3.12 Q&A RESPONSES - GROUP 3.pdf

3.12 FIELD SERVICE MANAGEMENT

SOLICITATION 86544B19R00002

QUESTIONS AND ANSWERS

GROUP 3

SOLICITATION SECTION TITLE

Part I - The Schedule

Section B: Supplies of services and prices/costs.

MISSED/LATE ROUTINE INSPECTIONS, P. 13

Question 1: Is there a point at which inventory levels become too low, and/or complications from COVID-

19 cause enough disruption, that HUD foregoes on applying liquidated damages for late routine inspections? The lower the inventory density in an area, the more challenging and expensive it is to get the field work done timely.

Response: Standard Health and Safety protocols as defined by the CDC have been in place for all government contractors since February 2020. Those include social distancing, use of personal protective equipment (masks, gloves, hand sanitizer, etc.) and it is expected that all HUD contractors adhere to those guidelines. It is not anticipated that the level of inventory will have any effect on a contractor’s ability to complete routine inspections. It is a Prime contractor’s responsibility to ensure they have the necessary sub-contractor reach-back to complete the PWS requirements in a timely manner to avoid penalties such as liquidated damages.

Part IV – Representations and Instructions

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

L.5 HUDAR 2452.215-70 PROPOSAL CONTENT ALTERNATE II (APR 2019), P. 133

Question 1: Does the following mean that we should include other than certified cost data, or illustrations of our cost buildup and pricing support? If so, where in the proposal package should this be placed? “(2) The offeror shall provide information to support the offeror’s proposed costs or prices as prescribed elsewhere in Instructions to Offerors for Part II—Business Proposal.”

Response: See Amendment 1 for change in proposal content.

L.6 INSTRUCTIONS TO OFFERORS, PP. 134 – 135

Question 1: Please confirm that proposals are to be emailed, rather than physical mail or fax. Item (9) on

p. 135 states, “Email proposals will not be accepted under this solicitation,” yet p. 134 states, “The government will not accept FAX or mailed copies of your proposal: Offerors must email their proposals to Andress.M.Williams@hud.gov.”

Response: Proposals are to be emailed to: sourcessought@hud.gov. (see amendment 1) mailto:Andress.M.Williams@hud.gov

B. SOCIOECONOMIC PARTICIPATION, PP. 139 – 141

Question 1: Do the FSM’s internal, W-2 office staff costs count as part of what is “Performed by Prime,” or does the calculation only refer to field activities, such as inspections and maintenance?

Response: Performance by the Prime means work accomplished in performance of the contract by any individual that is directly employed by the PRIME. Any work that is completed by an employee paid by any another entity would be considered a sub-contractor.

Question 2: When the contractor’s compliance with the Socioeconomic plan is evaluated semiannually (per H.15), with the “Contract Value” number utilized be the actual CLIN dollars received by the contractor, or the proposed contract value? If the proposed value, how will the percentages be calculated when a large portion of the calculated monies have gone to neither the prime or any subcontractor? Also, please confirm that the same calculation approach applies to the Subcontracting Plan for other than small businesses.

Response: The semiannual compliance report will be based on the awarded contract value and the actual performance in fulfilling the proposed percentages performed by Prime and Subcontractors and of the percentage subcontracted the proposed percentage performed by Small Businesses and Other than Small Businesses. There may be certain pass-through costs that are unavailable to be performed by small business subcontractors. The contractor may state amounts that it believes should be excluded from total contract value in calculating compliance with small business targets.

The Subcontracting Plan would be based on the estimated award value. The socioeconomic participation plan and the subcontracting plan percentages are not calculated the same. The socioeconomic participation plan is based on the contract value while the subcontracting plan is based on the contractor’s planned subcontracted dollars, and they are usually different percentages.

Question 3: Do small field subcontractors, meaning those performing inspections and maintenance, count towards the socioeconomic calculation, meaning “% of Subcontracted Value Performed by Small Business?” Likewise, do such small field subcontractors count towards the Subcontracting Plan goals (ex:

Women-Owned Small Business – 5%)?

Response: Yes. Any small businesses that are used as subcontractors count toward the socioeconomic calculation and the Subcontracting Plan goals.

Question 4: When creating the semiannual compliance report, will the contractor calculate the percentage performed by small businesses by (a) totaling the CLIN monies received that involved a small business for field performance (and dividing by total CLIN income), or (b) by totaling the actual monies paid to small businesses (and dividing by total CLIN income), or instead (c) by totaling the count of CLINs where a small business performed the field work (and dividing by the total count of CLINs received)? Also, please confirm that the same calculation approach applies to the Subcontracting Plan for other than small businesses.

Response: : HUD will derive the awarded contract value by calculating the sum total of all the CLINs. The percentages will not be tracked by individual CLINs. The semiannual compliance report will based on the awarded contract value and the actual performance in fulfilling the proposed percentages performed by Prime and Subcontractors and of the percentage subcontracted the proposed percentage performed by Small Businesses and Other than Small Businesses. There may be certain pass-through costs that are unavailable to be performed by small business subcontractors. The contractor may state amounts that it believes should be excluded from total contract value in calculating compliance with small business targets.

IAW FAR 19.704(2), A statement of the total dollars planned to be subcontracted and a statement of the total dollars planned to be subcontracted to small business (including Alaska Native Corporations and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes) and women-owned small business concerns, as a percentage of total subcontract dollars. For individual subcontracting plans only, a contracting officer may require the goals referenced in paragraph (a)(1) of this section to be calculated as a percentage of total contract dollars, in addition to the goals established as a percentage of total subcontract dollars; further in 19.704(6), A statement as to whether or not the offeror included indirect costs in establishing subcontracting goals, and a description of the method used to determine the proportionate share of indirect costs to be incurred with small business (including ANCs and Indian tribes), veteran-owned small business, service-disabled veteran-owned small business, HUBZone small business, small disadvantaged business (including ANCs and Indian tribes), and women-owned small business concerns. The socioeconomic participation plan and the subcontracting plan percentages are not calculated the same. The subcontracting plan is based on the contractor’s planned subcontracted dollars.

BUSINESS PROPOSAL, P. 141

Question 1: Please confirm that scans of documents containing “original” signatures will be accepted, and that contractors should not mail or otherwise provide HUD the original documents physically. This question refers to the following statement: “Offerors are cautioned that the SF 33 must contain an original signature in Block 17 of the form. Each Offeror shall complete fill-ins and signatures and submit the original as stated below. An authorized official of the firm shall sign the offer and all certifications requiring original signature.

Response: Scanned Documents can be emailed but must contain digital or blue ink signatures (See amendment 1 for changed language)

A. PAST PERFORMANCE, P. 142

Question 1: The following statements seem to contradict one another: (a) “Magnitude is defined as peak monthly inventory” (p. 142) (b) “Offerors shall provide the information for each reference in monthly average over the life of the reference” (p. 142), and (c) “For this solicitation, magnitude is defined as peak monthly inventory” (p. 148). Should the numbers input into the “Magnitude” column of Attachment 8 represent the peak monthly volume for each reference (i.e., the highest-volume month we have had), or the average monthly volume? And if average, should the average be over only the last three years or should all additional years be included?

Response: The magnitude for each reference should represent the peak monthly volume for each reference (per section L of the solicitation)(

A. PAST PERFORMANCE, P. 142

Question 1: How will the magnitude claims of offerors be verified? The past performance surveys do not reference property volumes.

Response: The Government may utilize any information available to confirm a Contractor’s past performance. HUD is not restricted to evaluating the information provided by the offeror or the surveys provided by references and may utilize information obtained from any source. HUD may obtain additional information from the Government’s Past Performance Information Retrieval System (PPIRS), if available. (See amendment 1 on the changes)

Section M: Evaluation factors for award.

C. SOCIOECONOMIC PARTICIPATION, PP. 147 – 148

Question 1: Please confirm that Letters of Commitment are only required for subcontractors that will provide 20% or more of the contract value. The following statement seems to suggest that such letters are required even if the 20% factor is not in play: “and The offeror submitted Letters of Commitment that adequately respond to all five criteria listed in Section L.”

Response: Letters of Commitment are only required for subcontractors that will provide more than 20%of the contract value; however, if you are a Large Business, in addition to submitting the socioeconomic participation plan, you are required to submit a Subcontracting Plan. (See amendment 1)

C. PAST PERFORMANCE, PP. 148 – 149

Question 1: If we have three great references, and then a fourth that is good in some respects but perhaps weak in one regard, will it help our rating or hurt it if we list the fourth reference? Meaning, if there is a max of five references, and the offeror has several excellent references and likewise some fair ones, should the offeror omit the fair ones, or is there value in listing such? Does HUD evaluate all the references together as a totality, or each individually only?

Response: The Government cannot dictate which references the Proposer submits. The Contractor should follow the proposal instructions for Past Performance. The chart shall reflect all relevant past performance performed in the three-year period immediately preceding submission of the proposal and all work currently being performed. If the offeror has more than 5 relevant past performance references, then the offeror shall provide the most recent 5 references. .

Question 2: If two offerors are found equal regarding minimal technical acceptance and price, and offeror one has only two past performance references (and if both references are deemed excellent regarding magnitude), and offeror two has four past performance references (and if all four are deemed excellent regarding magnitude), will offeror two be deemed a higher value to HUD due only to the count of references provided, or will a totality type grade for both offerors render them equal in value regarding past performance?

Response: HUD declines to provide hypothetical evaluations or tradeoffs of hypothetical proposals. Past performance will be evaluated in accordance with the evaluation criteria set forth in the past performance factor.

Section B: Supplies of services and prices/costs.

1. CLIN 0008: Transition In, page 5

Ramp Up Transition Tasks states it will be paid at the Contract Line Item Unit line. Can you please clarify this sub Clin? So there is no payment being made here?

Response: No. There is no payment being made for this sub-clin. The Ramp-Up Transition Tasks will be paid at the Section B CLIN prices. For example, if the contractor is required to perform a CLIN 0001 Pre-Conveyance Inspection, the unit price for the inspection during Ramp-Up will be the price that is stated in Section B, CLIN 0001.

2. Transition Out Optional Task, page 12

It appears that CLIN 0046 will not need to be priced. Can HUD please confirm?

Response: Correct. CLIN 0046 will not need to be priced. During Transition Out – The contractor will perform contract services specified in the PWS and at the prices listed in Section B for the performance period prices in effect when the Transition-Out optional task is exercised.

3. 1.14 Transition-Out, page 27

This section states that the notice to exercise the Transition Out option is 15 days.

However other sections of the Contract state all options will be noticed by 30 days. There appears to be a disconnect.

Response: The Transition-Out Task is different than a contract extension and may occur during any of the contract periods. As stated in the solicitation, the Government may unilaterally exercise the Transition -Out optional task during any performance period by a written notice to the contractor no later than 15 days prior to the effective date of the Transition-Out period.

1. Other, paragraph (b), page 93

The section states:

Additionally, contractors currently performing Lead-Based Paint Abatement, Mortgagee Compliance Management (MCM), Oversight Monitor (OM), Best Execution or pre-conveyance of HUD REO inventory also have a potential conflict of interest, in accordance with the terms identified in the PWS.

Is performing pre-conveyance work by the Contractor a conflict of interest on this FSM Contract or not? The word potential in the quoted paragraph above is misleading and confusing.

Response: The Field Service Manager (FSM), its affiliated companies or its agents/ subcontractors are prohibited from performing pre-conveyance work on FHA Single Family Insured properties within the area(s)they are performing FSM services.

Activities pertaining to Claims Without Conveyance of Title (CWCOT) delineated in 12 U.S.C. §1710(a)(1)(C), 24 CFR §203.371 and HUD Handbook 4000.1 are deemed to not be a conflict of interest (COI) for purposes of this FSM contract.

2. 52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT, page 110 This section states that:

The Government may extend the term of this contract by written notice to the Contractor no later than thirty (30) calendar days prior to expiration of the contract.

However, the Transition Out Section (1.14), which can also be a contract extension, states notification no later than 15 days prior. Please reconcile and clarify.

Response: The Transition-Out Task is different than a contract extension and may occur during any of the contract periods. As stated in the solicitation, the Government may unilaterally exercise the Transition -Out optional task during any performance period by a written notice to the contractor no later than 15 days prior to the effective date of the Transition-Out period.

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

1. L.9 LINE(S) OF CREDIT, page 143

This section states:

All successful Offerors will be required to secure and submit a line(s) of credit in the amount of $500,000 or more per contract area.

a. Please clarify the Line of Credit amount per awarded Contract. Is it $500,000 or more? If more, what’s the amount?

Response: $500,000 per contract (See amendment 1 for change))

b. Contracts will be awarded with multiple contract areas (ie – Area 3A and 4A will be on one contract). If an FSM is awarded one of these bundled Contracts, is the Line of Credit amount per contract or contract area? In the example of 3A and 4A would it be $500,000 or $1,000,000 Line of Credit required?

Response: The Line of Credit amount would be per contract. Per the example provided, it would be $500,000.)

Section H: Special contract requirements.

1. H.18, AS-2315 Cybersecurity and Privacy Requirements, Pg. 102: Item 5 reads, “The Contractor shall use only HUD email system to conduct HUD government business.” Will HUD be providing

HUD email addresses to all Contractor personnel? If so, when will this occur in relation to the beginning of the contract base year?

Response: This clause was included in error (see amendment 1)

Part III - List of Documents, Exhibits, and Other Attachments Section J: List of attachments.

1. Attachment 10, 3.12 FSM Pricing Sheets: If policy changes and/or legislation significantly impact the estimated number of properties acquired by HUD and assigned to the Contractor, will HUD amend the solicitation and provide offerors an opportunity to submit revised proposals prior to award as required in FAR 16.504(b)?

Response: If HUD’s estimates change significantly for those reasons, the Contracting Officer plans to amend the solicitation. However, changes that are not considered significant may not result in solicitation amendment. Offerors should bear in mind that the solicitation is for IDIQ contracts, which explicitly involve indefinite quantities, and volumes are naturally subject to fluctuation due to numerous variables outside the prediction and control of HUD or of any offeror.

Part IV – Representations and Instructions Section K: Representation, certifications, and other statements of offerors or respondents.

1. FAR 52.204-8, Annual Representations and Certifications, Pg. 121: Item (a) (2) indicates the small business size standard is $7.5M. The description on beta.sam.gov indicates that the small business size standard is $8.0M. Which is correct?

Response: The Small Business size standard is $8.0M (See amendment 1).

1. B.2 Pricing, Missed/Late Routine Inspections, page 13 – Per CLIN 0006, why does HUD assess a liquidated damage to the contractor when HUD is not incurring additional holding costs since the property cannot be marketed?

Response: The Liquidated Damage Clause is included to protect the Agency from harm caused by late delivery or untimely performance by the Contractor.

2. B.2 Pricing, Missed/Late Routine Inspections, page 13 – Why does HUD implement a damage clause but includes no additional incentives to the contractor for exceeding timelines?

Response: Liquidated damages are not negative performance incentives. The Liquidated

Damage Clause is included to protect the Agency from harm caused by late delivery or untimely performance by the Contractor. While there are no financial incentives on this contract, there is the incentive of extending the Term of the Contract for good performance.

B.2 Pricing, Missed/Late Routine Inspections, page 13 – Is it HUD’s intent to assess liquidated damages to contractors that have a satisfactory routine scorecard metric of 95% or higher?

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.

3. B.2 Pricing, Contractors Limitation on Cost for Health and Safety Repairs, pages 13-14 – On a HV property (for example), if CLIN 0001=$1, CLIN 0002=$2, CLIN 0003=$3, CLIN 0004=$4, and CLIN

0005=$5, then $1+2+3+4+5 = $15 is the calculated H&S cost limitation; on a CS property (for example), if CLIN 0001=$0, CLIN 0002=$0, CLIN 0003=$0, CLIN 0004=$0, and CLIN 0006=$6, then

$0+0+0+0+6 = $6 is the calculated H&S cost limitation. Are these examples an accurate interpretation of this section?

Response: The example illustrated in the solicitation is an accurate interpretation of this section. The example in the question is not an accurate interpretation.

Section E: Inspection and acceptance.

1. Pages 74 to 82 – It is noticed that there is a watermark titled “Draft” on these pages. Does HUD intend to make changes to section E, section F, and section G that the FSM should notate and reference at a later date prior to proposal submission?

Response: There will be no changes made to sections E, F and G. The word DRAFT will be removed. (see amendment 1)

Section H: Special contract requirements.

1. H.14 Service Contract Labor Standards, page 97 – Does HUD anticipate the proposed $15.00 federal minimum wage litigation, if passed, will increase the current department of labor wage determination amounts?

Response: The U.S. Department of Labor’s Wage and Hour Division (WHD) is responsible for enforcing federal labor laws on topics including the minimum wage, overtime pay, recordkeeping, child labor, family and medical leave, migrant and seasonal worker protections, lie detector tests, worker protections in certain temporary guest worker programs, and the prevailing wages for government-funded service and construction contracts.

Part II - Contract Clauses Section I: Contract Clauses

1. I.52.211-11, Liquidated Damages – Supplies, Services, or Research and Development, pages 107-

108 – In regard to the reference of the contractor not being charged LD’s when the delay in delivery or performance is beyond their control and without fault or negligence of the

Contractor, how would these instances be calculated and removed from the P260 liquidated damage logic?

Response: If the Contractor feels there was an error in how liquidated damages were calculated, an appeal could be made to the Contracting Officer. The Contracting Officer and

COR will make the adjustments accordingly if warranted.

1. Attachment 10, FSM Pricing Sheets – Is HUD certain that the estimated quantities account for the potential influx of foreclosed properties that could potentially hit? If yes, what was the method of calculation? If the Response is no because the current foreclosure moratorium continues for an extended period, how is HUD accounting for that factor in the estimated quantities?

Response: In developing the estimated volumes, the Agency took into consideration the impact of the pandemic, including but not limited to the CARES Act, mortgagee letters or policies involving forbearances and moratorium on foreclosures, and changes in volumes since implementation of that legislation and related mortgagee letters or policies.

2. Attachment 10, FSM Pricing Sheets – The PWS mentioned a Transition-In and Transition-Out

CLIN payment. Will those be added to all area tabs so proper pricing can be submitted?

Response: There will be a Transition- In CLIN added to the Pricing Sheets. (see amendment 1)

Section L Instructions, Conditions and Notices, L.8 General Instructions, Pages 137-138 Can HUD clarify the following?

1. Will the Socioeconomic Participation count towards the 20 NTE pages of the Technical proposal?

Response: No. (see amendment 1)

2. Is there a desired font type & size and margin width that HUD would prefer for the technical proposal?

Response: The font is Times New Roman and refer to page 133 for pitch size and margin width guidance (see amendment 1)

Section L Instructions, Conditions and Notices, II. Part II, Business Proposal, Pages 141-143

Can HUD confirm that only 1 business proposal is needed per offeror, and offeror submitting proposals for multiple contract areas should just complete and include the appropriate price sheets for each area?

Response: There is only one proposal to be submitted and the offeror should complete and include the appropriate price sheets for each area. (see amendment 1)