86614921R00003 Underwriting Support Section 184.pdf

SEE ADDENDUMIS CHECKED

CODE 18a. PAYMENT WILL BE MADE BY

CODE

FACILITYCODE

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

OFFEROR

HUD-NFWP

1670 BROADWAY 23RD FLOOR

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

US DEPARTMENT OF HUD

HUD-P CODE 16. ADMINISTERED BYCODE

X

X

X

522310

SIZE STANDARD:

100.00 % FOR:SET ASIDE:UNRESTRICTED ORHUD-NFWP

RFPIFB

10. THIS ACQUISITION ISCODE

RFQ

14. METHOD OF SOLICITATION

13b. RATING

NAICS:

SMALL BUSINESS

05/03/2021 1300 ET

04/12/2021

DEBRA MCCRAW

(No collect calls)

INFORMATION CALL:

FOR SOLICITATION 8. OFFER DUE DATE/LOCAL TIMEb. TELEPHONE NUMBER a. NAME

4. ORDER NUMBER3. AWARD/ 6. SOLICITATION

86614921R00003

5. SOLICITATION NUMBER

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 1. REQUISITION NUMBER PAGE OF

1 51 OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

DENVER CO 80202-4801

TELEPHONE NO.

17a. CONTRACTOR/

WASHINGTON DC 20410

451 7TH STREET SW

HUD-P

15. DELIVER TO

DENVER CO 80202-4801

1670 BROADWAY 23RD FLOOR

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

9. ISSUED BY

7.

2. CONTRACT NO.

EFFECTIVE DATE

$8.00

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

ISSUE DATE

DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

11.

SEE SCHEDULE

12. DISCOUNT TERMS

THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13a.

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

8(A)

US DEPARTMENT OF HUD

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

EDWOSB

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

Period of Performance: 06/01/2021 to 05/31/2022

0001 Provide underwriting support of Section 184 and 184(a) closed loan packages. The number of loan packages assigned to the contractor in a five-day work week will not exceed 150 files.

Base Year - 12 months from date of award.

0002 Provide underwriting support of Section 184 and Continued ...

(Use Reverse and/or Attach Additional Sheets as Necessary)

HEREIN, IS ACCEPTED AS TO ITEMS:

XX

DATED

ADRIAN C. BLACKMAN

. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ARE

ARE

31c. DATE SIGNED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print)

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED.

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

OFFER

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

ARE NOT ATTACHED.

ARE NOT ATTACHED.

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

30b. NAME AND TITLE OF SIGNER (Type or print)

30a. SIGNATURE OF OFFEROR/CONTRACTOR

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

25. ACCOUNTING AND APPROPRIATION DATA

29. AWARD OF CONTRACT:

REF.

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32c. DATE 32b. SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

40. PAID BY39. S/R VOUCHER NUMBER38. S/R ACCOUNT NUMBER

37. CHECK NUMBER

FINALPARTIAL

36. PAYMENT

FINALPARTIAL

35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER33. SHIP NUMBER

COMPLETE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

42d. TOTAL CONTAINERS42c. DATE REC'D (YY/MM/DD)

42b. RECEIVED AT (Location)

42a. RECEIVED BY (Print)

41c. DATE41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

STANDARD FORM 1449 (REV. 2/2012) BACK

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

184(a) closed loan packages. The number of loan packages assigned to the contractor in a five-day work week will not exceed 150 files.

Option Year I - 12-month Period of Performance

(Option Line Item)

Period of Performance: 06/01/2022 to 05/31/2023

0003 Provide underwriting support of Section 184 and

184(a) closed loan packages. The number of loan packages assigned to the contractor in a five-day work week will not exceed 150 files.

Option Year II - 12-month Period of Performance

(Option Line Item)

Period of Performance: 06/01/2023 to 05/31/2024

0004 Provide underwriting support of Section 184 and

184(a) closed loan packages. The number of loan packages assigned to the contractor in a five-day work week will not exceed 150 files.

Option Year III - 12-month Period of Performance

(Option Line Item)

Period of Performance: 06/01/2024 to 05/31/2025

0005 Provide underwriting support of Section 184 and

184(a) closed loan packages. The number of loan packages assigned to the contractor in a five-day

Continued ...

32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

51 2 of

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

3 51

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

(A) (B) (C) (D) (E) (F)

86614921R00003 work week will not exceed 150 files.

Option Year IV - 12-month Period of Performance

(Option Line Item)

Period of Performance: 06/01/2025 to 05/31/2026

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

Performance Work Statement

Section 184 Underwriting Support

4/01/2021

Version 2.0

Performance Work Statement (PWS)

184 Underwriting Support

Vision Statement

To provide underwriting support of Section 184 and Section 184a closed loan packages that will be submitted for loan guarantee certificates in support of the Office of Loan Guarantee in Washington, DC.

1 GENERAL INFORMATION

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD), Office of Native American Programs (ONAP) requires support services for its Section 184 and 184A, Loan Guarantee Program (going forward referred to as Section 184).

1.2 Background

The Section 184 Indian Housing Loan Guarantee program is one of the most effective minority homeownership initiatives in America. It addresses the unique needs of Native Americans, thus making it possible to achieve homeownership with market-rate financing.

By providing the financing vehicle to serve American Indians and Alaska Natives (AIAN) in the communities where they live, the annual dollar volume increased from $46 million in FY 2003 to $580 million in FY 2018. The strength of the Section 184 program has been an underwriting process that relies on manual underwriting determinations. The number of files submitted to the HUD for underwriting review has increased from 300 in FY 2003 to more than 3,100 in FY 2018, Each loan that closes must receive a second review by a Loan Guarantee Specialist prior to the issuance of a loan guarantee certificate.

The demand for the Section 184 program is outpacing HUD’s ability to staff experienced loan guarantee specialists to perform the post-closing reviews of loan guarantee certificate submittal packages. The loan guarantees made under this program guarantee repayment of 100 percent of the unpaid principal and interest due on the obligations guaranteed. Funding for this program provides loan guarantees for Native American families, Indian tribes, and Tribally Designated Housing Entities (TDHEs) to purchase, construct, refinance, and/or rehabilitate single-family homes on trust or restricted land and in tribal areas of operation.

The Section 184 loan guarantee has made possible private financing of home mortgages by private financial institutions based on individual borrower’s qualifications, regardless of land status.

Along with the legal status of tribal land, cultural issues, the severe lack of infrastructure, financial literacy, seasonal and traditional income, and lack of credit are all issues which are common to Indian Country. Therefore, an extensive background as a government underwriter with experience working with underserved communities and non-traditional income and credit histories is needed for the Section 184 loan program to be a successful in expanding homeownership in Indian Country. In addition, mortgage lending on Hawaiian Homelands experience similar problems to those found in Indian Country.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Including:

Section 184 of the Housing and Community Development Act of 1992 Real Estate Settlement Procedures Act (RESPA) and regulations Federal Records and Retention Acts and Regulations Freedom of Information Act (FOIA) Laws and Regulations Protection of Personally Identifiable Information (PII)

1. The Contractor shall maintain compliance with all current and future Federal IT security requirements. The Contractor shall:

A. Maintain IT security and comply with all terms and conditions of the contract throughout the term of the contract with respect to all data and information technology requirements.

B. Use, maintain, enhance, develop and upgrade all information technology software and system documentation under this Contract in accordance with Federal Laws, best practices, and regulations. This includes, but is not limited to:

i. Federal Information Security Management Act - https://www.dhs.gov/fisma

ii. The Privacy Act - https://www.archives.gov/about/laws/privacy-act-

1974.html

iii. The E-Government Act - https://www.archives.gov/about/laws/egov-actsection-207.html;

iv. The Clinger-Cohen Act - https://www.fismacenter.com/Clinger%20Cohen.pdf

v. Government Paper Reduction Act - http://www.hhs.gov/ocio/policy/collection/;

vi. Office of Management and Budget Circulars A-130, and A-I23 -https://www.whitehouse.gov/omb/circulars_default; vii. Office of Management and Budget Memorandum 17-12 https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/ 2017/m-17-12_0.pdf;

viii. Department of Housing and Urban Development regulations, Handbooks and Policies - http://www.HUD.gov;

ix. GAO directives; and

x. Federal Financial Manager Integrity Act (FFMIA)

C. Maintain Security Assessment and Authorization (SA&A) standards in accordance with guidance published by NIST. An independent SA&A will be performed by Housing and Urban Development (HUD) during the period of performance of this contract. The Contractor shall complete the SA&A within [time period consistent with contract terms, e.g.

three weeks, six months, etc.] after the award of the contract and again at the expiration of the SA&A and to include any revisions or updates.

D. Follow HUD’s Project Planning and Management (PPM) Life Cycle and industry best practices in the analysis, design, development, testing and implementation of proposed new systems and/or the enhancement to existing systems. This includes prohibiting live data from being used in any environment other than Production and Disaster Recovery (DR) environments. Specifically, no live data should be used in development, testing or staging environments.

E. Review and update system documentation to ensure accuracy, compliance and completeness. Reviews and revisions must be completed and delivered to HUD quarterly.

F. The Contractor will prepare its security plan as part of its demonstration that it meets the requirements for SA&A per the applicable requirements from HUD, OMB, NIST, etc., which will require the preparation of several related documents, including but not limited to:

i. NIST FIPS 199/200 Security Categorization Analysis;

ii. NIST SP-800 Security Controls Self-Assessment;

iii. Application and network venerability scans;

iv. Business Impact Assessment;

v. Privacy Impact Assessment;

vi. Create System Security Plan, Risk Assessment, Technical Architecture, COOP and Contingency Plans, Quality Control Plan, ST&E Plan and other relevant SA&A supporting documentation for each new application;

vii. Security Assessment Tests (formerly ST&E Testing);

viii. Security Assessment Reports (formerly ST&E Report);

ix. POA&M; and

x. Accreditation Documentation

G. Each mixed or financial system that the contractor manages, develops, modifies, enhances, releases and/or upgrades will be assessed under the Federal Information System Controls Audit Manual (FISCAM) methodology that include control families for both General Computer and Business Process Application controls:

i. General Controls:

1. Security Management

2. Access Controls

3. Configuration Management

4. Segregation of Duties

5. Contingency Planning

ii. Business Process Application Controls:

1. Application Security

2. Business Process Controls

3. Interfaces

4. Data Management

H. Each mixed or financial system that the contractor manages, develops, modifies, enhances, releases and/or upgrades must comply with identified OMB A-123 Appendix A "Management's Responsibility for Internal Control", and Appendix D “Compliance with the Federal Financial Management Improvement Act of l996” key controls; and the Federal Information Security Management Act of 2002 (FISMA) to include:

i. National Institute of Standards and Technology Special Publication (SP) 800-53, Security and Privacy Controls for Federal Information Systems and Organizations, Revision 5 (NIST SP 800-53, Rev. 5);

ii. NIST SP 800-18 Rev. 5 - Guide for Developing Security Plans for Federal Information Systems;

iii. NIST SP 800-23 - Guidelines to Federal Organizations on Security Assurance and Acquisition/Use of Tested/Evaluated Products;

iv. NIST SP 800-30 Rev. 5 - Guide for Conducting Risk Assessments;

v. NIST SP 800-34 Rev. 5 - Contingency Planning Guide for Federal Information Systems;

vi. NIST SP 800-37 Rev. 5 - Guide for Applying the Risk Management Framework to Federal Information Systems;

vii. NIST SP 800-47 - Security Guide for Interconnecting Information Technology Systems

viii. NIST SP 800-53A Rev. 5 - Guide for Assessing the Security Controls in Federal Information Systems and Organizations, Building Effective Security Assessment Plans;

ix. NIST SP 800-59 - Guideline for Identifying an Information System as a National Security System;

x. NIST SP 800-60 Rev. 5 - Guide for Mapping Types of Information and Information Systems to Security Categories;

xi. NIST SP 800-84 - Guide to Test, Training, and Exercise Programs for IT Plans and Capabilities;

xii. Federal Information Processing Standards (FIPS) 199/200 – Security Categorization Analysis; and

xiii. FIPS 191 - Guideline for the Analysis of Local Area Network Security

2. HUD’s Office of the Chief Information Officer (OCIO) will have responsibility for maintaining the FISCAM-based mapping of security controls that will be required in order to maintain compliance with FISMA, OMB A-123, and HUD security requirements.

3. The Contractor shall support and provide system security to ensure availability, confidentiality, and integrity of the HUD data applications (e.g. maintaining access control, user identification, password protection and authentication, confidentiality of customer profiles and traffic, physical and personnel security required under this PWS).

Provide SA&A support, including potential off cycle or unanticipated SA&A support, over the life of the contract.

4. The HUD System Security Plans (Risk Assessment, Incidence Response Plan and IT Contingency Plan) shall be reviewed and presented to HUD’s Chief Information Security Officer for approval.

5. The Contractor shall maintain compliance with OMB Memorandum 17-12 (Preparing for and Responding to a Breach of Personally Identifiable Information), which requires contractors and sub-contractors (at any tier) to:

A. Cooperate with and exchange information with agency officials, as determined necessary by the agency, in order to effectively report and manage a suspected or confirmed breach.

B. Properly encrypt PII in accordance with OMB Circular A-130 and other applicable policies and to comply with any agency-specific policies for protecting

PII;

C. Provide and participate in mandatory training on how to identify and report a breach;

D. Report a suspected or confirmed breach in any medium or form, including paper, oral, and electronic, as soon as possible and without unreasonable delay, consistent with the agency's incident management policy and US-CERT notification guidelines;

E. Maintain capabilities to determine what Federal information was or could have been accessed and by whom, construct a timeline of user activity, determine methods and techniques used to access Federal information, and identify the initial attack vector;

F. Allow for an inspection, investigation, forensic analysis, and any other action necessary to ensure compliance with OMB M 17-12, the agency's breach response plan, and to assist with responding to a breach;

G. Identify roles and responsibilities, in accordance with OMB M 17-12 and the agency's breach response plan; and, H. Explain that a report of a breach shall not, by itself, be interpreted as evidence that the contractor or its subcontractor (at any tier) failed to provide adequate safeguards for PII.

6. The Contractor shall provide and present a Security Self-Assessment Report to HUD’s Chief Information Security Officer on an annual basis, due no later than August 31st of each calendar year.

7. Plans of Action and Milestones (POA&Ms) shall be reviewed and updated on a [timeframe that is consistent with contract terms, e.g. quarterly, annual, bi-monthly, etc.] basis and presented to HUD’s Chief Information Security Officer for review and approval.

8. Failure to adhere to the above NIST requirements could result in penalties, to include a contract performance stop-work order until compliance can be demonstrated. Disregard of these NIST requirements could also lead to other criminal, civil, administrative, or contract penalties, including, but not limited to:

A. Breach of Contract damages B. False Claims Act damages C. Liquidated Damages D. Termination for Default E. Termination for Convenience F. Poor Past Performance G. Suspension/debarment

1.4 Description of Services

HUD seeks a Contractor who shall provide a pre-endorsement review of the closed files to ensure that the Section 184 loans are closed in compliance with the approved terms and conditions noted on the Office of Loan Guarantee (OLG) Firm Commitment and Mortgage Credit Analysis Worksheet (MCAW); ensure compliance with the RESPA regulations, and ensure compliance with the Section 184 specific program requirements.

HUD will allow for a 60-day transition period for the Contractor to learn the Section 184 program. The Section 184 program is somewhat similar to FHA’s programs. Section 184/184A Regulations, Notices and Guidance includes:

Section 184 Statute - https://www.govinfo.gov/app/details/USCODE-2011-title12/USCODE-2011-title12-chap13-subchapII-sec1715z-13a

Section 184 Program Description and Guidance (Dear Lender Letters) – o https://www.hud.gov/program_offices/public_indian_housing/ih/homeownership/ o https://www.hud.gov/program_offices/public_indian_housing/ih/homeownership/

184/guidelines o https://www.hud.gov/program_offices/public_indian_housing/ih/homeownership/

184/lenders

Section 184A Program Description and Guidance (Dear Lender Letters) -https://www.hud.gov/program_offices/public_indian_housing/ih/codetalk/onap/program1 84A

Section 184 Regulations o https://www.govinfo.gov/app/details/CFR-2016-title24-vol4/CFR-2016-title24-vol4-part1005 o https://www.govinfo.gov/content/pkg/CFR-2016-title24-vol4/pdf/CFR-2016-title24-vol4-part1005.pdf

Section 184 A Regulations - https://www.govinfo.gov/content/pkg/CFR-2011-title24-vol4/pdf/CFR-2011-title24-vol4-part1007.pdf https://www.hud.gov/program_offices/public_indian_housing/ih/homeownership/184/guidelin es

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services or give the perception of personal services. It the Contractor feels any action constitutes, or are perceived to constitute personal services, it shall be the Contractor’s responsibility to notify the Contracting Officer immediately. These services shall not be used to perform work of a policy, decision making or management nature, i.e., inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The Period of Performance will be for one 12 month base year of 12 months and four 12-month option years.

1.7 Place of Performance

The services to be performed under this contract will be off-site.

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:00am - 4:30pm EST, Monday thru Friday except federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. Weekly hours shall not exceed a forty-hour work week and a typical workday will be 8 hours each day Monday through Friday. The Government reserves the right to change hours of operation or restrict Contractor access. Work outside these daily hours is prohibited without Contracting Officer approval. Government agencies will not be available during scheduled holidays, inclement weather, weekends, or after duty hours.

The Contractor must at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the Contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

The Contractor shall provide a workforce that has the following experiences and qualifications:

o A minimum of three years’ experience working as an approved Federal Housing

Administration (FHA), Direct Endorsement government mortgage loan underwriter, including having a DE number.

o Three years’ experience analyzing maximum mortgage amount calculations on Mortgage Credit Analysis Worksheet (MCAW) Form, and determining credit worthiness.

o Three years’ experience in assessing and determining the accuracy, consistency, and compliance of the closed loan files to the approved terms and conditions, and the program requirements.

o Experience in mortgage loan closing, post-closing, reviewing legal instruments such as Notes, Mortgages, Riders, Title Policies, Closing Disclosure Statements, and other documents.

o Knowledge of appraisal review practices o Experience with Consumer Financial Protection Bureau mortgage lending compliance regulations (e.g, RESPA Regulations, etc.).

1.10 Post-Award/Kickoff Conference

The Contractor shall attend any Post-Award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post-Award Conference with the Contractor within 10 business days after contract award. The CO will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The CO, COR and other Government personnel, as appropriate may meet periodically with the Contractor to also review the Contractor performance, requirement status, etc. At these meetings, the CO will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor shall apprise the Government of problems or concerns, if any. Appropriate action shall be taken to resolve outstanding issues.

These meetings shall be at no additional cost to the Government. Post-Award Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

N/A

1.13 Transition In

The Contractor shall, upon the CO's written notice, furnish Transition-In services as required. The Contractor shall have enough personnel on board during the Transition-In period to ensure a smooth transition. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized.

Definition of Transition-In period, the Contractor shall become familiar with the requirements to commence full performance of services by the end of the contract Transition-In period. Transition-In will include acceptance and use of files and data from OLG; and becoming proficient in Section 184 Statue, Regulations and Guidance.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have enough personnel on board, at no additional cost to the Government, during the sixty (60) day transition out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor or the Government during the transition out period, prior to completion of contractual performance at no additional cost to the government.

The incumbent Contractor shall aid the successor in the development of plans, procedures and methods for the assumption of all on-going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor is achieved by the end of the new contract transition in period. The Contractor will assure that all files (digital or paper) and government furnished equipment are transferred to the successor or to HUD designated personnel.

2 DEFINITIONS AND ACRONYMS

2.1 Definitions

Business/Work Days - Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the week

Contractor - A Supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officers Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Defective Service – A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable - Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes and reports.

Government Furnished Property (GFP) – Means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes Contractor-acquired property if the Contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract

Performance Requirements Summary (PRS) – A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard – The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance-based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Quality Assurance (QA) – Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements. A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

Quality Control (QC) – All necessary measures taken by the Contractor to assure that the quality of a product of service shall meet contract requirements.

Service Contract – A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Work Day -The number of hours per day the Contractor provides services in accordance with the contract.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AlAN - American Indians and Alaska Natives

AQL - Acceptable Quality Level

CD – Closing Disclosure (Initial or Final)

CLIN - Contract Line Item Number

CFO or OCFO - Office of the Chief Financial Officer of HUD

CFR - Code of Federal Regulations

CHUMS - Computerized Homes Underwriting Management System

CIO or OCIO - Office of the Chief Information Officer of HUD

CO - Contracting Officer

COR – Contracting Officers Representative

CPARS - Contractor Performance Assessment Reporting System

CPO - Office of the Chief Procurement Officer of HUD

DG – Direct Guarantee

EST - Eastern Standard Time (US)

ETC - Estimate to Completion

FAR - Federal Acquisition Regulations

GAO - US General Accounting Office

GFE - Good Faith Estimate

GFP - Government Furnish Property

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

HUDAR - HUD Acquisition Regulation

IG or OIG - Inspector General (Office of)

IT - Information Technology

LGC - Loan Guarantee Certificate

MCAW - Mortgage Credit Analysis Worksheet

NASHDA - Native American Housing Assistance and Self Determination Act of 1996

NLT - No Later Than

OLG - Office of Loan Guarantee

OMB - Office of Management and Budget

ONAP – Office of Native American Programs

PIH – Office of Public and Indian Housing

PL - Public Law

PM - Project Manager

POC - Point of Contact

PWS - Performance Work Statement

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

RESPA - Real Estate Settlement Procedures Act

SF - Standard Form

SME – Subject Matter Expert

TBD - To be determined

TDHE - Tribally-Designated Housing Entity

TIL - Truth In Lending

URLA - Uniform Residential Loan Application

USC - United States Code

3 GOVERNMENT-FURNISHED PROPERTY AND SERVICES

The Contractor shall ensure accurate control and accountability of all Government- Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

The Government will provide access thru a virtual private network (VPN) to HUD computer and/or systems as necessary to complete the work.

3.2 Facilities

The Government will not provide office space, as Contractor will be working off-site.

3.3 Equipment

A government computer will be issued to the contractors’ staff for the purposes of using the VPN. The government computer will remain on HUD permises. The Contractor’s staff shall use a non-government computer for this work, except when accessing a HUD system, then they will use VPN to the government computer to access HUD systems.

3.4 Materials

Copies of required materials may be provided to the Contractor in hard copy or soft copy.

All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

4 CONTRACTOR-FURNISHED ITEMS AND SERVICES

The Contractor shall provide all personnel, equipment, computer equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to provide services as defined in this Performance Work Statement except for those items specified as government furnished property and services.

4.1 Facilities

The Contractor shall furnish the facilities needed to meet the requirements under this PWS.

4.2 Equipment

The Contractor shall furnish any additional equipment needed to meet the requirements under this PWS.

4.3 Material

The Contractor shall furnish any additional materials needed to meet the requirements under this PWS.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as Points of Contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

US Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the

COR.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, Key Personnel. The Contract/Project Manager and alternate shall have full authority to act on all contract matters relating to the daily operations of this contract.

Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to receive assignment, guidance and direction from the COR, POC, PM and CO per HUDAR 2452.237-73, Conduct of Work and Technical Guidance and shall be allocated enough hours to the requirement to ensure successful performance. These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.6 Identification of Contractor Employees

When conversing with Government personnel during business meetings, over the telephone or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractor/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their workspace area with their name and company affiliation, or as a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete Quality Control Program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP).

The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 SPECIFIC TASKS

5.1 Underwriting - Endorsement Standard Review. The Contractor shall provide underwriting expertise to review closed loan files for the purpose of recommending issuance of guarantee certificates. This includes credit and appraisal review for Trust Land loans to individuals. The Contractor shall become proficient with Section 184/184A Statue, Regulations and Guidance within 60 days of start date.

The purpose is to ensure that the Section 184 loans are closed in compliance with the approved terms and conditions noted on the OLG Firm Commitment and Mortgage Credit Analysis Worksheet(MCAW); ensure compliance with the RESPA regulations, and ensure compliance with the Section 184 specific program requirements. The Contractor shall perform the review to ensure the accuracy, consistency, and completeness of the closed loan information and the program required documentation as per Attachment 1.

The Contractor shall, using the Review Steps outlined in Attachment 1, complete the Endorsement Standard Review Checklist (Attachment 2) for each file, and document any departures in policy in Attachment 2 and notify the SME and COR.

The number of Section 184 loan files to be assigned to the Contractor in a five-day work week will not exceed 125 files. The Contractor shall complete the review of the loan file NLT than three business days after receipt of the file. A report of files reviewed is due weekly and shall be sent to the COR with a copy to the SME. Where the loan file does not meet threshold requirements (Steps 1, 12 and 31) in Attachment 1, the Contractor shall return the file to SME, and it will not count towards the 125 completed review files.

Performance Standards

a. Standard: Review is compliant with Federal laws and regulations

AQL: No Deviation

b. Standard: 125 files are reviewed weekly

AQL: 1 day deviation

Deliverable A001 Endorsement Standard Review Checklist (Attachment 2)

5.2 Weekly Underwriting Report. The Contractor shall deliver a Weekly Underwriting Report, which cumulates week to week (Attachment 3). The report shall contain a narrative that depicts the actual number of files reviewed and completed, the number of files with incomplete information, and corrective action taken. The Contractor shall also provide a spreadsheet containing the Section 184 Case Number, Cohort Number, Borrower’s Last Name, Property Address, Loan Purpose, Date Review Completed, the Name of the Contractor’s reviewer, and recommendation for endorsement status.

Performance Standards

a. STD: Report is delivered by 10am eastern Monday of the following week

AQL: 1 business day deviation

Deliverable A002 Weekly Underwriting Report (Attachment 3)

5.3 Incomplete Files. If the Contractor determines the file to be incomplete and thus HUD is unable to properly issue a loan guarantee certificate (i.e., legal instruments are not properly documented, signed/dated or certified true copy), or the Contractor finds inconsistency of loan information, (RESPA violation, program requirements are not met, loan conditions are not fully satisfied or cleared, incomplete or inaccurate title policy, etc.), the Contractor shall email the lender with a copy to the SME and COR of the issues with the loan file and ask for the approprriate information. OLG will complete title review. Once complete and documented in Attachment 2, the file is returned to the SME.

Deliverable A003 Email file incomplete or inconsistent loan information to lenders

5.4 Loan Guarantee Fee. The Contractor shall confirm, using documents in the file, that the loan guarantee fee was paid and within the set time period.

5.5 File Completion. Once the file has been reviewed and is complete, the Contractor shall enter all required data from the loan file to issue the Loan Guarantee Certificate (LGC) into the OLG Sytem (System), but will NOT issue the LGC. ONAP is currently using a version of CHUMS and will be migrating to another system in the future.

Performance Standards

a. Standard: Files are entered weekly into the system

AQL: 1 day deviation

Deliverable A004 125 are files are entered into the System

5.6 Final Report. The Contractor shall deliver the draft final report to the COR and CO NLT than 30 business days prior to contract expiration. The final report shall include a summary of all activities undertaken. The final report shall be a cumulative of all the weekly reports. The report shall provide an analysis and evaluation of the review process and recommendations for improving the review process. The CO or COR, upon receiving the final report, will reply NLT than 5 business days as to any additional information or requests needed for documentation purposes. The final report shall be updated as necessary to reflect the changes. The final report shall be delivered to the COR and CO NLT 5 business days after receipt of the comments. The Contractor shall provide all documentation required before its obligations under this Statement of Work are considered completed.

Performance Standards

a) STD: Report is delivered NLT than 30 business days prior to contract expiration AQL: 2 business days deviation

Deliverables A005 Final Report (Draft)

A006 Final Report (Final)

5.7 Quality Control Plan. The Contractor shall deliver the Quality Control Plan (QCP) to the COR, Program Office Official and the CO, via an email attachment, NLT 10 days after the Post Award Conference. The COR and the SME will review the draft QCP; and the COR and SME will provide the Contractor with comments, via email, NLT 10 days after receipt of the draft QCP. The Contractor shall deliver the final QCP via email to the COR, SME, and the CO NLT 5 days after receipt of the comments. The QCP shall be updated upon COR and/or SME request to reflect any necessary changes.

Performance Standards

a) STD: Report is delivered on time AQL: 2 business days deviation

Deliverables

A007 Quality Control Plan (Draft) A008 Quality Control Plan (Final)

6 DELIVERABLES

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Number Name Frequency Quantity Govt

Response Time

A001 Endorsement Standard Review Checklist (Attachment 2)

Weekly 125 5 business days

A002 Weekly Underwriting Report (Attachment 3) Weekly (SME NLT 10 am easternn Monday of the following week)

1 10 business days

A003 Email file incomplete or inconsistent loan information to lenders

N/A N/A N/A

A004 125 are files are entered into the System Weekly 125 NA

A005 Final Report (Draft) Once 1 5 business days

A006 Final Report (Final) Once 1 N/A

A007 Quality Control Plan (Draft) Once 1 5 business days

A008 Quality Control Plan (Final) Once 1 N/A

6.1 Acceptance Criteria

Acceptance of all deliverables shall be delivered in a draft format agreed upon by the Contractor and the Government. Upon review and acceptance by the Government, the Contractor shall address all Government comments and submit a final draft within five business days of Government notification.

7 PERFORMANCE REQUIREMENTS SUMMARY

The summary chart attached lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance.

While some contract requirements may not be listed in the chart, requirements not appearing on the PRS chart do not negate the Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether listed, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and PM may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract.

On a monthly basis, the COR will evaluate the quality of the product or services.

8 RELATED DOCUMENTS

The Contractor shall abide by all applicable regulations, publications, manuals, policies, Attachment 1, Section 184 Review Steps and procedures in the performance of this contract.

ATTACHMENT: Performance Requirement Summary (PRS)

Statements Standards/AQLs Incentive/Remedy

5.1 Underwriting

5.1 Underwriting -

Endorsement Standard Review

a) STD: Reviews are compliant with Federal laws and regulations AQL: No deviation

b) STD: 125 files are reviewed weekly AQL: 1 business day deviation

a) $100 deduction from the associated CLIN for each 3 files not meeting the standard

b) $300 deduction from the associated CLIN for each business day late from the AQL

5.2 Weekly Underwriting

Report.

a) STD: Report is delivered by 10am eastern Monday of the following week AQL: 1 business day deviation

a) $300 deduction from the associated CLIN for each business day submitted late in accordinance with the standard

5.5 File Completion a) STD: 125 files are

entered weekly into the System AQL: 1 business day deviation

a) $100 deduction from the associated CLIN for each 3 files not meeting the standard

5.6 Final Report (final). a) STD: Report is delivered

NLT than 30 business days prior to contract expiration AQL: 2 business days deviation

N/A

5.7 Quality Control Plan

(Final).

a) STD: Report is delivered on time AQL: 2 business days deviation

N/A

PART II – CONTINUATION OF SF1449

CONTRACT CLAUSES

52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address:

acquisition.gov/browse/index/far. HUDAR clauses may be accessed electronically at http://hudatwork.hud.gov/po/arc/regs/hudar/toc.cfm

Clause Title Date

52.203-3 GRATUITIES APR

52.203-12 LIMITATION ON PAYMENTS TO INFLUENCE CERTAIN

FEDERAL TRANSACTIONS

JUN

52.203-17 CONTRACTOR EMPLOYEE WHISTLEBLOWER RIGHTS

AND REQUIREMENT TO INFORM EMPLOYEES OF

WHISTLEBLOWER RIGHTS

JUN

52.204-25 PROHIBITION ON CONTRACTING FOR CERTAIN

TELECOMMUNICATIONS AND VIDEO SURVEILLANCE

SERVICES OR EQUIPMENT

AUG

52.212-4 CONTRACT TERMS AND CONDITIONS-COMMERCIAL

ITEMS

OCT

52.227-14 RIGHTS IN DATA - GENERAL MAY

52.227-17 RIGHTS IN DATA – SPECIAL WORKS DEC

52.242-15 STOP-WORK ORDER AUG

52.244-6 SUBCONTRACTS FOR COMMERCIAL ITEMS NOV

52.245-9 USE AND CHARGES APR

52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE

ORDERS-COMMERCIAL ITEMS (JAN 2021)

(a) The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

(1) 52.203-19, Prohibition on Requiring Certain Internal Confidentiality Agreements or Statements (JAN 2017) (section 743 of Division E, Title VII, of the Consolidated and Further Continuing Appropriations Act, 2015 (Pub. L. 113-235) and its successor provisions in subsequent appropriations acts (and as extended in continuing resolutions)).

(2) 52.204-23, Prohibition on Contracting for Hardware, Software, and Services Developed or Provided by Kaspersky Lab and Other Covered Entities (JUL 2018) (Section 1634 of Pub. L. 115-91).

(3) 52.204-25, Prohibition on Contracting for Certain Telecommunications and Video Surveillance Services or Equipment. (AUG 2020) (Section 889(a)(1)(A) of Pub. L. 115-232).

(4) 52.209-10, Prohibition on Contracting with Inverted Domestic Corporations (NOV 2015).

(5) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).

(6) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Public Laws 108-77 and 108-78 ( 19 U.S.C. 3805 note)).

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

_X (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (JUNE 2020), with Alternate I (OCT 1995) (41 U.S.C. 4704 and 10 U.S.C. 2402).

_X (2) 52.203-13, Contractor Code of Business Ethics and Conduct (JUN

2020) (41 U.S.C. 3509)).

__ (3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (JUN 2010) (Section 1553 of Pub. L. 111-5). (Applies to contracts funded by the American Recovery and Reinvestment Act of 2009.)

_X (4) 52.204-10,…