Addendum I - QA.pdf

ADDENDUM I

DATE: March 24, 2025

TO: VENDORS

FROM: Stephanie Bergozza, Procurement Officer

RE: Request for Proposal (RFP) No. DOA 24 25 128, Loan Underwriting, Closing, and Servicing for the Agriculture and Aquaculture Producers Natural Disaster Recovery Loan Program

This addendum provides the Department’s answers to the questions received in reference to this Request for Proposal.

Question / Answer

1. Is there an expected coverage amount or minimum for the errors and omissions insurance coverage?

The amount should be in accordance with industry standards as appropriate.

2. How soon after the award would the Contractor be required to provide proof of errors and omissions coverage?

Within approximately 30 days or a time period otherwise agreed upon between the department’s contract manager and the Contractor.

3. Would the Department deem the Contractor to be a subrecipient under Federal Regulations or Florida Statutes based on their administration of the loan servicing program?

No, the Contractor will be considered a vendor.

4. Will the Contractor have access to all or a portion of funding set-aside for loans after contract execution, will funds be made available within a certain period of time upon the Department’s approval of the loan, or will the Contractor need to use their own resources to fund the loan and then will be reimbursed?

The Contractor will not use its own resources to fund loans. This arrangement will be further defined once the contract is executed.

5. Exhibit A: Are there any specific credentials or certifications required or preferred to perform these services, especially for underwriting or closing analysts?

The Contractor or its staff (including subcontractors) must have any licenses and certifications required to perform the services sought in this RFP and must be appropriately chartered in accordance with all applicable federal and state laws.

6. Pg 43, Section IV.D – Loan Servicing Requirements: Loan Servicing Platform - Is there a current loan servicing platform in use? If so, what are its capabilities, integrations, and any required data security measures for compliance?

The loan servicing platform must be provided by the Contractor.

7. Pg 41, Section IV.B & Pg 44, Section IV.E – Loan Processing & Service Delivery Standards: Loan Processing Timelines - What are the expected turnaround times for underwriting, loan closing, and disbursement? Are there penalties for delays or incentives for expedited processing?

See Exhibit A, Scope of Work, which sets forth the deliverables and financial consequences for the services sought under this RFP. The Contractor must also comply with all timelines established by state and federal law.

8. Exhibit A – Scope of Work, Loan Processing Expectations: Loan Size & Volume - What has been the historical distribution of loan sizes and annual disbursements? Can the department provide data on expected loan volume fluctuations based on past disasters?

Loans can currently vary from $1 up to a maximum of $500,000 and are driven by the need/request of applicants which can vary greatly and cannot be forecasted. As of March 20, 2025, 112 loans have been disbursed at an average of $287,541.58 per loan.

9. Pg 43, Section IV.D.4(f) – Verification for storm-hardening compliance: Will the awarded contractor have direct access to FEMA, state emergency agencies, or other databases to streamline verification?

No.

10. Pg 43, Section IV.D – Loan Servicing: Risk & Default Management - What mechanisms are in place for handling loan defaults? Will the contractor be responsible for collections or liaising with other agencies for repayment management?

See Exhibit A, Scope of Work, Section IV.D.7.

11. Pg 44, Section IV.E – Performance & Reporting Standards: Performance Metrics & Key

Performance Indicators (KPIs) - What are the key performance benchmarks that will be used to evaluate contract performance? Are there penalties or bonuses associated with meeting or exceeding certain thresholds?

See Exhibit A, Scope of Work, which sets forth the deliverables and financial consequences for the services sought under this RFP.

12. Pg 41, Section IV.B & Pg 44, Section IV.E – Reporting Requirements: Reporting Templates - Are there standardized reporting templates for underwriting, closing, and servicing? If not, is the contractor expected to develop and maintain reporting formats?

Will FDACS provide examples or guidelines for required reporting elements?

The department will provide guidelines and examples for the required reporting elements to the awarded Contractor. This will be addressed in the kick-off meeting.

13. Pg 43, Section IV.D.4(f) – Scope of Physical Inspections: Physical Inspections Scope - Will physical inspections be mandatory for every loan disbursed, or will they be conducted selectively? What specific elements of the property must be inspected, and are there predefined inspection checklists or compliance standards?

Every loan must be inspected to ensure that the loan proceeds were used appropriately in accordance with the terms of the loan agreement. This can be further discussed during the kick-off meeting with the department.

14. Pg 43, Section IV.D – Technology & Security Compliance for Loan Servicing: Technology Integration & Data Security - If an existing loan servicing platform is not used, will the contractor be required to implement a new system? What cybersecurity and data handling compliance requirements must the contractor meet?

The Contractor is required to provide the systems it needs to perform the scope of work set forth in Exhibit A, Scope of Work, except to the extent that the information is provided in the department’s DRLP Portal. The Contractor shall comply with industry standards related to data security and handling as well as the requirements set forth in Exhibit A, Scope of Work, and Attachment I, Contractual Services Agreement.

15. Exhibit A – Scope of Work, Program Administration: Disaster-Specific Adjustments - Will underwriting, closing, or servicing requirements differ depending on the type of disaster (e.g., hurricanes vs. wildfires)? If so, how should the contractor anticipate these adjustments in processing?

16. Exhibit A – Scope of Work, Program Administration & External Partnerships: Stakeholder Coordination - Will the contractor be required to coordinate with local governments, disaster relief organizations, or financial institutions? Are there existing partnership agreements with any state or federal agencies that would affect how the contractor operates?

No. No.

17. Pg 43, Section IV.D – Servicing & Communication Responsibilities: Customer Support & Communications - Will the contractor be responsible for applicant communication beyond loan processing (e.g., ongoing support, loan status updates, dispute resolution)?

Yes, the Contractor will serve as the customer-facing agent of the department. See Exhibit A, Scope of Work, Section III.G., Customer Service Requirements.

18. Exhibit A – Scope of Work, if applicable: On-the-Ground Support - Will the contractor be required to provide on-the-ground support during immediate disaster response, or will all work be conducted remotely? If on-site support is required, what are the anticipated response time and resource expectations?

19. Not explicitly stated – Clarification Needed in Exhibit A, Scope of Work: Financial Reimbursement for Third-Party Costs - Will the contractor be responsible for any third-party service costs (e.g., credit checks, title searches), or will those be reimbursed separately?

The Contractor’s compensation from the department is limited to Exhibit A, Scope of Work, Section II.B., Compensation to the Contractor.

20. Exhibit A – Scope of Work, Loan Administration Requirements: Loan Terms & Underwriting Guidelines - Will the selected contractor have any discretion over loan terms, or must all underwriting decisions strictly follow predefined guidelines?

The Contractor must use best practices for loan underwriting. See Section 570.822, Florida Statutes, and Rule 5A-19.001, Florida Administrative Code, for additional information.

21. Exhibit B – Price Sheet, Pricing Model Clarification: Incentives & Pricing Structure - How should respondents structure pricing for loan servicing—fixed fees, per-loan fees, or another model?

The Contractor’s compensation from the department is limited to Exhibit A, Scope of Work, Section II.B., Compensation to the Contractor. Exhibit A, Scope of Work, Section II.B.1.

provides, “The Department shall compensate the Contractor with the percentage provided in Exhibit B, Price Sheet, multiplied by the total value of all loans closed in the preceding month.”

See also Exhibit B, Price Sheet.

22. Exhibit A – Scope of Work, Potential Interagency Collaboration: Existing Partnerships & Data Sharing - Does FDACS have existing partnerships with any federal or state agencies that (e.g., USDA, SBA, FEMA)?

The department coordinates with other entities for the purposes set forth in Section 570.822(7)(b), Florida Statutes.

23. Exhibit A – Scope of Work, Data Management & Historical Loan Performance: Access to Historical Data - Will the awarded contractor have access to historical loan performance data to refine risk models and improve underwriting decisions?

This will be determined after the contract is awarded.

This Addendum is hereby incorporated into and made a part of the above noted Request for Proposal. All other terms, conditions, and specifications of this Request for Proposal will remain the same. For questions regarding this Addendum, please contact the Purchasing Office at (850) 617-7181 or email at Bids@FDACS.gov.

Failure to file a protest within the time prescribed in Section 120.57(3), Florida Statutes, or failure to post the bond or other security required by law within the time allowed for filing a bond shall constitute a waiver of proceedings under Chapter 120, Florida Statutes. Protests must be filed with the Department’s Agency Clerk. Filings may be made physically at:

Florida Department of Agriculture and Consumer Services The Holland Building

600 South Calhoun Street Tallahassee, Florida 32399 mailto:Bids@FDACS.gov