B01_Attachment 1 Recapture Appraisal PWS _Revised 03072025.docx

PERFORMANCE WORK STATEMENT (PWS)

Nationwide Recapture Appraisal Services Revised March 7, 2025

1. GENERAL: The United States Department of Agriculture (USDA), Rural Development (RD) intends to procure contractor provided services for the purpose of:

Providing nationwide recapture appraisal and other valuation services, and written reports for estimates of opinions of market value and/or liquidation values for single family homes and vacant lots in rural areas. Valuation services other than recapture appraisal services may be ordered under this contract. The function of the appraisal reports will be to determine and report to the USDA the value of single-family properties based on one of three value types and definition to be communicated in each individual assignment engagement: (Market Value, Disposition Value, or Liquidation Value).

2. BACKGROUND: The RD provides support and services that improve the quality of life in rural communities. RD programs help rural communities build or improve housing, community facilities, and extend utilities, including water, electricity, and telecommunications services. RD programs create jobs by funding the growth and creation of rural businesses and cooperatives. RD provides assistance through direct or guaranteed loans, grants, technical assistance, research, and educational materials.

RD provides loans to low- and moderate-income applicants located in rural geographic areas to assist them in obtaining single family housing through multiple programs. A limited number are larger than one acre of land with the home. The Single-Family Housing Direct loans are provided in all 50 United States, in addition to the U.S. Territories of Puerto Rico, the Virgin Islands, Guam, and Western Pacific (see definition of “Western Pacific” in Appendix).

RD currently maintains a portfolio of approximately 232,525 single family housing borrowers located in all 50 United States, in addition to the U.S. Territories of Puerto Rico, the Virgin Islands, and the Western Pacific Islands, in addition to approximately 3,000 real estate owned properties and 20,000 recapture receivables.

The RD Servicing Office, located in St. Louis, Missouri, provides full servicing of the loan portfolio from the point of obligation to final payoff or settlement. The St. Louis Servicing Office provides support to the field offices for loan originations and is responsible for most servicing functions.

The focus of the RD Servicing Office is to minimize risk to the Federal Government and taxpayer and reduce the cost associated with servicing loan borrowers.

USDA is currently utilizing the Sagent/LoanServ Servicing System (formerly known as MortServ). The loan servicing system was developed by Fiserv (formerly Datalink, Incorporated) and has been significantly modified to meet the unique servicing requirements of RD direct single-family housing loan programs.

Appraisals can be submitted but are not required to be submitted via Sagent/LoanServ. Use of the Sagent/LoanServ system will require an Interconnection Security Agreement and/or Memorandum of Understanding (MOU) as defined in the National Institute of Standards and Technology 800-47, Security Guide for Interconnecting Information Technology Systems. Review of the ISA/MOU shall be performed annually or whenever a significant change occurs to ensure they are operating properly and are providing appropriate levels of protection. Documentation of the completion of the review is required.

3. PURPOSE: This effort will assist in determining and reporting to the USDA the appraisal value of single-family properties based on one of three value types (Market Value, Disposition, or Liquidation Value) to be communicated in each individual assignment or engagement. The appraisal will assist the USDA in their evaluation of inventory property and existing loan servicing.

4. SCOPE: To support this program, the USDA, RD Servicing Office requires the services of qualified firms to provide appraisal services in accordance with Title 7 Code of Federal Regulations (CFR) Part 3550 and Handbook-1-3550, Chapter 5, Section 5 ''Appraisals" which may be located at: https://www.rd.usda.gov/resources/regulations under the Resources Tab [ResourcesàDirectivesàHandbooks].

The USDA, RD Servicing Office has a requirement for Nationwide Appraisals Services for recapture activities on USDA Real Estate Owned (REO) and Custodial properties. Inventory would include majority single family homes and vacant lots located in rural communities however some are in a more remote communities/area, such as tribal lands.

5. PERFORMANCE REQUIREMENTS:

5.1 Unusual Situations and Delays

5.1.1. Unusual Situations. The Contractor will report all situations that arise outside of the normal process to the Contracting Officer’s Representative (COR) and CO within no more than 3 calendar days after the situation comes to the Contractor’s attention. If a U.S. Federal holiday occurs after the discovery of an unusual situation, the Contractor must report the unusual situation within no more than 4 calendar days after the situation comes to the Contractor’s attention. The unusual situation must be documented in the vendor’s portal or sent via email to the COR and the CO. The COR or CO will confirm the documented occurrence and act as applicable.

5.1.2. Delays. If a situation arises that will prevent timely completion, the contractor will notify the COR or designee within 5 calendar days of becoming aware of the delay.

The following delay will be considered as no fault of the Contractor; however, the contractor must notify the COR or designee within 5 calendar days of becoming aware of this delay:

· Natural disaster which has caused substantial and immediate damage to the entire area. The timeframe of completion may be adjusted accordingly when such action occurs.

5.2 Deliverables

5.2.1. Acknowledgement of assignments. Within 3 days (see definition of “day(s)” in Appendix) after physical acceptance of an appraisal order, the Contractor will acknowledge receipt by written memorandum to the COR with a courtesy copy to the Contracting Officer (CO). A single memorandum may acknowledge receipt of multiple properties. Memorandums may be delivered via email or electronic system.

5.2.2. Communication. The contractor will document all communication with the borrower in writing and provide a copy to the COR.

5.2.3. Expected Timeframes. Appraisal assignments will be classified in one timeframe category at the time of engagement.

· Standard timeframe appraisal assignment requests will be completed and delivered within 20 days of the appraisal order being received.

· Subsidy Recapture Appraisal assignment requests will be completed and delivered within 20 days AFTER receipt, declination, or expiration of the submission of the capital improvements information, whichever occurs first.

5.3 Appraisals. General information and requirements for Real Property Appraisals.

5.3.1. Client and Intended Users. The USDA, RD is the client and only intended user.

5.3.2. Requirements for Appraisers. All real property appraisers performing appraisals under this program will be either State Certified Residential or General licensed appraisers in the state where the credential was issued, in conformance with Title XI of the Financial Institution’s Reform, Recovery and Enforcement Act of 1989 (FIRREA).

5.3.3. Standards. All appraisals must comply with the most current edition of the Uniform Standards of Professional Appraisal Practice (USPAP), USDA RD appraisal requirements per regulation and policy as set forth from time to time, and any and all assignment condition requirements of the USDA, RD.

5.3.4. Types and Definitions of Value for Appraisal Assignments. The type of value identified by the USDA including its corresponding definition will be conveyed for each specific appraisal assignment. Types of value requested by the client may include but are not limited to: Market Value, Disposition Value, or Liquidation Value [see Appendix for definition].

5.3.5. Property Access and Observation. Most loan recapture and inventory/vacant property appraisal assignments will require an interior inspection. For all assignments pertaining to existing loan servicing, a reasonable business effort [see Appendix for definition] will be made by the appraiser to gain access and observe the subject property, including the interior of the improvements, USDA may allow the assignment to be converted to an Exterior Only Inspection Residential Appraisal. USDA requires the appraiser’s reasonable efforts to gain access be documented in the appraisal report.

5.3.6. Extraordinary Assumptions for Exterior Only Appraisal Assignments. Only after a reasonable business effort [see Appendix for definition] to obtain interior access has been made and documented by the appraiser, the USDA requires as an assignment condition that in the absence of an interior inspection of the subject’s improvements, the appraiser uses the Extraordinary Assumption that the interior condition of subject’s improvements is consistent with the exterior condition as observed by the appraiser. All extraordinary assumptions will be clearly stated in the appraisal report. If any other factual evidence is found by the appraiser to contradict this assumption, without the benefit of a complete interior inspection, the appraiser will document the evidence as well as its source in the appraisal report and use the appropriate condition rating that ensures a credible opinion of value.

5.3.7. Appraiser Independence. The appraiser engaged for the assignment will develop and report an independent opinion of value. No party will attempt to influence the results, opinions, or conclusions of the appraiser.

5.3.8. Delivery of Real Property Appraisal Reports. Completed appraisal reports will be delivered electronically in a digital signed and secured portable document format (pdf).

5.3.9. Opinions of Value "As-is'' or "Subject to". Individual appraisal assignment engagements may request a value opinion of the subject property in an ''as is" condition and/or ''subject to'' any repairs listed by the USDA in the assignment order.

5.3.10. Change Requests. USDA provides mortgages in Rural areas. All requests submitted to the vendor will meet Rural areas as defined in Section 520 of the Housing Act of 1949 (as amended) (Act). The contractor accepts the orders as being rural and will not submit a change request due to the property being in a Rural Area.

5.3.11. Change Request for Fee Increase. Once USDA approves a Change Request, the Agency should receive the accurately completed report within the agreed upon date provided by the contractor. If USDA does not receive the accurately completed report the fee will revert back to the scheduled firm-fixed price submitted by Prime Contractor for the period, the order was originally placed.

5.3.12. Trip Fees. Standard trips to and from the rural property for the appraiser are included in the firm-fixed price. The CO may authorize the COR to compensate appraisers for the time and distance traveled. Trip Fees are not a guaranteed and, at any time, the CO may unilaterally discontinue this authorization.

5.3.12.1. Payment of Trip Fees. Trip fees will be allowed for the following situations only.

· If an appraiser goes to a property but cannot complete the appraisal due to the USDA providing the incorrect address.

· If the appraiser coordinated an appointment time for the appraisal but could not access the property through no fault of their own.

· If the appraiser went to the property to conduct an exterior appraisal but is not able to complete the appraisal through no fault of their own.

· If the USDA canceled an appraisal after the appraiser had already gone out to the property. The appraiser ONLY visited the property prior to USDA cancellation, no other work had been done.

5.3.12.2. Specific Documentation Required. The COR or Contracting Officer will require specific documentation, as needed, to support the trip fee request.

· The appraiser is required to verify date and time of appointment and the person to whom he/she spoke to schedule the appraisal 24 hours prior to inspection date.

· The confirmation must be posted on the Prime Contractor’s website prior to proceeding to the property location.

· Photos of all 4 sides of the home with metadata indicating date and time stamp (photos in original format such as jpg). If the appraiser is unable to obtain photos of the home, the appraiser must provide a detailed (the actual situation why no photos were taken) explanation of why. *Note that PDF photo files are not acceptable for a trip fee request.

· If the home has a house number, it must be included in at least one of the photos.

· (Hostile Conditions Only) Provide photos of the cross streets where the home is located and a detailed explanation of the events that occurred.

5.3.12.3. Rejection of Trip Fee Request. Trip fees will not be allowed under the following situations:

· An appraiser does not confirm the appointment before traveling to the property, and then is not able to complete the appraisal.

· No proof of physically being at the property (i.e., photos with metadata datetime stamp, documentation in Prime Contractor’s portal, etc.).

· The appraiser failed to report to the property at the scheduled time.

· A trip fee not requested within 60 calendars of the visit or attempted visit to the specific property.

· The appraiser failed to properly research the property prior to visit to determine whether the property is viewable [down a long driveway, obscured by vegetation, et cetera] from public access roadways.

5.3.12.4. How Trip Fees are Calculated. These fees are based on Internal Revenue Service (IRS) standard mileage rate for the calendar year. These rates apply to electric, hybrid, gasoline, and diesel-powered vehicles.

· IRS standard mileage rate in effect at the time of the request.

· The shortest distance from the starting point (appraiser’s home or office) to property destination as calculated by Google Maps.

· Professional fee of $20.

· Example from above. The IRS standard mileage rate multiplied by the shortest distance traveled equals Sub-Total. Next, Sub-Total plus professional fee equals Total Trip Fee to be invoiced. ($0.67 x 65 miles = $43.55…. $43.55 +$20.00 = $63.55 Trip Fee)

5.3.13 Travel Costs. Standard travel costs to and from the rural property for the appraiser are included in the firm-fixed price. In special or unusual situations, documentation to support actual costs incurred will be provided on a non-handwritten legible receipt for each expenditure [airfare, ferry ride, additional transportation costs, et cetera].

· The CO must approve any special or unusual costs prior to the cost occurring or the execution of said trip. The CO will only approve unusual travel costs that are allowed and in accordance with the Federal Travel Regulation.

5.3.14. Cancellation Fees. USDA does not pay cancellation fees.

5.4 Real Property Appraisal Development Assignment Conditions.

5.4.1. Standards. All appraisals must comply with the current edition of the Uniform Standards of Professional Appraisal Practice, USDA RD appraisal requirements per regulation and policy as set forth from time to time, and any and all assignment condition requirements of the USDA RD.

5.4.2. Approaches to Value. The USDA requires the appraiser consider and develop all approaches that would produce a credible indication of value and credible result for the assignment. As an assignment condition, the USDA requires the appraiser develop, report and reconcile the Cost Approach to value in assignments where the actual age of the subject's improvements is indicated to be less than one year by sources deemed most reliable by the appraiser.

5.4.3. Analysis and Value Opinion that is Consistent with the Definition of Value given for the Assignment. The USDA requires the analysis for all approaches to value be consistent with the type and definition of value provided by the client for the assignment.

5.4.4. Opinion of the Subject’s Site Value. The USDA requires the appraiser develop and report an opinion of value for the subject's site only (unimproved) based on the definition provided by the client and report the opinion with supporting summary analysis in the Cost Approach section of the primary assignment report.

5.4.5. Estimated Remaining Economic Life of the Subject’s Improvements. The USDA requires the appraiser estimate the remaining economic life of the subject's improvements (the remaining number of years the subject's improvements will contribute value to the land) and report this estimate in the Cost Approach section.

5.5 Real Property Appraisal Reporting Assignment Conditions

5.5.1. Standards. All appraisal reports must comply with the current edition of the Uniform Standards of Professional Appraisal Practice, USDA RD appraisal requirements per regulation and policy as set forth from time to time, and any and all assignment condition requirements of the USDA, RD.

5.5.2. Describing and Reporting the Observed Condition of the Subject Property. The client will rely heavily on the reported physical condition descriptions, photographs, and characteristics of the subject property to make decisions. The client requires a higher level of detail in the report's description of the subject's physical condition and observed deferred maintenance. The USDA requires the appraiser be objective and report in enough detail to adequately describe the actual physical condition observed, in a manner that will be meaningful and not misleading.

5.5.3. Appraisal Reporting Options, Forms, and Addendums required by the Client. The client requires appraisal reports comply with the most current edition of USPAP, are reported in a summary appraisal format, and are presented in compliance with the Uniform Appraisal Dataset (UAD). The specific reporting form types adopted and required by the USDA will be communicated in each appraiser assignment engagement. Common appraisal industry reporting forms that may be requested by the client include:

NOTE: Forms may be updated based on changes to industry standards/option Fannie Mae URAR (Form 1004) – this form can be found at the following websites: https://www.fanniemae.com/content/guide_form/1004.pdf

a. Fannie Mae Exterior-Only Inspection Appraisal Report (Form 2055) - This form can be found at the following websites: https://fanniemae.com/content/guide_form/2055.pdf

b. Fannie Mae Manufactured Home Appraisal Report (1004C) - (FNMA Form 1004C/FHLMC Form 708) have been combined into one appraisal report. The two documents will be one and the same. This form can be found at the following website: https://www.fanniemae.com/content/guide_form/1004c.pdf

c. Fannie Mae Individual Condominium Unit Appraisal Report (Form 1073) - FNMA Form 1073/FHLMC Form 465) has been revised; this property type is no longer indicated on the URAR. The revised form excludes exterior inspections. Appraisals with interior inspections for condominiums should be completed on this form. This form can be found at the following website: https://www.fanniemae.com/content/guide_form/1075.pdf

· General Purpose Residential Summary Appraisal Report Form (GPAR or GP-Res)

5.5.4. Supplemental appraisal report addendums required by the USDA:

· Floor plan or Sketch Addendum

· Subject and Comparable Sale Photo Addendums (to include interior photos of subject and all improvements located on the subject's site)

· Location Map Addendum

· Supplemental Addendums that include copies of data or listing sheets for the subject and comparable sales utilized for analysis.

· Capital Improvements Addendum (if applicable)

5.5.5. Status Report. The contractor will provide a weekly case status report to the COR and the CO by the following Monday after order submission. For each category of appraisals, the reports must include the following: contractor order, number, name of borrower, loan number, property address, date of order, date of completion and order status.

5.6 Standards

5.6.1. Statutes, Laws, and Regulations. All legal enforcement and collection actions on the part of the contractor must comply and be consistent with all Federal, State, and local statutes, regulations and ethical standards. This is applicable to the liquidation of real estate collateral and collection of debt. These include but are not limited to:

· Privacy Act of 1974, as amended (5 U.S.C. 552a)

· The Fair Debt Collection Practices Act (15 U. S.C. 1692 St seq.)

· The Debt Collection Act of 1982, as amended (P.L. 97-365)

· The American Bar Association Model Rules and Professional Responsibility (1983)

These statutes and standards, as well as other applicable Federal, State and local laws regulations pertaining to the Government are incorporated by reference in this PWS and are considered as part of the contract. Violation of applicable law, regulation or ethical standards will be cause for termination of the contract for default.

5.6.2. Clarification of Statutes, Regulations. These statutes and standards, as well as other applicable Federal and State laws and regulations pertaining to the Government are incorporated by reference into this agreement and are considered a part of any resulting order. Violation of applicable law, regulation or ethical standards will be cause for termination of this agreement or orders issued in accordance with this agreement.

5.6.3. USDA Role. RD will provide, upon request, any regulation and discussion of the same necessary to execute the duties under this agreement. FmHA/RD Instructions/Regulations are available for review, on request, at the RD Area Office nearest the Contractor's office and online at: http://www.rurdev.usda.gov/RegulationsAndGuidance.html.

5.7 Automated Interfaces.

The Contractor must have an on-line system that provides remote access directly to its database. The required access is for U.S. Government issued computers located at USDA, Rural Development offices, or remote telework locations.

The Contractor's on-line system must have a security system that prevents unauthorized access. The Contractor must identify for USDA any entities that provide and/or have access to the data base via the on-line system.

5.8 Documentation.

The Contractor will provide an online link of User documentation that is necessary for USDA staff to effectively utilize the online system.

The Contractor will provide automated updates as changes occur and will be delivered to USDA concurrently with deliveries to your client base.

5.8.1. Online Training. The Contractor will provide on-site training of USDA staff in the operation of the Online System. This training will consist of a minimum of two sessions.

5.8.2. Training. The Contractor will provide training to USDA personnel on the proper use of the Contractor’s online system. This includes but is not limited to:

· Screen navigation

· Data elements

· Data updates

· Establishment of service

· Cancellation of service

· Report options

· Report ordering

· Access to vendor data

· General information available on the system

5.8.3. Subcontractor Bills and Remittances – Contractor Responsibility. The Contractor is responsible for processing and submitting to the subcontractor(s) all remittances. Should the Contractor fail to forward remittances to the subcontractor(s) and the remittances have been processed accurately and in a timely manner by USDA, the Contractor is responsible for all penalties and interest due to the subcontractor(s).

5.8.3.1. Invoice-Delivery Schedule. The Contractor will furnish all invoice information to USDA with sufficient lead time as to allow adequate processing time for Agency staff. The following schedule will be adopted and adhered to by the Contractor as the shortest timeframe for the delivery of bills to USDA:

· Invoices must be received by the 10th of each month.

5.8.3.2. Liability for Late Payment. All liability resides with the Contractor for late payment to subcontractor(s).

5.9 Contingency Plan. The Contractor will provide a business resumption and contingency plan in the event of a system failure.

5.10 American Rescue Plan (ARP) Refinance Appraisals.

5.10.1. Type of Appraisal. The type of appraisal will be a 1004 full appraisal unless USDA specifies another type of report. If the homeowner submits capital improvement (CI) and/or major deficiencies (MD) (provided by the field office to a portal provided by the contractor), significant improvements and/or major deficiencies are found during the inspection the appraiser will complete the capital improvement addendum and provide contributory values for each individual improvement or a statement of no contributory values for each CI or MD. The contractor must seek approval from USDA to downgrade to another type of report.

5.10.2. Invoicing. Other than recapture appraisals will be separately invoiced. For example, ARP Refinance appraisals will be separately invoiced with the designation of “ARP” on the invoice using the same format as the Recapture Invoice template.

· Invoices are due by the 10th of each month.

5.10.3. USDA Role. The Field Offices will provide prior appraisal, Deed of Trust, homeowner contact information, capital improvements, parcel and map information. For some properties (US territories/Puerto Rico) location map and/or CRIM data will be provided additionally. This information will be provided via a vendor supplied portal. If the Vendor receives this information prior to receiving an official order (request), the vendor will hold these documents until the official order is received. If the official order is not received within 5 days of receiving the documents, the vendor will communicate this electronically for USDA follow up.

Authorized ordering officials (COR) will place orders through SharePoint or other method determined by the Government. The vendor will match these orders with information received through their portal from the Field Offices.

5.10.4. Timeframe. The vendor will contact the homeowner prior to scheduling an appointment, based on the information provided by the Field Office in the vendor portal. The Vendor will make a consistent effort during a full week to contact the homeowner to schedule an interior inspection. (Once an appointment is made, an Interior Appraisal can commence.

No calls before 7:00am and after 8:00pm local time of the location of the dwelling. If the contractor does not speak to the homeowner, the contractor will inform USDA through current methods.

The vendor will contact the homeowner a minimum of 3 times on 3 different days at varying times during the first week after acceptance of the order to set up an interior inspection. If no contact can be made, the contractor will inform USDA by electronic notification.

Once accepted with all documents, all ARP appraisals will be delivered to USDA within 14 days.

5.10.5. Acknowledge of Assignment. Once all information is submitted the Vendor will have 3 days to accept. The contractor will provide through electronic communication of missing items/documents to USDA.

5.10.6. Status Reports. The contractor will include ARP refinance appraisals to the weekly reports. The refinance appraisals will be listed separately. The contractor will provide a weekly status report like the report provided for origination orders.

6. PERIOD OF PERFORMANCE:

A single-award Indefinite Delivery Indefinite Quantity (IDIQ) will be awarded with a five- year ordering period. The effective date for this IDIQ is the date that the Contracting Officer executes the signed IDIQ Contract.

7. PLACE OF PERFORMANCE: Services will be performed in all 50 United States, in addition to the U.S. Territories of Puerto Rico, the Virgin Islands, and the Western Pacific Islands.

8. PERFORMANCE REQUIREMENTS SUMMARY:

Delivery of all types of ARP appraisals within 14 days after receipt of all required documents.

Meet required service level (98%).

Delivery of all non-urgent recapture appraisals within 20 days of order (see definition of “non-urgent” in Appendix).

Meet required service level (98%).

2%

Utilize Contractor online system or electronic source to view data response to process transaction services.

Delivery of all non-urgent Subsidy Recapture appraisals within 20 days of order after the 30- day hold time to receive Capital Improvements by the borrower.

Meet required service level (98%).

Utilize Contractor online system or electronic source to view data response to process transaction services.

Problem Resolution - 4 hours to respond and 8 hours to complete resolution proposal acceptable to RD.

Meet required service level (98%)

Utilize Contractor online system or electronic source to view data response to process transaction services.

Delivery of all appraisals accurately based off delivery schedule.

Meet required service level (99%).

1%

Utilize Contractor online system or electronic source to view data response to process transaction services.

9. POST AWARD CONFERENCE/PERIODIC PROGRESS MEETINGS:

The Contractor agrees to attend any post award conference convened by the contracting activity or contract administration office in accordance with Federal Acquisition Regulation Subpart 42.5. The CO, COR, and other Government personnel, as appropriate, may meet periodically with the Contractor to review the Contractor's performance. At these meetings the CO will apprise the contractor of how the government views the contractor's performance, and the contractor will apprise the Government of problems, if any, being experienced. Appropriate action will be taken to resolve outstanding issues. These meetings will be at no additional cost to the government.

10. CONTRACTING OFFICER REPRESENTATIVE (COR): The COR will be identified by a separate letter with the issuance of a Task Order. The COR monitors all technical aspects of the contract and assists in contract administration. The COR is authorized to perform the following functions:

· Assure that the Contractor performs the technical requirements of the contract

· Perform inspections necessary in connection with contract performance

· Maintain written and oral communications with the Contractor concerning technical aspects of the contract

· Issue written interpretations of technical requirements, including Government drawings, designs, specifications

· Monitor Contractor's performance and notifies both the Contracting Officer and Contractor of any deficiencies

· Coordinate availability of government furnished property, and provide site entry of Contractor personnel

A letter of designation will be issued to the COR identifying the responsibilities and limitations associated with the contract/order especially regarding changes in cost or price, estimates or changes in delivery dates. A copy of this letter of designation will be sent to the contractor. The COR is not authorized to change any of the terms and conditions of the contract or resulting orders.

11. DATA RIGHTS: The Government has unlimited rights to all documents/material produced under this contract. All documents and materials, including the source codes of any software produced under this contract will be Government owned and are the property of the Government with all rights and privileges of ownership/copyright belonging exclusively to the Government. These documents and materials may not be used or sold by the Contractor without written permission from the Contracting Officer. All materials supplied to the Government will be the sole property of the Government and may not be used for any other purpose. This right does not abrogate any other Government rights.

12. ORGANIZATIONAL CONFLICT OF INTEREST: Contractor and subcontractor personnel performing work under this contract may receive, have access to, or participate in the development of proprietary or source selection information (e.g., cost or pricing information, budget information or analyses, specifications or work statements, etc.) or perform evaluation services which may create a current or subsequent Organizational Conflict of Interests (OCI) as defined in FAR Subpart 9.5. The Contractor will notify the Contracting Officer immediately whenever it becomes aware that such access or participation may result in any actual or potential OCI and will promptly submit a plan to the Contracting Officer to avoid or mitigate any such OCI. The Contractor’s mitigation plan will be determined to be acceptable solely at the discretion of the Contracting Officer. In the event the Contracting Officer unilaterally determines that any such OCI cannot be satisfactorily avoided or mitigated, the Contracting Officer may affect other remedies as he or she deems necessary, including prohibiting the Contractor from participation in subsequent contracted requirements which may be affected by the OCI.

13. FEDERAL ACQUISITION REGULATIONS 52.204-9 PERSONAL IDENTITY VERIFICATION OF CONTRACTOR PERSONNEL.

Personal Identity Verification of Contractor Personnel (Jan 2011)

(1) The Contractor shall comply with agency personal identity verification procedures identified in the contract that implement Homeland Security Presidential Directive-12 (HSPD- 12), Office of Management and Budget (OMB) guidance M-05-24 and Federal Information Processing Standards Publication (FIPS PUB) Number 201.

(2) The Contractor shall account for all forms of Government-provided identification issued to the Contractor employees in connection with performance under this contract. The Contractor shall return such identification to the issuing agency at the earliest of any of the following, unless otherwise determined by the Government:

(a) When no longer needed for contract performance.

(b) Upon completion of the Contractor employee’s employment.

(c) Upon contract completion or termination.

(3) The Contracting Officer may delay final payment under a contract if the Contractor fails to comply with these requirements.

(4) The Contractor shall insert the substance of this clause, including this paragraph (d), in all subcontracts when the subcontractor’s employees are required to have routine physical access to a Federally controlled facility and/or routine access to a Federally controlled information system. It shall be the responsibility of the prime Contractor to return such identification to the issuing agency in accordance with the terms set forth in paragraph (b) of this section, unless otherwise approved in writing by the Contracting Officer.

Appendix

DEFINITIONS:

Alternative Valuation Report – (a report provided by the vendor and approved for use by USDA) is a type of appraisal relying on data obtained from alternative methods or sources to identify property characteristics and condition. For USDA, exterior photos of the property and comparable sales data is required in the report.

Broker’s Price Opinion – used primarily in short sales and foreclosures. It is an opinion which does not constitute an official appraisal nor represent the corresponding market value of the property.

Certified Real Estate Appraisal - appraisal report signed and certified by a state certified real estate appraiser or state licensed real estate appraiser.

Day(s) - Throughout this Performance Work Statement (PWS) “day” and “days” mean business day(s) unless otherwise specified.

Disposition Value - The most probable price that a specific interest in a property should bring under the following conditions:

· Consummation of a sale within a specified period, which is shorter than the typical exposure time for such a property in that market

· The property is subjected to market conditions prevailing as of the date of valuation

· Both buyer and seller are acting prudently and knowledgeably

· The seller is under compulsion to sell

· The buyer is typically motivated

· Both parties are acting in what they consider to be their best interest

· An adequate marketing effort will be made during the exposure time

· Payment will be made in cash in US dollars (or local currency) or in terms of financial arrangements comparable thereto

· 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

Liquidation Value – Liquidation appraisals may be needed to support loan foreclosure actions or to determine a disposition plan for real estate owned (REO) properties.

Liquidation Value is defined as:

The most probable price that a property should bring under the following conditions:

· Consummation of a sale within a short time period

· The property is subjected to market conditions prevailing as of the date of valuation

· Both buyer and seller are acting prudently and knowledgably

· The seller is under extreme compulsion to sell

· The buyer is typically motivated

· Both parties are acting in what they consider to be their best interests

· A normal marketing effort is not possible due to the brief exposure time

· Payment will be made in cash in US dollars (or the local currency) or in terms of financing arrangements comparable thereto

· 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.

Market Value - Means the most probable price which a property should bring in a competitive and open market under all condition’s 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:

· Buyer and seller are typically motivated

· Both parties are well informed or well advised, and acting in what they consider their own best interests

· A reasonable time is allowed for exposure in the open market

· Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto

· 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.

Reasonable business effort - The vendor will contact the homeowner a minimum of 3 times on 3 different days at varying times during the first week after acceptance of the order to set up an interior inspection.

· No calls before 7:00 a.m. and after 8:00 p.m. local time to the location of the dwelling. Exception, the homeowner provides specific instructions to be contacted after or before the previous stated hours.

· Morning is considered from 7:01 a.m. to 10:59 a.m.

· Afternoon is considered from 11:00 a.m.to 3:00 p.m.

· Evening is considered for 3:01 p.m. to 7:59 p.m.

· If the contractor does not speak to the homeowner, the contractor will inform USDA by electronic notification.

· Under normal circumstances, other means of communication may be utilized to contact homeowners but will not be considered as substitute for phone calls.

Non-urgent Appraisals - Appraisals completed and submitted to USDA within the established time limit established in this document.

Urgent Appraisals - Appraisals specifically identified by CO (COR at CO discretion) that need to be completed and submitted to USDA before the established time limits of 14 days for ARP appraisals and 20 days for routine Recapture appraisals.

Western Pacific – United States territories in the Western Pacific include but is not limited to, the Northern Marianas Islands, Mashal Islands, Federated States of Micronesia, and American Samoa.