SOLICITATION NOTICE
R -- Financial Services 401k Plan
- Notice Date
- 3/26/2009
- Notice Type
- Combined Synopsis/Solicitation
- NAICS
- 541219
— Other Accounting Services
- Contracting Office
- Department of State, Bureau of International Narcotics and Law Enforcement Affairs, INL RM MS, 2430 E Street, N.W., South Building, SA-4 Navy Hill, Washington, District of Columbia, 20520
- ZIP Code
- 20520
- Solicitation Number
- INL-09-FinancialServices
- Archive Date
- 5/8/2009
- Point of Contact
- Mary Pat Hayes-Crow, Phone: 2027768373
- E-Mail Address
-
hayes-crowmp2@state.gov
- Small Business Set-Aside
- N/A
- Description
- This is a combined synopsis/solicitation for commercial items prepared per the format in Subpart 12, as supplemented with additional information included this notice. This announcement constitutes the only solicitation; proposals are being requested and a written solicitation will not be issued. Solicitation number INL- 09-Financial Services is a Request for Proposal (RFP). The Government intends to award a firm, fixed price contract for financial services as described below. The award will be for a base year with four option years. The following Provisions and Clauses are incorporated into this RFQ by reference. No addenda apply to these Provisions and Clauses. FAR 52.212-1, Instructions to Offerors – Commercial Items, FAR 52.212-3, Offeror Representation and Certifications – Commercial Items, FAR 52.212-4 Contract Terms and Conditions – Commercial Items, FAR 52-212-5, Contract Terms and conditions required to Implement Statutes or Executive Orders-Commercial Items. No additional FAR clauses apply. Proposals are due by 4pm ET April 23, 2009. Proposals shall be sent via email only to Mary Pat Hayes-Crow, Contracting Officer at hayes-crowmp2@state.gov. Questions regarding this RFP must be received NLT 4pm ET April 9, 2009 via email to hayes-crowmp2@state.gov. Scope of Work Tax-Deferred Defined Contribution Plan Services For U.S. Personnel Services Contractors-(USPSCs), United States Department of State A. INTRODUCTION/SUMMARY US Department of State (DOS), Bureau of International Narcotic and Law Enforcement (INL), Overseas Building Operation, and Diplomatic Security require record keeping/administrative and investment management services for its start-up tax deferred defined contribution plan, equivalent in design and function to an Internal Revenue Code (IRC) 401 (k) plan. DOS intends for contributions to the Plan to begin no later than June 15, 2009. The record keeping/administrative contractor must provide daily valuation. The investment management services contractor must provide a minimum of at least 5 diversified investment options and at least 3 of these must represent materially different risk characteristics. Department of State (DOS) has a centralized payroll processing for paying personal services contractors (USPSC's). Payroll is processed at the Global Financial Service Center, located in Charleston South Carolina. DOS uses a proprietary payroll software application for payroll operations. USPSC's submit their time and attendance (T&A) sheets on a bi-weekly schedule to their designated time keepers who submits them to the financial service center payroll office. Upon receipt of the T&A, the payroll office calculates gross pay, all deductions, and net pay amounts. The payroll systems is expected to be able to accommodate typical 401{k) plan processing requirements (accomplishing withholdings, reporting to employees bi-weekly on taxable and non-taxable wage amounts, and producing appropriate W-2s. B. PLAN DATA Using the following data, please calculate Plan charges for each of the investment options and internal fund expenses based upon the May 31, 2009 information on eligible participants and bi-weekly cash flow. Est1mated Participants 1/: Eligible Participating: 624650 Not Eligible: 0 0 Total: 624 1/ Due to fluctuations in staffing, the number of eligible USPSC's may range from 600 to 650, including local USPSC's who are US Citizens. As of March 26, 2009, there are 632 USPSC's world-wide. Estimated Bi-Weekly Gross Salary Cash Flow: (Please not that this is based on a calculation of total projected participant population times the maximum contribution limit $ 20,000). At 624At 650 Contributions$ 480, 000$ 500, 000 Distributions/2 0 0 Net Cash Flows$ 480,000$ 500,000 2/ Due to the age of this Plan, we do not anticipate any distributions in the first year of operation of the Plan. OBJECTIVE DOS requests proposals from contractors interested in providing investment fund management, enrollment, and recordkeeping/administration services for the operation of a tax-deferred defined contribution plan (meeting the requirements of a 401(k) plan) which will benefit personal services contractors (PSC's) working for the DOS. DOS does not contribute any matching funds to participant investments and does not reimburse any investment management, trustee, administration/record keeping, and compliance charges for the Plan. There are about 600 -650 personal service contractors who are eligible to participate in the Plan. The Internal Revenue Service (IRS) has issued a private letter ruling allowing this Plan. The IRS must provide final approval for the selected plan. Because USPSCs cannot participate in programs administered by OPM they are not eligible for Federal retirement or the Thrift Savings Plan. However, under current Internal Revenue Service (IRS) regulations, they are considered employees of DOS. (Note: As an employee for purposes of Section 636(a)(3) of the Foreign Assistance Act of 1961, as amended (22 USC 2396(a)(3), the Contractor is generally an employee of the United States for purposes of laws other than those administered by the Office of Personnel Management (i.e., Title 5, United States Code). This includes being an employee of the United States for purposes of Title 26, United States Code, which subjects the Contractor to withholding for both FICA and Federal Income Tax, and precludes the Contractor from receiving the foreign earned income tax exclusions of 26 USC Section 911.) Thus, PSCs are not eligible to participate in other tax-deferred retirement plans (TSP, 401{k), SSP/IRA's) with the exception of Individual Retirement Accounts. Supporting this, the Federal Retirement Thrift Investment Board (General Counsel), stated that without legislation that specifically addresses the Thrift Savings Plan (TSP), USPSCs can not be made eligible to participate in the TSP. Within the last few months, however, the IRS (Manager Employee Plans) has issued a letter ruling in response to DOS's request, "that the IRS rules that DOS may establish a 401(k) plan on behalf of USPSCs. The ruling that was issued states that DOS can, in fact, establish a 401(k) plan for USPSCs, who are "employees" under the relevant IRS definition. E. SCOPE OF WORK Record keeping/administrative, compliance, and investment management/trustee services for the DOS USPSC tax deferred 401(k) retirement plan. REQUIREMENTS The Plan must meet all Internal Revenue Code requirements unless otherwise stated. Record keeping/Administrative Services - The contractor shall be capable of performing record keeping/administrative services, which at a minimum include the following: 1. A Start-Up, Education/Marketing and Enrollment process which includes:. Preparing a tax-deferred defined contribution plan document meeting 401(k) requirements in design, recordkeeping, administration, compliance or other provisions which could be enhanced or problematic and providing a written recommendation for change.. Preparing a customized Summary Plan Description (SPD); producing the SPD in quantity, and mailing to DOS USPSC's mailing addresses of record, after approval by DOS.. Designing and mailing (including electronic such as web enabled and electronic mail address and printed formats) informational and educational materials about the available 401(k) plan and the enrollment process to DOS USPSC mailing addresses of record. Materials will provide fund performance information to encourage plan participation by focusing on the benefits of tax-deferred savings and help participants determine their investment strategy.. Providing training on the administrative responsibilities required by the Plan to selected DOS personnel. ---¬ -----¬. Providing five copies of administrative procedures manuals (electronic and printed formats) and ongoing administrative procedure manual updates/replacements (at least semi-annually), subject to DOS approval.. Providing enrollment materials (via web enabled application, electronic mail, or printed formats) for all DOS USPSC personnel eligible to participate in the Plan and mailing these materials to their addresses of record. This includes beneficiary designation forms with instructions.. Providing DOS INL office with stock copies of informational and educational materials about the available funds, including beneficiary designation forms with instruction. 2. An Administration process which includes, but is not limited to:. Designating a DOS account representative to serve as point of contact for DOS program issues, to resolve customer service issues, and to notify DOS's Contracting Officer's Technical Representative of changes in rules and regulations governing qualified plans. The account representative shall meet, at minimum, on a semi¬annual basis with the DOS representative and also provide monthly progress reports on the Plan. Providing participants with account access to the investment fund administration system by on-line access via internet AND US toll free number, with the ability to select the option to speak to a customer service representative; • Providing daily valuations;. Maintaining participant account balances and census data; • Processing capabilities for multiple loans for each plan participant; • Processing hardship withdrawals; ¬. Processing additions, corrections, and reinstatements;. Processing rollovers to and from the plan;. Handling a minimum of 5 investment options;. Maintaining plan participant beneficiary designations;. Accepting payroll and census information in tape, disc, electronic transmission, or hardcopy or other transmission method on a biweekly basis in accordance with DOS payroll administrator's pay schedule;. Selecting a default fund in the event contribution splits are received without an investment election on file;. Providing the cumulative contributions per plan participant per investment option in tape format, quarterly; and. Keeping and maintaining records and files concerning such administration, as is prudent, including plan participants' home addresses for mailing of account related information. Also, providing an electronic capability (web-enabled application or electronic mail) for providing this information. NOTE: ALL Systems information sent to DOS must be compatible with a Microsoft operating environment. • Supporting two annual enrollment open seasons per year, including providing informational, educational, and enrollment materials and mailing materials to participants' residences.. Administering court-ordered distributions as specified under the special rules and procedures involving federal benefits and in accordance with applicable federal law. (Note: Federal regulations define spousal court orders as a "court decree of divorce, or annulment, or legal separation, or any court order or any court-approved property settlement agreement incident to a decree of divorce, annulment or legal separation'''' See 5 CFR Part 1653}. Calculating and distributing lump-sum and installment payments to plan participants.. Performing all IRS required discrimination testing, which includes but is not limited to:. ACP testing. ADP testing. Aggregate limit test. Monitoring of elective deferrals (Section 402(g. Top-heavy testing (Section 416(c). Participation testing (Section 401(a» NOTE: These tests must be performed at least on a semiannual and plan year-end basis in compliance with IRS regulations, on a schedule designated by DOS.. Performing, at least semiannually, the Section 415 annual additions testing, which must reflect allocations under DOS's tax deferred defined contribution plan and any other related additions required under IRS code. • production and mailing to plan participants the following plan account information:. Quarterly Participants' statements, which include:. Cumulative employee contributions, both quarterly and year-to-date. In-service withdrawals;. Performance results of funds in the plan; • Summary of asset allocations for each participant.. On-demand Participant statements, as requested by the participants.. Annual 70 Distribution election forms to. participants who attain the age of 70 1/2. ----------¬. Written or electronic confirmations of open season and fund allocation changes within seven calendar days after contractor notification of such changes.. IRS 1099 forms for all distributions, including delinquent loans.. Quarterly loan statements, including at a minimum:. Beginning balance. Principal paid. Interest paid. Ending balance. Interest rates. Written notification of excess contributions.. Refunds of excess contributions.. Provision of the following plan level reports to DOS:. Quarterly summary activity statistics, including at a minimum:. Cumulative employee contributions. In-service withdrawals • Performance results of funds in the plan. Annual "70” reports.. All required IRS reports.. Annual 5500 Report, including submission to the Department of Labor, if requested by DOS.. Results of annual IRS discrimination testing and summary report of all DOS plan participants with excess contributions.. Monthly plan asset reports. • Ad hoc reports requested by the DOS. '------¬ - --- - ----------¬. Investment Management/Trustee Services - The contractor shall be capable of performing investment management/trustee services which, at a minimum,include the following:. Offering a minimum of 5 diversified, daily valued, investment options that are competitive within their categories; at least three investment options must represent materially different risk characteristics; any investment option shall not have invested more than 25 percent of its assets in securities of commercial banks (including state chartered banks) or their affiliates, including a bank holding company. See DOS ethics [5 CFR 3101.108(a} (2)] for the definition of "securities".. Accepting trades each business day on a pre¬-notification trade business; i.e., trade executed at closing stock prices on the trade date.. Accepting contributions from DOS payroll office via wire transfer/ACH. • Providing periodic investment education material. • Designating an account representative for DOS who will attend quarterly DOS Retirement Savings Plan Oversight Committee meetings at DOS headquarters, as requested by DOS, coordinate investment management issues, and resolve related investment and processing issues for both inside and outside funds. • Producing and providing Ad Hoc reports to DOS. • Acting as DOS's Trustee. F. DOS RESPONSIBILITIES. At time of the contract award, DOS will provide the contractor with USPSC information, including location, accounting center, and salary for eligible PSC's. - -¬ -- - ------¬ DOS will periodically update the personal information necessary for the vendor to maintain accounts and mail participant information to the Contractor. INSTRUCTIONS TO OFFERORS: Interested offerors shall provide a complete technical proposal in response to this RFP which shall address all elements of this statement of work in sufficient detail in order that the Government may evaluate. The technical proposal shall also detail the offeror’s corporate capability and experience in managing 401k plans and shall include past performance information and reference information by which the Government can verify the offeror’s past performance. The cost proposal for this requirement shall be contained in a separate volume and shall include all fixed priced costs for the base year and all option years to support the technical proposal. TECHNICAL EVALUATION CRITERIA (a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforms to the solicitation and is the most advantageous to the Government, price and other factors considered. Award will be made on the basis of the lowest evaluated price of proposals meeting or exceeding the acceptability standards for non-cost factors. The evaluation factors used in this solicitation will be rated acceptable/unacceptable. An unacceptable rating on any factor will be cause to remove the offeror from further consideration. All technically acceptable, responsible offerors will be placed in the competitive range and total price will be the deciding factor. The following is a breakout of the evaluation factors: (i)Ability to meet Statement of Work/Specification requirements. Provide a technical description in sufficient detail to evaluate compliance with the requirements of the solicitation. Each offeror shall provide sufficient data to substantiate the offerors ability to meet all requirements of the Statement of Work (ii)Ability to meet the delivery schedule. (b) Corporate capabilities and experience. (c) Past Performance. A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, shall result in a binding contract without further action by either party. Before the offer’s specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award. - --¬
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