BROAD AGENCY ANNOUNCEMENT No. CC-12-HQ-BA-0001 I.

GENERAL INFORMATION Agency Name: The Office of the Comptroller of the Currency, 250 E Street SW, Washington, DC 20219. Issuing Acquisition Office: The Office of the Comptroller of the Currency, Acquisitions Management Mail Stop FM4, 250 E Street SW, Washington, DC 20219. Research Opportunity Title: Office of the Comptroller of the Currency (OCC) Research Initiative Announcement Type and Date: Initial Announcement Research Initiative, June 2012 Research Opportunity Number: CC-12-HQ-BA-0001 Pricing: Any resulting order that is established as a result of this notice will be separately priced and negotiated and include appropriate terms and conditions consistent with applicable regulations. Response Due Dates: Pre-proposals will be accepted until May 14, 2012 at 11:59 pm EST. Proposals will be accepted until July 1, 2012 at 11:59 pm EST. Proposals will be evaluated and considered for funding on a continual basis through May 14, 2012 and July 1, 2012, respectively. Background The Office of the Comptroller of the Currency (OCC), a bureau of the United States Department of the Treasury, is the primary regulator of all nationally chartered banking institutions. The OCC is responsible for promoting the safety and soundness of the countrys national banking system and maintaining its competitiveness, efficiency, integrity and stability in the financial marketplace. Research Opportunity Description: The OCC established this Research Initiative to maintain its support for high-quality research on modeling issues related to valuations and risk measurement that arise from the use of complex non-experimental and often incomplete data data typically used by banks to develop risk models for trading, asset liability management, asset management, credit scoring, compliance, operation risk, underwriting, account management, risk management, and regulatory capital purposes. Banks have been using statistical models for several decades; however, until recently their Page 1 of 11 CC-12-HQ-BA-0001

models were developed using relatively simple statistical modeling techniques. With the recent advancements in computing technology and the increased availability of loan-level data, banks are developing models that incorporate advances in theoretical and applied modeling procedures. These include more complex sample designs and innovative estimation techniques that rely on advanced statistical, econometric and information theoretic techniques. With the introduction of new techniques, however, the risk of model failure increases until the procedures and techniques as applied to banking are thoroughly tested and evaluated. Although the primary responsibility for assessing the suitability of these models rests with each individual bank as part of their validation processes, bank supervisors increasingly will be required to understand the technical details of these models and, when warranted, recommend adjustments or enhancements to the model design as part of the supervisory process. At the OCC, examiners rely on the economists in the Risk Analysis Divisions (RAD) to review these models, to provide expert opinions regarding their use to OCC examiners and bank staff, and to train OCC examiners on certain aspects of model-risk analysis. However, advances in risk-model techniques are developing quickly to support increased market reliance on risk-based pricing, the need to value portfolios of securitized loans, and the inclusion of risk measurement tools under the Basel II Capital accord. Many of the techniques under consideration by banks are too new or too specialized to be studied within the traditional academic research framework. This broad agency announcement represents one mechanism to further the OCCs ability to review these models and provide expert opinions. The OCCs Research Initiative is seeking proposals that would provide an environment for cooperative research across multiple disciplines on joint work with applied researchers from such fields as business, economics, statistics, and finance to investigate alternative methods of developing models when the structure of the data is less than ideal. The objectives of the OCC Research Initiative are to develop an ongoing partnership with established research centers to engage in state-of-the-art research on data analysis, integrating econometrics, statistics and information theory; disseminate research findings using a variety of mediums to inform the academic community, policymakers, and the public; and provide training and funding support for graduate students and postgraduates to conduct research related to its research program. For all proposals submitted to the OCC, the OCC must ensure that the Contractor does not have a conflict of interest and is not biased because of its financial, contractual, organizational, or other interests that relate to the work under the proposal. A conflict of interest means that because of other activities or relationships with other persons, a Contractor is unable or potentially unable to render impartial assistance or advice to the Government, or the Contractors objectivity in performing the contract work is or might be otherwise impaired, or a Contractor has an unfair advantage. A proposal to the OCCs Research Initiative should address one or more of the following: 1. Research, evaluation and data development. The research program should focus on developing new ideas and new methods to analyze complex or incomplete and limited data, Page 2 of 11 CC-12-HQ-BA-0001

providing researchers with financial and intellectual support to carry on that research and foster an exchange of ideas. 2. Dissemination. Organizing and conducting conferences and workshops on special topics related to relevant research. 3. Training and education. Providing short courses, workshops, and training sessions in all areas of econometrics and statistical modeling. Reporting Requirements: Each award shall include the required technical and financial reporting requirements as described in paragraph 4 of Section V. Point(s) of Contact and Questions: Comments or questions submitted should be concise and reference the relevant part and paragraph of the BAA. Please take caution when submitting questions containing proprietary or sensitive information. Questions shall be directed to: Acquisitions Management, Point of Contact, Azita Mamdouhi, Contract Specialist, via email at Azita.Mamdouhi@occ.treas.gov Or Marguerite G. Brown, Contracting Officer, Pre Award Team Lead, via email Marguerite.Brown@occ.treas,gov II. AWARD INFORMATION It is anticipated that the awards will be made in the form of purchase orders. The awards will be made at funding levels commensurate with how the proposals meet the evaluation criteria in Section V and in response to agency missions. Each individual award will be individually negotiated. The OCC may establish a deadline for the close of fact-finding and negotiations that allows a reasonable time for award of a contract. Firms may be removed from award consideration should the parties fail to reach agreement on contract terms, conditions and/or cost/price within a reasonable time. III. ELIGIBILITY INFORMATION This BAA is open to institutions of higher education (universities) with degree-granting programs. Entities organized under section 501(c)4 of the Internal Revenue Code that engage in lobbying are not eligible. IV. APPLICATION AND SUBMISSION INFORMATION 1. General Information Page 3 of 11 CC-12-HQ-BA-0001

The pre-proposals and proposals submitted under this BAA are expected to address the objectives of the research initiative. The proposal submissions will be protected from unauthorized disclosure in accordance with applicable laws, the Federal Acquisition Regulation (FAR) and OCC terms and conditions. Offerors are expected to appropriately mark each page of their submission that contains proprietary information. All awards made as a result of this Announcement will comply with FAR 52.225-1 Buy American Act and FAR 52.225-5 Trade Agreements. The proposal submission process has two stages. Stage 1 - Prospective offerors are encouraged to submit pre-proposals to minimize the labor and cost associated with the production of detailed proposals that have very little chance of being selected for award. OCC will review all pre-proposals received prior to the deadline (5/14/2012 at 11:59 p.m. EST). Based on an assessment of the pre-proposal, the OCC will provide prospective recipients a recommendation to either submit a full proposal or to not submit a full proposal. Stage 2 - OCC will evaluate all proposals received prior to the deadline (7/1/2012 at 11:59 p.m. EST). All proposals submitted under the terms and conditions cited in this BAA will be evaluated in accordance with the evaluation criteria stated herein. Both pre-proposals and proposals should address any intellectual property issues related to the proposal, e.g. licensing and copyright of information. 2. Submission of Pre-proposals Pre-proposals shall be submitted electronically to Azita.Mamdouhi@occ.treas.gov. The email subject line should contain the following: CC-12-HQ-BA-0001. Pre-proposals received after the deadline of 5/14/2012 at 11:59 p.m. EST may not be reviewed. Paper size when printed - 8.5 x 11 inch paper Margins - 1 inch Spacing - single Font No smaller than Times New Roman, 10 point Number of pages no more than four (4) single-sided pages (excluding cover letter, cover, and curriculum vitae). Pre-proposal content should be as follows: A one page cover letter (optional) A cover page, labeled PRE-PROPOSAL, that includes the BAA number, proposed title, and offerors technical point of contact with telephone number, facsimile number, e-mail address, and topic title Identification of the research and issues Proposed methods Potential team and management plan Page 4 of 11 CC-12-HQ-BA-0001

 Summary of estimated costs Curriculum vitae of key researches Statement that firm is not aware of any conflicts of interest The pre-proposal should provide sufficient information on the strategic goals of the research center sponsoring the proposal and the scope of the proposed initiatives (e.g., research, dissemination channels, and training and education programs) to allow for an assessment as to whether a full proposal submission is warranted. Evaluation of Pre-Proposals Pre-proposals will be reviewed by a subject matter expert who is a Government employee. The subject matter expert will make a recommendation as to whether a full proposal is warranted based on the pre-proposal submission. The entity will be notified regarding submission of a full proposal. 3. Submission of a Full Proposal Proposals shall be submitted electronically to Azita.Mamdouhi@occ.treas.gov . The email subject line should contain the following: CC-12-HQ-BA-0001. Proposals received after the deadline of 7/1/2012 at 11:59 p.m. EST will not be considered for funding in the current fiscal year. Full proposals must include the following: A one page cover letter (optional) A cover page, labeled PROPOSAL, that includes the BAA number, proposed title, and offerors technical point of contact with telephone number, facsimile number, e-mail address, and topic title Identification of the research and issues Proposed methods Potential team and management plan Summary of estimated costs Curriculum vitae of key researchers Statement that firm is not aware of any conflicts of interest 4. Registration Requirements There is a one-time action that an offeror must complete in order to be considered eligible for award: registration with the Central Contract Registry (CCR) (http://www.ccr.gov/). An offeror may submit a pre-proposal and/or full proposal prior to registering; however, an award will not be made until the offeror has registered (see Section VI). Applicants who are not registered with CCR should allow at least 21 days to complete these requirements. It is suggested that the process be started upon initial pre-proposal submission. Questions regarding CCR registration may be directed to the OCC Point of Contact. 5. Pre-proposal and Full Proposal Receipt Notices Acknowledgement of receipt of a pre-proposal and/or proposal under this BAA will be Page 5 of 11 CC-12-HQ-BA-0001

accomplished via email to the addressee approximately one week after submission. 6. Late Submission of Pre-proposals and Proposals Any pre-proposal arriving after the deadline (11:59 p.m. EST on 5/14/2012) may not be reviewed and may not receive a recommendation. Any full proposal submitted after the time and date for submission (11:59 p.m. EST on 7/1/2012) will not be considered for award for the current fiscal year V.EVALUATIONINFORMATION 1.EvaluationCriteria Full proposals will be evaluated by an evaluation panel to assess whether the proposal is likely to meet the objectives of the OCCs Research Initiative. The assessment will focus on scientific merit (criterion a, below) and relevance and potential contributions to OCC (criterion b, below), although the other criteria (c and d below) may also be used in making the assessment. The first two evaluation factors are of equal importance: a. Scientific merit, soundness, policy relevance and programmatic strategy of the proposal b. Relevance and potential contributions of the proposal to the objectives of the OCCs Research Initiative The following criteria are each of lesser importance than any of the above two: c. Quality of the staffing, such as research experience and demonstrated research skills d. Realism of cost 2. Evaluation Panel Full proposals will be reviewed by an evaluation panel chaired by the responsible Technical Evaluation Team (TEP) Chairman. The evaluation panel will consist of subject matter experts who are Government employees. 3. Selection Process Full proposals will undergo a single stage evaluation procedure. Award decisions will be made on an acceptable or unacceptable basis. V.CONFLICT OF INTEREST 1.The Office of the Comptroller of Currency will review any potential Organizational Conflict of Interest (OCI) on a case-by-case basis. The mere existence of a relationship between an offeror and the OCC does not necessarily constitute an OCI. All offerors shall disclose any OCIs that could be viewed, in fact or appearance, as a conflict of interest, by completing the attached document within clause 1052.209-8001 below identified as OCI Disclosure/Representation Statement.

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1052.209-8000 (OCC) ORANGANIZATIONAL CONFLICTS OF INTEREST (NOV 2009) (a) Purpose. The purpose of this clause is to ensure that the Contractor (1) is not biased because of its financial, contractual, organizational, or other interests that relate to the work under this contract, and (2) does not obtain any unfair competitive advantage over other parties by virtue of its performance of this contract. (b) Scope. The restrictions described herein shall apply to performance or participation by the contractor and any of its affiliates or their successors in interest (hereinafter collectively referred to as Contractor) in the activities covered by this clause as a prime contractor, subcontractor, cosponsor, joint venture, consultant, or in similar capacity. For purpose of this clause, affiliation occurs when a business concern is controlled by or has the power to control another or when a third party has the power to control both. [ ] To the extent the contractor prepares and furnishes complete specifications covering non-developmental items to be used in a competitive acquisition, the contractor shall not be allowed to furnish these items either as a prime contractor or subcontractor. [ ] To the extent work to be performed under this contract requires evaluation of offers for products or services, a contract will not be awarded to a contractor that will evaluate its own offer(s) for products or services, or those of a competitor, without proper safeguards to ensure objectivity to protect the Governments interests. Contractor agrees to the terms and conditions set forth in the Performance Work Statement/Statement of Work that is established to ensure objectivity to protect the Governments interests. (FAR 9.505-3) [ ] If the contractor under this contract assists in the preparation of a statement of work or specifications, the contractor shall be ineligible to perform or participate in any capacity in any contractual effort (solicited or unsolicited) that is based on such performance work statement/statement of work or specifications. [ ] If the contractor provides Advisory and Assistance Services (AAS), it shall be ineligible thereafter to participate in any capacity in Government contractual efforts (solicited or unsolicited) which stem directly from such work, and the contractor agrees not to perform similar work for prospective offerors with respect to any such contractual efforts. Furthermore, unless so directed in writing by the Contracting Officer, the contractor shall not perform any such work under this contract on any of its products or services, or the products or services of another firm for which the contractor performs similar work. Nothing in this subparagraph shall preclude the contractor from competing for follow-on contracts for AAS. Page 7 of 11 CC-12-HQ-BA-0001

[ X ] If the Contractor, in the performance of this contract, obtains access to information, such as OCC plans, policies, reports, studies, financial or similar OCC information plans, internal data protected by the Privacy Act of 1974 (5 U.S.C. 552a), or data which has not been released or otherwise made available to the public, the Contractor agrees that without prior written approval of the OCC Contracting Officer it shall not: (A) use such information for any private purpose unless the information has been released or otherwise made available to the public; (B) compete for work for the OCC based on such information for a period of TBD after either the completion of this contract or until such information is released or otherwise made available to the public, whichever is first; (C) submit an unsolicited proposal to the OCC or the Government which is based on such information until one year after such information is released or otherwise made available to the public; and (D) release such information unless such information has previously been released or otherwise made available to the public by the OCC. In addition, the Contractor agrees that to the extent it receives or is given access to proprietary data, data protected by the Privacy Act of 1974 (5 U.S.C. 552a), or other confidential or privileged technical, business, or financial information under this contract, it shall treat such information in accordance with any restrictions imposed on such information. (c) The Contractor shall be ineligible to participate in any capacity in OCC contracts, subcontracts, or proposals (solicited and unsolicited) which stem directly from the Contractors performance of work under this contract. This restriction shall apply to ________ (Contracting Officer shall insert the company name upon award of the contract). This clause shall remain in effect for ____________ (Contracting Officer insert timeframe, which should normally be one year after completion of the contract) after the completion of this contract. At the conclusion of this period, the OCC, consistent with applicable conflict of interest regulations, will evaluate whether at that time there are any conflicts that may limit the contractor's ability to perform work for the OCC. (d) The financial, contractual, organizational and other interests of contractor personnel performing work under this contract shall be deemed to be the interests of the contractor or the purposes of determining the existence of an Organizational Conflict of Interest. Any subcontractor that performs any work relative to this contract shall be subject to this clause. The contractor agrees to place in each subcontract affected by these provisions the necessary language contained in this clause (e) Definitions. For purposes of application of this clause only, the following definitions are applicable: (1) System includes system, major component, subassembly or subsystem, project, or item; (2) Nondevelopmental items as defined in FAR 2.101; (3) Technical direction (TD) includes, but is not limited to, the activities in FAR 9.505-1(b); (4) Consultant services as defined in FAR 31.205-33(a); Page 8 of 11 CC-12-HQ-BA-0001

(5) Contractor, for the purposes of this clause, means the firm signing this contract, its subsidiaries and affiliates, joint ventures involving the firm, any entity with which the firm may hereafter merge or affiliate, and any other successor or assignee of the firm; (6) Affiliates means officers or employees of the prime contractor and first tier subcontractors involved in the program and technical decision-making process concerning this contract; and (7) Interest means organizational or financial interest. (f) Disclosure after award. The Contractor agrees that, if changes, including additions, to the facts disclosed by it prior to award of this contract, occur during the performance of this contract, it shall make an immediate and full disclosure of such changes in writing to the OCC. Such disclosure may include a description of any action which the Contractor has taken or proposes to take to avoid, neutralize, or mitigate any resulting conflict of interest. In the event that the Contractor was aware of facts required to be disclosed or the existence of an actual or potential organizational conflict of interest and did not disclose such facts or such conflict of interest to the OCC, the OCC may terminate this contract for default. (g) Remedies. For breach of any of the above restrictions or for nondisclosure or misrepresentation of any facts required to be disclosed concerning this contract, including the existence of an actual or potential, organizational conflict of interest at the time of or after award, the OCC may terminate the contract for default, disqualify the Contractor from subsequent related contractual efforts, and pursue such other remedies as may be permitted by law or this contract. (h) Waiver. Requests for waiver under this clause shall be directed in writing to the Contracting Officer and shall include a full description of the requested waiver and the reasons in support thereof. If it is determined to be in the best interests of the OCC, the Contracting Officer may grant such a waiver in writing. (f) Subcontracts (1) The Contractor shall include a clause, substantially similar to this clause, including this paragraph (f), in all subcontracts and agreements related to performance of work under this Contract. (2) Prior to the award under this contract of any subcontracts by the Contractor or as part of a teaming or other arrangement, the Contractor shall determine in writing whether interests disclosed by a subcontractor, teaming agreement or other arrangement present an actual or significant potential for an organizational conflict of interest. Where an actual or significant potential organizational conflict of interest is identified, the Contractor shall take actions to avoid, neutralize, or mitigate the organizational conflict to the satisfaction of the Contractor. If the conflict cannot be avoided or Page 9 of 11 CC-12-HQ-BA-0001

neutralized, the Contractor must obtain the approval of the OCC contracting officer prior to entering into the subcontract. (End of Clause) 1052.209-8001 (OCC) ORGANIZATIONAL CONFLICTS OF INTEREST DISCLOSURE/REPRESENTATION (NOV 2009) (a) Organizational conflict of interest means that because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to the Government, or the persons objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive advantage. (b) An offeror notified that it is the apparent successful offeror shall provide the statement described in paragraph (c) of this provision. For purposes of this provision, apparent successful offeror means the offeror selected for final negotiations or, where individual contracts are negotiated with all firms in the competitive range, it means all such firms. The requirements of this provision apply individually to any of the offerors identified consultants or subcontractors that also furnish advisory and assistance services in performance of this contract. (c) The statement must contain the following: (1) Name of the agency and the number of the solicitation in question. (2) The name, address, telephone number, and federal taxpayer identification number of the apparent successful offeror. (3) A description of the nature of the services rendered by or to be rendered on the instant contract. (4) A statement of any past (within the past twelve months), present, or currently planned financial, contractual, organizational, or other interests relating to the performance of the statement of work. For contractual interests, such statement must include the name, address, telephone number of the client or client(s), a description of the services rendered to the previous client(s), and the name of a responsible officer or employee of the offeror who is knowledgeable about the services rendered to each client, if, in the 12 months preceding the date of the statement, services were rendered to the Government or any other client (including a foreign government or person) respecting the same subject matter of the instant solicitation, or directly relating to such subject matter. The agency and contract number under which the services were rendered must also be included, if applicable. For financial interests, the statement must include the nature and extent of the interest and any entity or entities involved in the financial Page 10 of 11 CC-12-HQ-BA-0001

relationship. For these and any other interests enough such information must be provided to allow a meaningful evaluation of the potential effect of the interest on the performance of the statement of work. (5) A statement that no actual or potential conflict of interest or unfair competitive advantage exists with respect to the advisory and assistance services to be provided in connection with the instant contract or that any actual or potential conflict of interest or unfair competitive advantage that does or may exist with respect to the contract in question has been communicated as part of the statement required by (b) above. (d) Failure of the offeror to provide the required statement may result in the offeror being determined ineligible for award. Misrepresentation or failure to report any fact may result in the assessment of penalties associated with false statements or such provisions provided for by law or regulation (End of Provision)
OCI Representation Statement.d...

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