3.12 QA RESPONSES - GROUP 1.pdf

3.12 FIELD SERVICE MANAGEMENT

SOLICITATION 86544B19R00002

QUESTIONS AND ANSWERS

GROUP 1

SOLICITATION SECTION TITLE

Part I - The Schedule

Section A: Solicitation / contract form.

# Section Title Page # Question

1 A7 Issued By: 1 Please confirm where we are to submit.

(See Amendment 1 on where to submit.)

Section B: Supplies of services and prices/costs.

# Section Title Page # Question

2 B.2 Initial Services 12 Please define refuse.

Response: Refuse includes but is not limited to garbage, junk, litter, rubbish.

3 B.2 Initial Services

12 Will paint cans and tires and any other hazardous materials be part of the first 10 cu yards at contractors’ expense at Clin 0004? Yes

4 B.2 Routine (Ongoing) Property

Management (PM) Fees (Clin

0005)

12 Clearer definition, if we complete two routines, are we compensated for both routine inspections.

Response: This monthly fee encompasses routine inspections. The Contractor shall inspect the property every two weeks, where intervals between inspections shall be at least 10 days and not more than 14 days.

5 B.2 Custodial

Properties (CS) (Ongoing) Property

Management (PM Fees)

13 What is the Average tenure of these HECM properties?

Contractor is expected to know market conditions for the areas they submit proposals. Historical volumes are no indication of future volumes. HUD has provided ending monthly inventory data and monthly acquisitions for custodial properties. See guaranteed minimums.

6 B.2 Missed/Late Routine

Inspections

13 Clearer definition of “HUD is limiting the total amount of liquidated damages per occurrence at $500.00” is this occurrence referenced to one month capped at $500.00 or the term the property is in inventory? Each Inspection

Section C: Description/specifications/statement of work.

# Section Title Page

Question

7 1.1 Introduction 17 What items are entailed in cosmetic enhancements/ repairs? Response: Refer to 5.2.7

8 1.2 Asset Assignments and Performance

19 How often are qualitative inspections and reviews performed? Response: Monthly

9 1.3 Prohibition on Pre-Conveyance

Preservation and Protection

Work

21 In what format or template does the FSM need to provide their annual certifications for proof of not performing pre-conveyance work of FHA insured properties? The format will be determined by the Contracting Officer at the time of award.

10 1.3 Cost Estimating Tool

21 Which cost estimating tool will HUD provide? What are all of the approved HUD cost estimation tools? Blue Book, ExactPRM. Repair Base Blue Book is the current tool and is provided at no-cost to the FSM.

11 1.3 Cost Estimating Tool

21 Does HUD qualify mark-up on the cost estimating bid values and if so, what is HUD’s acceptable range? The question is unclear as stated but assuming qualify means allow then No.

12 1.3 Systems Security Administrator

22 When in the calendar year does HUD require the SSA to perform annual security self-assessments and in what format does HUD require the assessments to be performed? Information will be provided after contract award.

13 1.13.1 Pre-Ramp Up Transition Activities

24 Which Contractor officials or employees must attend the HUD provided training on ramp-up?

HUD will provide training for the Contractor to include key personnel and staff as approved by HUD.

14 1.13.1 Start Up 24 Which Contractor officials or employees must attend the post award conference?

Response: The Contractor and key personnel shall attend the post award conference.

15 1.13.1 Quality Control, Contingency, and Property Management

Plans

25 Please clarify the review timeline of the COR and resubmittal of the plan to the COR. The timelines expressed are different for these items on pages 25, 26 and

68. See Amendment 2 clarifying the timeframes.

16 1.13.2 Ramp Up Transition Tasks

27 On the 91st Day, is this where new acquisitions will be received?

No, 61st Day - On the sixty-first (61st) calendar day after the effective date of the contract, the Contractor shall begin performance of property and preservation services related to new assignments.

91st Day - On the ninety-first (91st) calendar day after the effective date of the contract, the Contractor shall begin performance of property and preservation services related to assigned Held Off Market Properties and assigned unsold inventory. (See Amendment 2 and the conformed solicitation with the new language)

17 4.4 Contractor Responsibilities, Facilities, Staffing and Equipment

41 Please clarify the number of days to provide the COR with written information. The timeline for this item is different on page 40. See Amendment 2 clarifying the timeframes.

18 5.2.1.1 Inspections 49 How many pre-conveyance inspections were ordered by contract area per year for the years 2015, 2016, 2017, 2018 and 2019? Information is not available.

19 5.2.1.1 Inspections 49 Will the FSM make the final determination of the pre-conveyance inspection that failed to meet HUD’s property condition standard? If not, what is the review process? The FSM performs a pre-conveyance inspection to notify the COR of any non-system items that require repairs prior to conveyance then the COR notifies the mortgagee. Once the deficiencies are corrected the mortgagee can convey the property with a significant reduction in the probability of reconveyance for non-system repairs.

20 5.2.1.1.2 Overallowable Inspection

50 Where will the Contractor submit Overallowable inspection results? The Contractor shall perform an Overallowable Inspection and submit the results to the MCM via P260.

21 5.2.1.1.2 Overallowable Inspection

50 Will HUD allow cost estimation tools other than Blue Book, such as Exact PRM? No

22 5.2.1.1.3 Surchargeable Damage

Inspection

50 How many surchargeable inspection requests were ordered by contract area per year of the years 2015, 2016, 2017, 2018 and 2019? Info. is not available

23 5.2.1.1.3 Surchargeable Damage

Inspection

50 Will the FSM have to provide a line-by-line estimate to exactly match the scope of the Mortgagee’s request or the Insurance Adjuster’s report? No., but the FSM’s estimate should cover the same overall scope of work

24 5.2.1.1.3 Surchargeable Damage

Inspection

50 Will the FSM have to procure third party bids to validate the Mortgagee’s request when the Cost Estimation tool does not account for the nature and scope of the Surchargeable Damages? Examples include structural demolition, infestations, and special conditions due to methamphetamine contamination. No.

Third party bids are not required.

25 5.2.1.1.3 Surchargeable Damage

Inspection

50 Will the FSM need to cite, and report observed building code violations when conducting a surchargeable or bid review inspection even if the building violation has not been cited by the municipality? Examples may include illegally converted units, incorrectly sized plumbing lines or load bearing structures not to code. Yes

26 5.2.1.1.3 Surchargeable Damage

Inspection

50 Will the FSM have to submit bids to repair observed code violations even when these violations have not yet been cited by the municipality? Examples may include illegally converted units, incorrectly sized plumbing lines or load bearing structures not to code. No

27 5.2.1.1.3 Surchargeable Damage

Inspection

50 Will observed violations need to be listed on the PCR or reported to the AM in order to be included in their real estate disclosure? Examples may include illegally converted units, incorrectly sized plumbing lines or load bearing structures not to code. Yes

28 5.2.1.1.3 Surchargeable Damage

Inspection

50 Should bids and approvals follow the HUD reimbursement fee schedule and bidding guidelines as outlined in 4000.1. Example, debris should be bid based on cubic yards with volume measurements versus in man hours. Yes follow 4000.1 guidelines.

29 5.2.1.1.3 Surchargeable Damage

Inspection

50 Does the FSM have to include before, during and after photos and/or measurements for each mortgagee non-compliance item that is being charged back to the mortgagee for reimbursement to HUD? Yes

30 5.2.1.1.5 Occupied Conveyance Inspection

50 Where will the Contractor submit Overallowable inspection results? P260

31 5.2.1.1.5 Occupied Conveyance Inspection, 51 What is considered a reasonable time for HUD to provide further instruction back? Typically, a COR is expected to respond within 48 hours, or two business days (i.e. not including weekends or holidays), however, certain circumstances or issues may require greater time for response.

32 5.2.1.1.5 Properties Conveyed Occupied without Approval

51 The FSM is to determine if the occupant is adverse or non-adverse. Is this temporality suspended due to COVID and proper transmission risk management protocols? Can HUD define non-adverse in this scenario when the OCC Conveyance was not approved? Would not all occupants be deemed as adverse?

Response: HUD’s REO occupied conveyance standards have not changed or suspended due to COVID-19. The eviction and foreclosure moratoriums do not apply to entities who do not have a bona fide right to occupy an REO property. FSMs should refer to state and local statutes.

33 5.2.2.1 HUD Property Inspection

51 What are considered “any other items HUD requires” for the property inspection? Can HUD provide some examples?

Response: The HUD Property Inspection Report (HPIR) is HUD’s property inspection report. The contractor should provide evidential matter like photographs to support its findings.

34 5.2.2.3 Initial Clean-Out Services, Post

Emergency Signage

53 What additional information does HUD require the Contractor to have on their Post Emergency Signage?

FSM Emergency contact number and name, and any other info. requested by the COR . While no additional information is required by HUD at this time, if that were to change the Contractor would be notified.

35 5.2.2.3 Disposal of all Debris, Refuse, and Personal Property

53 Can the FSM obtain pass through approval for the full cost to remove all debris that was dumped on the property after the initial secure?

No, debris removal during bi-weekly inspections is part of the monthly management fee.

36 5.2.2.3 Repair Broken Windows and

Doors

54 Does the repair of missing or broken doors include interior doors that do not facilitate access into the property? No

37 5.2.2.3 Initial Clean-out Services, Ensure Proper Access

54 Can you provide the “approved system” to change key codes every six months to thwart vandalism?

Instructions will be provided upon contract award.

38 5.2.2.3 Initial Clean-out Services, Ensure Proper Access

54 Will the FSM need to provide before, during and after pictures including the placement of new keys into the lock box with each six-month re-key? No, case documentation including photos should be in P260.

39 5.2.2.3 Initial Clean-out Services, Prevent Further Moisture Damage

54 If the Contractor finds leaks at properties, will the maintenance or repairs provided be at a cost-passthrough? No

40 5.2.2.3 Initial Clean-out Services, Prevent Further Moisture Damage

54 Does the abatement of moisture at FSM cost include normal moisture due to naturally occurring hydrostatic pressure common in states with high water tables with unfinished basements (not designed as a living space)?

Is an operational sump pump sufficient or will the FSM be required to waterproof the basement, which has an average cost range between $2,500-4,000. Sump pump is usually sufficient. FSM should consult with the COR prior to incurring any costs, 41 5.2.2.3 Initial Clean-out Services, Prevent Further

54 Please define “active” leak. Active leak is a leak where water/moisture penetration has not been stopped.

Moisture Damage

42 5.2.2.3 Initial Clean-out Services, Prevent Further Moisture Damage

54 Does minimal moisture (non-pooling) typically from weeping from concreate basement walls and floors with isolated or minimal occurrence constitute or pose an imminent health or safety hazard? It may. FSM should raise the incident case by case to the COR.

43 5.2.2.3 Initial Clean Out Services, Notifications

54 If a vacant property has not yet been registered with the local police and/or local jurisdiction, will the Mortgagee be responsible for all fines that are incorporated? No

44 5.2.2.3 Initial Clean Out Services, Notifications

54 Will the FSM be required to register vacant properties under the applicable local municipalities' blight ordinances? No. The FSM is not required to register the property post conveyance.

45 5.2.2.3 Initial Clean Out Services, Notifications

54 Will the FSM have to advance the deposits and bonds required under the vacant property register ordinances or will HUD issue the deposits and bonds.

Response:In many jurisdictions these bonds and deposits can reach $10,000. No. HUD has determined that the Federal Supremacy Clause applies to REO properties and as such HUD REO properties are not subject to local Vacant Property Registers. Contractors should contact their CORs if issues arise. No fees or bonds or deposits are to be paid. .

46 5.2.2.3 Initial Clean Out Services, Notifications

54 Will the FSM be required to recover any unused vacant property registration deposits and bonds still remaining with the municipality once the AM has sold the property?

Response: No. HUD has determined that the Federal Supremacy Clause applies to REO properties and as such HUD REO properties are not subject to local Vacant Property Registers. Contractors should contact their CORs if issues arise. No fees or bonds or deposits are to be paid.

47 5.2.3.2 Routine Inspections

57 If a routine inspection is completed on the 14th day since the previous routine inspection, can the results be uploaded and submitted on the 15th day? The language in this section leaves this up to interpretation.

Response: No. The routine inspection reports must be uploaded within the 10th and 14th day interval.

48 5.2.4 Environmental Compliance, Lead-Based

Paint

59 How many LBP work orders were generated by contract area in each year from the years 2015, 2016, 2017, 208 and 2019. Information is not readily available.

49 5.2.6 Custodial Properties, Rents, Fees, Dues and

Assessments

62 Is the Contractor responsible for notifying HUD of ground rents, fees, condominium, or homeowner’s association (HOA) dues or special assessments?

No

50 5.2.6 Custodial Properties, Rents, Fees, Dues and

Assessments

62 What caused the portfolio reduction of custodial properties across each contract area between the months of August of 2019 through October 2019? Did HUD complete a loan sale for these assets? HUD held a note sale in July 2019.

51 5.2.6 Custodial Properties, Rents, Fees, Dues and

Assessments

62 Did HUD complete a loan sale for the custodial assets in 2019? Yes.

Does HUD plan loan sales for custodial assets in the future? Yes. Currently there are no scheduled Note Sales of Secretary-Held HECM mortgages. However, this strategy will be utilized if deemed in the best interest of the government in the future. es. .

52 5.2.6 Custodial Properties, Rents, Fees, Dues and

Assessments

62 What is the average duration of hold time in months for custodial properties? Information will not be provided.

53 5.2.7 Cosmetic Enhancements and/or Repairs

63 What items are included in cosmetic enhancements and/or repairs? Items that improve marketability

54 5.2.2.3; Initial Clean Out 69 Will the FSM be provided supporting documentation of

5.2.2.3.1 Services &

Health and the noted non-compliance and be given an opportunity to provide a response or rebuttal? Ready to Show

Safety Hazards, chart

Condition and Health & Safety Hazards can be subjective and subject to interpretation or erroneously notated. FSM can appeal to the COR and ask for supporting docs.

R

Section H: Special contract requirements.

# Section Title Page

Question

55 H6 Option to Increase /Decrease the Geographic Service Area

90 If the FSM does not submit pricing for other geographic areas, will HUD omit them from consideration to an increase in geographic service area or will they be able to be considered under a contract modification? The Government intends to first consider existing contractors within the HOC jurisdiction to service any areas within the same HOC jurisdiction. However, the Government shall not be limited to the HOC jurisdiction and reserves the right to use Contractors in other HOC jurisdictions, if necessary.

56 H12 Office

Location

95 My office is in 5P, if awarded 1P/4P, 3P would we comply? Yes. Contractors are permitted to manage multiple areas within the same HOC jurisdiction from a single office located within the HOC jurisdiction, provided they meet all the other terms and conditions of this contract.

57 H12 Office Location

95 Will HUD allow the FSM to operate multiple office locations within the HOC jurisdiction, provided they meet all other terms of the contract? Yes.

58 H14 Service Contract Labor Standards

97 Several states have passed new regulations and others have pending regulations reclassifying subcontractors as employees. The structure and form of this Solicitation and PWS substantially increases the risk of reclassification for the successful bidder. Will HUD accept a price modification when a state reclassifies and requires the FSM to adhere to a much higher labor cost?

This contract is subject to the rules and regulations of the Service Contract Labor Standards (formerly known as the Service Contract Act of 1965). The current Wage Determinations applicable to this contract are those set forth by the Department of Labor for the geographic areas covered by this contract. The Wage Determinations will be based on where the actual services will be performed.

(See FAR clause 52.222-41, Service Contract Act of 1965, in Section I). The Agency anticipates the following class of service employees (per H.14 of the solicitation) to be utilized by the Contractor and any subcontractors in performing the contract. The Government reserves the right to revise the labor categories as necessary due to changes in the Performance Work Statement. At the time of award, the appropriate wage determinations will be incorporated.

59 H14 Service Contract Labor Standards

97 In comparing the current Service Areas with the new proposed service areas there was consolidation along current incumbent service areas. For example, 1P and 4P were combined which were both previously serviced by BLM along with 4D and 5D which were serviced by Innotion. What was HUD logic and rationale to combine areas unique to incumbents’ current coverage area? Does HUD have concerns that this creates a substantial advantage for the incumbent to be re-awarded? The new proposed areas are aligned solely to HUD’s interest, with no consideration for an incumbent contractor.

60 H14 Service Contract Labor Standards - Anticipated Service Employees

98 Which wage and hour schedule applies. Service Contract and Davis Bacon Wage compliance have both been cited in this solicitation and each classification has a different wage and fringe fee schedule? Is it correct to assume that in house staff must follow the Service Contract Rate while field staff has to follow the Davis Bacon rate? The contract involves both the Service Contract Labor

Standards and Davis Bacon wage requirements. The

FSM is to follow the rules and regulations of each clause.

Page # Question

Section Title

61 H14 Service Contract Labor Standards - Anticipated Service Employees

98 Do subcontractor and field vendors have to comply with

Service Contract and/or Davis Bacon Wage requirements.

If yes, will the FSM need to maintain the weekly payroll log and records as required under each Act? The FSM is required to be compliance with FAR clause 52.222-41, Service Contract Labor Standards.

62 H14 Service Contract Labor Standards - Anticipated Service Employees

98 Can the FSM submit a Contract Modification if or when the Federal Government increases the minimum federal wage on government contracts to $15 as this rate currently exceeds the stated rate in the Service Contract act?

The FSM does not submit a contract modification.

Contract modifications are issued by the Contracting

Officer. Adjustment of Compensation. If the term of this contract is more than 1 year, the minimum monetary wages and fringe benefits required to be paid or furnished thereunder to service employees under this contract shall be subject to adjustment after 1 year and not less often than once every 2 years, under wage determinations issued by the Wage and Hour Division.

63 H18 Questio n # 20

Cyber Security and Privacy Requirements

103 Does question #20, come into place after the startup/ramp up phase? Question is not clear as stated.

Section I: Contract Clauses https://www.law.cornell.edu/definitions/index.php?width=840&height=800&iframe=true&def_id=ddde7e791710a54f05d275f9db694388&term_occur=999&term_src=Title:48:Chapter:1:Subchapter:H:Part:52:Subpart:52.2:52.222-41

Section L: Instructions, conditions, and notices to offerors or respondents.

# Section Title Page # Question

64 FAR

52.215

Clause Incorporated by Reference

V (A)

Is this solicitation deliverable via electronic commerce? The question is unclear as stated; however the solicitation is available on www.beta.sam.gov

65 L.6 Instructions to Offerors

134 Sub-paragraph three states that Offerors must email their proposals to Andress.M.Williams@hud.gov, however at the end of L.6 in number nine (9), it states Email proposals will not be accepted under this solicitation. This is a contradiction? Which is accurate and which should be struck from the instructions? Proposals must be emailed to sourcessought@hud.gov. (See Amendment 1 for changes)

66 L.6 Instructions to Offerors

134 Please confirm the email address to deliver the proposal as it differs from the solicitation page. The email address to submit proposals is: sourcessought@hud.gov (see Amendment 1)

67 L.6 Instructions to Offerors

134 *Note – Please confirm that both redacted and unredacted.

Both a redacted and unredacted proposal is required.

68 L.8 General Instructions, Volume I Technical Proposal – B.

139 This section states HUD is focused on achieving socioeconomic goals for small business participation.

Given HUD’s interest in small business, will small businesses be prioritized in consideration for geographical contract areas as a Prime? No. There is no prioritization for small businesses. The source selection decision will be based upon the offeror representing the overall best value to the

Government. The evaluation will be in accordance with

Section M of the solicitation.

Socioeconomic Participation.

http://www.beta.sam.gov/ mailto:Andress.M.Williams@hud.gov mailto:sourcessought@hud.gov

69 L.8 Volume 1- Technical Proposal – 1B

139 Our NACIS code determination small business, are we required to submit Socioeconomic Participation Plan? Yes.

70 L.8 General Instructions – Volume II Business Proposal – B.

Price

141 Volume II Business Proposal – B. Price Paragraph one states that if Offerors propose annual cost of living increases, the offeror must support the proposed increases with historical and relevant market index information.

Does this mean that HUD will accept proposed increases and will quantify justified values as a measure of consideration for LPTA. For example, if offerors do not perform due diligence, and provide lower prices without the inclusion of market research on cost of living, will their offers be considered unacceptable? Best Value is being determined by Past Performance Trade-Off and not Lowest Price Technically Acceptable (LPTA). The contractor’s prices are a business decision.

71 L.8 Volume II, Business Proposal, A- Past Performance, 142 How were the relevant past performance volume stratification thresholds separating “Very Relevant”, “Relevant”, “Somewhat Relevant” and “Not Relevant” determined? The Government is not required to release this information.

72 L.8 Volume II, Business Proposal, A- Past Performance, Table

142 Are the volume thresholds a representation of the minimum and maximum number of annual assignments for each contract area indicated? The question is not entirely clear as stated. However, the minimum guarantee is an amount the Government is fairly certain to order and it’s based on a dollar amount.

73 L.8 Volume II, Business Proposal, A- Past Performance, Table

142 What were the total number of inventory assignments for the current Asset Manager represented per year and per contract area for each of the following years 2015, 2016, 2017, 2018, 2019? The activity information provided has been significantly influenced by COVID-19 19 and the 12+ months of foreclosure moratorium. Only the incumbents would have visibility into a more realistic and truer pattern of activity prior to COVID-19. This requirement is for FSM services, not Asset Manager services, and the solicitation provides estimates to assist offerors submitting requirement.

74 L.8 Volume II, Business Proposal, A- Past Performance, Table

142 What is the projected new inventory assignments per contract and per year for 2020, 2021, 2022, 2023 and 2024?

The inventory activity provide only tracks standing inventory and provides little insight into portfolio velocity and new assignment volume. CWCOT has and will continue to heavily influence inventory downward. This information is needed to provide a more accurate cost proposal in the option years. The estimates for new inventory and carry-over inventory during the base and the out years have been provided on Attachment 10.

Contractors are expected to know the market conditions for the areas they submit proposals for. HUD has no way to determine investor demand for single family properties at the foreclosure sale (CWCOT) or Note Sales.

75 L.8 Volume II, Business Proposal, A- Past

142 In this paragraph, magnitude is defined as peak monthly inventory (which includes new inventory assigned during that month as well as inventory carried over from previous months) for which the contractor performs.

Performance A, 1.

the full scope of property management services.” Is it permissible to include a past performance reference where the scope of work is directly relevant to a portion of the FSM

3.12 scope of services, and another reference where the scope of work is directly relevant to the remaining portions of the FSM 3.12 scope of services so that collectively, the past performance references demonstrate the full scope of the FSM 3.12 scope of services? References shall be submitted in accordance with Section L. The references submitted by the offeror is a business decision.

76 L.8 Volume II, Business Proposal, A- Past Performance, Table

142 What percentage of HUD foreclosures were liquidated through the CWCOT program for 2015, 2016, 2017, 2018 and 2019 represented as a percentage of all HUD 27011 Part B-D foreclosure claims paid? Information will not be provided

77 L.8 Volume II, Business Proposal, A- Past Performance, Table

142 Does HUD anticipate additional modifications to the CWCOT program that are designed to further increase CWCOT participation? Not known at this time

78 L.8 Volume II, Business Proposal, A- Past Performance, Table

142 In the table reflecting the monthly inventory that will be used to evaluate the magnitude portion of relevancy, the numbers provided do not appear to be based on actual/current HUD inventories. What is the basis for these numbers? It is based on information the Government deems important to guarantee successful performance.