S14_Attachment_A_PWS.pdf

Attachment A

Performance Work Statement (PWS)

Post-Closing Portfolio Management (PCPM)

Support

Version 1.0

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 Surplus Cash Analysis

5.2 Finalize Surplus Cash Analysis

5.3 Support and Service

5.4 Maintenance and Updates

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Work Statement (PWS)

Post Closing Portfolio Management (PCPM) Support

Vision Statement

The vision of the Office of Asset Management Portfolio Oversight (OAMPO) is to obtain contrac-tor support to assist the U.S. Department of Housing and Urban Development (HUD) with Post Closing Management Support and Surplus Cash Analysis services. By obtaining these services, HUD will be able to conduct surplus cash calculations, confirm that HUD received correct pay-ments and accomplish HUDs mission of improving the way HUD does business.

1 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD) Office of Asset Management Port-folio Oversight (OAMPO) is seeking contractor support to provide Post Closing Portfolio Man-agement (PCPM) and Surplus Cash Analysis (SCA) to support HUD-held debt generated by three HUD programs. Services shall include analyzing loans held by HUD in accordance with the Mark to Market (M2M) Restructuring Program, the Portfolio Re-Engineering Demonstration Program (Demo Program) and the Partial Payment of Claim (PPC) Program.

1.2 Background

The Office of Asset Management Portfolio Oversight (OAMPO) requires the review of the prop-erty’s annual audited financial statement submitted for each M2M restructured, Demo and Pre- Payment of Claim (PPC) property that has one or more HUD-Held mortgages and insure that HUD receives the correct surplus cash payment. The results of the contractors’ review will con-firm the property Owner’s correct calculations of the surplus cash payment amount due or re-veal that the Owner’s calculation is incorrect and an adjustment to the payment amount is re-quired.

The primary task under this contract is a review and analysis of each property’s Annual Finan-cial Statement (AFS) to verify the surplus cash calculation, and to confirm that HUD received the correct payment on the surplus cash note.

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. Constraints include the following:

The Contractor shall adhere to the Federal General Accepted Accounting Principles

(FEDGAAP)

The Contractor shall adhere the Mark-to-Market Operating Procedures Guide

The Contractor shall adhere HUD Multifamily Handbook 4350.1

The Contractor shall adhere HUD’s M2MAccounting Letters

1.4 Description of Services

The Contractor shall provide a review and analysis of each property’s Annual Financial Statement (AFS) to verify the surplus cash calculation, and to confirm that HUD re-ceived the correct payment on the surplus cash notes. The Contractor shall provide the followings:

o Review and analysis o Managing HUD's Database and Dashboard o Training o Special Assignments

The Contractor shall provide Post Closing Management Support and Surplus Cash

Analysis services. Post-Closing Portfolio Management support services shall include:

o Preliminary Surplus Cash Analysis o Finalize Surplus Cash Analysis o Help Desk Support Services o Re-reviews

Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and De-liverables.

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 as-sign 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) immedi-ately. These services shall not be used to perform work of a policy, decision making, or man-agement nature, i.e. inherently Government functions. All decisions relative to programs sup-ported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be as 12-month base period and four 12-month option periods.

1.7 Place of Performance

The Services shall be performed at the Contractor's facility.

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:30 a.m. and 5:00 p.m. EST, Monday thru Friday, except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government di-rected facility closings. The Government reserves the right to change hours of operation or re-strict Contractor access. The Contractor must at all times 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 maintain the stability and continuity of the workforce is essential.

The Contractor shall at all times maintain an adequate workforce for the uninterrupted perfor-mance of all tasks defined within the contract. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

There are no special requirements.

1.10 Post Award/Kickoff Conference

The Contractor shall attend a post award conference convened by the contracting activity in ac-cordance with FAR Subpart 42.5. The Government intends to convene a Post Award Confer-ence 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, Contractor Officer Representative (COR) and other Government per-sonnel, as appropriate may meet periodically with the Contractor to also review Contractor per-formance, requirement status, etc. At these meetings, the COR 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 ac-tion 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 telecon-ference.

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 ac-commodations to the extent they are available and commensurate with the mission require-ments. HUD will not reimburse Contractor's local travel. All 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 COR written notice, furnish Transition-In plan. As a successor, the Contractor shall have sufficient personnel on board during the 60-day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an or-derly 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 re-quirements 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 60-day Transition- Out period. The incumbent Contractor shall ensure a smooth transition with the successor Con-tractor during the Transition-Out period, prior to completion of contractual performance. The in-cumbent Contractor shall aid the successor in the development of plans, procedures, and meth-ods 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. The transition-out plan is to be provided to the CORs 60 days before expiration date of contrct.

2 Definitions and Acronyms

2.1 Definitions

AFS - HUD generally requires that Annual Financial Statements on the entity that owns the pro-ject securing the Loan be filed electronically with REAC. Some owners are required to only file paper Annual Financial Statements.

Baseline - The stabilized income and expense levels for the project securing the Loan.

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

Contractor Officer Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical is-sues. 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.

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

Defective Service - A service output that does not meet the standard of performance associat-ed with the Performance Work Statement.

Deliverable Anything that can be physically delivered or electron ally 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.

Performance Requirements Summary (PRS) - A listing of the performance requirements un-der 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 surveil-lance 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 acquisi-tions 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.

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

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AE – Account Executive

AFS - Annual Financial Statement

AQL - Acceptable Quality Level

CFR - Code of Federal Regulations

CO - Contracting Officer

COR - Contracting Officer Representative

CRP - Capital Recovery Payment

DEC - Departmental Enforcement Center

EST - Eastern Standard Time (U.S.)

FHA - Federal Housing Administration

FSCA - Final Surplus Cash Analysis

GI - Green Initiative Program

GRP - Green Retrofit Program

HAP - Housing Assistance Payment Contracts

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

HUDAR - HUD Acquisition Regulation

IPF - Incentive Performance Fee

M2M - Mark to Market

OAHP - Office of Affordable Housing Preservation

OGC - Office of the General Counsel

PCPM - Post Closing Portfolio Management

PM - Project Manager

POC - Point of Contact

PPC - Partial Payment Claim

PSCA - Preliminary Surplus Cash Analysis

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

REAC - Real Estate Assessment Center

RECAP - Office of Recapitalization

Re-Review - additional review of an FSCA

SCA - Surplus Cash Analysis

TBD - To be determined

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 fur-nish any Government Property or service to the contractor.

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

PCPM Database - Dashboard Interface

The Government will provide the PCPM database in Access format. Copies of required materi-als 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.

During the contract, the Contractor is required to maintain a back-up of the database. The PCPM Database is the property of HUD and shall be returned at the end of this contract in a format determined by HUD. No duplication of records contained in the database is permitted by the Contractor or any of the Contractors affiliates.

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 Gov-ernment must do to ensure that the Contractor has performed in accordance with the perfor-mance 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 perform at the Contractor's facility to meet the requirements under this

PWS.

4.2 Equipment

The contractor shall furnish all equipment to meet the requirements under this PWS.

4.3 Material

The contractor shall furnish all materials to meet the requirements under this PWS.

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 per-formance of work. An alternate shall also be designated to act in the absence of the Con-tract/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 receive assignment, guidance and direction from the COR 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 po-sitions. 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 per-sonnel during business meetings, over the telephone, or via electronic mail, Contrac-tor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contrac-tors/subcontractors shall identify themselves on any attendance sheet or any coordination doc-uments they may review. Electronic mail signature blocks shall identify their company affiliation.

Where practicable, Contractor/subcontractors occupying collocated space with their Govern-ment program customer shall identify their work space area with their name and company affilia-tion or at a minimum, "Contractor" after name

4.7 Quality Control

The Contractor shall provide, establish and maintain a comprehensive 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-recurrence of defective services or ineffective procedures. The Contractor’s quality control program is the means by which the Contractor assures that all work and work products comply with the requirements of the contract.

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 dur-ing 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 sys-tem 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 Ap-proach, Quality Assurance, Quality Control and Quality Standards. The Contractor shall provide the Quality Control Plan within 30 days after contract award.

5 Specific Tasks

5.1 Surplus Cash Analysis

5.1.1 Receive Annual Financial Statement

Receipt of Property's' Annual Financial Statement (AFS). An AFS is due to REAC in elec-tronic form ninety (90) days after the end of the property’s fiscal year. Most of the properties in the portfolio have a fiscal year-end of December 31st.

Monthly HUD shall provide updated financial information to the Contractor. The financial infor-mation is compiled from the property’s annual AFS. This report provides a wide range of finan-cial data that the Contractor will use to analyze each property’s performance and the determina-tion of the amount of the surplus cash payment owed to HUD. The Contractor shall examine the data within ten (10) days after receipt of the REAC/FASS information and notify the COR’s of those properties for which an electronic statement is due but was not received.

5.1.2 Perform Preliminary Surplus Cash Analysis (PSCA)

Perform a Comparison of Data to M2M, DEMO and/or PPC Underwriting Baselines

Review of Surplus Cash Calculation and Payment Amount. The Contractor shall review the Owners AFS to confirm that the Owner's surplus cash calculation is correct. In the event the Contractor disagrees with the Owners calculations the Contractor shall identify the areas of var-iance and calculate the correct payment (see 5.1.3) This same service will be provided by the Contractor with regard to any partial year financial statements obtained unless otherwise di-rected by the COR’s.

Annual Payment. When the surplus cash calculation in the Audited AFS shows an annual loan payment is due, the HUD-held note requires the Owner to make the loan payment within ten

(10) business days after the due date for filing the AFS. In the SCA, the Contractor shall ana-lyze and provide data to the HUD AE showing amounts paid by the Owner toward the HUD-held debt. The Contractor shall include the conclusions of their analysis as to the accuracy of the Owners calculations and/or sufficiency of payments received.

5.1.3 Analysis of AFS Entries and Variances from HUD’s Established Baseline, in-cluding Action Recommendations for the HUD AE.

Variance Analysis.

The Contractor shall review the property’s audited financial statements for conformance with the baseline derived from the original M2M, DEMO or PPC underwriting as adjusted from year to year. The Contactor will also consider the past 3 years of the of the property’s financial perfor-mance in comparison to the adjusted underwriting baseline. Variances must be identified, and variances that deviate from established thresholds must be analyzed and reported in writing via the PSCA.

Review Guidance and Requirements.

This review shall be designed to identify any failure by the Owner to bill and collect the appro-priate level of income and to identify any expenses that may materially deviate from the level that is reasonable and necessary for the proper operation of the property.

The Contractor review shall include the following income/expense categories:

Operating Income Operating Expenses Real Estate Taxes Property Insurance Utilities Repairs and Maintenance Management Fees Payroll and Benefits General and Administration Security Mortgage Debt Service Escrow(s) Reserve Accounts

All reportable variances are subject to established variance thresholds that will be provided to the Contractor by the COR.s on an annual basis. The Contractor shall pay attention to the rea-sonableness of any contracts where there is an identity of interest between the Own-er/Management Company and the service provider.

In addition, the Contractor, as part of the PSCA, will also verify and report on the calculation of and eligibility to collect a Capital Recovery Payment (CRP) and/or Incentive Performance Fee (IPF). Additionally, if the property is part of HUDs Green Retrofit Program (GRP) or Green Initia-tive Program (GI), PCPM will work with OAMPO/HUD to determine whether the property has met the requirements to receive an IPF (or any additional Owner distributions) and whether the Owner is in compliance with GRP or GI programmatic requirements

When material variances (i.e. variances that deviate from OAMPOs established thresholds) is identified between the first-year baseline or subsequent year baseline information and the actual operating performance in any line item of the Owners financial statement for the property the following activities, at a minimum, are to be included in the Contractors analysis:

HUD Project Management Fee - Verification that the current project management fee amount is in accordance with the M2M restructuring agreement.

Identity of Interest Contracts - Verification that such contracts are on terms at least as favora-ble as those obtainable from qualified, arm’s length Contractors for similar work, and that the quality of goods/services provided under such contracts is acceptable.

Staffing Plan - Consideration of the number and salaries/payroll cost of front line staff proposed to be charged to the property and the percentage of each staff members time proposed to be allocated to the property relative to the levels established in the underwriting projections.

Security/Protection - Where provided for in the underwriting, consideration of current securi-ty/protection expenses in that substantially deviate from underwriting projections

In general, the Contactor will also consider the past 3 years of the of the property’s performance in comparison to the adjusted underwriting baseline when making recommendations to HUD in the PSCA.

5.1.4 Post Preliminary Surplus Cash Analysis (PSCA) for HUD AE approval via online systems (Dashboard)

The Contractor shall identify any other anomalies or departures from the established underwrit-ing and make recommendations to HUD in the PSCA. The Contactor will also consider the past 3 years of the of the property’s performance in comparison to the adjusted underwriting baseline when making recommendations to HUD in the PSCA. The Contractor shall post the PSCA for HUD AE approval using the PCPM database web interface known as the Dashboard.

Performance Standards

a) Standard: 100% of PSCAs posted for HUD AE approval within 90 business days of AFS download (Note: This includes Tasks 5.1.1-5.1.4.

AQL: 5% deviation

5.1.5 Acquire HUD AE Approval of Preliminary Surplus Cash Analysis (PSCA)

The HUD AE has thirty (30) business days to review the PSCA and make a determination on approval. PSCA approval means that the HUD AE gives the Contractor permission to conduct additional research (as needed) to determine the correct surplus cash payment owed to HUD.

This additional research may require input from other parties. Only after the PSCA is approved will the Contractor contact the Owner and other necessary key parties and will begin Task 5.2

Performance Standards

a) Standard: 90% of PSCAs posted for HUD AE approval are approved by HUD within 30 days of Posting PSCA for HUD approval.

AQL: 80% are PSCAs posted for HUD AE approval are approved by HUD within 30 days of Posting PSCA for HUD approval.

Deliverables

A001 Preliminary SCA

5.2 Finalize Surplus Cash Analysis

Upon receiving HUD approval of the PSCA, the Contractor shall work with key parties to obtain the necessary information to reconcile any deviations from M2M or PPC baseline. The Contrac-tor shall reconcile and resolve property’s surplus cash calculation and confirm proper calculation and payment or recommend adjustment of payment.

Performance Standards

a) Standard: NA

AQL: NA

5.2.1 Reconcile the Final Surplus Cash Analysis (FSCA)

Upon receiving HUD approval of the PSCA, the Contractor shall work with key parties to obtain necessary information to understand AFS line items with deviations from the es-tablished variance thresholds from M2M, DEMO or PPC underwriting.

In order to collect the information to perform its review and reconciliation, the Contractor will need, if necessary, to contact the key parties below to provide notice and/or request information:

• Property Owner

• Property Manager

• Property Staff

• Owners Accountant

• Property Management Company

• Loan Servicer

• HUD AE

• HUD Real Estate Assessment Center (REAC)

• HUD Departmental Enforcement Center (DEC)

• HUD Office of the General Counsel (OGC)

• HUD Note Servicing

• RECAP Rehab Escrow Administrator

• RECAP Offices of Recapitalization

At a minimum, the Contractor must contact the Owner and the Owners designee with requests for information by return receipt mail or email at least twice within 45 days of PSCA approval until all necessary information is received from the Owner or other key parties. The Contractor shall communicate and follow-up with key parties as necessary via email and telephone until necessary information is received from the Owner or other key parties. The Contractor shall document all communications and maintain dated copies of all correspondence in electronic form in accordance to HUD format. The all communication records must be accessible by HUD on the Dashboard within 24 hours of the communication.

Some PSCAs may not require additional information from key parties and/or Owner and the Contractor may be able to complete the FSCA with the information from the AFS and prior SCAs. In these cases, at the direction of the COR’s, the Owner and/or other key parties may not have to be contacted.

Reconciliation and FSCA.

Based on the information collected from key parties, the Contractor reconciles and resolves property’s surplus cash calculation and confirms proper calculation and payment or recom-mends adjustment of payment amount due, completing the FSCA. Once the Contractor has completed the FSCA, it shall post the FSCA for final approval by the HUD AE. (See attachment "TBD" for sample FSCA) -

Performance Standards

a) Standard: NA

AQL: NA

5.2.2 The Contractor shall Post the Finalized Surplus Cash Analysis for HUD Ap-proval via online systems (Dashboard)

The Contractor shall post FSCA for HUD Approval. The Contractor shall acquire FSCA approval from the HUD AE. Once the FSCA is approved by the HUD AE or other HUD authorized per-sonnel, the Contractor shall send a final copy (with cover letter) to the Owner and electronically submit all necessary information to the Notes Servicer. The Owner copy shall not include the documentation of any internal discussions between HUD staff and the Contractor regarding the outcome of the FSCA.

Performance Standards

a) Standard: 100% of FSCAs posted for HUD AE approval within 90 days of PSCA Approval.

AQL: 5% deviation

Deliverables

A002 Final Surplus Cash Analysis (FSCA)

5.3 Support and Service

The Contractor shall provide Help Desk support and track issues raised by the users of the Dashboard. The Help Desk shall provide support for the surplus cash analysis including ad-dressing questions from HUD AEs, the Owner and other key parties regarding individual PSCA/FSCAs and providing technical support for the surplus cash analysis and guidance for on-line systems such as the Dashboard.

The users may submit inquiries via email, and/or telephone. The Help Desk must operate Mon-day through Friday from 10:30 am 5:30 pm EST excluding Federal holidays and executive or-ders. The Help Desk Staff shall answer any questions concerning processing status of any SCA, any questions regarding established HUD policy for SCAs, troubleshoot and help resolve any MIS issues related to the database and its web-interface (Dashboard).

The Help Desk is service available to HUD personnel, the Owners and the Owners designees.

The Contractor shall respond to all forms of inquiry received during business hours within one business day. All inquiries received after hours, on holidays or weekends shall be responded to on the next business day.

In the event that the Help desk receives an inquiry that is outside of HUD policy or wants to veri-fy HUD Policy, the contractor may contact COR’s for clarification and direction.

The Contractor shall maintain a log of the Help Desk inquiries with dates and resolutions and post it to the database. The Contractor shall also document all issues reported through the Help Desk that cannot be resolved within and forward them to the COR’s no later than the next busi-ness day

Performance Standards

a) Standard: The Contractor shall respond to all forms of inquiry received during business hours within one business day. All inquiries received after hours, on holidays or weekends shall be responded to on the next business day.

AQL: 5% deviation

5.3.1 Help Desk

The Contractor shall provide Help Desk support and track issues raised by the users. The Help Desk shall provide support for the Contractor's activities including addressing questions from HUD AE, the Owner and other key parties regarding individual PSCA/FSCAs, and providing technical support and guidance for on-line systems such as the Dashboard.

The users may submit inquiries via email and/or telephone. The Help Desk must operate Mon-day through Friday from 10:30 am 5:30 pm EST excluding Federal holidays and executive or-ders. The Help Desk Staff shall answer any questions concerning processing status of any

SCA, any questions regarding established HUD policy for SCAs, troubleshoot and help resolve any MIS issues related to the database and its web-interface.

The Help Desk is service available to HUD personnel, the Owners and the Owners designees.

The Contractor shall respond to all forms of inquiry received during business hours within one business day. All inquiries received after hours, on holidays or weekends shall be responded to on the next business day. In the event that the Help Desk receives an inquiry that is outside of HUD policy or wants to verify HUD policy, the Contractor may contact the COR’s for clarification and directions

The Contractor shall maintain a log of the Help Desk inquiries with dates and resolutions and post it to the database. The Contractor shall also document all issues reported through the Help Desk that cannot be resolved and forward them to the COR’s no later than the next business day.

Performance Standards

a) Standard: Problem resolution within 24 hours

AQL: 5% deviation

5.3.2 Meeting and Reporting

The Contactor shall participate in monthly meetings to update COR’s on the status of the Con-tractors progress. These meetings may be face-to-face or by teleconference or any other virtual meeting technology. The Contractor shall provide the necessary reports, as directed by the COR’s and in format acceptable by HUD, forty-eight (48) hours prior to the monthly meeting.

The Contractor shall provide regular updates to the COR’s regarding the status of the PSCAs and FSCAs awaiting AE approval and of the Owner responses to requests for information through reporting and via participation in performance review meetings. Reports shall be in form and content acceptable to the COR’s and shall be available via on-line access to the Dashboard interface for the database. Frequency and content of any additional reporting is determined jointly by agreement between the Contractor and COR’s.

The Contractor may be required to provide written input regarding policy discussion topics and/or the possible ramifications of policy decisions for the COR’s as well as participate in con-ference calls, meetings, conferences and/or training to discuss issues affecting either individual properties or the portfolio.

The Contractor shall submit a monthly "Summary Letter along with a specified series of Asset

Management Reports (reports are upon request by COR’s). This letter will be created in porta-ble document format (pdf) form and delivered by email to the COR’s. The "Summary Letter shall highlight the significant events for the current reporting period (month) and will, unless otherwise directed by COR’s include:

Status of PSCAs and FSCAs in progress and completed.

Principal and Interest received during the reporting period.

Number, face amount and estimated value of additional loans added dur-ing the reporting period.

Number, unpaid principal balance, accrued interest, and estimated value of loans as of the end of the reporting period.

Any emerging trends affecting the properties or loans.

Comments on other factors affecting the performance of the properties or loans.

As directed by the COR’s, the Summary Letter may require the attachment of the following As-set Management Reports:

M2M Loan Mortgage Status Report M2M Surplus Cash Report; and M2M Monthly Portfolio Summary Report PPC Loan Mortgage Status Report PPC Surplus Cash Report) PPC Monthly Portfolio Summary Report

The Contractor shall insure that its reporting system within the database has the ability to gen-erate and send reports by any unique data field within the database. The database, as main-tained and implemented by the Contractor, will include the ability to generate graphs in form and content defined by HUD, reflecting key performance data by Loan, Property, Loan Group and total for all Properties. Typically, this letter should be received by HUD no later than the twenti-eth of each month (required within thirty days) to be used as a planning tool for the subsequent month.

Performance Standards

a) Standard: Summary Letter information is complete and delivered on time.

AQL: Summary Letter is 5 days late

Deliverables

A003 Summary Letter

5.3.3 Special Assignments

At the direction of the COR’s, the Contractor may be tasked with special assignments that re-quire coordination with the HUD AE and/ or other key parties on a case-by-case basis. Other special assignments may include providing training for HUD AEs in support of the contract, ad-ditional negotiations with the Owner or management agent, additional forensic accounting anal-ysis and other actions as requested by the COR’s.

Performance Standards

a) Standard: Special assignments will be completed on time and within budget AQL: 5% deviation

5.3.4 Surplus Cash Analysis Re-Reviews

The Owners may dispute the conclusions of a finalized surplus cash analysis (FSCA) raising an issue or issues that HUD may wish to revisit. At the direction of the COR’s, the Contractor shall review the Owner complaint and examine any additional documentation provided in support of its position. If it is determined that the Owners position has merit, the Contractor shall revise the FSCA and the COR’s will determine if additional compensation will be paid to the Contractor on a case by case basis. Some revisions may affect prior or subsequent FSCAs and these will also require revision.

Performance Standards

a) Standard: Identifies and corrects deficiencies

AQL: 5% deviation

Deliverables

A005 Re-Review Analysis

5.4 Maintenance and Updates

5.4.1 Provide System Maintenance and Updates

The Contractor shall maintain the system software, develop and install updates as necessary to allow for effective use and continuous operation. This includes maintaining an effective interface with HUD when HUD systems are upgraded or changed. The Contractor shall maintain the PCPM Database including all data for the properties. COR’s and OAMPO/HUD staff shall have access to the database and records via the Dashboard interface.

Performance Standards

a) Standard: Database and Dashboard are fully operational from 6:00 am to 10:00 pm EST

5.4.2 Provide Updates and Design and Install Improvements to the PCPM Data-base

The PCPM Contractor also makes recommendations to OAMPO regarding the PCPM database and any advisable changes or modifications as well as responds to requests from OAMPO for changes or modifications to the PCPM database.

Performance Standards

a) Standard: Special assignments for Updates, Design, and improvements will be completed on time and within budget

AQL: 5% deviation

5.4.3 Database Maintenance and Data Input

The Post-Closing Portfolio Management (PCPM) Database has been developed to enable effi-cient and consistent review of property performance and adherence to the terms of the M2M restructuring. Because of the unique and specific terms of the M2M restructuring process, the PCPM database was designed to assemble all relevant property data and M2M underwriting terms/data in one comprehensive and specific database. The PCPM database must continue to evolve to incorporate the most current policies and procedures of the OAMPO M2M Post- Closing Portfolio Management process and those of the other PCPM portfolios. The software development is the responsibility of the PCPM Contractor with the input, guidance and expertise of both the OAMPO staff and the PCPM Contractor. As the policies and procedures evolve, change or are enhanced from time to time, the PCPM Contractor will be required to continue the updating of the PCPM database to incorporate these evolving business rules.

The PCPM Database applications enable key PCPM tasks such as:

• Annual Surplus Cash Analysis (SCA) processing including variance analysis, workflow tracking and management

• Production of the official SCA documents

• Creation of the monthly billing data file for use by the OAMPO Loan Servicer.

• Ability to track and provide status of OAMPO requests for special assignments and re-quests for re-reviews as well as conclusions of these requests and any subsequent ap-provals by OAMPO.

SCA status tracking based on oversight responsibility, region, and office Ad-hoc reporting

SCA process tracking and invoicing User access management

Data Input Sources.

The PCPM Database contains data imported from several different sources:

REAC/FASS submissions; REMS data regarding property status including AE comments; M2M baseline data imported from underwriting models and brought forward each fiscal year with the Operating Cost Adjustment Factor (OCAF) applied; and data regarding all loans associated with each property and any payments or accruals that may occur on any M2M loans. This imported data is delivered to the Contractor each month. The PCPM Database may contain software utili-ties that automate some of the steps to import these data files. Other importing steps require an understanding of the database structures and the incoming data.

Below is a summary of the approximate quantities of data records maintained in the PCPM Da-tabase:

1,900 Property records 4,800 Loan records 26,600 FASS/REAC submission records 400,000 Monthly payment records 609,000 HUD Comment records

In addition to raw record counts, this data contains a significant number of fields that are not fixed-length fields (e.g. varchar or memo fields) that are not stored as efficiently as fixed-length data fields. The Contractor will be required to address needs associated with this structure.

Data Export Requirements. The PCPM database provides critical data to the HUD Loan Ser-vicer, which uses the data to invoice property Owners for loan obligations. Data updates are co-ordinated between separate systems to ensure that all parties are using the same monthly data release, and data output formats must meet the input specs for the receiving system. The PCPM Contractor works with OAMPO and staff from the loan servicer to reconcile the data monthly if data anomalies occur.

Database Security. The PCPM Database and related applications must be maintained in a se-cure environment. All user access must be tightly controlled, allowing only properly credentialed users to view and change data. The PCPM Contractor is responsible for user management, in-cluding creating login credentials and assigning system access rights for different user catego-ries.

Database and Application Maintenance. The on-going operation and maintenance of the PCPM database includes: database vendor recommended practices for optimal operation of the database wherever possible, the regular backup of the database and proper storage of the backup media, appropriate security implementation and monitoring, and structural changes and modifications as needed.

The PCPM Contractor is responsible for the development and management of the web applica-tions that provide the front-end interface (Dashboard) for the PCPM database. This includes de-velopment and testing, maintenance, hosting services, and data compatibility between the online applications and the Microsoft Access front-end application.

Currently, the PCPM Database utilizes Microsoft SQL Server 2012 R2 as the database server.

The user interfaces include a Microsoft Access-based client and one web-based applications.

Administration, maintenance and on-going development of the PCPM Database requires expe-rience and proficiency with the following:

• Microsoft SQL Server 2012

• Microsoft Windows Server 2012

• Microsoft.NET Framework (version 4.6.1) – both C# and Visual Basic .NET

• Telerik UI for ASP.NET AJAX

• Telerik Reporting

• Microsoft Entity Framework

• Microsoft Access (2003 and 2013)

• Microsoft Excel

• Visual Studio 2010

In addition to raw record counts, this data contains a significant number of fields that are not fixed-length fields (e.g. varchar or memo fields) that are not stored as efficiently as fixed-length data fields. The Contractor will be required to address needs associated with this structure.

Performance Standards

a) Standard: Database and Dashboard are fully operational from 6:00 am to 10:00 pm EST

AQL: 100%

5.4.4 Records Access

The Contractor shall maintain the database and project records with respect to the Properties.

OAMPO/HUD shall have access to the database and records via the Dashboard interface.

A. Data Receipt and Import - In addition to administering and maintaining the database, the

Contractor shall provide monthly import of data per the requirements determined by the COR’s.

Currently this data includes the following:

1. REAC/FASS Submission Data - Monthly, the Contractor will receive data that represents the Owners AFS submission. This data is produced by HUD and delivered to the Contractor in accordance with mutually agreed upon data file specifications. The Contractor shall demon-strate cooperation in reaching consensus on the method of delivery of the data file. If HUD uni-laterally changes the data file specifications, the Contractor shall promptly notify the COR.s of the necessary changes or modifications to the database and request approval. This data must be imported into the database for use in performing the Contractors analysis of property perfor-mance and correct computation of the PCPM portfolio note payments. Upon receipt and import of each submission record, the corresponding baseline data (see item 4 below) record elements must be increased per the appropriate Operating Cost Adjustment Factor (OCAF) and a subse-quent matching record created in the database.

2. OAMPO Data Updates - Monthly, the Contractor shall receive and import data compiled by OAMPO that represents additional information that is required to perform the Contractors analy-sis of property performance and correct computation of the PCPM portfolio note payments. This data includes the HUD AEs comments entered into internal HUD data systems, PASS score data and other additional elements.

3. Loan Servicer Data - Monthly, on or around the 1st day of the month, the Contractor shall receive data that represents the Loan Servicers receipt of payments on PCPM portfolio notes.

4. Baseline Data - Upon assignment of new properties to be added to the portfolio, data is pro-duced by the COR’S and delivered to the Contractor that represents basic property identifiers (REMS ID number, relevant FHA numbers, etc.), responsible property agents (HUD AEs, Own-ership representatives, etc.) and other general property information. Included in this initial data set is each property’s underwriting model. This data is imported into the database and elements of it provide the "baseline information used in each annual property analysis.

5. Data Export for Loan Servicer - On a monthly basis, the Contractor shall produce and transmit to the Loan Servicer a data file, per specifications agreed to by the Contractor and

Loan Servicer and approved by HUD, that represents each note in the portfolio and includes the most recent FASS payment amount (labeled as the AFS Amount) and any FSCA amounts (la-beled as the SCA Amount). The Contractor shall demonstrate cooperation in reaching a con-sensus on the method of delivery of the data file.