09 - Pricing Template Instructions v2.pdf

Attachment 09 – Pricing Template Instructions v2

The pricing template has two sections. The first section, Section A, contains pricing for three sub-sections: A1 - Labor Loan Servicing per Borrower per Month, A2 - Technology Loan Servicing per borrower per month, and A3 - Fulfillment of Mail and Imaging services. Offerors shall provide pricing assumptions made for all operating requirements, sub-requirements, and pricing methodologies., etc. inclusive of any volume as part of the Offerors’ Supplemental Price Narrative.

The second section, Section B Separate Pricing, contains individual services that require pricing separate and distinct from Section A. The goal of the pricing template is to create a common process for proposals for a fair and equitable review. Below is the detailed information for each pricing section.

Each pricing task in the pricing template is listed as either Common Pricing or Not Common Pricing. If there are pricing items listed in the “Other” section, FSA will negotiate those costs and determine if it will be common pricing. Common Pricing is a firm fixed price per unit for Servicing requirements that will be identical for both ISS Contractors under all Task Orders issued under this IDIQ.

The tab labeled Borrower Forecast is the Government’s estimate for total volume of borrowers by borrower status. This shall be used for the basis for estimates where necessary. These volumes are estimates that will be used for evaluation purposes only. This information does not guarantee the level of work or volume in the future.

Section A Pricing:

Subsection A1 – Labor Loan Servicing is the per borrower cost per month for regular servicing which shall include the requirements from Attachment “01 – Business Operations Servicing Requirements”, unless specifically called out in the instructions for separate pricing (Section B Separate Pricing). Offerors must propose a cost per borrower per month based on the status of the borrower, which are listed in the template.

1. The requirements for this section are in Attachment “01 – Business Operations Servicing Requirements”

2. Subsection A1 applies to all Active borrowers on the Contractor’s system

a. Active borrowers are any borrowers with a balance due on their account.

3. Cohort Default Rate (CDR) Challenges, Pre-Transfer Notifications, Borrower Based Repayment Quarterly reporting, Income Driven Repayment (IDR) Application processing, Borrower Defense processing, Guaranty Agency Rehab processing, and Personal Identity Verification (PIV) processing are all part of this pricing model and are not broken out separately. If an Offeror asserts other costs are warranted, the Offeror must separately identify those costs in the Other Costs section of the template. Offerors must identify the subsection the “Other Costs” applies to in the Pricing Template. Offerors must also include an explanation and substantiation of the need for these costs in the Supplemental Price Narrative.

Subsection A2 – Technology Loan Servicing is for technology costs for borrower loan servicing. This will be a per borrower per month costs associated with:

1. Operating and maintaining the system

2. Completing all the financial requirements as listed in Attachment “02 – Financial

Technical Requirements.xlsx v2” and associated attachments

3. Completing all Business Operations requirements contained in Attachment “01 –

Business Operations Servicing Requirements v2” under “Tab 28000 Payment and Refund Processing” and “Tab 29000 Manual Adjustment Processing” and associated attachments/documents.

4. Completing the Security Requirements from Attachment “03 – IRPE Elements v

5.0.2 incl Monitoring ISS Tailored v2”.

5. For those borrowers that are discharged this will be the only fee per borrower that will be paid. For example, a Total and Permanent Disability (TPD) borrower that has their application processed is automatically discharged. For the 3-year waiting period this is the only charge allowed for that borrower.

Within this section is a cost per application and booking of a loan for the Loan Consolidation Origination and Disbursement process. The requirements for this task are in Attachment “01 – Business Operations Servicing Requirements v2” under “Tab 15000 Loan Consolidation”. The costs shall include loaded labor hours for consolidation. If an Offeror asserts other costs are warranted, the Offeror must separately identify those costs in the Other Costs section of the template. Offerors must identify the subsection the “Other Costs” applies to in the Pricing Template. Offerors must also and include an explanation and substantiation of the need for these costs in the Supplemental Price Narrative.

Subsection A3 – Fulfillment of Mail and Imaging Services are costs related to the processing and fulfillment of mail and imaging necessary to support Servicing. Please note there is a separate pricing section for Image Repository and Data Storage implementation and the monthly, or per image cost, for ongoing maintenance included in Section B. The Fulfillment and Imaging section is broken out by:

1. Outbound postage cost per letter

2. Cost per page printed and Imaging

3. Imaging, Indexing and Storage per mail and other electronic documents

If an Offeror asserts other costs are warranted, the Offeror must separately identify those costs in the Other Costs section of the template and include an explanation and substantiation of the need for these costs in the Supplemental Price Narrative.

Section B Separate Pricing:

Section B contains pricing components, which have been separated from Section A pricing components. The requirements that are referenced are included to ensure all Contractors are pricing the same requirements.

1. Image Repository and Access – Offerors must propose a total cost to implement the Image Repository and Access solution. To evaluate the costs, the Offeror shall include a breakdown of hours by labor category, system costs and any conversion costs that would be associated with the implementation.

a. The requirements related to this section are in Attachment “01A – Specialty Requirements v2” under Tab 11000, Requirements 11009.000-11009.050.

b. Offerors shall propose a cost per image per month for the ongoing operation and maintenance of the Image Repository and Access.

2. Data Storage and Access / Payment Support – Offerors must propose a total cost to implement (convert, and process DLSS/ACES/decommissioned servicer data) the Data Storage Access and Payment Support solution. To evaluate the costs, Offerors shall include a breakdown of hours by labor category, system costs and any conversion costs that would be associated with the implementation.

a. The requirements related to this section are below

i. Attachment “01A – Specialty Requirements v2” under Tab 11000, Requirements 11001.000-11001.040.

ii. Attachment “01A – Specialty Requirements v2” under Tab 29000, Requirements 29011-29011.040.

b. Payment Support implementation – The requirements for this section are in

Attachment “01A – Specialty Requirements v2” under Tab 29000, Requirements - 29011-29011.040.

i. The Offeror shall include labor categories and costs for the implementation of this task

c. For the Data Storage please use the follow list for costing:

i. Monthly Paid in Full (PIF) storage and access

ii. Monthly PIF Account Support

iii. Cost per call for call support

iv. Monthly ad-hoc reporting requests

3. Legacy Loan Consolidation implementation – The requirements for this section are in Attachment “01A – Specialty Requirements v2” under Tab 29000, Requirements 29007.000-29007.123 and 29008.000-29008.070.

a. The Offeror shall include labor categories and costs for the implementation of this task.

b. Offerors shall propose a per adjustment cost for ongoing support of the requirements.

4. TEACH implementation – The requirements for this section are in Attachment “01A – Specialty Requirements v2” under Tab 34000. Offerors shall include labor categories and labor costs along with system costs for the implementation of this task.

a. The Offeror shall include labor categories and costs for the implementation of this task.

b. Offerors shall propose a per recipient cost for ongoing support of the requirements.

5. Total and Permanent Disability (TPD) implementation – The requirements for this section are in Attachment “01A – Specialty Requirements v2” under Tab 39000. The Contractor shall include labor categories and labor costs along with system costs for the implementation of this task.

a. Pricing for this is only the implementation of the system requirements.

b. Offerors shall include any ongoing monthly costs in the proposed Comprehensive

Technology per borrower charge in Subsection A2.

6. Public Student Loan Forgiveness (PSLF) implementation –The requirements for this section are in Attachment “01A – Specialty Requirements v2” under Tabs 35000, 35000a and 35000b. Offerors shall include labor categories and labor costs along with system costs for the implementation of this task

a. The first cost is pricing for the implementation of PSLF.

b. Due to PSLF requirements the Government has set a specific set of monthly costs that shall be priced by the Offeror. Offerors may add other costs, in the Other Costs section of the Pricing Template, but must justify those the additional categories.

The Government is not obligated to accept any additional categories in its establishment of common pricing.

i. PSLF Approval/Denial (Employer Verification)

ii. Approved Application

iii. Denied Application

iv. Write off/Complete Application

v. PSLF Dispute processing

vi. PSLF Payment Review

vii. PSLF IDR Processing

viii. PSLF Help Requests

ix. PSLF Application Hold processing

7. IRPE Costs

a. Attachment “03 – IRPE Elements V 5.0.2 incl Monitoring ISS Tailored v2”, the total implementation costs for all IRPE elements, inclusive of requirements in “Appendix IRPE–G Cybersecurity Requirements”, shall be included in this line item. Offerors shall include costs per element and/or requirements in the Supplemental Price Narrative. Offerors shall ensure that this Supplemental Price Narrative includes a separate breakout of the costs associated with executing any work necessary to meet the requirements identified in Appendix IRPE-G Cybersecurity Requirements.

b. FSA will supply the MTIPS Solution which addresses all internet traffic and must be used for all access into the ISS Solution. Routers will be provided by FSA to the ISS Contractors during the MTIPS Installation.

8. BPO Agent Access Fees

a. License fee for BPO Agent Access to the ISS System and CRM Tools – This fee is for each BPO Agent to access and use the ISS System and the CRM tools that will allow BPO Contractors to update borrower data.

b. License fee for the ISS Call Management System – BPO Contractors will be using the ISS Call Management system to receive and answer calls. This cost shall include all call reporting by Contractor as well as total call reporting.

9. Training (e.g., for BPO trainers) – This section requires a per trainer per hourly rate, to train staff or trainers, as designated by FSA, to be able to access and utilized the loan serving technology and systems. Training includes but is not limited to:

a. Front end processing

b. Any special system processing, Tools, and Documentation

c. Web Training, if available

10. Other Costs (Requires Substantiation) – If there are other costs an Offeror believes are NOT included in Sections A and B, the Offeror must explain the costs and substantiate why the cost is not included in the template in the Offerors’ Supplemental Price Narrative.

Offerors may add additional rows as necessary to this section.