36C10E19Q0242-001.pdf

I. GENERAL INFORMATION

A. Title of Project: Regulatory Drafting and Impact Analysis Consulting Services

B. Scope of Work:

1. The contractor shall provide all resources necessary to accomplish the deliverables described in the statement of work (SOW), except as may otherwise be specified. Specific regulatory project needs are subject to change based on LGY, VBA, and VA leadership priorities. Currently, however, regulatory and economic analysis services are needed to support the following priority projects:

2. Regulatory Implementation of Public Law 115-174

3. Analyzing public comments received during interim final rule comment periods; assessing changes to final rule based on comments; preparing final rule and corresponding regulatory impact analysis based on updated data collected.

4. Drafting proposed rule addressing VA interest rate reduction refinance loans (IRRRLs), qualified mortgage (QM) status, and lender fees and charges; preparing regulatory impact analysis for rule; supporting the Office of Management and Budget (OMB) clearance process.

5. Enforcement Regulations Package

6. Assessing impact of policies related to implementing an enforcement suite that includes lender scorecards, lender lockout, limited denial participation, and penalties; drafting regulatory package and impact analysis to support OMB clearance process.

7. Assessing impact of policies related to implementing an appraisal panel renewal and removal process; drafting regulatory package and impact analysis to support OMB clearance process.

8. Administrative Law Judge (ALJ)

9. Servicer Tier Ranking with incentives for successful loss-mitigation

10. Regardless of the specific project, the following consulting services will be required:

11. Analyzing agency objectives and implications of alternative policies

12. Technical writing and editing in drafting regulations, information collection requests, and regulatory impact analyses

13. Supporting compliance with the Administrative Procedure Act (APA) and applicable statutory requirements and executive orders

14. Analyzing and summarizing public comments

15. Conducting regulatory impact analyses, to include research, collecting, and analyzing pertinent internal and external housing and economic data

C. Background: Loan Guaranty Service (LGY) is working on a number of high priority regulations designed to ensure VA home loans remain competitive with other mortgage products while providing appropriate protections for Veterans and military borrowers. Because the regulatory process can take upwards of 18-24 months under the best of circumstances, it is critical that LGY maintain momentum on these projects. While LGY currently has two full-time employees (FTEs) whose primary duties include regulation development and drafting, they are also responsible for other policy-related activities such as legislative views, proposals, and technical assists, Freedom of Information Act (FOIA) requests, and special projects, as appropriate. The contractor will provide experience in drafting economic analysis documents that conform with all applicable laws, regulations, directives, and Executive Orders.

Recent interactions with the OMB, to include its latest review of LGY’s interim final rule on VA cash-out refinance loans, revealed that future VA regulatory impact analyses will require more robust economic analyses that are on par with agencies that have teams solely devoted to economic forecasting and data analysis. Contractors will review non-sensitive information at a Low Risk nature for background information purposes. The C&A requirements do not apply, and that a Security

Accreditation Package is not required.

D. Performance Period: The period of performance is one year, from date of award. Work at the government site shall not take place on Federal holidays or weekends unless directed by the Contracting

Officer (CO).

E. Type of Contract: Firm-Fixed Price

F. Place of Performance: Work must be performed at the government’s site. 1800 G Street NW

Washington, DC 20006

II. CONTRACT AWARD MEETING

The contractor shall not commence performance on the tasks in this SOW until the CO has conducted a kick off meeting or has advised the contractor that a kick off meeting is waived.

III. GENERAL REQUIREMENTS

A. For every task, the contractor shall identify in writing all necessary subtasks (if any), associated costs by task, together with associated submilestone dates. The contractor's subtask structure shall be reflected in the proposal and detailed project management plan (PMP).

B. All written deliverables will be phrased in layperson language. Statistical and other technical terminology will not be used without providing a glossary of terms.

C. Where a written milestone deliverable is required in draft form, the VBA will complete their review of the draft deliverable within 5 calendar days from date of receipt. The contractor shall have 3 calendar days to deliver the final deliverable from date of receipt of the government’s comments.

IV. SPECIFIC MANDATORY TASKS AND ASSOCIATED DELIVERABLES

A. Description of Tasks and Associated Deliverables: The contractor shall provide the specific deliverables described below within the performance period stated in this Section of this SOW.

B. Task One: The contractor shall provide a detailed PMP and briefing for the project team, which presents the contractor's plan for completing the task order. The contractor's plan shall be responsive to this SOW and describe, in further detail, the approach to be used for each aspect of the task order as defined in the proposal. The contractor shall keep the PMP up to date throughout the period of performance.

1. Deliverable One: A detailed PMP and briefing

C. Task Two: The contractor shall provide (1) Senior Economic Consultant, (1) Junior Economic

Consultant, and (1) Senior Regulatory Consultant

1. Deliverable Two: The Senior Economic Consultant will have at least 15 years of experience and training in drafting economic analysis documents and managing economic analysis projects to include the following knowledge and experience:

a) Supervising other staff

b) Serving as a liaison between the company’s staff members and client

c) Planning and managing long term projects involving junior staff members

d) from economic research to development of economic impact analysis for

e) proposed rulemaking and final rule documents

f) Knowledge of and expertise in economic impact analysis in conformance

g) with all applicable laws, regulations, directives, and Executive Orders

h) Knowledge of and expertise in housing and economic policy and data, to

i) include government housing programs such as FHA, VA, secondary

j) markets mortgage-backed securities, and conventional mortgage markets

2. The Junior Economic Consultant will have at least 6 years of experience and training in drafting economic analysis documents and conducting economic analysis projects to include the following knowledge and experience:

a) Participating in briefings and meetings with client

b) Participating in regulatory economic impact analysis projects, such as economic research, cost-benefit analysis, market research, and drafting impact analysis in conformance with all applicable laws, regulations, directives, and Executive Orders

c) Knowledge of and expertise in housing and economic policy and data, such as government housing programs such as FHA, VA, secondary markets, mortgage-backed securities, and conventional mortgage markets

3. The Senior Regulatory Consultant will have at least 10 years of experience and training in drafting regulatory documents and managing regulatory projects to include the following knowledge and experience:

a) Supervising other staff

b) Serving as a liaison between the company’s staff members and client

c) Planning and managing long term projects from research to development of regulatory documents, analysis of comments, and development of any related guidance and other regulatory materials

d) Knowledge of and expertise in applicable Administrative Procedure Act compliance and compliance with related statutes (e.g., Regulatory Flexibility Act, Paperwork Reduction Act), Presidential Executive Orders, and other relevant documents (e.g., OMB directives)

e) Knowledge and experience in meeting requirements of Federal Register publication

V. SCHEDULE FOR DELIVERABLES

A. The contractor shall complete the Delivery Date column in Attachment A for each deliverable specified.

B. Unless otherwise specified, the number of draft copies and the number of final copies shall be the same.

C. If for any reason the scheduled time for a deliverable cannot be met, the contractor is required to explain why (include the original deliverable due date) in writing to the CO, including a firm commitment of when the work shall be completed. This notice to the CO shall cite the reasons for the delay, and the impact on the overall project. The CO will then review the facts and issue a response in accordance with applicable regulations.

VI. CHANGES TO STATEMENT OF WORK

Any changes to this SOW shall be authorized and approved only through written correspondence from the CO. A copy of each change will be kept in a project folder along with all other products of the project. Costs incurred by the contractor through the actions of parties other than the CO shall be borne by the contractor.

VII. REPORTING REQUIREMENTS

A. The contractor shall provide the Contracting Officer Representative (COR) with monthly written progress reports. These are due to the COR by the second workday following the end of each calendar month throughout the project's duration.

B. The progress report will cover all work completed during the preceding month and will present the work to be accomplished during the subsequent month. This report will also identify any problems that arose and a statement explaining how the problem was resolved. This report will also identify any problems that have arisen but have not been completely resolved with an explanation.

VIII. GOVERNMENT RESPONSIBILITIES

The Government will provide, office space, telephone service, government-furnished equipment; and procedural guides, reference materials and program documentation.

IX. CONTRACTOR EXPERIENCE REQUIREMENTS – KEY PERSONNEL

A. These skilled experienced professional and/or technical personnel are essential for successful contractor accomplishment of the work to be performed under this contract and subsequent task orders and options. These are defined as key personnel and are those persons whose resumes were submitted.

The contractor agrees that the key personnel shall not be removed, diverted, or replaced from work without approval of the CO and COR.

B. Any personnel the contractor offers as substitutes shall have the ability and qualifications equal to or better than the key personnel being replaced. Requests to substitute personnel shall be approved by the COR and the CO. All requests for approval of substitutions in personnel shall be submitted to the

COR and the CO within 30 calendar days prior to making any change in key personnel. The request shall be written and provide a detailed explanation of the circumstances necessitating the proposed substitution. The contractor shall submit a complete resume for the proposed substitute, any changes to the rate specified in the order (as applicable) and any other information requested by the CO needed to approve or disapprove the proposed substitution.

C. The CO will evaluate such requests and promptly notify the contractor of approval or disapproval thereof in writing.

X. SECURITY

A. VA Information and Information System Security/Privacy Requirements

B. General

All Contractors and Contractor personnel shall be subject to the same Federal security and privacy laws, regulations, standards and VA policies as VA, including the Privacy Act, 5 U.S.C. §552a, and VA personnel, regarding information and information system security. Contractors must follow policies and procedures outlined in VA Directive 6500, Information Security Program; and VA Handbook

6500.6, Contract Security which are available at: http://www1.va.gov/vapubs and its handbooks to ensure appropriate security controls are in place.

C. Access to VA Information and VA Information Systems

1. VA will supply the Contractor with the minimum logical (technical) and/or physical access to

VA information and VA information systems for employees, sub-contractors:

a) to perform the services specified in the contract,

b) to perform necessary maintenance functions for electronic storage or transmission media http://www1.va.gov/vapubs necessary for performance of the contract, and

c) for individuals who first satisfy the same conditions, requirements, and restrictions that comparable VA employees must meet to have access to the same type of VA information.

2. All Contractors and subcontractors working with VA Sensitive Information are subject to the same investigative requirements as those of regular VA appointees or employees who have access to the same types of information. The level of background security investigation will be in accordance with VA Directive 0710, Handbook 0710, which are available at:

http://www1.va.gov/vapubs, and VHA Directive 0710 and Implementation Handbook 0710.01, which are available at: http://www1.va.gov/vhapublications/index.cfm . Contractors are responsible for screening their employees. The following are VA's approved policy exceptions for meeting VA background screenings/investigative requirements for certain types of Contractor personnel:

3. Contractor personnel not accessing VA information resources, such as personnel hired to maintain the medical facility grounds, construction contracts, utility system contractors, etc.

4. Contractor personnel with limited and intermittent access to equipment connected to networks on which no VA sensitive information resides

5. Contractor personnel with limited and intermittent access to equipment connected to networks on which limited VA sensitive information resides and with limited and intermittent access to facilities at which they are escorted

D. VA Information Custodial Requirements

1. VA information provided to the Contractor for either the performance or administration of this contract shall only be used for those purposes. No other use is permitted without the CO’s express written authorization. This clause expressly limits the Contractor’s rights to use data as described in Rights in Data - General, FAR 52.227-14(d)(1). The Government shall retain the rights to all data and records produced in the execution or administration of this contract.

2. Prior to termination or completion of this contract, Contractor will not destroy information received from VA or gathered or created by the Contractor in the course of performing this contract without prior written approval by the CO. A Contractor destroying data on VA’s behalf must do so accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management and its Handbook 6300.1 Records

Management Procedures, and applicable VA Records Control Schedules. All data and reports shall be transferred to VBA upon contract completion.

3. The Contractor shall not make copies of VA information, electronic or otherwise, except as necessary to perform the terms of the agreement or to preserve electronic information stored on

Contractor electronic storage media for restoration in case any electronic equipment or data used by the Contractor needs to be restored to an operating state.

4. The Contractor shall not use technologies banned in VA in meeting the requirements of the contract (e.g., Bluetooth-enabled devices).

E. Physical Security

If the contract requires taking VA data to a contractor site and the data contains Personally Identifiable

Information, the contractor will provide an independent physical security assessment of their facility to the COR prior to commencing work. General guidelines for physical security can be found in VA

Directive 0730, Section 6 (Physical Security) and VA Memorandum (subj: IT Oversight & Compliance

Information Physical Security Assessments) dated October 24, 2007.

http://www1.va.gov/vhapublications/index.cfm

F. Training

1. All Contractor and subcontractor personnel requiring access to VA information and VA information systems shall complete the following before being granted access to VA information and networks:

a) Sign and acknowledge understanding of and responsibilities for compliance with the

National Rules of Behavior related to access to VA information and information systems

b) Successfully complete VA Information Security Awareness training and annual refresher training as required

c) Successfully complete VA Privacy Awareness training and annual refresher training as required

d) Successfully complete any additional Information Security or Privacy training as required for VA personnel with equivalent information system access

2. The Contractor shall provide to the COR a copy of the training certificates for each applicable employee within 1 week of the initiation of the contract and annually thereafter, as required. These online courses are located at www.tms.va.gov/SecureAuth35 To self-enroll, click the “Create New

User” button on the red bar and complete the assigned training. The COR will provide the contractor with the appropriate information to complete self-enrollment. Technical issues with TMS should be directed to the Enterprise Service Desk at 1.855.673.4357.

3. Failure to complete this mandatory training within the timeframe required will be grounds for suspension or termination of all physical and/or electronic access privileges and removal from work on the contract until such time as the training is completed.

4. Contractor Personnel Security

a) All contract employees who require access to the VA site(s) and/or access to VA local area network (LAN) systems shall be the subject of a background investigation and must receive a favorable adjudication from the VA Security and Investigations Center (SIC). These requirements are applicable to all subcontractor personnel requiring the same level of

Background Investigation.

b) The level of background security investigation will be in accordance with VA Directive

0710 dated May 2, 2016 and is available at https://vaww.visn16.portal.va.gov/sites/lit/vasic/default.aspx.

5. Background Investigation

a) The contract employee level of background investigation required for this effort is:

[ENTER: NACI, MBI, BI or Background Investigation Not Required].

(1) VA shall bear the expense of obtaining background investigations or reciprocals of previous investigations held that meet or exceed the required investigation level. The cost of background investigations is based on the current Office of Personnel Management

(OPM) rate at the time the application is processed at OPM. VA will pay for investigations or reciprocals processed through the VA SIC and conducted by OPM in advance.

(2) Immediately after contract or task order award, the COR will provide the Contractor with the following background investigation documents to be completed by the Contractor and returned to the COR to begin the background investigation process for all contract employees working on the contract who will have access to VA facilities, VA systems, or privacy data:

http://www.tms.va.gov/SecureAuth35 https://vaww.visn16.portal.va.gov/sites/lit/vasic/default.aspx

Background Investigation Request Worksheet

Optional Form 306 – Declaration of Federal Employment

Fingerprint Request Form

(3) Upon receipt of the above-stated documents from the COR, the VSC will perform preliminary onboarding review and process the request through the SIC. Upon notification of favorable fingerprint results by the VSC, the contractor may begin work while the background investigation is ongoing. Thereafter, the Contractor will receive an email notification from the SIC identifying the website link that includes detailed instructions regarding completion of the background clearance application process in the Electronic

Questionnaires for Investigations Processing (e-QIP) system. E-QIP is an online, Internet accessible system where the contractor employee shall complete the security questionnaire required for OPM to process the background investigation.

(4) Contractors who have a current favorable background investigation previously conducted by OPM or Defense Security Service (DSS) may be accepted through reciprocation. When a previous clearance is currently held, it does not preclude the vendor from submitting a complete Background Investigation Package as stated above to the COR immediately after contract or task order award for all contract employees who will be working on the contract.

(5) The Contractor shall prescreen all personnel who require access to VA site(s) and/or access to VA LAN systems to ensure they maintain a U.S. citizenship or Alien Registration that authorizes them to work in the U.S. and are able to read, write, speak and understand the English language.

(6) Contract performance shall not commence before:

(a) The VSC has confirmed favorable fingerprint results, or

(b) SIC confirms that it has received the Contractor’s investigative documents, the documents are complete, and that the investigation information has been released to

OPM for scheduling of the background investigation, or

(c) VSC or the SIC has confirmed that the verified investigation will be reciprocated.

(7) The COR will notify and forward the Contractor a copy of the Certificate of Eligibility

(Form 4236) if the investigation has been reciprocated. The Contractor, if notified of an unfavorable adjudication by the Government, shall withdraw the employee from consideration from working under the contract. Failure to comply with the Contractor personnel security requirements may result in termination of the contract for default.

(8) The Contractor will be responsible for the actions of those contract and subcontract employees they provide to perform work for VA. In the event damage arises from work performed by Contractor personnel, under the auspices of the contract, the Contractor will be responsible for resources necessary to remedy the incident.

(9) Should the Contractor use a vendor other than OPM or DSS to conduct investigations, the investigative company must be certified by OPM/DSS to conduct Contractor investigations. The Vendor Cage Code number must be provided to the VA SIC, which will verify the information and conclude whether access to the Government’s site(s) and/or

VA LAN systems can be granted.

(10) The investigative history for Contractor personnel working under this contract must be maintained in the databases of either OPM or the Defense Industrial Security

Clearance Organization (DISCO).

6. Government Responsibilities

a) After the SIC has adjudicated the background investigation package from the Contractor, the

SIC will send an e-mail notification to the Contractor and their POC identifying the e-QIP website link that includes detailed instructions regarding completion of the background clearance application process and the level of background that was requested.

b) Upon receipt of required investigative documents, SIC will review the investigative documents for completion and initiate the background investigation by forwarding the investigative documents to OPM to conduct the background investigation. If the investigative documents are not complete, the SIC will notify the vendor of deficiencies and include corrective instructions.

c) VA will pay for investigations and reciprocals processed through the VA SIC and conducted by OPM in advance, however, the Contractor shall reimburse the full cost of background investigations/reciprocals to VA within 30 days of Bill of Collections from VA. VA shall send up to three plus one final delinquent notice to the Contractor. If the Contractor does not adhere to the

Bill of Collections, future invoices may be subject to be offset by VA to recoup background investigation costs and may be considered grounds for default.

d) The COR will notify and forward the Contractor a copy of the Certificate of Eligibility (Form

4236) if the investigation has been reciprocated. The COR will also notify the Contractor of an unfavorable adjudication by the Government.

7. Security Incident Investigation

The term “security incident” means an event that has, or could have, resulted in unauthorized access to, loss or damage to VA assets, or sensitive information, or an action the breaches VA security procedures. The contractor/subcontractor shall immediately notify the COR and simultaneously, the designated ISO and Privacy Officer for the contract of any known or suspected security/privacy incidents, or any unauthorized disclosure of sensitive information, including that contained in system(s) to which the contractor/subcontractor has access.

XI. LIQUIDATED DAMAGES

This SOW is further subject to the statutory requirement to assess liquidated damages against contractors and/or subcontractors under 38 U.S.C. §5725 in the event of a breach of Sensitive Personal

Information (SPI)/Personally Identifiable Information (PII). Said liquidated damages shall be assessed at $37.50 per affected Veteran or beneficiary. A breach in this context includes the unauthorized acquisition, access, use, or disclosure of VA SPI which compromises not only the information’s security or privacy but that of the

Veteran or beneficiary as well as the potential exposure or wrongful disclosure of such information as a result of a failure to follow proper data security controls and protocols.

XII. CONFIDENTIALITY AND NONDISCLOSURE

A. It is agreed that:

1. The preliminary and final deliverables and all associated working papers, application source code, and other material deemed relevant by the VA which has been generated by the contractor in the performance of this task order are the exclusive property of the U.S. Government and shall be submitted to the COR at the conclusion of the task order.

2. The CO will be the sole authorized official to release verbally or in writing, any data, the draft deliverables, the final deliverables, or any other written or printed materials pertaining to this task order. No information shall be released by the contractor. Any request for information relating to this task order presented to the contractor shall be submitted to the CO for response.

3. Press releases, marketing material or any other printed or electronic documentation related to this project, shall not be publicized without the written approval of the CO.

Attachment A

Schedule of Deliverables

Deliverable No.

One

Item

A detailed PMP and briefing

Quantity

Delivery Date

Within 10 calendar days after award

Two The Senior Economic

Consultant: The government expects this resource to perform requested duties and be available 10 hours per work week during the performance period.

1 September 1, 2019

Three The Junior Economic

Consultant: The government expects this resource to perform requested duties and be available 40 hours per work week during the performance period.

Four The Regulatory Consultant:

The government expects this resource to perform requested duties and be available 40 hours per work week during the performance period.