86615720R00001 A0003 Attachment 1 Questions and Answers.pdf

Attachment 1 Solicitation 86615720R00001, A0003

Mortgage Loan Servicing Support Services Questions and Answers

Q1 Q1 – 3 & 89 - Indicates that HUD does not possess the requirements and the answer to question 89 indicates that the interface specifications are “proprietary to the incumbent”. Can you please explain how a bidder is to 1) Estimate the time and cost to build the interfaces in a Fixed Cost and Time bid to deliver, and 2) How is the awardee to obtain the requirements if they are proprietary to the incumbent? 3) Please confirm that the systems to be interfaced and the Interface Control Documents are owned by the Incumbent.

A1 Q1-There are no system specs and file layouts for FFB Loan information system, ELOCCs Line of Credit and CIR. These are systems that the Contractor will need to gain access to retrieve data only. The only true system to system interface is FHASL and iREMS. PWS section 1.3.3 has been modified for clarification.

Q2- There are no system specs and file layouts for LOCCs and Minority Banks Online Systems. These are systems that the Contractor will need to gain access to retrieve data only. The only true system to system interface is FHASL and iREMS. PWS section 1.3.3 has been modified for clarification.

Q3-There are no system specs and file layouts for TRACS system. These are systems that the Contractor will need to gain access to retrieve data only. The only true system to system interface is FHASL and iREMS. PWS section 1.3.3 has been modified for clarification. The only true system to system interface is FHASL and iREMS. PWS section

1.3.3 has been modified for clarification.

Q89- The current interfaces are FHASL and iREMS and all specs were developed by the incumbent. The Government is unable to provide specs for either interface.

1. Data elements will be provided with a legend to assist in building the database required after award. Please see PWS Section 1.3.3 for technical specifications. The only system to system interface is with FHASL and iREMS. The Contractor is responsible to estimate their time and cost to build the interface.

2. The current system is proprietary to the incumbent and the Government does not have the authority to release that information.

3. The incumbent systems have developed and owned the Interface Control Documents for all systems listed in section 1.3.3 of the PWS.

Q2 Q5 – 71 - There are many questions HUD confirmed were requirements that were not included in the original PWS, are we to assume these requirements are incorporated into the PWS?

A2 Q5: (Corrected response): The creation requirement for the 9250 form is developed by the Government (Mortgagors, Billing agents and Field staff). The contractor is responsible for performing the task noted in the PWS section 5.3 #11.

Q6: (Corrected response): The original question cited section 5.3 #1 of the PWS as it pertains to misdirected collections and initiation of the IPAC request. That section does not cover those specific tasks. Those tasks are noted in PWS section 5.3 #12, 5.5, 5.8.2 and 6 (A053).

Q7: (Corrected response): The PWS has been modified to add this requirement in section 5.2. Tax Identification Number (TIN) numbers must be established during the new assignment process. The Contractor shall prepare a 30, 60 and 90 follow up letters.

Q8: Answer remains Confirmed.

Q9: (Corrected response): The PWS has been modified to add this requirement in section 5.3 #2. The Contractor will be required to generate demand letters for outstanding balances, outstanding debt on Notes with unpaid principal balances after maturity.

Q10: (Corrected response): PWS section 5.3.4 has been modified to add this requirement.

Q11: (Corrected response): PWS section 5.3 #2 has been modified to include this requirement.

Q12: (Corrected response): PWS section 5.3 #2 has been modified to include this requirement.

Q13: (Corrected response): Equity Riders are imposed on properties foreclosed by the Department and sold to Units of Local Governments (ULG).

Q14: (Corrected response): PWS section 5.1 #5 has been modified to include this requirement.

Q15: (Corrected response): PWS section 5.1 #5 has been modified to include this requirement.

Q16: Answer remains Confirmed: As part of the 202 program, the Contractor is responsible for disbursing funds. Once disbursed, the funds will need to be reclassified for reimbursement and all transactions shall be tracked in accordance with section

5.5.3.2 part #9 of the PWS.

Q17: (Corrected response): PWS section 5.3 #21 has been modified to include this requirement.

Q18: Answer remains confirmed. Please reference PWS section 5.3 #16 that addressed the original question.

Q19: (Corrected response): PWS section 5.5.3.2, has been modified to include this requirement.

Q20: (Corrected response): HUD no longer requires this type of information on a note by note basis.

Q21: Answer remains confirmed. The note shall be serviced monthly in accordance with the terms contained in the notes.

Q22: (Corrected response): The Contractor shall perform the following: receipt of funds, change status code, submitting the original legal file and closing out the note.

Please see sections 5.3 #24 and 5.3.1 of the PWS.

Q23: Answer remains confirmed No. Please see section 5.3 #24 and 5.3.1 of the PWS.

Q24:(Corrected response): PWS section 5.3 #10 has been modified to include this requirement.

Q25: (Corrected response): PWS section 5.3 #10 has been modified to include this requirement.

Q26: (Corrected response): PWS section 5.3 #11 has been modified to include this requirement.

Q27: (Corrected response): PWS section 5.3 #11 has been modified to include this

Q28: (Corrected response): PWS section 5.3 #11 has been modified to include this requirement.

Q29: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q30: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q31: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q32: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q33: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q34: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q35: (Corrected response): PWS section 5.3 has been modified to include this requirement.

Q36: (Corrected response): PWS section 5.8.6 Has been modified to include this requirement.

Q37: Answer remains confirmed- No, the contractor will not hold any deposits/escrows for real estate taxes, insurance or reserves for replacements. No, the minority bank will not hold all deposits/escrows.

Q38: (Corrected response): The awardee will be responsible with interfacing requirements in accordance with PWS sections 1.3.3 and section 5.1.

Q39: Answer remains confirmed No.

Q40: Answer remains confirmed. It is possible that the delay in the PIVing process could impact the Contractor’s ability to perform transition In services.

Q41: Answer remains confirmed. Yes, it is possible that the contractor may incur performance penalties if the Contractor fails to adhere to the PIVing requirements.

Q42: (Corrected Response): PWS Section 5.3 #1 has been modified to include this requirement.

Q43: Answer remains confirmed Yes, please see PWS section 5.3 #11g for the answer.

Q44: (Corrected Response): SSAE18 will need to be performed annually for the work under the awarded contract.

Q45: (Corrected Response): PWS section 1.3.1 has been modified to include this requirement.

Q46: (Corrected Response): PWS section 1.3.1 has been modified to include this requirement.

Q47: (Corrected Response): PWS section 1.3.1 has been modified to include this requirement.

Q48: Answer remains confirmed. It is at the Contractors discretion how this requirement is met.

Q49: (Corrected Response): PWS section 1.3.1 has been modified to include this

Q50: (Corrected Response): We may have loans that were originated as far back as 1977.

Q51: Answer remains confirmed: HUD will provide access to the appropriate SMEs.

Q52: Answer remains confirmed Yes.

Q53: Answer remains confirmed. No task orders will be issued against this standalone contract award.

Q54: Answer remains confirmed: Yes. The Government increased the page limit for this factor from 10 pages to 20 pages. See 86615720R0001 A0001, Attachment 1 - Revised 86615720R0001.

Q55: Answer remains confirmed No: The Government increased the page limit for this factor from 10 pages to 20 pages. See 86615720R0001 A0001, Attachment 3 - Revised 86615720R0001 Q56: Answer remains confirmed Yes. The Government increased the page limit for this factor from 25 pages to 35 pages. See 86615720R0001 A0001, Attachment 3 - Revised 86615720R0001 Q57: Answer remains confirmed: No. They will be evaluated. See 86615720R0001 A0001, Attachment 3 - Revised 86615720R0001 Q58: Confirmed, they are located in the PWS, Section 7, Performance Requirement Summary.

Q59: Answer remains confirmed, the Government will not provide the possible rating for the technical Approach and Management Approach.

Q60: (Corrected Response): The Contractor shall determine the solution that meets the requirements of the PWS.

Q61: Answer remains confirmed: Any electronic document repository shall allow HUD staff to upload and retrieve documents.

Q62: Answer remains confirmed: Any version that saves files with the extension doc, docx, xls, and xlsx.

Q63: Answer remain Confirmed: No. See 86615720R0001 A0001, Attachment 3 - Revised 86615720R0001 Q64: Answer remain confirmed: Yes Q65: Answer remain confirmed: The Key Personnel is identified in the PWS Section 4.5 Contractor Personnel, in the Solicitation HUDAR Clause 2452.237-70 Key Personnel and any other personnel the Contractor considers to be Key Personnel.

Q66: Answer remains Confirmed: Late charges shall be assessed based on the term of the Notes.

Q67: Answer remains Confirmed: Late fees shall be determined based on the term of the Notes.

Q68: (Corrected Response): Data Act reporting is required for all aspects of the contract. Please see the Data Act requirements in PWS section 1.3.

Q69: Answer remains Confirmed: The Contractor is responsible to perform the requirements under PWS section 5.5.5. The Government shall have access to perform data entry if necessary.

Q70: Answer remains Confirmed: The Contractor is responsible to perform the requirements under PWS section 5.5.5. The Government shall have access to perform data entry if necessary Q71: Answer remains Confirmed.

Q3 Q5 – 71 - Are we correct in assuming that the awardee will be responsible only for the requirements specified in the PWS to be included in the timeframe and cost proposed?

A3 Yes, the PWS has been amended to reflect the additional requirements/tasks that the contractor shall perform.

Q4 Q6 – Please explain the data/reports the contractor will access for unidentified collections received through Pay.gov to determine the correct HUD program or agency?

A4 The original question cited section 5.3 #1 of the PWS as it pertains to misdirected collections and initiation of the IPAC request. That section does not cover those specific task. Those tasks are noted in PWS section 5.3 #12, 5.5, 5.8.2 and 6 (A053).

Q5 Q11 – Please confirm that you mean an inactive case may have a transaction and the case must be activated in order to process the transaction?

A5 PWS section 5.3 #2 has been modified to include this requirement.

Q6 Q15 & 93 – Please confirm that HUD does not receive monthly reports of terminated cases held in the contractor’s storage?

A6 PWS section 5.1 #5 has been modified to include this requirement.

Q7 Q16 – Please confirm that the advance of funds and reimbursement is intended to mean

HUD not the contractor’s funds?

A7 As part of the 202 program, the Contractor is responsible for disbursing funds. Once disbursed, the funds will need to be reclassified for reimbursement and all transactions shall be tracked in accordance with section 5.5.3.2 part #9 of the PWS

Q8 Q26 – Please explain what legal document allows the contractor to provide direction to the banks in the HUD Minority Bank program?

A8 PWS section 5.3 #11 has been modified to include this requirement.

Q9 Q28 – Please explain Veribank, is this a service which the contractor must purchase and if so, how is the cost reimbursed?

A9 PWS section 5.3 #11 has been modified to include this requirement. Cost of Veribank is paid directly by the Government.

Q10 Q36 – Will the awardee be issued a task order if the scope of the FHASL requirement exceeds the amount of time and level of effort estimated to implement the interface?

A10 No. PWS section 5.8.6 Has been modified to include this requirement

Q11 Q39 – Q41 - Given the contractor has no control over the PIV process, please provide the exact number of days that will be required for the government to complete this process?

If HUD can’t provide the exact number of days for the government to complete the process how can the contractor be assessed a penalty?

A11 The PIVing application (new hire/transfers) should be submitted within seven (7) business days to the Government after the COR has provided the necessary documentation and direction. The Contractor will not be assessed a penalty for the time period it takes to receive the clearance from the Government. The assumption is that the Contractor submitted the proper documentation within the required time frame. Please see the revised responses for Q39-41 above.

Q12 Q42 – Please confirm that HUD requires the contractor to customize their system to meet

HUD specifications for the HUD billing statement and therefore you are not requiring a COTS solution?

A12 PWS Section 5.3 #1 has been modified to include this requirement. It is up to Contractor to provide its best possible solution that meets the Governments noted requirements. The Government did not state that this was a COTS solution.

Q13 Q44 – Is HUD or the contractor responsible for contracting for an SSAE18 audit and if the contractor is the cost reimbursed?

A13 SSAE18 will need to be performed annually for the work under the awarded contract.

This cost will be the responsibility of the contractor and should be included in your proposal. This is a Firm Fixed Price contract. The cost will not be reimbursed.

Q14 Q52 – Q92 Can you please clarify, does HUD complete the ATO or is the contractor required to have an independent assessment in order to secure the ATO?

A14 HUD will conduct the ATO and it is the Contractors responsibilities to adhere to the ATO requirements.

Q15 Q53 – Please confirm that if the government’s requirements change the contractor must make modifications to comply with the requirements, therefore the MLS system is a Custom, not COTS system? Additionally, how will the requirements become part of the contract without the issuance of a Task Order or Contract Modification?

A15 Modifications may be issued against the standalone contract award. No task orders will be issued against this standalone contract award.

Q16 Q72 – Please clarify, is HUD saying that all legal documents must be stored in a facility in the DC Metro Area? Can legal documents be delivered overnight? If not, is HUD saying that the contractor servicing facility must be located in the DC Metro Area?

A16 There is no requirement for the facility to be located in the DC Metro Area. Yes, documents can be delivered overnight.

Q17 Q75 – Please clarify that only the Pricing Schedule reflects annual rates, and that the contractor will be paid monthly based on the rate divided by 12.

A17 Please see answer provided and the UOI on Attachment 3 Schedule of Services.

Q18 Q81 & Q103 – Are UCC State Filing Fees chargeable to the Note or paid by HUD? If not, is

HUD saying the contractor is responsible for paying legitimate government expenses from contractor funds?

A18 UCCs pricing should be included in the fully burdened price proposal. UCCs will not be a separate reimbursable CLIN. Q103 does not pertain to UCCs.

Q19 Q85 – Is HUD satisfied that key personnel with only private sector note servicing experience are qualified to properly perform the requirements of this contract? If not, how can HUD complete an evaluation of proposals without seeing the qualifications of Key Personnel through the submission of resumes?

A19 See page 56, Management Plan of the solicitation.

Q20 Q88 – Please confirm the same number of notes and properties existed for all of FY19 and 20 for each CLIN? We can’t find the number of transaction activity processed in the pricing schedule, can you please identify it or provide the volumes of transactions by type for each CLIN in order for contractors to estimate the level of effort required to properly service each CLIN?

A20 Please refer to CLINs 5,12,19,26 and 33 for the Governments estimated values based on historical data. Actual numbers fluctuate annually. The LOE is detailed in section 5.5 –

5.5.6.3 of the PWS that supports the estimated quantity of 2100.

Q21 Q90 & Q98 – Please confirm a bidder may propose an implementation schedule that can legitimately be met that might exceed 180 days and will not be penalized by the arbitrary dates defined in the PWS? Also, please confirm that HUD is seeking a system that is “stand alone” fully tailored to HUD MLS requirements and a “commercial service” cannot comply with HUD’s unique requirements?

A21 The contractor should tailor your proposal that meets or exceeds the government PWS requirements. HUD is seeking a system that is outlined in the PWS.

Q22 Q96 – If incumbent shadowing isn’t available, will HUD provide written procedures, training curricula and provide training to the contractor as part of the transition in?

A22 HUD will provide access to training and written procedures during the Transition In process.

Q23 Q99 – Without a detailed list of MLSSS specific requirements how will HUD complete testing of the contractor’s system?

A23 Please refer to section 5.1.1 of the PWS.

Q24 Q100 – PWS Section 1.2.3 does not provide details of the user organizations, functions, volumes and system capabilities required. Can you please provide these details in order to estimate the hosting and other technology requirements?

A24 Please refer to section 1.2.3 of the PWS. Currently, access to mortgage loan servicing data is provided to approximately 100 HUD internal employees and approximately 500 additional users nationwide. The users may fluctuate throughout the performance of the contract. We do not track the user access by office, only by employee status.

Depending on the user, the functionality could be read only or read and write. The volume is 100 HUD internal employees and approximately 500 additional users nationwide.

Q25 Q101 – Please further confirm that the reconciliation will be supported by loan number, transaction type and provide the number of reconciling items?

A25 Yes, reconciliations should be supported by loan numbers and performed at the account and fund level (transaction type).

Q26 Given the significant impact answers to these clarification questions, we request that

HUD consider a two-week extension after your response date.

A26 HUD will extend the due date one week after the response date. Due date is currently August 21, 2020, which meet or exceeds the one week.

Q27 According to the FDIC, there are approximately 20 Minority Banks in existence, however, the solicitation states that there are seven. Are you familiar with these seven Minority Banks mentioned? See below for reference.

5.2 New Note Set-up and Take-Down

Establish R4R and residual receipts escrows per assignment of the mortgage. All R4R and residual receipts escrows shall be invested in the Minority Bank Program disbursing federal reserve levels per note, per bank. The Contractor shall track and record the activity in these accounts and transmit all escrow funds to the seven minority banks in accordance with established agreements between the Contractor, HUD, and the designated minority banks. The Contractor shall also reconcile interest per note on a monthly basis and submit to the SCOR a Minority Bank Reconciliation Report no later than fifth business day of each month.

A27 There are currently seven (7) minority banks that do business with HUD under this requirement. HUD is familiar with the seven (7) minority banks that we do business with.