RESPONSE_FORECLOSURE_LEGAL_SERVICES_QUESTIONS_021418.pdf

QUESTIONS

1. Please clarify within the context of reimbursable expenses whether the filing fees can be billed as soon as incurred under a non-contractual 10-day Invoice method; or whether they can only be billed at the conclusion of each case.

a. This makes a significant difference as it is our experience that we incur approximately $1,000.00 per case for filing fees which does not include any of the other costs associated with prosecuting pending foreclosure cases. Thus, such timing of payment(s) could translate into thousands and thousands of dollars outstanding (depending on the number of cases assigned) which, if not reimbursable until the conclusion of each case, would need to be carried by the Firm for months.

RESPONSE – As stated in the solicitation and in the BPA Agreement, Section 5, It states in part, “An itemized invoice shall be submitted at least monthly, in arrears”. Please refer to the BPA Agreement, Section 5 for a more detail explanation.

2. Page 23 of the Solicitation indicates that there is a Progress Reporting requirement that must be filed. We would like clarification of the information and/or documentation required therein.

RESPONSE – Please refer to page 23 and 24 of the solicitation under Progress Reporting for detailed information that should be included in the report.

3. It appears that a Contractor’s Closeout Form must be completed and filed at the conclusion of each case. Is this a condition precedent to payment of any Invoice(s) rendered? If so, what is the time period for acceptance by USDA/RD of the Contractor’s Closeout Form?

RESPONSE - If final fees are being requested, then close out form should be submitted noting all documents are completed and have been received by the Agency.

4. It appears in the fourth paragraph of Attachment 1 to the Solicitation that USDA/RD will authorize fees in excess of the standard fee in “unusually complex cases”. What does USDA/RD define and/or consider to be “unusually complex cases”?

RESPONSE - Unusually complex cases refer to cases that are considered “non routine legal services” for a specific state. The contractor will communicate with COR/CO if additional funds are needed for unusually complex cases.

5. There appears to be some confusion as to whether or not the title search fee is a reimbursable expense and/or to be included within the attorney’s fee quoted. Attachment 2 at paragraph 5.2, in the Solicitation, states that title reports are reimbursable. However, Attachment 3 at paragraph C.13(a)(1) states that title search costs are included under the attorney’s fee. Please clarify and explain.

RESPONSE – The Title Report is a reimbursable item. Paragraph C.13(a)(1) &(2) has been revised to read as follows:

(1) Fixed Price Elements: Attorney fees, normal overhead (e.g. travel, telephone, normal mailing expenses, overtime, fax, copying, and office space), are included in the Contractor's basic fixed price for legal services (the Contractor’s “Rate”).

(2) Cost Reimbursable Elements: Filing fees; title reports; asset search fees; recording fees; court costs; advertising expenses; fees for document service where required by law; sheriffs, marshal's, constable's or other similar officials’ fees; any prior liens, including real estate taxes and assessments, which must be paid under applicable State law prior to the foreclosure sale date; title insurance when required by the COR or CO; the costs of securing the collateral and ejecting occupants;

and other customary costs requisite to the action or judgment enforcement are cost reimbursable elements.

6. What is the purpose of a title policy in the event that USDA/RD is the successful purchaser at the foreclosure sale?

RESPONSE – USDA does not require issuance of a title insurance policy in favor of the government but recorded documentation identifying the government is the rightful owner.

7. Is USDA/RD requesting a flat rate for federal bankruptcy cases and/or proceedings?

a. Attachment 1 (Quote schedule) identifies the Fannie Mae Allowable Bankruptcy Attorney Fees, and the bankruptcy portion of and/or for each case significantly varies. Thus, please clarify whether or not USDA/RD wants a flat rate fee or a flat rate fee plus a fee for bankruptcy legal services?

RESPONSE – The USDA is requesting a fixed unit price for legal attorney fees (excluding filing fees or other costs) for basic, typical and customary legal services as it pertains to Chapter 7 bankruptcy or Chapter 13 bankruptcy in your specific state. As noted in the solicitation, Fannie Mae published Allowable Bankruptcy Attorney Fees will be used as a basis for evaluation.

8. If a case is reclaimed what is the percentage of reimbursement? There appears to be two different percentages between Attachment 2 and Attachment 3.

RESPONSE –Strike section in the table in Attachment 2 entitled “Deed Recorded – 33% of Billing”. It has been correct to reflect the following change:

Ordinary Process First Legal (Complaint Filing) 33% of Billing Judgement Entered 33% of Billing Deed Recorded 34% of Billing

9. Please clarify the performance requirements summary in Attachment 3 – C.14?

RESPONSE –Attachment 3 – C.14, Requirement and Standard Table; Line for Completion of Foreclosure – Non-Bankruptcy (standard) has been revised to delete the Standard timeframe language and changed to: “*See Below”, indicating to refer to the note below the table which reads:

Performance Timeframes *First Legal Actions to initial Foreclosure and reasonable diligence timeframes effective 01/01/2016 HUD.gov for Florida. https://www.hud.gov/sites/documents/16-03ML.PDF

10. What is the expected initial volume and/or ongoing volume over the first 12 months?

RESPONSE –The volume of initial cases to be processed will vary dependent on the timeframe required by the Government to assemble case file documents. The volume will be calculated prior to placing a Call Order for the services.

11. Will cases be filed in the name of the USA to allow exemption from court filing fees?

RESPONSE – Is this a specfic state statue? It is our understanding the fees for the Federal Government are not exempt from court filing fees.

12. Is the initial title search included in the attorney fee and title updates covered as a separate cost?

RESPONSES – Initial title search is a reimbursable item and any required title updates are covered as a separate cost.

13. Are there approved pleading templates or will each firm provide proposed templates for approval?

RESPONSE – If awarded a contract, the firm should propose pleading templates.

14. Is there a case management system used for communication or will all exchanges occur via secure email?

RESPONSE – Communication will occur via secure email.

15. Is work performed during the course of enforcing deficiency judgments to be included in the initial bid or considered separately?

RESPONSE – If applicable, it should be considered separately.

https://www.hud.gov/sites/documents/16-03ML.PDF