3.12 Q&A RESPONSES - GROUP 2.pdf

3.12 FIELD SERVICE MANAGEMENT

SOLICITATION 86544B19R00002

QUESTIONS AND ANSWERS

GROUP 2

READY TO SHOW CONDITION, P. 33

Question 1: Please explain what a “removable carpet stain” is, so that we can budget properly. Does HUD mean “removable” by way of some type of carpet spray, or by way of a carpet cleaning type machine? Because “full cleaning” of carpeting is mentioned as a pass-through matter, it seems that “removable” refers to that which can be scrubbed by hand.

Response: Section C of the PWS states “Removable carpet stains shall be cleaned with photos uploaded in P260 documenting that this has occurred. Soiled or damaged carpets, or carpets with trip hazards, odors, or biohazards (feces, urine, etc.) that constitute a health & safety hazard must be removed by the contractor at their own expense at the completion of initial services. Cosmetic enhancements recommended by the Asset Manager to improve marketability such as carpet removal or full cleaning will be a pass-through expense once it has been approved by the COR.”

Question 2: What if the carpet stains are largely improved but not entirely removed, and the carpet is likewise not soiled or damaged? Will HUD allow the contractor to leave it as-is and only remove as a pass-through cosmetic enhancement if the Asset Manager requests and the COR approves?

Response: The contractor should consult with the COR, if they have a question whether to remove carpet or leave it in-place.

ENSURE PROPER ACCESS, P. 54

Question 1: Will HUD dictate which key codes are to be used or are allowed?

Response: HUD will not dictate which key codes are to be used. However, the COR will review and approve the key codes proposed by the FSM to ensure that the key codes are not being recycled.

Question 2: Are all homes to be rekeyed at the same time, or is the 6-month calculation based on the date the property is assigned to the contractor?

Response: All HV and Custodial properties that have been in inventory for 180 days (from date of assignment) on June 1st and December 1st must be rekeyed.

Question 3: Will the rekeying apply to custodial and other non-marketable properties (including tenant-occupied)?

Response: Unless prohibited by state law, rekey applies to unoccupied HV and Custodial properties.

Question 4: Will the semiannual rekeying be a pass-through expense?

Response: Cost associated with rekeying eligible properties will be reimbursed as a pass-thru cost. Prior to rekeying the properties that meet the eligibility criteria on June 1 and December 1, the contractor should obtain a bulk quote and submit to the COR for approval prior to rekeying the properties.

Question 5: Will there be any restrictions regarding key codes, such a popular ones, ones the contractor has used previously, and ones the contractor uses in other FSM contracts?

Response: The type of locks, materials, and labor will be agreed upon as part of the COR approval process for rekeying properties.

ATTACHMENT 10 – PRICING SHEETS

Question 1: What is the basis for HUD anticipating such a high amount of pre-conveyance inspections?

Response: HUD is including this option in its pricing model because HUD may elect to make pre-conveyance inspection mandatory in the future. the expects offerors to bid a reasonable and customary price for services.

The estimated quantities match those of anticipated new acquisitions (i.e., CLINs 2 and 4), but we have heard that historically HUD has struggled to get mortgagees to order such inspections, resulting in very few being performed. Has the pre-conveyance inspection program changed?

Response: Ideally, HUD would like to perform as many pre-conveyance inspections as possible.

However, pre-conveyance inspections are usually at the option of the mortgagee. See guaranteed minimums.

Question 2: Why are acquisition volumes (as reflected by CLINs 2 and 4) for areas 3P and 5P anticipated to be so dramatically higher than the rest of the country? For example, option year two for area 3P shows 6791 new acquisitions while the same year for are 6A (a larger market per historical data provided by HUD for 3.12 and 3.10 in the past) shows just 1515 new acquisitions, while the same year for area 2A (HUD’s largest market in historical data provided by HUD for 3.12 and 3.10 in the past) shows just 3329. What factors are driving the calculations for 3P and 5P?

Response: Estimated acquisitions are based on when HUD estimated normal operations and foreclosure processing of a backlog will resume, due to COVID, the CARES Act, and related moratoriums and forbearances. The differences in volumes are related to the different reasonable due diligence timeframes for processing foreclosures in different jurisdictions and areas.

Question 3: If areas 3P and 5P will see such a significant rise in acquisitions (as reflected by CLINs 2 and 4), why are volumes in Ohio and Michigan, neighboring states, anticipated to be so low comparatively?

What factors are anticipated to be different?

Response: Estimated acquisitions are based on when HUD estimates normal operations and foreclosure processing of a backlog will resume, due to COVID, the CARES Act, and related moratoriums and forbearances.

Question 4: Why does HUD predict a surge in acquisitions (as reflected by CLINS 2 and 4) in both option years one and two in some areas (i.e., decline in option three), such as areas 3P and 3A, while predicting an uptick for only option year one in some others (i.e., decline in option two), such as areas 1P and 4A?

Response: Estimated acquisitions are based on when HUD estimated normal operations and foreclosure processing of a backlog will resume, due to COVID, the CARES Act, and related moratoriums and forbearances. The time frames are different for different areas due to the differing time it can take to complete foreclosure processes in different jurisdictions.

Question 5: Why does HUD anticipate a significant rise in acquisitions in FL for options years two and following, but far less for both the base year and option year one?

Response: Estimated acquisitions are based on when HUD estimated normal operations and foreclosure processing of a backlog will resume, due to COVID, the CARES Act, and related moratoriums and forbearances.

Question 6: Section B mentions a new CLIN, 0008 for Transition-In, but the pricing XLXS file does not provide a row for this CLIN. Are we not to bid upon this CLIN? And if we are to propose for CLIN 8, please clarify what is meant by “lot” for unit.

Response: The pricing sheet will be revised to include a row for CLIN 0008 Pre-Ramp-Up Transition Activities. The offeror will submit the price for the activities in the pre-ramp-up transition activities as one lump sum.

ATTACHMENT 12 – HISTORICAL INVENTORY DATA

Question 1: Because we are proposing rates for CLINs that are tied to new acquisitions (e.g., CLIN 2), it would really help us if HUD would provide historical counts of new acquisitions per month, rather than only the counts of inventory held. Can this be provided?

Response: See HV and CS Acquisitions (April 2019 – December 2020) at the end of the document.

Likewise, can HUD provide data regarding how long properties remained in inventory, and a count of properties sold per month as well?

Response: Offerors are expected to know the market conditions in the areas they propose. However, data pertaining to monthly ending inventory and monthly acquisitions can be utilized to ascertain how long properties stay in inventory. Historical volumes are not indication of future volumes.

Section C PWS, Part I General Information –1.3 Constraints - Cost Estimating Tool, Page 21

Can HUD provide information on what cost estimating tool is currently being used, and is there is any cost to the contractor for its use?

Response: Repair base Blue Book is the current estimating tool, and there is no cost for the contractor to use it.

Section B: Supplies of services and prices/costs.

1. B.2, Pricing, Pgs. 4-12: Will there be a separate fee paid for custodial properties that leave inventory as part of bulk custodial note sales to help offset excessive costs on properties not moving to a HUD-Vacant status?

Response: No, contractors receive a prorated fee for properties that do not remain in inventory for the entire month.

2. B.2, Initial Services, Pg. 12: Are existing fallen trees, large branches, and other foliage not caused by the Contractor upon acquisition of a property counted towards the verifiable debris amount?

Response: No

3. B.2, Initial Services, Pg. 12: Will any costs for grass cutting/tree/bush trimming and foliage removal become a pass-through expense if a Custodial property is assigned to the Contractor in an extremely overgrown state?

Response: No, the contractor is required to maintain the exterior of the HECM property while in custodial status.

Lawn should not be in overgrown state at conversion to HUD Vacant. The FSM incurs the cost for overgrown lawns as part of its fix fee when a custodial property is assigned. The FSM for custodial property is the same entity that is assigned a custodial property that converts to an REO property. Therefore, there should not be an overgrown lawn.

4. B.2, Custodial Properties (CS) (On-going) Property Management (PM Fees), Pg. 13: Given that

Initial Services are only completed once at a property, why are they included in a monthly CLIN for Custodial properties?

Response: The services performed for a custodial property when assigned are limited as compared to a HUD vacant REO property. In certain states, the FSM is not allowed to perform most services because of trespassing laws. HUD has made a determination not to pay a separate fee for initial services for custodial properties. The Contractor will be paid a CLIN 0006 fee on all CS fee status types. This 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. Initial Services are performed on CS properties, when and if, the property converts to HUD Vacant.

5. B.2, Missed/Late Routine Inspections, Pg. 13: If the Contractor attains a satisfactory scorecard metric of 95% or higher in a given month, would any liquidated damages be assessed to the respective categories of Not Ready to Show or Missed/Late Routine Inspections?

Response: Satisfactory performance of 95% on the scorecard does not alleviate liquidated damages being assessed. The Contractor may still be assessed liquidated damages if an individual inspection is late or missing. not timely placed in Ready to Show condition.

C: Description/specifications/statement of work.

1. 1.2, Asset Assignments and Performance, Pg. 18: Does HUD plan for all transition properties to have the same FSM assign date upon transfer of said properties to the 3.12 awarded FSM contractor? It would be ideal to filter the properties into the awarded contractor’s inventory throughout the first 14 days to ensure all routines are not due on the same 10-14 day threshold.

Response: At HUD’s discretion, HUD will stagger transition properties. New acquisitions will begin no sooner than day 61 of contract award. HUD will transition properties in accordance with the transition schedule (Section 1.13.2 ) in the PWS/contract.

2. 1.2, Asset Assignments and Performance, Pg. 19: If there is delay in providing Key Personnel with C numbers, will HUD extend the period between the contract period of performance start date and the beginning of the scorecard assessment period and liquidated damages (121st calendar day)?

Response: If there is a delay caused by the Government consideration will be given to extending the timeframe for issuance of scorecards.

3. 1.2, Asset Assignments and Performance, Pg. 19: If there is a sharp rise in property assignments following the end of the global pandemic and foreclosure moratorium, will HUD institute a period of time where standard scorecard assessments and liquidated damages are not utilized so as to allow for the Contractor to maintain best-value services for all HUD properties?

Response: No. The agency does expect a backlog and rise in property assignments, and this is incorporated in our volume estimates to the best of our ability. This is an IDIQ contract, with a max and min, and the contractor should know market conditions and be prepared to perform in accordance with the terms of the contract.

4. 1.8, After Business Hours, Pg. 23: Does HUD have an after hours number to call if the FSM has an emergency situation that may occur?

Response: No

5. 1.13.1, Pre-Ramp-Up Transition Activities, Pg. 25: Will HUD ensure that, at a minimum, all Key

Personnel will have working C numbers before any properties are assigned or transitioned to the

Contractor?

Response: No

6. 1.13.2, Ramp Up Transition Tasks, Pg. 26: Do the Ramp Up Transition Tasks include the price at all transition quantity line items, CLIN 0005, CLIN 0006, and CLIN 0007?

Response: Question is not clear, and therefore, we are not able to answer.

7. 1.13.2, Ramp Up Transition Tasks, Pg. 26: When will the awarded contractor be made aware of the current keycodes that are being utilized in any awarded contract area?

Response: Contractor will be advised, soon after contract award.

8. 4.4, Held Off Market (HOM) Codes, Pg. 45: What code will be used for Custodial to HUD-Vacant

Properties that have conditions that warrant more than 7 days to bring into Ready to Show condition?

Response: Contractor should consult with the Contracting Officer Representation (COR).

9. 5.2.1, Pre-Conveyance, Pg. 49: Based on quantity estimates is HUD anticipating a pre-conveyance inspection to be completed before each HUD-Vacant new acquisition?

Response: Ideally, HUD would like to perform as many pre-conveyance inspections as possible.

However, pre-conveyance inspections are usually at the option of the mortgagee. See guaranteed minimums.

10. 5.2.2.3, Repair Broken Windows and Doors, Pg. 54: Does this process apply to Custodial properties upon assignment or once HUD acquires title to the property?

Response: Yes, this applies to properties upon assignment. Broken windows that outside elements and moisture into the property should be repaired, to prevent deterioration of the property. Contractor should consult with the COR, if there is a specific property-related question.

11. 5.2.2.3, Ensure Proper Access, Pg. 54: Rekeying properties is a time and labor-intensive task that will be significantly impacted if inventories grow as HUD is estimating. Will rekeying costs be a pass-through cost and will HUD reconsider its timeframe to be completed annually?

Response: All HV and Custodial properties that have been in inventory for 180 days (from date of assignment) on June 1st and December 1st must be rekeyed. Cost associated with rekeying eligible properties will be reimbursed as a pass-thru cost. . Prior to rekeying the properties that meet the eligibility criteria on June 1 and December 1, the contractor should obtain a bulk quote and submit to the COR for approval prior to rekeying the properties.

12. 5.2.2.3, Prevent Further Moisture Damage, Pg. 54: Will the Contractor be reimbursed for costs associated with preventing further moisture damages at HUD-Vacant properties, e.g.

dehumidifier, damp rid, dry lock, etc.?

Response: Unless the damage is a hazard, the Contractor should request prior pass-thru expense approval fromthe COR.

13. 5.2.2.3, Prevent Further Moisture Damage, Pg. 54: Will the Contractor be reimbursed for costs associated with preventing further moisture damages at Custodial properties, e.g. dehumidifier, damp rid, dry lock, etc.?

Response: : Unless the damage is a hazard, the Contractor should request pass-thru approval to the

COR.

14. 5.2.2.3, Post-Acquisition Utility Charges, Pg. 55: If a property becomes adversely occupied following HUD’s acquisition, will HUD reimburse the contractor for post-acquisition utility charges when the contractor is unable to discontinue those services until the occupants vacate the property?

Response: The Contractor should consult with the COR to determine a solution and find out if a pass-thru will be approved.

15. 5.2.2.3, Post-Acquisition Utility Charges, Pg. 55: Does HUD have historical data detailing utility costs per area now that all utility fees and charges are a Contractor expense? Utility costs could exceed $100,000 in certain areas and would rise significantly with volume increases.

Response: No

16. 5.2.3.2, Evictions, Pg. 58: Will HUD fully reimburse the contractor for removal/disposal/storage costs resulting from personal property abandoned by occupants following eviction?

Response: HUD will fully reimburse the contractor if prior COR approval was obtained..

17. 5.2.6, Custodial Properties, Pg. 62: Custodial properties sometimes require utility services.

Previously HUD has had the FSM initiate services in its own name and forward bills to HUD’s

National Servicing Center. Delays in payment often resulted in disconnection leading to property damage and negatively impacted the FSM’s credit rating. Will a new process be instituted to protect custodial properties that does not risk the Contractor’s credit rating given that such utility charges would not be “Post-Acquisition” as described on page 55?

Response: The Contractor should consult with the COR to develop a strategy, that ensures timely payment, so the contractor is not negatively impacted.

18. 8, Performance Requirement Summary (PRS), Pgs. 68-69: Will HUD include approved/rejected pass-through transmittals in its qualitative review? If so, how will an AQL be determined?

Response: Yes. See the Performance Requirement Summary Chart Section 5.3

19. 8, Performance Requirement Summary (PRS), Pgs. 68-69: If a pass-through transmittal is rejected but the contractor promptly corrects and resubmits that transmittal, will it negatively impact the qualitative metric if the transmittal is ultimately approved? Currently, HOCs do not share a universal approach to this aspect of the qualitative review.

Response: Yes, inaccurate transmittals adversely impact the qualitative scorecard metric. Transmittals shall be submitted in accordance with the Performance Requirement Summary Chart – Section 5.3

2. Attachment 12, Historical Inventory Data: The provided attachment separates HUD-Vacant and custodial properties. Is HUD able to provide New Acquisitions by area for HUD-Vacant and custodial for the same monthly timeframes?

Response: See attachment 4 that denotes HV/REO and Custodial acquisitions acquired during April 2019

– December 2020.

Section C: Description/specifications/statement of work.

1.2, Assignment of Assets, pg. 18- Does HUD have start and end times for assignment of properties and what time zone are the start and end times?

Response: No

1.2, Assignment of Assets, pg. 18 - Does HUD intend to introduce a successor system to P260?

Response: The BSP case management contract is a competitive award. Yardi (P260) is the current contractor.

1.2, Asset Assignments and Performance, pg 19 - May we have visibility to the QPR?

Response: Yes. Contractors receive a quarterly report on performance

1.3, Written Approval, pg. 19 - Through what kind of written channel will the COR provide approvals, if not through HUD information system?

Response: COR approvals should mostly come thru P260. Upon occasion, COR approval may be made via email or other written correspondence.

1.3, Compliance with legislative, regulatory and policy requirements, pg. 20 - What are HUD’s response times on notification of identifying issues?

Response: The question is unclear as to response times. The contractor is required to be knowledgeable about all HUD policies pertaining to its inventory. This includes but is not limited to Mortgagee Letters, Handbook changes, Regulation changes, and statues.

1.3, Systems Security Administrator, pg. 22 - When does the SSA need to complete the mandatory HUD specialized online security training course?

Response: SSA will be advised after contract award.

5.2.1.1.5, Properties Conveyed Occupied without Approval, pg. 51 - Will HUD reimburse the Contractor attorney fees and costs as a pass through for the eviction and lease agreement costs?

Response: HUD will reimburse for normal and customary eviction costs.

5.2.2.3, Disposal of all Debris, Refuse, and Personal Property, pg. 53 - How many evictions have been approved by COR for each contract area in the years 2015, 2016, 2017, 2018, 2019?

27011 Part B-D; however, the FSM learns that the Mortgagee’s contractor or vendor preforming the reimbursed work was never paid for the service? Would the lender be submitting a false claim to HUD in this situation?

Response: HUD does not have the count of evictions per contract area, from 2015-2019. An investigation would be necessary to determine if the lender submitted a false claim.

Section B: Supplies of services and prices/costs.

1. B.2 Pricing, Initial Services, page 12 – This section states that grass cutting, tree/bush trimming, and foliage is not an allowed in the excessive debris count. Is this also to include custodial (CS) properties?

Response: Yes. Grass cutting, tree/bush trimming, and foliage is not to be included in the 10 CY of allowable debris count or the count of excessive debris Section B of the PWS states “Verifiable debris refuse or personal property (not to include grass cutting, tree/bush trimming and foliage) in excess of 10 CY and discovered at initial inspections shall be an allowable Pass through Expense and submitted in accordance with the HUD’s Financial Control Manual.” This requirement applies to REO/HUD-Vacant, custodial, vacant lots etc.

2. B.2 Pricing, Initial Services, page 12 – Prior to acquisition, CS properties often never receive any preservation service. How will the contractor be protected from extreme circumstances of overgrowth when performing initial services on neglected CS properties?

Response: The Contractor is responsible for maintaining the property exterior on a CS case, upon assignment. This is a contractor’s expense. B.2 Pricing, Initial Services, page 12 – Can CS properties be exempt from the non-foliage verbiage?

Response: No

3. B.2 Pricing, Initial Services, page 12 – If marketing efforts proceed on a property with a “not ready to show condition” work order from the AM initial inspection, are liquidated damages still applicable although the property is being marketed and no true delays or damages are taking place?

Response: Yes, liquidated damages are still applicable. If there are extenuating circumstances, the Contractor is able to submit an Exception request to the COR for consideration.

4. B.2 Pricing, Initial Services, page 12 – Is it HUD’s intent to not market step 1c properties with a

“not ready to show condition” work order until the verified issue(s) is remedied?

Response: Yes

5. B.2 Pricing, Initial Services, page 12 – What method(s) does the HUD COR use to verify the AM recommendation of a “not ready to show condition” WON request?

Response: The COR is able to review all pertinent information in P260 on the case, to assist in determining whether to approve/disapprove the WON.

6. B.2 Pricing, Initial Services, page 12 – Is there a time constraint on how long the AM has to complete their initial inspection and open a not ready to show condition work order after a property is placed in step 1c?

Response: No

7. B.2 Pricing, Initial Services, page 12 & Missed/Late Routine Inspections, page 13 – Why does

HUD assess liquidated damages for ready to show on a per calendar day calculation based off the CLIN amount per unit, but the routine liquidated damage is assessed on a set random dollar amount ($50)?

Response: The amount of Liquidated Damages are used to compensate the Government for probable damages due to issues such as delayed showings, delayed sales, and increased costs. The rates included in the contract are a reasonable forecast of just compensation for the harm that may be caused by late delivery or untimely performance on this contract. Different liquidated damages may apply to various non-compliance. .

8. B.2 Pricing, Custodial Properties (CS) (On-going) Property Management (PM Fees), page 13 –

Since this CLIN encompasses the Initial Services (which includes HPIR Part I and Initial exterior services), why would these services be pro-rated as a monthly fee? They would be a onetime service and seems reasonable to separate from the monthly CLIN.

Response: For properties not held in the contractor’s inventory for the entire month, the PM Fee will be prorated based on the number of calendar days the property was in the contractor’s inventory for the month. There is no separate initial services fee for custodial properties and the services are generally limited as compared to HUD-Vacant/REO properties conveyed by mortgagees. Offerors should take this into consideration when pricing fixed priced CLINS for custodial properties.

9. B.2 Pricing, Custodial Properties (CS) (On-going) Property Management (PM Fees), page 13 –

Does HUD intend to continue the practice of note sales for custodial properties? If so, what kind of notice will the FSM receive prior to properties leaving the inventory due to a note sale?

Response: HUD may conduct note sales on any type of its assets. Upon awareness by the COR, the contractor should be notified.

10. B.2 Pricing, Contractors Limitation on Cost for Health and Safety Repairs, pages 13-14 – Is P260 programmed to track the amount of funds incurred by the FSM on H&S hazards per property?

Response: No

Section C: Description/specifications/statement of work.

1. C.1.2 Background, Assignment of Assets, page 18 – If a new acquisition assignment is made after normal business hours as defined within the PWS, is there a mechanism in place within P260 to ensure the calendar date of assignment does not trigger until the following day/proceeding date?

Response: Currently, P260 system hours are as follows: Monday -Friday 7AM – 9PM ET, Saturday 8AM

– 6PM ET, Sunday Closed, and Federal holidays closed.

2. C.1.2 Background, Assignment of Assets, page 18 – How is the FSM expected to continuously monitor their active inventory for new acquisitions after business hours when the P260 system of record closes at a specific time each night, and is not accessible to the FSM to check for new acquisitions?

Response: The Contractor should plan to perform its tasks around HUD’s systems capability.

3. C.1.2 Background, Asset Assignments and Performance, page 19 – Historically, qualitative inspections are scored with a 10, 7, or 4 rating per HUD scorecards. Why does HUD not utilize a sliding scale to include the quantitative number of 9 and 8 for example? The current logic of qualitative memos can place the FSM outside of contract period compliance with merely a 1 or 2 not satisfactory qualitative scores over a 12 month period.

Response: HUD is not changing its scoring for qualitative ratings.

4. C.1.2 Background, Asset Assignments and Performance, page 19 – In regard to the scorecard mentioned, if errors are found within the quantitative and qualitative scorings, does the FSM have the right to an appeal process? If so, can that process please be provided and explained?

Response: Yes. There is an appeal process outlined on the scorecard and in P260 for the Contrator to follow.

5. C.1.2 Background, Asset Assignments and Performance, page 19 – Could further clarification be provided on what measurables will be included in the referenced contractor performance scorecard, specifically what will be included in the quantitative measurements compared to the qualitative measurements?

Response: The quantitative portion of the scorecard relates to performing the work and meeting the required timeframes in the PWS and the qualitative portion of the scorecard makes sure the quality conforms with the terms and conditions of the contract C.1.13 Transition-In Period, page 24 – Is it HUD’s intention with the 3.12 contracts for there to be an adequate start up and ramp up period, utilizing the mentioned timeframes in this section?

Response: Yes.

6. C.1.13.1 Pre-Ramp-Up Transition Activities; Quality Control, Contingency, and Property Management Plan, page 25 and HUD Responsibilities, page 26 – The timeframes mentioned are not the same, therefore, which set of dates does HUD intend to utilize? Page 25 mentions 10 business days, 15 business days, and 7 business days (again on page 40) but on page 26 the verbiage changes to 30 calendar days (again mentioned on page 38).

Response: Within thirty (30) business days after contract award, the Contractor shall submit a Quality Control Plan (QCP), a Contingency Plan (CP), and a Property Management Plan (PMP). See Amendment 2 for the new language.

7. C.1.13.1 Pre-Ramp-Up Transition Activities; Office Space, page 25 – Will any exceptions be considered due to the global health pandemic for the FSM to not be required to open an office?

Response: No, at this time, the Contractor is expected to have an office and take into consideration limitations due to COVID.

8. C.1.13.1 Pre-Ramp-Up Transition Activities; Systems Security, page 25 – Does HUD have a plan in place to ensure the contractor has the adequate number of C #’s in a timely manner, so services are not impeded?

Response: Yes. Contractor on-boarding is coordinated with HUD Security Division (PSD), as soon as the contract is awarded. The contractor should provide the necessary PIV documents to the COR as soon as possible, for PSD to complete the background checks and issue C #’s.

9. C.1.13.2 Ramp Up Transition Tasks, Repair Expenses due to Former Contractors Non- Performance, page 27 – Could HUD provide additional detail on what is required to successfully track emergency repairs?

Response: Contractor should consult with the COR and provide photos to sufficiently document the extent of the damage and progression photos showing the completion of the repairs, along with the vendor invoice.

10. C.2.1 Definitions, Ready to Show Condition, page 33 – If the AM recommends a cosmetic enhancement such as the removal of carpet for a pass-through expense, how will HUD or the AM disperse that work order to the FSM (i.e., General Repair WON)?

Response: Work orders will be processed through P260.

11. C.2.1 Definitions, Reconveyance, page 34 – During the reconveyance process, is the FSM able to submit pass-through expenses that are outside of the typical scope of a HV acquisition? For example, soffit is missing, and the FSM has to correct that regardless of the reconveyance taking place to ensure the preservation and protection of the property is intact.

Response: The FSM should consult with the COR for consideration of any pass through requests. The FSM will continue to preserve and maintain the property during the reconveyance process.

12. C.2.1 Definitions, Single Area, page 34 – To remove any confusion for the FSM, is this definition to be space or surface? Those two words have two different definitions.

Response: Space or surface is used as a general guide that is dependent upon the actual item in question; for example, ‘window sill surface’, or for example, ‘crawl space’.

13. C.3.3 Equipment, page 39 – What is “PIV hardware” that the government will furnish?

Response: There is currently no hardware that is furnished to the contractor.

14. C.4.4 Contractor Responsibilities, Daily Posting of Records, page 42 – Does HUD have intentions for P260 to be available to the FSM 365 days a year, 7 days a week, 24 hours a day?

Response: No. P260 is not available 365 days a year, 7 days a week , 24 hours a day. P260 is available weekdays 7am – 9pm ET (Federal Holidays excluded) and Saturdays 8am – 6pm ET.

15. C.4.4 Contractor Responsibilities, Vandalism, page 44 – Regarding windows, does the 4 window FSM repair limit come into consideration with vandalism properties?

Response: The 4 window excess reimbursement is for damages discovered at initial inspection. For vandalism, see Vandalism section; vandalism repairs are completed at the contractor’s expense.

16. C.4.4 Contractor Responsibilities, Other Vandalism Repairs, pages 44 & 45 – To further clarify this description for the FSM, would examples of damages in which the contractor would not be responsible for repairing at its own expense shall include illegal dumping, plumbing repairs to isolate water intrusion due to vandalism, stolen sump pump and/or dehumidifier?

Response: HUD shall reimburse the Contractor for the cost of approved repairs as a pass-through expense provided that HUD does not determine that the vandalism is due to the Contractors failure to properly secure the property against unauthorized entry or that the Contractor has engaged in (or permitted) a pattern or practice of failing to secure properties.

17. C.4.4 Contractor Responsibilities, Held Off Market (HOM) Codes, page 45 – Where can the FSM find a comprehensive and complete list of the HOM codes and when to appropriately utilize each code?

Response: P260 has available dropdown codes.

18. C.4.4 Contractor Responsibilities, Held Off Market (HOM) Codes, page 45 – Is there a specific HOM code for the FSM to utilize for extreme excessive circumstances that will cause delays in timeliness? An example would be a 500 cubic yard debris removal will reasonably take longer than 5 days to complete.

Response: There is no specific HOM Code for excessive circumstances. The contractor should consult with the COR.

19. C.4.4 Contractor Responsibilities, Transmittal Processing, page 46 – What is the standard process in determining what contract period date should be utilized on transmittals, either the invoice date or the service date?

Response: Service Date

20. C.5.2.1.1.2 Overallowable Inspection, page 50 – Overallowable inspections includes coordination with the mortgagee to ensure proper access is obtained. These inspections normally deal with lockbox codes, address verification information, etc. that only the mortgagee can provide. Can these inspections be moved to business days rather than calendar days due to these restraints outside of the FSM’s control? Mortgagees are seldom available to help assist the FSM on weekends with access issues or address verification.

Response: No, timeframes will continue to based on calendar days. Pre-conveyance inspections are currently done, and most of the required information from the mortgagee should be in P260.

21. C.5.2.2.2 Initial Securing, page 53 – The contractor shall keep an itemized record of all charges incurred for activities performed on properties that are reconveyed and provide this information to the COR upon request. Will the contractor be reimbursed for activities completed on properties that are reconveyed?

Response: See Section J, Attachment 5 for allowable passthroughs.

22. C.5.2.2.2 Initial Securing, page 53 – What is the standard process for properties acquired with barriers intact, i.e., VPS or DAWGS, that were left by the mortgagee prior to conveyance?

Historically HUD has utilized bypass and reconveyance as options.

Response: Consult with the COR for case by case scenarios.

23. C.5.2.2.3 Initial Clean-out Services, Performance Standards, page 56 – Under this section, where the AQL references 95%, does this metric include the timely promotion of a property to a step 1c ready to show condition? Or does this AQL reference only pertain to an AM work order being created based on their initial inspection?

Response: The 95% AQL is based on promoting to Step 1c timely and in ready to show condition, with no Not Ready to Show WON.

24. C.5.2.2.3.1 Health and Safety Hazards and Emergency Repairs, page 56 – If an H&S work order is opened and assigned by the AM after normal business hours, is there a mechanism in place with P260 to ensure the calendar date of assignment does not trigger until the following day/proceeding date?

Response: P260 hours are as follows Weekdays: 7 am to 9 pm Eastern Saturdays: 8 am to 6 pm Eastern excluding federal holidays. WONs can be created at any time P260 is available.

25. C.5.2.3.1 Ready to Show Condition, pages 56 & 57 – What is the process for the FSM to be reimbursed for costs incurred due to AM or potential buyers changing the condition of a property under contract? For example, starting renovations or changing locks before the property closes.

Response: Purchasers are prohibited from doing any work until escrow closes.

26. C.5.2.3.2 Routine Inspections, page 57 – Are Sundays excluded from the 10 to 14 day requirement due to P260 being closed? Although the portal level access will allow for uploads on Sundays, there is no mechanism for the FSM to approve routine inspections until Mondays which goes against the 10 to 14 day requirement. The P260 closure on Sundays is outside of the FSM’s control and seems unreasonable to have a day taken away weekly from the FSM’s routine compliance threshold.

Response: Sundays are built into the calculations

27. C.5.2.4 Environmental Compliance, Costs, page 59 – Why would the FSM be responsible for HUD’s contracted LEC contractors invoice processing?

Response: The Lead Evaluation Contractor cannot generate a transmittal In p260

28. C.5.2.4 Environmental Compliance, Mold, page 60 – If the Contractor finds a larger area of mold and notifies the COR of such, does the FSM await COR approval to proceed with any and all testing, abatement, and remediation efforts?

Response: Yes

29. C.5.2.6 Custodial Properties, page 62 – Historically upon acquiring custodial properties, the FSM is provided with zero documentation to help confirm address and unit number when applicable.

This lack of documentation creates delays and potential errors in servicing CS properties. Does

HUD have a remedy, such as providing the FSM access to HERMIT, to ensure the FSM has an accurate address, unit #, etc. since no documentation is typically included within P260?

Response: HERMIT is an internal HUD system, and HUD does not anticipate providing access to FSMs.

30. C.5.2.6 Custodial Properties, Ready to Show Condition, page 62 – Is there a threshold on moving items of value to a garage or structure that could be considered as a pass-through expense regarding extreme cases? Some properties can have 100 cubic yards and more found on the exterior.

Response: No

Part III - List of Documents, Exhibits, and Other Attachments

Section J: List of attachments.

1. Attachment 4, Section I Policy, #1 General, page 1 – Has HUD discussed the potential for increased rental services for the contractor due to the current health pandemic? If yes, has a determination been made that the contractor should be made aware of?

Response: HUD’s policy regarding occupied conveyances has not changed. Historically, occupied conveyances represent less than 5% of inventory.

2. Attachment 5, PWS Reference 4.4, Other Vandalism Repairs, page 2 – Would debris left by a squatter, unlawful occupant, or illegal dumping from any entity on the property (other than the contractor) be considered “other vandalism repairs” or “casualty damage”? This situation seems like it could be applicable to either of these sections but is not specified within the PWS.

Response: No. Subsequent debris after initial services is a Contractor’s expense.

3. Attachment 5, Section B.2 Pricing, Debris Removal During Initial Services, page 2 – Will there be a standardized excessive debris process for all 11 solicitated areas? Could HUD please expound with more detail on this process? For example, within the HUD HOC we are currently servicing, the Mortgagee letter is followed by having the FSM submit measurements, load pictures, and dump receipts, and is paid at the rate established within the mortgagee letter.

Response: Standardized procedures for debris removal are outlined in the REO Financial Control

Manual.

4. Attachment 5, Allowable Pass-Through Expenses Table, pages 1 & 2 – Will this attachment be amended to include casualty damage occurrences? Per C.5.2.3 Property Maintenance of the

PWS, it states the contractor shall not be held liable for casualty damage as long as, before and after such casualty, the contractor takes immediate and reasonable action to protect the property.

Response: No, not at this time

5. Attachment 6, HPIR Form, Part I, pages 1 & 2 – Will HUD be adding an “OK” option to be included with the other provided answers: Missing, Damaged, and N/A? This would pertain to the building systems functionality throughout part I of the HPIR.

Response: No, not at this time

6. Attachment 6, HPIR Form, Part III, pages 5 & 6 – Will HUD be adding an “OK” option to be included with the other provided answers: Missing, Damaged, and N/A? This would pertain to the building systems functionality throughout part III of the HPIR.

Response: No, not at this time

7. Attachment 7, Routine Form, I. Exterior, c., page 1 – The question currently reads “Pool/spa covered and all gates secured?” which is actually two separate questions. Will HUD be separating these so the contractor can answer each one appropriately?

Response: No, not at this time

8. Attachment 7, Routine Form, I. Exterior, f., page 1 – The question currently reads “Property boarded and secured?” which is actually two separate questions. Will HUD be separating these so the contractor can answer each one appropriately?

Response: No, not at this time

9. Attachment 7, Routine Form, I. Exterior, j., page 1 – The question currently reads “Property free of debris & other hazards?” which is actually two separate questions. Will HUD be separating these so the contractor can answer each one appropriately?

Response: No, not at this time

10. Attachment 12, Historical Inventory Data – The spreadsheet mentions HV and CS totals for each month, but where are the VL counts included?

Response: Historical volumes/ending inventory for vacant lots is not readily available. However, vacant lots have historically represented less than 5% of inventory. Acquired vacant lots during April 2019 –

December 2020, are as follows:

Month/Year VL

Acquisitions

Month/Year VL

Acquisitions

Month/Year VL

Acquisitions

Apr 2019 2 Nov 2019 2 Jun 2020 0

May 2019 2 Dec 2019 2 Jul 2020 1

Jun 2019 1 Jan 2020 4 Aug 2020 1

Jul 2019 3 Feb 2020 4 Sept 2020 1

Aug 2019 3 Mar 2020 0 Oct 2020 1

Sept 2019 1 Apr 2020 2 Nov 2020 4

Oct 2019 1 May 2020 4 Dec 2020 2

Attachment 12, Historical Inventory Data – Although not defined in the attachment, should the contractor assume that the inventory counts are for the same specific day in that given month

(i.e., 1st of each month)?

Response: The historical inventory counts reflects ending inventory for the last day in each month.

Acquisition inventory reflects properties received for all days in the month.

11. Attachment 12, Historical Inventory Data – Will HUD supply the new acquisition monthly counts along with the supplied total inventory counts? If no, why would that be the case as it was noticed that the recent HUD MCM solicitation supplied conveyance stats and those stats would apply to the FSM contractor as well.

Response: HUD will provide monthly acquisitions and ending monthly inventory for HV and CS properties for April 2019 – December 2020. This represents over 95% of inventory historically assigned to the FSM.

1. Initial Services, page 12

Specifically states CLIN 0004, the first 10 cubic yards (CY) is at Contractor Expense. What is

HUD’s stance on debris removal liability when CLIN 0004 is not paid by HUD on a property?

Examples of such properties include Custodial Properties, where the FSM is not paid an Initial

Service (CLIN 0004) but regularly needs to remove excessive amounts of debris from the property.

Response: Debris removal for Custodial properties will be handled in accordance with Section 5.2.6 of the PWS. Contractors are reimbursed for debris removal for custodial properties as part of CLIN 6.

2. Contractors Limitation on Cost for Health and Safety Repairs, page 13

This section includes Health and Safety repair limitations. How are temporary repairs performed at HUD’s direction considered? Example, tarp on a roof of a damaged Custodial.

Response: Health and safety repairs that would be considered temporary should be discussed with the

COR.

Section C: Description/specifications/statement of work.

1. 1.13.2 Ramp Up Transition Task, Custodial Properties, pages 26-27.

HUD is asking for Former Contractors to share Work Orders with new Contractors. We find

Work Order information as proprietary as it includes internal communication and pricing. We recommend this language be removed.

Response: Case level information should be uploaded into P260, and that would include work orders, inspections and etc. Former contractors should safeguard any proprietary information, to prevent it from being uploaded into P260.

1.13.2 Ramp Up Transition Task, Custodial Properties, pages 26-27.

Can Former Contractors send the requested property inspections to the new FSM electronically?

This is much more efficient than in boxes as proposed by existing verbiage.

Response: Currently, HUD requires files to be shipped in standard record boxes via overnight delivery.

2. 4.1 Facilities, page 40

This section states:

Facilities, Staffing and Equipment no later than the tenth (10th) calendar day after the effective date of the contract…

However, Section 4.4 Contractor Responsibilities states:

Facilities, Staffing and Equipment - No later than the forty-fifth (45th) calendar day after the effective date of the contract, the Contractor shall notify the COR…

Please clarify and/or correct.

Response: It’s no later than the forty-fifth (45th) calendar day after the effective date. (see amendment 1)

3. 4.4 Contractor Responsibilities – Vandalism, page 44

Are any Vandalism related health and safety hazards found to be considered against the Contractors Limitation on Cost for Health and Safety Repairs?

Response: Yes

4. 5.2.2.3 Initial Clean-Out Services (Utilities), page 44

Are utilities prior to HUD’s acquisition to be paid as a pass-through expense ONLY in super lien states?

Response: HUD pays pre acquisition lienable utilities that were not paid by the mortgagee as a pass -through expense. Any penalties and interest on properties conveyed by mortgagees may require a demand for such fees.

5. 4.4 Contractor Responsibilities - Held Off Market (HOM) Codes, page 45

Are properties only considered Held Off Market when a HOM code is assigned?

Response: Yes

6. 5.2.2.3 Initial Clean Out Services (Utility Liens), page 45

Are utility liens not wiped out at mortgagee’s foreclosure to be paid as a pass-through expense ONLY in super lien states?

Response: No

7. 4.5 Contractor Personnel, page 46-47

a. Can the alternate key personnel be other key personnel on the Team? Example, Project Manager is named as alternate Contract Manager as well.

Response: No

b. Alternate Point of Contact/Alternate Key Personnel – Does HUD expect these individuals to be abreast of all of the nuances and individual COR requirements on a day to day basis?

Response: Yes

c. If a Contract has very low volume and staffing is limited beyond key personnel, are the alternates expected to come from different parts of the firm’s company?

Response: This is the contractor’s decision.

8. 5.2.2.2 Initial Securing, page 53

Reconveyance properties are defined as approved to be returned to the Mortgagee and refund of the claim paid. For the FSM, is the obligation limited to language in 5.2.2.2 Initial Securing (Page 53) as “The Contractor shall perform the initial securing services and routine inspections in accordance to C.5.2.3.2 for those properties that do not meet conveyance condition…”

Is there any other service that needs to be performed for reconveyance cases? These are properties where the FSM will not be billing for Initial Services, as the CLIN 0004 doesn’t get billed because the property never gets promoted.

Response: On-going maintenance in relation to CLIN 5 is still required until the property is fully reconveyed to the lender.

9. Utilities (Initial Services), Utility Liens, Post-Acquisition Utility Charges, pages 54-55

As these are tied to CLIN 0004 (Initial Services), what is the FSM’s responsibility regarding Utilities when CLIN 0004 is not triggered or paid due Reconveyance, HOM, or other reason? Is the Mortgagee responsible for these Utility bills when a CLIN 0004 (Initial Services) is not triggered due to Reconveyance, HOM, or other reason?

Response: No, it is not anticipated that the mortgagee will make the utility payments, while the property is deeded in HUD’s name; however, HUD may decide to make a demand to the mortgagee, at a later date.

10. 5.2.6. Custodial Properties, page 62

As HUD is not the deeded owner, what is HUD’s expectation of Utility work by the FSM on Custodial properties? This section only mentions that the FSM is not required to generate and send notification letters.

Response: FSM is to protect CS assets from freeze damage per HUD Handbook 4000.1.

Part III - List of Documents, Exhibits, and Other Attachments

Section J: List of attachments.

1. Attachment 5, Allowable Pass-through Expenses

a. Can HUD provide an updated copy of the Financial Control Manual that ties to this solicitation during the solicitation phase?

Response: The Financial Control Manual (FCM) is a proprietary document. The FCM is usually provided to contractors after the post award conference.

b. In order to obtain COR approval must the FSM show proof of payment of pass through expense in advance of COR approval?

Response: No. COR approval is required before the expense is incurred.

c. How many bids are required, if any?

Response: Three

d. Does debris removal during initial services in excess of 10 CY require a standalone proof of payment or can it be paid with other services rendered by FSM’s vendor?

Response: Standalone proof for payment of debris is required along with COR approval.

e. Are ACH and or electronic payment an acceptable for proof of payment?

Response: Yes

Atlanta 3A HV 73 83 79 83 93 77

Atlanta 4A HV 67 68 73 71 65 82

Atlanta 3A CS 15 21 14 24 29 33

Atlanta 4A CS 10 5 9 22 8 15

165 177 175 200 195 207

Atlanta 5A HV 49 54 61 59 60 51

Atlanta 8A HV 112 110 120 123 119 164

Atlanta 5A CS 13 9 30 21 14 23

Atlanta 8A CS 48 51 50 53 64 85

222 224 261 256 257 323

Atlanta 6A HV 110 105 131 118 137 109

Atlanta 7A HV 43 48 43 38 52 53

Atlanta 6A CS 16 22 18 36 40…