AMENDMENT_ONE_-_Questions_and_Answers.pdf

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Closing Services in South Dakota
Solicitation number
AG-3C78-S-17-0026
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Questions and Answer - Acknowledgement by email

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1. With regard to the searches it states in the Statement of Work that the contractor needs to determine the ownership and interest share for both surface and subsurface rights. This would indicate to us that a separate mineral rights (subsurface rights) search needs to be performed. This has never been a requirement before. Mineral rights searches are paid hourly and are quite costly. Usually the requirement is to identify if the mineral rights have been severed. Can you please clarify what is being required?

A title search will identify any mineral rights that have been severed. No onsite visit would be necessary.

2. Is electronic delivery of the title commitment package and updated title commitment package acceptable? We understand that original documents must be submitted with the final closing package.

Title commitment and any updates can be electronic

3. Who will be recording the survey plat?

The landowner is responsible for recording the survey plat. The landowner will provide receipts for recording fees to NRCS. NRCS will forward the receipts to the closing agent when closing instructions are sent out. The closing agent will reimburse the landowner.

4. If taxes, assessments, etc. have to be current as of the date of closing why would there be escrowing for those purposes? In our experience when a tax bill has been issued but might not be due before the easement closes we will collect for those taxes and pay them from the sales proceeds to make sure the taxes remain current. If the taxes were current at the time of the closing and a tax bill has not even been issued then the requirement is considered as met. Please advise.

The exception on the final policy may only reference taxes that are not due and payable as of the date of closing. The landowner will be responsible for paying the taxes that are due. The escrow account will only be used to disburse the easement payment (instead of being disbursed in house) and is being developed in order to be in line with current policy. The taxes may be withheld from the easement payment in certain situations that can be discussed if that situation arises.

5. Once the landowner signs the WED will the contractor be required to send the WED to NRCS for its execution of the Acceptance by Grantee page? Or will NRCS pre-sign the Acceptance by Grantee page when it sends the WED along with the closing requirements, instructions, etc.?

The contractor will send the WED/closing documents to the landowner for signature. Once the landowner has signed and returned to the contractor, the contractor will send the originals to NRCS for signature. NRCS will then return to the contractor.

6. These transactions can take over a year to close from the time the initial title search/commitment is issued. Usually there is a provision in the statement of work that addresses the need for an update of the title search/commitment and what is required. It does not appear in this Statement of Work. How should this task be addressed?

The update can be done after closing or during the time that the WED is being recorded.

7. The pricing schedule included with the solicitation only provides for a closing and the way the pricing is to be provided is on price/acre basis. This doesn’t make sense. Usually there is a pricing schedule that includes the tasks to be performed/provided: search, update, closing, and CPL. Usually, title premiums and recording fees are reimbursable costs and they are not included as a bid price although a rate schedule is required to be provided. The pricing schedule for this solicitation needs to be revised to reflect the tasks that need to be performed. Offers would be evaluated by a panel familiar with the Headquarters Program requirements for WRE easements and South Dakota Real Estate Laws.

Also, please refer to the solicitation; it includes the answer you seek. FAR Clause 52-212-I Instructions to Offerors, paragraph (e) Multiple offers. Offerors are encouraged to submit multiple offers presenting alternative terms and conditions or commercial items for satisfying the requirements of this solicitation. Each offer submitted will be evaluated separately.

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