Draft Statment of Work_ COSTAR.pdf

Statement of Work (SOW)

Multifamily Project Occupancy Rent and Sales Data Subscription

Vision Statement

The vision of this requirement is to obtain contractor support for the U.S. Department of

Housing and Urban Development (HUD), Federal Housing Administration (FHA), to provide on-line subscription access to comply with statutory requirements regarding Capital Ratios, Budget Re-estimates and Credit Reform.

1 Introduction

HUD requires a provider of an commercially available database that provides access to many up-to-date multifamily housing rents and occupancy levels updated at least annually in primary, secondary and tertiary metropolitan markets. Housing uses the data to help comply with statutory requirements regarding Capital Ratios, Budget Re-estimates and Credit Reform

1.1 Mission

The Department of Housing and Urban Development (HUD), uses the data to help comply with statutory requirements regarding Capital Ratios, Budget Re-estimates and Credit Reform.

1.2 Background

The Department of Housing and Urban Development (HUD) insures an average of approximately $40 billion in multifamily rental projects each year. In doing so, it evaluates the market absorption potential for these projects and how they relate to existing projects in the market. HUD has two objectives. One is to avoid financing projects in markets where it is anticipated there will be an excess supply of rental units by the time the project is completed, thereby reducing the risk of default for the proposed project. The other is to avoid increasing vacancy levels above desired levels in the market to reduce the risk to financial viability of existing rental projects, some of whose mortgages HUD may have insured.

Most of HUD's multifamily mortgage business is concentrated in metropolitan areas, especially large, fast-growing areas. Detailed information on the location, type, rents, and vacancy rates of existing and newly developed multifamily rental projects is highly valuable in estimating the impacts and potential absorption of rental projects applying for HUD mortgage insurance or subsidy assistance. A limited amount of rental vacancy rate data is available from the Bureau of the Census. This information is collected in greater detail for multifamily rental projects by a limited number of firms that sell it to interested parties in a standardized format. HUD is interested in purchasing such data to assist it in carrying out its market analysis functions.

1.3 Scope

The purpose of this action is to purchase a commercially available database that provides access to many up-to-date multifamily housing rents and occupancy levels updated at least annually in primary, secondary and tertiary metropolitan markets. The subscription service provides data that

Version Date 2/14/2019 is essential to completing the short turnaround tasks and analyses required by the Department.

This data meets the Departments objectives of being available in a variety of forms. Support is provided on the use of this data service and on means to adapt it to the Department's requirements.

2 General Requirements

The subscription vendor shall furnish the necessary professional, technical and clerical services equipment and facilities to provide housing and economic information and forecasts with project level detail. The information provided electronically shall be screen-readable, in compliance with

Section 508 of the Rehabilitation Act Amendments of 1998 (29 U.S.C. 794(d)) as enacted in the

Workforce Investment Act of 1998.

Subscription Details:

The vendor shall furnish the following services:

Access to this database shall be provided for up to Six (6) users.

I. Housing Market Analysis Data

All rent comparability, submarket and metropolitan market report for 165 primary, secondary and tertiary metropolitan multifamily markets, including quarterly executive- level summary data, rankings and analyses on U.S. and regional markets, as well as a variety of special research studies. For the 50 primary metropolitan markets, this data includes:

A. Details on supply, demand, vacancies, rents, and related market indicators on metropolitan markets for the multifamily, office, retail and industrial sectors.

Submarket-level detail for multifamily, office and retail markets are included. Annual and quarterly trends are presented, along with five-year forecasts. Now updated monthly. Available in Adobe Acrobat (pdf) and Excel (xls) formats.

B. Metropolitan market and submarket details on supply, demand, rents and vacancies for Class A and B/C properties for the multifamily and office sectors.

Annual and quarterly trends are presented. Now updated monthly. Available in

Excel (xls) formats.

C. Aggregate and property-specific rent comp group reports including rents and vacancies, in addition to five-year historical trends for aggregate rent comp groups for the multifamily, office and retail sectors. Now updated monthly. Available in

Adobe Acrobat (pdf) and Excel (xls) formats.

D. Individual property sales, including transaction and property characteristics for multifamily, office, retail and industrial sectors. Updated weekly.

E. Economic and real estate analysis in narrative form on most metropolitan areas. The reports discuss key multifamily, office, retail and industrial supply and demand trends in each metropolitan market, pinpoint under-performing and outperforming submarkets. Now updated monthly. Available in Adobe Acrobat (pdf) format.

F. Current market indicators across all submarkets in each metropolitan market, including rents, vacancies, free rent concessions, and expenses for multifamily, office and retail sectors. Now updated monthly. Available in Excel (xls) format.

G. Building-level listings and summary statistics for submarkets and metropolitan markets are presented of planned/proposed, projects under construction and recently completed for the multifamily, office and retail sectors. Now updated monthly.

H. Daily real estate and economic stories are posted from the leading local newspapers and periodicals across the nation, initially coded into relevant metropolitan markets and topic categories (e.g. multifamily construction). A searchable 90-day archive is maintained. Updated daily. Available in an HTML format.

II. Data Files

EXCEL data files with supply demand and rent time series data (from 1980 in most markets) for the Primary Markets and selected market aggregations are extractable for all database variables for the 30 secondary metropolitan markets data and reports provided in the following:

(a), but without the forecasts;

(c), but without the historical trends; and

(g) and (h) are available.

For the 85-tertiary metropolitan markets the information provided is the same as for the secondary markets, with less submarket details and historical data is limited to the past 3-4 years.

III. Sales Comp Module

A database of apartment transactions valued at $2 million or more in all 80 primary and secondary markets and for 85 tertiary markets.

IV. Transaction Analytics Module

This is a database that includes sales transaction activity. It provides mean, median and 12-month-rolling cap rates, sales price data by price per unit or square foot, and total transaction volume. Transaction trends are available by quarter back to 2005 for metropolitan areas, regions, and the U.S. This module also provides data on top deals, with buyer and seller information, and on key submarket transaction activity. HUD will use this information to identify sales and capital market trends in the multifamily real estate market and assess troubled debt.

V. Single Property Valuation Tool

Allows the user to enter their assumptions or observations on current building performance, select a variety of forecast options based on observations and predictions at the submarket and metro levels, and select some final assumptions in terms of terminal cap rates, additional income and other variable affecting property value. The end result is three distinct market values based on the DCF, Sales Comp and Direct Cap methodologies.

VI. Expanding Markets

Currently FHA has access to 200 apartment markets throughout the United States. With this acquisition HUD will have access to an additional 75 markets.

2.1 Non-Personal Services

The Government shall neither supervise contractor employees nor control the method by which the contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual contractor employees. It shall be the responsibility of the contractor to manage its employees and to guard against any actions that are of the nature of personal services or give the perception of personal services. If the contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the contractor's responsibility to notify the Procuring Contracting Officer (PCO) immediately.

2.2 Business Relations

The contractor shall successfully integrate and coordinate all activity needed to execute the requirement. The contractor shall manage the timeliness, completeness, and quality of problem identification. The contractor shall provide corrective action plans, proposal submittals, timely identification of issues, and effective management of subcontractors. The contractor shall seek to ensure customer satisfaction and professional and ethical behavior of all contractor personnel.

2.3 Contract Administration and Management

The following subsections specify requirements for contract, management, and personnel administration.

2.3.1 Contract Management

The Contractor shall establish clear organizational lines of authority and responsibility to ensure effective management of the resources assigned to the requirement. The contractor must maintain continuity between the support operations at Department of Housing & Urban development (HUD) and the contractor's corporate offices.

2.3.2 Contract Administration

The contractor shall establish processes and assign appropriate resources to effectively administer the requirement. The contractor shall respond to Government requests for contractual actions in a timely fashion. The contractor shall have a single point of contact between the Government and Contractor personnel assigned to support contracts or task orders.

The contractor shall assign work effort and maintaining proper and accurate time keeping records of personnel assigned to work on the requirement.

2.3.3 Personnel Administration

The contractor shall provide the following management and support as required. The contractor shall provide for employees during designated Government non-work days or other periods where Government offices are closed due to weather or security conditions. The contractor shall maintain the currency of their employees by providing initial and refresher training as required to meet the PWS requirements. The contractor shall make necessary travel arrangements for employees. The contractor shall provide necessary infrastructure to support contract tasks. The contractor shall provide administrative support to employees in a timely fashion (time keeping, leave processing, pay, emergency needs).

2.4 Subcontract Management

The contractor shall be responsible for any subcontract management necessary to integrate work performed on this requirement and shall be responsible and accountable for subcontractor performance on this requirement. The prime contractor will manage work distribution to ensure there are no Organizational Conflict of Interest (OCI) considerations. Contractors may add subcontractors to their team after notification to the Procuring Contracting Officer (PCO) or

Contracting Officer Representative (COR). Cross teaming may or may not be permitted.

2.5 Contractor Personnel, Disciplines, and Specialties

The contractor shall accomplish the assigned work by employing and utilizing qualified personnel with appropriate combinations of education, training, and experience. The contractor shall match personnel skills to the work or task with a minimum of under/over employment of resources. The contractor shall ensure the labor categories as defined in the Labor Categories document (see attachment), labor rates, and man-hours utilized in the performance of each Task

Order (PWS line item) issued hereunder will be the minimum necessary to accomplish the task.

The Contractor shall provide the necessary resources and infrastructure to manage, perform, and administer the contract.

2.6 Location and Hours of Work

The Contractor shall provide services 24 hours per day, 7 days per week, Monday through

Friday except Holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. Normal workdays are Monday through Friday except US Federal Holidays.