Social Security Administration, Office of Acquisition and Grants, 1710 Gwynn Oak Avenue, Baltimore, MD 21207 Attn:/Wayne McDonald

70 -- COMPUTER GENERATED STOCHASTIC SIMULATION MODEL SOL SSA-RFP-95-2528 POC Wayne McDonald tel: (410) 966-1323 The Social Security Administration is planning to award a contract for the development of a computer-generated stochastic simulation model to measure the volatility of assets/income and liabilities/expenditures of the Social Security Trust Funds. This model is to be constructed to recognize explicitly the risks of using a diversified investment policy for a portion of the Trust Funds. On the asset side, the stochastic model would account for volatility of income from several sources including payroll taxes, taxation of benefits, special issue Treasury bonds, or shares of equities and corporate bonds in passive, broad-based funds. On the liability side, the potential risks include benefit obligations and additional annual expenditures as effected by such variables as demographic and economic assumptions over selected valuation periods. The model also would allow policy makers to incorporate alternative policy options where expenditures might vary according to policy choices. The objective of this contract would be to provide policy makers with an analytical tool to model ''bad'' outcomes as well as good and neutral outcomes. SSA is seeking those sources which have the necessary high quality resources which would qualify them for a possible award. Organizations having the expertise and required capabilities are invited to submit complete information discussing such capabilities. Information furnished should include an outline of previous experience and projects. The information respondents provide shall pertain to the synopsis only: cross-referencing to material previously submitted is not recommended. No cost or pricing data is required or requested at this time. Parties interested in receiving a copy of this solicitation must submit a request, in writing, as expeditiously as possible since the solicitation will be issued without further notice after considering responses to this publication. (0123)

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