 1974 requiring the Railroad Retirement Board, at intervals of not more than three years, to prepare actuarial valuations of the railroad retirement system, b. Section 22 of the Railroad Retirement Act of 1974 requiring the Railroad Retirement Board to prepare an annual report containing a five-year projection of revenues to and payments from the Railroad Retirement Account, and to submit the report to the President and the Congress by July 1; and c. Section 502 of the Railroad Retirement Solvency Act of 1983 requires the Railroad Retirement Board to prepare an annual report on the actuarial status of the Railroad Retirement program. 9. Actuarial Advisory Committee Section 15(f) of the Railroad Retirement Act requires that the triennial valuation process include review of assumptions and methods by the agency’s Actuarial Advisory Committee. The committee’s statement is published with the valuation and describes the scope of their work. B. Basis of Estimates The statement of social insurance is a comparative statement that presents data for the current and four prior years. The estimates and projections in the statement of social insurance are based on the triennial valuation of assets and liabilities of the Railroad Retirement program prepared by the RRB’s Bureau of the Actuary and Research. C. Scope of Work 1. The contractor shall provide all services, personnel, facilities, equipment, and materials necessary to perform the work described by this statement of work. 2. The contractor shall agree to let the OIG conduct an annual onsite quality review conducted in May/June of each year. The contractor shall also prepare and provide to OIG auditors an annual workplan and an annual required activity checklist. The contractor shall also provide documents based upon an agreed upon deliverable schedule as required by OIG auditors. The contractor shall provide both the initial and, upon exercise by RRB OIG, the optional services described in this RFP. 3. FY 2021 Actuarial Audit (Base Period Service) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2020 statement of social insurance and the statement of changes in social insurance amounts for the two year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2020 only. 4. FY 2022 Actuarial Audit (Optional Services - Optional Period 1) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2021 statement of social insurance and the statement of changes in social insurance amounts for the two year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2021 only. 5. FY 2023 Actuarial Audit (Optional Services - Optional Period 2) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2022 statement of social insurance and the statement of changes in social insurance amounts for the two year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2022 only. 6. FY 2024 Actuarial Audit (Optional Services - Optional Period 3) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2023 statement of social insurance and the statement of changes in social insurance amounts for the two year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2023 only. 7. FY 2025 Actuarial Audit (Optional Services - Optional Period 4) The contractor shall perform the limited scope actuarial audit of the reporting period for year 2024 statement of social insurance and the statement of changes in social insurance amounts for the two year period ending with the date of the statement of social insurance, as described in Section III.D. The scope of the contractor’s work shall include the estimates and disclosures for reporting period year 2024 only. D. Scope of the Actuarial Audit The contractor shall perform such work as is required to make the following determinations for each year’s actuarial audit as awarded. This includes an actuarial analysis that is done in a spreadsheet using cell data. In addition, every third year the contractor must reconcile cell data back to source data in the spreadsheet: this also includes analysis of status and current impact of the existing financial reporting material weakness that addresses social insurance concerns. 1. The methods and assumptions used in the valuation of the Railroad Retirement program, and by extension the statement of social insurance, are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial Standards Board. 2. The actuarial valuation considers all pertinent provisions of laws and regulations governing program operations, including any changes to laws or regulations affecting the actuarial calculations since the date of the latest statement of social insurance. 3. Data used in preparing the statement of social insurance is complete, and reliable. 4. The estimates presented in the statement of social insurance are reasonable and prepared in compliance with the requirements of SFFAS #17, as amended. 5. The fund balance, as of the valuation date, has been accurately computed in compliance with SFFAS #17, as amended. 6. The disclosure of significant assumptions is complete and meets the requirements of SFFAS #17, as amended. 7. Other footnotes meet the disclosure requirements of SFFAS #17, as amended. 8. The reconciling items on the statement of changes in social insurance amounts are reasonable and prepared in compliance with SFFAS #37, including any applicable laws and amendments. 9. The reporting of the statement of social insurance, statement of changes in social insurance amounts and other related communication are consistent with relevant Actuarial Standards of Practice adopted by the Actuarial Standards Board. E. Reporting Requirements 1. The contractor shall summarize their findings and determinations in a formal, written report that details the scope of their work and their overall conclusions, and shall be presented in two parts: a. The Contractor shall provide a draft written report for discussion with OIG personnel that addresses the requirements of Section III E1 no later than mid September., communicating the opinion of the firm and any other matters that are reportable pursuant to applicable reporting requirements. b.The Contractor shall provide a final written report pursuant to the requirements of Section III no later than the first week of October, communicating the opinion of the firm and any other matters that are reportable pursuant to applicable reporting requirements. c. The Contractor shall provide the above draft and final reports as a hard copy, in triplicate, and deliver to the RRB. The Contractor shall also provide an electronic, adobe pdf, version of the draft and final reports and deliver to the COR and Contract Administrator. 2. Data Rights: No data provided to, or developed by, the contractor shall be used for any purpose other than the contract. All items, including any and all supplemental information developed by the contractor during performance of this task become the sole property of the federal government. The contractor shall return all items furnished by the federal government in the performance of this solicitation at the end of the contract or upon the federal government's request. The contractor shall not mark any deliverable documents pages, attachments, or addenda with their company name or proprietary markings, with the exception of a cover page. 3. The contractor's report must respond individually to each determination required in Section III.D. of this RFP. 4. The contractor’s report must describe the scope and methodology used in making the determinations. 5. The contractor’s report must describe any limitations on the scope of their work caused by lack of documentation. 6. The contractor’s report must be prepared in compliance with applicable Actuarial Standards of Practice adopted by the Actuarial Standards Board. 7. Progress Reports - The contractor shall also provide monthly written progress reports to the COR, by the fifth working day of each month, beginning with the first full month. The reports shall include (at a minimum) the following: a. progress to-date compared with the audit plan and time schedule; b. any issues that could impact the progress or outcome of the Contractor’s work; and c. matters that have come to the Contractor’s attention that could impact the results of the determinations required in Section III D. F. Applicable Guidance The Contractor will be required to evaluate compliance with any revised or additional guidance, legislation, pronouncement or standard issued subsequent to this contract that impact the estimates presented in the statement of social insurance or the practice of the actuarial profession. G. Agency Involvement The Contracting Officers Representative (COR), RRB OIG, as well as the RRB Chief Actuary, his staff and the responsible staff of the various RRB operation units, directly subject to the scope of the actuarial audit, will be available during the audit to assist the Contractor by providing information and explanations. While RRB and OIG staff will work with the Contractor to pull documents, reproduce files and respond to Contractor inquiries on an intermittent basis, the Contractor cannot expect them to prepare schedules or otherwise provide full-time assistance. H. Government Furnished Data 1. The RRB will provide access to documentation (electronic & hardcopy) of information required to make the determinations required by Section III D. of this solicitation. 2. Supporting documentation (electronic and hard copy) for the various estimates in the statement of social insurance pertaining to fiscal year 2019 will be made available to the Contractor after contract award upon consultation with the Contracting Officer’s Representative (COR). 3. Supporting documentation (electronic and hard copy) for the various estimates in the statement of social insurance pertaining to reporting period year 2019 and later years will be available to the Contractor as they become available to the OIG. a. RRB completes the triennial valuations by June 30th of the year in which they are performed. b. RRB completes the interim year updates to the triennial valuation June 30th of the year in which they are performed. c. RRB completes the statement of social insurance by July 31st of each year. I. Entrance/Exit Conferences 1. The entrance and exit conferences and other significant meetings are to be held with the COR and responsible OIG and agency officials. The entrance conference provides an opportunity for the Contractor to discuss the audit approach and introduce key staff to OIG and agency officials. The entrance conference will not be an opportunity to change the terms, conditions, or price of the contract. 2. At the completion of their work, the Contractor shall hold an exit conference with the COR and responsible OIG & RRB officials. At this conference the Contractor communicates the findings and recommendations developed during the audit, and elicits initial views from OIG and agency officials. 3. During the course of their work, the Contractor shall be prepared to discuss with the COR and management in the RRB’s Bureau of the Actuary matters that come to the Contractor’s attention that could have an impact on the determinations within the scope of the actuarial audit. Furthermore, the Contractor shall notify the COR of any such meetings that do not include the COR. J. Confidentiality The actuarial valuation model and the factors, assumptions and software applications that support it are the property of the Government of the United States. The Contractor agrees to hold strictly confidential any information relating to the model and related factors, assumptions, and software applications to which it may have access to, or awareness of, during the audit. Section V - Proposal Submission Instructions RRB Supplement to FAR 52.212-1 Instructions to Offerors A. Offerors shall prepare and submit their proposals as specified in FAR 52.212-1 Instructions to Offerors- Commercial Items (incorporated by reference) and in these instructions in sections V.A and V.B below. An Offeror must be registered on the Federal Government's System for Award Management (“SAM”) website, www.sam.gov, at the time of RFP Response submission in order to be considered for award for these requested services. B. Business/Price Proposal and a Technical Proposal shall be submitted as separate documents/files (electronically) by the Offeror by 1:00 PM Central Time (CT) on March 12, 2021. Offerors shall submit proposals via email to proposals@rrb.gov. Offerors may submit questions regarding this RFP to proposals@rrb.gov by 1:00 PM (CT), February 22, 2021. 1 Proposal documents shall be in either MS Office 2010 format document format or Adobe PDF file format. All timelines must be submitted as adobe PDF documents and NOT as Microsoft Project (.mpp) files. 2. Contractor requirements for agency facilities, materials, data or direct assistance must be detailed in the Technical Approach and Workplan section of the technical proposal. 3. Stating that the offeror understands and will comply with the statement of work, or parts thereof, is considered inadequate. So are phrases such as "standard procedures will be employed" and "well-known techniques will be used". It is recognized that all the technical factors cannot be detailed in advance, but the technical proposal must be sufficient as to how the Offeror proposes to comply with the applicable statement of work, including a full explanation of the techniques and procedures offerors propose to follow. C. Business Proposal Submission 1. The Business Proposal Submission in response to this RFP shall consist of one copy and should include the following information: a. The offeror shall submit one (1) signed copy of Standard Form (SF) 1449, “Solicitation/Contract/Order for Commercial Items” (page 1 of the solicitation) with blocks 12., 17a., 17b., 30a., 30b., and 30c., completed. Offerors shall acknowledge all amendments to this solicitation issued by the RRB prior to the due date for offers. b. The offeror shall complete Section II. Schedule of Supplies and Services and Contractor Information for Order Administration Section II. A & B. Offerors shall Unit prices and total prices for all AA and AB sub-CLINs for the basic and each optional performance period as described in Section II. c. Copy of Contractor's completed System for Award Management (SAM) registration, including their completed Contractor’s Representations and Certifications, from website: www.sam.gov 2. Technical Proposal Submission a. The Offeror's proposal shall include, in the Offeror's own words, a statement of the scope and purpose of the solicited project services, and demonstrate their complete understanding of the solicited project's intent and requirements. b. The technical proposal shall also include a description of the services being offered in sufficient detail to evaluate compliance with the requirements and technical factors of the solicitation. The technical proposal shall clearly and fully demonstrate the offeror’s capabilities, knowledge, and experience regarding the technical requirements described in Section III. Information shall be presented in such a manner to substantiate proposal statements. All audits cited as experience shall have been performed and reported in compliance with applicable Actuarial Standards of Practice. 3. Technical Assumptions, conditions or exceptions: Any Technical Assumptions, Conditions, or Exceptions concerning this RFP must be identified by the offeror and provided to the RRB. If the offer contains Technical. Assumptions, Conditions, or Exceptions, the offeror must submit, under separate cover, all assumptions, conditions, or exceptions with any of the technical requirements of this RFP. The Government will not seek out and identify assumptions, conditions, or exceptions within the offeror’s proposal. 4. Technical Factors to be Evaluated - Complete and detailed technical information shall be provided of the following evaluated technical factors. Offerors shall address each of the below requirements and technical factors individually. a. Project Approach, Methodology and Management - 1) A detailed Technical Narrative Summary shall be presented describing how the offeror shall perform the task steps and activities to accomplish the work and objectives described in Section III., the services to be provided, and how the offeror's solution and approach will meet the RRB OIG’s requirements, objectives, and deliverables. a) The Offeror's proposal shall disclose their technical approach in as much detail as possible, and include, but need not be limited to, the following. 1. A statement indicating understanding of the subject matter and scope of the audit. 2. Adherence to requirements of the Statement of Work. 3. Methodology that directly addresses the audit objectives as described in the Statement of Work, including data availability. 4. Adherence to Actuarial Standards of Practice in performance of all work and preparation of all reports. 5. A timeline for the entire project, outlining contract performance form start to finish, including milestones, deliverables, and roles and responsibilities of both contractor and RRB/OIG staff. b) The proposal shall outline the recommended approaches to be followed in arriving at the best solutions for the statement of work's requirements as described in Section III of this RFP. To this end, the recommendation and technical approach should be specific, detailed, and complete enough to clearly and fully demonstrate that the Offeror thoroughly understands the intent of the statement of work, together with proposed solution approaches. c) Offeror shall specifically identify any task/work steps assigned to RRB staff (Technical and/or Business) as applicable. The offeror shall specify the levels of RRB and OIG staff involvement (see Section III ) by functionality which they require in order to accomplish the tasks required in this statement of work and as outlined in their proposal. Any required RRB or OIG resources and dependencies shall be completely detailed. The RRB or OIG resources and dependencies shall be listed by Job title, estimated number of hours needed, and the project risk associated with not having the RRB or OIG resources available. 2) Quality Control Plan - demonstrating the offeror's ability to ensure high quality services incident to performing the services. The plan shall also address procedures for deficiency detection and implementation of corrective measures, including escalation procedures. 3) Staffing Plan - Sufficient information must be submitted to allow for evaluation of the experience of the proposed staff. Offerors shall submit resumes for the proposed individuals to be assigned to this project. The proposed staff’s specific years of experience skills and levels of involvement for accomplishing the task steps and activities described in Section III. All relevant experience, certifications and/or degrees shall be clearly presented, including any 3rd party contractors or sub-contractors. 1. The Offeror must demonstrate the professional qualifications of proposed staff by describing the academic and professional accomplishments of the audit team. This includes graduate and undergraduate degrees, professional examinations, award of professional credentials, and membership in professional societies, all of which must pertain to the actuarial profession or the field of actuarial science. 2. A list of all key project personnel, their duties, along with contact information, and an organizational flow chart shall be furnished by the Contractor, for both primary, and if applicable, subcontractor personnel. 3. Resumes of the individuals to be assigned to this project shall be submitted for evaluation. The staff proposed in this section shall be consistent with the staffing plan and related organizational chart referenced above. 4. Qualifying experience is not restricted by type of plan sponsor or beneficiary group. Such experience includes, but is not limited to, multi-employer, single employer, Federal, state, public, corporate and union plans. All audits cited as experience shall have been performed and reported in compliance with applicable Actuarial Standards of Practice. 5. The Offeror must demonstrate, at a minimum, that the principal actuary consultant responsible for the engagement and senior actuary consultant with significant responsibilities have had experience in performing: a) at least one actuarial audit of a retirement plan with plan assets exceeding $15 billion during the past 5 years; or b) at least two actuarial audits of a retirement plan with plan assets exceeding $10 billion during the past 5 years; or c) at least three actuarial audits of a retirement plan with plan assets exceeding $1 billion during the past 5 years. 6. Offeror’s proposed staffing must, at a minimum, demonstrate that the principal actuary consultant who will be responsible for the engagement will be a fellow of the Society of Actuaries and an enrolled actuary and that the senior actuaries be members of the Society of Actuaries. The Principal actuary consultant must also possess the following professional experience: a) has performed at least one valuation of a multi-employer plan with $15 billion (or more) in assets during the past 5 years; or b) has performed at least two valuations of multi-employer plans with $5 billion (or more) in assets during the past 5 years; or c) has performed at least three valuations of multi-employer plans with $1 billion (or more) in assets during the past 5 years. b) Past Performance/Corporate Experience - 1. The Offeror must submit a detailed narrative describing the Offeror's experience, within the past three years, in performing actuarial audits of multi-employer plans with plan assets exceeding $1 billion. The offeror must provide sufficient information to allow evaluation of the experience of the firm. 2. The Offeror must, at a minimum, demonstrate experience in performing at least one actuarial audit of an entity, the size and type described above, within the past 3 years in accordance with Actuarial Standards of Practice. 3. The Offeror must at a minimum, present a general audit approach demonstrating that audit methodology meets the requirements set forth in Section II and that the required reporting deadlines can be met. 4. The Offeror should discuss one or more potential audit problems (either a technical, administrative and/or managerial nature) that could arise during the initial audit, and develop strategies for effectively dealing with these problems. 5. Specific past performance information shall be presented as stated below: a. The offeror shall submit, as part of its proposal, information on a minimum of three (3) previously performed contracts or ongoing contracts performed for Federal, State, or local Government and for commercial firms that are similar to the services required in this solicitation. The offeror shall describe the scale and extent of their experience to include a description of the solutions and explain how these projects relate to the technical services required in this solicitation in order to demonstrate specific previous experience doing the same type of work. The information may also include a description of any quality awards earned by the offeror. b. The Government will place greater value on experience that is directly related to the requirements of this solicitation. All directly related experience should be discussed. Proven, verifiable, experience that is most directly comparable to the requirements of this solicitation will be considered of greater value to the government. For each project described, the offeror shall: 1. Include the contract, task order and/or identification number. 2. Task dollar value. 3. Points of contact with phone numbers, emails and titles to allow verification of the information. 4. Ensure that the information presented for contact points is accurate and current. 7. Past Pe...