Questions_and_Answers_to_Solicitation.docx

Questions and Answers (Q&A) Escrow and Investment Fund Management Support Services Solicitation Number 1231ME18R0008

Q1: Has a contractor performed similar work to this for the government in the past?

A1: Yes, this is a recompete for a new contract vehicle.

Q2: Please provide the incumbent contract number.

A2: AG-31ME-C-13-1001

Q3: Will the Government extend the due date?

A3: Yes, response due date has been extended until March 7, 2018, @ 12:00 PM ET.

Q4: With the Accounts needing to be established on April 11, 2018. When does USDA foresee awarding the contract?

A4: Our estimated award date is on or about March 30, 2018.

Q5: What on average is the daily balance or funds setting in the account?

A5:

· At fiscal year-end (September 30th) escrow funds normally peak at approximately $135 Million. These funds would be invested in the Escrow Concentration (approximately $35.0 Million) and Borrower Custody Account (approximately $100.0 Million). But, in the 4th calendar quarter (1st fiscal quarter) large disbursements are made to various taxing authorities throughout the U.S. and the balance listed above will drop by about $45.0 Million and be at approximately $90.0 Million as of January 1st. The escrow funds would than gradually grow again until September 30th where it normally peaks.

· There is approximately $19.2 Million in the Net Income Account and that will gradually increase since the Federal Reserve has increased rates over the last 3 years and USDA – RD now has favorable interest rates on investments and thus a positive cash flow.

· The Escrow Voucher Account receives fundings from the U.S. Treasury based on the processing by two internal CSC departments. But, the funds received are swept automatically nightly to the Escrow Concentration Account. Therefore, the Escrow Voucher Account is considered a zero balance account (ZBA) where funds don’t accumulate for more than a day.

· The EFT Account is the conduit for the funding of new Single Family Housing loans by the U.S. Treasury. Also, it is considered a ZBA Account since normally at end of day there is a zero dollar balance. But, occasionally there is a reject of funds for a new loan closing where the original funding needs to be researched and an ACH or wire transfer is disbursed to move the funds to the proper party (i.e., due to a loan cancellation, loan closing delay, incorrect banking information for closing agent, etc.). Any funds remaining in the EFT Account more than one day is very unusual.

· Checks disbursed by CSC are drawn against the Escrow Disbursement Account. The presentments daily are funded by the Escrow Concentration Account. Therefore, the Account is considered a ZBA Account.

· The Emergency Disbursement Account mirrors the Escrow Disbursement Account and is only used in an emergency or COOP.