Draft_PWS_9.23.2018.docx

Performance Work Statement (PWS) Single Family Claims Processing Services

Vision Statement

To provide outstanding customer service to all stakeholders, the mortgage industry and internal partners, through timely and accurate claim payments and financial operations.

1 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD), Single Family Post Insurance Division (SFPID) Single Family Claims Branch (SFCB) is seeking contractor support to provide claims processing services.

1.2 Background

SFPID provides mortgage insurance for Mortgagees against losses from financing the purchase of single family homes and disposes of all properties acquired in exchange for payment of insurance benefits. When a homeowner defaults on a Single Family FHA-insured mortgage, the Mortgagee presents a claim for insurance benefits to FHA. The SFCB is responsible for the payment of insurance benefits based on claims filed by FHA-approved Mortgagees, totaling $18 billion in Fiscal Year 2017. The SFCB has two sections: Review and Compliance Section (RCS) and Financial Operations and Control Section (FOCS). The RCS is responsible for processing insurance claims and providing technical guidance to Mortgagees regarding the proper submission of claims. The FOCS is responsible for the following financial activities: processing manual payment requests, collections, administrative offsets, disbursements and reissued payments; updating the Accounts Receivable Subsystem (ARS); reviewing and routing mail (e.g., correspondence, claims) received by the SFCB; and maintaining files of claim source document forms.

To file a claim, Mortgagees submit HUD-27011 Form, Single Family Application for Insurance Benefits, which consists of Parts A, B, C, D, and E with a total of 412 data fields including personally identifiable information. Claim processing is largely automated and carried out by Single Family Insurance System (SFIS) - Claims Subsystem (CLAIMS/A43C). Mortgagees submit Conveyance, Single Family Loan Sale, Hawaiian Homelands, Claims Without Conveyance of Title, Pre-foreclosure Sales, Special Forbearance, Loan Modification, and Partial Claims via CLAIMS/A43C. Using the Mortgagee entered data fields, CLAIMS/A43C provide automated verification of monetary limits and timeline requirements through various edit checks. Claims that fail the system edit checks are automatically placed into suspension by CLAIMS/A43C, which notifies the Mortgagee of the applicable edit code. A Claims Analyst must review the supporting documentation for each applicable edit code prior to processing for payment.

On average, the single family claim review process can take between twenty (20) minutes and one (1) hour per claim. Monthly, SFPID reviews, controls, and processes three thousand and five hundred (3,500) single family insurance claims.

1.3 Constraints

The Contractor identified in this PWS will adhere to the rules, regulations, laws, standards, publications, manual, policies, procedures, and conventions identified by HUD as well as within the Federal Government in the performance of this contract.

Constraints include the following:

· Title 24 of the Code of Federal Regulations (CFR) Part 203 https://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr203_main_02.tpl

· 24 CFR Part 206 http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr206_main_02.tpl

· Mortgagee Letters related to FHA single family insurance claim processes

· HUD issues FHA Mortgagee Letters to inform Mortgagees about FHA operations, policies, procedures, and changes. Mortgagee letters are issued randomly. One claim can have several Mortgagee letters that are applicable.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/Mortgagee

· Single Family Housing Policy Handbook (HUD Handbook 4000.1) https://portal.hud.gov/hudportal/documents/huddoc?id=40001HSGH.pdf

· Federal Risk and Authorization Management Program (FedRAMP) https://www.fedramp.gov/

1.4 Description of Services

HUD seeks a Contractor who shall provide single family claims processing services. These services include:

· Transition In

· File/Maintenance and Document Control

· Single Family Claims Review and Processing for Forward Mortgages

· Financial Operations

· Transition Out Detailed descriptions of specific tasks are provided in Section 5: Specific Tasks.

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 (1) base period of twelve (12) months and four (4) twelve (12) month option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor’s facility.

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:00 am and 5:00 pm Eastern Standard Time (EST), Monday through Friday except for Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. Weekly hours shall not exceed a forty (40) hour work week and a typical work day will be eight (8) hours each day, Monday through Friday. The Government reserves the right to change hours of operation or restrict Contractor access. Work outside of these daily hours is prohibited without the Contracting Officer Representative’s (COR) approval. Government employees will not be available during weekends, scheduled holidays, and after duty hours; there may be limited availability during inclement weather.

The Contractor shall always maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

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 Federal Acquisition Regulation (FAR) Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten (10) business days after contract award. The CO will notify the Contractor of the specific date, location, and agenda within five (5) business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officer 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. The Contractor will take meeting minutes including date, duration, attendees, key accomplishments, upcoming priorities, items requiring HUD direction and outcome, action items (with responsible party, due date, and status) - open, action items – closed since last meeting, and summary of discussion topics. The meeting minutes shall be provided to the CO, COR, and SCOR for review and approval within three (3) business days of the meeting. Post Award Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

No Contractor travel is anticipated during the performance period of this contract.

2 Definitions and Acronyms

2.1 Definitions

Advice of Payment (AOP) - A letter to the Mortgagee outlining FHA case and claim information, including detailed paid claim amounts.

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.

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.

Contracting Officer Representative (COR) - An employee of the United States (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.

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.

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 or electronically delivered but may include non-manufactured things such as meeting minutes or reports.

Electronically - By means of electronic equipment or devices.

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.

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 requirements, 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 contract’s 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 or service shall meet contract requirements.

Service Contract - A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Subcontractor - Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Subordinate Contracting Officer Representative (SCOR) - An individual designated by the Contracting Officer to assist in providing technical direction and monitoring performance under the contract.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AOP - Advice of Payment AQL - Acceptable Quality Level ARS - Accounts Receivable Subsystem AX2 - Treasury Disbursement Statistics CFR - Code of Federal Regulations CID - Contractor Identification CLAIMS/A43C - Claims Subsystem CLIN - Contract Line Item Number CMB - Cash Management Branch CMR - Comprehensive Monthly Report CO - Contracting Officer COR - Contracting Officer Representative CWR - Comprehensive Weekly Report DEPCON - Distributive Enterprise Controller EFT - Electronic Funds Transfer EST - Eastern Standard Time (U.S.)

FAR - Federal Acquisition Regulation FedRAMP - Federal Risk and Authorization Management Program FHA - Federal Housing Administration FOCS - Financial Operations and Control Section HERMIT - Home Equity Reverse Mortgage Information Technology HUD - U.S. Department of Housing and Urban Development HUDAR - HUD Acquisition Regulation LX1 - Non-EFT Held Payment MS - Microsoft PIV - Personal Identity Verification POC - Point of Contact PWS - Performance Work Statement QA - Quality Assurance QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan SCOR - Subordinate Contractor Officer Representative SFCB - Single Family Claims Branch SFIS - Single Family Insurance System SFPID - Single Family Post Insurance Division U.S. - United States VPN - Virtual Private Network 3 Government-Furnished Property and Services

3.1 Government Services

HUD headquarters staff shall conduct initial training for the Contractor for all tasks specified in Section 5: Specific Tasks. Additional training shall be provided by HUD if and when the Contractor is directed to perform other activities required under this order or if changes are made to systems, procedures, or processes.

The initial training will include hands on experience accessing the SFIS (A43), CLAIMS/ARS Subsystems (A43C), Asset Disposition and Management System, SharePoint, and any other HUD system in processing each type of claim screen; written system access procedures; and instructions regarding the type of technical advice and manner for providing it to designated HUD personnel and HUD Offices. Training shall also include retrieval of appropriate system reports.

3.2 Facilities

No facilities will be provided by the Government.

3.3 Equipment

The Government will provide the Contractor a HUD Virtual Private Network (VPN) Connection to provide a secure connection to HUD.

3.4 Materials

The Government will provide training materials in hard copy and the HUD Handbook 4000.1 in electronic form to the Contractor on the day of training, which will be performed by a designated Government official. All materials remain the property of the Government and shall be returned to the COR/SCOR upon request or at the expiration date of the contract.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan (QASP). 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 their own facilities. The Contractor shall maintain and operate a facility of sufficient size to accommodate the personnel and equipment necessary for performance of the requirements specified in this action.

4.2 Equipment

The Contractor shall be responsible for providing all equipment and maintenance at the Contractor’s facility. The Contractor shall provide personal computers, printers, fax machines, scanners, Internet access, desks, designated space, office supplies, software and any other equipment that is necessary to perform the work specified in the PWS. All equipment shall be operational five (5) days a week, Monday through Friday during times listed within this contract. Locked storage cabinets and/or areas, telecommunication hook-ups, and all office supplies to include furniture (e.g., chairs, desk/work tables, sorting bins or shelves, computer tables, file cabinets for document storage) shall be provided by the Contractor to complete the task activities.

4.3 Material

N/A

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/electronic data shall be surrendered to the COR/SCOR upon request or at the expiration date of the contract.

4.5 Contractor Personnel

For Key Personnel, the Contractor shall provide a Project Manager and Senior Claims Analyst.

These Contractor personnel are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel.” Accordingly, at a minimum, the Key Personnel assignment, guidance, and direction from the COR, SCOR, 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 Key Personnel shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Project Manager or Senior Claims Analyst shall be available between the hours of 8:00 am to 5:00 pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

Project Manager Functional Responsibility: The Project Manager is responsible for overall contract performance in compliance with the PWS. The Project Manager shall be capability to manage complex projects with large contract values, effective leadership skills, commitment to quality control, the ability to monitor and supervise project teams, and ensure completion of projects on-time within established budgets. The Project Manager shall have full authority to act on all contact matters relating to daily operations of this contract and shall serve as HUD’s prime point of contact for the contract.

Minimum Experience: 5 years of progressive experience simultaneously managing multiple projects or task orders with a high level of technical and organizational requirements.

Minimum Education: Master’s degree or a Bachelor’s degree with an active and in good standing Project Management Professional Certification.

Senior Claims Analyst Functional Responsibility - The Senior Claims Analyst is responsible for being the single family insurance claim subject matter expert. The Senior Claims Analyst shall train and provide oversight to the Claim Analysts, perform risk-based quality control reviews, and pay authorize claims processed by Claim Analysts.

Minimum Experience - 2 years of insurance claims processing experience Minimum Education – Bachelor’s degree in Business Administration, Accounting, or Finance

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 Management Plan

The Contractor shall establish and maintain a Management Plan to document the project execution details and ensure services are performed in accordance with this contract. The Management Plan shall provide the Contractor’s method for managing the project’s resources, schedules, costs, and risks. The Management Plan shall be sufficiently detailed to provide the Contractor's methodology for identifying, recruiting, and retaining qualified personnel. The Management Plan shall provide the Contractor’s plans to adhere to the schedule and costs of the contract. The Management Plan shall provide the Contractor's methodology for resolving internal and external problems including those identified by the Government during reviews conducted in accordance with its QASP. The Management Plan shall also provide the Contractor's communication plan with the COR, SCOR, and HUD employees. The Contractor's Management Plan shall be delivered with the Contractor's proposal.

4.8 Quality Control Plan (QCP)

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 it assures itself that its work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

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 QASP. The QCP shall 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. The Contractor's QCP shall be delivered with the Contractor's proposal.

5 Specific Tasks

5.1 Transition In

The Contractor shall, upon the CO's written notice, furnish Transition In services as required.

As a successor, the Contractor shall have sufficient personnel on board during the ninety (90) 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.

The Contractor shall perform the following tasks:

· Submit personal identity verification (PIV) paperwork within two (2) business days of paperwork receipt

· Track digital single family claim packages received daily

· Train with HUD headquarters staff on processes and systems

· Complete single family claim test cases

· Prepare and provide a Transition In Weekly Status Report to the SCOR to include:

· Staffing Report - the status of the PIV process, Contractor Identification (CID), and system access for each employee

· Project Report - work/activities completed, work/activities in progress, issues/risks to not meeting the project objectives, and planned activities (i.e., cumulative number of claims received, training completed, and test cases completed) Deliverable A001 Transition In Weekly Status Report

5.2 Single Family Claims Processing Support and Financial Operations

5.2.1 File/Record Maintenance and Document Control

The Contractor shall perform the following tasks:

· Archive all Contractor paid claims and supporting documentation digitally in compliance with FedRAMP requirements within five (5) business days of payment from the beginning of the contract

· Prepare and submit a Comprehensive Monthly Report (CMR) that shall include:

· An update of the status of all file/record maintenance and document control activities performed during the month Performance Standards

a) Standard: 100% archive Contractor paid claims and supporting documentation digitally within five (5) business days of payment AQL: Zero Deviation

Deliverable A003 Comprehensive Monthly Report

5.2.2 Single Family Claims Review and Processing for Forward Mortgages The Contractor shall perform the following:

· Track digital single family claim packages received daily

· Review, analyze, research, calculate, process, and take appropriate action for payment or return to Mortgagee for additional action in accordance with HUD Handbook 4000.1, pertinent Mortgagee Letters, and Frequently Asked Questions provided by HUD

· Process single family claims within ninety (90) days of receipt, follow the first-in, first-out method, and priority process Conveyance and Reconveyance Claim types

· Process three thousand and five hundred (3,500) single family claims monthly

· Communicate returns and denials to the Mortgagee within one (1) business day of completing the claim review

· Respond to email requests from Mortgagees regarding single family claims within three (3) business days of receipt

· Enter appropriate information into CLAIMS/A43C based upon the appropriate action as a result of the claim review

· Assist with documenting procedures used for process improvements within five (5) business days of request

· Prepare and submit a Comprehensive Weekly Report (CWR) – Single Family Claims (Forward Mortgages), This report shall include:

· The beginning and ending date for the week of the report with each day identified by day and date.

· The following data items by: total claims received, total claims processed, claims to be returned to mortgagees, claims to be paid, claims to be denied, no action needed, and refunding due to HUD/billing

· Calculate the following: opening balance, (plus) claims received, (plus) claims received from mortgagees with additional information, adjustment to batches, less total claims processed, total claims on hand with Contractor, total unprocessed claims on hand, and any remarks

· The reconciliation results of the single family claims inventory on hand by FHA case number against the HUD single family claims report

· Plan of action by FHA Case Number for unprocessed claims that were received sixty (60) days or more and remain unprocessed

· The FHA case number and the corrective action taken for all single family claims that were rejected by the SCOR for correction

· Prepare and submit a Comprehensive Monthly Report (CMR) that contain the CWRs for that month and shall include:

· Notable Accomplishments – tasks completed or area(s) exceeding target expectations

· Project Management – upcoming milestones and/or deliverables in progress

· Risk Management - identify in detail any issues/risks to not meeting the project, impact to the project, and corrective action

· Financial Management – summary of the contract award amount to period of performance including invoices by month of submitted, rejected, corrected, or paid

· Staffing Management – total positions, prime and subcontractor breakout, gains/losses, PIV process, CID, and system access for each employee

Performance Standards

a) Standard: Process single family claims within ninety (90) days of receipt, follow the first-in, first-out method, and priority process Conveyance and Reconveyance Claim types AQL: Zero Deviations

b) Standard: Process three thousand and five hundred (3,500) single family claims monthly AQL: Zero Deviation

c) Standard: Communicate returns and denials to Mortgagees within one (1) business day of the completing the claim review AQL: Zero Deviation

Deliverables A002 Comprehensive Weekly Report A003 Comprehensive Monthly Report

5.2.3 Financial Operations

The Contractor shall perform the following tasks:

· Process all manual claim payments daily by 11:00 am, outside of CLAIMS/A43C

· Retrieve the electronic manual claim vouchers by 2:00 pm daily

· Return electronic processed vouchers to FOCS by 8:00 am for certification daily

· Download the Treasury Disbursement Statistics (AX2) and Daily Non-EFT Held Payment (LX1) Reports utilizing Distributive EnterPrise Controller (DEPCON) daily and save to SFPID SharePoint site

· Remit electronically via email to the Cash Management Branch (CMB) the AX2 by 11:00 am daily

· Monitor the LX1 daily, research why the payment was rejected, and perform outreach to mortgagees for correction within five (5) business days of appearing on the report

· Extract payment data from Home Equity Reverse Mortgage Information Technology (HERMIT) by 9:30 am daily and remit payment the same day by 12:00 pm

· Review and verify manual payments against the disbursement confirmation reports daily

· Match CLAIMS/A43C paid claim source documents to the payment schedules for all claim types and resolve any discrepancies identified within five (5) business days

· Mark each voucher with the paid date per the Disbursement Report received from CMB twice a week

· Send the paid voucher and Advice of Payment (AOP) to the Mortgagee once received from CMB twice a week

· Prepare the claim documents including disbursement sheet and AOP for digital archive twice a week

· Prepare and submit a CWR that include a File Status Report with the paid total claims

· Prepare and submit a CMR that contains the CWRs for that month and a Non-Held Payment Status Report to the SCOR/COR monthly Performance Standards

a) Standard: Process manual voucher payments by 11:00 am daily AQL: Zero Deviation

b) Standard: Retrieve the electronic manual claim vouchers by 2:00 pm daily AQL: Zero Deviation

c) Return electronic processed vouchers to FOCS by 8:00 am daily AQL: Zero Deviation

d) Standard: Remit the AX2 schedule to CMB via email by 11:00 am daily AQL: Zero Deviation

e) Standard: Extract payment data from HERMIT by 9:30 am daily and remit payment the same day by 12:00 pm AQL: Zero Deviation Deliverables A002 Comprehensive Weekly Report A003 Comprehensive Monthly Report

5.3 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 ninety (90) 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 ongoing 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.

The Contractor shall perform the following tasks:

· Prepare and provide lessons learned during the contract’s period of performance

· Return all digital images in HUD readable and transferrable digital format within ten (10) business days after the contract end date

· Prepare and submit a detailed list of any outstanding task that is not processed within ten (10) business days after the contract end date

· Provide detailed training to the new contractor on the single family claim and financial operation process and systems

· Prepare and provide a Transition Out Weekly Status Report to the SCOR. The report shall include:

· The status of the returning HUD PIV and Grid Cards for each employee

· Work/activities completed, work/activities in progress, and planned activities (i.e. lessons learned prepared, digitalized data returned, outstanding tasks, training prepared and conducted, etc.)

Deliverable A004 Transition Out Weekly Status Report 6 Deliverables

Weekly report is due by close of business the following Monday of each reporting week. If holiday/closing, the weekly report is due the next business day. (Task 5.1)

Weekly report is due by close of business the following Monday of each reporting week. If holiday/closing, the weekly report is due the next business day. (Task 5.2)

Monthly report is due by the fifth (5th) business day of each month and thereafter separated by tasks. If the 5th business day is a holiday/closing, the monthly report is due the next business day. (Task 5.2)

A004

Transition Out Weekly Status Report Weekly report is due by close of business the following Monday of each reporting week. If holiday/closing, the weekly report is due the next business day. (Task 5.3)

6.1 Acceptance Criteria

Acceptance of all deliverables shall be submitted in a draft format agreed upon by the Contractor and the Government. Acceptance of all deliverables shall meet the following inspection and acceptance criteria:

· Incorporate all HUD comments.

· Reflect comprehensive research, incorporate complete analysis, and be grammatically correct.

· Deliver in electronic format, readable via MS Office (e.g. Word, Excel, PowerPoint) and other standard software (e.g. Adobe Reader) as listed and described in the above deliverable section. In addition, reports shall be delivered to HUD in Hypertext Markup Language or other applicable electronic format and suitable for posting online to HUD’s internal and external web sites.

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.

Performance Requirement Summary (PRS)

AQL: Zero Deviation 100% deduction for invoice monthly Contract Line Item Number (CLIN)

AQL: Zero Deviation

b) Standard: Process three thousand and five hundred (3,500) single family claims monthly AQL: Zero Deviation

c) Standard: Communicate returns and denials to Mortgagees within one (1) business day of the completing the claim review AQL: Zero Deviation 100% deduction for invoice monthly CLIN for each standard

AQL: Zero Deviation

b) Standard: Retrieve the electronic manual claim vouchers by 2:00 pm daily AQL: Zero Deviation

c) Standard: Return electronic processed vouchers to FOCS by 8:00 am daily AQL: Zero Deviation

d) Standard: Remit the AX2 schedule to CMB via email by 11:00 am daily AQL: Zero Deviation

e) Standard: Extract payment data from HERMIT by 9:30 am daily and remit payment the same day by 12:00 pm AQL: Zero Deviation 100% deduction for invoice monthly CLIN for each standard

The attached QASP will 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 SCOR 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 as identified in the QASP.