Escrow and Investment Fund Support Management Services QAs 04.04.2024.pdf

Date Received

Document/Section Page Number Question/Comment/Clarification Answer/Response

3/29/2024

J-1 PWS

Please confirm that the requirement for account opening is as described in B01 – Attachment J-1: no later than 30 calendar days from contract period of performance start date in accordance with this PWS (pending full set-up and testing), to include all transition- 5 in/transition-out requirements as detailed in Section 7. The contractor shall ensure the account is fully operational to satisfy the requirements of this PWS as soon as possible, and no later than 150 calendar days from contract period of performance start date

And not the account opening timing as referenced in A01 dated 10/12/23 - must be established and operational by May 19, 2024, 8:00 AM (CST) or no more than two weeks after contract award (whichever is earlier).

As stated in section 7.2 of attachment J-1 of the PWS - The new contractor shall ensure all required functionality to perform the full scope of the PWS is attained for all eight (8) accounts no later than 150 calendar days from the new contract period of performance start date. The period of performance begins May 20, 2024.

The referenced A01 dated 10/12/2023 is outdated and no longer applies to this requirement or solicitation.

3/29/2024

B01 Attachment J-1 - 2.

Bank Account Operations Background, 2.2 Account

For the USDA-RD Escrow Concentration Investment Account, reference is made to maturities and new investments being discussed with the contractors' Investment advisor. Please be aware BNY Mellon (institutional Bank) and BNY Mellon Capital Markets LLC (Broker/Dealer) are not investment advisors. The sales desk can help execute new transactions based on the FO’s preferences. Please confirm that being a registered Investment Advisor is not a requirement of the Vendor.

While the terminology of "advisor" is referenced in the PWS, a registered Investment Advisor is NOT required for this contract since the government will direct all investments to contain 100% Treasury Securities.

3/29/2024

B01 Attachment J-1 - 2.

Bank Account Operations Background pages 1 - 3

Does USDA plan to send one ACH file covering multiple accounts or a separate ACH file for each account?

One ACH file for loan closings is uploaded each day for the EFT Account.

If any other accounts require an ACH file to be sent, they will be sent separately for each account.

3/29/2024

B01 Attachment J-1 - 6.4

For the USDA-RD Net Income Custody Account, reference is made to deducting fees at month end. Custody fees are issued and deducted from the account after the conclusion of the prior month, based on average market value of the prior month. Please confirm this satisfies the requirement for auto-debiting fees.

The average market value of the prior month is not relevant.

As stated in PWS 6.4: At Months-end, all associated custody and asset management fees incurred shall be automatically deducted from the income earned each Months from the various escrow accounts. The FO will review all escrow statements for accuracy and prepare an ACH transaction from the Net Income Custody Account if the fees exceed the income earned.

3/29/2024

B01 Attachment J-1 - 6.

Specific Tasks, 6.4

Are banking fees paid from the Net Income Custody Account BEFORE the balances greater than $300K invested via the Net Income Custody Investment Account, i.e., do the banking/analysis fees come solely from the (up to) $300K balance in the Net Income Custody Account each month?

There are banking/analysis fees associated with all 8 accounts.

All accounts that maintain a balance are interest earning.

The banking/analysis fees and the interest earned for all accounts are offset, and any banking/analysis fees not covered by the interest earned are paid from the Net Income Custody account, which always maintains a balance of approximately $300,000.

3/29/2024

B01 Attachment J-1 - 7.2 Post-Award Orientation/Kick Off Meeting

Is the contract’s period of performance start date still expected to be May 20, 2024, as Bank of America’s contract extension expires on May 19, 2024?

At this time yes, the contract period of performance start date will begin May 20, 2024.

3/29/2024

General - NDA One more item on the NDA. The only item we are requesting within the NDA is a term limit/termination language as that was not included in the draft provided.

This request is currently being vetted through our policy division.

3/29/2024

General Do we have your permission to use your logo/branding for the strict purpose of developing the RFP proposal materials and supporting collateral to be shared with your organization only?

This is not required or necessary in response to this solicitation, therefore we will not approve at this time.

3/29/2024

General Does your internal firewall limit the file size for email submission? If so, what is the maximum file size allowed?

Will zipped files or PDF files be allowed?

For emails that are sent and received within USDA datacenters, the maximum message size is

150 MB.

For emails that are sent and received between Office 365 users and outside the USDA (where the message never leaves the Office 365 datacenters) the maximum message size is 150 MB.

Messages that are routed outside of the Office 365 datacenters are subject to an additional 33% translation encoding increase, in which case the maximum message size is 112 MB.

PDF files are desired but both PDF or Zip files will be accepted.

3/29/2024 General Does USDA send or receive any FX Payments? If so, how is this currently managed?

No, USDA-RD does not send or receive FX payments or collections.

3/29/2024

B01 Solicitation – 3.3.1.8

– Sanitized Version of Volume 1

Please confirm how we should title the Bank in the Sanitized Version.

In accordance with B01 Solicitation - section 3.3.1.8 Sanitized Version of Volume 1– This is an exact copy of Volume 1, except that all logos, emails, names, websites, or any other identifiable information indicating the vendor are removed.

Your sanitized version shall have no reference to the bank name, and the procurement team will be able to discern which bank from the email submission it is attached to.

3/29/2024

PWS - 2. Bank Account Operations Background

What are the number of transactions by payment type, ACH or Wire, for inbound and outbound payments for Account 1, Account 6 and Account 7? This information is required to determine total estimated cost of overall bank fees.

In accordance with B01 Attachment J-2 - Price Schedule:

1) The estimated quantities for all services listed in this Price Schedule were derived from actual usage under the existing contract that provides these services for USDA-RD currently.

2) While the Government is not able to precisely forecast the exact quantity of usage for each service type for any given month, actual usage from the last 12-months was reviewed and a calculated monthly average was determined for each service type.

3) As a result, the estimated 12-mo average monthly quantity identified for each service type in this Price Schedule is the Government's best estimate of what our average monthly required services may look like, and these quantities are strictly for evaluation purposes only.

3/29/2024

PWS - 7. Transition- In/Transition-Out Requirements

Please confirm ownership of requirement for update to NowDocs USB module to new bank name, routing number and account number as internal client systems are typically outside the scope of bank implementation. Also, the requirement states need to install on computer in check room to start testing check. PWS states this is a contractor requirement but believe work project is a USDA-RD requirement.

The Updates to the NowDocs USB module will be the responsibility of the government.

3/29/2024

PWS - 2. Bank Account Operations Background

How are payment files delivered for Account 1: The USDA- RD Escrow Concentration Account and Account 6: The USDA- RD EFT Account? Is it via manual upload, Host-to-Host or

API?

Payment files for Account 1 - Escrow Concentration Account payment files are delivered via manual data entry.

In accordance with PWS 6.11: Payment files for Account 6 - EFT Account, ACH loan closing is uploaded by a rep from SO, and that will be uploaded as a bulk import file. The Contractor shall provide all necessary software support for ensuring that successful interfacing has been established. If there are any software upgrades during the life of contract, the Contractor is responsible for seeing that the interface can accommodate any changes in the data stream going to the USDA computerized information system.

At this time we are utilizing a Host-to-Host approach.

3/29/2024

PWS - 7.7.6.4 Estimated Timeline

In section 7.7.6.4 Estimated Timeline, the PWS defines strict timelines while some activities within overall project will run in parallel. Would USDA RD be flexible on the project timeline sub-projects to deliver fully functional servicing accounts to drive a more expeditious project delivery?

The Government is able to allow flexibility in the interest of efficiency of any tasks can be completed sooner than required; however the Government is not in a position to allow flexibility in terms of pushing back or extending stated deadlines beyond what they currently are.

3/29/2024

PWS - 7.7.6.4 Estimated Timeline

The PWS states, “A separate "funding" ACH transaction is directed from the USDA-RD FO Disbursements Branch to the EFT Account for the daily gross disbursement dollar amount via Treasury’s Secure Payment System (SPS). The EFT Account shall be capable of supporting ACH and wire transfer services for disbursement transactions of at least 6,250 items and totaling $1.3 Billion annually.” This requirement states the EFT Account will be a ZBA, Zero Balance Account. However, this account will be structured a pre-funded account only as ZBA would pull from a Controlled Disbursement Account versus direct funding against daily disbursements. Please confirm all funding comes from USDA to fund new loan origination outgoing payments, same day.

If not, will any remaining funds (perhaps expected to go out next business day) be invested in the MMF 100% US Treasury Securities fund?

Yes, all funding comes from USDA and we maintain balances in the Escrow Concentration Account to ensure we have sufficient funds to make all payments without having to make unscheduled maturities from the MMF 100% US Treasury Securities Fund.

3/29/2024 PWS Page 2-3

Please provide a 12 month balance history for all accounts. At this time the Government will not provide historical balances for all accounts, as we've provided the histroical information we feel is pertinent to this solicitation in terms of our histroical usage of the various banking and analysis fees the Performance Work Statement requires.

In accordance with B01 Attachment J-2 - Price Schedule:

1) The estimated quantities for all services listed in this Price Schedule were derived from actual usage under the existing contract that provides these services for USDA-RD currently.

2) While the Government is not able to precisely forecast the exact quantity of usage for each service type for any given month, actual usage from the last 12-months was reviewed and a calculated monthly average was determined for each service type.

3) As a result, the estimated 12-mo average monthly quantity identified for each service type in this Price Schedule is the Government's best estimate of what our average monthly required services may look like, and these quantities are strictly for evaluation purposes only.

3/29/2024 PWS 2.2 Page 2

Net Income Custody Account – Is an earnings credit rate earned in addition to interest earnings? If yes, please provide a 12 month history of the earnings credit rate.

Part 1 -

If yes, copy verbiage from above

3/29/2024 PWS 2.2 Page 3

What is the timing of the funding versus disbursement transactions?

All disbursement transactions are fully funded prior to entry/approval of the activity.

3/29/2024 PWS 6.2 and 6.8 Pages 5 and 8

The sections indicate that the Escrow Disbursement and Emergency Disbursement accounts are controlled disbursement accounts, yet they are funded by automatic sweep from the Escrow Concentration Account. Are totals of checks presented required to be provided by a certain time each day for both accounts?

In accordance with PWS 6.2 - At the end of each day, the gross amount of the check presentments is swept from the Escrow Concentration Account.

The Government does not require "totals of checks presented".

3/29/2024 PWS 6.2 Page 5

How are wire transfers initiated – using templates in online banking or a file upload?

Wire transfers are entered manually, using established templates or free-form entry, and there is no file uploaded for wire transactions.

Templates are established for repeat wire recipients; free-form entry is for one-time or intermittent wire recipients.

Wire transfers only apply to Account 1 (Escrow Concentration Account) and Account 6 (EFT Account).

3/29/2024 PWS 6.2.1 Page 5

How are monthly images of checks cleared to be provided? Using the Bank’s online banking tool to pull images or using separate access to an online image archive which only houses cleared checks (no other balance, transaction, or bank statement info)? Please provide a 12 month rate history for the Escrow Concentration Investment, Net Income Custody and Net Income Custody Investment accounts.

In accordance with 6.2.1 of J-1 PWS - The contractor shall make available Monthly images (front and back) of USDA-RD-CFO checks that have cleared the Escrow Disbursement Account and Emergency Disbursement Account that are accessible on-line and compatible with Windows 10 and can be accessed by Microsoft Edge and/or Google Chrome. The contractor shall provide written instructions and the software required to view the check images as applicable. The contractor shall make available the Monthly images of checks no later than the 15th calendar day of the following Months.

At this time the Government will not provide a 12 month rate history for any accounts, as we've provided the histroical information we feel is pertinent to this solicitation in terms of our histroical usage of the various banking and analysis fees the Performance Work Statement requires.

In accordance with B01 Attachment J-2 - Price Schedule:

1) The estimated quantities for all services listed in this Price Schedule were derived from actual usage under the existing contract that provides these services for USDA-RD currently.

2) While the Government is not able to precisely forecast the exact quantity of usage for each service type for any given month, actual usage from the last 12-months was reviewed and a calculated monthly average was determined for each service type.

3) As a result, the estimated 12-mo average monthly quantity identified for each service type in this Price Schedule is the Government's best estimate of what our average monthly required services may look like, and these quantities are strictly for evaluation purposes only.

3/29/2024 Pricing Schedule line 51 Please describe “ARP Reports Additional Duplicate Ancillary”?

This cost is per account/report and represents a charge for accounts receiving duplicate or additional end of cycle reports or ancillary reports. For example, an AR daily adjustment and AR outstanding issue report online.

3/29/2024 General What is the overdraft history on all accounts? Do any of the accounts experience daylight overdrafts?

The EFT account was overdrawn on two occasions in the past 3 years due to agency error.

This is not a normal or daily occurrence.

3/29/2024 General What time of day is wire transfer initiation complete for the day/how late will wires by initiated (time of day)?

All wires are entered no later than 3:00 p.m. central time.

The cutoff for the financial institution to process the wire is 5:15 p.m. central time.

3/29/2024 General

Since the program is funded by the interest earned from the investment accounts, does USDA plan on funding any implementation fees?

At Months-end all associated banking fees incurred by all accounts from services utilized will be deducted from the USDA-RD Net Income Custody Account.

This includes any associated implementation fees.

3/29/2024 General

If in a given month the interest accrued is not enough to cover the fees assessed for the services, will USDA fund the additional amount owed?

If in a given month the interest earned is not enough to cover the fees assessed for services of that same month, the Government will still use prior interest earned funds from the Net Income Custody Account to cover any potential difference.

In accordance with PWS 6.4: The FO will review all escrow statements for accuracy and prepare an ACH transaction from the Net Income Custody Account if the fees exceed the income earned.

3/29/2024 General Would USDA be interested in other fraud prevention services for issuing these payment like Account Verification Service

(AVS)?

At this time the Government is only requiring what has been established in the PWS.

3/29/2024 General

Does the $50M average balance and the $300K balance get swept in entirety on a nightly basis to the investment accounts or just any amounts above this amount?

There are NO automatic sweeps to the investment accounts.

All transfers to the investment accounts for additional investments over the threshold are directed by the government.

3/29/2024 General Are you accounts collateralized with your current financial institution today?

Our accounts are currently not collateralized under the existing contract, as this was not required.

3/29/2024 General Would you be able to provide additional information around the Georgia Wire Pilot Program?

The Georgia Wire Pilot Program entails loan closings for SFH loans in the state of Georgia that are entered as manual wires.

3/29/2024 General

Today, what happens to any additional interest accrued from the investment accounts which exceeds the amount needed to offset a given months fees?

Any additional interest accrued will be invested into Money Market Mutual fund account at the direction of the government.

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