Draft_PWS_Integrated_Underwriting,_Asset_Managment_and_Document_Management_Solution_.pdf

Performance Work Statement (PWS)

Integrated Underwriting, Asset Management, and Document Management Solution

03/14/2018

Version 3.0

Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.4 Description of Services

1.5 Non-Personal Services

1.6 Period of Performance

1.7 Place of Performance

1.8 Hours of Operation

1.9 Special Qualifications

1.10 Post Award/Kickoff Conference

1.11 Status Meetings

1.12 Contractor Travel

1.13 Transition In

1.14 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

4.7.1 Quality Control Plan

5 Specific Tasks

5.1 The Contractor shall provide an underwriting and asset management analysis tool

5.2 System Security

5.3 The Contractor shall train and support account executives, OHP management, and other HUD users. ................................................................................................. Error! Bookmark not defined.7

5.4 The Contractor shall enhance OHF's operational capabilities

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Work Statement (PWS)

Integrated Underwriting, Asset Management, and Document

Management Solution

Vision Statement

To obtain contractor support services to provide financial risk management solutions that allows us to retain our current risk management functionality while integrating the Office of Hospital Facilities (OHF) underwriting and asset management functions. By obtaining these services, HUD will be able to coordinate and integrate the underwriting and asset management activities and accomplish HUD's mission of improving the way HUD does business.

1 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD), Office of Healthcare Programs (OHP) requires contractor support to provide financial risk management support services. Services shall include analyzing financial statements, developing cash flow statements, and assessing probability of default for both new applicants and existing portfolio hospitals.

1.2 Background

The Office of Hospital Facilities currently manages its portfolio with the assistance of a contractor utilizing business risk tools to analyze the portfolio and deliver comprehensive financial risk management services. Our current service provides significant asset management enhancements in advanced financial analysis, analysis of cash flows, and probability of default analysis. While the service offers strong asset management capabilities, it lacks the ability to integrate underwriting functionality and document management services. Historically, underwriting and asset management activities are separate and distinct processes. The effect of these siloed activities has been duplicate data entry and poorly coordinated document storage.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government

• HUD Handbook 4615.1 REV-1, Hospital Mortgage Insurance Program

• HUD Handbook 1325.01, Privacy Act Handbook

• HUD Handbook 2400.25, Information Technology Security Policy, Revision 4 (and subsequent revisions)

• HUD Handbook 732.3, Personnel Security/Suitability

• Statement on Standards for Attestation Engagements No. 16 (SSAE 16) Reporting on Controls at a Service Organization

• OMB Circular A-123, Management’s Responsibility for Internal Control

• OMB Circular A–130, Management of Federal Information Resources, Appendix III, Security of

Federal Automated Information Resources

• Homeland Security Presidential Directive 12 (HSPD–12)

• OMB Memorandum M-05-24, Implementation of Homeland Security Presidential Directive

(HSPD) 12

• OMB Memorandum M-03-22, OMB Guidance for Implementing the Privacy Provisions of the E-

Government Act of 2002

• OMB Memorandum M-99-20, Security of Federal Automated Information Resources

• OMB Memorandum M-06-15, Safeguarding Personally Identifiable Information

• OMB Memorandum M-06-16, Protection of Sensitive Agency Information

• OMB Memorandum M-06-19, Reporting Incidents Involving PII

• OMB Memorandum M-06-20, Reporting Instructions for the Federal Information Security Act and Agency Privacy Management

• OMB Memorandum for Chief Information Officers:

https://www.fismacenter.com/fedrampmemo.pdf

• Federal Information Processing Standards (FIPS) Publications http://csrc.nist.gov/publications/PubsFIPS.html

• Federal Information Processing Standards 201 (FIPS 201), Sections 2.1 and 2.2

• NIST Special Publications (800 Series) http://csrc.nist.gov/publications/PubsSPs.html

• Federal Information Security Management Act (FISMA)

• Federal Information Systems Controls Audit Manual (FISCAM, Government Accountability

Office) https://www.fismacenter.com/fedrampmemo.pdf

• Statements of Federal Financial Accounting Concepts and Standards, Federal Accounting

Standards Advisory Board (FASAB)

• Authoritative Documents from Accounting and Auditing Policy Committee Processes

• Generally Accepted Government Auditing Standards (GAGAS)

1.4 Description of Services

HUD requires a Contractor who shall provide a commercial off the shelf financial risk management system to support the review, analysis, collaboration and decision-making process required during underwriting. The service will also, manage and store documents, streamline data entry, provide risk rating capabilities, generate portfolio-wide dash board reports and provide hospital-specific probability of default analysis. The services shall include:

o Support for the Underwriting Process o Facilitate Financial Statement Spreading o Model Financial Data o Calculate OHF Defined Risk Ratings o Facilitate Portfolio Monitoring o Store and Manage Documents o Provide Database Maintenance and Technical Support o Train and Support Staff o Enhance Operational Capabilities

Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and Deliverables.

1.5 Non-Personal Services

The Government will 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 Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently

Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for one base period of 12 months and four 12-month option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the contractor facility.

1.8 Hours of Operation

N/A

1.9 Special Qualifications

N/A

1.10 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post

Award Conference with the Contractor within ten business days after contract award. The Contracting

Officer will notify the Contractor of the specific date, location and agenda within five business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officer’s Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer will apprise the Contractor of how the

Government views the Contractor's performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award

Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Washington, DC. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

1.13 Transition In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 180 day

Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the sixty 60 day Transition-Out period.

The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the

Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

2 Definitions and Acronyms

2.1 Definitions

Business/Work Days - Every official work day of the week which are days between and including

Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the week.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the

Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Defective Service - A service output that does not meet the standard of performance associated with the

Performance Work Statement.

Deliverable - Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP) - Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Contracting Officer’s Representative (COR) - An employee of the U.S. Government appointed by the

Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does

NOT have authority to change the terms and conditions of the contract.

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard - The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Physical Security - Actions that prevent the loss or damage of Government property.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Assurance Surveillance Plan (QASP) - A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

Quality Control (QC) - All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level

CO - Contracting Officer

COR - Contracting Officer Representative

EST - Eastern Standard Time (U.S.)

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

OCPO - Office of the Chief Procurement Officer

PM - Project Manager

POC - Point of Contact

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the

Contractor, the GFP shown below.

3.1 Government Services

No Government services will be provided.

3.2 Facilities

No facilities will be provided by the Government.

3.3 Equipment

No equipment will be provided by the Government.

3.4 Materials

Copies of required materials may be provided to the Contractor in hard copy or soft copy. All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the

Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The contractor shall furnish all facilities required to perform the work under this contract that are not listed under Government Furnished Property and Services.

4.2 Equipment

The contractor shall furnish all equipment required to perform the work under this contract that are not listed under Government Furnished Property and Services.

4.3 Material

The contractor shall furnish equipment and supplies required to perform the work under this contract that are not listed under Government Furnished Property and Services.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S.

Government. These files/results must be surrendered to the COR.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager. These

Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel.

The Contract/Project Manager and alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance and direction from the COR, GTM and CO per HUDAR 2452.237-73, "Conduct of Work and Technical

Guidance" and shall be allocated enough hours to the requirement to ensure successful performance.

These points of points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm Monday through Friday EST, except Federal

Holidays or when the Government facility is closed for administrative reasons.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation or at a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its

Quality Assurance Surveillance Plan (QASP). The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 Specific Tasks

5.1 The Contractor shall provide an underwriting and asset management analysis tool.

Performance Standards

a) Standard: The Contractor shall provide an underwriting and asset management analysis tool.

AQL: Zero deviation from the standard.

Deliverables

A001 Financial Reports

5.1.1 The contractor and the tool shall support the underwriting process.

Automate the origination process

Standardize the credit write-up process

Incorporate financial data from the spreading features into the credit memos

5.1.2 The Contractor and the tool shall collect administrative, financial and utilization data.

Provide a highly configurable platform for financial statements and unique OHF-specific financial ratios and risk ratings. The financial ratios and risk ratings will be updated regularly to meet OHF’s needs.

The platform will be configured to meet common hospital accounting standards such as generally accepted accounting principles (GAAP) and Governmental Accounting Standards Board (GASB)

Provide the capability to create, edit, and delete hospital administrative, financial, and utilization information

Import existing historical data

Facilitate and support ongoing data entry from Account Executives

Develop processes to minimize data entry errors

Update database data in real-time

5.1.3 The Contractor and the tool shall store and manage all electronic documents.

Store various document types, including word-processing files, emails, portable document formats

(PDFs), and spreadsheets Provide secure storage for underwriting application documents

Provide secure storage for asset management documents

Provide framework for organizing all digital documents

Provide search capabilities including optical character recognition for PDF documents

Facilitate the control and regulation of when out-of-date documents can be deleted

5.1.4 The Contractor and the tool shall analyze and report interim and annual financial and utilization data.

Provide database search capabilities

Spread hospital financial and non-financial data (balance sheet, profit/loss statements, ratios, cash flows, and utilization statistics)

Build and model financial projections

Model financial statement data for underwriting new deals and managing existing credits

Model and analyze UCA Cash Flow for both historical data and future projections

Provide configurable financial ratios for dashboard reporting of individual hospitals and the overall portfolio

Benchmark performance to comparable hospitals and regions

Develop hospital industry-specific probability of default analysis and/or shadow rating capabilities

Create configurable risk ratings on individual hospitals based on OHF-specific methodologies

Run multiple projection scenarios (i.e. feasibility, budget, etc.) and perform sensitivity analysis based on changing economic and legislative issues

Allow the creation and analysis of "family entities based on parent, subsidiary, holding companies, etc.

Generate hospital-level and portfolio-level financial and statistical reports

Incorporate financial data from the spreading features into asset management memos and other narrative documents

5.1.5 The Contractor shall provide system administration and data maintenance.

Allow significant time and provide a dedicated professional services team to meet HUD specific transition requirements for implementation, customizations, model deployments, data migration, and advisory services.

Provide user manuals

Provide ongoing technical and software support

Provide ongoing customization as necessary

Provide all software updates to ensure that the platform is operating on the most recent version of the software available

Maintain analytic tools and databases

Provide flexible data storage capabilities

Ensure system scalability to accommodate any potential future program or user growth

Upload data from HUDs FHA Subsidiary Ledger (FHASL) system. This data is provided in a Microsoft

Excel based file on a monthly basis and contains loan level information including: FHA project numbers, closing dates, interest rates, unpaid principal balances, etc.

Export financial data on a monthly basis to HUDs Online Property Integrated Information Suite (OPIIS) to manage individual financial information on borrowers

Provide security and technical controls outside of HUDs firewall. It is expected that 75 HUD employees in multiple geographic locations will access the tools

Possess the flexibility to possibly manage the future data requirements of the Office of Residential Care

Facilities (Section 232)

5.2 System Security

The Contractor shall provide the Office of Healthcare Programs business services that fully support federal information systems security standards.

The Contractor shall be governed by HUD and federal information security policies.

The Contractor shall ensure that all applicable security guidelines, policies, and regulations are met at all times during the execution of the tasks and requirements of this PWS.

The Contractor shall ensure that the requirements of HUD Handbook 2400.25 REV 4, Information

Technology Security Policy, dated August 2014 (and subsequent revisions) are incorporated into the

Contractors business services and operations.

5.2.1 Security Procedures

The Contractor shall comply with applicable federal and HUD statutes, regulations, policies, and procedures governing the security of the system(s) to which the contractor’s employees have access including, but not limited to:

(i) The Federal Information Security Management Act (FISMA);

(ii) OMB Circular A–130, Management of Federal Information Resources, Appendix III, Security of

Federal Automated Information Resources;

(iii) HUD Handbook 2400.25, Information Technology Security Policy;

(iv) HUD Handbook 732.3, Personnel Security/Suitability;

(v) Federal Information Processing Standards 201 (FIPS 201), Sections 2.1 and 2.2;

(vi) Homeland Security Presidential Directive 12 (HSPD–12);

(vii) OMB Memorandum M–05–24, Implementing Guidance for HSPD–12; and

(viii) OMB Memorandum for Chief Information Officers:

https://www.fismacenter.com/fedrampmemo.pdf

The HUD Handbooks are available online at: http://www.hud.gov/offices/adm/hudclips/ or from the

COR.

The contractor shall develop and maintain a compliance matrix. The contractor shall identify an accountable person for each requirement, the date upon which actions/procedures were initiated/completed, and certify that information contained in this compliance matrix is correct. The contractor shall ensure that information in this compliance matrix is complete, accurate, and up-to-date at all times for the duration of this contract. Upon request, the contractor shall provide copies of the current matrix to HUD. The compliance matrix shall complete the Risk Management Framework lifecycle (NIST

SP800-37) including without being limited to:

(i) Implementation of controls in accordance with NIST 800-53 and documentation of those controls using HUD’s Computer Security Assessment and Management (CSAM) system;

(ii) Annual self-assessment of controls in accordance with NIST 800-53A and documentation of those assessment using CSAM;

(iii) Maintenance and reporting of Plans of Action and Milestones to remedy control deficiencies and documentation of same using CSAM

(iv) Documentation of security and system management procedures and required to complete the System

Security Plan in CSAM including without being limited to documentation covering configuration management, access control, and all internal and external interfaces and system interconnections.

(v) Technical and procedural documentation to support classification for system security and privacy purposes including but not limited to NIST FIPS 199, major system classification iaw HUD policy, financial system designation in accordance with OMB Circular A-123, Appen dix D, and Privacy

Threshold Analysis in accordance with HUD policy.

(vi) Timely implementation, maintenance, assessment, and remediation of controls in CSAM to assure timely completion of an initial Authority to Operate prior to the start of operation and timely renewals.

The Contractor shall ensure that its employees, in performance of the contract, receive annual training (or once if the contract is for less than one year) in HUD information technology security policies, procedures, computer ethics, and best practices in accordance with HUD Handbook 2400.25.

5.2.2 Incident Response Notification

An incident is defined as an event, either accidental or deliberate, that results in unauthorized access, loss, disclosure, modification, or destruction of information technology systems, applications, or data. The contractor shall immediately notify HUD-CERT and the COR and the Contracting Officer of any known or suspected incident, or any unauthorized disclosure of the information contained in the system(s) to which the contractor has access.

5.2.3 Access to Contractor’s Systems

The Contractor shall afford HUD, including the Office of Inspector General, access to the Contractor's facilities, installations, operations, documentation (including the compliance matrix required under section 5.3.1), databases, and personnel used in performance of the contract. Access shall be provided to the extent required to carry out, but not limited to, any information security program activities, investigation, and audit to safeguard against threats and hazards to the integrity, availability, and confidentiality of HUD data and systems, or to the function of information systems operated on behalf of

HUD, and to preserve evidence of computer crime.

5.2.4 Contractor Compliance with this Section

Failure on the part of the contractor to comply with the terms of section 5.3 may result in termination of this contract for default.

Performance Standards

a) Standard: 100% compliance with FISMA, NIST, and HUD security and privacy policies.

AQL: No deviation from standard

A002 Compliance Matrix

5.3 The Contractor shall train and support account executives, OHP management, and other HUD users.

The Contractor shall prepare training materials specific to the underwriting and asset management analysis tool. The Contractor will provide initial staff-led training for OHP Account Executives, OHP management and other HUD users via a variety of classroom, electronic, and self-study techniques.

The Contractor shall develop and maintain efficient and effective methods for providing ongoing guidance, training, and support to OHP Account Executives, OHP management, and other HUD users of the underwriting and asset management analysis tool.

The Contractor shall assess OHP staff skills and provide a training annually on topics related to credit analysis and risk management. Topics might include, financial statement analysis, UCA cashflow analysis, credit risk analysis, credit rating analysis, etc.

As an additional resource, the Contractor shall provide access to a rating agency subscription service.

The information obtained through an on-line rating service will enable HUD to conduct a thorough financial review of potential client hospitals and health facilities. This subscription also provides access the rating agencies' healthcare analytical teams with questions about the reports, participate in healthcare sector conference calls, and receive periodic reports assessing the healthcare sector. This subscription will enable HUD to download reports on selected hospitals and related entities. It also will entitle HUD to access the rating agencies' healthcare analytical teams with questions about the reports, participate in healthcare sector conference calls, and receive periodic reports assessing the healthcare sector.

Performance Standards

a) Standard: The Contractor shall train Account Executives, OHP management and other HUD users on the underwriting and asset management analysis tool.

The Contractor shall provide initial and ongoing support for Account Executives, OHP management, and other HUD users of the underwriting and asset management analysis tool.

AQL: Zero deviation from the standard.

b) Standard: The Contractor shall conduct a skills assessment of staff and provide credit analysis and risk management training.

c) Standard: The Contractor shall provide access to a rating agency subscription service.

A003 User Training and Support

A004 Credit Analysis and Risk Management Training

A005 Rating Agency Reports

5.4 The Contractor shall enhance OHF’s operational capabilities

The Contractor shall conduct ad hoc special analyses upon request of the COR, using annual financial statement data, program data, and other available data sources to (a) improve OHF underwriting, asset management, resource management, or portfolio analysis, and/or to (b) improve methods for analyzing these activities.

Performance Standards

STD: The Contractor shall prepare ad hoc written reports involving data analysis on topics approved by the GTM.

AQL: Zero deviation from the standard.

Deliverables

Ad hoc Written Reports

6 Deliverables

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Number Name Frequency Quantity

A001 Financial Reports Every other monthly

A002 Compliance Matrix Ongoing

A003 User Training and Support Ongoing

Classroom, electronic, and self-study

A004 Credit Analysis and Risk Management Training Annually 1

Classroom or web-based

A005 Rating Agency Reports Ongoing

6.1 Quality Control Plan

The Contractor's QCP shall be delivered to the COR within 30 days after contract award (or with the

Contractor's proposal if it is an evaluation factor). The QCP shall be submitted to the COR within ten (10) business days when changes are made thereafter. After acceptance of the QCP, the Contractor shall receive the Contracting Officer's acceptance in writing of any proposed change to its quality control system.

6.2 Acceptance Criteria

All deliverables shall be submitted in a draft format agreed upon by the Contractor and the Government.

Upon review and acceptance by the Government, the Contractor shall address all Government comments and submit a final draft within 5 business days of Government notification.

7 Performance Requirements Summary

The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While some contract requirements may not be listed in the chart below, requirements not appearing on the PRS chart do not negate the

Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and GTM may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services.

8 Related Documents

The Contractor shall abide by all applicable regulations, publications, manuals, policies and procedures in the performance of this contract.

Performance Requirement Summary (PRS)

Statements Standards/AQLs Incentive/Remedy

5.1 The Contractor shall

provide an underwriting and asset management analysis tool.

a) The Contractor shall provide a reliable underwriting and asset management analysis tool.

AQL: Zero deviation from the standard.

If the Contractor meets or exceeds the performance standards, the COR will document the past performance report card, paying particular attention to performance that exceeded the standard. If the

Contractor fails to meet the required performance standard, the COR will document the past performance report card, paying particular attention to performance that failed to meet the standard.

5.1.1 The contractor and the

tool shall support the underwriting process.

5.1.2 The Contractor and

the tool shall collect administrative, financial and utilization data.

5.1.3 The Contractor and

the tool shall store and manage documents.

5.1.4 The Contractor and

the tool shall analyze and report interim and annual financial and utilization data.

5.1.5 The Contractor shall

provide system administration and data maintenance.

5.2 System Security a) 100% compliance with FISMA, NIST, and HUD security and privacy policies.

AQL: No deviation from standard

If the Contractor meets or exceeds the performance standards, the COR will document the past performance report card, paying particular attention to performance that exceeded the standard. If the

Contractor fails to meet the required performance standard, the COR will document the past performance report card, paying particular attention to

5.3 The Contractor shall

train and support account executives, OHP management, and other HUD users.

a) The Contractor shall train Account

Executives, OHP management and other HUD users on the underwriting and asset management analysis tool.

The Contractor shall provide initial and ongoing support for Account

Executives, OHP management, and other HUD users of the underwriting and asset management analysis tool.

AQL: Zero deviation from the standard.

b) The Contractor shall conduct a skills assessment of staff and provide credit analysis and risk management training.

AQL: Zero deviation from the standard.

c) The Contractor shall provide access to a rating agency subscription service.

AQL: Zero deviation from the standard.

If the Contractor meets or exceeds the performance standards, the COR will document the past performance report card, paying particular attention to performance that exceeded the standard. If the

Contractor fails to meet the required performance standard, the COR will document the past performance report card, paying particular attention to performance that failed to meet the standard.

If the Contractor meets or exceeds the performance standards, the COR will document the past performance report card, paying particular attention to performance that exceeded the standard. If the

Contractor fails to meet the required performance standard, the COR will document the past performance report card, paying particular attention to