Attachment 1 - Questions and Answers.pdf

Attachment 1 Solicitation 86615722R00002, A0001

Actuarial Review Services Questions and Answers

Q1 What is the intended start date of the period of performance?

A1 The estimated start date of the period of performance is January 1, 2023.

Q2 Can the deadline for offerors be extended?

A2 The due date is extended to August 8, 2022

Q3 On Page 17 of Attachment A, the PWS states that “All data, information, modeling, analyses, and code shall execute on HUD's computing environment. The COR will provide specifications for the HUD environment.” How does the government intend to provide access for the contractor team to work on the HUD environment?

A3 The program office IT specialist will provide any access to HUD’s environment that is necessary for the contractor to ensure that code executes properly. Once the contractor has received their approval to access HUD’s network, access requests will be submitted, and accounts set up accordingly.

Q4 Pages 16 and 17 of the PWS provide specific performance standard dates for 5.3

Production of Actuarial Studies. One of the proposed dates fall on designed federal holidays per OPM’s website in 2022 in which FHA would provide comments. Does the government intend to adjust this schedule per period to account for federal holidays?

A4 Yes – dates that fall on holidays will be adjusted to the workday before the holiday.

Q5 On Page 17 of the PWS, the delivery method for the written actuarial studies is 50 bound copies. Will the government accept an electronic copy in lieu of 50 paper copies?

A5 No.

Q6 The PWS states the MMI fund is the only fund in question for the SF actuarial review. Will the HECM loans in the GI/SRI portfolio also be included for economic valuation?

A6 Data for HECM loans in the GI/SRI portfolio will be provided to inform the actuarial model, however, an actuarial central estimate will only be required for the HECM loans in the MMI fund.

Q7 The PWS states (pg. 10) "No Equipment will be provided by the government". Will the government provide HUD laptops and/or desktop workstations to access HUD proprietary systems?

A7 No – contractors will use HUDMobile to access HUD’s network when necessary.

Q8 Will the contractor have access to HUD system applications, e.g. HUD SAS EG. If no, should the selected contractor be prepared to internal analytical tools with HUD internal data systems?

A8 HUD can provide access to the SAS environment if necessary, however, it is preferred that the vendor have their own

Q9 Will the selected SF contractor be required to reconcile economic value differences with other actuarial review contractors working at HUD?

A9 No. The independent actuarial contractor is required to produce an actuarial central estimate, a range of estimates, and opine on the reasonableness of HUD’s actuarial central estimate.

Q10 Will the selected SF contractor be required to use Federal Credit Reform guidelines when formulating the SF economic values opinion? Will the SF contractor use standard assumptions from OMB (or other agencies) or will the SF contractor be free to choose the best/most appropriate assumptions for the model?

A10 Yes, the contractor shall use Federal Credit Reform Act guidelines. The contractor will be provided with the PEA which comes from OMB, however, in addition to the single path economic forecast, the studies shall test alternative economic forecasts (e.g., Moody’s Analytics) for stress testing and sensitivity analysis to estimate ranges of reasonableness.

Q11 Will the selected SF contractor have any responsibility to produce deliverables for HUD's annual Audit and Budget cycles?

A11 No.

Q12 Should the "Replication Package" for the SF actuarial models be able to run automatically for easy use by end user? Or will the replication package just include the actual models, all inputs/outputs and all documentation?

A12 Yes, FHA users shall have the capability of utilizing the Actuarial Replication Package and it shall be user-friendly

Q13 The solicitation has the following language on how the contractor's past performance will be evaluated; "For this solicitation, magnitude is defined as past performance having built and executed predictive cash flow models for mortgage insurance programs and processing data from 8 million loans". Does this mean the Government will select a contractor having the capacity and experience to run 8 million loans through actuarial models or a contractor who has actually run all 8 million loans though their actuarial models? Since the FHA Single Family Forward insurance portfolio is so large with a homogeneous population, sample techniques allow for much faster run times with the same statistical significance as modeling the entire FHA Forward insurance portfolio.

A13 This means the Government will select a contractor having the capacity and experience to run 8 million loans through actuarial models.

Q14 Is there a possibility to extend the due date for Actuarial Review Services solicitation #

86615722R00002 from 7/29/2022 until 9/5/2022

A14 No, but it will be extended to August 8, 2022, when the amendment is issued.