At the request of the Federal Communications Commission (FCC) Office of Inspector General (OIG), and to ensure optimal exposure of the Universal Service Administrative Company (USAC) Requests for Proposals (RFPs), the FCC is alerting the public that USAC has posted on its web site, copies of the RFP for audit/investigative services in support of the oversight program for the universal service fund low income support mechanism. The RFP is electronically available at http://www.usac.org or at http://www.universalservice.org/about/. Please note that additional RFPs for audit services of other facets of the universal service program will be available shortly. No additional notification will be issued by the FCC. ALL COMMUNICATIONS IN REFERENCE TO THESE OPPORTUNITIES SHALL BE THROUGH USAC'S Contracting Office: Universal Service Administrative Company, Attention: Wayne Scott, Vice President - Internal Audit, 2000 L Street, N.W., Suite 200, Washington, D.C. 20036, Email:
[email protected] . --- BACKGROUND: The Telecommunications Act of 1996 directed that all providers of interstate telecommunications services contribute to a federal universal service support mechanism in an equitable and nondiscriminatory manner and that there be specific, predictable, and sufficient federal and state mechanisms to preserve and advance universal service. The FCC has by federal regulation designated USAC to administer the universal service support mechanisms for schools, libraries, rural health care providers, high cost areas, and low income consumers. USAC manages the Universal Service Fund (USF) in its administration of these support mechanisms. In its role as Administrator, USAC has the responsibility to take measures to prevent, deter and detect waste, fraud, and abuse involving the USF and the universal support mechanisms, and to report to the FCC and Congress regarding actions to prevent waste, fraud and abuse. In fulfilling its responsibilities, USAC works closely with the FCC Office of Inspector General (OIG). The oversight responsibility of the FCC OIG is to independently detect and prevent waste, fraud, and abuse with respect to all FCC programs, including the USF. USAC, in consultation with the OIG, developed the requirements of this Request for Proposal (RFP). The purpose of this procurement is for conducting audits to assist the FCC OIG/USAC, at a minimum, to conduct the number of audits necessary to calculate an estimated error rate of improper payments in accordance with the Office of Management and Budget (OMB) guidance regarding Improper Payment Information Act (IPIA). USAC and the OIG commenced this competitive procurement in November 2004 to select an audit firm to conduct this large-scale number of audits. This replaces the previous USAC procurement action. All previous bidders are encouraged to resubmit proposals. In addition, new bidders are welcome. The objectives of the audits are to: (1) detect waste, fraud, and abuse by beneficiaries of the universal service support mechanisms, (2) deter waste, fraud, and abuse by beneficiaries of the universal service support mechanisms, (3) generate insights about the compliance of beneficiaries with applicable law and the quality of administration of the universal service support mechanisms, and (4) identify areas for improvement in the compliance of beneficiaries with applicable law and the administration of the universal service mechanisms. This RFP also requires respondents with the capability of providing investigative support services. The estimated number of audits is based on an IPIA formula which uses an estimated error rate. The contract resulting from this award will be a competitive, multiple award procurement for investigative services. Due to the number of potential bidder relationships with contributors, service providers and beneficiaries of the USF, disclosure and the process for identifying and evaluating potential and apparent or actual conflicts of interest must be addressed in each bidder proposal. A mitigation plan shall be required if disclosure reveals a conflict of interest. It should be noted that if, after evaluation, the mitigation plan is rejected, USAC has the right to reject the bid prior to further evaluation. Audits shall be conducted in accordance with Generally Accepted Audit Standards (GAAS), Generally Accepted Government Auditing Standards (GAGAS), and Improper Payments Information Act of 2002 (IPIA) Public Law 107-300.