Attachment 11 Questions and Answers MCM 3.0.pdf

Questions and Answers (Q&A’s)

3.0 Mortgagee Compliance Manager

Solicitation # 86614519R00001

June 17, 2020

Question Submission Format (Use consecutive numbering per each Section Title and include the specific section referenced, title, and page number for each question submitted):

SOLICITATION SECTION TITLE

Part I - The Schedule

Section A: Solicitation / contract form.

Section B: Supplies of services and prices/costs.

(1) B.1 Contract Definition - Requirements (Page 4)

The Solicitation states in Section B.1 that this contract is a “Hybrid Firm-Fixed Price, Fixed

Unit Rate, Cost Reimbursable Requirements Contract with Task Order Awards. Section L.2, Type of Contract, states that “the Government contemplates award of one (1) single

Requirements with Fixed Unit Rates contract.

a. If this solicitation is a Hybrid contract as described in Section B.1, what costs are cost reimbursable? What CLINs are Cost Reimbursable?

ANSWER: The contract does not contain cost reimbursables. This is a typographical error. The contract type is a Requirements Contract. The task orders issued against this contract are Indefinite Delivery/Indefinite Quantity

(IDIQ), Fixed Unit Rate or Firm-Fixed Price. (See Amendment 0002 of the solicitation).

(2) B.3 Pricing Schedule (Page 6)

The Base Year Period of Performance is listed as 8/1/2020 through 5/31/2021, however the Quantities for CLINs 0001 and 0002 are the same as for the Option Periods which run for 12 months each.

a. Should the Base Year Period of Performance be adjusted to reflect the shorter time frame?

ANSWER. We estimate the date of award will be August 1, 2020.

1. If the Option Period CLINS are for quantities of 30,000 for Conveyed Properties and

40,000 for CWCOT Properties and the stated period of performance for the Base Year is 10 months, should the quantities for CLINs 0001 and 0002 be closer to 25,000 and 33,333 respectively?

ANSWER: Each offeror shall submit their proposal pricing based on a 10-month base period, four (4) 12-month option periods and the Special FAR Option. (See

Revised Pricing Sheet Attachment 2 and Schedule B in Amendment 0002).

Section C: Description/specifications/statement of work.

(3) 1.1 Introduction (Page 12)

States: “The MCM shall be responsible for pre-conveyance and post-conveyance activities associated with claims, acquisition and disposition of FHA Single Family insured assets

(Conveyed Properties, Claims Without Conveyance Title (CWCOT) and Home Equity

Conversion Mortgage (HECM)).”

a. Currently the MCM only processes HECM Over-allowable requests via HERMIT, does this mean the MCM is now responsible for all pre-conveyance and post-conveyance activities on all HECM cases?

ANSWER: No, in accordance with (IAW) Section 5.1.2 Over-Allowable

Requests, the contractor is only responsible for HECM Over-Allowables.

1. Do HECM Pre-conveyance activities include: Surcharge Requests, Extension of Time Requests, Occupied Conveyance Requests, and all associated appeals?

ANSWER: No, in accordance with (IAW) Section 5.1.2 Over-

Allowable Requests, for HECMs, with regard to pre- and post-conveyance activities, the contractor is only responsible for Over-

Allowables.

2. Is there any additional HECM preconveyance activities other than what is listed in the previous bullet point?

Allowable Requests, the contractor is only responsible for HECM

Over-Allowables.

3. Do HECM Post-conveyance activities include:

Claim reviews, Title Audits, reconveyance/reacquisition activities, and all associated appeals?

Allowable Requests, contractor is only responsible for HECM Over-

Allowables.

4. Are there any additional HECM post conveyance activities other than what is listed in the previous bullet point?

Allowable Requests, the contractor is only responsible for HECM

Over-Allowables.

(4) 1.2 Background 9 (Page 12)a. In addition to the yearly acquisition totals, please provide the most current data for the yearly number of conveyances, surchargeable damage, over allowable and extension of time requests?

ANSWER: Fiscal year to date:

• 12,068 Conveyances

• 16,009 CWCOTs

• Over-allowables 106,999

• Extensions of Time 18,558

• Surchargeables 1,622

• HECM Over-allowables 58,233

b. How many personnel does the current contractor have dedicated to performing the work on this PWS?

ANSWER: This information is proprietary in nature and cannot be released to the general public. Each offeror is responsible for determining the personnel needed to perform the required PWS tasks in accordance with the PWS.

c. In light of the current COVID-19 pandemic, are there any material changes to the contract that the government foresees?

ANSWER: Currently, there are no changes that we foresee.

(5) 1.2 Background (Page 13)

a. Does the volume of requests processed include appeal volume?

If not, what is the appeals volume associated with this work?

▪ Example: if mortgagees appeal at a rate of 20% * 445,542 requested processed = could equal ~89,000 additional requests.

ANSWER: Yes, appeal volume is included.

b. Does the volume of administrative remedies (13,269) include appeals? (Appears to be demands for reimbursement only)

ANSWER: No.

c. Does HUD anticipate a decrease in Conveyance and CWCOT volume, as far as mortgagee submission, due to COVID-19? Estimates provided are based on historical data, thus the Agency has no way to predict future increases or decreases.

d. Additional extension requests?

e. Additional Over-allowable requests?

f. Does HUD anticipate a significant drop in CWCOT and Conveyance volume due to COVID-

19, due to default loss mitigation, loan modifications, and forbearances guidelines being loosened or becoming more lenient over the next 2-3 years?

g. There has been a continuous drop in Conveyances and CWCOTs since FY16 from 83,766 to

18,422 in FY20 YTD. How does HUD anticipate a contractor to price assuming these volumes continue this downward trend?

ANSWER: Historical data has been included in the solicitation. However, proposal cost and estimating is a business decision.

h. Will HUD add Over-allowables as a payment trigger as Conveyances and CWCOTs are decreasing and unreliable by themselves for estimating purposes? ANSWER: No. Assuming a significant drop in CWCOT and Conveyance volume due to COIVD-19, due to default loss mitigation, loan modifications, and forbearances guidelines being loosened or becoming more lenient, what other payment trigger will HUD consider adding to ensure the contractor does not fail due to insufficient revenue?

ANSWER: This a business decision to right-size your company’s total costs and other related inputs required to be profitable and serve the customer based on revenue being generated.

i. Does HUD anticipate any updates to HUD regulations (MLs or Handbook) that would affect

Conveyance and CWCOT volumes?

ANSWER: If any updates are made to current HUD policies, procedures and regulations related to the MCM contract, they will be provided to the contractor.

(6) 1.3 Constraints (Page 14)

a. If post conveyance activities are completed on properties that conveyed while a prior contractor was acting as the MCM, are these activities reimbursable?

ANSWER: The question is not clear; if the post conveyance activities were not previously completed then it can be submitted on the transitional CLIN of the contract.

b. Shall we base our estimates on the current Mortgagee Letters and Mortgagee handbooks?

ANSWER: Estimates have been provided in the Performance Work Statement

(PWS) for all offerors.

(7) 1.3 Constraints (Page 14)

a. Will there be a backlog of work activities?

ANSWER: It is not clear what is meant by backlog activities. However, there may be transitional work that was not completed by the incumbent vendor that would need to be completed by the awardee.

b. Will all backlogs be completed?

ANSWER: It is not clear what is meant by the questions. However, there may be transitional work that was not completed by the incumbent vendor that would need to be completed by the awardee.

c. If post conveyance activities are completed on properties that conveyed while a prior contractor was acting as the MCM, are these activities reimbursable?

ANSWER: Transitional claims that were not completed and require post-claim services will be paid through CLIN 3 of the initial/base period or the corresponding

CLIN of the applicable Option Period.

d. Is there still a backlog of activities due to the previous prior incumbent, MCB, that is outstanding from the 2010-2015 timeframe?

ANSWER: This question does not appear to be applicable to the solicitation.

However transitional post-claim services will be paid through CLIN 3 of the awarded contract.

e. Will the contractor be responsible for any trailing or transition work the incumbent contractor doesn’t complete? i.e. preconveyance and post conveyance activities outlined within this PWS.

ANSWER: Yes, this is included under CLIN 3.

f. If the incumbent contractor was previously compensated for the conveyance or

CWCOT fee on a case and new or transition work remains to be completed on said case, is the successor contractor expected to process those activities?

ANSWER: The awardee shall complete all tasks outlined in the PWS included transitional cases.

1. If no, will that effect HUD evaluation of the contractor or be accounted for in

HUD’s QASP?

ANSWER: See answer above.

g. If the successor contractor is assigned work via HUD’s system of record, yet it is determined the incumbent contractor was paid the Conveyance or CWCOT fee, will the successor contractor have to process those activities or task?

ANSWER: The awardee will be required to complete work on transition cases for uncompleted work.

h. If yes, will the successor contractor be reimbursed for performing those services?

ANSWER: Cases assigned to the prior contractor that require post-claim services will be paid through CLIN 3.

(8) 1.4 Description of Services (Page 16)

a. Deed/Document Execution

1. Does HUD know the volume associated with Deed and Document Execution?

ANSWER: Approximately 2,500 per year

2. Are Notary Services Required?

ANSWER: Yes

b. Does HUD consider notary costs reimbursable or is the Contractor expected to bear these expenses?

ANSWER: No. Notary costs are not reimbursable costs, they should be included in

Contract Line Item (CLIN) pricing. These costs vary depending on the locality rules in each state. The MCM should be familiar with the deed and document execution rules of each state and familiar with when a deed must be notarized and filed in the public record.

c. Approximately 20% of states require attorneys to prepare and execute deeds. Does

HUD consider the attorney fees in each applicable jurisdiction associated with Deed Execution reimbursable or is the Contractor expected to bear these expenses?

ANSWER: No. Attorney’s fees are not reimbursable costs. These are indirect costs that should be factored into CLIN pricing and the costs of doing business which varies by contractor.

d. There are additional expenses involved with deed preparation, execution, and recording such as: recording fees, transfer taxes and fees, document prep fees, legal fees, and other miscellaneous expenses and fees.

1. Does HUD consider these additional expenses reimbursable or is the

Contractor expected to bear these expenses?

ANSWER: No. Additional expenses involved with deed preparation, execution, and recording such as recording fees, transfer taxes and fees, document prep fees, legal fees, and other miscellaneous expenses and fees are not reimbursable. These are indirect costs that should be factored into CLIN pricing and the costs of doing business which varies by contractor.

2. There are also associated mail costs/expenses that accompany deed and document execution, does HUD know the expenses as it relates to mail costs?

3. Does HUD consider mail expenses reimbursable or is the Contractor expected to bear these expenses?

ANSWER: No. Mail expenses are not reimbursable costs.

(9) 1.7 Place of Performance (pg. 16)

a. Is there a geographical requirement for the location of the contractor’s office?

ANSWER: No

(10) 1.9 Special Qualifications (Page 17)

a. When will details regarding special qualification requirements be released?

ANSWER: This paragraph is Reserved. See Amendment 0002 of the solicitation.

(11) 1.10 Post Award/Kickoff Conference (Page 17)

a. How will this be attended by awardee in light of COVID-19 pandemic? Will in-person attendance be required?

ANSWER: HUD’s Post Award conferences are generally accomplished via teleconference, video teleconference (VTC) or in person. In light of the COVID-19 pandemic the Post Award Conference will be performed via teleconference or other virtual conference means; under these conditions in-person attendance shall not be required.

(12) 1.11 Status Meetings (Page 17)

a. The RFP states that status meetings will be held with the Government and at no cost to the Government. The RFP also states that no contractor travel is anticipated (1.12

Contractor Travel). There is also no Travel CLIN.

1. May we assume that no status meetings will require the Contractor to travel to meet with the Government?

ANSWER: No. Travel may be required during performance of the contract at contractor’s expense; however, currently due to COVID-19 HUD does not anticipate any travel at this time.

(13) 1.12 – Contractor Travel (Page 17)

a. Can you clarify why no contractor travel is anticipated?

Answer: The place of performance is at the Contractors site. All meetings and training may be accomplished remotely.

(14) 1.13 Transition In (Page 17)

a. What is the SCA Wage Determination for the contract?

ANSWER: The SCA Wage Determination which contains the minimum wages that are based on the primary work site is attached. (See Amendment 0002).

(15) 1.13 Transition In (Page 17)

a. Please explain “the Contractor shall have sufficient personnel on board during the 90 calendar days Transition-In period”? Is the expectation that the entire staff be place for 90 Days prior to the start of tasks?

ANSWER: Yes(16) 1.13 Transition In (Page 17) and Section M Evaluation Factors for

Award (Page 129)

Page 17 “The Contractor shall, upon the Contracting Officer's written notice, furnish

Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 90 calendar days Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized.”

Page 129 Evaluation Criteria under Technical Approach “Whether the project schedule demonstrates realistic timeframes for performing the PWS tasks and associated deliverables identified herein.” Minimum Requirement to be Determined Acceptable “At a minimum the Offeror demonstrates realistic timeframes for performing the PWS tasks and associated deliverables.”

a. As it does not appear that the solicitation requires submission of a Draft Transition-In

Plan, how does the Government intend to assess the project schedule and realistic transition timeframes to ensure the bidder will meet the 90-day Transition In requirement?

ANSWER: Section “M” for evaluation factors lists the minimal requirements to be determined successful for each evaluation factor. The Government shall evaluate offerors responses to each factor. Transitioning-In is not one of the evaluation factors;

it is a separate entity utilized during the startup period of the contract. The question being asked is not clear.

b. Please advise on how HUD will work around delays in gaining access to these systems that are outside of contractor control. Often credentialing will take longer than 90 days which is the transition in period, will HUD make an exception for work expected to be completed in this timeframe?

ANSWER: Delays will be assessed on a case by case basis to determine if they are beyond the contactor’s control, based on timely submission of information required for individuals needing access to HUD’s system and their ability to pass a background check.

(17) 3.1 Government Services (Page 26)

a. Given the current pandemic and the need for social distancing will this training be in person or by teleconference/webinar? If the training will be in person, where will this training take place?

ANSWER: Training will be conducted via webinar/conference call.

(18) 3.5 Quality Assurance QA (Page 27)

a. Will HUD release the QASP so the offeror can properly create a QCP for submission?

o This PWS only describes timeframe requirements and doesn’t outline any quality of review/accuracy standards or requirements.

ANSWER: Yes, No. The Quality Assurance Surveillance Plan (QASP) will not be provided.The Performance Requirements Summary (PRS) is provided in the solicitation.

b. There is no metric assigned to measure quality and that Contractor has performed in accordance with performance standards. How will HUD be measuring the quality of work being produced by the Contractor?

ANSWER: Quality will be assessed in accordance with (IAW) the PRS, however this does not mean that we do not reserve the right to conduct compliance and surveillance of any other contractual requirements of this acquisition.

c. If there is no Quality standard HUD may lose millions from the HUD fund. As a result, will

HUD specify a 90% quality standard for all major work areas?

ANSWER: No, the standards are as stated in HUD’s Acceptable Quality Levels

(AQLs) for performance, however, this does not mean we do not reserve the right to conduct compliance and surveillance of any other contractual requirements of this acquisition.

(19) 4.1 Facilities (Page 27)

• a. Is there a requirement for the contract to be performed in any specific geographical area? ANSWER: No. In light of COVID-19 pandemic, will contractor be allowed to have employees and key personnel perform work remotely when necessary?

ANSWER: This is a business decision, since contractors are required to comply with all local, city and state ordinances regarding COVID-19. However, vendors are required to comply with all contract terms and conditions and shall notify the COR of any deviations due to local, city and state ordinances.

(20) 4.5 Contractor Personnel (Page 28)

a. “The Contractor shall provide a Contract and Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the

Contract/Project Manager…. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance and direction from the COR per HUDAR 2452.237-73”. Will the Government remove the redacted Technical Proposal Volume requirement so that the incumbent may include resumes of Key Personnel and details?

ANSWER: No. The Technical Proposal (Part I, Volume I) (Redacted version) shall not contain any names (such as Offeror names, company letterhead, personnel names, previous contract awards, projects or product names, or Personally Identifiable Information (PII)).

The redacted and Unredacted Key Personnel resumes’ shall be included with each copy of the Technical proposal.

b. Are there any qualifications a Contract/Alternate Contract and Project/Alternate Project manager must meet?

ANSWER: Please refer to HUDAR 2452.237-70 KEY PERSONNEL (FEB 2006) and Section 4.5 Contractor Personnel.

c. How will HUD determine if key personnel have sufficient technical knowledge of requirements?

ANSWER: Key personnel resumes’ shall be reviewed as part of the Technical

Proposal and maintained on file in the event Key personnel are substituted or replaced.

d. Do key personnel count towards total staffing levels used to determine the 20% which must be a subcontractor if not small business?

ANSWER: Although this question is not clear, Key Personnel are employees of the

Contractor and are not included in the sub-contractor’s percentages.

e. The Government requests two Key Personnel: 1) a Contract/Project Manager, and 2) an

Alternate Contract/Project Manager. No instructions are given for the provision of resumes for these Key Personnel. Does the Government want these resumes added as an attachment to the unredacted version of the Technical Proposal?

ANSWER: Yes, Key Personnel resumes’ shall be included in the Technical

Proposal, Redacted version of Volume I and also Unredacted version of Volume I.

f. Should Key Personnel resumes be included in the redacted volume?

Answer: Yes, see answer above. Key Personnel resumes’ shall be included in the

Technical Proposal, Redacted version of Volume I and also Unredacted version of

Volume I.

g. If Key Personnel are to be included in the redacted volume, how should bidders provide details and previous work experience?

ANSWER: Offerors may structure resumes’ as they like in accordance with the solicitation, however the redacted version shall not contain any names (such as

Offeror names, company letterhead, personnel names, previous contract awards, projects or product names, or Personally Identifiable Information (PII)).

(21) 4.5 Contractor Personnel (Page 28)

a. Can the Contract and Project Manager be the same person?

ANSWER: No. The Contractor shall provide a Contract Manager and Project

Manager who shall be responsible for the performance of work and an alternate shall be designated to act in their absence.

(22) 4.6 Identification of Contractor Employees (Page 28)

a. Will all contractor employees receive government issued PIV cards after credentialing has been completed?

1. Will the Contractor have to absorb all badging and identification expenses?

ANSWER: Yes, the Contractor is responsible for absorbing these costs.

(23) 4.7.1 Quality Control Plan (Page 29)

“The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the

Government during reviews conducted in accordance with its Quality Assurance Surveillance

Plan (QASP)… The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP.”

a. As Quality of task performance has a high level of impact to overall contract performance, can the Government please provide the QASP so that bidders may understand the full Quality requirements (distinct from Timeliness requirements listed as AQLs)?

ANSWER: No, the Quality Assurance Surveillance Plan (QASP) will not be provided, however the PRS is included in the solicitation.

1. Would the Government please provide the QASP or Quality requirements so that bidders may understand the level of effort to meet these requirements for each specific task?

ANSWER: The Quality Requirements are identified in the PRS. The QASO will not be provided.

b. How should the bidder address identifying and recruiting qualified personnel without specific

Quality requirements detailed in the QASP?

ANSWER: Contractors are responsible for recruiting qualified personnel, the

QASP is not a tool that is used for this. The QASP will not be provided.

c. Will the existing 90% Quality requirement remain in effect for this solicitation?

ANSWER: No. The AQLs (Acceptable Quality Levels) are identified in the solicitation.

d. Is there additional performance threshold that are not outlined in this PWS?

Such as Quality/Accuracy of Contractor Reviews? Not just timeliness, as outlined in this

PWS.

ANSWER: No. The Performance Requirement Summary (PRS) measures the

MCM contractor’s performance. The QCP outlines how the contractor will assure performance of all requirements in the PWS and how the contractor will maintain quality and take corrective actions.

(24) 4.7.1 Quality Control Plan (Page 29)

a. When is the QC plan to be submitted for the government’s review?

ANSWER: Please review the Quality Control Section of the solicitation. The preliminary QC Plan is due with the submitted proposal. The successful offeror will submit a final plan within 30 days after contract award.

(25) 5.1.1 Extension of Time Requests (Page 29)

a. Does the day the request is submitted count as the first business day?

b. Does the day the request is submitted in HUDs system of record start the clock to complete the review?

c. HECM cases are not referenced here but in introduction are referenced as an MCM responsibility.

ANSWER: No, in accordance with (IAW) Section 5.1.2 Over-Allowable Requests, for

HECMs, the contractor is only responsible for Over-Allowables.

d. Will the MCM be responsible for HECM extensions and their appeals?

ANSWER: No, in accordance with (IAW) Section 5.1.2 Over-Allowable

Requests, the contractor is only responsible for HECM Over-Allowables.

e. Is there a quality expectation to match the timeliness aspect of the Performance Standards?

ANSWER: The standards are as stated in HUD’s Acceptable Quality Levels

(AQLs) for performance; however, this does not mean we do not reserve the right to conduct compliance and surveillance of any other contractual requirements of this

(26) 5.1.1.1 Appeal of Extension Denial (Page 30)

c. States: “the mortgagee has five (5) business days from the date of denial to submit a request for reconsideration to the contractor.” This currently isn’t supported by HUD regulation (ML or

Handbook), will HUD regulation be updated to support this clause?

ANSWER: At present this is HUD’s requirement which is required by the PWS.

There are currently no changes or updates to the current regulations. As changes become available, they will be provided to the contractor.

d. (As the mortgagees can currently submit appeals at their leisure long after the aforementioned timeframe.) If an appeal comes in after the 5 business day time period and are not required per this solicitation, will these cases be counted against the Standard/AQL?

ANSWER: No, however, the requirement/standard to process Appeals of Extension

Denials within 3 business days of receipt still apply.

e. Will processing of “late” submissions be required?

f. HECM cases are not referenced here but in introduction are referenced as an MCM responsibility. Will the MCM be responsible for HECM extensions and their appeals?

ANSWER: No, in accordance with (IAW) Section 5.1.2 Over-Allowable Requests, for HECMS, with regard to pre- and post-conveyance activities, the contractor is only responsible for Over-Allowables.

g. Is there a quality expectation to match the timeliness aspect of the Performance Standards?

ANSWER: The standards are as stated in HUD’s Acceptable Quality Levels (AQLs) for performance; however, this does not mean we do not reserve the right to conduct compliance and surveillance of any other contractual requirements of this

(27) 5.1.2 Over-Allowable Requests (Page 30)

c. Is there a quality expectation to match the timeliness aspect of the Performance Standards?

(28) 5.1.2.1 Appeal of Over-Allowable (Page 31)

a. States: “the mortgagee has five (5) business days from the date of denial to submit a request for reconsideration to the contractor.” This currently isn’t supported by HUD regulation (ML or

Handbook), will HUD regulation be updated to support this clause?

ANSWER: This is a requirement in the solicitation; any updates will be issued via contract modification and provided to the contractor.

b. (As the mortgagees can currently submit appeals at their leisure long after the aforementioned timeframe.) If an appeal comes in after the 5 business day time period and are not required per this solicitation, will these cases be counted against the Standard/AQL?

ANSWER: No, however, the requirement/standard to process Appeals of Over-

Allowables within 3 business days of receipt still apply.

c. Will processing of “late” submissions be required?

d. Is there a quality expectation to match the timeliness aspect of the Performance Standards?

(29) 5.1.3 Occupied Conveyance (Page 31)

States: “The Contractor shall request that the FSM conduct an inspection within forty-eight

(48) hours of the Contractors request to determine whether the property is habitable, free of lead-based paint hazards, or free of evidence that a hazardous substance was stored for one year or more, or known to have been released, or disposed of at the property.”

a. Will the Contractor be held liable for any delays caused by the FSM not completing inspections timely, that prevent the Contractors review of the Occupied Conveyance request within 30 calendar days? (Currently the FSM’s do not complete the inspection within 48hours, which reduces the Contractors timeframe to review.)

ANSWER: Any delays will be evaluated on a case-by-case basis to determine if the delay was within the MCM’s control.

1. Are mailing costs associated with occupied conveyance activities reimbursable?

ANSWER: No. Mailing costs are an overhead cost of doing business and should be included as an element of the overall cost.

2. Is there a quality expectation to match the timeliness aspect of the Performance standards?

(AQLs) for performance; however, this does not mean we do not reserve the right to conduct compliance and surveillance of any other contractual requirements of this acquisition.

b. Does HUD believe that Covid-19 will result in an increase in occupied conveyance requests?

ANSWER: Estimates have been provided to offerors in the solicitation, however, HUD has no way to predict the impact on occupied conveyances.

(30) 5.1.3 Occupied Conveyance (Page 31)

a. Is the FSM contractually bound to a timeframe to complete the occupied conveyance inspection once requested from the MCM?

ANSWER: Yes, per the FSM contract, no later than two (2) days after the MCM’s request to have an inspection performed, the (FSM) Contractor shall schedule an inspection to determine habitability. The inspection shall be completed as soon as possible but no later than 7 days after the MCM’s request.

b. How many certified letters were sent to occupants during the previous contract term

(2015-present)?

ANSWER: Approximately 12,000 letters

(31) 5.1.4 Surchargeable Damage (Page 32)

a. On cases where the cost exceeds $2500 and escalation to the COR is required, as long as the contractor escalates to the COR for review within 5 business days, is the request considered reviewed?

ANSWER: Yes. The review must be completed within 5 business days and sent to the COR for approval or denial based on the write-up/recommendation provided by the contractor.

b. The requests remain in a pending status within HUD system of record, until the COR decision is rendered. Does the day the request is submitted count as the first business day?

c. Does the day the request is submitted in HUDs system of record start the clock to complete the review?

d. Are Surchargeable Damage Appeals no longer being reviewed by the MCM

Contractor, so are these decisions considered final once a decision is rendered?

ANSWER: The contractor is responsible for reviewing all Surchargeable Damage

Appeal Requests valued at $2,500.00 or less within five (5) business days following receipt of the Surchargeable damages request. If the repair estimate exceeds

$2,500.00 the Contractor shall submit a written recommendation to the COR, who will make the decision to either approve or deny the request.

e. HECM cases are not referenced here but in introduction are referenced as an MCM responsibility. Will the MCM be responsible for HECM Surchargeable damage reviews?

for HECMs, the contractor is only responsible for Over-Allowables.

f. Is there a quality expectation to match the timeliness aspect of the Performance

Standards?

(AQLs) for performance; however, this does not mean we do not reserve the right to conduct compliance and surveillance of any other contractual requirements of this acquisition.

g. If surcharge appeals are to be reviewed, what are the Performance Standards, both in timeliness and quality?

(32) 5.2.1 Part A Claim Review (Page 33)

a. Currently the MCM can review Soft/Hard edits, will the contractor be given the appropriate A43C access to review fatal claim suspension codes? (Without this access the

Contractor will not be able to notify the mortgagee of the appropriate corrective action required.)

b. HUD Property Inspection Reports (HPIRs) are required to complete Part A Claim review, if the FSM doesn’t provide the HPIR timely, will the Contractor review timeframe start once the completed HPIR is provided?

ANSWER: Any delays will be evaluated by the COR on a case-by-case basis to determine if the delay was within the MCM’s control.

c. Will the contractor be held liable for FSM delays?

ANSWER: Any delays will be evaluated by the COR on a case-by-case basis to determine if the delay was within the MCM’s control.

d. HECM cases are not referenced here but in introduction are referenced as an MCM responsibility. Will the MCM be responsible for HECM Claim reviews?

for HECMs for pre- and post-conveyance activities, the contractor is only responsible for Over-Allowables.

e. Is there a quality expectation to match the timeliness aspect of the Performance

(33) Occupied Properties (Page 34)

a. Does the following statement mean that the FSM makes the final determination to reconvey an occupied property or does the FSM make a recommendation to the MCM to reconvey: ”If a Mortgagee conveys a property occupied without prior Contractor approval or contrary to regulatory requirements, the FSM, on their initial inspection, when the property comes into the REO inventory, will determine if occupied the

Contractor shall initiate re-conveyance”.

ANSWER: The MCM contractor shall review and process the reconveyance and appeal process based on the FSM’s recommendation.

(34) 5.2.2 Parts B and C Claim Review (Page 36)

a. HECM cases are not referenced here but in introduction are referenced as an MCM

(35) 5.2.3 Part D Claim Review (Page 38)

a. HECM cases are not referenced here but in introduction are referenced as an MCM

b. Is there a quality expectation to match the timeliness aspect of the Performance

(36) 5.2.3 Part D Claim Review (Page 38)

a. Is there a quality expectation to match the timeliness aspect of the Performance

(37) 5.2.4 CWCOT Claim Review (Page 38)

a. Please define the administrative remedy for each as its not outlined in the administrative remedy portion of the PWS o Appraisal administrative remedy o Commissioner adjusted Fair Market Value (CAFMV) administrative remedy o Bid Amount administrative remedy o Auction Fee administrative remedy o Surchargeable Damage administrative remedy

ANSWER: Currently, there is not an outline for the administrative remedy;

once the exact remedy has been defined it will be outlined in the PWS.

b. What is the expected volume or ratio for CWCOT administrative remedy requests to the mortgagees?

ANSWER: The expected volume is based on the quality of the submissions provided by the mortgagee.

c. Is there a quality expectation to match the timeliness aspect of the Performance

(38) 5.2.5 Title Review (Page 39)

b. Does the day the request is submitted in HUDs system of record start the clock to complete the review?

c. How many times can a mortgagee submit corrective title evidence after initial contractor denial?

ANSWER: Currently, there is not a limit.

d. HECM cases are not referenced here but in introduction are referenced as an MCM responsibility. Will the MCM be responsible for HECM Title reviews?

e. Is there a quality expectation to match the timeliness aspect of the Performance

(39) 5.2.6 Administrative Remedies – Requests for Reimbursements to HUD (Page 40)

b. Does the day the request is submitted in HUDs system of record start the clock to complete the review? (in relation to 10 business days to review reacquisition package)

c. HECM cases are not referenced here but in introduction are referenced as an MCM responsibility. Will the MCM be responsible for Administrative Remedy activities on

HECM properties?

the contractor is only responsible for HECM Over-Allowables.

d. This solicitation makes no reference to demand requests submitted by HUDs Field

Service Managers (FSMs). If requests come in from HUDs FSMs, can these be disregarded, or will a review of these requests be required?

ANSWER: The contractor must review and process the requests.

e. If requests for demands by HUD/FSM are expected to be reviewed, what are the

Performance Standards, both timeliness and quality?

ANSWER: The Contractor must approve or deny the request within five (5)

Business Days.

f. Is there a quality expectation to match the timeliness aspect of the Performance

Standards for the reconveyance and reacquisition activities?

(40) 5.3 Deed/Document Execution (Page 42)

a. There are also associated mail costs/expenses that accompany deed and document execution, does HUD know the expenses as it relates to mail costs?

ANSWER: No, mailing costs are an overhead cost of doing business and should be included as an element of the overall cost.

1. Does HUD consider mail expenses reimbursable or is the MCM expected to bare these expenses?

ANSWER: No, mailing costs are an overhead cost of doing business and should be include as an element of the overall cost.

b. States: “Requests that are outside the Contractors delegation of authority should be referred to the COR.” Will the COR provide a list or examples or define the type of

Deed/Document execution requests that are outside of the contractor’s delegation of authority?

ANSWER: During the course of contract performance, should a contractor receive a request that he feels is out of his delegation of authority, it should be referred to the CO and COR for resolution.

c. The language in this section refers to Deeds prematurely or improperly deeded to

HUD, what about deed executions that are required or necessary to complete reconveyance from HUD back to the mortgagee?

ANSWER: This is the contractor’s responsibility to review and if it is outside of their authority, it would be submitted to the COR or the COR designee. Deeds prematurely or improperly deeded to HUD are covered in Section 5.3 However occasionally the lender will deed a VA loan or loan other than a FHA loan to HUD by mistake and these would be forwarded to HUD to address.

d. Deliverable: A001 P260 Report - There currently isn’t a P260 report for deed or document execution within P260, will this functionality be implemented so the deliverable can be met by the contractor?

ANSWER: If there are updates that impact your report it shall be communicated to the CO and COR in writing. The COR does not have oversight authority of the

P260 contract. Required data fixes will be submitted to the CO and HUD system of

Record COR, if needed.

responsibility. Will the MCM be responsible for deed/document execution on HECM properties?

for HECMs for pre- and post-conveyance activities the contractor is only

f. Are members of the Document Execution, including those listed on the Delegation of

Authority, department required to have credentialing required to access HUD systems, if these systems are not used by these employees?

g. If there are direct costs associated with deed execution (mailing, recording fees, etc.), are these reimbursable?

ANSWER: No. Mailing costs are an overhead cost of doing business and should be included as an element of the overall cost.

h. There are other incidental costs associated with deed execution, including but not limited to any subscription services to some county assessor websites and payment to become a notary. Are these costs reimbursable as well?

(41) 5.5 Customer Service (Page 43)

a. States: “The contractor shall conduct a minimum of 10 conference calls per month with FHA Lenders/Servicers and Housing Agencies to discuss trends, issues, best practices, case specifics and to prevent unnecessary mortgage loan claim loss.” Will the

COR designate to the contractor which lenders/servicers to conduct these calls with?

ANSWER: No. The contractor is required to demonstrate how they will meet this requirement per the PWS.

b. Will HUD have any involvement with conference calls, such as participation or scheduling?

ANSWER: No, HUD will not have any involvement unless there is an occasional dispute.

c. States: “The contractor shall publish an industry newsletter annually. The newsletter will be reviewed and approved by the Contracting Officer Representative (COR), prior to release. The newsletter should cover the following topics: trends, best practices, industry updates, HUD regulation updates, acceptable submissions/documentation and process change notifications.” Will the COR provide a template or additional directive as formatting, size requirements, content etc.? Or is this solely up to the contractor?

ANSWER: Yes. The COR will provide a template. Prior to issuing the newsletter to the public, the contractor must receive the COR’s approval.

d. Is the contractor expected to attend national industry conference and working groups?

ANSWER: No, this is not a HUD requirement.

1. Are the costs associated with attending conferences and working groups reimbursable?

ANSWER: No, if the contractor chooses to participate, it will be done at the contractor’s expense.

2. Does the Contractor have to obtain COR approval to attend industry conference and working groups?

ANSWER: Yes, but only if the contractor will be speaking on behalf of the

HUD MCM contract or HUD MCM policies. If you are attending as an audience participant in a non-speaking role, you do not need prior COR approval.

responsibility. Will the MCM be responsible for customer service on HECM properties?

for HECMs for pre- and post-conveyance activities the contractor is only responsible for Over-allowables.

f. Do all members of the Customer Service department require government credentialing, even if HUD systems are not accessed by those employees?

ANSWER: Yes, the Government requires a credentialing/vetting process for personnel who anticipate working on federal contracts. If no access to HUD systems is needed by an employee, the employee usually does not undergo a Personal

Identification Verification (PIV) process required to access all HUD systems.

g. Will the contractor be provided an industry mailing list to distribute the newsletter?

ANSWER: The contractor will have access to use the email mailing list within the

HUD system of record to distribute the newsletter.

1. Or is there an expectation that the contractor builds and maintains an industry mailing list?

ANSWER: The contractor may build and maintain their own mailing list, however, will also have access to use the email mailing list within the HUD system of record to distribute the newsletter.

(42) 5.7 Reporting (Page 44)

a. Will the COR provide instructions on how to obtain all the data contained within the

“Directors Report” referenced in this section?

ANSWER: No, reporting is part of the PWS. This is the contractor’s responsibility.

The attached Directors Report is a sample, however, should the MCM contractor choose a different format, it shall be approved by the COR.

b. Will the COR be requesting 5+ AD HOC reports monthly?

ANSWER: Yes. In accordance with (IAW) the PWS Section 5.7, Reporting, the

Contractor shall submit up to five (5) Ad Hoc reports on a monthly basis.

c. If the COR doesn’t request any AD HOC reports in a given month, does the contractor still need to provide 5 AD HOC reports to meet the deliverable required in this section?

d. Will the MCM be required to follow the same format as the sample of the Directors

Report provided?

ANSWER: No, however the contractor shall be familiar with how to obtain data for the Directors Report. The attached Directors Report is a sample, however, should the MCM contractor choose a different format, it shall be approved by the COR.

e. Will request only come from COR, or will other HUD personnel be able to requests reporting?

ANSWER: Yes, report must be provided to the COR IAW the PWS, however other authorized personnel may request the report through the COR.

f. If an Ad Hoc request is sent at the end of the month but would not be due until the first of the next month, will that report be counted towards the total requests under the first or second month?

ANSWER: It would count for the month in which it was requested.

g. Is there a format that must be adhered to on the Ad Hoc reports similar to the

Directors Report?

ANSWER: No, there is no format that must be adhered to. The Contractor may generate his own format, however it must be approved by the COR.

(43) 6.1 Quality Control Plan (Page 45)

a. The elements requested in the Quality Control Plan (QCP) extend beyond a traditional

QCP and into Quality Assurance Processes. Is the client looking for both a QCP responding to the QASP and a Quality Assurance Plan (QAP) which addresses programmatic processes?

ANSWER: The QCP outlines how the contractor will assure performance of all requirements in the PWS and how the contractor will maintain quality and take corrective actions.

(44) 7 Performance Requirements Summary (Pages 46)

a. Will HUDs QASP account for delays caused by FSM/AM non-performance or transition periods?

ANSWER: The Performance Requirement Summary (PRS) only measures the

MCM contractor’s performance. The QCP outlines how the contractor will assure performance of all requirements in the PWS and how the contractor will maintain quality and take corrective actions. Any delays will be evaluated by the COR on a case-by-case basis to determine if the delay was within the MCM’s control.

1. Will this be taken into consideration when evaluating or score the contractor?

ANSWER: The contractor is responsible for all the requirements of the

PWS as outlined, however any delays will be evaluated by the COR on a case-by-case basis to determine if the delay was within the MCM’s control.

b. Will the contractor be responsible for any backlog created by AM/FSM non-performance or transition periods?

ANSWER: Currently, AM/FSMs are not experiencing backlogs.

(45) 8 Related Documents (Pages 46-49)

a. The AQLs mentioned in the Performance Requirement Summary (PRS) chart relate only to timeliness, is there established AQLs for accuracy standards? (Quality of

Reviews)

1. The previously established MCM AQLs for accuracy standards were set at

90%:

Is it remaining at 90% or increasing to 95%?

ANSWER: The AQLs are as stated in the PWS.

b. Is there more than one disincentive/remedy for 5.1.1? (Extension of Time Requests)

1% deduction for not meeting 100% of requests processed within 5 business days

ANSWER: (Duplicate corrected in Amendment 0002): 100% must be completed within 5 days. We will accept 95% being completed within 5 days before a 1% disincentive occurs.

1. And an additional 1% deduction for not meeting 95% of requests processed within 5 business days?

completed within 5 days. We will accept 95% being completed within

5 days before a 1% disincentive occurs.

c. Is there more than one disincentive /remedy for 5.1.2? (Over-allowable Requests)

d. Is there more than one disincentive /remedy for 5.1.4? (Surchargeable Damage

Requests)

e. Is there more than one disincentive /remedy for 5.2.1? (Part A Claim Review)

ANSWER: Yes, for item (a) 100% must be completed within 30 days. We will accept 95% being completed within 30 days before a

1% disincentive occurs. For item (b) 100% must be completed within 5 days. We will accept 95% being completed within 5 days before a 1% disincentive occurs.

f. Does the 1% disincentive /remedy deduction apply to a monthly invoice based on a quarterly measurement?

ANSWER: It applies monthly based on a monthly measurement.

g. What if timeliness AQLs are met but the contractor fails to meet another standard established in the QASP HUD is going to implement, does an additional incentive/remedy deduction apply?

ANSWER: Disincentives will be applied as indicated in the PRS, however performance on every aspect of the PWS shall be measured, evaluated and documented.

h. Does the 1% disincentive /remedy deduction apply to any standard set forth in HUD’s

QASP, that is not outlined in this PWS?

ANSWER: Disincentives will be applied as indicated in the PRS, however performance on every aspect of the PWS shall be measured, evaluated and documented.

(46) Key Personnel (Page 86)

a. Please confirm there are four Key Positions, Contract Manager and Alternate, Project

Manager and Alternate.

Answer: Yes, 4.3 Contractor Personnel. The Contractor shall designate a Contract and Project Manager who shall be responsible for the performance of work and will serve as the main point of contact for the GTR. Alternates shall also be designated to act in the absence of the Contract or Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered “Key

Personnel” by the Government and shall be listed as such in accordance with

HUDAR 2452.237-70, “Key Personnel”.

(47) Part II - Contract Clauses - Section I: Contract Clauses

HUDAR 2552.239-70 (April 2019) b(1) (Page 88) and d(3-5), and e(1-4) (Page 89)

a. HUD credentialing (PIV Process) is a lengthy process and at times takes up to 6 months. How will HUD address this, if a majority of the contractor’s staff is required to go through the PIV’ing process?

beyond the contactor’s control based on timely submission of information required

b. How will the contractor perform work, if a majority of the staff doesn’t have access to

HUD systems in order to process requests and meet deliverables?

beyond the contactor’s control based on timely submission of information required

1. If submission backlogs build due to lack of access to HUD systems, is expected that the contractor clear this work in addition to new work that is due?

ANSWER: The contractor is required to perform work on transition cases.

If there are any delays attributed to access to HUD’s systems, they shall be evaluated on a case-by case basis.

(48) Part L.1 HUDAR 2452.209-70 Potential Organizational Conflicts Of Interest (FEB

2000) (Page 115)

Section (F) reads: If the Contracting Officer determines that a potential conflict can be avoided, effectively mitigated, or otherwise resolved through the inclusion of a special contract clause, the terms of the clause will be subject to negotiation.

a. Question:

If an Offeror is currently…