USDA_RFP_QUESTIONS_AND_ANSWERS_03092015_(revised).docx

USDA RD RFP AG-31ME-S-15-0006/0001

LENDER PLACED INSURANCE SERVICES QUESTIONS/ANSWERS

1. The information on the Federal Business Opportunities website and the information in the Solicitation (such as the requirement to have a small business subcontracting plan and the evaluation factor in Section M.4.3) indicate that this acquisition is not a small business set-aside, but the Solicitation includes FAR 52.219-6, “Notice of Total Small Business Set-Aside.” Please confirm this acquisition is unrestricted and not a small business set-aside.

Answer: This Acquisition is an unrestricted full and open utilizing FAR Part 15. FAR 52.219-6 is hereby removed and no longer a part of this solicitation.

2. Section M.4.1 of the Solicitation requires the submission of a small business subcontracting plan (p. 88), but FAR clause 52.219-9, “Small Business Subcontracting Plan,” is not checked off on page 37 of the Solicitation. Please confirm whether FAR clause 52.219-9 applies to the Solicitation and any resulting contract.

Answer: FAR 52.219-9 Small Business Subcontracting Plan applies for Large Business and is hereby considered checked off on page 37 of the solicitation and applies to any resulting contract.

3. The Solicitation contains FAR clause 52.219-25, “Small Disadvantaged Business Participation Program – Disadvantaged Status and Reporting” and FAR clause 52.219-26, “Small Disadvantaged Business Participation Program – Incentive Subcontracting” (p. 37), but the Solicitation does not contain small disadvantaged business participation targets. Please confirm whether FAR clauses 52.219-25 and 52.219-26 apply to the Solicitation and any resulting contract and, if so, please identify the applicable small disadvantaged business participation targets for this acquisition.

Answer: The Goals/Targets are included in amendment 0001 to this Solicitation.

4. The Minimum Qualifications in Section L-4 of the Solicitation (p. 80) are not stated evaluation criteria in Section M of the Solicitation. How will these minimum qualifications be evaluated? For example, will they be evaluated on a pass/fail basis, or are they part of the qualitative evaluation criteria in Factor 1, Technical Approach; Sub-factor 1, Compliance; or Factor 1, Technical Approach, Sub-factor 2, Relevant Experience?

Answer: CSC agrees with a pass/fail for this element but this decision will need to be determined by Procurement.

5. Is the requirement to detail an offer OR’s “Corporate Experience” in Section L.4.9 of the Solicitation (p. 81) the same as the requirement to provide past performance information? If so, please confirm that this “Corporate Experience” information falls outside of the 30-page limit for the Technical Proposal.

Answer: The Corporate Experience is dealing with “Resumes” and the Past Performance is the performance history of the company.

6. Section M.4.4 of the Solicitation (p. 90) requires the submission of a staffing plan, but that is not a requirement in Section L of the Solicitation. Please advise whether the staffing plan should be included as part of the Technical Proposal and, if so, whether the 30-page limit for the Technical Proposal includes the staffing plan.

Answer: Yes

7. Section L of the Solicitation ends on page 83 and Section M of the Solicitation starts on page 87, but there are no pages 84-86. Please advise if there are missing pages, if pages 84-86 are intentionally left blank, or if this is a clerical error.

Answer: This is a clerical error and there are no pages missing and will be corrected as an attachment in amendment 0001.

8. Is any supporting documentation that would be included as exhibits to demonstrate or validate statements considered past performance and not included in the 30-page limit of the Technical proposal?

Answer: Yes

9. Section G.4.3 of the Solicitation provides that travel expenses will be paid on a cost reimbursement basis in accordance with the Federal Travel Regulations. How should offerors’ price anticipate Travel Expenses in CLINS 0003-4003? Will USDA be providing an anticipated cost for Travel Expenses for use in USDA’s evaluation and initial funding purposes?

Answer: A Not-To-Exceed (NTE) amount will be input for the travel CLIN at time of award.

10. Factor 1, Technical Approach, Sub-factor 1 – Compliance identified in Section M.4.1 of the Solicitation (p. 88) is not identified in Section L of the Solicitation as something that an offeror must include in its Technical Proposal. Where in an offerors’ proposal, does the USDA/RD want offerors to demonstrate its compliance with the listed applicable regulations in Section M.4.1? \

Answer: Refer to solicitation pages 82, 83.

11. How does the USDA/RD want an offeror to demonstrate its compliance with the listed applicable regulations in Section M.4.1 of the Solicitation (p. 88) (e.g., by providing a statement of compliance or a narrative description of policies and procedures used to ensure compliance)?

Answer: Offeror can determine the best approach.

12. Will Factor 1, Technical Approach, Sub-factor 1 – Compliance identified in Section M.4.1 of the Solicitation (p. 88) be evaluated on a pass/fail basis or on a qualitative basis using the adjectival ratings in Section M.5 of the Solicitation (pp. 91-92)?

Answer: CSC believes should be a pass/fail situation.

13. The aspects of relevant experience listed in Section M.4.1 of the Solicitation (p. 88) that will be evaluated as part of Factor 1, Technical Approach, Sub-factor 2, Relevant Experience, are not identical to the required experience listed in Sections L.4.1-L.4.9 of the Solicitation. Please advise whether all of the elements of relevant experience listed in Sections L.4.1 – L.4.9 of the Solicitation will be evaluated as part of Factor 1, Technical Approach, Sub-factor 2, Relevant Experience.

Answer: Yes, all of the experience in Sections L.4.1 –L.4.9 will be evaluated in the Technical Approach Sub-Relevant Experience.

14. Some of the representations and certifications included in Section K of the Solicitation do not appear to apply to the Solicitation and resulting contract given the scope of work in the contract and the fact that FAR contract clauses underlying the representations and certifications are not included in the contract. Please confirm whether offerors need to complete the following representations and certifications in Section K:

a. FAR 52.222-48, “Exemption from Application of the Service Contract Labor Standards to Contracts for Maintenance, Calibration, or Repair of Certain Equipment – Certification” (FAR 52.222-41, “Service Contract Act of 1965,” is not in the Solicitation.)

Answer: FAR 52.222-41 TO BE INCLUDED IN THE SOLICITATION FAR 52.222-48 TO BE REMOVED.

b. FAR 52.222-52, “Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services – Certification” (FAR 52.222-41, “Service Contract Act of 1965” is not in the Solicitation.)

Answer: FAR 52.222-52 TO BE REMOVED

c. FAR 52.223-1, “Biobased Product Certification” (FAR 52.223-2, “Affirmative Procurement of Biobased Products Under Service and Construction Contracts” is not in the Solicitation, and the contract will not involve the use of USDA designated items at http://www.biopreferred.gov or 7 CFR part 3201.)

Answer: FAR 52.223-1 and FAR 52.223-2 are hereby removed from the solicitation

d. FAR 52.223-4, “Recovered Material Certification” (FAR 52.223-17, “Affirmative Procurement of EPA-designated Items in Service and Construction Contracts” is not in the Solicitation, and the contract will not involve the delivery or specify the use of EPA-designated items.)

Answer: FAR 52.223-17 is hereby removed from the solicitation.

e. FAR 52.225-2, “Buy American Certificate” (FAR 52.225-1, “Buy American Act – Supplies” is not in the Solicitation.)

Answer: FAR 52.225-2, FAR 52.225-1 is hereby added to the solicitation.

f. FAR 52.225-4, “Buy American – Free Trade Agreements – Israeli Trade Act Certificate” (FAR 52.225-3, “Buy American—Free Trade Agreements-Israeli Trade Act” is not in the Solicitation.)

Answer: FAR 52.225-3 is hereby added to the solicitation.

g. FAR 52.225-6, “Trade Agreements Certificate” (FAR 52.225-5 Trade Agreements” is not in the Solicitation.)

Answer: FAR 52.225-5 is hereby added to the solicitation.

h. FAR 52.225-18, “Place of Manufacture” (the Solicitation is not predominantly for the acquisition of manufactured end products.)

Answer: FAR 52.225-18 is hereby removed from solicitation.

i. FAR 52.227-15, “Representation of Limited Rights Data and Restricted Computer Software” (FAR 52.227-14, “Rights in Data – General” is not in the Solicitation.)

Answer: FAR 52.227-14 is hereby included in the solicitation.

15. The current CLIN form in Section B-6 of the Solicitation (pp. 4-8) only includes CLINs for Single Family Housing Lender Placed Insurance and Multi-Family Housing Lender Placed Insurance and does not include sub-CLINs for Lender Placed hazard coverage, Lender Placed flood coverage, and Lender placed wind only coverage. Please advise whether the USDA/RD wants offerors to propose a single price for these three different types of policies, or if the USDA/RD intends to modify the CLIN structure to include these three different types of policies as sub-CLINs under each of the Single Family Housing Lender Placed Insurance CLINs and the Multi-Family Housing Lender Placed Insurance CLINs for the base year and all option years.

Answer: Yes, each of these types of policies needs a separate CLIN for Single-Family with sub CLIN for hazard, flood and wind only. A separate CLIN for Multi-Family Housing with a sub CLIN for hazard, flood and wind only. The CLIN form will need to be revised by contracting for these items. Same as in previous contracts.

16. The current CLIN form in Section B-6 of the Solicitation (pp. 4-8) does not include a CLIN or a sub-CLIN for check printing services described in Sections C1.2 and C5 of the Solicitation. Please advise whether offerors should include the pricing for these services in one of the CLINs (and if so, which one) or if the USDA/RD intends to modify the CLIN structure to include these services as separately priced CLINs for the base year and all option years.

Answer: There will need to be a separate CLIN for check printing services. CLIN will need to be added. No checks will be sent to taxing authorities or borrowers.

17. The current CLIN form in Section B-6 of the Solicitation (pp. 4-8) does not include a CLIN or a sub-CLIN for borrower notification services described in Section C8 of the Solicitation. Please advise whether offerors should include the pricing for these services in one of the CLINs (and if so, which one) or if the USDA/RD intends to modify the CLIN structure to include these services as separately priced CLINs for the base year and all option years.

Answer: There will need to be a separate CLIN for borrower notifications services. CLIN will need to be added.

18. Will the USDA/RD provide offerors with a property listing including address and insured value for the 24,292 Multi-Family Housing loans for underwriting purposes?

Answer: No

19. Sections C1.2 and C5 of the Solicitation reference vacancy as an extended peril of the Lender Placed Insurance policy. Can the USDA/RD clarify its intent with regard to the required vacancy clauses in such policy?

Answer: Vacant properties must be insurable.

20. Sections C1.2 and C5 of the Solicitation references natural disasters in this section. Does the term “natural disasters” include earthquake coverage?

Answer: No

21. In Section C1.2 of the Solicitation, the USDA/RD is seeking check printing services for disbursement to insurance vendors, taxing authorities, and borrowers. Please clarify what types of checks will be issued to borrowers.

Answer: The vendor will only be required to send checks to insurance carriers. It is not the intent of RD to have checks sent to borrowers or taxing authorities.

22. In Section C2.4, is it USDA/RD’s desire for vendor to perform all tracking services including mail processing of insurance policies, endorsements, cancellations, and premium disbursements; or is USDA/RD seeking offeror to provide best practices through process improvements?

Answer: Insurance tracking is done internally at RD. Offeror to provide best practice guidance only.

23. Section C.5.1C references “Replacement Cost Guarantee Clause.” Is USDA/RD seeking coverage in excess of the government’s interest in a property?

Answer: Yes

24. Can the USDA/RD clarify the binder period for flood insurance policies? Section C8 of the Solicitation states a 45-day binder period, which conflicts with Section C7 of the Solicitation, which states 60 days.

Answer: 60 days

25. Section C8 references telephone calls to borrowers. Is it USDA/RD’s intent to outsource all borrower insurance related calls to the lender placed insurance offeror?

a. If so, will the lender placed insurance vendor have access to the MortgageServ system to update borrowers’ insurance information real-time?

Answer: There is no intent to have offeror make outbound calls to RD borrowers.

b. Typically, outreach calls are made to agents and borrowers prior to the expiration of the homeowner’s insurance policy and lender placed notifications. Does the USDA/RD want the lender placed insurance offeror to perform outbound calls to borrowers or agents to obtain homeowners’ insurance?

Answer: Not RD’s intent.

c. If so, will the lender placed insurance offeror have access to the MortgageServ system and data, including the current homeowner’s insurance agent, in order to perform this service?

Answer: Not applicable

26. Section C12- Loss Claims: Is it USDA/RD’s desire to have a master policy to cover the government’s interest?

Answer: Yes

a. If so, please define government’s interest as it appears to conflict with last known coverage amount and Replacement Cost Guarantee Clause in Section C5.

Answer: Coverage should be up to the replacement cost.

b. Please define USDA/RD’s intent of this statement, “provide a consistent and exclusive contact for the government claim processors.”

Answer: RD expects the vendor to have a dedicated staff for RD loss claims.

c. Is it USDA/RD’s intent to have dedicated offeror personnel versus exclusive claim personnel to the US government?

Answer: RD expects the vendor to have a dedicated staff for RD loss claims.

27. Section 12.1 Payment of Loss Claims:

a. Can the USDA/RD provide a definition or explanation as to what is meant by “property inspections?”

Answer: Property Inspections will be for lender placed claim investigations. Inspections to include pictures, reports and data outlining any damages, cost estimates and repairs done on RD properties.

b. Shall the offeror interpret “property inspections” under this section to mean “property inspections” associated with lender placed claim investigations?

Answer: Yes

28. Network Access Security Policy Attachment J-4

a. Policy Detail 1.d: Is the offerer required to use OCIO-ITS Internet service provider, or can an offeror utilize an approved Internet service provider?

Answer: The vendor can utilize an approved internet service provider.

b. Policy Detail 2a&2b: Can the USDA/RD clarify if a warning banner is only required if web portal is accessed by the general public or USDA/RD borrowers?

Answer: Yes a warning banner is required.

29. Section 23.1 Ownership of Data:

a. Section K of the Solicitation contains FAR 52.227-15, “Representation of Limited Rights Data and Restricted Computer Software.” Pursuant to FAR 27.409(c), FAR clause 52.227-15 should only be included in solicitations that include FAR clause 52.227-14, “Rights in Data – General.” Since the Solicitation does not include FAR clause 52.227-14, are offerors required to execute the certification contained in FAR 52.227-15?

Answer: Clause 52.227-14 is hereby included in the solicitation and applies to any resulting contract.

b. Section C23.1 of the Solicitation is inconsistent with the FAR in that it states that the contractor must turn over to the USDA/RD “all information resources developed in support of the contract, including any databases and associated formats and all tools” regardless of the source of the funding of such information resources or whether such technical data or computer software are required deliverables under the contract. Section C23.1 of the Solicitation also provides that “All working papers, documents, photocopies, computer data, and any other information of any kind collected, generated, or received by the Contractor in connection with the contract work are the property of the USDA/RD,” again, regardless of the source of funding and regardless of whether the technical data and computer software are required deliverables under the contract. Please confirm whether USDA/RD is requiring the contractor to provide the USDA/RD ownership of, or a license to, information resources, working papers, documents, photocopies, computer data, computer software, databases, tools, etc. that are pre-existing and developed exclusively at private expense and/or developed under the contract exclusively at private expense (such as the customized interface required on page 22 of the Solicitation (Section C.16). Please also provide a complete list of the technical data and computer software USDA/RD will require the contractor to deliver to USDA/RD under the contract.

Answer: USDA is not looking for licenses or ownership of system. We are looking for vendor to provide RD data in a readable format for a reasonable amount of time after contract termination.

c. Under Section C23.1 of the Solicitation, is USDA/RD seeking to buy or license from the contractor software systems that are not commercially available, or is it USDA/RD’s intent to require the contractor to only provide USDA/RD with access to the contractor’s web portal after termination of the contract for a specified period of time (e.g. 90 days after termination)?

Answer: It is RDs intent to access the vendor’s web portal upon termination of contract for a reasonable period of time up to 1 year.

d. Section C23.1 prohibits the contractor from keeping any “information resources, paper, or electronic copies of information after the completion or termination of the contract without the express written consent of the CO.” However, it is important for contractors to be able to maintain a copy of records generated in its performance of the contract for audit and Contract Disputes Act purposes and in accordance with FAR Subpart 4.7, “Contractor Records Retention.” Please confirm whether the contractor will be permitted to keep one (1) copy of all “information resources, paper, or electronic copies of information” for up to six (6) years after the expiration or termination of the contract.

Answer: Vendor is allowed to retain data in compliance with State, Federal and Insurance Carrier guidelines.

30. Section H.1 Security: Vendor is required to review and acknowledge the “User Agreement/Rules of Behavior” and the “Acceptable Use Policy.” Can USDA/ RD provide copies of these policies to ensure compliance?

Answer: Upon award the vendor will be provided policies they must comply with outlining all required Government training courses provided through USDA’s AgLearn web based system.

31. Section H.3 Accessibility Consideration

a. Since the Solicitation does not require the delivery of any computer hardware, does Section H.3, Accessibility Consideration, only apply to computer software that a contractor is required to deliver to the USDA/RD under the Solicitation?

Answer: No. The requirement applies to all hardware and software applications utilized by USDA/RD.

b. Does Section H.3 Accessibility Consideration apply to software systems that are not commercially available and that the USDA/RD seeks to purchase or license from offerors, as stated in Section 23.1 of the Solicitation (p. 26)?

Answer: USDA/RD has no intent to purchase or license additional software.

c. The Solicitation contains FAR 52.222-39, “Notification of Employee Rights Concerning Payment of Union Dues or Fees” (DEC 2004) (Section I-8, p. 46), which has been removed from the FAR and replaced with FAR 52.222-40, “Notification of Employee Rights Under the National Labor Relations Act” (DEC 2010). Please confirm which clause applies to the Solicitation.

Answer: FAR 52.222-39is hereby removed. FAR 52.222-40 is hereby added to the solicitation.

d. Section I-5 of the Solicitation contains FAR 52.217-4, “Evaluation of Options Exercised at Time of Contract Award,” which states that the government will evaluate the total price for the basic requirement together with any option(s) exercised at the time of award. This is inconsistent with Section M.8 of the Solicitation (p. 92), which states that the government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. This standard is the one found in FAR 52.217-5, “Evaluation of Options.” Please clarify how the USDA/RD will evaluate the options in its price evaluation.

Answer: FAR 52.217-5 is hereby added to solicitation and FAR 52-217-4 is hereby removed.

e. Section M.4.3 of the Solicitation (p. 90) describes how USDA/RD will evaluate Factor 3, Small Business Participation as the Prime Contractor, and defines the Prime Contractor as the entity “performing greater than 50% of the work.” Please confirm that only a small business offeror/awardee that performs more than 50% of the work can be considered the Prime Contractor.

Answer: A small business offeror/awardee shall perform a minimum of 51% of the total work to be considered the Prime Contractor.

f. Section M.4.3 of the Solicitation (p.90), provides that the Prime Contractor is “defined as performing greater than 50% of the work.” Please confirm that “the work” is defined as the entire value of the contract price, inclusive of the lender placed insurance premiums.

Answer: It is confirmed that “the work” is defined as the entire value of the contract price, inclusive of the lender placed insurance premiums.

32. There are no volumes or provisions for Unit Rates associated with the schedule of services.

a. Is the Lender Placed Insurance Row for insurance rates for those states?

i. If yes, what if other states have different rates? Each carrier has different filings with the states so this may occur.

b. Outside of Lender Placed Insurance Rates, where within Schedule B do we include the fees associated with tracking services?

Answer:

A: not sure of question need further clarification of what is being asked.

B: It is not RDs intent to have a tracking service provided by the vendor this process is done by RD staff.

33. Should insurance rates be requested we will need the following data to provide to the carriers:

a. List of all loans within the USDA portfolio

b. Loss history on the lender placed insurance portfolio over the last 3 years.

Answer:

A: RD can provide zip code, state, UPB and flood zone only. See Attached.

B: See Attached.

34. Please provide the total number of total loans in your portfolio, broken down by:

a. Total number of Single Family Home Loans

b. Total number of Multi Family Home Loans

Answer: Refer to Solicitation page 9.

35. Please confirm that when a non-escrowed loan goes to force placement and Loan Protector sends notice on the file to USDA, that USDA can then set up the escrowed account?

Answer: RD will set up the escrow account.

36. Please provide a copy and information about incumbent contract/contractor and annual contract value.

Answer: Contract value is provided in question below at $3,889,700.00

37. Will there be a cutover of lender placed coverage or will policies stay under the incumbent program until they come up for renewal?

Answer: Until renewal

38. Does current policy/bill information reside in LoanServ or the incumbent’s system?

Answer: In LoanServ

39. Can you further elaborate on the scope of work, deliverables and timeframe related to FISMA Certification and Accreditation?

Answer: No

40. I am contacting you to follow-up on an inquiry I submitted earlier last week and am wondering if an incumbent exists for the Lender Placed Insurance services and if so, could you please provide the incumbent vendor and the corresponding contract number?

Answer: The incumbent vendor is Proctor Financial Inc. under contract number AG-31ME-08-C-1044 and contract number AG-31ME-P-14-0004.

41. What is the value of the current contract?

Answer: $3,889,700.00

42. What are the proposed deductibles?

Answer: See solicitation page 13.

43. What is the geographic split of values per State and Tier 1 & 2 per state (we want to identify the CAT exposure).

Answer: See portfolio listing attached.

44. We would like a comprehensive 3 year loss record (excel format would be great).

Answer: See ratio attached.

45. What is the largest loan amount?

Answer: RD Single Family Housing allows for loans up to $500,000.00 and Multi-Family Housing up to 3 million.

46. In order to begin to model the portfolio to provide insurance rates, we would request the following items in an electronic format:

a. Complete list of in-force lender placed policies (include all states and US territories and possessions.). This list should include the following fields in a data format:

Street Address City State Zip Code Coverage Amount Coverage type (Hazard, Flood, Wind) Lien Position (1st, 2nd, HELOC) Type Property (Single Family, Multi Family Residential - if multi family please note the number of units per location)

Sample:

Answer: See solicitation for portfolio information. USDA cannot provide specific loan level information to include addresses, lien positions, coverage amounts and types of coverage.

b. If available, a list of the entire portfolio by state, county and zip code. (include US territories or possessions) with the same fields/data as above (coverage would equal loan balance)

Answer: See Portfolio list attached.