Specialized Training for Economists and Financial Analysts

The US Treasury Department (IRS), Office of Treasury Procurement Services (OTPS) is conducting market research to identify potential small business sources (including 8(a), veteran-owned small business, service-disabled veteran-owned small business, HUB Zone small business, small disadvantaged business, and women-owned small business concerns), the capacity and technical capability necessary to successfully perform the requirement described herein. The subject requirement is to provide specialized training for Economists and Financial Analysts. The subject areas will be: Credit, Risk, Sovereign & Country Risk, Project Finance, Covered Bonds, and Bank Analysis. Only potential small business sources interested in competing in any future solicitations as a prime contractor should respond to the Sources Sought Notice. This is not a solicitation announcement. No contract will be awarded from this announcement. No reimbursement will be made for any costs associated with providing information in response to this announcement. The Government will use responses to this Sources Sought Notice to make appropriate acquisition decisions. Any resultant award is anticipated to be Firm Fixed Priced (FFP), for a one year period. The Statement of Objectives (SOO) falls under the North American Industry Classification System (NAICS) Code 611430 Professional and Management Development Training. Interested firms must demonstrate in their qualification statement that they are qualified to perform the complete SOO under this NACIS code. Information regarding the Statement of Objectives: OBJECTIVES: The following tasks will outline the subject areas and the outcome that is expected after completion of the training. At a minimum, this SOO supports the following goals: Task 1 Credit Risk -Upon completion students should possess the skills to: - Identify the different types of credit risk and how they arise in a financial institution's various activities. - Understand how credit risk can be quantified, monitored and controlled, exploring the role of credit portfolio management tools such as collateral, documentation and credit derivatives. - Understand the need for capital, differentiating between definitions of capital applied by various stakeholders such as management and regulators. Task 2 Bank Analysis - Upon completion students should possess the skills to: - Use a structured approach to the analysis of banks within the wider context of the operating environment and support. - Identify strong & weak performers using a detailed analysis of financial statements within the context of local and international accounting and business norms. - Identify financial, qualitative, and market early warning signals of credit migration. - Stress test bank capital and ability to withstand credit, market, and liquidity risk. - Evaluate strategy and risk management capabilities within the context of the current and future economic climate and changing competitive, political and regulatory conditions, including Basel III capital and liquidity requirements. - Recognize how and the extent to which more complex banking businesses are reflected in the balance sheet and how the risk profile is evidenced in the income statement. - Identify and quantify exposures where all or part of the exposure is off-balance sheet, including derivatives and structured finance vehicles. - Understand how the new accounting and reporting conventions under both US GAAP and IFRS impact differently the financial statements of banks and investment banks. - Use the information provided to evaluate the bank's risk profile and appetite. - Recognize best practice in financial reporting, including new GAAP / IFRS requirements and Basel II Pillar III disclosures. Task 3 Sovereign and Country Risk - Upon completion students should possess the skills to: - Understand the key drivers of country and sovereign risk in both mature and emerging markets. - Identify qualitative, quantitative, and market indicators of vulnerability. - Recognize the impact of sovereign support and country risk on other exposures, including public sector entities. - Review the lessons learned from the current and previous crisis in various regions of the world. Task 4 Project Finance - Upon completion students should possess the skills to: - Apply a structured and systematic approach to assessing project finance transactions. - Recognize the key characteristics of a robust project and identify the weakest links in the transaction. - Use qualitative and quantitative tools and measures to distinguish the key risks. - Interpret each of the risks to determine their severity and potential impact on the transaction structure. - Appreciate how the mechanisms in the transaction documents operate to protect the creditors and evaluate the protection provided - Build a credit rationale in order to make and substantiate investment decisions. Task 5 Covered Bonds - Upon completion students should possess the skills to: - Use a structured analytic approach to evaluate the risk profile of covered bonds. - Understand the legal framework used to issue covered bonds in key jurisdictions. - Identify risks to continued payments should an issuer default. - Distinguish the credit quality of cover pools. - Assess the impact of program features on ratings. - Evaluate the relative risks and rewards of covered bonds vs. other funding instruments (e.g. RMBS, CMBS, unsecured debt). In addition, the contractor must possess the technical expertise to provide the training but also the capability to address student questions that arise during the training sessions. DELIVERABLES: Scheduling The training requirements above are required to be provided over the course of a 12 month period from the date of award. The classes each of the subject areas will be for: - A period of no more than 3-days in length. - May be combined (offered back-to-back) if Treasury wishes to do so. - Be able to accommodate up to 20 students. - Will be coordinated and scheduled no later than 30-days prior to the start date of the training. Verification The contractor will provide Treasury a list of all students (employees) who have successfully completed each training class. GOVERNMENT FURNISHED MATERIALS, FACILITIES AND PROPERTY: The government will provide training room/s in existing Treasury, Departmental Office space located in Washington, DC for each of the training classes. SECURITY AND PRIVACY REQUIREMENTS: Contract personnel will be required to meet Treasury security requirements in order to gain access to Treasury, Departmental Office space in Washington, DC. Small Business Firms responding to the Sources Sought Notice are required to provide the Treasury Department (IRS) a detailed capability statement. Responses are limited to 5 pages (letter size) with a font no smaller than 12 point and include company name, DUNS number, socio-economic status (e.g. HUBZone, Small, 8(a), etc...), point of contact (including telephone number, facsimile number and e-mail address), and a list of contracts (including contract type) within the past five (5) years under which the interested party has performed the same or similar work. All responses should be sent via email to debra.j.wright@irs.gov. Telephonic and mail/courier responses will not be accepted. Feedback and/or evaluation information will not be provided to any firm regarding their individual capability statements in responses to the Sources Sought Notice. The deadline for submitting capability statements in response to the Sources Sought Notice is June 26, 2013 by 2:00PM ET.