Question_and_Answers_6-7-13.pdf

U.S. Department of Housing and Urban Development Washington, D.C. 20410

OFFICE OF THE CHIEF PROCUREMENT OFFICER

Visit our web page at http://www.hud.gov/offices/cpo/index.cfm

Questions and Answers in respond to Industry Day for the Multifamily Mortgage Loan and Property Management Reference No. 2013-106

1. For the requirements in Section 4, please confirm whether the requirement is to provide property level payable and receivables review and tracking as well as oversight of the property management company?

Response: Yes, all accounting transactions are recorded individually, at the note or property level, based on the associated FHA project number. The Service Provider is not required to oversee HUD’s contract property manager for HUD-owned and Mortgagee-In-Possession (MIP) properties.

2. Is the contractor required to analyze the ability of each property to pay its expenses?

Response: HUD has contracted property managers to manage property assets.

3. Is the current contractor providing oversight on this level?

Response: The purpose of this RFI is to seek input from industry on how organizations propose to meet the service requirements as outlined. The Industry Day is to exchange information with industry to obtain information, technology for planning purposes only.

The purpose of exchanging information is to improve the understanding of Government requirements and industry capabilities, thereby allowing potential offerors to judge whether or how they can satisfy the Government’s requirements, and enhancing the Government’s ability to obtain quality supplies and services at a reasonable prices, and increase efficiency.

4. For the reporting related to the requirements in Section 4, is the expectation that the service provider will make the information available to HUD using periodic reports or by providing access to a database or application?

Response: Yes. All financial data will be made available to HUD. Yes, there are recurring, periodic report requirements; examples were provided. The requirements also state that “the reports must be printable, viewable on a PC and/or downloadable in MS Excel, as applicable.” You may explain any services your company might provide that would be a benefit to the government.”

5. Does the requirement for the service provider to maintain a complete mortgage history of all collections, disbursement and adjustments apply to loans and transactions from the effective date of the new contract, or does HUD expect the provider to convert and maintain all prior history in addition to post award transactions?

Response: The complete mortgage and property history must be maintained from acquisition by HUD until the asset is terminated. See Question 3

6. Section 2 references the requirement for a Document Custodian. The assumption is that all related documents would transfer to the new Document Custodian. How will the cost for this transition be handled?

Response: See Question 3

7. Can HUD provide figures related to the volume of documents?

Response: Approximately 6 inches of filed documents per note in the inventory.

8. Do electronic images currently exist for such documents and will data related to the images be transferred?

Response: Legal documents are imaged, but must also be maintained in hard copy and would be part of any data transfer.

9. Section 2 references interfacing with HUD’s lockbox facility as well as the PCPM contractor. For each, is there only one such provider or more than one? Who are the current lockbox facility provider and PCPM contractor?

Response: See Question 3.

10. For the Multifamily business functions, will HUD expect the contractor to be paid on a per asset basis or basis points applied to the unpaid principal balance of the loan?

Response: See Question 3

11. The introductory section states that interested parties are to respond with their “Capability Statement” to the RFI within 5 business days after the Industry Day. I did not see a description of or format for the Capability Statement in terms of what it is to contain and address. Will this requirement be described or detailed further at the Industry Day?

Response: There is no format.

12. Would HUD be considering a single service provider to handle this entire assignment, or might HUD consider either splitting the assignment up (by function type) amongst various providers or alternatively splitting up the entire portfolio and all services amongst various providers?

Response: HUD welcomes any new ideas or suggestions. See Question 3.

13. What is HUD’s stance on service providers contracting with other vendors to provide certain components of the broader services needs requested? An example would be establishing a relationship with a document custodian to store original legal instrument.

Response: You may explain any services your company might provide that would be a benefit to the government.” See Question 3.

14. For the Mark to Market and Demo Notes that have annual billings and collections based on Surplus Cash calculations analysis and review, will the Post Closing Portfolio Management contractor continue to provide this service or might this service be merged into the servicing and accounting function for these notes?

Response: See the Business Needs RFI and Question 3

15. Under Business Needs #2: OAHP – Servicing and Accounting functions for the Mark to Market and Demo Notes, there is a requirement to provide OAHP staff system access in real time. Is this access envisioned to be view only with ability to query and export data, or will OAHP staff need to be inputting data within the system?

Response: Presently OAHP staff has the ability to view, query and export data, but does not input data. Staff can flag items for tracking/follow-up.

16. The Response Due Date states June 14, 2013 at 5:00 pm Eastern. However the Capability Statement to the RFI is due within 5 business days after the Industry Day.

Can you please confirm that the Capability Statement is Due May 8th and the time that it is due.

Response: Capability Statement is extended to May 24, 2013 at 4:00 p.m.

17. As new federal requirements are enacted, will task orders to the base contract be issued to cover the cost of system and process modifications necessary to meet the new requirements or are costs for these types of modifications to be included in the contract price?

Response: See Question 3.

18. Since federal, legal and regulatory requirements are not listed in this RFI, will HUD distribute all of its business rules and performance standards on Industry Day in order to enable vendors to adequately respond to this RFI?

Response: No. You may explain any services your company might provide that would be a benefit to the government.” See Question 3

19. Does the RFI contain the complete list of interfaces? If not, can you specify all interfaces required and whether they are manual or electronic?

Response: No. See Question 3

20. Does the Government plan to require system demonstrations as part of any procurement?

Response: See Question 3.

21. The RFI requires the vendor to “process and apply collections received monthly for payments due including loans with special provisions.” Will HUD please describe the special provisions and business rules necessary for these loans?

Response: All payments, full or partial, are applied, and this application is in a defined sequence of accounts, and in an order that clears delinquency before application to the next account in the sequence. Special provisions also include workouts, modifications, cash flow and payments to special escrow accounts.

22. Can the vendor market other products and services to the mortgagors, tenants and property managers?

Response: See Question 3

23. Can the vendor collect interest on the escrows invested in overnight treasuries?

Response: No

24. Can you speak to system requirement or system upgrades associated with the servicing engagement?

Response: The service provider is in charge of installing and configuring their infrastructure and the software used on the infrastructure. FISMA states as part of the steps to be used by a vendor that oversees the management of Federal assets that the vendor is to keep their infrastructure and software versions current enough to be supported by their manufacturers.

25. Please describe technology or technologies involved?

Response: The service provider has discretion regarding proposed technologies. The service is hosted outside of HUD’s infrastructure.

26. Please go over any specific Bank account setup that a joint venture response to any future RFP that a HUD mortgage & its joint venture Section 8a or Woman Minority Business. Partner might need to establish in order to bill, receive payments, and disburse payment through whether it’s a bank account or a U.S. Treasury account.

Response: See Question 3

27. Will lenders need to have access to each loan annual audit?

Response: Question is not clear.

Will lender need to arrange universal REAC physical inspection?

Response: No. REAC inspections are initiated by HUD.

28. Is URL address available for webcast attendees?

Response: Yes, Industry Day Part 1 http://youtu.be/hnI4daTm_3I

Industry Day Part 2 http://youtu.be/UNVyefEHyNI

29. Will you be sharing the presentation on fedbitzopps?

Response: Yes, presentation was posted on fedbitzopps May 10, 2013.

30. Can you announce/email out webcast attendees the URL address they need to click on to access the webcast?

Response: All webcast attendee were email the URL address.

31. What are the challenge opportunity for improvement with you current process?

Response: See Question 3

32. You have expressed multiple time the complexity of the servicing requirements current in place can you provide some indication of the magnitude or complexity using for example:

(1) Number of variations in terms or business rules (count) No

(2) Level of Effort Response: See question 3

(3) Whether HUD has a list of the current business rules.

Response: (3) There is no list available.

33. Would lender be responsible for auditing property manager’s payrolls or simply reporting to HUD?

Response: HUD will approve staffing levels and pay rates for each HUD-owned or MIP property. The service provider will be responsible for ensuring that payroll reimbursement requests are in conformity with HUD’s approved payroll and reimbursing the property manager accordingly.

34. Would lender be responsible for performing on site “DOL-like Davis Bacon Act laborer interview where HUD has chosen to let rehab F/C or MIP held projects?

Response: No.

35. Will all UCC scanning be done on site at HUD Fort Worth? Or will lenders be allowed to sign out the documents scan off site and return?

http://youtu.be/hnI4daTm_3I http://youtu.be/UNVyefEHyNI

Response: See Question 3.

36. Do monthly statements have to go out in paper or compressed by email). If so can we include other material in it?

Response: You may explain any services your company might provide that would be a benefit to the government.” See Question 3. There should be no marketing/conflict of interest materials included in the billing statements. HUD cannot appear to be representing any type of marketing of the vendor.

37. The RFI lists 6 business needs. Are they all addressed in a single relational database or are their multiple databases?

Response: Single relational database/transaction system with the exception of the Section 202/811 data.

38. What Data Base Management System (DBMS) and version is used to implement the databases?

Response: The DBMS should be one of those supported by HUD’s Technical Reference Model. Beyond that, it is up to the vendor’s discretion to define the structure of their data records.

39. Is the database(s) normalized and operating in a satisfactory manner with respect to automatically maintaining the required data relationships so that they are not subject to insertion, update, and deletion anomalies?

Response: The service provider is to provide a DBMS that is safe-guarded from intrusion and compromise. As this is an externally hosted environment, the responsibilities for the Database structure/format/content may be within the service provider’s organization.

40. Does HUD have any information on the structure and design of the database(s) with respect to the relationship tables, attributes, and keys?

Response: The database is not hosted within HUD’s infrastructure and is controlled by the current support provider. Please explain any services your company might provide that would be a benefit to the government.”

41. What hardware, software, and OS are currently used to host the existing system and where is it located?

Response: This is proprietary information.

41. Would it be possible to see the system at its location?

Response: No. This is not a HUD-owned system.

43. Would HUD consider the implementation of a Cloud based DBMS that is FedRAMP compliant?

Response: HUD is open to review capability statement that address the Multifamily Housing business requirements. You may explain any services your company might provide that would be a benefit to the government.” Using a Cloud-based DBMS is acceptable.

44. What is the current Security Categorization Level of the existing HUD Relational Database(s?)

Response: HUD does not own nor provide support to the databases used by the current organizational service provider. Databases in and of themselves are categorized by the data content and the sensitivity of the information they contain.

45. Has it undergone a Certification & Accreditation (C&A) based on NIST SP 800-37 and if so when was it done last?

Response: This is proprietary information

46. Is the data in the current database unclassified or Sensitive but Unclassified?

Response: Sensitive but unclassified.

47. Is there any Privacy Act, HIPAA, or Proprietary data within the database?

Response: Yes, TINs and SSNs

48. Will the service provider be responsible for developing and supporting all C&A documentation including Security Plan, Contingency Plan, Contingency Test Plan and Procedures, Interconnection Security Agreements, Privacy Impact Assessment, Security Assessment Plan and Procedures, Risk Assessment, Requirements Traceability Matrix, etc.

Response: Yes.

49. Does HUD utilize any automated C&A Support tools such as RMS or Xacta?

Response: The OITS uses DOJ CSAM tool for conducting C&A’s. We also have RMS (Risk Management System) in our inventory.

50. Does HUD have any additional agency specific Information Assurance requirements other than NIST SP 800-37 and if so, where are they defined?

Response: FIPS 199 and 200 are mandatory federal standards developed by NIST in response to FISMA. Applicable NIST Special Publications (SP) is 63, 53, 37, 30, 18, and 16.

51. Is the HUD XBRL (Extensible Business Reporting Language) database being used to provide financial information?

Response: Data exchange is application specific – defined to meet the needs of the given receiving application’s ability to input batch or on-line feeder transactions. Most data exchange is specific to the given system’s input format. HUD does not have an XBRL database. HUD uses XML V5 for applications that are configured to support this type of transaction.

52. Do HUD officials have any problems using the XBRL database system?

Response: Please explain any hardware/software your company might provide that would be a benefit to the government.” Defined in HUD’s technical reference model (access via http://HUD.gov, search on “TRM”).

53. Is there a single family and/or multifamily rental management component to this request? Or are these strictly for loan servicing?

Response: There is no single family component. Properties that are either Mortgagee- In-Possession (MIP) or HUD-owned would be managed by the Department’s Property Management and Relocation.