Addendum 3 RFQ Program Audit Consulting Services 111208 HT

Heidi.Turpen

Description

DCN: 03895 RFQ COVER PAGE - VIA EMAIL TO: Jefferson Wells Hemming Morse, Inc. Moss Adams Attn: Sam Raj Attn: Greg McKinnon Attn: Curtis Mathews 2033 Gateway Place, Ste. 511 2679 Passi Flora Court 805 SW Broad St., Ste. 1200 San Jose, CA 95110 Chico, CA 95973 Portland, OR 97205 [e-mail] [e-mail] [e-mail] Ernst and Young LLP Capital Program Management, Inc. Deliotte Financial Attn: Mark Angelos and Steve Holetz Attn: Jay C. Davison Attn: Peter Wallace 2901 Douglas Blvd., Suite 300 2150 Capitol Avenue 1700 Market Street Roseville, CA 95661 Sacramento, CA 95816 Philadelphia, PA 19103 [e-mail] [e-mail] [e-mail] [e-mail] KPMG, LLP Construction Consulting Company Correctional Associates Attn: Irene Liong Attn: Rick Aguilar Attn: Buford Crib 400 Capitol Mall, Ste. 800 P.O. Box 3097 18392 Loma Street Sacramento, CA 95814 Arnold, CA 95223 Hesperia, CA 92345 [e-mail] [e-mail] [e-mail] FROM: Lyndee Berg, Contracts and Procurement Manager California Prison Receivership Program URS/BLL Joint Venture    P: 916-779-6414 C: 916-730-1583 [e-mail] REGARDING: ADDENDA #3 TO: 08RFQ011 – Program Audit Consulting Services DATE: November 12, 2008 Any questions should be directed to Ms. Berg at 916-779-6414 or [e-mail] Q-1: ...

Informations

• Publié par: Shuwyeng
• Nombre de lectures: 43
• Langue: English

Extrait

DCN: 03895

2400 Del Paso Rd., Suite 255 Sacramento, CA

95834

Page 1 of 6

RFQ

COVER

PAGE

-

VIA

EMAIL

TO:

Jefferson Wells

Attn: Sam Raj

2033 Gateway Place, Ste. 511

San Jose, CA

95110

[e-mail]

Ernst and Young LLP

Attn: Mark Angelos and Steve Holetz

2901 Douglas Blvd., Suite 300

Roseville, CA

95661

[e-mail]

[e-mail]

KPMG, LLP

Hemming Morse, Inc.

Attn: Greg McKinnon

2679 Passi Flora Court

Chico, CA

95973

[e-mail]

Capital Program Management, Inc.

Attn:

Jay C. Davison

2150 Capitol Avenue

Sacramento, CA

95816

[e-mail]

Construction Consulting Company

Moss Adams

Attn: Curtis Mathews

805 SW Broad St., Ste. 1200

Portland, OR

97205

[e-mail]

Deliotte Financial

Attn: Peter Wallace

1700 Market Street

Philadelphia, PA

19103

[e-mail]

Correctional Associates

Attn:

Irene Liong

Attn:

Rick Aguilar

Attn:

Buford Crib

400 Capitol Mall, Ste. 800

P.O. Box 3097

18392 Loma Street

Sacramento, CA

95814

Arnold, CA

95223

Hesperia, CA

92345

[e-mail]

[e-mail]

[e-mail]

FROM:

Lyndee Berg, Contracts and Procurement Manager

California Prison Receivership Program

URS/BLL Joint Venture

P: 916-779-6414

C: 916-730-1583

[e-mail]

REGARDING:

ADDENDA #3 TO:

08RFQ011 – Program Audit Consulting Services

DATE:

November 12, 2008

Any questions should be directed to Ms. Berg at 916-779-6414 or

[e-mail]

Q-1:

Is it the intention of the CPR to have all services described in the RFQ performed by a single entity?

A-1:

CPR's preference is that one (1) firm would be qualified to provide all the services described in the RFQ.

We have been made aware that certain services, as originally described in the RFQ, would conflict with the

independence required of independent auditors under Generally Accepted Government Audit Standards or

under Attestation Standards of the AICPA.

In order to allow one (1) firm to be able to perform all of the

services described in the RFQ, we have made certain revisions to the description of the anticipated scope of

services, which are attached hereto as Attachment A.

Q-2:

Does CPR expect the "semi-annual performance audit" to be performed under Governmental Auditing

Standards (Yellow Book)?

If so, who or which entities would be the recipients of the independent auditor's

report?

DCN: 03895

2400 Del Paso Rd., Suite 255 Sacramento, CA

95834

Page 2 of 6

A-2:

No, the performance audits will be performed under an "agreed-upon procedures" engagement pursuant

to the "Attestation Standards" of AICPA.

The selected firm will be expected to work with CPR and URS/BLL

in defining the appropriate procedures and scope of performance audits.

CPR will be the recipient of the

independent auditor's report, and CPR may make the report available to the public by posting to the internet or

otherwise.

Q-3:

Who or which entities would be the recipients of the independent auditor's report for the semi-annual

performance audits and financial audits of the Statement of Project Costs for the Master Program?

What

performance standards, if any, would apply to the funds used by the Master Program?

A-3:

CPR will be the recipient of the independent auditor's reports for both performance and financial audits,

and CPR may make such reports available to the public by posting to the internet or otherwise.

Generally

Accepted Government Audit Standards (Yellow Book) will apply to financial audits of the expenditure of funds

for the Master Program.

Q-4:

Are the "construction audit services" to be performed under the Attestation Standards of the AICPA?

If

so, who or which entities would be the recipients of the independent accountant's report?

A-4:

Yes – the construction audit services will be performed under an "agreed-upon procedures" engagement

pursuant to the "Attestation Standards" of AICPA.

The selected firm will be expected to work with CPR and

URS/BLL in defining the appropriate procedures and scope of construction audits.

CPR will be the recipient of

the independent auditor's report, and CPR may make such report available to the public by posting to the

internet or otherwise.

Q-5:

We understand that the financial audits will be performed under the Yellow Book (Government

Accounting Standards), but wanted to confirm as to whether the performance audits requested will be

performed under the Yellow Book standards as well?

A-5:

See answer to Question 2 above.

Q-6:

Please clarify which entity(s) will be receiving the financial audit?

A-6:

See answer to Question 3 above.

Q-7:

Please clarify which entity(s) will be receiving the performance audit?

A-7:

See answer to Question 2 above.

Q-8:

Please clarify which entity(s) will be receiving the construction audit?

A-8:

See answer to Question 4 above.

Q-9:

Will our agreement for the above mentioned audits, either singularly or collectively, be executed solely

by and between CPR? If not, could you please clarify with whom the service provider will contract?

A-9:

CPR alone will enter the contract with the auditing firm.

Q-10: Will URS/BLL seek or have authority to contractually engage the service provider to deliver these

services under the "Master Plan"?

A-10:

No.

Q-11:

Do you anticipate any type of contractual arrangement or fee obligation by and between URS/BLL and

the service provider?

A-11:

No.

DCN: 03895

2400 Del Paso Rd., Suite 255 Sacramento, CA

95834

Page 3 of 6

Q-12:

Please identify all entities, where known, within the "Master Plan" that the service provider will work

with (i.e. subcontractor, contractors, program managers, etc.)

A-12:

This information will be made available to the selected auditing firm.

Q-13:

What is the expected date for budget approval for this specific project?

A-13:

CPR has already approved a budget for program auditing services.

Q-14:

What is the total budget for this specific project?

A-14:

On a multi-billion dollar master program, we expect the budget for program auditing services to exceed

one million dollars.

Q-15:

Is the budget for this specific project subject to multiple approvals, beyond the court mandate, in order

for the project to move forward?

A-15:

CPR's approval is the only one needed for program auditing services to move forward.

As far as CPR's

construction and other projects, several are already underway and the approval of future ones is a subject

beyond the scope of this format, but will be discussed with the selected auditing firm.

Q-16:

Are you specifically requesting hourly rates or estimates of cost around each of the service areas?

A-16:

This is a request for qualifications, not a request for proposals – we only want to see the hourly rates of

your relevant personnel.

Q-17:

RFP Section VII.D.3(g) [Qualifications of Technical Personnel] states ...

“Specifically describe previous

related experience, its pertinence to this program, and provide

references

including name, address, and

telephone number of a contact person who can verify the information provided”.

Please clarify the type of

reference you seek?

Are you looking for a client reference who can to speak to their experience with

a specific team member on a specific project or an internal (i.e., vendor)

reference to confirm employment

history?

A-17:

Three (3) client references, on a project of similar scope and size, is preferable.

Q-18:

Why was there no mention of a DBE (Federal) or DVBE (State) requirement for the current RFQ for

Program Audit Consulting Services?

I have been in business for 16 years and I have never seen this

requirement waived since it is mandated by law.

A-18:

The Receiver appointed by the federal court operates under a series of waivers of certain state legal

requirements in order to allow the Receiver to take the quick remedial action necessary to address the

emergency health care situation in the state prison system.

As a result, the Receiver is not subject to DVBE

requirements, and since no federal funding is involved, federal DBE requirements are not applicable.

Even

though the Receiver is not subject to DVBE requirements, the Receiver would be pleased to receive a submittal

from any DVBE auditing firm.

If your firm is a certified DVBE, please mention that in your submittal of

qualifications so that CPR may give it due consideration along with your firm's other qualifications.

Q-19:

We may want to provide California State with several solutions and offerings within our proposal

submission.

Is this acceptable to URS and California State?

A-19:

Multiple solutions are acceptable.

Ensure submittal shows your company’s capability to deliver on the

solutions since this is an RFQ.

DCN: 03895

2400 Del Paso Rd., Suite 255 Sacramento, CA

95834

Page 4 of 6

Attachment A

Revised Description of Anticipated Scope of Services

I.

ANTICIPATED SCOPE OF SERVICES

A. General Scope of Services

Consultant will provide performance audit, financial statement audits and construction cost audits

to assist the CPR in determining whether the Master Program is being administered effectively

and efficiently.

Performance audit activities are expected to include:

•

At Program Level (e.g., 10,000 bed, existing site clinic upgrades, technology/medical

records, pharmaceutical)

Completion of a quarterly performance audit that includes:

ƒ

Audit initiation, scheduling and coordination

ƒ

Review of key documents

ƒ

Interview with key personnel; testing and analysis of expenditures; review of

internal controls; and review of the

implementation of policies and procedures

to address the following:

o

Complete scope of work accounted for in budget system

o

Completed estimates for all scope of work

o

Budgets include all components of soft costs

o

Uncertain/unpredictable costs (e.g., escalation) are accounted for in a

logical and consistent way

o

Clear indication of degree of confidence in individual estimate numbers

o

Control systems for contracting/procurement activities

o

Administrative procedures including recordkeeping and document

o

Compliance

with

regulatory

requirements

and

court-mandated

procurement procedures

o

Compliance with and effectiveness of invoicing procedures including

required due diligence, taking into account the type of contract

involved

o

Compliance with institutional policies and best practices

o

Effectiveness of Compliance with and effectiveness of

established

communications/MIS procedures and best practices

o

Compliance with established controls for the following activities:

¾

Cost and schedule management

¾

Change order management

¾

Project close out

•

At Master Program Level (e.g., inclusive of all CPR facilities-related program and

expenditures), completion of a quarterly performance audit that includes:

DCN: 03895

2400 Del Paso Rd., Suite 255 Sacramento, CA

95834

Page 5 of 6

ƒ

Reviewing implementation of

cross-platform standards across individual

programs

ƒ

Reviewing

forms and effectiveness of communication across programs

ƒ

Reviewing

form and effectiveness of reporting procedures across programs

ƒ

Reviewing

consistency and completeness in program budget formats

ƒ

Reviewing

form and effectiveness of Master Program Level consolidated

budget reporting

•

Additional duties as requested:

•

Performance of special projects as requested consistent with the auditor's

independent status

•

Assistance in establishing best practices and protocols for Master Program

Level consolidation and reporting of information

•

Participation in Observation of

key program meetings

•

Other duties as assigned consistent with the auditor's independent status

Performance audit services will be performed under an "agreed-upon procedures" engagement

pursuant to the "Attestation Standards" of AICPA.

The selected firm will be expected to work with

CPR and URS/BLL in defining the appropriate procedures and scope of performance audits.

Financial audit activities are expected to include

:

•

Conduct a quarterly audit of the Statement of Project Costs for the Master

Program in accordance with Generally Accepted Government Audit

Standards (Yellow Book) ("GAGAS") auditing standards generally accepted in

the United States of America and standards for financial audits contained in

Governmental Auditing Standards, issued by the Comptroller General of the

United States, with the objective of expressing an opinion to CPR

as to

whether the presentation of the statements conform with GAGAS

.

accounting

principles accepted in the United States of America.

Construction audit services are expected to include the following services for those construction

contracts with a significant cost reimbursement component (e.g., IPD agreements):

•

Preconstruction Audit:

Prior to construction, review and evaluate the

contracting party's project-related accounting systems and records and

advise CPR regarding same based on CPR's desired approach to

construction cost accounting.

If requested, assist CPR in negotiating a

reasonable evaluate the

general and administrative overhead rate proposed

by the

with contracting party to determine whether the rate is reasonable in

light of the contracting party's proposed included costs, based on auditor's

review of contracting party's accounting systems and records.

•

Construction Phase Auditing:

During construction, perform periodic "spot"

audits of targeted portions of the contracting party's job cost reports on a

schedule acceptable to CPR.

•

Post-Construction Audit:

Following final completion by contracting party,

perform audit of contracting party's report of actual incurred construction costs

and determine for CPR the actual construction costs reimbursable to

contracting party.

DCN: 03895

2400 Del Paso Rd., Suite 255 Sacramento, CA

95834

Page 6 of 6

•

Other construction cost accounting services as requested by CPR which are

consistent with the auditor's independent status.

Construction audit services will be performed under an "agreed-upon procedures" engagement

pursuant to the "Attestation Standards" of AICPA.

The selected firm will be expected to work with

CPR and URS/BLL in defining the appropriate procedures and scope of construction audits.