GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
KARL A. RACINE
January 27, 2021
The Honorable Phil Mendelson, Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Enclosed for consideration and approval by the Council of the District of Columbia is proposed
legislation, the Contract No. DCCB-2021-C-0001 with System and Methods, Inc. Approval and
Payment Authorization Emergency Act of 2021 and accompanying emergency declaration resolution
(legislation) to approve the award of the proposed multiyear Contract Number DCCB-2021-C-0001
to System & Methods, Inc.
The estimated contract amount is eight million, five hundred forty-seven thousand, seven hundred fifty
dollars and zero cents ($8,547,750.00). The base period of performance is from date of award through
five years thereafter.
The contractor will continue to operate the Districts State Disbursement Unit.
I am available to discuss any questions you may have regarding the proposed definitive contract. To
facilitate a response to any questions you may have, please have your staff contact Aurlie Mathieu,
Assistant Attorney General for Policy and Legislative Affairs, at 202-230-2342 or Gena Johnson,
Contracting Officer, at 202-247-6448. I look forward to favorable consideration of this contract.
Sincerely,
Karl A. Racine
Attorney General
Enclosures
________________________________________________________________________________________
400 Sixth Street NW, 10th Floor, Washington, DC 20001-5790, (202) 727-3400, Fax (202) 730-0484
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended,
D.C. Official Code 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(A) Contract Number: DCCB-2021-C-0001
Proposed Contractor: Systems & Methods, Inc.
Contract Amount: $8,547,750 (5-Year) Estimated Total
Unit and Method of Compensation: Fixed unit price per transaction
Term of Contract: Date of award through five (5) years thereafter
with one (2) two-year option period
Type of Contract: Fixed Unit Price
Source Selection Method: Request for Proposal
(B) For a contract containing option periods, the contract amount for the base period and
for each option period. If the contract amount for one or more of the option periods
differs from the amount for the base period, provide an explanation of the reason for
the difference:
Base Period Amount: $8,547.750.00 (estimated)
Option Period 1 Amount: $3,419,100.00 (estimated)
The unit rates reflect a 37% decrease from current rates.
(C) The goods or services to be provided, the methods of delivering goods or services, and
any significant program changes reflected in the proposed contract:
The contractor will continue to operate the Districts centralized State Disbursement Unit
(SDU) in support of the Districts Child Support Enforcement Program. The scope of
services includes:
a. All functions associated with the collection and disbursement process,
including handling special CSSD requests, unacceptable receipts, and
unidentified and misapplied payments);
b. Check processing and document imaging;
Council Summary - Contract No. DCCB-2021-C-0001 Page 2 of 5
c. Production and distribution of child support paper checks and electronic
payment disbursements; and
d. Electronic payment coordination via Automated Clearing House
(ACH)/Electronic Funds Transfer (EFT);
e. A customer service unit with a toll-free telephone line where custodial parties,
non-custodial parents, and employers can call to ask questions concerning
child support payment processing;
f. Employer table maintenance;
g. Collection and disbursement outreach; and
h. Production and distribution of quarterly notices to custodial parents.
(D) The selection process, including the number of offerors, the evaluation criteria, and
the evaluation results, including price, technical or quality, and past performance
components:
A pre-solicitation meeting was held to review the scope of work and to help identify
potential subcontracting opportunities. As a result of that meeting, it was determined that
a 15% subcontracting requirement was attainable. The solicitation was issued on the
open market with a 15% subcontracting requirement on September 14, 2020. The
solicitation was advertised in the Washington Post and posted on the OAG website. By
the closing date, only one proposal was received from the incumbent, Systems &
Methods, Inc. The proposal was evaluated based on the criteria in the solicitation which
included technical approach, technical expertise, past performance, and price. Systems
and Methods proposal exceeded the requirements in the solicitation.
(E) A description of any bid protest related to the award of the contract, including
whether the protest was resolved through litigation, withdrawal of the protest by the
protestor, or voluntary corrective action by the District. Include the identity of the
protestor, the grounds alleged in the protest, and any deficiencies identified by the
District as a result of the protest:
No protest was filed.
 Council Summary - Contract No. DCCB-2021-C-0001 Page 3 of 5
(F) The background and qualifications of the proposed contractor, including its
organization, financial stability, personnel, and performance on past or current
government or private sector contracts with requirements similar to those of the
proposed contract:
Systems & Methods, Inc. has been operating the Districts SDU for 15 years and has a
more than satisfactory performance history. In addition, SMI provides the same or similar
services to 15 other jurisdictions during the past 21 years. SMI clients that were contacted
reported satisfaction with the vendors performance.
(G) A summary of the subcontracting plan required under section 2346 of the Small,
Local, and Disadvantaged Business Enterprise Development and Assistance Act of
2005, as amended, D.C. Official Code 2-218.01 et seq. (Act), including a
certification that the subcontracting plan meets the minimum requirements of the Act
and the dollar volume of the portion of the contract to be subcontracted, expressed
both in total dollars and as a percentage of the total contract amount:
A partial waiver of the 50% subcontracting requirement reducing the percentage to
15% was received from DSLBD. Note that no previous contract for this service
included a subcontracting requirement.
The contractor submitted a subcontracting plan with its proposal showing compliance
with this requirement. The total amount subcontracted during the base period is
estimated at $1,282,165.
(H) Performance standards and the expected outcome of the proposed contract:
The contract contains specific performance standards by task. A Corrective Action
Plan is required in instances where the Contractor fails to achieve a performance
standard. Under the current contract, the vendor has either met or exceeded the
performance requirements.
(I) The amount and date of any expenditure of funds by the District pursuant to the
contract prior to its submission to the Council for approval:
None
(J) A certification that the proposed contract is within the appropriated budget authority
for the agency for the fiscal year and is consistent with the financial plan and budget
adopted in accordance with D.C. Official Code 47-392.01 and 47-392.02:
For the FY21 portion of the base period, a certification that the proposed contract is within
the appropriated budget authority has been provided by the Agency Fiscal Officer. Funding
for the subsequent fiscal years of the base period are anticipated but subject to future
appropriations.
(K) A certification that the contract is legally sufficient, including whether the proposed
contractor has any pending legal claims against the District:
Council Summary - Contract No. DCCB-2021-C-0001 Page 4 of 5
Legal Sufficiency Memo is attached.
(L) A certification that Citywide Clean Hands database indicates that the proposed
contractor is current with its District taxes.
Citywide clean hands certificates dated September 25, 2020 indicates that Systems &
Methods, Inc. is current with District taxes.
(M) A certification from the proposed contractor that it is current with its federal taxes, or
has worked out and is current with a payment schedule approved by the federal
government:
The proposed contractor certified that it is current with its federal taxes.
(N) The status of the proposed contractor as a certified local, small, or disadvantaged
business enterprise as defined in the Small, Local, and Disadvantaged Business
Enterprise Development and Assistance Act of 2005, as amended, D.C. Official Code
2-218.01 et seq.:
The proposed contractor is not certified by DSLBD as a local, small, or disadvantaged
business enterprise.
(O) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
None.
(P) A statement indicating whether the proposed contractor is currently debarred from
providing services or goods to the District or federal government, the dates of the
debarment, and the reasons for debarment:
The proposed contractor is not currently debarred from providing services or goods to the
District or federal governments.
(Q) Any determination and findings issues relating to the contracts formation, including
any determination and findings made under D.C. Official Code 2-352.05
(privatization contracts):
There are no issues relating to the contracts formation.
(R) Where the contract, and any amendments or modifications, if executed, will be made
available online:
Council Summary - Contract No. DCCB-2021-C-0001 Page 5 of 5
The contract award, if executed, will be made available on the Office of Attorney General
website, https://oag.dc.gov/notice-contract-awards-over-100000.
(S) Where the original solicitation, and any amendments or modifications, will be made
available online:
The solicitation and amendments are available online on the Office of Attorney Generals
website, https://oag.dc.gov/jobs-partner-opportunities/doing-business-oag.
 Government of the District of Columbia
Office of the Chief Financial Officer 1101 4th Street, SW
Office of Tax and Revenue Washington, DC 20024
Date of Notice: December 15, 2020 Notice Number: L0004554989
SYSTEMS & METHODS, INC. FEIN: **-***5569
106 WEDGEWOOD DR Case ID: 601961
CARROLLTON GA 30117-4336
CERTIFICATE OF CLEAN HANDS
As reported in the Clean Hands system, the above referenced individual/entity has no outstanding
CO
liability with the District of Columbia Office of Tax and Revenue or the Department of Employment
Services. As of the date above, the individual/entity has complied with DC Code 47-2862, therefore
this Certificate of Clean Hands is issued.
TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES
CHAPTER 28 GENERAL LICENSE
SUBCHAPTER II. CLEAN HANDS BEFORE RECEIVING A LICENSE OR PERMIT
D.C. CODE 47-2862 (2006)
PY
47-2862 PROHIBITION AGAINST ISSUANCE OF LICENSE OR PERMIT
Authorized By Marc Aronin
Chief, Collection Division
To validate this certificate, please visit MyTax.DC.gov. On the MyTax DC homepage, click the
Validate a Certificate of Clean Hands hyperlink under the Clean Hands section.
1101 4th Street SW, Suite W270, Washington, DC 20024/Phone: (202) 724-5045/MyTax.DC.gov
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
KARL A. RACINE
Commercial Division
Government Contract Section
MEMORANDUM
TO: Ronan Gulstone
Director
Office of Policy and Legislative Affairs
FROM: Robert Schildkraut
Section Chief
DATE: January 12, 2021
SUBJECT: Approval of Contract Action for Collection, Processing, and Distribution of
Child Support Payments
Contract Number: DCCB-2021-C-0001
Contractor: Systems & Methods, Inc.
Proposed Contract Amount: $8,547,7500.00
This is to Certify that this Office has reviewed the above-referenced Contract and that we have
found it to be legally sufficient conditioned upon the following:
Receipt of a Certificate of Insurance that fully complies with the requirements of the Contract.
If you have any questions in this regard, please do not hesitate to call me at (202) 724-4018.
P.P.
______________________________
Robert Schildkraut
400 6th Street NW, Suite 9100, Washington, DC 20001 (202) 727-3400
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
ATTORNEY GENERAL
KARL A. RACINE
Commercial Division
Government Contract Section
MEMORANDUM
TO: Janice Parker Watson
Contracting Officer
Office of the Attorney General
FROM: Robert Schildkraut P.P.
Section Chief
DATE: January 12, 2021
SUBJECT: Approval of Contract Action for Collection, Processing, and Distribution of
Child Support Payments
Contract Number: DCCB-2021-C-0001
Contractor: Systems & Methods, Inc.
Total Available Funding: $1,282,162.50
Proposed Contract Amount: $8,547,7500.00
__________________________________________________________________________
1. Description of Proposed Contract
The Office of the Attorney General (OAG) proposes to award contract No. DCCB-2021-C-0001
(Contract) to Systems & Methods, Inc. (SMI) to operate the State Disbursement Unit (SDI) for
the collection, processing, and distribution of child support payments.
The proposed Contract is in the not-to-exceed amount of $8,547,750.00 for a base period of 5
years with two 2-year option periods.
2. Procurement Process
On September 14, 2020, OAG advertised the request for proposals (RFP) on the open market
with a 15% subcontracting requirement on September 14, 2020. The solicitation was amended
three times: Amendment 1, issued October 2, 2020, provided responses to questions and
extended the due date for proposals to October 22, 2020; Amendment 2, issued October 8, 2020,
provided an alternate means of submitting proposal electronically due to anticipated size of
400 6th Street NW, Suite 9100, Washington, DC 20001 (202) 727-3400 -1-
proposals exceeding email capacity; and Amendment 3, issued October 13, 2020, provided
responses to questions.
One proposal, from the incumbent, SMI, was received by the closing date. The Contracting
Officer reviewed the proposal to ensure compliance with the subcontracting requirement. The
Contracting Officer then impaneled a technical evaluation panel (TEP) to review the proposal.
After receiving the findings of the TEP, the Contracting Officer provided an independent
assessment (COIA) and concurred with the findings of the TEP.
3. Legal Review
On, you requested that this office review for legal sufficiency a proposed contract package. We
reviewed the package and provided comments, which have been addressed. We have reviewed and
approve the current contract package for legal sufficiency conditioned upon:
Receipt of a Certificate of Insurance that fully complies with the requirements of the Contract.
In accordance with Section 202 of the Procurement Practices Reform Act of 2010, D.C. Law 18-
371, D.C. Official Code 2-352.02, effective April 8, 2011, the Mayor must submit to the Council
for approval this proposed contract, which is over one million dollars.
If you have any questions, please contact Virginia Carliner, Assistant Section Chief, at 202-442-
9839.
RSS
400 6th Street NW, Suite 9100, Washington, DC 20001 (202) 727-3400 -2-
 GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of the Attorney General
Legal Counsel Division
MEMORANDUM
TO: Virginia Carliner
Assistant Attorney General
Government Contracts Section
Commercial Division
FROM: Brian K. Flowers
Deputy Attorney General
Legal Counsel Division
DATE: January 11, 2021
SUBJECT: Legal Sufficiency Review of the Contract No. DCCB-2021-C-0001 with
System & Methods, Inc. Approval and Payment Authorization Emergency
Act of 2021 and the Accompanying Emergency Declaration Resolution
(AE-21-751)
______________________________________________________________________________
This responds to your request for an expedited legal sufficiency review of the Contract No.
DCCB-2021-C-0001 with System & Methods, Inc. Approval and Payment Authorization
Emergency Act of 2021 (Act) and the accompanying emergency declaration resolution
(together legislation).
Pursuant to section 451 of the District of Columbia Home Rule Act, approved December 24,
1973 (87 Stat. 803; D.C. Official Code 1-204.51), and notwithstanding the requirements of
section 202(a) of the Procurement Practices Reform Act of 2010, effective April 8, 2011 (D.C.
Law 18-371; D.C. Official Code 2-352.02(a)), the Act would approve Contract No. DCCB-2021-
C-0001 with Systems & Methods, Inc. to provide collection, processing and distribution of child
support payments. The Act would also authorize payment in the estimated total not-to-exceed
amount for the five-year period of this multiyear contract with Systems & Methods, Inc. in the
amount of $8,547,750.00.
I have attached a legal sufficiency certificate to be forwarded along with the legislation.
______________________________________________________________________________
1350 Pennsylvania Avenue, N.W., Suite 409, Washington, D.C. 20004 (202) 724-5524 (phone) (202) 724-6160(fax)
You should enclose the attached certificate, the Mayors transmittal letter, and a Fiscal Impact
Statement prepared by the Chief Financial Officer, when you forward your legislative package to
the Office of