AG-31ME-S-17-0007_Real_Estate_Tax_Services_Solicitation_FINAL.pdf

El 28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND

DELIVER ALL ITEMS SET FORTH OR OTHERVVISE IDENTIFIED ABOVE AND ON ANY

ADDITIONAL SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED

El 29. AWARD OF CONTRACT: REF. OFFER

DATED YOUR OFFER ON SOLICITATION

• (BLOCK 5), INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE

SET FORTH HEREIN, IS ACCEPTED AS TO ITEMS:

30a. SIGNATURE OF OFFEROR/CONTRACTOR 31a. UNITED STAT AM A (SIGNATURE OF ONTRACTING OFFICER)

30b. NAME AND TITLE OF SIGNER (Type or print) 30c. DATE SIGNED 31b. NAME OF CONTRACTING 0

Berel Dorfman

31c. DATE SIGNED

02/14/2017

R ( Orp YPe

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS

OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

1. REQUISITION NUMBER PAGE 1 OF

2. CONTRACT NO. 3. AWARD/EFFECTIVE

DATE

4. ORDER NUMBER 5. SOLICITATION NUMBER

AG-31ME-S-17-0007

6. SOLICITATION ISSUE

DATE

02/14/2017

7. FOR SOLICITATION

INFORMATION CALL:

a. NAME

HAROLD FORD

b. TELEPHONE NUMBER (No collect calls)

202-692-0011

8. OFFER DUE DATE/

LOCAL TIME

03/01/2017

12:00 ET

9. ISSUED BY CODE 10. THIS ACQUISITION IS X UNRESTRICTED OR SET ASIDE: % FOR:'

USDA, RURAL DEVELOPMENT

PROCUREMENT MANAGEMENT DIVISION

1400 INDEPENDENCE AVENUE, SW

WASHINGTON, DC 20250

WOMEN-OWNED SMALL BUSINESS

SMALL BUSINESS (WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

HUBZONE SMALL SMALL BUSINESS PROGRAM NAICS:

BUSINESS

EDWOSB 531390

SERVICE-DISABLED

SIZE STANDARD: VETERAN-OWNED

SMALL BUSINESS 8(A) $7.50

11. DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

SEE SCHEDULE

12. DISCOUNT TERMS

13a. THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13b. RATING

14. METHOD OF SOLICITATION

RFQ IFB X RFP

15. DELIVER TO CODE 16. ADMINISTERED BY CODE RD-31ME

USDA, Rural Development Customer Service Center (CSC) 4300 Goodfellow Blvd. Bldg. 105, St. Louis, MO 63103

USDA, Rural Development, Procurement Management Div.

1400 INDEPENDENCE AVENUE, SW

WASHINGTON, DC 20250

17a. CONTRACTOR/ CODE FACILITY 18a. PAYMENT WILL BE MADE BY CODE

OFFEROR CODE

TELEPHONE NO.

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN

OFFER

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW IS CHECKED fl SEE ADDENDUM

19.

ITEM NO.

20.

SCHEDULE OF SUPPLIES/SERVICES

21.

QUANTITY

22.

UNIT

23.

UNIT PRICE

24.

AMOUNT

This is a solicitation for an Indefinite-Delivery/Indefinite Quantity(IDIQ) Contract for Real Estate Tax Support Services.

Period of Performance is 5 years from Date of Award.

Task Orders will be placed based on Firm-Fixed Price Services described in this solicitation.

(Use Reverse and/or Attach Additional Sheets as Necessary)

25. ACCOUNTING AND APPROPRIATION DATA 26. TOTAL AWARD AMOUNT (For Govt. Use Only)

EI 27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDENDA ARE MARE NOT ATTACHED 27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA ARE ARE NOT ATTACHED

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA- FAR (48 CFR) 53.212

AG-31ME-S-17-0007

SCHEDULE OF PRICES

PERIOD OF PERFORMANCE: 4/01/2017 — 3/31/2022

CLINS SUPPLIES/SERVICES EST PER FIRM FIXED EXTENDED

AMT UNIT PRICE PER LOAN ORG. PRICE

Loan Originations 0001 Establishing Tax Service 8,000* Loan Orig.

Total Performance Period Price Per Year: $

Total Performance Price for ALL FIVE(5) Years: $

• Estimated amount of new loan originations per year. Should you wish to price differently for other years during the period of performance, please state those rates here as well.

February 14, 2017

To: Contractors interested in providing Real Estate Tax Information on Escrowed and Non-Escrowed Single Family and Multi-Family Properties Portfolio of Loans.

Subject: Request for Proposal (RFP) Solicitation Number AG-31ME-S-17-0007 to award an Indefinite Delivery Indefinite Quantity Contract Vehicle.

United States Department of Agriculture (USDA), Rural Development (RD) is issuing this competitive RFP to solicit contractors for the purpose of entering into a resultant Indefinite Delivery Indefinite Quantity (IDIQ) contract with associated task orders for services. This acquisition has a period of performance of five (5) years from date of award. RD will conduct this unrestricted acquisition using Subpart 12 and 15 of the Federal Acquisition Regulation (FAR). If you are interested in this acquisition, you may participate by submitting your response in accordance with the following instructions.

Submissions shall be sent electronically via email.

Offerors are required to submit both a written Technical Proposal and Price Proposal for the purposes of assuring that the prospective Contractor is fully cognizant of the scope of this contract and has the capability to complete all Statement of Work (SOW) requirements.

Offerors are to provide a total solution using their current and previous expertise. Offerors are encouraged to propose the best solution for our needs and the most efficient pricing possible

If you have questions regarding this requirement, please submit your inquiries immediately via email but no later than Tuesday, February 21,2017 at 12:00 pm EST to Harold Ford Harold.Ford@wdc.usda.gov.

Please be advised that the Government reserves the right to transmit/post those questions and answers of a common interest to all prospective Offerors. Answers to questions will be shared with via the FBO.GOV web portal where the solicitation is posted.

Award will be based upon overall best value to the Government.

All potential Offerors are cautioned to strictly adhere to the provisions of this RFP regarding conflicts of interest. Any such matters must be brought to the attention of the Contracting Officer at or before the time proposals are due. Please be advised that if an actual or potential personal or organizational conflict exists between your firm and RD that cannot be resolved, avoided, or mitigated to the satisfaction of RD then your firm shall not be considered eligible for an award.

All offerors shall adhere to the following proposal instructions and submit their proposals with the completed Quotation Cover Page SF 1449 . Offerors shall represent that their responses are valid for a period of no-less-than 60 days from the due date for submission.

The technical proposal shall not exceed the number of respective pages as identified below in the Technical Quotation Instructions, past performance information. There is no page limit for price quotations. A page is defined as one side of an 8 1/2" x 11" sheet of white, un-textured paper, single-spaced, with at least one inch margins on all sides, using type not smaller than 12 characters per linear inch or be smaller than twelve (12) point, with no more than six (6) lines per vertical inch.

The written Technical and Price proposals shall be provided electronically via email to Harold Ford at harold.ford(&,wdc.usda.gov by 12:00 pm EST on Wednesday, March 1, 2017.

SUBMISSION REQUIREMENTS

Both proposals (Technical and Price) SHALL be dated and signed by those authorized to commit your firm and your quote MUST cite the appropriate Schedule Contract Number in your quote submission along with your tax identification number (TIN) and Dun & Bradstreet Number (DUNS), North American Industrial Classification System (NAICS), Standard Product Code (SPC) and other pertinent information found on the Quotation Cover Page. Please ensure that your firm is System for Award Management (SAM) Certified (http://wvvw.sam.gov).

ASSUMPTIONS OR CONDITIONS

Offerors must acknowledge all (if any) assumptions or conditions with any of the terms and conditions of this solicitation including the SOW. If not noted in this section of your Quote, it will be assumed that the offeror proposes no assumptions for award, and agrees to comply with all of the terms and conditions as set forth herein.

TECHNICAL & PRICE QUOTE INSTRUCTIONS

To facilitate evaluation of proposals, offerors shall provide a technical and separate price quotation that includes name and address of company including TIN, signature of person authorized to commit company, and the following information in two (2) volumes:

Volume I — Technical Quote Offerors are required to provide a written technical quotation that explains their proposed technical approach for performing the required support services described in the SOW and its plan to meet the required services within the contract period of performance. The discussion should, at a minimum, include:

A. Minimum Qualifications:

Note: The offeror shall ensure that personnel proposed are current in the knowledge required to support the effort. The personnel proposed must be available to be assigned to the project.

Corporate Experience

• Years of Experience relevant to this work

• Technical Qualification - Type of similar services provided

• Demonstrated experience related to rural housing and community projects

Offerors are required to describe their past performance history on three (3) contracts with similar size, scope, and complexity to the activities identified in the SOW.

Small Business Subcontracting Plan (subcontractors) In accordance with FAR 52.219-9, entitled, "Small Business Subcontracting Plan" is required by all vendors who are not classified as a Small Business. An overview of the Small Business Subcontracting Plan is required with each submission, and a copy of a detailed plan will be incorporated into the final award. At a minimum identification of the types of services to be subcontracted and subcontracting goals are required in the Small Business Subcontracting Plan overview.

The failure of any Contractor to comply in good faith with FAR clause 52.219-8, entitled "Utilization of Small Business Concerns" is incorporated in this contract. Any material breach of compliance with Small Business Subcontracting Plan will be subject to the remedies reserved to the Government under FAR Clause 52.219-6 entitled, "Liquidated Damages Subcontracting Plan."

RD is interested only in quotations that demonstrate the Offerors requisite expertise in performing engagements of this type as illustrated by the offerors description of how it proposes to perform the requirements set forth in the SOW. Therefore, an offerors technical quotation should not merely state that the "offeror" will perform in accordance with the SOW" or similar verbiage.

Volume II — Price Proposal Your signed and dated Price Proposal shall be a separate volume (marked "Price Proposal," and shall include document number and date of issuance) from your Technical Proposal. The Price Proposal shall be submitted as a Firm Fixed Price for services.

General Instructions:

Proposals submitted in response to this solicitation shall be furnished in the following format with the number of copies as specified below.

• RD will evaluate quotes in accordance with the evaluation criteria set forth in this solicitation.

• Offerors shall submit their quotes in accordance with the evaluation criteria set forth in this solicitation.

• One (1) email electronic copy of the technical quote, which is limited to 25 pages (Times New

Roman, 12 Font).

One (1) e-mailed electronic copy of the price proposal, which includes the Pricing Schedule. The price Proposal submitted shall be based on your most current pricing utilizing any and all discounts.

Delivery of Proposals:

The RFP due date (closing date) is, 12:00 pm EST on Wednesday, March 1, 2017. The proposals shall be provided electronically to the email address listed below. Inquiries regarding this procurement may also be submitted electronically to the address below.

E-MAIL: Harold.Ford@wdc.usda.gov

Quotations submitted after the deadline shall not receive consideration by RD.

FAR 52.212-2 Evaluation—Commercial Items (Jan 1999)

EVALUATION CRITERIA

1. Source Selection

Selection will be based on evaluation of the proposals received in accordance with technical approach response to the Statement of Work and the tasks, and duties described therein. Award will be made to the Offeror whose combination of technical and price proposal represents the best value to the Government and is most advantageous, price and other factors considered. The technical factors are weighed much more heavily than price.

Technical evaluators will not have access to price data until such time as they present to the Contracting Officer a final technical rating of all proposals. A review of the combination of the two evaluations, technical and price, will then be conducted to select the optimum proposal(s) on which further negotiation will be conducted.

Submissions that are unrealistic in terms of technical commitment or unreasonably low or high in price will be deemed reflective of an inherent lack of technical competence or indicative of failure to comprehend the complexity and risk involved in the contract requirements and may be grounds for rejection. Evaluation factors for award are listed below.

Evaluation Factors:

The SOW serves as the Government's baseline requirements. All proposals will be evaluated against these requirements. Award will be based on the tradeoff method resulting in the best value to the government, considering all of the stated evaluation factors. Award may be made with or without discussions.

The Government reserves the right to award this contract based on initial offers. It is understood that your proposal will become incorporated into the official file/contract.

The evaluation factors are listed in descending order of importance. Factor 1 and its sub-factors are more than twice as important as factor 2. Factor 2 is slightly more important than Factor 3 and Factor 3 is slightly less important than 4.

Although price is not weighted as a factor for evaluation in the percentage formula below, if two (2) or more Offerors proposals are determined to be relatively equal with respect to non-price evaluation factors, price may become the determining factor in the award decision. Therefore, offerors are encouraged to submit competitive pricing. The evaluation factors and sub-factors are identified below:

Factor 1 — Technical Approach —55% Sub Factor 1 — Compliance 25% Sub Factor 2 — Corporate Experience 15% Sub Factor 3 — Relevant Project Experience— 15%

Factor 2 — Past Performance — 20% Factor 3 — Quality Control- 10% Factor 4 — Personnel — 15%

Evaluation Factors

Factor 1 — Technical Approach

The candidate's Technical Approach factor will be evaluated on assessed strengths, weaknesses, deficiencies, and risks. Sub-factor ratings will be individually evaluated. Sub-factor ratings will be rolled up into an overall rating for the Technical Approach Factor. Failure to comply with the outlined requirements of this solicitation may result in a lower rating for this factor. It is imperative that the Proposals demonstrate a thorough knowledge of USDA business practices and program details and how these practices can be automated to provide value to the Government and citizens.

Technical Approach and all related Sub-factors will be evaluated using the adjectival rating as shown below to determine how well the Offeror understands the technical requirements as expressed in the Offeror's Technical Response to this RFP. One of the following adjectival ratings will be assigned:

ADJECTIVAL

RATING

DEFINITIONS

Excellent A comprehensive and thorough proposal of exceptional merit with one or more significant strengths. No deficiency or significant weakness exists.

Very Good A proposal having no deficiency and which demonstrates over-all competence. One or more significant strengths have been found, and strengths outbalance any weaknesses that exist.

Good A proposal having no deficiency and which shows a reasonably sound response. There may be strengths or weaknesses, or both.

As a whole, weaknesses not off-set by strengths do not significantly detract from the offeror's response.

Fair A proposal having no deficiency and which has one or more weaknesses. Weaknesses outbalance any strengths.

Poor A proposal that has one or more deficiencies or significant weaknesses that demonstrate a lack of overall competence or would require a major proposal revision to correct.

Sub-Factor 1 — Compliance

• Demonstrate regulatory compliance:

Real Estate Settlement Procedures Act (RE SPA regulation enacted 1974) Dodd-Frank Act of 2010 Compliance with Public Law 100-242

Sub-Factor 2 — Corporate Experience

• Demonstrated experience with conversion of existing loans

• Demonstrated experience with FiServ/LoanSery servicing and UNIFI loan origination system.

• Demonstrate experience with Delinquent Tax Search.

• Demonstrated experience in Tax Services best practices and security practices.

• Demonstrated experience with RD systems/applications/modules.

• Demonstrated experience with USDA and/or RD policies and procedures.

• Demonstrated experience, ability and capacity to handle challenging and heavy workload demands of a potentially high level of effort necessary for this requirement.

• Demonstrated experience with Federal guidance and mandates that affect the functional activities described in the SOW.

Sub-Factor 3 — Relevant Project Experience

• Service more than one client with FiServ/LoanSery using the standard or custom tax program with automated interfaces.

• Demonstrated experience in interfacing with FiServ/LoanSery loan servicing system.

• Service or have serviced more than one client with a minimum of 200,000 customers.

• Demonstrated experience working with taxation authorities in rural areas with a population less than 35,000. The vendor will have proven experience in procuring real estate tax information in rural and remote locations throughout the US which often do not have on-line access to automated bill/account information.

• Minimum of five (5) years of experience in Real Estate Tax Monitoring Industry.

• Demonstrate experience in performing functional activities as described in the SOW.

Factor 2 — Past Performance

Successful performance/experience in completing items in the SOW. As part of the past performance evaluation, the Government may attribute the experience or past performance of a parent or affiliated company (including Joint Venture prime partner companies and/or a parent or affiliated company that is being otherwise proposed as a subcontractor on this effort) to the proposed prime contractor and/or significant subcontractor(s) where the proposal demonstrates that the resources of the parent or affiliate or predecessor company will affect the performance of the proposed prime contractor and/or significant subcontractor(s). The Government will take into consideration whether the resources of the parent or affiliate company (its workforce, management, facilities or other resources) will be provided or relied upon for contract performance such that the parent or affiliate will have meaningful involvement in contract performance. These contracts (if any) must meet the above "recent" and minimum average annual cost/fee expenditures criteria to be evaluated.

An Offeror shall not be rated favorably or unfavorably if the offeror does not have a record of "recent" and "relevant" past performance or if a record of past performance is unavailable. In such cases the offeror will receive a "Neutral" rating. However, an offeror with favorable, recent, and relevant past performance that meets the minimum average annual cost/fee expenditures indicated above may be considered more favorably than an offeror with no relevant past performance information.

The Government will consider an Offeror's explanation of any problems encountered on any identified contracts, and any corrective actions taken by the offeror.

The overall confidence rating assigned to an Offeror's Past Performance (see below) will reflect a subjective evaluation of the information contained in the oral presentation, if applicable; written narrative;

past performance evaluation input provided through customer questionnaires; and other references, if any, that the Government may contact for additional past performance information.

Past Performance Ratings — The level of confidence ratings set forth below will be used to evaluate the Past Performance factor for each Offeror.

Each of the adjective ratings below has a "performance" component and a "relevance" component as discussed above. As used in the ratings below, the term "pertinent" is equivalent to the term "relevant."

The following adjectival rating guidelines will be used when subjectively assessing both components.

Very High Level of Confidence The Offeror's relevant past performance is of exceptional merit and is very highly pertinent to this acquisition; indicating exemplary performance in a timely, efficient, and economical manner; very minor (if any) problems with no adverse effect on overall performance. Based on the Offeror's performance record, there is a very high level of confidence that the Offeror will successfully perform the required effort.

High Level of Confidence The Offeror's relevant past performance is highly pertinent to this acquisition; demonstrating very effective performance that would be fully responsive to contract requirements with contract requirements accomplished in a timely, efficient, and economical manner for the most part with only minor problems with little identifiable effect on overall performance. Based on the Offeror's performance record, there is a high level of confidence that the Offeror will successfully perform the required effort.

Moderate Level of Confidence The Offeror's relevant past performance is pertinent to this acquisition, and it demonstrates effective performance; fully responsive to contract requirements; reportable problems, but with little identifiable effect on overall performance. Based on the Offeror's performance record, there is a moderate level of confidence that the Offeror will successfully perform the required effort.

Low Level of Confidence The Offeror's relevant past performance is at least somewhat pertinent to this acquisition, and it meets or slightly exceeds minimum acceptable standards; adequate results; reportable problems with identifiable, but not substantial, effects on overall performance. Based on the Offeror's performance record, there is a low level of confidence that the Offeror will successfully perform the required effort. Changes to the Offeror's existing processes may be necessary in order to achieve contract requirements.

Very Low Level of Confidence The Offeror's relevant past performance does not meet minimum acceptable standards in one or more areas; remedial action required in one or more areas; problems in one or more areas which adversely affect overall performance. Based on the Offeror's performance record, there is a very low level of confidence that the Offeror will successfully perform the required effort.

Neutral In the case of an Offeror without a record of relevant past performance or for whom information on past performance is not available, the Offeror may not be evaluated favorably or unfavorably on past performance (see FAR 15.305(a) (2) (ii) and (iv)).

The Offeror must provide evidence that tax research/reports/letters were completed timely and in accordance with the regulations set forth by the Agency. Include references from entities for which the offeror has performed similar services in the areas covered by this contract. Submit documentation to support the Offeror's financial stability. The Government will evaluate the quality of the proposals and any purposed subcontractor's past performance using at a minimum the following criteria:

• A record of conforming to the SOW or specifications and standards of good workmanship and adherence to schedule.

• Ability to successfully complete items in the SOW.

• Offerors Performance Assessment Reporting System and/or references from current and previous like-sized customers which also may include recent CPARS reporting records within the past three (3) years.

• Integration and coordination of all activity needed to execute the contract, specifically the timeliness and quality of problem identification, corrective action plans.

• Conformance to contract requirements and standards of good workmanship related to contracts of similar complexity.

• Timeliness against the completion of the contract task orders, delivery schedules, administrative requirements.

• Predecessor companies (e.g. existing company's historical past taking into account mergers, consolidations, name changes, etc.), if applicable.

• The Offerors reputation of reasonable and cooperative practices and overall concern for the client.

• Demonstrate a past performance providing similar services to the USDA or any other Federal Agency.

• Customer Satisfaction

• Awards and Certifications

The Government will seek to determine whether the Offeror has consistently demonstrated a commitment to customer satisfaction and timely delivery of quality goods and services. The Proposal shall provide information on all relevant contracts that are at least one year in length

Factor 3 — Quality Control

• Demonstrate confidentiality and safeguards for data and information to strict standards of security and confidentiality.

• Demonstrate process controls to ensure accurate data reporting.

• Established methods of assurance that employees are trained in proper handling of customer and Government information.

• Ensure appropriate password security and password change process is maintained.

The Government will seek to determine whether the Quoter has consistently demonstrated a commitment to customer satisfaction with timely delivery of accurate and quality goods and services. The same adjectival ratings matrix used above for Factor 1, will be utilized for Factor 3 — Quality Control.

Factor 4 — Personnel

• Proposals shall contain a staffing plan that demonstrates its ability to provide qualified personnel, the depth of the Contractor's staff, approach to reassignment of personnel, and if needed, plans for recruitment.

AG-3 1ME-S-17-0007

• A Project Manager should be identified and demonstrate through their resume that they have managed similar projects in the past three years as those defined in the Technical Proposal.

• The immediate availability of staff with subject matter expertise is important. Contractor's shall submit a staffing plan that demonstrates its ability to provide qualified personnel, the experience of the Contractor's staff, approach to reassignment of personnel, and if needed, plans for recruitment. The Government will evaluate based on the clarity and rigor of the proposed plan regarding the overall management and integration of all activities required by the SOW.

Qualifications, experience, staffing levels, and readiness of staff identified in the proposed staffing plan will also be evaluated. The Government will evaluate based on the project management and technical expertise of the key personnel.

• Staff designated as "Key Personnel" are:

1. Business Liaison

2. Project Manager

3. Subject Matter Expert

4. Customer Service Representative

• Key personnel required to be dedicated to contract performance for a minimum of 1 year. All replacement key personnel subject to Government approval.

The same adjectival ratings matrix used above for Factor 1, will be utilized for Factor 4 — Personnel.

Use of Other Data for Evaluation

The Government will use data provided by the Offerors in their proposals but may also use data obtained from other sources — such as Dun and Bradstreet reports, DCAA audit reports, available industry/market rates for labor and overhead, etc., including previous awards under GSA. While the Government may elect to consider data obtained from other sources, offerors are solely responsible for providing thorough and accurate information in their proposals.

In the event that the highest adjectivally rated quotation, including technical approach, capability and past performance, is not also the lowest priced quotation, the CO will conduct and document a best value trade off analysis process. This trade-off analysis process will permit the Government to accept other than the lowest priced quotation. The perceived benefits of the higher priced quotation shall merit the additional price. Award will be made to the schedule Contractor that represents the best value.

STATEMENT OF WORK

USDA Rural Development Real Estate Tax Service Contract / Application Software Support and Operations Services

The United States Department of Agriculture, Rural Development (hereby referred to as USDA RD or Agency) provides support and services that improve the quality of life in rural communities.

Section 1. Introduction

Rural Development (hereinafter referred to as RD) intends to procure Real Estate Tax Servicing Support of:

1. Single Family Housing Portfolio escrowed loans. The Contractor selected by RD shall be responsible for all existing loans at time of award and loans that are originated during the period of the contract term.

2. Single Family Housing Loan Portfolio of delinquent real estate taxes on non-escrowed properties.

3. Mulit-Family Housing Loan Portfolio

Section 1.1 Background

Well built, affordable housing is essential to the vitality of communities in rural America. Housing Programs give families and individuals the opportunity to buy, build, repair, or own safe and affordable homes located in rural America. Eligibility for these loans is based on income and varies according to the average median income for each area.

Low interest, fixed-rate Homeownership loans are provided to qualified persons directly by USDA Rural Development. Financing is also offered at fixed-rates and terms through a loan from a private financial institution and guaranteed by USDA Rural Development for qualified persons. Neither one of these home loan programs require a down payment.

The Government (USDA, RD) provides loans to low and moderate income applicants located in rural geographic areas to assist them in obtaining single/guaranteed/multi-family housing through various programs. As of September 30, 2016, the Government had approximately 295,000 Direct Single Family Housing loans that represent just over 267,000 borrowers; Section 502 Direct Single Family Housing loans; Direct Program is approximately 96% escrow and are generally secured by first mortgages on modest dwellings located on non-farm tracts of one acre or less. The Single Family Housing Direct loans are located in each of the 50 states and U.S. territories that include Puerto Rico, and the US Virgin Islands. Since multiple loans may exist on a single property, an escrow account shall only be established on the primary loan. Approximately 8,000 new single family loans are originated per year.

Rural Development (RD) currently processes all loan originations through state offices and approximately 700 field offices. The Customer Service Center (CSC), located in St. Louis, Missouri provides support to the field offices for loan originations and is responsible for most servicing functions.

Currently the Single Family Direct loan program is approximately ninety-six (96) percent escrow and the Hazard and Flood Compliance Section tracks one hundred (100) percent of the customers that are required to maintain a homeowner's, windstorm or flood insurance policy.

As of September 30, 2016, USDA RD had 14,313 Multi-Family Housing (MFH) projects with total units encompassing approximately 428,175 and total loans of 24,088. Currently these loans are not escrowed.

USDA RD Multi-Family Housing programs provide a number of finance options to developers of low-income community housing.

As of September 30, 2016 the RD Guaranteed loan portfolio had 976,022 accounts. RD guarantees loans made by private sector lenders. These lenders generally hold the escrow accounts and first lien position.

RD is currently utilizing FiServ/LoanSery loan servicing and UNIFI loan origination systems.

The focus of the CSCs tax department is to obtain tax information and tax bills by utilizing automated services provided by the Contractor and pay taxes timely.

Section 2 Objective and Scope

Section 2.1 Objective

RD expects, with the assistance of the selected Contractor, to achieve the following goals:

• Comply with Public Law 100-242. This law requires RD to establish and maintain escrow accounts for real estate taxes and insurance premiums for single Family Housing (SFH) borrowers.

• Provide borrowers with the ability to establish an escrow account with RD that allows for monthly deposits, thus ensuring that sufficient funds are available when taxes and insurance premiums are due and payable.

• Maintain a centralized function within RD for the tracking and payment of real estate taxes.

• Establish consistent procedures on a national level for the processing of delinquent taxes on non-escrow loans, and for the payment of tax bills on escrowed loans.

• Reduce foreclosures that result from borrowers having insufficient funds available for real-estate taxes, and/or the lack of financial resources to repay RD advances.

• Implement innovative cost effective/automated methods of servicing tax escrow accounts.

• Complete RD mission of providing supervised credit for homeownership in rural America.

• Utilize a Contractor to obtain tax information on its non-escrowed portfolio, and to obtain tax bills for loans that are established with an escrow account or converted to escrowed loans.

• Establish all borrowers with a tax service for the purpose of obtaining and reporting tax information and bills in an automated format.

• Providing Check printing service when requirements are made by the taxing jurisdiction for a cashier's check or certified funds at no additional costs to RD.

• Only for the purpose of Disaster Recovery in a Catastrophic Level 4 situation (e.g.; Regional devastation with excessive damage to RD office in St. Louis, MO; earthquake, bridge infrastructure depletion, nuclear detonation), Continuity of Operations Plan which incorporates the use/renting of the contractor's facilities and equipment.

• Provide a conversion cost in the event there is a vendor change such as completion of the contract.

• The contractor shall be responsible for filtering the data based on mutually agreed business specifications to identify the government's exposure to loss and/or compliance to regulations. This is loss of a property due to a Tax Sale should the vendor not get their service in place promptly. The contractor shall provide immediate coverage for the portfolio during any transition or development phases.

KEY POINTS:

• RD is an effort to simplify billing and charges for Real Estate Tax Support Services. RD seeks to have full Real Estate Tax Services from a Contractor to include all of the services noted herein this solicitation but be billed and pay only for the initial loan origination charge for the new loan originations. Invoices should only have a single billing line for "New Loan Origination Services".

• Award of this contract does not guarantee the Contractor any minimum number of accounts during the tern of this contract, although an estimate of the number of accounts is provided at around 8,000 new loan originations per year.

• Concurrently with the award of the IDIQ award an order for a minimum of $100,000 in Real Estate Tax Support Services shall be made.

• A ceiling of $10,000,000 in orders has been established for the IDIQ award.

• In accordance with the Shared First Policy for USDA Contracts, the resultant award vehicle from this solicitation shall be made available to ALL entities within the USDA for placing orders for services. The process for placing these orders will be made through contacting the CO of the contract for approval before placing any order directly with Contractor.

Section 3 Description of Services

Section 3.1 Current Single/Guaranteed/Multi Family Housing Loan Portfolio

As stated above, RD currently maintains a portfolio of approximately 295,000 Direct Single Family Housing loans for 267,000 borrowers. As of September 30, 2016, the outstanding principal due on these loans was $15.5 billion. Attachment 1 details the existing portfolio by state. Approximately 8,000 new single-family housing loans are originated each year. This number can go up or down depending on the needs of the public and funding.

RD originates loans on existing dwellings and provides for the construction of single family dwellings that become permanent mortgage loans when the construction is completed. RD will provide financing to qualified borrowers for the parcel of land and provide interim disbursements during the construction period (including tribal land). RD typically issues mortgage loans for thirty-three (33) year term, with a maximum of thirty-eight (38) years. The term of the permanent loan is shortened by the length of time the construction loan was in effect. RD will also provide financing on manufactured housing that has been placed on a permanent foundation. Mortgages on manufactured housing cannot exceed a thirty year term.

As stated above, RD currently maintains a Guaranteed SFH portfolio of approximately 976,022 single family housing loans. As of September 30, 2016, the outstanding principal due on these loans was $116 billion.

As stated above, RD currently maintains a MFH portfolio of approximately 14,313 projects. As of September 30, 2016, the outstanding principal due on these loans was $10.5 billion.

RD provides supervised credit to borrower's that is intended to be temporary in nature. It is anticipated that through agency supervision borrowers will become successful homeowners and will graduate to permanent financing that is available through mortgage lenders in the private sector. Borrowers that meet RD criteria will be reviewed every two years to determine the availability of financing through private sector. Borrowers that meet agency defined criteria will be solicited for graduation to fmancing in the private sector. Borrowers that meet RD criteria will be reviewed every two years to determine the availability of financing through private sector lenders. Local supervisors are required to maintain contacts with local lenders and survey the current rates and terms that might be available to RD borrowers who are considered eligible for graduation to private sector financing. Once the borrower has found financing in the private sector the obligation with RD will be satisfied. Under certain situations RD may elect to subordinate a portion of its debt to the new lending institution. When subordination occurs RD will typically cease all escrow related activities.

Section 3.2 Escrow Management of RD Loans — Current Processes

Section 3.2.1 Loan Servicing

RD is currently utilizing a Real Estate Tax Service Contractor. We receive an automated feed of TAR's- Tax Amount Reporting (these feeds are currently received daily). RD decides which accounts will be paid on the TAR and wires funds to the vendor for payment of the taxes. The Contractor then pays all the taxing authorities. On cases where there is not enough time to turnaround a TAR, then RD will complete a manual payment to that taxing authority. For non-escrowed accounts we utilize automated notice from the Contractor of the tax delinquency and RD decides whether to pay or wait for the redemption rights. On the non-escrowed accounts two delinquency letters (30 days apart) are sent to the delinquent borrowers from the Contractor.

Section 3.2.2 Loan Originations

RD is a nationwide lender. Loan originations are currently handled by field staff located in approximately 700 Local Offices. Local offices are responsible for all program outreach and loan origination activities including initial applicant review; loan application processing; appraisal ordering and tracking; credit report ordering and tracking' underwriting' loan closing activities. The Local Office Staff performs most loan origination activities, and prepares all loan documents through automation. The new loans are uploaded from the Unifi system to FiServ/LoanServ.

RD provides payment assistance for approximately 68% of its current borrowers. During the origination process borrowers are qualified as to their ability to meet Agency guidelines. Borrowers are also qualified as to their need of financial assistance in order for them to become successful homeowners.

While the typical borrower will not meet the income and down payment requirements of the private sector, borrowers must fall within specific income levels based on the size of the household established by RD for each locale. RD will consider multiple loans to borrowers for purchasing a home and for subsequent improvements.

Funds that are available for RD lending activities are appropriated by Congress on an annual basis. RD has little control over the number of new originations closed since the funding for such financing is controlled by Congress.

Section 3.3 Loan Originations — Establishing Tax Service

RD is not able to issue a guarantee of new origination volumes, since funding is ultimately controlled by Congress.

RD's new Loan Origination (UNIFI)/Loan Servicing (FiServ/LoanServ) system will have the capability to interface with the contractor's system for the purpose of establishing tax service on all existing loans as well as new originations.

All new originations boarded onto the new UNIFI/FiServ/LoanSery system will be required to have an escrow account established for both real estate taxes and hazard insurance.

RD will not require the Contractor to perform a tax search for prior real estate tax delinquencies on new loan originations. RD will rely on the work performed by title/abstract companies during the closing of the loan to insure against real estate tax delinquency. The Contractor shall provide delinquency information related to the normal course of doing business. This will enable RD to correct discrepancies with the title/abstract companies.

The Contractor shall utilize electronic transmission of data from the RD loan servicing system UNIFI/FiServ/LoanServ.

The frequency with which automated interfaces will occur for the purposes of establishing new loans under tax service will be bi-weekly, however, it is anticipated that new files will be forwarded to the Contractor on either a daily or weekly basis. The loans forwarded from RD shall be considered to be under tax service immediately upon receipt of the new loan file.

Should the data provided by RD be determined to be inadequate to properly identify the correct tax bills for a given property, the Contractor shall request additional information from RD. Request for additional documentation shall occur within thirty calendar days of receipt of the new loan record. RD will be responsible for providing the information requested within ten calendar days after receipt of the request.

The loan shall be considered under service when RD responds with the corrected information.

All requests for additional information shall be made through the Escrow Servicing Department. Contact individuals will be established by RD prior to submission of the first new loan for tax service.

The Contractor shall be responsible for obtaining all tax information/bills prior to the RD incurring penalties or the loss of discount.

Section 3.4 Conversion

Section 3.4.1 Escrow Accounts

Escrow accounts will be created for existing portfolio loans on a case by case basis. There are two conditions under which escrow accounts for these loans will be established.

1. The borrower requests that an escrow account be established. Existing borrowers are allowed to voluntarily establish an escrow account.

2. RD requires that an escrow account be established. RD will require that an escrow account be established for a given loan if either of the following conditions exists:

• A borrower defaults on the responsibility to pay either the real estate taxes or hazard insurance premiums in a timely manner.

• A borrower defaults on regular monthly payments and requests RD assistance to cure the default.

NOTE: The servicing actions that constitute RD assistance will be defined as Re-amortization, Assumption, a Delinquent Workout Agreement (DWA). The DWA is similar to the mortgage industry's Forbearance Agreement and is established when a borrower requires more than four months to repay the arrearage on the loan.

Section 3.4.2 Conversion of Existing Loans Currently Under Tax Service

RD currently has approximately 261,895 loans that are currently under contract with a Vendor for tax services. The Contractor that is selected by RD shall be responsible to convert these loans to its data base utilizing electronic transfer of records from the existing Contractor. The conversion of the existing loans that are under tax service shall be completed at no cost to the Government. The process of converting existing loans to a new tax service will take place immediately upon the official contract execution date.

IMPORTANT NOTE: Currently the Multi-Family Housing Loan Portfolio are not being serviced externally. In the event that a change is made, it will be assumed that the pricing proposed for servicing the Single Family Housing Loans will be used for loan origination purposes.

Section 3.4.3 Tax Service Conversion of Existing Account Numbers

RD currently identifies each loan by a unique borrower identification number (maximum of ten digits).

This borrower identification number is the basic identifier for all single family housing loans from endorsement to maturity or payoff. The borrower identification number is used to link multiple loans to a single borrower.

In the event that RD establishes a new account number for the existing portfolio, RD will deliver to the contractor within thirty calendar day's documentation that identifies the old account number and the corresponding new account number. In this instance, the Contractor shall disregard the common industry practice of considering a change in account number to be a new loan that is subject to a full tax service fee. The contractor shall treat this change in account number as data maintenance with no cost to the Government.

This change in account number will be performed by utilizing electronic transmission of data that includes the old account number, new account number, the tax service identification number and the borrower's name. The Contractor shall accept the method of communicating the account number change that is deemed to be most advantageous to RD.

Notices of delinquent taxes on non-escrowed accounts and tax bills on escrowed accounts shall contain the new account number provided by RD within thirty day calendar days of this information being provided by RD.

The Contractor shall provide RD with a listing (hard copy or tape/electronic transmission) of those records that are either deemed to be incorrect, or that have no matching record identified. This information shall be provided by the Contractor within ten business days of receipt of the new account number from RD.

RD will then supply corrected data to the Contractor within thirty calendar days. The Contractor shall then reflect the corrected account number on all tax information/bills provided to RD within thirty calendar days of receipt of the correction.

Section 3.4.4 Tax Service Conversion Method

Tax Service shall be established for the existing loans utilizing a combination of automated data transfer and images of loan documents. RD images mortgage documents and any partial releases. The Contractor shall have the ability to accept these documents in an optical disk format or any other agreed to automated format.

Section 3.4.5 Verified Conversion

All existing loans will be converted in "verified manner". "Verified manner" is defined as utilizing RD provided information concerning the mortgaged property and parcel identification numbers assigned to the property by each taxing authority. The RD provided information includes the legal description, borrower's name, mailing address and the state in which the property is located.

The Contractor shall undertake all actions deemed necessary to assure that the tax information and bills provided to RD are accurate and appropriate for the individual loan that has been established on the Contractor's records.

The Contractor shall be responsible for providing accurate and complete tax information and bills after a 30 calendar day verification period but no later than thirty calendar days prior to the next tax cycle for each individual loan.

The Contractor shall be responsible for any penalty, loss of discount or incorrect disbursement should the Contractor fail to properly identify the correct land parcel during this verification. If RD has provided incorrect data to the Contractor, the responsibility for penalties will reside with RD.

Section 3.5 Delinquent Tax Search

The Contractor shall perforin the delinquent tax search for the purpose of maintaining consistency, the Contractor shall:

• Conduct a search for delinquent taxes on all existing loans.

• Report taxes found to be delinquent to the CSC Tax Department in St. Louis Missouri for on-going processing, within thirty calendar days after completing the search.

• Include penalties, interest and costs required to resolve the item along with the notification of delinquent base taxes.

Certify that all delinquent taxes have been identified.

Assume responsibility for any forfeiture that results from taxes being sold at tax sale the Contractor does not inform RD prior to the forfeiture.

Conduct the Tax Search within time frames that offer flexibility to the Contractor yet insures that RD is protected from forfeiture.

Complete the tax search no later than thirty days prior to the next tax cycle, or 180 calendar days after receipt of the loan information from RD, whichever is earlier.

NOTE: It is anticipated that the Contractor would perform the delinquent tax search while in the process of establishing tax service and verifying the correct taxing authority identification numbers.

Section 3.6 Tax Service — Post Conversion

Section 3.6.1 Tax Service Post Conversion- Reports

Loans that are converted to the tax service shall be considered to be under service immediately upon receipt of…