questions & answers...step 2. fc calculates salary and approximate amount of employer taxes...

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Questions & Answers

Solicitation No 19RS5019R0003

Tax Calculation for Locally Employed Staff (LE Staff) of US Mission Russia

Question 1: What system is currently used by the Office of Financial Management for keeping records?

Answer 1: All accounting reports are received from Mission Russia Financial Center (FC) in the U.S.

(Charleston) as Excel files.

Time and Attendance records (табеля) are maintained at post using specialized WinTA software, unique

for the US Department of State.

Question 2: What is the current procedure for data submission for local taxes calculation and all reports?

Answer 2:

Step 1. Mission Russia sends WinTA reports (табеля) to the FC.

Step 2. FC calculates salary and approximate amount of employer taxes (страховые взносы) and sends

reports in Excel to Mission Russia.

Step 3. Contractor calculates exact employer taxes, income taxes, generates payment documents

(платежки) and internal reports

Step 4. Mission Russia processes payments to tax authorities.

Step 5. Mission Russia sends WinTA for the following pay period along with income taxes for the

previous pay period and the adjustment of employer taxes for the previous pay period. (Same as Step 1)

Question 3: When the Contractor’s employee is working at the Embassy property, what program is used

for records?

Answer 3: The current contractor is using proprietary software, tailored to the Mission Russia needs.

Question 4: What is the procedure for submitting reports for insurance premiums? Does

Embassy directly submit reports to the relevant organizations?

Answer 4: Mission Russia does not deal directly with any relevant organizations. All reports are

submitted on Mission Russia’s behalf by the Contractor.

Question 5: How many days per week the Contractor’s representative should be present at the

Embassy? Should the representative be present daily?

Answer 5: The Contractor should plan to be present at US Embassy Moscow 5 (five) days a week. The

Contractor will be notified by COR if the representative’s presence is not needed full time.

Question 6: Should all reports, excluding the tax reports, be prepared at the Embassy territory?

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Answer 6: Yes.

Question 7: How often does the Financial Center in Charleston provide reports?

Answer 7: Payroll cycle is based on 26 pay periods. Mission Russia FC generates reports every pay

period. Each pay period is exactly two weeks.

Question 8: Who has the responsibility for making payments? Is Embassy responsible for all

payments?

Answer 8: Embassy makes payments based on the amounts and printed payment orders (платежные

поручения) provided by the Contractor. It is the Contractor’s responsibility to provide Embassy with

complete and valid payment information required for tax payments (КБК и все прочие детали

бюджетных платежей).

Question 9: Is the Contractor responsible for proofs of payment?

Answer 9: Contractor prepares standard payment documents (платежки) that Mission Russai

processes further.

Question 10: What is the cycle of tax payments’ calculation? Is it twice a month or some other

period of time?

Answer 10: Payroll cycle is based on 26 pay periods. Each pay period is two weeks. Sometimes payments

happen three times a month.

Question 11: What is the cycle of insurance premiums’ payments?

Answer 11: Currently, insurance premiums’ payments (employer taxes) are calculated and paid

every pay period. However, this procedure can be discussed and changed to a monthly basis, i.e.

processing of insurance premiums in the last pay period of a month can be considered.

Question 12: Are tax payments submitted with delays?

Answer 12: Income tax is not paid on the same day when employees are paid. Employer tax

payments meet deadlines.

Question 13: Will the information be provided about payments that are used for preparing 6NDFL

reports?

Answer 13: Information on amounts paid and dates of each payment is provided in the format

convenient for the Contractor

Question 14: How often do changes in salary occur? It relates to cases when the time sheet was

submitted and then an employee got sick.

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Answer 14: Doctors’ certificates (based on which the Contractor processes sick leaves and re-

calculates taxes) are often submitted with a delay. It may take place each pay period.

Question 15: Are there any reimbursements from social security fund? Is there any fixed amount that

social security fund should pay?

Answer 15: Last reimbursement from Social Insurance Fund was received for tax year 2015. As for

the fixed amounts that should be paid from Social Insurance Fund, this information is not available.

Question 16: In cases when any allowance was calculated and paid, should it be reimbursed by social

security fund?

Answer 16: When any allowance is calculated by the Contractor, information is provided to the

Embassy and the amount of the relevant insurance premium payment is decreased accordingly.

Question 17: Please provide more detailed description of reports that should be submitted to

Financial Center in Charleston. Is there any special form for these reports?

Answer 17: Reports should be submitted in Excel format. For each employee they include the

following information:

amount of taxes as calculated by FC

Correct amount of taxes as calculated by Contractor

Discrepancy

Source of funding (salary of each employee is paid by his employing agency – for example,

Department of State, Department of Commerce, etc., and this information is important for

Mission Russia)

Question 18: What is the total number of employees for all types of calculations?

Answer 18: The prospective offerors should use estimates in the Solicitation.

Question 19: Are there any highly qualified tax specialists in the Embassy?

Answer 19: No

Question 20: Should any calculations be provided for any citizens of Ukraine? It will have an

impact on all calculations.

Answer 20: This information is not releasable by Mission Russia. The prospective offerors

should calculate their price proposals taking into consideration that there may be foreign

citizens. All foreign citizens who may potentially work for Mission Russia will have a work

permit for the Russian Federation.

Question 21: Will the Embassy provide any information concerning Locally Employed Staff

citizenship?

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Answer 21: Yes, complete personal data which is necessary for the calculation of local taxes is

to be provided to a contractor. Also, any changes are reported as soon as available at Human

Resources office.

Question 22: Do Locally Employed Staff employees request 2NDFL forms?

Answer 22: There were around 325 requests in 2018. There were 55 requests for the period of

January 01, 2019 to present.

Question 23: What is the total number of Locally Employed Staff employees including US

Consulates General in Yekaterinburg and Vladivostok?

Answer 23: The prospective offerors should use estimates in the Solicitation

Question 24: Are there any annual leave allowances? What are the payment procedures for this

type of the allowance?

Answer 24: There are no annual leave allowances. Each employee is entitled to a fixed number

of paid hours of annual leave and can take them all at once or one hour at a time. No special

calculations are performed in either case.

Question 25: The estimated number of Locally Employed Staff is indicated as 230 employees in

Base Year Price Schedule and 900 employees in Option Year One and Option Year Two Price

Schedules. What is the correct number of Locally Employed Staff employees?

Answer 25: The estimate of the correct number of Locally Employed Staff employees for Base

Year, Option Year One and Option Year Two Price Schedules is 200 employees. This number

will be included in the revised Price Schedule which will be provided to all interested offerors.

Question 26: Line Item # 012 “Preparation and Submission of Report on length for service for

tax purposes to the Pension Fund” is included in Price Schedule for Base Year but it is not

included in Option Year One and Option Year Two Price Schedules. Will the Embassy need this

report in Option Year One and Option Year Two of the Contract?

Answer 26: The Embassy will need the report “Preparation and Submission of Report on length

for service for tax purposes to the Pension Fund” in Option Year One and Option Year Two of

the Contract. Line item # 012 will be included in Option Year One and Option Year Two revised

Price Schedules which will be provided to all interested offerors.

Question 27: What is the procedure for local taxes calculation for AAS (Anglo-American

School) and AECA (American Embassy Community Association) Locally Employed Staff?

Answer 27: The procedures for local taxes calculation for AAS (Anglo-American School) and

AECA (American Embassy Community Association) Locally Employed Staff does not fall under

the Scope of this Contract.

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Question 28: Will the Contractor get the Locally Employed Staff’s timesheets in order to include

the total number of worked days in the data base for 182 н forms?

Answer 28: Yes.

Question 29: Are there any separate subdivisions in US Embassy Moscow? What is the status of

US Consulates General Yekaterinburg and Vladivostok?

Answer 29: Mission Russia employees are divided based on the funding agency. If employees

from the Consulates are funded by the same agency, they are in the same pool with US Embassy

Moscow employees.

Question 30: Should the Contractor re-calculate the salary for the employees who will provide

any ready charges? There was information during the pre-award conference that US Embassy

does not have detailed information concerning Russian legislation about employees’ deductions.

But if employees have any deductions but they are not processed, the total calculations will not

be correct.

Answer 30: Mission Russia does not request that Contractor calculates salary amounts. They

can take the amounts provided by FC in Charleston and only calculate local taxes. Amounts of

tax adjustments are sent to FC and they adjust the tax portion in the following pay period. When

an employee submits an application for deductions (Confirmation from the tax authority also

must be attached, where required), Contractor re-calculates taxes. The Contractor also controls

a limit of cumulative earnings when an employee is entitled for each kind of deductions

(personal, social, property ones).

Question 31: What is the number and legal status of foreign citizens who are Locally Employed

Staff members?

Answer 31: This information is not releasable by Mission Russia. The prospective offerors

should calculate their price proposals taking into consideration that there may be foreign

citizens. All foreign citizens who may potentially work for Mission Russia will have a work

permit for the Russian Federation.

Question 32: What is the number of cases of sick leave, Maternity leave and business trips in

calendar year 2018?

Answer 32: In calendar year 2018, 150 doctor’s certificates were registered. This number

includes 5 cases of maternity leave (pregnancy and delivery).

335 travel vouchers were processed.

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 Scope of Services

The Contractor shall provide the advisory and assistance services for the Embassy of the

United States of America in Moscow, Russian Federation, with regard to payroll and tax

withdrawal requirements implemented by the Embassy on behalf of its Russian employees.

Services required under this contract are described in Section C and Exhibits in Section J. The

groups of employees who shall be receiving these services are listed in paragraph C.16.

B.1.1. OFFERS AND PAYMENT IN U.S. DOLLARS - U.S. firms are eligible to be paid in

U.S. Dollars. U.S. firms desiring to be paid in U.S. dollars should submit their offers in U.S.

dollars. A U.S. firm is defined as a company which operates as a corporation incorporated under

the laws of a state within the United States.

FOREIGN FIRMS - Any firm, which is not a U.S. firm, is a foreign firm. Any firm that does not

meet the above definition of U.S. firm shall submit its prices and receive payment in local

currency.

B.2 Type of Contract

The contract type shall be a fixed price requirements type contract under which will be issued

firm, fixed-price task orders. The fixed prices for advisory and assistance services are as follows:

B.3 Prices for Services. Prices for services shall include all labor, material, overhead and

profit. Value Added Tax (VAT) shall be specified on a separate line item, if applicable.

B.3.1 BASE YEAR OF THE CONTRACT STARTING ON THE DATE STATED IN

THE NOTICE TO PROCEED AND CONTINUING FOR A PERIOD OF 12 MONTHS.

Line Item 001:

Estimated Number Price Total

of employees per Person Annual

Estimated

Price

for all

Employees

Preparation of all documentation necessary 5 _______ _________

to register new Russian employees

of the U.S. Embassy Moscow and two constituent posts

located in Vladivostok and Yekaterinburg

with the Pension Fund (See Section C.4 for details).

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A. Total Price for Line Item #001 for Base Year (Price per person x 36): ___________

Line Item 002:


of employees per Person Estimated

per Month Price per

Month

for all

Employees

Calculate monthly 200 _______ ___________

contributions to three Social Security Funds

(Medical Insurance Fund, Social Insurance Fund and Pension Fund) and Trauma contributions to

be paid by the U.S. Government as an Employer

(See Section C.5 for details).

B. Total Price for Line Item #002 for Base Year (Total Estimated Price per Month x 12): ________

Line Item 003:



per Month Price per

Month

for all

Employees

Calculate monthly income taxes 200 _______ __________

for all Russian employees based on

salary information and net amounts

payable to each employee (See Section C.6 for details).

C. Total Price for Line Item # 003 for Base Year (Total Estimated Price per Month x 12): ___________

Line Item 004 :

Estimated Number Price for Total

of Consultations One 60- Estimated

minute Price

Consultation

Consultation services for Embassy 24 _______ __________

Personnel with duration 60 minutes each

Consultation (See Section C.7 for details).

D. Subtotal for Line Item #004 for Base Year (Consultation Price x 24): ____________

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Line Item 005:

Number Unit Total

of Submissions Price Price

Preparation and submission 26 ________ _________

of eight (8) management/financial

biweekly Reports for the internal use

of the U.S. Embassy (see Section C.8 for details).

E. Total Price for Line Item #005 for Base Year (Unit Price x 26): ___________

Line Item 006:

Number Unit Total


Preparation and submission 12 ______ _________

of one (1)

Monthly Report on number of insured employees to Tax Authorities

(see Section C.9 for details).

F. Total Price for Line Item #006 for Base Year (Unit Price x 12): _________

Line Item 007

Number Unit Total


Preparation and submission

of four (4) Quarterly Reports 4 ________ __________

to the Social Insurance Fund

and Tax Authorities


G. Subtotal for Line Item #007 for Base Year (Unit Price x 4): _________

Line Item 008


of one (1) management/financial

Annual Report for the internal use


H. Subtotal for Line Item #008 for Base Year (Unit Price x 1): _________

Line Item 009: Estimated

Number Unit Total

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Preparation and Submission 200 _______ _________

of annual employees salary

Statements (est. 200) to the Russian Ta x

Inspectorate (Form №2-NDFL). See Section C.12 for details.

I. Subtotal for Line Item #009 for Base Year (230 x Unit Price): _________

Line Item 010:

Number Unit Total


Preparation and Submission of 1 _______ _________

One (1) annual Report on Average Number of Employees

to the Russian Tax Inspectorate.

See Section C.13 for details

J. Subtotal for Line Item #010 for Base Year (Unit Price x 1): _________

Line Item 011:

Preparation and Submission 1 _________ _________

of Report in Confirmation of the main type of

Activity to the Social Insurance Fund. See Section C.14 for details.

K. Subtotal for Line Item #011 for Base Year (Unit Price x 1): _________

Line Item 012:


of Report on length for service for tax purposes (о страховом стаже) to the Pension Fund. See

Section C.15 for details.

L. Subtotal for Line Item #012 for Base Year (Unit Price x 1): _________

Line item 013

Registration of newly arrived 1 _________ _________

American officers authorized to sign

reports submitted to tax authorities

M. Subtotal for Line Item #013 for Base Year (Unit Price x 1) _________

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TOTAL PRICE FOR BASE YEAR

(sum of A+B+C+D+E+F+G+H+I+J+K+L+M): _____________

B.3.2. OPTION YEAR ONE OF CONTRACT COMMENCING THE NEXT DAY UPON

EXPIRATION OF BASE YEAR AND CONTINUING FOR A PERIOD OF 12 MONTHS

Line Item 001:



Estimated

Price

for all

Employees






A. Total Price for Line Item #001 for Option Year One (Price per person x 36): ________

Line Item 002:



per Month Price per

Month

for all

Employees






B. Total Price for Line Item #002 for Option Year One (Total Estimated Price per Month x 12): ______

Line Item 003:



per Month Price per

Month

for all

Employees

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C. Total Price for Line Item # 003 for Option Year One (Total Estimated Price per Month x 12): ______

Line Item 004 :



minute Price

Consultation




D. Subtotal for Line Item #004 for Option Year One (Consultation Price x 24): __________

Line Item 005:

Number Unit Total


Preparation and submission 26 ________ ____________

of seven (7) management/financial



E. Total Price for Line Item #005 for Option Year One (Unit Price x 26): ___________

Line Item 006:

Number Unit Total




Monthly Report for the internal use


F. Total Price for Line Item #006 for Option Year One (Unit Price x 12): _________

Line Item 007

Number Unit Total


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and Pension Fund


G. Subtotal for Line Item #007 for Option Year One (Unit Price x 4): _________

Line Item 008





H. Subtotal for Line Item #008 for Option Year One (Unit Price x 1): ____________


Number Unit Total




Statements (est. 200) to the Russian Tax


I. Subtotal for Line Item #009 for Option Year One (900 x Unit Price): _________

Line Item 010:

Number Unit Total






J. Subtotal for Line Item #010 for Option Year One (Unit Price x 1): _________

Line Item 011:




K. Subtotal for Line Item #011 for Option Year One (Unit Price x 1): _________

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Line Item 012:




L. Subtotal for Line Item #012 for Option Year One (Unit Price x 1):

Line item 013




M. Subtotal for Line Item #013 for Option Year One (Unit Price x 1) _________

TOTAL PRICE FOR OPTION YEAR ONE

(sum of A+B+C+D+E+F+G+H+I+J+K+L+M): _______________

B.3.3. OPTION YEAR TWO OF CONTRACT COMMENCING THE NEXT DAY UPON

EXPIRATION OF OPTION YEAR ONE AND CONTINUING FOR A PERIOD OF 12

MONTHS

Line Item 001:



Estimated

Price

for all

Employees






A. Total Price for Line Item #001 for Option Year Two (Price per person x 36): ________

Line Item 002:



per Month Price per

Month

for all

Employees

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B. Total Price for Line Item #002 for Option Year Two (Total Estimated Price per Month x 12): ______

Line Item 003:



per Month Price per

Month

for all

Employees





C. Total Price for Line Item # 003 for Option Year Two (Total Estimated Price per Month x 12): ______

Line Item 004 :



minute Price

Consultation




D. Subtotal for Line Item #004 for Option Year Two (Consultation Price x 24): __________

Line Item 005:

Number Unit Total



of seven (7) management/financial



E. Total Price for Line Item #005 for Option Year Two (Unit Price x 26): ___________

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Line Item 006:

Number Unit Total


Preparation and submission 12 ______ _________


Monthly Report for the internal use


F. Total Price for Line Item #006 for Option Year Two (Unit Price x 12): _________

Line Item 007

Number Unit Total





and Pension Fund


G. Subtotal for Line Item #007 for Option Year Two (Unit Price x 4): _________

Line Item 008





H. Subtotal for Line Item #008 for Option Year Two (Unit Price x 1): ____________


Number Unit Total




Statements (est. 200) to the Russian Tax


I. Subtotal for Line Item #009 for Option Year Two (900 x Unit Price): _________

Line Item 010:

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Number Unit Total






J. Subtotal for Line Item #010 for Option Year Two (Unit Price x 1): _________

Line Item 011:




K. Subtotal for Line Item #011 for Option Year Two (Unit Price x 1): ________

Line Item 012:




L. Subtotal for Line Item #012 for Option Year TWO (Unit Price x 1):

Line item 013




M. Subtotal for Line Item #013 for Option Year TWO (Unit Price x 1) _________

TOTAL PRICE FOR OPTION YEAR TWO

(sum of A+B+C+D+E+F+G+H+I+J+K+L+M): ___________

GRAND TOTAL PRICE FOR BASE YEAR AND TWO OPTION YEARS: _________

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