1262KZ18Q0001_SOLICITATION_WITH_SF_1449.pdf

SEE ADDENDUMIS CHECKED

CODE 18a. PAYMENT WILL BE MADE BY

CODE

FACILITYCODE

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

OFFEROR

RD-KS-1262

TOPEKA KS 66604

SUITE 100

1303 SW First American Place

USDA, RURAL DEVELOPMENT

CODE 16. ADMINISTERED BYCODE

X

X

531320

SIZE STANDARD:

100% FOR:SET ASIDE:UNRESTRICTED ORRD-KS-1262

RFPIFB

10. THIS ACQUISITION ISCODE

RFQ

14. METHOD OF SOLICITATION

13b. RATING

NAICS:

SMALL BUSINESS

02/26/2018 1500 CT

01/26/2018

785-271-2706 x

CHARLES BANKS

(No collect calls)

INFORMATION CALL:

FOR SOLICITATION 8. OFFER DUE DATE/LOCAL TIMEb. TELEPHONE NUMBERa. NAME

4. ORDER NUMBER3. AWARD/ 6. SOLICITATION

1262KZ18Q0001

5. SOLICITATION NUMBER

1. REQUISITION NUMBER PAGE OF

1 28

SOLICITATION FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

TELEPHONE NO.

17a. CONTRACTOR/

15. DELIVER TO

TOPEKA KS 66604

SUITE 100

1303 SW First American Place

9. ISSUED BY

7.

2. CONTRACT NO.

EFFECTIVE DATE

$7.50

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

ISSUE DATE

DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

11.

SEE SCHEDULE

12. DISCOUNT TERMS

THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13a.

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

8(A)

USDA, RURAL DEVELOPMENT

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

SINGLE FAMILY HOUSING PROPERTY APPRAISALS AS

DESCRIBED IN ATTACHED STATEMENT OF WORK.

DUNS Number:

Period of Performance: 04/01/2018 to 03/31/2021

(Use Reverse and/or Attach Additional Sheets as Necessary)

HEREIN, IS ACCEPTED AS TO ITEMS:

DATED

CHARLES BANKS

. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ARE

ARE

31c. DATE SIGNED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print)

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED.

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

OFFER

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

ARE NOT ATTACHED.

ARE NOT ATTACHED.

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

30b. NAME AND TITLE OF SIGNER (Type or print)

30a. SIGNATURE OF OFFEROR/CONTRACTOR

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

25. ACCOUNTING AND APPROPRIATION DATA

29. AWARD OF CONTRACT:

REF.

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32c. DATE 32b. SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

40. PAID BY39. S/R VOUCHER NUMBER38. S/R ACCOUNT NUMBER

37. CHECK NUMBER

FINALPARTIAL

36. PAYMENT

FINALPARTIAL

35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER33. SHIP NUMBER

COMPLETE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

42d. TOTAL CONTAINERS42c. DATE REC'D (YY/MM/DD)

42b. RECEIVED AT (Location)

42a. RECEIVED BY (Print)

41c. DATE41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

STANDARD FORM 1449 (REV. 2/2012) BACK

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 1 of 18

U. S. DEPARTMENT OF AGRICULTURE

RURAL DEVELOPMENT

1303 SW FIRST AMERICAN PLACE

SUITE 100

TOPEKA, KANSAS 66604

BPA SOLICITATION

BACKGROUND: USDA Rural Development (RD) provides direct loans to eligible applicants for single family housing (SFH) residential property. To support this program, RD requires qualified appraisers to provide appraisal services, in accordance with 7 Code of Federal Regulations (CFR) Part 3550, at https://www.rd.usda.gov/files/3550appendix01.pdf

OBJECTIVE: High quality appraisals to determine market value of SFH residential properties are key to ensuring the Agency obtains adequate security for its loans.

DESCRIPTION OF AGREEMENT. This agreement is for the performance of appraisal services for the purpose of determining the market value of single family housing residential property. The agreement also includes provision for a second inspection to verify, and report via a Satisfactory Completion Certificate, if required repairs have been completed in a workman like manner. The supplier shall defend the appraisal in court or in the USDA Rural Development appeals process. Periodically, an appraiser may be required to accompany a government Designated Review Appraiser on a field review.

The supplier shall perform Single Family Appraisal Services if and when requested. Not all appraisals will require a Satisfactory Completion Certificate. Services will be completed in accordance with the specifications stated herein. This Blanket Purchase Agreement (BPA) for Single Family Housing Appraisal services will become effective April 1, 2018 and continue through September 30, 2018, and may be renewed three times to continue through March 31, 2021. The government understands that because of the duration of performance that vendors may need to adjust their fees quoted for this BPA at the time or renewal. To account for this, the government will request an updated fee quote from all vendors awarded contracts for this BPA, no later than August 31 of each year. Should the revised fee be agreed too, the government will advise vendors of the approved fee no later than October 1 for each renewal and the revised fee(s) for appraisal services will be become effective for orders placed during the renewal period.

EXTENT OF OBLIGATION. The Government is obligated only to the extent of authorized purchases actually made under this agreement and is not obligated to place orders. BPA holder is not obligated to accept orders and shall accept or refuse orders by 12 Noon the following work day. The vendor is contractually obligated to provide the services under the terms of this agreement once they accept an order. The vendor may not be compensated under this agreement for services performed outside the scope of this agreement.

PRICING. Appraisal, and completion certification, services will be provided at the prices identified on Standard Form 1449, Solicitation/ Contract/Order for Commercial Items which is the award document for this BPA. All BPA pricing shall be as low as or lower than pricing offered to the most favored customer for comparable services under similar terms and conditions, in addition to any trade or prompt payment discounts offered. Unless specifically exempted, the prices quoted shall include Federal, State and local taxes. The https://www.rd.usda.gov/files/3550appendix01.pdf

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 2 of 18 services furnished shall be covered by the most favorable commercial warranty the vendor provides to the general public for such services.

Expert Witness Testimony: In the event an appraiser is requested by USDA Rural Development to present testimony at any hearing or legal proceeding within 2 years of a completed appraisal date, reimbursement will be made at the following hourly rates. An hourly rate of 25% of the cost of the appraisal for the time actually spent in testimony (minimum of 2 hours). An hourly rate of 10% of the appraisal cost for preparation time.

Preparation time will only be reimbursed if approved in advance by USDA Rural Development. An hourly rate of 5% of the appraisal cost for time spent in travel. Reimbursement will also be made for transportation, lodging and meals at the rates applicable to government personnel.

Field Review of Appraisal: In the event an appraiser is requested by USDA Rural Development to accompany a government designated Review Appraiser, services will be reimbursed as follows. An hourly rate equal to 10% of the appraisal cost will be paid for the time the Review Appraiser and the BPA Appraiser meet. An hourly rate equal to 5% of the appraisal cost will be paid for travel time to and from the designated meeting location. Reimbursement will also be made for transportation, lodging and meals at the rates applicable to government personnel.

PURCHASE LIMITATION. The total dollar amount of this BPA will not exceed $140,000.00. The initial period of this BPA from April 1, 2018 to September 30, 2018 will not exceed $30,000. The first renewal period from October 1, 2018 to September 30, 2019 will not exceed $40,000. The second renewal period from October 1, 2019 to September 30, 2020 will not exceed $40,000. The third renewal period from October 1, 2020 to March 31, 2021 will not exceed $30,000.

DELIVERY ORDER TICKET / INVOICE. USDA Loan Technicians/Specialists will contact the appraiser and provide a brief description of the assignment and the requested delivery date to check availability. The appraiser will indicate whether they are available or not for the assignment. If the appraiser is available, the Contracting Officer will prepare a BPA Call and Delivery Order Ticket / Invoice (Exhibit B) and issue it to the appraiser with the pertinent documentation needed to perform the services.

All completed appraisals must be submitted to the ordering office with a signed copy of the Delivery Order Ticket / Invoice as the first page. The Delivery Order Ticket / Invoice contains the following information:

(1) firm's name, (2) BPA number & call order number, (3) date services ordered, (4) services furnished, (5) quantity, unit price, and extension of each item, applicable discounts and (6) date services completed.

USDA Rural Development authorized field office staff will verify appraisals have been received and accepted, sign the Delivery Order Ticket / Invoice and immediately forward it to Contracting.

USDA Rural Development authorized field office staff will verify completion certificates have been received and accepted, sign the Satisfactory Completion Certificate and immediately forward it to Contracting.

INVOICES. USDA Rural Development requests standardized invoice naming/numbering. Use of the Delivery Order Ticket / Invoice is required.

STATEMENT OF WORK (SOW) FOR APPRAISAL SERVICES AND APPRAISAL INSTRUCTIONS

SINGLE FAMILY HOUSING RESIDENTIAL PROPERTY

1. REQUIREMENTS FOR APPRAISALS:

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 3 of 18

A. The appraiser(s) signing the appraisal must be currently licensed in the state where the subject property is located as a Certified General, Certified Residential, or Licensed Appraiser. The appraiser shall be identified as active on the Appraisal Subcommittee website (www.asc.gov) at time of award and maintain professional errors and omissions insurance coverage in accordance with local and state government requirements. The appraiser shall have the specialized knowledge and experience necessary to be competent to appraise single-family housing.

A trainee may sign the report. If a trainee signs the report, the trainee’s registration shall be provided to RD and the qualified appraiser shall sign as Supervisory Appraiser and personally inspect the subject property.

If an appraisal assignment is awarded to a contractor not holding an appraisal license, the awarded contractor may subcontract the appraisal assignment (or any part of it) to a qualified appraiser as outlined above with prior written consent of the RD Contracting Officer (CO). In the event of subcontracting the assignment, the contractor must also adhere to any licensure requirements imposed by any entity having jurisdiction in the state where the property is located.

If required by RD, the appraiser(s) signing the report shall defend the appraisal in court or in the RD appeals process. Cost associated with the defense of the appraisal, when necessary, will be negotiated under a separate purchase order/contract.

Except where noted herein, the contractor or appraiser shall provide all facilities, materials, supplies, tools, equipment, personnel, and travel to accomplish the performance of the requirements of this agreement.

B. The appraisal must comply with the current edition of the Uniform Standards of Professional Practice (USPAP) and agency requirements as described in Handbook-1-3550 https://www.rd.usda.gov/files/hb-1-3550.pdf , Handbook-2-3550, Chapter 2, https://www.rd.usda.gov/files/3550-2chapter02.pdf , together with 7 CFR 3550 as applicable to all additional appraisal requirements https://www.rd.usda.gov/files/3550appendix01.pdf, and Rural Development Instruction 1922-A, https://www.rd.usda.gov/files/1922a.pdf .

C. All appraisals for RD will provide market value based on the following market value definition used by federally insured financial institutions; Title XI of the Financial Institutions Reform and Recovery Enforcement Act of 1989; Definition of Market Value (12 U.S.C. 1818, 1819):

Definition of Market Value:

Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) Buyer and seller are typically motivated;

(2) Both parties are well informed or well advised, and acting in what they consider their own best interests;

(3) A reasonable time is allowed for exposure in the open market;

(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 4 of 18

(5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

D. The appraisal must be completed using the most recent version one of the following forms:

Fannie Mae Form 1004/Freddie Mac Form 70, "Uniform Residential Appraisal Report," for all one-unit, single family dwellings; Fannie Mae Form 1004C/Freddie Mac Form 70B, “Manufactured Home Appraisal Report,” for all manufactured homes; Fannie Mae Form 1073/Freddie Mac Form 465, “Individual Condominium Unit Appraisal Report” for all individual condominium units; Fannie Mae Form 2055/Freddie Mac Form 2055, "Exterior-Only Inspection Residential Appraisal Report," for all one-unit, single family dwellings for all properties when there is no visual inspection of the interior required or requested by RD; or Fannie Mae Form 1004D/Freddie Mac Form 442, “Appraisal Update and/or Completion Report”.

2. TYPES OF VALUES:

Depending on the purpose of the appraisal, an appraiser will either determine the estimated market value of the property in its current condition (the “as-is” value) or; determine the estimated market value of the property, based on completion of construction in accordance with plans and specifications, or completion of rehabilitation based on a list of repairs to be considered (the “as-improved” value). https://www.rd.usda.gov/files/3550- 1chapter05.pdf (Handbook-1-3550, Chapter 5 (5.15))

A. As-Improved value (Value Subject to Completion) - Loans for planned new construction or rehabilitation require an estimate of the “as-improved” value considering all construction / repairs /rehabilitation are complete.

B. As-Is value – Loans for existing dwellings (including a new construction dwelling that has been completed at the time of appraisal) involving no repairs require an as-is value. As-is value appraisals may also be needed to support loan servicing actions or to determine a disposition plan for real estate owned (REO) properties.

3. SPECIAL INSTRUCTIONS:

A. Loan Servicing Appraisal - In the event the appraiser is requested to complete an appraisal for a servicing action such as foreclosure, short sale, deed-in-lieu, etc., an appraisal reflecting the market value of the property in its “as-is” condition is necessary for RD use.

Typically, when a property in foreclosure is occupied, the appraiser will not be required to gain access for a visual inspection of the interior of the subject property. In this case, the appraiser must complete the appraisal report on the Fannie Mae Form 2055/Freddie Mac Form 2055, “Exterior-Only Inspection Residential Appraisal Report” unless specifically instructed otherwise by RD.

The report must include an extraordinary assumption that there was no visual inspection to the interior and details of the sources being used for the interior components and the assumed condition of the interior. https://www.rd.usda.gov/files/3550-1chapter13.pdf (Handbook-1-3550, Chapter 13 (13.17) (C) (3).

B. Subsidy Recapture Appraisal – The appraiser must complete an as-is market value appraisal.

The appraiser must provide the estimated contributory value of all capital improvements added to the subject property from original date of purchase as specified / indicated by the owner. In the event the appraiser cannot determine from local records what capital improvements may have been added, the appraiser may contact the Contracting Officer’s Representative (COR) to determine if original loan records detail historic property conditions. Each capital improvement must be noted individually. The

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 5 of 18 appraiser must provide the estimated contributory amount of market value, if any, for each capital improvement item. Items considered to be general maintenance are not considered to be capital improvements. Values shall be supported by market evidence or other valuation methods deemed appropriate by the appraiser.

https://www.rd.usda.gov/files/3550-2chapter02.pdf (Handbook-2-3550, Chapter2 (2.23) (8)

4. APPRAISAL METHODOLOGY

RD requires appraisers to use the following appraisal methods to arrive at a final estimate of value.

A. Sales Comparison Approach: Under this method, the appraiser uses the recent sales prices of properties that are comparable in location and characteristics to the subject property in order to estimate a market value for the property. The appraiser must use at a minimum three (3) comparable closed sales of single family residential properties that sold in the previous 12 month period unless the appraiser provides documentation that such comparable transactions are not available in the area. Comparable sales should be located as close as possible to the subject dwelling, from within the competitive market area, and should be the most comparable available for purposes of valuation.

B. Cost Approach: This method is specified in Handbook 1-3550, Chapter 5, found at this web address, http://www.rd.usda.gov/files/3550-1chapter05.pdf. For all proposed construction or all homes having an age of one year or less, RD requires that the appraiser develop, report and reconcile the cost approach to value. On homes over one year of age, the appraiser should determine whether the cost approach is relevant or necessary to determine a valid opinion of market value. This determination must be developed and reported in accordance with the USPAP.

Under this method, the appraiser derives an estimate of value using replacement cost estimates for the improvements, less depreciation of all forms, and then adding an estimate of the site value. The appraiser will identify the source of cost estimates, such as Marshall and Swift Residential Cost service, local builder’s cost data or other national publication for residential costs, used in the cost approach. The methodology used to estimate depreciation must be stated in the report.

Properties in remote rural areas, on tribal lands (American Native and Alaskan Native), areas with a lack of market activity, or those representing a leasehold interest, where it may be difficult to obtain adequate comparable sales to be used for comparative purposes in order to appraise a property. In these areas, the sales comparison approach is not required. Instead, Marshall & Swift Form 1007, Square Foot Appraisal Form, must be used.

Remote rural areas are identified by RD and are defined as areas lacking sufficient market activity and having the following characteristics:

• Scattered population;

• Low density of residences

C. Income Approach: Under this method, the appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value.

This conversion can be accomplished in two ways. One year’s income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.

The Income Approach method of valuation may only be used for Agency Non-Program Properties such as Real Estate Owned (REO) or Non-Program Loan Assumptions.

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 6 of 18

USPAP Standards Rule 2-2 (a) (viii) require the appraisal report to summarize the information analyzed, the appraisal methods and techniques employed, and reasoning that supports the analyses, opinions, and conclusions; and also, exclusion of the sales comparison approach, cost approach, or income approach must be explained.

5. APPRAISAL REQUIREMENTS:

A. The appraiser signing the appraisal report must understand and agree that RD is the client, and all reports must be addressed to USDA – Rural Development. The intended user of the report will be RD and any other intended user specified by the agency. Any questions relating to agency requirements of the appraisal assignment should be directed to the COR and will not be directed to the property owner, real estate agent, builder/contractor, or any other party to the transaction. Communication relating to the assignment, directed to the COR, can come from the appraiser signing the appraisal report or the contractor selected for the assignment and in all instances RD staff will be granted permission to directly communicate with the appraiser signing the report.

B. The appraisal report must be Uniform Appraisal Dataset (UAD) compliant.

C. The appraisal must include a completed Fannie Mae Form 1004MC/Freddie Mac 71 “Market Conditions Addendum.”

D. A property contact person will be provided by the COR and ensure the appraiser has access to the subject property for inspection, unless the property is occupied and the appraisal is for foreclosure purposes. In this situation, a drive-by / exterior only appraisal shall be conducted utilizing the extraordinary assumption the condition of the exterior of the dwelling indicates a similar condition for the interior.

Appraisal fees or turnaround times must not be discussed with the property contact, the property owner or the borrower. The appraiser must notify the COR immediately if any of the following occurs:

(1) The appraiser cannot gain adequate access to the property;

(2) The appraiser does not receive essential property information in a timely manner;

(3) The appraiser has previously appraised or is in the process of appraising the property for another client; or

(4) The appraiser has any other potential conflict of interest with respect to the assignment.

E. If appropriate, the RD field office will prepare a list of repairs needed to insure the property meets the Agency regulations and guidance. The list of repairs, which is based on the inspection reports prepared by State-licensed inspectors or qualified third-party inspectors hired by the applicant will be provided to the appraiser for the purpose of obtaining an “as-improved” value. The list of repairs shall be provided by the RD Office processing the loan application. The appraiser is responsible to take into account the RD required repairs and must include the list of repairs in the addendum of the appraisal report.

F. The appraiser must provide an opinion of site value supported by a narrative of comparable land sales or other methods used for estimating site value. If support is not included in the appraisal report, a statement by the appraiser that such information is available for review upon request and in the appraiser’s work file should be made. The land must be valued as though vacant and ready for development.

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 7 of 18

• The appraiser must specify whether the site is or can be subdivided into more than one site under existing local zoning ordinances.

• The appraiser shall discuss the site size and the concluded site value and whether they are typical for the subject market.

• Any land area of the subject property that is determined by the appraiser as either excess land or surplus land must be addressed and valued accordingly together with documentation and support within the appraisal report for the appraiser’s conclusions.

G. In addition, the appraisal report for a manufactured home must also meet the following requirements:

(1) Cost Approach: Manufactured Home Appraisal Reports will require a published cost data service such as the Marshall and Swift Residential Cost Guide or the N.A.D.A. Manufactured Housing Appraisal Guide calculations to be included. The appraiser must take at least one of those values into consideration in arriving at a value conclusion.

(2) Sales Comparison Approach: The appraisal report must contain at least two comparable manufactured home sales of similar configuration and quality. The appraiser may use either site-built housing or a different type of factory built housing as the third comparable sale if the appraiser explains the reason for selecting the comparable and support the appropriate adjustments in the appraisal report.

H. All extraordinary assumptions, hypothetical conditions, and limiting conditions must be clearly and prominently described in a single location near the beginning of the report and in appropriate sections of the appraisal. General assumptions and limiting conditions that reduce the normal scope of appraisal due diligence are not allowed.

I. The appraiser must keep all information and materials furnished by Rural Development, the owner, and/or property contact regarding the subject property confidential, as required by USPAP and the Gramm-Leach-Bliley Act (also known as the Financial Services Modernization Act of 1999). Any information obtained through public sources is not considered confidential information. Disregard of this privacy requirement will be cause for immediate debarment as a contractor for the federal government.

J. All appraisals must comply with the Fair Housing Amendments Act of 1988. According to the Act, it is unlawful for an appraiser to use factors that are discriminatory on the basis of race, color, religion, sex, disability, familial status, or national origin in the sale, rental, leasing, or financing of housing.

K. Each appraisal will be submitted electronically, using the industry standard Extensible Markup Language (XML) appraisal data formats Mortgage Industry Standard Maintenance Organization (MISMO), with embedded PDF. Electronic submissions, in the above formats, must be emailed to the COR as indicated on the confirmed Single Family Appraisal Order Form, Purchase Order, or Task Order

(SF 1449).

6. OBSERVED CONDITIONS:

The appraiser is required to make a property inspection to gather data to support the determination of value. Readily observable conditions shall be noted.

A. The appraiser(s) signing the appraisal report must make at a minimum a personal inspection of the subject (interior and exterior) unless the appraisal is for foreclosure purposed of an occupied dwelling, then an exterior only inspection is required. Also, inspection of all comparable sales

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 8 of 18

(exterior) at a minimum from the street. The appraiser must indicate that the subject’s interior and exterior and all comparable sales were personally inspected / observed within the appraisal report.

Readily observable conditions must be noted for the following: attic space, crawl space, floors and walls for significant structural failure, moisture damage, or evidence of past fire damage; the roof condition for remaining life; the mechanical systems for operability; and all surfaces for defective paint.

B. In the event that access to the subject interior and/or exterior cannot be obtained, the appraiser must obtain prior authorization to continue the assignment without inspection. In the event RD authorizes valuation without an inspection, the appraiser must comply with USPAP Standard Rule 1-2 (F) which requires the appraiser to identify any extraordinary assumptions necessary in the assignment. The extraordinary assumption must include detailed disclosure of the assumed condition, the source(s) the extraordinary assumption is based upon and must be clearly labeled as such within the appraisal.

C. The appraiser must note any suspected environmental hazards, including issues external to the property that could adversely impact the property's value. Examples of environmental hazards would include damaged asbestos-containing building materials, underground storage tanks, chemical leaks, spills, staining of ground surfaces, or on-site waste disposal such as sludge, oil, paints, or chemical residues. If the appraiser observes any suspected environmental hazards, he/she must notify the COR immediately and refrain from finalizing aspects of the appraisal that could be impacted until resolution of the issue or until instructed otherwise.

D. The appraiser must notify the COR in the event the appraiser observes a deficiency in the property that does not meet minimum property requirements, of decent, safe and sanitary as outlined in HB-1-3550, paragraph 5.7. https://www.rd.usda.gov/files/hb-1-3550.pdf

E. For uninhabited dwellings where utilities are temporarily disconnected, the appraiser will inspect all mechanical systems (heating, plumbing, electrical) for observable conditions, but will not be responsible for reporting operability of these systems. Unless otherwise notified, the appraiser may assume operability for valuation purposes and this must be mentioned as an “extraordinary assumption” in the appraisal report.

F. Where applicable, appraisers should be familiar with the general provisions of “green properties” in single-family housing. The appraiser shall consider what impact (if any) such factors have on the value of the subject property. Any impact on value should be supported by market evidence.

G. The Mutual Self-Help Program, is a housing program utilizing supervised labor performed by borrowers as part of the construction process. Construction conducted under the program is supervised by technical experts to assure the quality of its completion.

Appraisal of properties constructed under the Mutual Self-Help Program should consider construction, materials and finish will be completed in a workmanlike and professional manner.

7. DOCUMENTATION:

All approaches to value and the value opinion must be in accordance with acceptable appraisal methodology.

https://www.rd.usda.gov/files/hb-1-3550.pdf

BLANKET PURCHASE AGREEMENT FOR SFH APPRAISAL SERVICES Page 9 of 18

A. All reports must include a location map (should include proximity to applicable road/highway), flood plain map when the property is located in a designated flood plain, land sales map, sales comparable map, rent comparable map (if applicable), plat map, and building sketch (indicating interior building layout, garages and all external buildings).

B. For new construction, the appraisal report must include clear original color photographs of the subject’s front, rear, street and street easement (private access), if applicable. In all other appraisals colored photographs showing at a minimum the front, rear, and both sides to the exterior. Interior photographs should be included showing each room type, attic and crawl spaces, other non-gross living area (sun rooms, patio/deck/porch/fences) and any noted structural, safety and/or sanitary deficiencies.

Additionally, photographs of improvement components that have been upgraded shall be included to document and support the appraiser’s determination of the subject’s effective age if different than its actual age. A current original photograph of each comparable sale and listing used in the completion of the appraisal is required. If the comparable sale and listing photographs are not available the appraiser should provide, at a minimum, multiple listing service photographs, whenever possible, along with the cited source from which the photographs were obtained.

C. The bedroom shall meet legal requirements (building code, zoning ordinance, etc.) as mandated by the local county/state government enforcement agency and applicable agency regulations where subject property is located, if any such legal requirements exist.

D. Verification from third party sources should be noted within the appraisal and maintained as part of the appraisers work file.

E. The appraisal shall include photographs of all external buildings as well as interior photos of the external buildings (if possible). The external dimensions for each of the external buildings must be included, preferably in the building sketch or identified in the addendum of the appraisal report.

F. The appraiser must estimate the remaining economic life of the subject's improvements, (the remaining number of years that the subject's improvements will contribute value to the land) and report this estimate in the cost approach section. An explanation is required if the remaining economic life is less than 30 years (the explanation is used to justify reducing the term of the mortgage to less than 30 years).

G. All appraisals of existing properties must include a discussion of deferred maintenance for the subject property. Items of deferred maintenance must be listed, and cost to cure for each item must be estimated with support provided.

H. All reports must include a written explanation and documentation to support individual line item adjustments. Total net adjustment percentages and gross adjustment percentages when compared with the comparable sale unadjusted sale price shall be discussed.

8. COMPLETION CERTIFICATION:

A. If determined by Rural Development (RD), the appraiser may be requested to re-inspect properties to determine if repairs to the home or construction of home were completed. RD shall determine the need for an appraiser to re-inspect a property. Re-inspection services may also be ordered on a separate contract if required. A list of additional repairs will be provided to the appraiser. Not all “subject to” appraisals will require re-inspection services.

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B. The appraiser shall submit their findings using the Fannie Mae Form 1004D/Freddie Mac Form 442 “Appraisal Update and/or Completion Report.” The completed report shall be delivered to the COR within 7 business days from the date the order was received. The report shall include pictures of completed work.

C. Re-inspection reports are due within 7 business days after notification is received from the COR.

9. APPRAISAL REPORT DELIVERY DEADLINES:

The appraiser shall complete and deliver appraisals to the COR within 14 days or specified noted delivery time after date of order, or upon receipt of the appraisal information from COR unless a different deadline is set by written mutual agreement at the time of order. If corrections and/or amendments to the appraisal are requested by the COR, the corrections and/or amendments are to be delivered as soon as possible, but not later than 4 business days following the request unless, by written mutual agreement, other arrangements are made. If, for any reason the timely delivery of the appraisal report is delayed for reasons beyond the appraiser's control, the appraiser must contact the COR and convey the reasons for the delay.

10. REVIEW OF THE APPRAISAL REPORT:

All appraisals prepared for RD are subject to technical review by the agency. Appraisers must be prepared to discuss their analyses, reasoning, opinions, and conclusions. Additionally, if requested, they must provide additional written support, clarification, and/or corrected appraisal pages or report. If requested by the COR or RD’s Regional Agency Appraiser, they will provide assistance to monitor the progress and quality of the appraiser’s performance and in all instances RD Regional Agency Appraisers will be granted permission to directly communicate with the appraiser signing the report as part of the review process.

11. ATTACHMENTS:

The Agency will provide the appraiser all necessary support information available at the time of appraisal engagement.

12. COMPLIANCE WITH STATEMENT OF WORK:

The appraiser must follow all provisions and instructions contained in this Statement of Work. When, in the opinion of the appraiser, the Regional Agency Appraiser or the COR, the requested effort(s) fall outside this Statement of Work, the appraiser shall promptly notify the COR in writing.

The Regional Agency Appraiser or the COR does not have the authority to direct the accomplishment of any effort which goes beyond the Statement of Work. Any requested changes which would result in additional charges must be approved by the Contracting Officer prior to commencement of work.

If the appraiser is unable to fully comply with this Statement of Work, the appraiser must decline the appraisal assignment in accordance with the USPAP.

13. SPECIFIC STATE REQUIREMENTS:

SOLICITATION PROVISIONS AND CONTRACT CLAUSES

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1. AGAR 452.204-70 INQUIRIES (FEB 1988) Inquiries and all correspondence concerning this solicitation should be submitted in writing to the Contracting Officer. Offerors should contact only the Contracting Officer issuing the solicitation about any aspect of this requirement prior to contract award.

Inquiries relating to payment may be directed to:

USDA Rural Development ATTN: Charles Banks 1303 SW First American Pl.

Topeka, KS 66604 charles.banks@ks.usda.gov

2. AGAR 452.219-70 SIZE STANDARD AND NAICS CODE INFORMATION (SEP 2001) Work under this agreement is set aside for small business, as defined by the Small Business Administration, (SBA). The North American Industrial Classification System (NAICS) Code for the products and/or services to be acquired and business size standard are:

NAICS CODES AND SBA SIZE STANDARDS

AGREEMENT NAICS Description Size ($M)

Appraiser 531320 Offices of Real Estate Appraisers $7.5

3. FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998)

This solicitation incorporates one or more solicitation provisions by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. The offeror is cautioned that the listed provisions may include blocks that must be completed by the offeror and submitted with its quotation or offer. In lieu of submitting the full text of those provisions, the offeror may identify the provision by paragraph identifier and provide the appropriate information with its quotation or offer. Also, the full text of a solicitation provision may be accessed electronically at http://farsite.hill.af.mil/

GENERAL - THE FOLLOWING CLAUSES APPLY TO ALL PURCHASE ORDERS:

52.203-3 Gratuities (APR 1984) 52.219-6 Notice of Total Small Business Set Aside (NOV 2011) 52.242-17 Government Delay of Work (APR 1984)

ADDITIONAL CLAUSES THAT APPLY WHEN APPLICABLE:

52.232-18 Availability of Funds (APR 1984) (Applicable if involved in the text of the order for orders issued before new fiscal year funds become available.)

ADDITIONAL CLAUSES APPLICABLE TO CONTRACTS WITH INDIVIDUALS

52.223-6 Drug-Free Workplace (MAY 2001)

SERVICES - ADDITIONAL CLAUSES APPLICABLE TO PURCHASE OF SERVICES:

52.243-1 Changes - Fixed Price - Alternate I (APR 1984) http://www.sba.gov/content/determining-business-size http://www.sba.gov/sites/default/files/Updated_Size_Standards_Table.xls http://farsite.hill.af.mil/

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4. FAR 52.212-1 INSTRUCTIONS TO OFFERORS -- COMMERCIAL ITEMS (JAN 2017)

a. The NAICS code and small business size standard for this acquisition: See paragraph above.

b. (7) REMIT TO address: See the “Invoices and Payment” section of the BPA document.

(8) Update the representations and certifications in SAM (https://www.sam.gov). Please provide a list of any items that are of issue.

(9) Acknowledgment of Solicitation Amendments;

(10) Past performance information: Recent, relevant contracts or previous work with USDA will be the basis of past performance information. For new agreements, references may be used.

(j) Data Universal Numbering System (DUNS) Number. The solicitation and agreement require the Contractor to maintain current registration in the SAM database.

5. FAR 52.212-2 EVALUATION -- COMMERCIAL ITEMS (OCT 2014) The Government will award a contract resulting from this solicitation to the responsible offerors whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers: Technical capability, past performance and price. All evaluation factors other than price/cost, when combined, are approximately equal to price/cost. (FAR 15.304).

6. FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS -- COMMERCIAL

ITEMS (NOV 2017) An offeror shall complete only paragraphs (b) of this provision if the offeror has completed the annual representations and certificates electronically at https://www.sam.gov/portal . If an offeror has not completed the annual representations and certifications electronically at the ORCA website, the offeror shall complete only paragraphs (c) through (u) of this provision.

7. FAR 52.212-4 CONTRACT TERMS AND CONDITIONS -- COMMERCIAL ITEMS (JAN 2017)

(f) Excusable delays. Notification by email or in writing is acceptable.

(g) Invoice. Submission by email is authorized and preferred.

(j) Transportation is F.O.B. Destination.

8. FAR 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTES OR EXECUTIVE ORDERS -- COMMERCIAL ITEMS (NOV 2017)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22 U.S.C. 7104(g)).

____ Alternate I (AUG 2007) of 52.222-50 (22 U.S.C. 7104(g)).

(2) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).

(3) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Pub. L. 108-77, 108- 78).

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the contracting officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

[Contracting Officer check as appropriate.] ___ (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Sept 2006), with Alternate I (Oct 1995) (41 U.S.C. 253g and 10 U.S.C. 2402).

___ (2) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (Pub. L. 110- 252, Title VI, Chapter 1 (41 U.S.C. 251 note)).

___ (3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_000.htm#P1278_177711 https://www.sam.gov/ http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_000.htm#P1339_189516 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_000.htm#P1354_191539 https://www.sam.gov/portal http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_000.htm#P1624_227557 http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_000.htm#P1815_265988

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Act of 2009 (Jun 2010) (Section 1553 of Pub L. 111-5) (Applies to contracts funded by the American Recovery and Reinvestment Act of 2009).

___ (4) 52.204-10, Reporting Executive compensation and First-Tier Subcontract Awards (Jul 2013) (Pub. L. 109-282) (31 U.S.C. 6101 note).

___ (5) 52.204-11, American Recovery and Reinvestment Act—Reporting Requirements (Jul 2010) (Pub. L. 111-5).

___ (6) 52.209-6, Protecting the Government’s Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (Aug 2013) (31 U.S.C. 6101 note).

___ (7) 52.209-9, Updates of Publicly Available Information Regarding Responsibility Matters (Jul 2013) (41 U.S.C. 2313).

___ (8) 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations (May 2012) (section 738 of Division C of Public Law 112-74, section 740 of Division C of Pub. L. 111-117, section 743 of Division D of Pub. L. 111-8, and section 745 of Division D of Pub. L. 110-161).

___ (9) 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award (Nov 2011) (15 U.S.C.

657a).

___ (10) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small Business Concerns (Jan 2011) (if the offeror elects to waive the preference, it shall so indicate in its offer)(15 U.S.C. 657a).

___ (11) [Reserved] _√_ (12) (i) 52.219-6, Notice of Total Small Business Aside (Nov 2011) (15 U.S.C. 644).

___ (ii) Alternate I (Nov 2011).

___ (iii) Alternate II (Nov 2011).

___ (13) (i) 52.219-7, Notice of Partial Small Business Set-Aside (June 2003) (15 U.S.C. 644).

___ (ii) Alternate I (Oct 1995) of 52.219-7.

___ (iii) Alternate II (Mar 2004) of 52.219-7.

___ (14) 52.219-8, Utilization of Small Business Concerns (Jul 2013) (15 U.S.C. 637(d)(2) and (3)).

___ (15) (i) 52.219-9, Small Business Subcontracting Plan (Jul 2013) (15 U.S.C. 637 (d)(4)).

___ (ii) Alternate I (Oct 2001) of 52.219-9.

___ (iii) Alternate II (Oct 2001) of 52.219-9.

___ (iv) Alternate III (July 2010) of 52.219-9.

___ (16) 52.219-13, Notice of Set-Aside of Orders (Nov 2011) (15 U.S.C. 644(r)).

___ (17) 52.219-14, Limitations on Subcontracting (Nov 2011) (15 U.S.C. 637(a)(14)).

___ (18) 52.219-16, Liquidated Damages—Subcontracting Plan (Jan 1999) (15 U.S.C.

637(d)(4)(F)(i)).

___ (19) (i) 52.219-23, Notice of Price Evaluation Adjustment for Small Disadvantaged Business Concerns (Oct 2008) (10 U.S.C. 2323) (if the offeror elects to waive the adjustment, it shall so indicate in its offer).

___ (ii) Alternate I (June 2003) of 52.219-23.

___ (20) 52.219-25, Small Disadvantaged Business Participation Program—Disadvantaged Status and Reporting (Jul 2013) (Pub. L. 103-355, section 7102, and 10 U.S.C. 2323).

___ (21) 52.219-26, Small Disadvantaged Business Participation Program—Incentive Subcontracting (Oct 2000) (Pub. L. 103-355, section 7102, and 10 U.S.C. 2323).

___ (22) 52.219-27, Notice of Service-Disabled Veteran-Owned Small Business Set-Aside (Nov 2011) (15 U.S.C. 657f).

___ (23) 52.219-28, Post Award Small Business Program Rerepresentation (Jul 2013) (15 U.S.C.

632(a)(2)).

___ (24) 52.219-29, Notice of Set-Aside for Economically Disadvantaged Women-Owned Small Business (EDWOSB) Concerns (Jul 2013) (15 U.S.C. 637(m)).

___ (25) 52.219-30, Notice of Set-Aside for Women-Owned Small Business (WOSB) Concerns

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Eligible Under the WOSB Program (Jul 2013) (15 U.S.C. 637(m)).

_√_ (26) 52.222-3, Convict Labor (June 2003) (E.O. 11755).

_√_ (27) 52.222-19, Child Labor—Cooperation with Authorities and Remedies (Mar 2012) (E.O. 13126).

___ (28) 52.222-21, Prohibition of Segregated Facilities (Feb 1999).

___ (29) 52.222-26, Equal Opportunity (Mar 2007) (E.O. 11246).

___ (30) 52.222-35, Equal Opportunity for Veterans (Sep 2010) (38 U.S.C. 4212).

___ (31) 52.222-36, Affirmative Action for Workers with Disabilities (Oct 2010) (29 U.S.C.

793).

___ (32) 52.222-37, Employment Reports on Veterans (Sep 2010) (38 U.S.C. 4212).

___ (33) 52.222-40, Notification of Employee Rights Under the National Labor Relations Act (Dec 2010) (E.O. 13496).

___ (34) 52.222-54, Employment Eligibility Verification (Jul 2012). (Executive Order 12989).

(Not applicable to the acquisition of commercially available off-the-shelf items or certain other types of commercial items as prescribed in 22.1803.)

___ (35) (i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA- Designated Items (May 2008) (42 U.S.C. 6962(c)(3)(A)(ii)). (Not applicable to the acquisition of commercially available off-the-shelf items.)

___ (ii) Alternate I (May 2008) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)). (Not applicable to the acquisition of commercially available off-the-shelf items.)

___ (36) 52.223-15, Energy Efficiency in Energy-Consuming Products (Dec 2007) (42 U.S.C.

8259b).

___ (37) (i) 52.223-16, IEEE 1680 Standard for the Environmental Assessment of Personal Computer Products (Dec 2007) (E.O. 13423).

___ (ii) Alternate I (Dec 2007) of 52.223-16.

_√_ (38) 52.223-18, Encouraging Contractor Policies to Ban Text Messaging while Driving (Aug 2011).

___ (39) 52.225-1, Buy American Act--Supplies (Feb 2009) (41 U.S.C. 10a-10d).

_√_ (40) (i) 52.225-3, Buy American Act--Free Trade Agreements--Israeli Trade Act (Nov 2012) (41 U.S.C. chapter 83, 19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, Pub. L. 103-182, Pub. L. 108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 109-283, 110-138, 112-41, 112-42, and 112-43).

___ (ii) Alternate I (Mar 2012) of 52.225-3.

___ (iii) Alternate II (Mar 2012) of…