36C10X19R0001-0003003.pdf

PAGE 1 OF 1. REQUISITION NO.

2. CONTRACT NO. 3. AWARD/EFFECTIVE DATE 4. ORDER NO. 5. SOLICITATION NUMBER 6. SOLICITATION ISSUE DATE

a. NAME b. TELEPHONE NO. (No Collect Calls) 8. OFFER DUE DATE/LOCAL

TIME

9. ISSUED BY CODE 10. THIS ACQUISITION IS UNRESTRICTED OR SET ASIDE: % FOR:

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

8(A)

NAICS:

SIZE STANDARD:

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ IFB RFP

15. DELIVER TO CODE 16. ADMINISTERED BY CODE

17a. CONTRACTOR/OFFEROR CODE FACILITY CODE 18a. PAYMENT WILL BE MADE BY CODE

TELEPHONE NO. DUNS: DUNS+4:

PHONE: FAX:

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED

SEE ADDENDUM

19. 20. 21. 22. 23. 24.

ITEM NO. SCHEDULE OF SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE ARE NOT ATTACHED.

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN _______________ 29. AWARD OF CONTRACT: REF. ___________________________________ OFFER

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DATED ________________________________. YOUR OFFER ON SOLICITATION

DELIVER ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY (BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED SET FORTH HEREIN IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (TYPE OR PRINT) 30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (TYPE OR PRINT) 31c. DATE SIGNED

AUTHORIZED FOR LOCAL REPRODUCTION (REV. 2/2012)

PREVIOUS EDITION IS NOT USABLE Prescribed by GSA - FAR (48 CFR) 53.212

7. FOR SOLICITATION

INFORMATION CALL:

STANDARD FORM 1449

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 92

Not applicable

36C10X19R0001 11-16-2018

Kelly Dempsey (240) 215-1658 2/4/2019

12PM EST

Strategic Acquisition Center - Frederick

Department of Veterans Affairs

321 Ballenger Center Drive, Suite 125

Frederick MD 21703

X

518210

$32.5 Million

N/A

See CONTINUATION Page

Appraisal Management Services/Other Related Services for the Department of Veterans' Affairs Veterans Benefits

Administration, Loan Guaranty Service

Proposal Due: 12:00PM EST 02/04/2019

Email proposal to both the Contract Specialist at kelly.dempsey2@va.gov and the Contracting Officer at roxana.cepeda@va.gov

$0.00

See CONTINUATION Page

Roxana Cepeda

VA-OAO-2018-AB1F81BA

36C10X19R0001 FINAL REQUEST FOR PROPOSAL

Amendment #03

Table of Contents

SECTION A

A.1 SF 1449 SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

SECTION B – CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

B.2 PERFORMANCE WORK STATEMENT

B.3 PRICE SCHEDULE

SECTION C - CONTRACT CLAUSES

C.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

C.2 52.209-5 REPRESENTATION BY CORPORATIONS REGARDING AN UNPAID TAX

LIABILITY OR A FELONY CONVICTION UNDER ANY FEDERAL LAW

(DEVIATION)(MAR 2012)

C.3 52.212-4 CONTRACT TERMS AND CONDITIONS—COMMERCIAL ITEMS (OCT

2018)

C.4 52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

C.5 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

C.6 VAAR 852.203-70 COMMERCIAL ADVERTISING (MAY 2018)

C.7 VAAR 852.215-71 EVALUATION FACTOR COMMITMENTS (DEC 2009)

C.8 VAAR 852.219-9 VA SMALL BUSINESS SUBCONTRACTING PLAN MINIMUM

REQUIREMENTS (DEC 2009)

C.9 VAAR 852.219-71 VA MENTOR-PROTÉGÉ PROGRAM (DEC 2009)

C.10 VAAR 852.232-72 ELECTRONIC SUBMISSION OF PAYMENT REQUESTS (NOV

2018)

C.11 VAAR 852.233-71 ALTERNATE PROTEST PROCEDURE (SEP 2018)

C.12 VAAR 852.237-70 CONTRACTOR RESPONSIBILITIES (APR 1984)

C.13 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT

STATUTES OR EXECUTIVE ORDERS—COMMERCIAL ITEMS (OCT 2018)

SECTION D - CONTRACT DOCUMENTS, EXHIBITS, OR ATTACHMENTS

SECTION E - SOLICITATION PROVISIONS

E.1 52.212-1 INSTRUCTIONS TO OFFERORS—COMMERCIAL ITEMS (OCT 2018)

E.2 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS—COMMERCIAL

ITEMS (OCT 2018)

E.3 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (OCT 2018)

E.4 52.216-1 TYPE OF CONTRACT (APR 1984)

E.5 52.233-2 SERVICE OF PROTEST (SEP 2006)

E.6 VAAR 852.215-70 SERVICE-DISABLED VETERAN-OWNED AND VETERAN-

OWNED SMALL BUSINESS EVALUATION FACTORS (JUL 2016)(DEVIATION)

E.7 VAAR 852.219-72 EVALUATION FACTOR FOR PARTICIPATION IN THE VA

MENTOR-PROTÉGÉ PROGRAM (DEC 2009)

E.8 VAAR 852.219-74 LIMITATIONS ON SUBCONTRACTING- MONITORING AND

COMPLIANCE (JUL 2018) (DEVIATION)

E.9 VAAR 852.233-70 PROTEST CONTENT/ALTERNATIVE DISPUTE RESOLUTION

(SEP 2018)

SECTION B – CONTINUATION OF SF 1449 BLOCKS

B.1 CONTRACT ADMINISTRATION DATA

(continuation from Standard Form 1449, block 18A.)

1. Contract Administration: All contract administration matters will be handled by the following individuals:

a. CONTRACTOR:

b. GOVERNMENT: Contracting Officer, Roxana Cepeda, 36C10X

Strategic Acquisition Center - Frederick

Department of Veterans Affairs

321 Ballenger Center Drive, Suite 125

Frederick MD 21703

2. CONTRACTOR REMITTANCE ADDRESS: All payments by the Government to the contractor will be made in accordance with:

[X] 52.232-34, Payment by Electronic Funds Transfer—Other Than System For Award

Management, or

[] 52.232-36, Payment by Third Party

3. INVOICES: Invoices shall be submitted in arrears:

a. Quarterly []

b. Semi-Annually []

c. Other [X] – Monthly in arrears; Accepted and payable after COR receipt and approval of deliverables.

4. GOVERNMENT INVOICE ADDRESS: All Invoices from the contractor shall be submitted electronically in accordance with VAAR Clause 852.232-72 Electronic Submission of Payment Requests.

Strategic Acquisition Center - Frederick

Department of Veterans Affairs

321 Ballenger Center Drive, Suite 125

Frederick MD 21703

ACKNOWLEDGMENT OF AMENDMENTS: The offeror acknowledges receipt of amendments to the

Solicitation numbered and dated as follows:

AMENDMENT NO DATE

B.2 PERFORMANCE WORK STATEMENT

1.0 BACKGROUND

The Construction and Valuation Section (C&V) of Department of Veterans Affairs (VA)’s Loan

Guaranty Service (LGY) is responsible for the quality of appraisal reports on properties offered as security for VA guaranteed loans. Historically, lenders submitted appraisal requests by telephone to a local VA Regional Office (RO). Each RO managed a fee appraiser panel for its jurisdiction. The fee appraiser panel is comprised of VA-approved independent appraisers. VA assigned the appraisal to an approved fee appraiser located in or near the area where the subject property was located. The completed appraisal report was mailed or hand-delivered to the RO for review and subsequent issuance of a

Certificate of Reasonable Value (CRV) by a VA Staff Appraiser.

The CRV forms were later replaced by the Notice of Value (NOV). As automation advanced, lenders started requesting appraisals electronically and an automated VA system provided the name and contact information for the assigned appraiser.

Shortly thereafter, VA began authorizing lenders to perform reviews of completed appraisal reports and issue NOVs through the Lender Appraisal Processing Program (LAPP). The lender’s Staff Appraisal

Reviewer (SAR), usually an underwriter employed by the lender, received training by VA staff on the review process and issuance of the NOV. This procedure currently remains in effect. Although LAPP is a voluntary program, at this time approximately 97% of the total volume is processed under this program.

In 2002, VA completed a nationwide initiative that consolidated 46 ROs with loan guaranty operations to nine (9) Regional Loan Centers (RLCs). This allowed some efficiency; however, as VA moves forward, it is essential that proven technological advances be taken advantage of to improve resource management and to continue providing quality benefits to our nation’s Veterans, in a more cost-efficient manner.

In November 2013, VA awarded a 5-year contract for Appraisal Management Services (AMS) that included reading and scoring of VA appraisals and Automated Valuation Models to allow VA to transition to a risk based review platform.

The current C&V environment consists of approximately 300 VA staff members, over 6,600 external

SARs and over 6,500 VA-approved independent appraisers.

1.1 The Appraisal Process

C&V is a necessary component of the loan guaranty process. C&V provides the value and eligibility determinations for all properties used as security for loans that are guaranteed by VA. Also, C&V provides the value determinations for pre-liquidation properties. Before loans can be guaranteed by VA, an appraisal of the security property being purchased by the Veteran must be ordered by the Veteran’s lender. Lenders first access WebLGY using the Veterans Information Portal (VIP) where they order the appraisal. WebLGY automatically assigns an appraiser from the VA fee panel, on a rotational basis, based upon the geographic location of the subject property. The system automatically sends an email notification of the assignment to the assigned appraiser. Upon completion of the appraisal report, the appraiser uploads the report into WebLGY and a system-generated email notifies the appropriate reviewer

(the lender’s SAR, servicer’s SAR, or VA staff appraiser) that the appraisal report has been completed and is available for downloading. The same process applies to ordering a liquidation appraisal used for foreclosure purposes.

VA provides access to the WebLGY for lenders, servicers, other appraisal requestors (brokers and attorneys), appraisers, and internal VA users. Currently, over 36,000 individuals access WebLGY on a routine basis. All users have a predetermined level of authorization within the system, based upon their responsibility and need for access, to specific information.

The type of appraisal report requested will determine if the lender’s SAR, servicer’s SAR, or VA staff appraiser will review the completed report and issue the NOV. The following are types of appraisals, which can be requested using WebLGY:

• Lender Appraisal Processing (LAP) – A purchase or cash-out refinance appraisal request ordered by a lender (or a broker that has a supervising lender) that has a SAR on staff to review the appraisal report and issue the NOV.

• Individual (IND) – A purchase appraisal request ordered by a lender that does not have a SAR on staff to review the appraisal report and issue the NOV. These appraisal reports are reviewed by a

VA staff reviewer who issues the NOV.

• Liquidation Appraisal (LGI) – A liquidation appraisal request ordered by the loan servicer and reviewed by a VA staff appraiser who will issue the NOV.

• Liquidation Portfolio Loan (LPL) – A liquidation appraisal request for a property that is the security for a loan held by VA in its portfolio of loans. These are not guaranteed loans. The appraisal report will be reviewed by a SAR at VA’s portfolio loan servicing contractor. The SAR issues the NOV and inputs the information into WebLGY.

• Servicer Appraisal Processing (SAP) – A liquidation appraisal request ordered by the loan servicer or its attorney that will be reviewed by a SAR who will issue the NOV.

The latest NOV remains in WebLGY as a permanent document. VA procedures require that a copy of the

NOV and the reviewed appraisal report are provided to the Veteran by the reviewer, in the case of a purchase or refinance.

Currently, WebLGY is the permanent system of record for all C&V information. WebLGY maintains a count of appraisal requests, appraisals pending review, and NOVs issued. It also maintains a record of the quality reviews performed by VA staff, with deficiencies noted during the review, and whether they were substantive or non-substantive. Since November 2013, WebLGY is also the permanent record for AMS data captured from the reading and scoring of each appraisal uploaded into WebLGY.

WebLGY maintains all quality review information, both desk reviews and field reviews. The reviews assist RLCs in their oversight responsibilities for appraisers and SARs. The results of the review are placed on a template form in WebLGY. The types of reviews performed are:

• Desk review – The in-house review of an appraisal report and NOV issued by a SAR. A representative sampling of these appraisal reports undergoes post endorsement review conducted by VA’s RLCs.

• Field review – The onsite review of an appraisal report. This entails a VA staff appraiser physically reviewing a representative sample of appraisals, the subject property and comparable properties, to ensure the information indicated in the appraisal report is accurate. These results are indicated in WebLGY processing notes.

1.2 Purpose and Vision

The purpose of this Performance Work Statement (PWS) is to support the procurement of VA Automated

Appraisal Management Services (AMS) to further enhance the appraisal review process, thereby improving the oversight functions of C&V.

This award entails services provided within the U.S. The U.S. is defined as the 50 States, Territories and possessions, the District of Columbia, the Commonwealth of Puerto Rico, U.S. Virgin Islands, Guam and the Commonwealth of the Northern Mariana Islands. The service provider must be able to provide all services with the same service level within all geographic locations.

C&V’s vision is to provide a phased approach to accomplish a fully integrated, seamless, and user-friendly solution encompassing the appraisal process from the initial request and assignment through the issuance of a VA guaranty. The contractor shall provide the C&V staff, lenders, and servicers in the

United States (U.S.) with services that will improve standardization, risk management, timeliness and performance, as well as the credibility and quality of valuation functions.

The contractor shall be able to accommodate an estimated 1,000,000 appraisals annually; however, VA anticipates average volume of approximately 750,000. VA processes appraisals for Single Family

Residential properties representing 91% of all appraisal assignments. Condominium assignments represent 7% while manufactured home appraisals represent 2% of total volume. Appraisals are completed on origination, cash out refinance, and liquidation transactions. Market conditions dictate actual volume.

The AMS process begins after the notification to appraiser that an assignment has been made. AMS shall track the appraisal order from notification to acceptance by VA. The AMS system receives the appraisal report uploaded by the appraiser and provides a validation process to ensure that the report matches the assignment. AMS will track appraisal assignment and review timeliness from initial order through the issuance of the NOV. The AMS then performs an electronic screening review function and scoring based on VA requirements and using data collected from VA appraisals and other sources. The AMS provides the data and results of the scoring and electronic screening review, and collects the data from the appraisal reports for use by VA. Lastly, AMS will provide a desktop appraisal process using data from VA and other sources to develop a desktop valuation product.

Currently, VA employees perform post-closing quality reviews on randomly sampled appraisal reports.

Instead of random sampling, VA will begin to target reviews based upon the risk issues and the AMS score generated for the appraisal. Automated risk-based scoring generated by the AMS will enable VA to perform enhanced analysis on those appraisals targeted by the AMS model. AMS will provide an integrated and standardized appraisal review process that is based on the VA risk profile.

Based on the score of the appraisal, authorized VA employees may elect to order ORS. The ORS will provide VA staff with additional information regarding the property in an effort to evaluate the accuracy and credibility of the appraisal. ORS is comprised of desktop appraisal, AMS, Multiple Listing Data, Property Conditions Reports, Cost Data and Improved/Unimproved Land Data.

1.3 Applicable Documents

Documents referenced or germane to this PWS are listed below. The contractor shall be guided by the information contained in these documents in performance of this PWS, each can be found at the website indicated:

1. Privacy Act, 5 United States Code (U.S.C.) §552a, which is available at:

https://www.gpo.gov/fdsys/granule/USCODE-2010-title5/USCODE-2010-title5-partI-chap5-subchapII-sec552a/content-detail.html

2. VA Pamphlet 26-7: Lender’s Handbook (Chapters 10-18), which is available at:

http://www.benefits.va.gov/warms/pam26_7.asp

3. VA M 26-2: Construction and Valuation Handbook, which is available at:

http://www.benefits.va.gov/warms/M26_2.asp

4. Relevant circulars pertaining to VA appraisals located on VA’s Website:

https://www.benefits.va.gov/HOMELOANS/resources_circulars.asp

5. 1012-2016 - IEEE Standard for System, Software, and Hardware Verification and Validation which is available at: 488 https://ieeexplore.ieee.org/document/8055462/

6. VA Directive 6500, Information Security Program (VA Handbook 6500.6, Contract Security, which is available at: http://www.va.gov/vapubs

7. Veterans Health Administration (VHA) Directive 0710 (Implementation Handbook 0710.01, which is available at: http://www.va.gov/vapubs and http://www.va.gov/vhapublications/index.cfm )

8. Veterans Affairs Acquisition Regulation (VAAR)-852.273-75: Security Requirements for

Unclassified IT Resources (Interim-October 2008), which is available at:

http://www.va.gov/oal/library/vaar/vaar852.asp

9. Federal Information Security Management Act (FISMA), Appendix III of OMB Circular A-130, which is available at:

https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A130/a130trans4.pdf

10. Rights in Data - General, Federal Acquisition Regulation (FAR) 52.227-14(d)(1), which is available at: http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_227.htm

11. VA Directive 6300, Records and Information Management (VA Handbook 6300.1 Records

Management Procedure, and all applicable VA Records Control Schedules), which is available at:

http://www.va.gov/vapubs/search_action.cfm?dType=2

12. VA Directive 0730, Section 6f (Physical Security) and VA Memorandum: IT Oversight &

Compliance Information Physical Security Assessments, October 24, 2007, which is available at:

http://www.va.gov/vapubs/search_action.cfm?dType=1 https://www.gpo.gov/fdsys/granule/USCODE-2010-title5/USCODE-2010-title5-partI-chap5-subchapII-sec552a/content-detail.html https://www.gpo.gov/fdsys/granule/USCODE-2010-title5/USCODE-2010-title5-partI-chap5-subchapII-sec552a/content-detail.html http://www.benefits.va.gov/warms/pam26_7.asp http://www.benefits.va.gov/warms/M26_2.asp https://www.benefits.va.gov/HOMELOANS/resources_circulars.asp file:///C:/Users/LGYKBERN/AppData/Local/Microsoft/Windows/Temporary%20Internet%20Files/Content.Outlook/FOX1I7RE/488 https://ieeexplore.ieee.org/document/8055462/ http://www.va.gov/vapubs http://www.va.gov/vapubs http://www.va.gov/vhapublications/index.cfm http://www.va.gov/oal/library/vaar/vaar852.asp https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/circulars/A130/a130trans4.pdf http://farsite.hill.af.mil/reghtml/regs/far2afmcfars/fardfars/far/52_227.htm http://www.va.gov/vapubs/search_action.cfm?dType=2 http://www.va.gov/vapubs/search_action.cfm?dType=1

13. VA Directive 0710, September 10, 2004, which is available at:

http://www1.va.gov/vapubs/viewPublication.asp?Pub_ID=487&FType=2

14. Mortgage Industry Standards and Maintenance Organization (MISMO) Version 3.2 and Version

2.6/2,6 GSE for Appraisal Reports which is available at: http://mismo.org/

15. Fannie Mae and Freddie Mac UAD Documents which are available at:

https://www.fanniemae.com/singlefamily/uniform-appraisal-dataset#

2.0 PERFORMANCE DETAILS

2.1 Performance Period and Contract Type

The period of performance (POP) will be a twelve-month base period, plus four twelve-month option periods. This contract will have a five (5) year maximum performance period. This will be a firm-fixed priced contract.

This will be a single-award Firm-Fixed Price contract for the following Period of Performance (POP):

Base Period: April 1, 2019 through March 31, 2020 –Fiscal Year (FY19)

Option Period I: April 1, 2020 through March 31, 2021 (FY20)

Option Period II: April 1, 2021 through March 31, 2022 (FY21)

Option Period III: April 1, 2022 through March 31, 2023 (FY22)

Option Period IV: April 1, 2023 through March 31, 2024 (FY23)

2.2 Place of Performance

The majority of the work shall take place at the contractor’s site, however where specifically stated in this

PWS, some functions may be performed at the Government’s facilities. No work at any Government site will take place on Federal holidays or weekends, unless directed by the Contracting Officer (CO).

There are ten (10) Federal holidays set by law (USC Title 5 Section 6103) that VA follows:

Under current definitions, four are set by date:

New Year's Day January 1

Independence Day July 4

Veterans Day November 11

Christmas Day December 25

If any of the above falls on a Saturday, then Friday shall be observed as a holiday. Similarly, if one falls on a Sunday, then Monday shall be observed as a holiday.

The other six are set by a day of the week and month:

Martin Luther King's Birthday Third Monday in January

Washington's Birthday Third Monday in February http://www1.va.gov/vapubs/viewPublication.asp?Pub_ID=487&FType=2 http://mismo.org/ https://www.fanniemae.com/singlefamily/uniform-appraisal-dataset

Memorial Day Last Monday in May

Labor Day First Monday in September

Columbus Day Second Monday in October

Thanksgiving Fourth Thursday in November

2.3 Travel

Travel for this requirement is anticipated; approved travel and per diem shall be reimbursed in accordance with Federal Travel Regulation as prescribed in Federal Acquisition Regulation (FAR) 31.205-46, and housed at https://www.gsa.gov/policy-regulations/regulations/federal-travel-regulation-ftr. Each contractor invoice must include copies of all receipts that support the travel costs claimed in the invoice.

Travel must be pre-approved by the Contracting Officer’s Representative (COR) and CO. Travel must be priced separately in the price schedule, and will be segregated accordingly on another line item. Local travel within a 50-mile radius from the contractor’s facility is considered the cost of doing business and will not be reimbursed. This includes travel, subsistence, and associated labor charges for travel time.

Travel performed for personal convenience and daily travel to and from work at the contractor’s facility will not be reimbursed. Travel, subsistence, and associated labor charges for travel time for travel beyond a 50-mile radius of the contractor’s facility are authorized for reimbursement on a case-by-case basis and must be pre-approved by the COR. General and administrative expenses charged against travel costs will not be reimbursed.

3.0 SCOPE OF WORK

A Commercial-Off-the-Shelf (COTS) product with proven past performance in the appraisal industry is required which must be capable of integration with WebLGY. The contractor shall provide all resources necessary to accomplish the requirements described in this PWS, except as otherwise specified.

Specifically, the contractor shall provide and manage AMS and ORS for the VA. The services shall encompass the functional areas listed below. The contractor shall continuously update and enhance information made available to VA and the performance of their system, which shall provide the VA with updates of the contractor’s technology changes to ensure continued communication with VA’s systems.

The scope of work is comprised of 8 main functional areas shown in the table below. Detailed descriptions of those areas are available in Section 4.0.

FUNCTIONAL AREA

SECTION

Program Management and Oversight 4.1

Training and Testing 4.2

Operational Data Reporting 4.3

AMS Services 4.4

Other Related Services/ Related/Miscellaneous 4.5

Customer Service 4.6

Other Related Considerations 4.7

IT and Online Accessibility of Information 4.8

3.1 Performance Objectives

The contractor shall meet the following performance objectives throughout the period of performance:

• Deliver a high-quality experience for all stakeholders, including Veterans, lenders, and servicers who are partnering with the VA to serve them, through timely appraisal reports. Provide tools for conducting strong oversight to ensure accuracy of appraisal reports as VA appraisals are performed to protect the interests of the program and all program participants. (Deliverables 4.1, 4.3, 4.4, 4.5, 4.6)

• Ensure that VA’s appraisal review staff and lenders’ and servicers’ Staff Appraisal Reviewers

(SARs) have the latest appraisal review tools and resources available in the industry in order to best serve Veterans. (Deliverables 4.1, 4.2, 4.4, 4.5, 4.6, 4.8)

• Provide innovative technology to ensure that VA is exceeding appraisal industry benchmarks.

Quality appraisal services are essential in supporting VA’s commitment that VA guaranteed home loans are the product of choice for Veterans. (Deliverables 4.1, 4.3, 4.4, 4.7, 4.8)

• Provide an AMS/ORS to enhance the appraisal services provided to Veterans through VA’s home loan guaranty program. VA is the leading voice in housing for our Veterans. Appraisals are critical in maximizing the opportunities for Veterans and Servicemembers to obtain and retain homes. (Deliverables 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8)

• Provide data, data reporting, and data analytic capabilities that support VA’s objective of making data-driven policy and program decisions. (Deliverables 4.1, 4.3, 4.5, 4.7)

4.0 TASKS AND DELIVERABLES

The contractor shall provide all tasks and deliverables described within this document. All deliverables shall be submitted to the Contracting Officer Representative (COR) in accordance with the PWS and meet the standards set forth in VA’s Quality Assurance Surveillance Plan (QASP). The COR will discuss and come to agreement with the contractor on the specific contents of the deliverables identified as the final versions and document the outcome. Unless otherwise stipulated, written deliverables shall be phrased in plain English. Statistical and other technical terminology shall not be used without providing a glossary of terms.

The following section discusses the underlying technical and management constraints and considerations that support VA's objectives.

The contractor shall follow and comply with all applicable local, state, and Federal regulations and laws to perform the tasks under this contract throughout the duration of the contract. Each of the functional areas is discussed in detail in the following subsections.

4.1 Program Management/Oversight

A. Program Management

The contractor shall perform program management services to plan, monitor and control the tasks outlined in the PWS and specifically the implementation of AMS/ORS. At a minimum, the following services are required:

• Development and delivery of final, detailed Project Management Plan (PMP);

• Development and delivery of monthly progress reports;

• Attendance and participation in weekly project meetings with the government and other contractors; and

• Collaboration with the government to identify, monitor, and mitigate project risks.

The contractor shall provide a draft of the PMP for the tasks defined in this PWS in the proposal submission and shall update the PMP based upon feedback from VA post-award. The PMP, and all other written deliverables, shall follow the Project Management Body of Knowledge (PMBOK). The contractor shall provide a final, detailed PMP and briefing for the VA project team that presents the contractor’s plan for completing the tasks.

The final plan shall describe, in further detail, the approach to be used to accomplish the tasks. At a minimum, the PMP shall include the risk, quality and technical management approach, work breakdown structure (WBS), schedule management approach, detailed schedule using MS Project (including compliance reviews, training, testing, etc.), cost requirements and proposed personnel. For every task outlined in the PMP, the contractor shall identify in writing all necessary subtasks (if any), associated costs by task, and associated sub-milestone dates. The contractor’s subtask structure shall be as reflected in the technical proposal and detailed PMP.

To provide for a rapid, seamless, and error-free transition to the AMS/ORS services, the transition process will be implemented in phases, and coordinated with VA. The entire transition is scheduled to take no more than six (6) months. The contractor will provide details for all phases of the transition. Additionally, the PMP shall include a method for identifying the results of interchange and user testing, and making corrections or changes to the service in response to test results. When the contractor has demonstrated that the AMS and ORS services can support all requirements, the COR will provide written acceptance of the AMS/ORS services.

The contractor shall provide monthly status reports to the COR. These reports shall detail work performed for the month against the task identified in the PMP and identify work to be performed in the following month. Where deviations to the plan exist, the report shall explain why these occurred and provide recovery actions to the plan. The contractor shall attend weekly (or as often as determined by the

COR) project meetings with the Government and other contractors to review the status of the AMS/ORS project. Weekly (or as often as determined by the COR) project meetings may be held via teleconference.

The Government will schedule the meetings; prepare the agendas with input from the contractor; and prepare and distribute meeting minutes and any action item lists. The contractor shall provide a project status report for each meeting. The report will provide highlights of the accomplishments, activities pending, outstanding issues and recommendations for resolution, and issues resolved. The COR will determine whether the meetings may be telephonic, the frequency of meetings as the contract progresses, and the week day and time of meetings.

The Project Manager shall:

• Ensure that all requirements are performed and deliverables are submitted per agreed upon schedules.

• Communicate regularly and effectively with AMS/ORS Project Manager, the COR, and the CO.

• Effectively balance and schedule involvement of appropriate resources throughout the project lifecycle.

• Ensure that the contractor’s key personnel are qualified to conduct the required tasks and deliverables, having expertise in the following disciplines: Appraisal, Technology Development, Reporting, and Training.

• Utilize project metrics to track, manage, and analyze task progress and communicate findings to the COR to ensure appropriate focus on critical attention areas.

• Identify opportunities for improvement and drive results.

• Anticipate project challenges and risk scenarios and prepare, lead, and execute proactive mitigation strategies to ensure optimal results.

• Perform internal and external compliance reviews as required by the PMP.

• Serve as the single point of contact for performance related questions.

• Manage and monitor the components for project execution including developing and planning resource assignments and allocations, developing program status reports and project reviews, and managing and tracking project deliverables as well as provide an Integrated Master Schedule within 60 days of award.

The Contractor shall maintain a “lessons learned” diary throughout the project that documents the success or failure of various events during the contract period. The diary will ensure that knowledge is captured. The diary shall be submitted each month along with the monthly status report.

At scheduled meetings during the periods between monthly reports, the contractor shall discuss lessons learned. The diary does not need to be updated to honor the meeting requests.

B. Oversight

The contractor Shall:

• Ensure that the contractor’s internal policies, procedures, and controls are documented and implemented to ensure program support and integrity. The contractor shall provide their internal policies, procedures, and control documentation prior to implementation and updates as necessary.

• Utilize quality control measures and/or post-delivery audit tools for validating AMS and ORS data stored or provided to VA. The quality control test and audit results should be reported quarterly.

• Ensure that actions of the service provider do not contribute to a negative audit finding against

VA or the service provider.

• Implement and maintain a comprehensive Quality Assurance Plan (QAP) consistent with the preliminary quality control information submitted during the bid process. The goal of the QAP is to verify that all deliverables and work products meet all project requirements, and that a repeatable, measurable process has been followed in their creation. The contractor will identify and conduct quality control reviews to ensure continuity during the life of the contract. To support monitoring of the performance of both the AMS and ORS services and support functions, the contractor will include a plan to monitor the minimum performance standards identified in this PWS. Additionally, the plan will establish minimum performance standards for tasks not specifically listed as performance measures but determined by the contractor to be critical to the successful performance of the work. The plan will describe the approach and tool(s) to be used to monitor performance against these standards and provide a format for operational reporting. The contractor shall provide the QAP for review and acceptance by the COR. The QAP is considered a living document and as such, will be revised by the contractor as necessary. All changes to the

QAP must be accepted in writing by the COR in advance of implementation. The contractor shall provide the QAP for review and approval within thirty (30) calendar days of the contract award.

• Make a Statement on Standards for Attestation Engagements No. 16 (SSAE 18) report (or its equivalent) available to VA or its auditors covering some portion of the current Government

Fiscal Year (October-September).

• Notify VA within 30 days of any non-material findings that result from an audit. Provide VA with a written response to all non-material findings within 30 calendar days and resolution within

60 calendar days from the date of notification.

• Notify VA immediately upon recognition of material findings that result from an audit. Provide

VA with a written response to all material findings noted in audit reports within 14 calendar days and resolution within 30 calendar days from the date of notification.

• Provide audit access and reporting for all data and files related to this solicitation by the COR or

COR’s designee. Upon the written request of VA received reasonably in advance, the contractor shall provide reasonable private meeting space, access to all records (paper or electronic), documentation, data, and relevant information related to this solicitation during the contractor’s normal business hours. The contractor shall permit VA, or its designee, to copy any such documentation and shall provide equipment for that purpose.

• Provide current copies of all plans (e.g., Disaster Recovery Plan, Training Plan, Escalation

Procedures), and update as needed.

Deliverables:

4.1.A.1 PMP, including WBS, Integrated Master Schedule, and all deliverables within the PMP (The draft will be submitted with the proposal and the final will be delivered after Government comments have been delivered post-award.)

4.1.A.2 Monthly Status Reports

4.1.A.3 Lessons Learned Diary (to be submitted with each monthly report)

4.1.B.1 Audit Support and Findings Mitigation

4.1.B.2 QAP

4.1.B.3 SSAE 18

4.2 Training and Testing

A. Training

Training is the component that provides users with the necessary skills and knowledge to perform their jobs in the new AMS/ORS environment. Given guidance from VA, the contractor shall identify the necessary training to implement the end state technical solution and business process transformation.

The contractor shall:

• Provide online, self-paced training for VA staff on using all aspects of the AMS/ORS system.

Training will include instruction and reference materials on database structure, data extraction, data reporting, and data analysis. Training will be available for reference and available to newly hired staff throughout the duration of the contract.

• Provide online, self-paced training for fee appraisers on VA’s panel on the use of the features that promote appraisal timeliness. Training will be available throughout the duration of the contract.

• Provide online, self-paced training for lenders’ SARs on the appraisal review features in the new system. The training will be available throughout the duration of the contract.

• Provide 508 compliant training that can be utilized in different mediums

• The contractor is expected to propose training objectives based on prior experience directly related to their product. Contractor will certify that all affected program participants are provided up-to-date information regarding the AMS and ORS.

• The contractor shall provide VA with a set of performance metrics, a methodology to collect the metrics, and a format to report the metrics to senior management to evaluate the success of the

Training Strategy and Plan. The contractor shall deliver the Training Strategy and Plan within 60 calendar days of contract award.

• Provide continuous support for the development and updating of the training curriculum and materials. The contractor shall provide information materials electronically, such as “quick tips” and/or “frequently asked questions” to assist VA and any VA authorized users.

• Provide at least one (1) live/in-person classroom training session with VA employees at VA’s

Washington, DC office, to include all aspects of the AMS and ORS.

B. Testing

Testing the interchanges with VA and the end-user acceptance is paramount to the success of the

AMS/ORS services contract. The contractor shall work in collaboration with VA to ensure all necessary testing is completed, and all errors are fixed prior to VA sending live case numbers to the AMS and ORS services.

The contractor shall:

• Include in the PMP a method for identifying the results of interchange and user testing, and making corrections or changes to the service in response to all test results.

• Provide testing scripts with “use-case” scenarios, sample testing data and fillable test result forms, for each appraisal type listed in 1.1 Appraisal Process.

• Provide end user testing to be performed at least 30 days prior to implementation of the AMS and

ORS services. Upon receipt of notification from VA of any deficiencies, the contractor shall immediately research the issue(s) and within five (5) business days, shall either resolve the problem or present a corrective action plan and timeline for approval by VA’s COR and project manager.

• Provide end user testing to be performed at least 15 days prior to implementation of any enhancements to the AMS/ORS. Upon receipt of notification from VA of any deficiencies, the contractor shall immediately research the issue(s) and within five (5) business days, shall either resolve the problem or present a corrective action plan and timeline for approval by VA’s COR and project manager.

• Provide a certification that all testing (interface and end-user) has been completed and the

AMS/ORS are prepared to “go live” and/or any future production deployments.

Deliverables:

4.2. A.1 Training Strategy and Plan

4.2.A.2 Training materials

4.2.A.3 Computer-based training courses for each of the identified user groups (total of three)

4.2.A.4 One (1) live/in-person classroom training session to each identified user group of VA employees at VA’s Washington, DC office

4.2.B.1 Testing scripts, sample testing data and fillable test result forms

4.2.B.2 Certification of completed testing and ready for “go live” and/or any future production deployments.

4.3 Operational Data Reporting

The AMS/ORS shall provide system, data, analytic, and reporting functionality that supports VA’s capability to benchmark the LGY program to the mortgage, appraisal, and housing industries. The contractor shall provide the following operational analytic, and reporting capability on all AMS/ORS data:

• Ensure all standardized or customized reports required by VA are completed accurately and provided timely, with adequate IT support devoted to ensuring such timeliness. The contractor shall provide newly requested reports within seven (7) calendar days. VA will notify the contractor regarding priority-reporting requests and will provide the deadline for completion.

• Establish and maintain a reporting library. The reporting library shall contain elements such as a description of reports, relevant report-related metadata, clear audit trail of the composition of each report, any known issues, and inventory of all recurring reports, formats and schedules. The contractor shall provide the initial library within 90 calendar days of contract award.

• Establish and maintain a data dictionary and relevant metadata for all data elements used in approved and implemented reports. The data dictionary will provide information concerning the

AMS/ORS request and response files. The data dictionary shall contain field descriptions, formats, data limitations (such as special characters), etc. for every file, report, or data element sent to VA. The contractor shall provide the initial data dictionary within 90 calendar days of contract award.

• All records shall contain VA’s 12-character Loan Identification Number (LIN) and 7 character

Appraiser ID., as well as a property-based key for each parcel being appraised such as latitude/longitude coordinates or another unique property-id indicator with a naming convention established by VA.

• Provide Dashboards with real-time data, refreshed every 60 seconds, for all key workload and performance data including, but not limited to:

• Appraisal workload volume and trending information;

• Appraisal assignments with no appraiser assigned;

• Appraisals completed timely and untimely – in conjunction with tracking application described in 4.5A (3 key points – appointment set, site inspection completed, appraisal uploaded);

• Overdue and pending appraisal assignments;

• Appraiser scorecards by state, county and appraiser with accuracy, timeliness and workload data;

• Appraiser license status. Send an alert to the RLC when a state license is nearing expiration (at a timeframe set by VA) and another alert if the license expires; and

• Timeliness data, searchable by county and trending information (alerts when timeliness increases in a geographic area by an amount determined by VA or when timeliness exceeds VA standards). The contractor will continuously monitor timeliness to ensure that VA timeliness standards (published on VA’s website) do not exceed the typical completion times for conventional appraisals by geographic area (typically county).

• Provide additional, non-real-time data to aid in oversight, tracking, and management of appraisers and appraisals. Data include but are not limited to:

• Monthly updates on the average conventional appraisal fee for single family homes, 2-4 family homes, condominiums and manufactured homes, searchable by county and state.

• Corrections made by appraisers to completed appraisals, including timeliness, number of corrections, items corrected from previous uploaded appraisal report.

• Errors made by appraisers found during electronic reading and scoring of appraisals through AMS.

• Design, build, and implement an analytics tool for VA staff to run custom ad-hoc reports on all

AMS/ORS data.

• contractor shall provide data concerning loan level equity position for the active portfolio.

• The contractor shall send all data generated/collected by the operational, analytic, and data reporting services and functionality to VA, per the guidance provided in section 4.8.

Deliverables:

4.3.1 Library of all available reports

4.3.2 Comprehensive data dictionary of all data elements in the AMS/ORS environment

4.3.3 Dashboard

4.3.4 Standardized, customized and ad-hoc reporting tool

4.3.5 Interfaces

and system functionality necessary to enable and support the transmission of AMS/ORS data to VA software applications, and data repositories

4.4 AMS Services

VA currently uses WebLGY, a VA-developed and maintained system, to manage the assignment of appraisals to VA’s fee panel of state-licensed appraisers. Efforts are underway to redesign VA’s systems and it is anticipated that another systems environment will likely replace WebLGY over the next few years. VA assigns appraisals on a strict rotational basis to individual appraisers on its fee panel. VA does not, and will not consider the use of Appraisal Management Companies to manage its fee panel.

The contractor shall:

• Deliver an AMS COTS product at the time of award. The implementation of AMS shall encompass the design and integration of these services into the WebLGY environment within six

(6) months of contract award. Create interfaces with WebLGY for the exchange of assignment and results.

• Process an estimated 750,000 VA appraisals annually performed by VA-approved fee appraisers.

Market conditions and implementation design will dictate actual and future volume.

• Receive appraisal reports in MISMO standard XML format with embedded PDF. Contractor should also provide the ability to receive Portable Document Format (PDF) reports and other documents submitted by appraisers which could be needed on an exception basis. Standardized appraisal report forms include but are not limited to the following types of current industry/VA-approved standard forms:

o Market Conditions Addendum (Fannie Mae Form 1004MC) o Uniform Residential Appraisal Report: Fannie Mae 1004/ Freddie Mac 70 Interior SF

Residential o Exterior-Only Inspection Residential Appraisal Report: Fannie Mae 2055/ Freddie Mac o Individual Condominium Unit Appraisal Report: Fannie Mae 1073/ Freddie Mac 465

Interior Condominium o Exterior-Only Inspection Individual Condominium Appraisal Report: Fannie Mae 1075/

Freddie Mac 466 Exterior Only Condominium o Small Residential Income Property Appraisal (2-4 Family): Freddie Mac Form

72/Fannie Mae Form 1025 o Manufactured Home Appraisal Report: Freddie Mac Form 70B/Fannie Mae Form 1004C o Supplemental forms (e.g., documents from the appraiser) o Appraisal Update and/or Completion Report, Freddie Mac Form 442/Fannie Mae Form

1004D

• Provide an application/service that shall electronically “read” and “score” an appraisal report based on VA’s selection of preexisting or VA-specific compliance and risk identification rules

(hereafter appraisal report means any information listed above). The initial appraisal report is required to be in Mortgage Industry Standards Maintenance Organization (MISMO) compliant

XML with embedded attachments within that appraisal, such as pictures, documents, etc. (.TIF, .JPG, .GIF, .PDF, .DOC,. PAGES, etc). If supplemental information or another appraisal is required, the appraiser will upload that information directly to WebLGY and VA will determine if such information will require an additional AMS transaction. VA shall not be invoiced or pay for subsequent AMS requests for the same loan type submitted within forty-five (45) days of the first request (loan types are discussed in section 1.1 Appraisal Process).

NOTE: The scoring will be largely based on the AMS COTS risk-based scoring model and associated business rules. VA currently uses Business Rules or Scoring Criteria. This procurement does not include any contractor services to perform manual appraisal reviews.

The government encourages the Offerors to include within the proposal suggested models to integrate with LGY software applications and data repositories. The contractor’s system will collect information on AMS/ORS transaction events, appraisal reports, appraisal report data, and scoring data, to be transmitted to VA for integration into LGY software applications and data repositories.

• Provide a checklist with consistent review criteria to ensure that lenders Staff Appraisal

Reviewers (SARs) are incorporating the results of the AMS reading and scoring of the appraisal

(alerts and other feedback) in their review. The checklist will provide a mechanism through which each alert or VA business rule will be cleared as addressed. This will assist VA in performing oversight of appraisal reviews conducted by SARs. This could be accomplished through a link from the case in VA’s system to the contractor’s platform with single-sign on access for VA staff and lenders who have already logged into VA’s system. The completed checklist will be transmitted into WebLGY or VA’s current system.

• Select potential high-risk cases for field review and plan trips geographically to most benefit the government from a staffing, resource, and funding perspective.

• VA will export the SAR ID number, SAR name, Staff Appraiser name and Senior SAR indicator information to the contractor for use in appraisal review oversight reporting.

• The contractor shall send all data generated/collected by the operational, analytic, and data reporting services and functionality to VA, per the guidance provided in section 4.8.

Deliverable:

• 4.4.1 Live AMS functionality including reviews of all VA approved appraisal forms

• 4.4.2 AMS integration with LGY software…