Amendment 86615622R00004 0001.pdf

(x)

86615622R00004 x x

1 copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted ; or (c) By separate letter or electronic communication which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE

RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR

OFFER. If by virtue of this amendment you desire to change an offer already submitted , such change may be made by letter or electronic communication, provided each letter or electronic communication makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

x

WASHINGTON DC 20410-1000

ROOM 5256

HUD-NPH

451 SEVENTH STREET SW

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

US DEPARTMENT OF HUD

08/01/20220001

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

12. ACCOUNTING AND APPROPRIATION DATA (If required) is not extended.is extended, Items 8 and 15, and returning

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended , by one of the following methods: (a) By completing

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

FACILITY CODE CODE

10B. DATED (SEE ITEM 13)

10A. MODIFICATION OF CONTRACT/ORDER NO.

9B. DATED (SEE ITEM 11)

9A. AMENDMENT OF SOLICITATION NO.

CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

7. ADMINISTERED BY (If other than Item 6)CODE 6. ISSUED BY

PAGE OF PAGES

4. REQUISITION/PURCHASE REQ. NO.3. EFFECTIVE DATE2. AMENDMENT/MODIFICATION NO. 5. PROJECT NO. (If applicable)

1. CONTRACT ID CODE

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

07/20/2022

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority) appropriation data, etc.) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

E. IMPORTANT: Contractor is not is required to sign this document and return __________________ copies to the issuing office.

ORDER NO. IN ITEM 10A.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

*SECTION 232 LOAN UNDERWRITING AND CLOSING SERVICES*

The purpose of this Amendment is as follows:

To provide the Government's response to industry questions.

- The Government's response to industry question is provided on page 3, herein.

- The response due date for this RFP is changed from Wednesday, 08/03/2022 at 14:00 PM ET to Wednesday, 08/10/2022 at 1400 PM ET to allow offerors time to review responses to industry questions and submit proposals.

- Part I - Technical Proposal in Proposal Format under Section 6.5.ADDENDUM TO FAR 52.212-1

Continued ...

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)15A. NAME AND TITLE OF SIGNER (Type or print)

15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 15B. CONTRACTOR/OFFEROR 16C. DATE SIGNED

(Signature of person authorized to sign) (Signature of Contracting Officer)

CHE U. LOGAN

STANDARD FORM 30 (REV. 11/2016)

Prescribed by GSA FAR (48 CFR) 53.243

Previous edition unusable

Except as provided herein, all terms and conditions of the document referenced in Item 9 A or 10A, as heretofore changed, remains unchanged and in full force and effect .

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

2 6

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

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

86615622R00004/0001

INSTRUCTIONS TO OFFEROR-- COMMERCIAL PRODUCTS AND

COMMERCIAL SERVICES is revised.

- Technical Approach in Proposal Content under

Section 6.5.ADDENDUM TO FAR 52.212-1 INSTRUCTIONS

TO OFFEROR-- COMMERCIAL PRODUCTS AND COMMERCIAL

SERVICES is revised.

- FACTOR I - TECHNICAL APPROACH under Section

7.2. EVALUATION FACTORS FOR BEST VALUE TRADE OFF

ACQUISITIONS is revised.

- Attachment 0001 is revised.

- Attachment 0002 Revised and Attachment 0003

Revised must be completed and submitted IAW with the Solicitation Instructions.

- Attachment 0004 - Sample Labor Category/Hours

Breakdown Worksheet without Rates is added and must be completed and submitted IAW with the

Solicitation Instructions.

- Attachment 0004 - Past Performance

Information_Chart is changed to Attachment 0005 -

Past Performance Information_Chart and must be submitted IAW with the Solicitation Instructions.

- Attachment 0005 - Past Performance Survey is changed to Attachment 0006 - Past Performance

Survey and must be submitted IAW with the

Solicitation Instructions.

- HUDAR 2452.237-79 Post Award Conference (May

2016) Alternate I (May 2016) is revised.

- Attachment 0005 - Past Performance

Information_Chart and Attachment 0006 - Past

Performance Survey shall be submitted as Volume

III (See Proposal Format under Section

6.5.ADDENDUM TO FAR 52.212-1 INSTRUCTIONS TO

OFFEROR-- COMMERCIAL PRODUCTS AND COMMERCIAL

SERVICES).

Amendment 0001 is attached to this announcement and the name of the file is: "Amendment

86615622R00004 0001"

Period of Performance: 09/29/2022 to 09/28/2027

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

Sponsored by GSA

FAR (48 CFR) 53.110

Solicitation Amendment 0001, 86615622R00004 Section 232 Loan Underwriting and Closing Services

No. Reference Questions Answers 1 General Who is the incumbent for this contract. Thanks in advance. The incumbent is Nuvologic Consulting Inc.

2 PWS, 5.1, 5.2, 5.3, 5.4

Could you expand on the 1% reduction in contractor cost for each day the deliverable is deemed late. Specifically:

1) Assuming that there are several loans in each task order, to which deliverable does this penalty apply (i.e., a single loan, or the set of all loans in a task order)?

2) Does the 1% penalty build on itself cumulatively?

3) How is contractor responsibility affected regarding the AQL standards if the basis for the delay was primarily associated with actions by the lender or by FHA?

4) For the sake of clarity, please confirm the math is correct, or otherwise illustrate. For example, for an invoice of $100,000, if a deliverable was a day late, the amount due the contractor would be $99,000 for that invoice. If the deliverable was three days late, the amount due the contractor would be $97,000. Would the contractor, once informed, need to decrement its next invoice by $1,000, or $3,000?

1. This is not a task order. If several tasks are assigned and because each task have their own specific LIN and deliverable, the 1% reduction will be applied to the LIN price (invoice) for that particular loan per day for each day the deliverable is deemed late. See Attachment 0001 Revised, page 22 of 25 to 24 of 25.

2. Yes, the 1% penalty build on itself cumulatively.

3. If the basis for the delay was primarily associated with actions by the lender or by FHA, the contractor will not be held to that AQL standards.

4. The example provided is correct. Once the contractor is informed of the 1% reduction, the contractor would decrease the invoice by the calculated amount of the penalty as illustrated.

Page 2, schedule of services

Pricing is based on the number of loans at each stage of the process each year, forming the basis for the contractor to establish its per unit price over a period of time. Please confirm that the actual number of underwritten, closed and monitored loans may vary, up or down, from the prescribed totals.

The actual number of underwritten, closed and monitored loans will not exceed the quantities in the prescribed totals in each LIN in the solicitation.

4 Page 2, schedule of services What is the established frequency of invoices allowed by the contractor? In the same context, explain what ‘Actuals’ mean? (Fixed Unit Rate - The Contractor shall invoice for actuals only)

The established frequency of invoices allowed by the contractor is for the Contractor to invoice based on the number of loans underwritten, closed, or monitored. ‘Actual’ means that the contractor shall invoice for the quantity or number of loans underwritten, closed, or monitored instead of the total amount of the LIN.

RFP, Page 2, schedule of services What is the basis of the amount billable in an invoice?

The basis of the amount billable in an invoice is the number of assigned loans underwritten, closed, or monitored.

RFP, Page 2, schedule of services

If the basis is the number of closed loans assigned in a task order, does the contractor need to wait until all the loans in that task order have been closed before billing for any loans worked on in that task order?

This is not a task order. The basis is the number of assigned loans underwritten, closed, or monitored. However, the contractor does not need to wait until all the loans assigned have been underwritten, closed, or monitored before billing for any loans completed.

7 PWS 1.13

It does not appear the contractor will be assigned any loans for at least the first 30 days after contract start, yet the pricing is based on the same projected total of loans for each stage as in the other years. Is the contractor expected to complete the loan cycle for those figures cited in the base year?

Transition-In tasks are described in Attachment 0001, Page 19 of 25, Section 5.5.1 Transition-In.

8 PWS 1.9

1.9 states that the Contractor’s underwriters are required to have at least one-year experience in FHA mortgage insurance underwriting, processing, and loan closing for healthcare programs in accordance with ORCF guidance.

As these are three different types of tasking please confirm that is meant to be that the underwriter needs one year of underwriting experience, the processor needs one year of processing experience and closer needs one year of closing experience with FHA healthcare programs in accordance with ORCF guidance?

Yes, that’s correct. Each position/title needs to possess one-year of the corresponding experience.

9 PWS, 5.5.2

No new loans will be assigned to the prior contractor from 60 days from the end of the contract. No new loans will be assigned to the successor contractor, if new, for 30 days after contract start. Is it correct to conclude that no new loans will be assigned to a contractor for 90 days

In accordance with revised Attachment 0001, Page 19 of 25 to 20 of 25, paragraph

5.5.2 Transition-Out, the Transition Out period starts 60 days prior to the expiration date of the last option year exercised. At this time, no loan assignments will be assigned to the contractor.

10 6.5, 6.3

6.5 calls for the RFP to be submitted via email. 6.3 states that Proposals shall be enclosed in sealed packaging and addressed to the office specified in the solicitation. Please confirm that the submission is to emailed and not mailed.

Proposals must be submitted via email as stated in the solicitation, Section

6.5. ADDENDUM TO FAR 52.212-1 INSTRUCTIONS TO OFFEROR--

COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES

11 6.3 Will the Government confirm there are no requirements for contractors to provide a transition in plan as part of the proposal response?

All volumes and attachments must be submitted IAW the Proposal Format under Section 6.5.ADDENDUM TO FAR 52.212-1 INSTRUCTIONS TO

OFFEROR-- COMMERCIAL PRODUCTS AND COMMERCIAL SERVICES.

12 Attachment 0001 PWS

Per the PWS, the contract is awarded as Firm Fixed Price. Can HUD explain the need for pricing by LCAT by hour by CLIN? It may be difficult to estimate the length of time it takes to review a loan as there are many factors and dependencies that impact the amount of time it takes to complete a loan review. (RFP+86615622R00004.pdf, Page 37)

The need for pricing by LCAT by hour by LIN is to understand the contractor's methodology in terms of how the contractor arrived at the total for each LIN.

13 Solicitation, Section 2.3

Per Form 1449 Section 2.3. CONTRACT TYPE: “A hybrid contract with Firm Fixed Price (FFP) and Fixed Unit Rate (FUR) line items is anticipated.” The contract appears to be FFP based on units of loans and does not appear to include ability to cover monthly fixed costs required to “maintain adequate workforce…for stability and continuity”. (1) Please explain what is meant by “hybrid contract” for pricing requirements.

“Hybrid contract” for pricing requirements means that this is a Firm Fixed Price contract with Fixed Unit Rate that the contractor shall invoice for actuals only.

14 Solicitation, Section 6.3

Please explain how to correctly provide “hybrid” pricing as Attachments 002 and 003 support standard FFP pricing. Labor Categories are utilized to derive rates for Firm Fixed Price contracts. Attachment 002 – Price Rate Schedule (titled “Contract Line Item Numbers (LINS) Details”) illustrates Quantity-level pricing parameters and Attachment 003 - Sample Price Breakdown with Rates illustrates Labor Category Rate and Hours.

To correctly provide “hybrid” pricing, the offeror(s) must complete and submit the revised Attachment 0002 and Attachment 0003 with their proposal.

Government's Responses to Industry Questions Solicitation #: 86615622R00004

Attachment 0001 PWS, Section 1.1

Per 1 General Information; 1.1 Introduction, “each loan application may not require all the specific tasks/scope of work identified in the PWS. For example, the Contractor may be assigned the loan underwriting/processing but not the closing support services.” (1) How should Contractor address cost differences between Closings which follow from contractor assigned Loan Underwriting and those that require additional work as stand-along Closings?

The solicitation provides different LINs for Loan Underwritings and Loan Closings.

Attachment 0001 PWS, Section 1.9

Per 1 General Information; 1.9 Special Qualifications, “Underwriters may obtain FHA underwriting experience working for supervised or unsupervised lenders with experience underwriting FHA loans.” How are qualifications measured? Does contractor have ability to recruit and train professionals to qualify as “unsupervised lenders”? Flexibility with qualifications is required as market conditions have greatly increased costs for recruiting, training and retaining experienced financial professionals for Section 232 loan underwriting and closing.

Qualifications are measured by the underwriters actual work experience. It is up to the contractor who wishes to recruit or train their own as they deem necessary and appropriate.

Solicitation Amendment 86615622R00004 0001

4.2. FAR CLAUSES INCORPORATED BY FULL TEXT

HUDAR 2452.237-79 Post Award Conference (May 2016) Alternate I (May 2016)

The conference will be conducted via [telephone, video conferencing]. The Contracting Officer or designee will provide the contractor with the date, time and contact information for the conference.

(End of Alternate I)

PART VI – REPRESENTATIONS AND INSTRUCTIONS TO OFFERORS

6.5. ADDENDUM TO FAR 52.212-1 INSTRUCTIONS TO OFFEROR-- COMMERCIAL PRODUCTS AND

COMMERCIAL SERVICES

2. Proposal Format: The proposals shall be submitted in accordance with the list below and each section shall be separately and clearly tabbed.

a. Part I - Technical Proposal shall contain:

• Tab (1) Cover Letter

1. Volume I - Technical Approach with Attachment 0004

2. Volume II - Management Plan

3. Volume III - Past Performance with Attachment 0005 and Attachment 0006.

5. Proposal Content: The Offeror shall submit the following:

PART I – TECHNICAL PROPOSAL

TECHNICAL APPROACH (Shall not exceed 30 pages)

• The offeror shall submit a technical approach that demonstrates logical and feasible methods for meeting the requirements (including any Section 508 requirements) described in Attachment 0001 - Performance Work

Statement Tasks 5.1 through 5.5 and meeting the performance objectives outlined within the solicitation.

• The offeror shall submit a project schedule that demonstrates a clear understanding of the required operations and HUD requirements with realistic timeframes for performing all tasks.

• If the offeror is proposing subcontractors, the offeror shall clearly identify what aspects of the work will be performed by the prime and what aspects of the work will be performed by each subcontractor in its technical approach. Use Attachment 0004 - Sample Labor Category/Hours Breakdown Worksheet without Rates.

• Labor mix and level of effort (labor categories and number of hours for each labor category). Offerors are cautioned not to include pricing in the labor mix/level of effort matrix submitted with the technical proposal.

Use Attachment 0004 - Sample Labor Category/Hours Breakdown Worksheet without Rates.

Solicitation Amendment 86615622R00004 0001

PART VII - BASIS OF AWARD/EVALUATION OF THE OFFER

7.2. EVALUATION FACTORS FOR BEST VALUE TRADE OFF ACQUISITIONS

FACTOR I - TECHNICAL APPROACH

• The government will evaluate the following regarding the proposed Technical Approach:

o How well the proposal demonstrates logical and feasible methods for meeting the requirements described in Performance Work Statement Tasks 5.1 through 5.5 and meeting the performance objectives outlined within the solicitation;

o How well the project schedule demonstrates:

▪ a clear understanding of the required operations and HUD requirements; and

▪ realistic timeframes for performing the PWS/SOW tasks and associated deliverables identified in the Instructions to Offerors.

• If the proposal includes subcontractors, how well the proposed approach delineates the technical responsibilities between the prime and the subcontractor(s).

• How well the proposed labor mix is based upon reasonable assumptions and is consistent with the requirements set forth in the Performance Work Statement and the proposed technical approach.

FACTOR III - PAST PERFORMANCE

In evaluating Past Performance, HUD will address four components – recency, relevancy, quality, and sufficiency. This factor’s primary emphasis is to assess the past performance of the proposed prime contractor

(or in the case of joint ventures or some other teaming arrangement, the primary member of the team) or that of substituted key personnel. However, if significant subcontracting/use of other teaming arrangements is anticipated, the past performance history of the proposed subcontractors/other team members must also be evaluated.

• All references will be first assessed for recency and HUD will consider only references performed within the three years immediately prior to submission of the proposal;

• Of those determined to be recent, HUD will assess the degree of similarity in scope, value and magnitude the past performance efforts submitted have to the solicitation requirements to determine relevancy. For this solicitation, magnitude is defined as providing a full range of loan underwriting and closing services.

• HUD will then assess relevant past performance efforts for quality;

• HUD’s overall assessment will be based upon sufficiency of high quality past performance and risk of nonperformance.

The final rating under this factor will encompass the totality of the information provided, including completeness, relevancy, and the depth, breadth, and quality of only relevant past performance for the proposed prime contractor and proposed subcontractor/team members or substituted key personnel. The final rating will range from Excellent (High Confidence) to Unsatisfactory (Low Confidence). Offerors that have addressed the factor and have no relevant past performance history by the prime, any subcontractors/team members, or substituted key personnel will be rated as Neutral (Neutral Confidence). Offerors that fail to address the factor will be determined to have not complied with the solicitation requirements and will receive the lowest possible rating.

HUD is not restricted to evaluating the information provided by the offeror or the surveys provided by references and may utilize information obtained from any source. HUD will obtain additional information from the Government’s

Past Performance Information Retrieval System (PPIRS), if available.