Call for Solutions - Agreed Upon Procedures and Performance Audit Testing Solution

Solicitation / RFP / RFQ

This document is a "Call for Solutions" seeking innovative approaches for Agreed Upon Procedures (AUP) and Performance Audit Testing for Army Financial Management and Audit Readiness. The Army aims to improve financial performance, strengthen internal controls, and achieve sustainable auditability by transitioning to a targeted, materiality-focused remediation strategy.

• Develop procedures and test plans for identified process areas, including Military Payroll, Civilian Payroll, Procurement, Intergovernmental Transactions, Environmental and Disposal Liabilities, General Equipment, and Real Property.

• Procedures must be designed to confirm balances using Army-provided populations; the control environment will not be tested.

• Deliver clear, standardized documentation including procedures performed, evidence reviewed, and factual findings with root cause analysis.

• Outputs must be actionable and written in plain English.

• Solutions should align with the OSW Consolidated Audit model, aiming for consistent, repeatable testing outputs and increased auditor confidence.

• Offerors must have demonstrated experience in Federal financial statement audits, AUP engagements, and performance audits within the Department of War environment.

• CMMC Level 2 certification is required for award eligibility.

• The Government intends to award Firm-Fixed-Price (FFP) contract(s).

• The period of performance for testing must be completed by December 31, 2026, with interim results delivered by process area.

• Solution Briefs Due Date/Time: 08 May 2026 at 1600 Eastern Daylight Time (EDT).

• Submissions are to be sent via email to the Contracting Officer and Contract Specialist listed.

• The submission process involves up to three phases: Solution Brief, Pitch Session (optional), and Solution Proposal (optional).

• Evaluation criteria for the Solution Brief include Technical Merit, Schedule, Rough Order of Magnitude (ROM), CMMC Level 2, and Intellectual Property.

• Questions are due by 28 April 2026 at 1600 EDT.

• Resellers and academic research proposals are not desired.

• The Government may down-select potential awardees and reserves the right to issue multiple awards or no awards.

• Submittals must use a standard, readable font. Landscape-oriented pages are permissible for visuals but count towards the page limit.

• The Government may use internal AI tools for administrative review, but final evaluation judgments are inherently governmental.

• Non-Government advisors may be used in evaluation, but their role is consultative, and they will not have access to proprietary information.

• Offerors must perform an Organizational Conflict of Interest (OCI) analysis.

Questions & Answers / Clarifications

This document provides responses to questions submitted by potential offerors regarding the "AOS Call for Solutions" (Solicitation). It clarifies requirements, submission details, and other aspects of the opportunity.

• Subcontractor Eligibility: Subcontractors do not need to meet the prime's NAICS code; the prime is responsible for assigning an appropriate NAICS code for the subcontractor's work.
• CMMC 2.0 Level 2: Certification requirements flow down to subcontractors based on the type of information they process, store, or transmit. It is not satisfied by the prime alone if a subcontractor handles CUI.
• Audit-Permanence: Third-party, public-blockchain anchoring of test-evidence hashes is considered a permitted enhancement and not out-of-scope.
• Phase 1 Demonstrations: Internet links to additional information are not permitted in the Solution Brief. Static graphics are allowed, but external URLs will not be accessed by evaluators.
• Solution Brief Due Date: The due date has been extended to May 8, 2026, at 1600 EDT.
• Materiality Thresholds: Offerors should propose a methodology for determining sample sizes and selection criteria, as the government has set a capitalization threshold of $15 million for GPP&E.
• Population Validation: Contractors' procedures should include validating population completeness and traceability.
• OCI Analysis: Offerors must submit a formal OCI analysis, including a mitigation plan if an OCI is identified. Simply marking submissions is insufficient.
• Page Limits: A Table of Contents and List of Exhibits are not permitted and will not be evaluated. An additional page has been added for industry feedback on pricing structure.
• Experience Requirements: The requirement for direct Independent Public Accountant (IPA) experience remains unchanged to ensure specialized expertise.
• Non-Government Advisor (Guidehouse): Guidehouse's role is consultative to the Government evaluation team. Offerors are not required to execute an NDA with Guidehouse for the Solution Brief submission, and Guidehouse will not access proprietary information during evaluation.

Several sections of the Call for Solutions have been updated to reflect these clarifications, including the due date, CMMC requirements, OCI analysis instructions, and page limits for specific sections. Offerors must adhere to the updated guidance.

Solicitation / RFP / RFQ

This document is a "Call for Solutions" (CFS) for an "Agreed Upon Procedures and Performance Audit Testing Solution for Army Financial Management and Audit Readiness." The Army is seeking innovative solutions to improve financial performance, strengthen internal controls, and achieve sustainable auditability by transitioning to a targeted, materiality-focused remediation strategy. This involves using Agreed-Upon Procedures (AUP) and performance audit work to identify audit failures and confirm corrective actions.

• Develop procedures and test plans for specific process areas: Military Payroll, Civilian Payroll, Procurement, Intergovernmental Transactions, Environmental and Disposal Liabilities, General Equipment, Real Property, and Operating Materials and Supplies – Munitions.

• Execute AUP and Performance Audits in accordance with AICPA Standards and GAGAS, respectively.

• Focus on targeted, fully substantive testing of high-impact financial areas.

• Deliver clear, standardized documentation including procedures performed, evidence reviewed, and factual findings with root cause analysis.

• Outputs must be in clear, plain English with actionable steps.

• The solution must align with the OSW Consolidated Audit model.

• Offerors must have CMMC Level 2 Certification.

• The Government intends to award Firm-Fixed-Price (FFP) contract(s).

• The Government reserves the right to award to all, some, or none of the companies submitting proposals.

• Multiple awards may be issued.

• Solution Briefs are valid for 180 calendar days after submission.

• Solution Briefs Due Date/Time: 05 May 2026 at 1600 Eastern Daylight Time (EDT).

• Submissions are to be sent via email to the Points of Contact (POCs) listed.

• Questions are due by 28 April 2026 at 1600 EDT.

• The evaluation process involves up to three phases: Solution Brief, Pitch Session (optional), and Solution Proposal (optional).

• Evaluation criteria for the Solution Brief include Technical Merit, Schedule, ROM, CMMC Level 2, and Intellectual Property.

• Resellers and academic research proposals are not desired.

• Offerors must have CMMC Level 2 Certification.

• Offerors must perform an Organizational Conflict of Interest (OCI) analysis.

• The Government may utilize internal AI tools for administrative review, but final judgments remain governmental functions.

• Non-Government advisors may be used in the evaluation process; Offerors may enter into NDAs directly with these advisors.