Financial Audits and Examinations

A. Description of the Proposed Contract Action The United States Agency for International Development (USAID) intends to award multiple Commercial Item awards for approximately 75 financial audits and examinations, to be conducted according to USAID Automated Directive System (ADS) 591 and Office of Inspector General's (OIG) "Guidelines for Financial Audits Contracted by Foreign Recipients", dated February 2009. These Purchase Orders will be competed according to FAR Part 13 procedures; and as the funding expires at the end of Fiscal Year 2010, awards will be issued on/before September 30, 2010. USAID's Regional Inspector General in Cairo requires annual audits of every USAID/West Bank and Gaza award, to ensure that USAID/West Bank and Gaza's program have appropriately funded costs that are reasonable, allocable, and allowable. The number of FY 2010 nonfederal audits required has increased from an annual audit requirement of about 48 to 75 audits this year, with greater numbers expected in 2011. B. Specific Audit Requirements The audits will be conducted according to 4 different Statements of Work: (1) Fund Accountability Statement (used for Cooperative Agreements and Grants); (2) Cost Representation Statement (used for contracts other than Fixed Price Contracts); (3) Examination Engagement (used for Fixed Price Contracts); and (4) Audit for Cash Transfer Agreements. The audits are generally defined in ADS 591 and OIG's "Guidelines for Financial Audits Contracted by Foreign Recipients." Each audit requires, on average, 27 person-days level of effort. The audits must reflect a sufficient understanding of the contractor's/recipient's internal controls related to the award, assess control risk, and identify reportable conditions, including material internal control weaknesses. The auditor must perform tests to determine whether the contractor/recipient complied, in all material respects, with award terms and applicable laws and regulations related to USAID-funded programs that have a direct and material affect on contractor's/recipient's Funds and Costs statements. Furthermore, the audits must be conducted by independent public accounting firms approved by the OIG, as per ADS 590 and the OIG's "Guidelines for Financial Audits Contracted by Foreign Recipients." Since application for approval by OIG is open year-round, and given the urgency of this requirement, we will only consider firms which are OIG-approved or will be OIG-approved by the response date listed on this synopsis. In addition, OIG-approved firms must meet the rules in 22 CFR 228, Source, Origin and Nationality for Commodities and Services Financed by USAID; and be able to conduct business in West Bank and Gaza. C. Justification for FAR 13 Competitive Procedures The intent of this notice is to alert potential sources that USAID intends to conduct a procurement using the competitive source selection procedures consistent with FAR 13. FAR 13.105(a) requires the public display and synopsis requirement of FAR 5.101. In following the FAR 13 procedures, USAID does not intend to use a combined synopsis and solicitation. Rather, we intend to solicit according to FAR 13.104, which states that maximum practicable competition ordinarily can be obtained by soliciting quotations or offers from at least three sources within the local trade area.