Amendment 2.pdf

Solicitation No. AG-4101-S-11-0004, issued December 15, 2010 Amendment 2, issued January 26, 2011

USDA Natural Resources Conservation Service 3381 Skyway Drive Auburn, AL 36830 Government Contact:

Crystal Blackburn, Contract Specialist 334.887.4543 crystal.blackburn@al.usda.gov

The response date for this solicitation will not be changed due to this amendment.

Responses to Questions Received

1. In Amendment 1, question 1, NRCS states that the estimated number of closings per year is 10.

Is that a statewide number or is that by geographic area? The estimate is 10 per contract per year. Each contract covers a distinct geographic area of the state.

2. In Amendment 1, question 2, NRCS states that every commitment has historically progressed to a closing. Have all title searches performed ultimately resulted in closings? If not what percentage has not proceeded to a closing? Not all title searches have progressed to closing. In some instances, landowners have dropped out of the program, but for reasons unrelated to their title searches. Please note, the agency’s past experience may not be indicative of future experience. Specific data on the percentage of landowners who have dropped out of the program is not readily available.

3. What type of exception identified on the title search would prevent NRCS from moving forward with a landowner? As long as the exception is curable, it will not exclude a landowner from participation in the program.

4. Part V, A. Preliminary Title Search, Delivery of the search and the supporting documentation is required within 21 calendar days.

a. Should this be in an electronic format or hard copy? And electronic copy will suffice for the purposes of meeting the delivery deadline but should be followed by a hard copy.

b. Is a typed up narrative chain of title required in support of the deeds in the chain? Yes.

5. Part V. B. Commitment for Title Insurance.

a. Will the boundary survey include the legal descriptions for both the easement and the ingress/egress? Yes.

b. If the commitment contains the same exceptions as the original title search it appears that we need to submit the exceptions again. Is this correct? Yes.

c. Does the Contractor get a copy of the PTO and if so when will it be provided? Yes.

NRCS will provide a copy along with closing instructions.

6. Part V. C. Closing Services

a. Who prepares the WED? NRCS will provide the WED to the contractor.

b. How is the AD-1161 delivered to NRCS to request the funds for closing? Hard copy or electronic? Hard copy.

c. If the Contractor is disbursing funds, are the funds to be disbursed upon receipt of the signed closing documents or after receipt of the recorded WED? Upon recording of the

WED.

d. Does NRCS want notification of the receipt of the signed closing documents or receipt of the recorded WED or both? Both.

e. Which does the Contractor receive a copy of: the PTO or the Certificate of Use and Consent? The contractor will receive a copy of the PTO.

7. Part VII. Payment mailto:crystal.blackburn@al.usda.gov�

Solicitation No. AG-4101-S-11-0004, issued December 15, 2010 Amendment 2, issued January 26, 2011

a. It appears that a Contractor will submit invoices following each step of the work: search, commitment, closing. Is this correct? Yes.

b. Although the Prompt Payment Clause is included, the “acceptance” of the work is determined after a review by OGC in the case of the preliminary title commitment and the final title policy. Throughout the country, our experience is that OGC is currently taking at least 2 months to review a title commitment and issue its PTO’s and 4 months to review final title policies. Therefore a contractor is waiting several months to get paid after each step is completed and no changes need to be made. What are the turn-around times for review that your office will commit to so that the Contractor can be guaranteed to be paid timely? Thirty days.

8. Pricing

a. The solicitation states that the “recording fees” must be included in the proposed pricing.

Is this correct? Yes.

b. The forms that were provided (both in the original solicitation and in the amendment) request a fee for a “Title Insurance Commitment.”

i. Is this to be the cost of the title insurance premium? It is meant to include the insurance premium cost.

ii. If the cost of the title premium is to be provided in the schedule, where should an offeror provide the cost of the updating the title search in order to issue the commitment, prepare the various documents, agreements, forms and copies that are required and identified in Part V. Commitment for Title Insurance? These items should also be included in the Title Insurance Commitment rate.

c. The forms that were provided (both in the original solicitation and in the amendment) request a fee for a “Preliminary Title Search.”

i. The solicitation requests pricing on a “per easement” basis. However, a title search for one easement may contain multiple title chains. This puts a substantial financial risk on the part of the Contractor. How does this office propose that a Contractor handle a situation where multiple chains (e.g. more than 5 chains) need to be searched? Each offeror’s proposal should include sufficient information to allow evaluation of its price and approach to successfully accomplishing all of the work encompassed by the scope of work, both the simple and the complex.

ii. Would this office consider requesting pricing by chain of title in order to reduce some of the financial risk to the contractor? USDA NRCS Alabama seeks a contract with rates structured as solicited. The agency expects offerors to take business risk into consideration when pricing their proposals.

iii. Would this office consider a stair step approach to pricing by chain of title?

Please use the structure indicated in the solicitation to propose pricing.

iv. Would this office permit an equitable adjustment in price if pricing remains on a “per easement” basis and multiple chains were encountered? The solicitation does not include any provision that would allow such an adjustment.