Attachment 0001 - Performance Work Statement (Revised 06152022).docx

Attachment 0001 Performance Work Statement (PWS) Case Management Support Services April 29, 2022

PERFORMANCE WORK STATEMENT (PWS)

REO CASE MANAGEMENT SUPPORT SERVICES

Vision Statement

Improve the systematic procedures required by the property disposition processes and accomplish HUD’s mission of improving the way HUD does business.

1 General Information

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD), Office of Single Family Asset Management (SFAM) requires Real Estate Owned (REO) case management support services via a web-based Federal Risk Authorization Management Program (FedRAMP) compliant commercially available Software as a Service (SaaS) subscription service. The services provided will assist with the analysis, management and operational procedures associated with the Single Family Disposition Process (SFDP). These services include providing a web–based online subscription with the ability to have SFAM specific workflow automation processes. The case management support provided will serve as the primary process for HUD staff and its business partners to send, receive, distribute, analyze, maintain, and manage information relative to the following HUD specific case management and workflow automation tracking processes:

· Pre–conveyance compliance,

· Post–conveyance property management,

· Disposition strategies,

· Retail REO,

· Contractor monitoring,

· Report capabilities, and

· Help Desk services The case management process shall allow for immediate (real time) availability to complete a variety of portfolio management functions and shall also include interfacing with all HUD approved internal application systems.

1.2 Background

The Federal Housing Administration (FHA), an organizational unit within HUD, administers the single–family mortgage insurance program. FHA insures approved lenders against the risk of loss on loans they finance for the purchase, and in some instances rehabilitation, of single–family homes. When an FHA–insured loan becomes delinquent, lenders begin reporting to FHA the varying stages of delinquency and when warranted, begin loss mitigation efforts.

In the event of a default, the lender will go through varying steps to dispose of the property in accordance with FHA’s disposition waterfall. The first step in the waterfall would be a pre-foreclosure sale (PFS), commonly referred to as a short sale. Then if available, the lender may work with FHA in a combined note sale. Next in line is the Claim Without Conveyance of Title (CWCOT) program where the lender will attempt to sell the property in one of two public auctions. Finally, if the lender acquires title to the property by foreclosure or a deed–in–lieu of foreclosure and the prior disposition process were unsuccessful, the lender will convey the property to HUD for FHA to sell through its real estate owned (REO) program.

After disposition, the lender will file a claim for insurance benefits to cover the remainder of their loss. As a result, HUD has a need to manage and sell a sizable inventory of single–family homes in a manner that promotes homeownership, preserves communities, and maximizes return to the FHA Mutual Mortgage Insurance Fund.

HUD is the largest home insurer of single–family homes in the United States. In fiscal year 2021, HUD endorsed over 1.4 millions forward home mortgages and over 52,000 reverse mortgages. During the last three years, FHA processed over claims through either the PFS, note sale or CWCOT disposition process and over 67,000 through the REO program.

FHA administers the disposition programs through its National Servicing Center located in Oklahoma City, Oklahoma, and four Homeownership Centers (HOC) located in Philadelphia, Pennsylvania; Atlanta, Georgia; Denver, Colorado; and Santa Ana, California. Each HOC is responsible for a designated geographic area. HUD currently has multiple contracts with companies who provide REO management and marketing services (M&M Contractors), lead paint abatement services, loan servicing and Mortgagee compliance monitoring (Mortgagee Compliance Manager (MCM)) throughout the United States, Puerto Rico, the Caribbean, Guam and the Northern Marianna Islands. The four main Contractors are the MCM, Lead Evaluation Contractor (LEC), Asset Manager (AM), and Field Service Manager (FSM). Included in the responsibilities of each contractor will be using the REO Case Management solution that monitors their PWS performance requirements and to complete their assigned tasks. The following is a summary of the purpose and objectives of each M&M Contractor:

· MCM: The MCM performs a variety of pre– and post–property conveyance services to ensure that HUD's interests are protected. These services include reviewing property inspections to ensure the property is in conveyance condition; assessing provided claim documentation; resolving conveyance exceptions; and providing guidance to Mortgagees related to pre–conveyance and post–conveyance responsibilities. (See Handbook 4000.1 III.A.2.t(B).

· Field Service Manager (FSM): The FSM provides property maintenance and preservation services consisting of verifying pre–conveyance determinations on property conditions, inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on–going maintenance. Properties acquired by HUD are assigned to FSMs at the earliest time possible. (See Handbook 4000.1 IV.B.1.ii).

· Asset Manager (AM): The AM is responsible for the marketing and sale of REO property. Multiple AMs are contracted to market HUD–owned properties within their selected contract area within their geographic HOC areas. (See Handbook 4000.1 IV.B.1.iii).

· Lead Evaluation Contractor (LEC): The LEC evaluates and stabilizes defective paint (lead–based paint that is chipping or pealing) on REO properties that are sold utilizing FHA–insured financing. (See Handbook 4000.1 III.A.2.t(B)).

Currently, there are approximately 17,000 users accessing REO Property Information via HUD’s current REO Case Management solution. Historically, HUD has had up to 110,000 properties in inventory at any time. HUD has over 54 million attachments stored in 18 terabytes in system data warehouse space. The current hardware configuration has more than 100 web servers designated for HUD. On a monthly basis, approximately 250,000 attachments are uploaded by MCM, AMs and FSMs.

1.2.1 HUD Systems

Case management support services requires workflow automation to exchange data and validation process to syntonize case management and financial accounting data with the following secured HUD systems:

· Single–Family Acquired Asset Management System (SAMS) – HUD’S legacy system that tracks and reports on HUD homes for sale, and disbursements all financial transactions related to their repair, lease, listing, and sale, including payments for contractor services, taxes and homeowner association and condominium fees.

· Single Family Housing Enterprise Data Warehouse – Provides a central database integrating information from more than one source of the same type of system and/or from more than one source of different systems.

1.3 Constraints

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.

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.

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.

E. Review and update system documentation to ensure accuracy, compliance, and completeness.

F. The Contractor shall 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.

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.

F. 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).

Additional specific information on these constraints is found in Section 5.4.1-5.4.2

1.4 Description of Services

The Contractor shall provide case management support services which includes providing a web–based SaaS online subscription for portfolio/case management that is Section 508 compliant. This service shall be the SFAM system of record for the activities and functions associated with the case management processes. Activities and functions include the following: Pre–conveyance compliance; post–conveyance property management, disposition strategies, retail REO sales, contractor monitoring; report capabilities, and help–desk services. Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and Deliverables.

1.5 Non–Personal Services

The Government will neither supervise Contractor employees nor control the process 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.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) 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 shall consist of a 1-year base period (inclusive of a 90-day transition-in period) with four 1-year option periods.

1.7 Place of Performance

Performance shall be at the Contractor's facility.

1.8 Hours of Operation

The Contractor’s online services shall be available to all authorized users between the hours of 7:00 AM EST and 9:00 PM EST, Monday through Friday, and Saturday 7:00 AM EST and 6:00 PM EST except for Federal holidays.

The help desk shall be available to all authorized users between the hours of 7:00 AM EST and 9:00 PM EST, Monday through Friday, except for Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings.

In addition, the public facing portals including the property listing and bid site shall be accessible to general public, including but not limited to selling brokers, inspectors, and HUD’s business partners seven (7) days per week / twenty–four (24) hours a day except during scheduled outages for data updating.

The Contractor shall be available to respond to and resolve service–related emergencies twenty–four (24) hours a day, seven (7) days per week, including recognized Federal holidays.

The Contractor shall 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 certified Project Management Professional (PMP).

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 ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officer’s Representative (COR), and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer 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, if any, being experienced. 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 at the Contracting Officer’s discretion.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205–46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Washington, DC. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

1.13 Transition In

The Contractor will have 90 days from contract award date to transition their case management solution into LIVE production environment. The Contractor shall, shall submit a Transition-In plan with their proposal thoroughly detailing timelines and activities that will be accomplished to have a fully integrated, customized, and configured SaaS solution with fully operational and functional applications, available at the end of the 90-day Transition-In period. As a successor, the Contractor shall have sufficient personnel on board during the 90-day 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. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In LIN is not required if the successor Contractor is the incumbent Contractor.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the Transition–Out period (90 days prior to the end of the contract period). The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition–Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and workflow automation 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 Contractor is achieved by the end of the new contract Transition–In period.

2 Definitions and Acronyms

2.1 Definitions

1st Chance Sale – CWCOT– Mortgagee will conduct the pre–foreclosure sale in accordance to laws of each State.

2nd Chance Sale – CWCOT – Mortgagee will have a Post–Foreclosure Sales Efforts where the property is marketed by an independent third–party provider.

Business/Workdays – Every official workday 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.

Claims Without Conveyance of Title (CWCOT) – A program under which the Mortgagee attempts to secure a third–party purchaser for the mortgaged property prior to conveyance to HUD.

Continental United States – The 48 contiguous States and the District of Columbia.

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.

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 or reports.

Direct Sale – A sales method where terms and conditions are prescribed by HUD (See 24 CFR 291.90(c) and 291.210). Further, 291.90(e) provides that "HUD may select any other methods of sale, as determined by the Secretary."

Federal Acquisition Regulation (FAR) – A primary regulation for use by all executive agencies in their acquisition of supplies and services with appropriated funds (See https://www.acquisition.gov/browse/index/far).

Financial Control Manual (FCM) – Describes HUD’s uniform policies and procedures for processing and approving vendor invoice related to the management and marketing of HUD’s properties and contractors.

Good Neighbor Next Door (GNND) – A sales program with the purpose to improve the quality of life in distressed urban communities (See 24 CFR 291.500–565).

Government Furnished Property (GFP) – 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.

Home Ownership Center – HUD HOCs are in the following four cities: Atlanta, GA; Philadelphia, PA; Santa Ana, CA; and Denver, CO.

Name and Address Identification Number (NAID) – Electronic application including document submission for Real Estate Brokers and Nonprofit organizations to obtain a name and address identification number in order to bid on REO properties and receive payments from HUD (See Handbook 4000.1 I.B.4(B)(1)(a)) Neighborhood Stabilization Program (NSP) – grantees have the exclusive opportunity to purchase HUD REO Properties located in NSP areas (See Handbook 4000.1 IV.B.2.f.iii(A)) Note Sales – A program to market and sell either forward or reverse mortgage loan notes in bulk prior to foreclosure (See 24 CFR 291.210.3(d)) 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 processes 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.

Pre–Foreclosure Sale (PFS) – Also known as a Short Sale, refers to the sale of real estate that generates proceeds that are less than the amount owed on the Property and the lien holders agree to release their liens and forgive the deficiency balance on the real estate. (See Handbook 40001.IV.A.2.e) Property Preservation Allowance – A list of maximum reimbursable amounts for property preservation and protection actions. (See Handbook 40001.III. A.2.(4)).

Property By-Pass Agreement - Policy and procedures between HUD and the Mortgagee/Servicer to use as an alternative to the reconveyance of properties not meeting conveyance condition standards.

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.

Quality Assurance Surveillance Plan (QASP) – 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.

Reconveyance – A conveyance of a property from HUD back to the Mortgagee due to the Mortgagee’s failure to comply with HUD ‘s conveyance requirements. (See Handbook 4000.1 III.A.2.t.ix) Request for Occupied Conveyance – HUD's Notice to Occupant of Pending Acquisition letter informs the tenant is able to continue occupancy after the lease expires. HUD includes a Request for Occupied Conveyance form with its pending acquisition notifications. (See Handbook 4000.1 III.A.2.iii and 24 CFR 203.670–681) REO Property Disposition –is to dispose of the properties acquired by the Federal Housing Administration (FHA) through foreclosure of an insured or Secretary-held mortgage or loan under National Housing Act. (See Handbook 4000.IV.B.2 and 24 CFR 291.100) REO Sales Programs – Initial preference given to Owner Occupied purchasers; Discounted Sales to Nonprofits and Government Entities; Asset Control Areas; Good Neighbor Next Door; Other Sales (See 24 CFR 291.90 (e) and 291.210 (c) allow for other disposition strategies when in the best interest of the Secretary. These sales can also include a discount (See “first look” sales method) (See Handbook 4000.1 IV.B.2.iii) Sales Contract – A document where all purchasers listed are borrowers and only borrowers can sign it (See FHA requirements of the sales contract in Handbook 4000.1 II.A.1(E)). Sales Contract is also used in competitive sales of individual properties where acceptance of a bid is final and effective only upon HUD’s execution of the sales contract, signed by both the submitting real estate broker and the prospective purchaser (See 24 CFR 291.205(k)(2)) 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.

Single Family Disposition Process (SFDP) – The activities, procedures, analysis, and information requirements as it relates to the process employed by HUD for property disposition.

Single Family Disposition Waterfall – disposes FHA properties in the following order: Pre–Foreclosure Sale, Forward or Home Equity Conversion Mortgage Note Sales, Claims Without Conveyance of Title (CWCOT), HUD REO acquisition (See Handbook 4000.1 III.A.2.l) SiteMinder – Application that allows for single–sign–on via web–authentication.

Software as a Service (SaaS): A software distribution model in which a third–party provider hosts application and makes them available to customers over the internet.

Subcontractor – Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Surchargeable Damage – Damage to a Property caused by fire, flood, earthquake, tornado, boiler explosion (for condominiums only) or Mortgagee Neglect (See Handbook 4000.1 IV.A.2) Title Review – Identifies issues with the land on which a home is located. Mortgagee must submit documents reflecting ownership vested in the name of the Secretary as per submission of Title Evidence requirements stated in the Handbook 4000.1 III.A.2.v(A)(1).

Workflow Automation - is the design, creation, deployment, and automation of business processes based upon preset rules where work tasks are automatically triggered and routed between people, technology, and data.

2.2 Acronyms

ACA – Asset Control Area AM – Asset Manager AQL – Acceptable Quality Level AR – Administrative Remedies 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 Officer Representative CPO – Office of the Chief Procurement Officer of HUD CWCOT – Claims Without Conveyance of Title EIN – Employer Identification Number EST – Eastern Standard Time (U.S.)

FSM – Field Service Manager GAO – U.S. General Accounting Office GNND – Good Neighbor Next Door – Officer, Teacher, Firefighter participants HOC – Home Ownership Centers HPIR – HUD Property Inspection Report HUD – U.S. Department of Housing and Urban Development HUD–27011A, B – HUD Claim Form HUDAR – HUD Acquisition Regulation IG – Inspector General ISSO – Information Systems Security Officer ITIN – Individual Tax Identification Number MCM –Mortgagee Compliance Monitor Contractor M&M – Management and Marketing NAID – Name and Address Identification NSC – National Service Center NSP – National Stabilization Program OCPO – Office of the Chief Procurement Officer OIG – Office of Inspector General OMB – Office of Management and Budget PCR – Property Condition Report PFS – Pre–foreclosure Sale PII – Personally Identifiable Information PM – Project Manager PNG – Portable Network Graphics POC – Point of Contact QA – Quality Assurance QASP – Quality Assurance Surveillance Plan QCP – Quality Control Plan SFAM – Single Family Asset Management SFDP – Single Family Disposition Process SaaS – Software as a Service SSN – Social Security Number WON – Work Order Notification

3.0 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 Annual Security Awareness and Ethics training.

3.2 Facilities

The Government will not provide facilities, except for conference rooms/areas for Contractor to provide training.

3.3 Equipment

The Government will not provide equipment.

3.4 Materials

Copies of required materials (AM, FSM, MCM, lead based paint, Financial Control manual) shall be provided to the Contractor in hard copy or soft copy, no later than five business days after the Post Award / Kickoff Conference. The handbook references can be found at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh. 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. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level. The contractor is wholly responsible for acceptable performance and quality assurance. In instances where standard will be included and future order for technical instructions.

4 Contractor–Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government–Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish all facilities necessary to perform the services stated within this PWS.

4.2 Equipment

The Contractor shall furnish all equipment necessary to perform the services stated within this PWS.

4.3 Material

The Contractor shall furnish all materials necessary to perform the services stated within 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.

U.S. 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 upon request.

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 contact matters relating to 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 actually receive assignment, guidance, and direction from the COR 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 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

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government 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.

Contractors/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 at 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 process for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's process 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 process 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 Case Management Support Services

The Contractor shall provide case management support services listed in section 5 which includes providing a web–based online subscription for portfolio/case management.

Performance Standards

a) Standard: No more than 3 incidences of online service downtime per month which the Contractor is responsible for.

AQL: Zero deviation from standard.

5.1.1 Portal Access

The Contractor shall ensure the REO Case Management solution include the following portals with the capabilities listed below:

1. Mortgagee Portal

· Allow Mortgagee/Servicer to have one or more users to grant Portal access to other mortgagee users.

· Allow data entry to enter conveyance extension requests, over–allowable requests, surchargeable damage requests, case documents, pre–conveyance documents and title documents attached to the property case number.

· Allow the MCM to review and approve these requests before they are permanently added to a case record.

2. Appraiser Portal

· Allow AMs the ability to grant Portal access to appraisers and supply these users with login and password information.

· Allow Federal Emergency Management Agency (FEMA) flood zone determination, valuation data and documents to be submitted for assigned properties.

· Allow AMs to review and approve appraisals before they are permanently added to a case.

3. Inspector Portal

· Allow FSMs and AMs the ability to grant Portal access to their inspectors and supply these users with login and password information.

· Ability for FSMs and AMs to review and approve routine inspections before they are permanently added to a case.

· Allow for FSMs to upload HUD Property Inspection Reports (HPIR), including Property Condition Reports (PCR).

4. Buyer Select Closing Agent Portal (See Handbook 4000.1 page 125)

· Ability to enter the closing date for properties with sales contracts.

· Ability to create unique ID, review, approve and maintain company profile and personnel information.

In addition, the Contractor shall ensure that the REO Case Management solution has the following capabilities:

· Limited access to the REO Case Management solution screens to users that do not have Personal Identity Verification (PIV) credentials (to include Mortgagees/Servicers, Appraisers, Inspectors, Buyer Select Closing Agents and Real Estate Brokers).

· Ability to grant access to various Portals for Non-PIV users, this shall include the Servicers portal for specific case/property number assignment.

· For all requests, data and attachments submitted through the Portal by non–PIV users, a workflow automation that requires a review by appropriate PIV users such as the MCM, AM or FSM before entering into REO Case Management.

· All portals shall allow for the adding / uploading of attachments, emails, and notes to a case.

· Access to run appropriate dashboard reports to help determine missing information, request, approval, denial, and appeal statuses.

· Attachments can be Word documents, text files, Excel spreadsheets, PDFs, pictures (portable network graphics (PNG) format), tiff images, or csv (comma–separated value) files.

· Ability of users to categorize attachments with user picklists.

· Ability to add notes within a required description field.

· Ability to send, receive and store emails from case level.

· Emails shall have case number default in subject line.

· Email Contacts List available in the REO Case Management solution.

· Ability for different M&M user groups to maintain their email contacts.

· New information can be added to each request by PIV users during their review.

· Ability for PIV users approve or deny/reject the request.

Performance Standards

a) Standard: No more than 3 incidences of portal downtime per month which the Contractor is responsible for and outside maintenance requirements.

AQL: Zero deviation from standard.

5.1.2 Pre–conveyance

The Contractor shall provide workflow automation within the REO Case Management solution for the Mortgagee/Servicers to submit the following requests for approval to the MCM:

(a) Request for Extension (extension requests, appeals). The types of time extensions that may be requested are, but not limited to:

· Requests for Extension of Time to Convey – capability to submit/respond to, workflow automation and report on the requests for extension of Time to Convey, and view decisions on the submitted requests utilizing the information found on form HUD–50012, Mortgagees Request for Extension of Time (See Handbook 40001.III.A.2.(5))

· Requests for Extension of Time to Submit Title – workflow automation capability to submit, appeal and respond to, and report on the requests for extension of Time to Submit Title.

(b) Property Preservation Allowances (over–allow approval, appeals). The Contractor shall ensure the following capabilities are available when submitting over–allowable requests:

· Allow the Mortgagee to upload supporting documentation for the request.

· A workflow automation process and reporting for the MCM on the request data and the ability to notify the Mortgagee of acceptance or denial Extensions of Time and over allowable.

· Ability for the Mortgagee to appeal the decision of a previous request.

· Workflow automation for the COR to communicate the appeal acceptance or denial determination to the Mortgagee.

· Ability to perform reporting on each over–allowable line item.

The following data elements are required for over–allowable requests. The following list is not all inclusive:

· Property disposition dates {such as vacancy, foreclosure or trustee sale, deed recorded, expected conveyance}

· Description of over–allowable items requested {description of work to do, quantity, unit cost, total cost, and remarks}

(c) Surchargeable Damage – The Contractor shall ensure the following capabilities are available when submitting surchargeable damage:

· Notification to MCM on pending requests to convey a property with surchargeable damage and can review all of the documentation provided by the Mortgagee.

· Allows the MCM to either approve or deny the request to convey with surchargeable damage and generate emails and post decision to the Mortgagee.

· Captures the surchargeable damage requests within the Mortgagee portal. If the request is denied an appeal workflow automation will allow the requestor to provide additional documentation for a supervisory MCM review.

· If the appeal is denied again the requestor will be provided with a final appeal workflow automation. A notification to the COR of any final appeal filed by a Mortgagee and allow the COR to review that case and render a final decision.

· Automatically generates an email that is sent to the Mortgagee with the final decision.

· Captures the final decision within the Mortgagee portal.

(d) Request for Occupied Conveyance

· Allows the MCM to upload occupied conveyance documentation.

· Allows the MCM to input all provided documentation concerning an occupant’s income, expenses, and members of the household.

· Allows the MCM to either approve or deny the request and generate a letter to notify the occupant of the decision.

· If the request is denied an appeal workflow automation will allow the occupant to provide additional documentation for a supervisory MCM review.

· Provides the MCM the ability to input the appeal information and upload any associated documentation.

· Provides MCM the ability to recommend approval or denial of the occupied conveyance and submit the recommendation to the COR for approval or denial.

· Provides the COR the ability to approve or deny the appeal request, record the COR’s decision, notify the MCM of the decision, and generate a decision letter to the occupant.

The Contractor shall ensure an email is automatically sent to Servicer when the MCM responds to any of the requests above with an approval or denial.

5.1.2.1 Suspended Claims Process

The Contractor shall provide a workflow automation within the REO Case Management solution that allows HUD staff to suspend claims (See Handbook 4000.1.IV.A.1) submitted by mortgagees and servicers. This workflow shall include:

· A workflow automation for the Mortgagee to receive notification of suspended claims within their portfolio. This notification shall be visible on the process dashboard.

· Allow the mortgagee to submit supporting documentation based upon the Suspension Code(s) of each cases suspended claim.

· The ability for the HUD Claims group to be notified when a suspended claim case is ready to be reviewed.

· Mortgagee receives notification of the Claims staff decision on the provided workflow automation dashboard.

· No fewer than two dashboard notifications. These dashboard notifications will include case numbers and the qualifying error codes.

5.1.3 Disposition Waterfall

The Contractor shall track within the Case Management solution FHA delinquent loans and their activities that occur before a property is conveyed to HUD. The Contractor shall provide a process to import data from the Single Family Housing Enterprise Data Warehouse (SFHEDW). The process shall allow Mortgagees/Servicers, HUD, NSC and M&M staff to:

· Import and display HUD SF delinquency/default status codes on a weekly and or monthly timeframe.

· Import HUD SF Loss Mitigation status codes on a weekly and or monthly timeframe.

· Report Servicers with a high rate of fatal errors and demand resolution.

· Identify/label FHA case numbers and track historically the changes of case number during the waterfall from Pre–Foreclosure Sale (PFS), FHA Forward and HECM Notes Sales, Claims without Conveyance of Title (CWCOT) 1st sale, 2nch change sale and conveyance/acquisition for REO disposition.

5.1.3.1 Valuation Disposition Strategy

The Contractor shall provide a workflow automation within the REO Case Management solution to collect, display, and track multiple types of valuation records for each property, such as Appraisals, Broker Price Opinions (BPO) and Automated Valuation Model (AVM) or Automated Valuation Model with comparable.

The Contractor shall ensure the process captures and validates the appraiser ID from the data provided by SAMS and displays an approval/reject flag if the appraiser is not on the HUD approved roster.

The minimum necessary appraiser and valuation data shall be displayed as follow:

· Dates, values, appraiser name, CHUMS ID, and insurability designation relative to all appraisals obtained.

· Required repairs, costs for repairs, and reasons for the repairs.

· Record dates, values, and brokers name relative to all Broker Price Opinions.

The Contractor’s workflow shall provide capabilities to capture appraisal and appraisal reviews and findings. In addition, the Contractor’s workflow shall provide valuation review capability to identify questionable valuations based on the records of valuations performed and data available in HUD systems. The workflow shall include:

· Ability to test and import individual property valuation analysis.

· A workflow and reporting process in accordance with each disposition to submit SFAM required data and claim compliance supporting documentation.

· Ability for the MCM to review and approve the uploaded supporting documents and issue required Administrative Remedies (AR) due to non–compliance.

· Ability for the MCM to reject any/all of the mortgagees uploaded supporting documents. In this outcome the Mortgagee shall have the ability to submit updated versions of the previously rejected supporting document.

· Ability to record and display Qualitative and Quantitative MCM deliverables.

5.1.3.2 Property Case Management

The Contractor shall provide workflow automation within the REO Case Management solution for the FSM, AM, and MCM to create property disposition records. The workflow shall allow for the following:

· A two steps process by the contractor will be used for a new property disposition.

· A disposition record created for a Held–off–Market (HOM) status or listing of properties.

· A disposition to be canceled and the ability for the FSM and AM to enter a rejection reason.

· A disposition process where inspections, valuation, Federal Emergency Management Administration (FEMA) flood zone designation, property condition report, photos and addendums are available to the HUDhomestore.gov property listing.

· A disposition comprised of two independent user levels: creator and approver and should contain a rejection process.

· The ability to specify the commission split between the Selling Agent and Listing Agent. The Contractor shall not allow the broker commissions to be above 3 percent; however, selling broker commission can be less.

· Property addendums (national, state, and local) are selectable to be added to the disposition and display on the HUDhomestore.gov property listing .

· A process when creating a disposition for AM and HUD to manage specific addendums. Each addendum shall be attached on a national level or contract area, state or individual to properties.

· A minimum broker commission which does not apply to Dollar ($1) homes.

· A process for a property to be temporarily suspended from the listing process for a variety of issues relating to the management of the property.

· The AM to add advertising codes to a property disposition to help identify attributes of a property for future marketing purposes. The Contractor shall ensure advertising codes and descriptions are included on the HUDhomestore.gov property listing .

· A process for the AM to perform a price reduction on a property listing. The Contractor shall ensure a new disposition and approval is available to relist the property or a direct sale.

· A property disposition which includes a threshold for the minimum acceptable bid.

· The utilization of the HUD Program codes. The HUD sale disposition program descriptions are identified in HUD Handbook 4310.5 REV–2, Section 6–19, 6–20 and 10–7.

· The utilization of the HUD – special program codes to identify programs such as Fireman Next Door, Teacher Next Door, Officer Next Door, and Bulk Sale.

· The calculation of the maximum allowable commission, maximum allowable closing costs and special sales incentives.

· The utilization of Held Off Market/Not Held Off Market codes when creating a listing disposition.

· Property disposition to be geocoded for the Revitalization Area and coding for the different NSP programs.

· The ability for the geocoding process and information to be sent imported from SAMS to the Contractors application.

5.1.3.3 Marketing/Sales Process

The Contractor shall provide workflow automation within the REO Case Management solution to accommodate the hierarchy and requirements associated with each sales process as described 24 CFR 291.205 through 24 CFR 291.210(d). The workflow automation shall include:

(a) Marketing History – Ability to track the history of the marketing/disposition effort for each property, including but not limited to:

· List price history including initial list price, minimum acceptable bid, discount amount the date and new list price for any price reductions.

· The name and contact information for the listing broker, selling broker, closing agent, FSM, AM, and MCM.

· Disposition Dates of lottery periods, exclusive and extended listing periods, NSP sales, ACA sales, Dollar Home Sales.

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