SFH_Appraisal_BPA.pdf

3 | P a g e S o l i c i t a t i o n # A G - 6 4 K Y - S - 1 7 - 0 0 0 5

1. THIS IS A COMBINED SYNOPSIS/SOLICITATION FOR COMMERCIAL ITEMS PREPARED IN ACCORDANCE WITH THE FORMAT IN FEDERAL ACQUISITION REGULATION (FAR) SUBPART 12.6, STREAMLINED PROCEDURES FOR EVALUATION AND SOLICITATION FOR COMMERCIAL ITEMS AND FAR SUBPART 13.5, SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS, AS SUPPLEMENTED WITH ADDITIONAL INFORMATION INCLUDED IN THIS NOTICE. THIS ANNOUNCEMENT CONSTITUTES THE ONLY SOLICITATION. QUOTATIONS ARE BEING REQUESTED, AND A SEPARATE WRITTEN SOLICITATION WILL NOT BE ISSUED.

2. The solicitation is issued as a Request for Quote. Submit written quotes on RFQ number #AG-64KY-S-17-0005.

3. Solicitation #AG-64KY-S-17-0005 incorporates provisions and clauses in effect through Federal Acquisition Circular 2005-94 and 2005-95. It is the responsibility of the contractor to be familiar with the applicable clauses and provisions. The clauses may be accessed in full text at these addresses: https://www.acquisition.gov/far/.

4. This is being issued as a TOTAL SMALL BUSINESS SET-ASIDE. The North American Industry Classification System (NAICS) code is 531320. The small business size standard is $7.5M.

5. This combined solicitation/synopsis is for the purchase of the following commercial services and products:

Single Family Housing Real Estate Appraisals

6. United States Department of Agriculture Rural Development (USDA RD) provides direct loans to eligible applicants for single family housing residential property. To support this program, USDA Rural Development requires qualified appraisers to provide appraisal services. This will be accomplished under the Blanket Purchase Agreement (BPA) process.

7. Delivery: Various USDA Rural Development Offices in Missouri.

8. The provision at 52.212-1, Instructions to Offerors—Commercial Items (JAN 2017) applies to this acquisition.

9. The provision at FAR 52.212-2, Evaluation—Commercial Items (OCT 2014) applies to this acquisition.

10. Vendors are advised to include a complete copy of the provision at FAR 52.212-3, Offeror Representations and Certifications - Commercial Items (JAN 2017), with its offer. (Attachment E) The Offeror shall complete only paragraph (b) of this provision if the Offeror has completed the annual representations and certification electronically via the System for Award Management (SAM) website accessed through http://www.acquisition.gov. If the Offeror has not completed the annual representations and certifications electronically, the Offeror shall complete only paragraphs (c) through (q) of this provision.

11. The clause at 52.212-4, Contract Terms and Conditions—Commercial Items (JAN 2017), applies to this acquisition.

12. The clause at FAR 52.212-5, Contract Terms and Conditions Required to Implement Statutes Or Executive Orders—Commercial Items (JAN 2017), applies to this acquisition.

a. The Contractor shall comply with the following Federal Acquisition Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

i. 52.219-6, Notice of Total Small Business Set-Aside (June 2003) (15 U.S.C. 644)

ii. 52.219-13, Notice of Set-Aside of Orders (Nov 2011) (15 U.S.C. 644(r))

iii. 52.219-28, Post Award Small Business Program Representation (Jul 2013) (15 U.S.C. 632(a)(2)) https://www.acquisition.gov/far/

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iv. 52.222-3, Convict Labor (June 2003) (E.O. 11755)

v. 52.222-21, Prohibition of Segregated Facilities (Apr 2015)

vi. 52.222-26, Equal Opportunity (Sept 2016) (E.O. 11246)

vii. 52.222-50, Combating Trafficking in Persons (Mar 2015) (22 U.S.C. Chapter 78 and E.O. 13627)

viii. 52.223-18, Encouraging Contractor Policies to Ban Text Messaging While Driving (Aug 2011) (E.O. 13513)

ix. 52.232-33, Payment by Electronic Funds Transfer – System for Award Management (Jul 2013) (31 U.S.C. 3332)

b. The Contractor shall comply with the FAR clauses in this paragraph, applicable to commercial services, that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

i. 52.222-53, Exemption from Application of the Service Contract Labor Standards to Contracts for Certain Services—Requirements (May 2014) (41 U.S.C. chapter 67)

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SECTION 1

BACKGROUND, OBJECTIVE, AND GENERAL INFORMATION

BACKGROUND: United States Department of Agriculture Rural Development (USDA RD) provides direct loans to eligible applicants for single family housing residential property. To support this program, USDA Rural Development requires qualified appraisers to provide appraisal services, in accordance with 7 Code of Federal Regulations (CFR) Part 3550, which may be located at https://www.rd.usda.gov/files/3550appendix01.pdf.

OBJECTIVE: High quality appraisals to determine market value of single family housing residential properties are key to ensuring the Agency obtains adequate security for its loans.

This is a Blanket Purchase Agreement (BPA) for the purchase of Single Family Housing Appraisals, which the Contractor is in a position to deliver to USDA RD when requested by the Contracting Officer or ordering officials.

The Agreement includes the BPA, the Statement of Work (SOW), and applicable contract provisions and clauses.

The following conditions shall apply to this Agreement:

1. EFFECTIVE PERIOD OF AGREEMENT: The Contractors agrees to furnish appraisal services for properties in the state of Missouri assigned in accordance with the attached SOW, terms and conditions. This agreement shall be in effect from date of issuance by the Contracting Officer through September 30, 2017, or when the amount of all call orders issued reach $150,000.00 (or existing Simplified Acquisition Threshold SAT)), or until cancellation by either party upon 30 days’ prior written notice. In the event of cancellation, performance of outstanding orders under the terms and conditions herein shall continue until completed in accordance with order deadlines, unless the work is cancelled by the Contracting Officer. This Agreement may be renewed upon its expiration by mutual agreement between the parties. Call orders will be issued under this BPA when assigning work to the Contractor.

2. EXTENT OF OBLIGATION: Rural Development has the right to obtain completion, either among BPA holders or on the open market for any order. Rural Development is not obligated to place any orders under this BPA, nor is the vendor obligated to accept them. However, if the vendor does accept any order, the terms and conditions of this BPA apply. The Government is obligated under this BPA only to the extent of authorized call orders actually placted against this Agreement.

3. AUTHORIZED ORDERING OFFICIALS AND MAXIMUM ORDER LIMITS: Rural Development is obligated under this BPA only to the extent of call orders placed by authorized individuals as shown below, or other such persons as the Contracting Officer names, in writing, to the Contractor as authorized to make individuals call orders:

NAME TITLE SINGLE ORDER

THRESHOLD

Cassandra Crawford Contracting Specialist $150,000.00 Marilyn McCoy Contracting Officer Representative $3,500.00 Glenda Shafer Contracting Officer Representative $3,500.00 Vicky Hubbard Contracting Officer Representative $3,500.00

Stephanie Adams Contracting Officer Representative $3,500.00

No individual call order placed under this agreement shall exceed $3,500.00. Performance of any call order work exceeding this limitation will be at the Contractor’s risk.

4. LICENSING REQUIREMENTS: The vendor represents by accepting the terms and conditions of the BPA that licensing/certification requirements necessary to perform the services are current and valid. A copy of license or certificate is required to be submitted at the time of submission of quote/offer for each person propsed to complete requested services.

5. PROCEDURES FOR PLACEMENT OF ORDERS: The Contractor shall be notified of required work requested through the issuance of an Appraisal Request Form (Attachment A) and BPA Call Order. Individual call orers will be placed on a rotational basis with all BPA holders for that specific county. Note: The Appraisal Request will https://www.rd.usda.gov/files/3550appendix01.pdf

6 | P a g e provide specific information with regards to the subject property to be appraised. Some examples of the information that will be provided are as follows:

a. Date of request and date appraisal is to be delivered

b. Property location

c. Borrower/applicant name

d. Contact person

e. Purpose and type of appraisal

f. Sales contract/option

g. Legal description

h. Proposed repairs

i. Tax bills/assessments

j. Direction map to property

6. DELIVERY TIMEFRAME: The appraiser shall provide an email copy of the completed appraisal with an electronic signature to the individuals referenced on the Appraisal Order within 7 calendar days of receipt of the order, or as indicated on the order. The Appraiser must immediately notify the Ordering Official if unable to meet the delivery schedule indicated in the Call Order and provide an alternate schedule for consideration.

7. DELIVERY TICKETS: Delivery tickets or sales slips are required for all services or supplies furnished as a result of call orders made under this Agreement. The delivery tickets shall contain, as a minimum, the following information:

a. Contractor’s name

b. Blanket Purchase Agreement number

c. Call order number and date

d. Itemized list of supplies or services provided, with the unit price and extended price. Unit pricing need not be shown when such is incompatible with any automated systems in use, provided the invoice is itemized to show this information

e. Date and place of delivery

8. GUARANTEE: The Contractor shall provide normal guarantee of performance or quality of items purchased under this agreement, to the extent that the standard allowance for refund or exchange of faulty items shall apply.

9. INQUIRIES: All inquiries concerning the terms and conditions of this Agreement and its administration, shall be addressed to the Contracting Officer named in the BPA signature block.

10. CONDITIONS OF SALE: No conditions of sale other than as specified herein shall be applicable to purchases made under this Agreement.

11. REQUIRED REGISTRATION: Contractors/individuals providing services to USDA RD must have and maintain an active registration in the System for Award Management (SAM) before award of any order for services will be made. Information and registration requirements can be found at www.sam.gov. In addition, please refer to the SAM Quick Start Guide, which is included as Attachment F.

SECTION 2

EVALUATION & AWARD

1. AWARD OF BPAS

The Government’s intent is to award a BPA to those firms that are technically acceptable, responsible, and provide services at or below market prices. In addition, only the number of BPAs sufficient to meet our needs and regulatory competition requirements will be awarded.

2. EVALUATION AND AWARD

USDA will evaluate quotes received and will award a BPA to the responsible offeror(s) whose quote conforming to the solicitation will be more advantageous to the Government.

3. ENFORCEABILITY OF PROPOSAL

The proposal must set forth full, accurate and complete information as required by this solicitation. By submission of the offer, the Offeror agrees that all items proposed (if applicable e.g., key personnel, http://www.sam.gov/

7 | P a g e subcontractors, etc.) will be utilized for the duration of the contract and any substitutions shall require prior Contracting Officer’s approval. The Government will not pay for any costs incurred in preparation and submission of proposals.

4. TECHNICAL CAPABILITIES/QUALIFICATION STATEMENT: The Contractor shall include a description of the capabilities and qualifications of the Contractor showing why they are capable of completing the services required. Offerors shall submit a BRIEF narrative format addressing these factors, which shall be used to evaluate offers.

a. Price – Will be considered in determining the overall best value to the Government

b. Past Performance – Please provide contact information for two (2) references for which the

Contractor has provided similar services. The Contractor’s past performance may be verified by contacting references, as deemed necessary by the Government and evaluated based on the relevance of the information submitted. The Government may obtain and evaluate past performance information obtained for sources other than those identified in the quote/offer.

c. Experience – Will be evaluated based upon the Contractor’s ability to demonstrate its experience providing services relevant to the requirement. Provide a summary description of relevant, recent (within the past 2 years) performance that exhibits experience capabilities.

Past Performance and experience, when combined, are equally important as price.

5. CONTRACTOR’S RESPONSIBILITY CRITERIA

The contractor must be able to comply with the terms of the BPA. Such criteria include, but is not limited to:

a. Adequate financial resources or the ability to obtain them;

b. Ability to comply with the required period of performance, taking into consideration all existing commercial and government business commitments;

c. Satisfactory record of integrity and business ethics;

d. Necessary organization, experience, and skills or the ability to obtain them;

e. Necessary equipment and facilities or the ability to obtain them;

f. Be otherwise qualified and eligible to receive an award under all applicable laws and regulations;

g. Be licensed as required by Section 4, Item 1, A;

h. Active registration in System for Award Management (SAM) as required by Section 1, Item 11.

SECTION 3

SCHEDULE OF SERVICES AND PRICES

1. PRICING/PURCHASE LIMITATION: The price to the Government for all purchases made under this Agreement shall be fair and reasonable and at least as low as prices charged to the Contractor’s most favored customer(s) for comparable services. Purchases made against this account will be based on firm prices established at the time the orders are issued.

2. INVOICES:

a. Invoices may be submitted as follows:

i. A summary invoice shall be submitted monthly for all appraisals performed that month (and accepted by USDA RD), at the end of each month, or upon expiration of this agreement, whichever occurs first, for which payment has not been made. Refer to Attachment C for a sample Summary Invoice.

OR

ii. Individual invoices may be submitted with each completed appraisal, however, the Agency shall only process payments on a MONTHLY basis.

b. A proper invoice shall consist of:

i. Contractor’s name, address, and phone number

ii. Invoice number

iii. BPA number

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iv. Itemization of charges by call order number and date

c. The period of any discounts will commence on the final date of the billing period or on the date of receipt of invoices for all deliveries made during the billing period, whichever is later.

d. Payment shall be considered as being made on the day a check is dated or an electronic funds transfer is made.

3. RECEIPT OF SUPPLIES OR SERVICES: The Contractor’s delivery ticket or sales slip, will be date stamped by the

Agency requesting/receiving office to indicate the date the report and invoice is received. In addition, the Agency requesting/receiving personnel will complete Form RD 1992-15, “Administrative Appraisal Review for Single Family Housing”, for each appraisal to indicate that the services have been received and accepted in compliance with the specifications of this agreement. A copy shall be provided via email to the Ordering Official.

Refer to Attachment B for copy of Form RD 1922-15. Payment will be made only after inspection and acceptance of the services AND receipt of a proper invoice.

4. SERVICES AND PRICING SCHEDULE: This contract is for performing appraisal services for single family dwellings as dexcribed in the Statement of Work (SOW) set forth herein. Please insert your unit price below to indicate the counties for which you are interested in providing required services in Missouri.

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COUNTY UNIT PRICE COUNTY UNIT PRICE COUNTY UNIT PRICE COUNTY UNIT PRICE

Adair $__________ Dallas $__________ Livingston $__________ Ralls $__________

Andrew $__________ Daviess $__________ Macon $__________ Randolph $__________

Atchison $__________ DeKalb $__________ Madison $__________ Ray $__________

Audrain $__________ Dent $__________ Maries $__________ Reynolds $__________

Barry $__________ Douglas $__________ Marion $__________ Ripley $__________

Barton $__________ Dunklin $__________ McDonald $__________ Saline $__________

Bates $__________ Franklin $__________ Mercer $__________ Schuyler $__________

Benton $__________ Gasconade $__________ Miller $__________ Scotland $__________

Bollinger $__________ Gentry $__________ Mississippi $__________ Scott $__________

Boone $__________ Greene $__________ Moniteau $__________ Shannon $__________

Buchanan $__________ Grundy $__________ Monroe $__________ Shelby $__________

Butler $__________ Harrison $__________ Montgomery $__________ St. Charles $__________

Caldwell $__________ Henry $__________ Morgan $__________ St. Clair $__________

Callaway $__________ Hickory $__________ New Madrid $__________ St. Francois $__________

Camden $__________ Holt $__________ Newton $__________ St. Louis $__________

Cape Girardeau $__________ Howard $__________ Nodaway $__________ Ste. Genevieve $__________

Carroll $__________ Howell $__________ Oregon $__________ Stoddard $__________

Carter $__________ Iron $__________ Osage $__________ Stone $__________

Cass $__________ Jackson $__________ Ozark $__________ Sullivan $__________

Cedar $__________ Jasper $__________ Pemiscot $__________ Taney $__________

Chariton $__________ Jefferson $__________ Perry $__________ Texas $__________

Christian $__________ Johnson $__________ Pettis $__________ Vernon $__________

Clark $__________ Knox $__________ Phelps $__________ Warren $__________

Clay $__________ Laclede $__________ Pike $__________ Washington $__________

Clinton $__________ Lafayette $__________ Platte $__________ Wayne $__________

Cole $__________ Lawrence $__________ Polk $__________ Webster $__________

Cooper $__________ Lewis $__________ Pulaski $__________ Worth $__________

Crawford $__________ Lincoln $__________ Putnam $__________ Wright $__________

Dade $__________ Linn $__________

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BPA SIGNATURE BLOCK: By signing this BPA you agree to comply with the terms and conditions of this agreement. Please print information legibly. A contractual agreement is created only upon issuance AND acceptance of a call order under this BPA.

Business Name:

Address:

Phone: Fax:

Email:

Name of Person Authorized & Title: USDA Rural Development 601 Business Loop 70 West Parkade Center, Suite 235 Columbia, MO 65203

(Signature) (Signature)

Cassandra B. Crawford Contracting Specialist USDA Rural Development

(Date) (Date)

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SECTION 4

STATEMENT OF WORK (SOW)

1. REQUIREMENTS FOR APPRAISLS:

A. The contractor must be currently licensed in the state that the subject property is located as a Certified General, Certified Residential, or Licensed Appraiser. The contractor shall be considered active on the Appraisal Subcommittee website (www.asc.gov) at time of award and maintain professional insurance coverage in accordance with local and state government requirements. The appraiser shall have the specialized knowledge and experience necessary to be competent to appraise single-family housing. The appraiser must not subcontract the appraisal (or any part of it) to another person without written consent of the Rural Development Contracting Officer.

A Trainee may sign the report. If a Trainee signs the report his registration shall be provided to RD and the contractor shall sign as Supervisory Appraiser and personally inspect the subject property.

If required, the contractor shall defend the appraisal in court or in Rural Development’s appeals process. Cost associated with the defense of the appraisal, when necessary, will be negotiated under a separate purchase order.

Except where noted herein, the contractor shall provide all facilities, materials, supplies, tools, equipment, personnel, and travel to accomplish the performance of the requirements of this contract.

B. The appraisal must comply with the current edition of the Uniform Standards of Professional Practice (USPAP) Standards Rule 1 & 2-2 (b) and Agency requirements as described in Handbook (HB)-1-3550, Chapter 5, and 7 CFR 3550.62 (a) (http://www.rurdev.usda.gov/handbooks.html); and Rural Development 1922-A.

C. All appraisals for Rural Development will provide Market Value based on the following Market Value definition used by federally insured financial institutions; Title XI of the Financial Institutions Reform and Recovery Enforcement Act of 1989; Definition of Market Value (12 U.S.C. 1818, 1819):

Definition of Market Value:

Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

(1) Buyer and seller are typically motivated;

(2) Both parties are well informed or well advised, and acting in what they consider their own best interests;

(3) A reasonable time is allowed for exposure in the open market;

(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

(5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

D. The appraisal must be completed using one of the following forms: Fannie Mae Form 1004/Freddie Mac Form 70 (March 2005), "Uniform Residential Appraisal Report," for all one-unit, single family dwellings; Fannie Mae form 1004C/Freddie Mac Form 70B (March 2005), “Manufactured Home Appraisal Report,” for all manufactured homes; Fannie Mae Form 1073/Freddie Mac Form 465 (March 2005), “Individual Condominium Unit Appraisal Report” for all individual condominium units; Fannie Mae Form 2055/Freddie Mac Form 2055 (March 2005), "Exterior-Only Inspection Residential Appraisal Report," for all one-unit, single family dwellings for all properties where there is no visual inspection of the interior; or FNMA Form 1004D/Freddie Mac Form 442 (March 2005) , “Appraisal Update and/or Completion Report”.

2. TYPES OF VALUES:

Depending on the purpose of the proposed loan, an appraiser will either determine the estimated market value of the property in its current condition (the “as-is” value) or; determine the estimated market value of the http://www.rurdev.usda.gov/handbooks.html

12 | P a g e property, based on completion of construction in accordance with plans and specifications, or completion of rehabilitation based on a list of repairs items to be considered (the “as-improved” value). (Handbook-1-3550, Chapter 5 (5.15)) A. As-Improved value (Value Subject to Completion) - Loans for planned new construction or rehabilitation require an estimate of the as improved value considering all construction / repairs / rehabilitation are complete.

B. As-Is value – Loans for existing dwellings (including a new construction dwelling that has been completed at the time of appraisal) requiring no repairs an as-is value is needed. As is value appraisals may also be needed to support loan servicing action or to determine a disposition plan for Real Estate Owned (REO) properties.

3. SPECIAL INSTRUCTIONS:

A. Foreclosure Appraisal - In the event the appraiser is requested to complete a foreclosure appraisal would require an as-is value to establish the Agency net recovery value. The appraisal must conform, at minimum, to Agency and USPAP requirements and standards unless otherwise stated. Estimated net recovery value represents the amount that the Agency could expect to recover from a property if it was liquidated after considering all costs associated with liquidating, holding, and selling the property.

In the event that the appraiser is unable to gain access for a visual inspection of the interior of the subject property the appraiser must complete the appraisal report on the Fannie Mae Form 2055/Freddie Mac Form 2055 (March 2005), “Exterior-Only Inspection Residential Appraisal Report.” The report must include the details of the extraordinary assumption that there was no visual inspection to the interior and details of the sources being used for the interior components and the assumed condition of the interior. (Handbook-1- 3550, Chapter 13 (13.17) (C) (3), page 13-28)

B. Subsidy Recapture Appraisal – The appraiser must complete an as-is value appraisal.

The appraiser must note all capital improvements added to the subject property from original date of purchase. If available the originating office will provide a copy of the original appraisal report. Each capital improvement must be noted individually. The appraiser must provide the estimated contributory amount of market value, if any, for each capital improvement item. Items considered to be general maintenance are not considered to be capital improvements. Values shall be supported by market evidence. (Handbook-2-3350, Chapter2 (2.23) (8), page 2-34)

4. APPRAISAL METHODOLOGY

USDA Rural Development requires appraisers to use the following appraisal methods to arrive at a final estimate of value.

A. Sales Comparison Approach: Under this method, the appraiser uses the recent sales prices of properties that are comparable in location and characteristics to the security property in order to estimate a market value for the property. Appraiser must use at a minimum three (3) comparable closed sales of single family residential properties that sold in the previous 12 month period unless the appraiser provides documentation that such comparables are not available in the area. Comparable sales should be located as close as possible to the subject dwelling, from within the competitive market area, and should be the most comparable available for purposes of valuation.

B. Cost Approach: This method is specified in Handbook 1-3550, Chapter 5, found at this web address, http://www.rd.usda.gov/files/3550-1chapter05.pdf. For all proposed construction or all homes having an age of one year or less, USDA requires that the appraiser develop, report and reconcile the Cost Approach to value.

On homes over one year of age, appraiser should determine whether the cost approach is relevant or necessary to determine a valid opinion of market value. This determination must be developed and reported in accordance with the USPAP.

Under this method, the appraiser derives an estimate of value using replacement cost estimates for the improvements, less depreciation and an estimate of the site value. The appraiser will identify the source of cost estimates, such as Marshall and Swift Residential Cost service, local builder’s cost data or other national publication for residential costs, used in the cost approach. The methodology used to estimate depreciation must be stated in the report.

http://www.rd.usda.gov/files/3550-1chapter05.pdf

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In remote rural areas, on Tribal lands (American Native and Alaskan Native), or areas with a lack of market activity, i.e. those with leasehold interest (Department of Hawaiian Homes Land (State of Hawaii) and Chamorro Land (Island of Guam), it may be difficult to obtain adequate comparable sales to be used for comparative purposes in order to appraise a property. In these areas, the sales comparison approach is not required. Instead, Form 1007, Square Foot Appraisal Form must be used.

Remote rural areas are identified by the State Director and are defined as areas lacking sufficient market activity and having the following characteristics:

Scattered population;

Low density of residences;

Lack of basic shopping facilities;

Lack of community and public services and facilities; and Lack of comparable sales data.

C. Income Approach: Under this method the appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year’s income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.

The Income Approach method of valuation may only be used for Agency Non-Program Real Estate Owned Properties.

USPAP Standards Rule 2-2 (a) (viii) require the appraisal report to summarize the information analyzed, the appraisal methods and techniques employed, and reasoning that supports the analyses, opinions, and conclusions; and also, exclusion of the sales comparison approach, cost approach, or income approach must be explained.

5. APPRAISAL REQUIREMENTS:

A. The appraiser must understand and agree that USDA Rural Development is the appraiser's client, and all reports must be addressed to USDA Rural Development. The user of the report will be USDA Rural Development and any other intended user specified by the Agency. Any questions relating to the form or substance of the appraisal assignment should be directed to the Authorized Government Representative and will not be directed to the property owner or builder/contractor.

B. The appraisal report must be UAD compliant.

C. The appraisal must include a completed 1004MC form.

D. A property contact person will be provided by the Authorized Government Representative and ensure the

Appraiser has access to the subject property for inspection. Appraisal fees or turnaround times must not be discussed with the property contact, the property owner or the borrower. The appraiser must notify the Authorized Government Representative immediately if any of the following occurs:

(1) The appraiser cannot gain adequate access to the property;

(2) The appraiser does not receive essential property information in a timely manner;

(3) The appraiser has previously appraised or is in the process of appraising the property for another client; or

(4) The appraiser has any other potential conflict of interest with respect to the assignment.

E. The appraiser is responsible to take into account the subject property inspection report. Should Rural Development require repairs, the list of repairs and the bid(s) obtained to complete the repairs shall be provided by RD Local/Satellite/Area Office where the subject is located. The list of repairs and bid(s) must be included in the addendum of the appraisal report. The appraiser shall either include in the addendum a copy of the property inspection, pest and dry rot report(s) or shall identify and detail who prepared the report, the date of the report or a statement by the appraiser that such report(s) and information is available if requested in appraiser’s workfile.

F. The appraiser must provide an opinion of site value supported by a narrative of comparable land sales or other methods used for estimating site value. If this is not included in the appraisal report a statement by the

14 | P a g e appraiser that such information is available for review upon request and in the appraiser’s work file. The land must be valued as though vacant and ready for development. USDA Rural Development 7 CFR Part 3550.56

(b) (1) – states:

i. The site must not be large enough to subdivide into more than one site under existing local zoning ordinances.

ii. The value of the site should not exceed 30% of the as-improved market value of property. The 30% limitation may be exceeded if the site cannot be subdivided into 2 or more sites and the value of the site is typical for the area. In all instances the appraiser shall discuss the site size and the concluded site value with respect to their typicality to the subject market.

Any land area of the subject property that is determined by the appraiser as either excess land or surplus land must be addressed and valued accordingly together with documentation and support within the appraisal report for the appraisers conclusions.

G. In addition, the appraisal report for a manufactured home must also meet the following requirements:

i. Cost Approach: Manufactured Home appraisal reports will require a published cost data service such as the Marshall and Swift Residential Cost Guide or the N.A.D.A. Manufactured Housing Appraisal Guide calculations to be included. The appraiser must take at least one of those values into consideration in arriving at a value conclusion.

ii. Sales Comparison Approach: The appraisal report must contain at least two comparable Manufactured Home sales of similar configuration and quality. The appraiser may use either site-built housing or a different type of factory built housing as the third comparable sale if the appraiser explains the reason for selecting the comparable and support the appropriate adjustments in the appraisal report.

H. All extraordinary assumptions, hypothetical conditions, and limiting conditions must be clearly and prominently described in a single location near the beginning of the report and in appropriate sections of the appraisal. General assumptions and limiting conditions that reduce the normal scope of appraisal due diligence are not allowed.

I. The appraiser must keep all information and materials furnished by Rural Development, the owner, and/or property contact regarding the subject property confidential, as required by The Uniform Standards of Professional Appraisal Practice (USPAP) and the Gramm-Leach-Bliley Act (also known as the Financial Services Modernization Act of 1999). Any information obtained through public sources is not considered confidential information. Disregard of this privacy requirement will be cause for immediate debarment as a contractor for the federal government.

J. All appraisals must comply with the Fair Housing Amendments Act of 1988. According to the Act, it is unlawful for an appraiser to use factors that are discriminatory on the basis of race, color, religion, sex, disability, familial status, or national origin in the sale, rental, leasing, or financing of housing.

K. Each appraisal should be submitted electronically with authorized digital or digitized signature, rather than in hard copy format. Electronic submissions must be emailed to the Authorized Government Representative(s)

(ie. Loan Specialist, Loan Technician, etc.), as indicated on the confirmed Single Family Appraisal Order Form, Purchase Order, or Task Order (SF 1449).

6. OBSERVED CONDITIONS:

The appraiser is required to make a property inspection to gather data to support the determination of value.

Readily observable conditions shall be noted.

A. The appraiser(s) signing the appraisal report must make at a minimum a personal inspection of the subject

(interior and exterior). Also, inspection of all comparable sales (exterior) at a minimum from the street. The appraiser must indicate that the subject’s interior and exterior and all comparable sales were personally inspected in the certification page. Readily observable conditions must be noted for the following: attic space, crawl space, floors and walls for significant structural failure, moisture damage, or evidence of past fire damage; the roof condition for remaining life; the mechanical systems for operability; and the walls and trim for defective paint surfaces

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B. In the event that access to the subject interior and/or exterior cannot be obtained, the appraiser must get prior authorization to continue the assignment without inspection. In the event RD authorizes valuation without an inspection, the appraiser must report the extraordinary assumption used in the analysis. USPAP Standard Rule 1-2 (F) requires the appraiser to identify any extraordinary assumptions necessary in the assignment. The extraordinary assumption must include detailed disclosure of the assumed condition and the source(s) the extraordinary assumption is based upon.

C. The appraiser must note any suspected environmental hazards, including issues external to the property that could adversely impact the property's value. Examples of environmental hazards would include damaged asbestos-containing building materials, underground storage tanks, chemical leaks, spills, staining of ground surfaces, or on-site waste disposal such as sludge, oil, paints, or chemical residues. If the appraiser observes any suspected environmental hazards, he/she must notify the Authorized Government Representative immediately and refrain from finalizing aspects of the appraisal that could be impacted until resolution of the issue or until instructed otherwise.

D. The appraiser must notify the Authorized Government Representative In the event the appraiser observes a deficiency in the property that does not meet minimum property requirements for safety or sanitary standards for a determination of inclusion in the appraisal.

The appraiser must verify that all major systems (heating, plumbing, electrical, built-in appliances, and free standing ranges) are functional and will report the operational condition of the equipment and observable condition of the equipment.

E. For uninhabited dwellings where utilities are temporarily disconnected, the Appraiser will inspect all mechanical systems (heating, plumbing, electrical) for observable conditions, but will not be responsible for reporting operability of these systems. Unless otherwise notified, the Appraiser may assume operability for valuation purposes and this must be mentioned as an “extraordinary assumption” in the appraisal report.

F. Appraisers should be familiar with the general provisions of Green Properties in single-family housing. The appraiser shall consider what impact (if any) such factors have on the value of the subject property. Any impact on value should be supported by market evidence.

7. DOCUMENTATION:

All approaches to value and the value opinion must be in accordance with acceptable appraisal methodology.

A. All reports must include a location map (should include proximity to applicable road/highway), flood plain map when property is located designated in flood plain, land sales map, sales comparable map, rent comparable map (if applicable), plat map, and building sketch (should indicate interior building layout including garages and all external buildings).

B. For new construction appraisal report must include clear original color photographs of the subject’s front, rear, street and street easement (private access), if applicable. In all other appraisals colored photographs showing at a minimum the front, rear, and both sides to the exterior. Interior photographs should be included showing each room type, attic and crawl spaces, other non-gross living area (sun rooms, patio/deck/porch/fences) and any noted structural, safety and/or sanitary deficiencies. Additionally, photographs of improvement components that have been upgraded shall be included to document and support the appraiser’s determination of the subject’s effective age if different than its actual age. A current original photograph of each comparable sale and listing used in the completion of the appraisal is required.

If the comparable sale and listing photographs are not available the appraiser should provide at a minimum multiple listing service photographs whenever possible along with the cited source from which the photographs were obtained.

C. The bedroom room shall meet legal requirements (building code, zoning, etc.) as mandated by the local county/state government enforcement agency and applicable agency regulations where subject property is located, if any such legal requirements exist.

D. Verification from third parties sources should be included as part of the appraisal report.

E. The appraisal shall include photographs of all external buildings as well as interior photos of the external buildings (if possible). The external dimensions for each of the external buildings must be included, preferably in the building sketch or identified in the addendum of the appraisal report.

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F. The appraiser must estimate the remaining economic life of the subject's improvements, (the remaining number of years that the subject's improvements will contribute value to the land) and report this estimate in the Cost Approach section. An explanation is required if the remaining economic life is less than 30 years (the explanation is used to justify reducing the term of the mortgage to less than 30 years).

G. All appraisals of existing properties must include a discussion of deferred maintenance for the subject property. Items of deferred maintenance must be listed, and cost to cure for each item must be estimated with support provided.

H. All reports must include a written explanation and documentation to support individual line item adjustments.

Total net adjustment percentages and gross adjustment percentages when compared with the comparable sale unadjusted sale price shall be discussed.

8. COMPLETION CERTIFICATION:

A. If determined by Rural Development (RD), the Appraiser may be requested to re-inspect properties to determine if repairs to the home or construction of home were completed. RD shall determine the need for an Appraiser to re-inspect a property. Re-inspection services may be included on the order for appraisal services. Re-inspection services may also be order on a separate contract if required. A list of additional repairs will be provided to the Appraiser. Not all subject to appraisals will require re-inspection services.

B. On a new construction, the Appraiser may be requested to determine if the construction is fully completed.

The Appraiser shall submit their findings using the Satisfactory Freddie Mac Form 442 or Fannie Mae Form 1004D. The completed report shall be delivered to the Authorized Government Representative within 7-business days from the date the order was received. The report shall include pictures of completed work.

C. Re-inspection reports are due within 3-business days notification is received from the Authorized Government Representative.

9. APPRAISAL REPORT DELIVERY DEADLINES:

A. The Appraiser shall complete and deliver appraisals to the Authorized Government Representative within 7 calendar days or specified noted delivery time after date of order. Or upon receipt of the appraisal information from Authorized Government Representative unless a different deadline is set by written mutual agreement at the time of order. If corrections and/or amendments to the appraisal are requested by the Authorized Government Representative, the corrections and/or amendments are to be delivered as soon as possible, but not later than 4 business days following the request unless, by written mutual agreement, other arrangements are made. If, for any reason the timely delivery of the appraisal report is delayed for reasons beyond the appraiser's control, the appraiser should contact the Authorized Government Representative and convey the reasons for the delay.

10. REVIEW OF THE APPRAISAL REPORT:

Appraisers must be prepared to discuss their analyses, reasoning, opinions, and conclusions. And if requested, provide additional written support, clarification, and/or corrected appraisal pages or report. Also, if requested by Authorized Government Representative or Rural Development Agency Appraiser will assist to monitor the progress and quality of appraiser performance.

11. ATTACHMENTS:

The Agency will provide the appraiser all necessary support information available to the appraiser.

12. COMPLIANCE WITH STATEMENT OF WORK:

When, in the opinion of the Appraiser, the Agency Appraiser or the Authorized Government Representative request effort(s) outside the existing Statement of Work, the Appraiser shall promptly notify the Authorized Government Representative, in writing. The Agency Appraiser or the Authorized Government Representative has the authority to direct the accomplishment of any effort which goes beyond the Statement of Work.

If the appraiser is unable to fully comply with this Statement of Work, the Uniform Standards of Professional Practices (USPAP) requires that the appraiser must decline the appraisal assignment.

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*PLEASE NOTE: FAILURE TO FOLLOW THE STATEMENT OF WORK AND APPRAISAL INSTRUCTIONS CAN RESULT IN

DENIAL OF FUTURE ASSIGNMENTS.*

SECTION 5

ADMINISTRATIVE

1. CONTRACTING OFFICER

The Contracting Officer shown below shall be notified in writing of any changes which will have an impact on ordering under the BPA.

USDA Rural Development Cassandra Crawford

601 Business Loop 70W Parkade Center, Suite 235

Columbia, MO 65203 Phone: (573) 876-9333 Email: cassandra.crawford@mo.usda.gov

In no event will any understanding, agreement, modification, change order, or other matter deviating from the terms of the agreement be effective or binding upon the Government less formalized by proper contractual documents executed by the Contracting Officer.

When, in the opinion of the Contractor, the Ordering Official requests effort outside the existing scope of the contract, the Contractor shall promptly notify the Contracting Officer in writing. The Contractor shall take no action under such direction until the Contracting Officer has issued a modification to the contract or has otherwise resolved the issue.

mailto:cassandra.crawford@mo.usda.gov

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SECTION 6

SOLICITATION PROVISIONS AND CONTRACT CLAUSES

1. AGAR 452.204-70 INQUIRIES (FEB 1988) Inquiries and all correspondence concerning this solicitation should be submitted in writing to the Contracting Officer. Offerors should contact only the Contracting Officer issuing the solicitation about any aspect of this requirement prior to contract award.

2. AGAR 452.219-70 SIZE STANDARD AND NAICS CODE INFORMATION (SEP 2001) Work under this agreement is set aside for small business, as defined by the Small Business Administration, (SBA). The North American Industrial Classification System (NAICS) Code for the products and/or services to be acquired and business size standard are:

NAICS CODES AND SBA SIZE STANDARDS

AGREEMENT NAICS DESCRIPTION SIZE ($M)

RE Appraisal Services 531320 Offices of Real Estate Appraisers $7.5

3. FAR 52.212-2 EVAULATION – COMMERCIAL ITEMS (OCT 2014)

(a) The Government will award a contract resulting from this solicitation to the responsible offeror whose offer conforming to the solicitation will be most advantageous to the Government, price and other factors considered. The following factors shall be used to evaluate offers:

i. Price

ii. Past Performance

iii. Experience Past performance and experience, when combined, are equally important as price.

(b) Options. The Government will evaluate offers for award purposes by adding the total price for all options to the total price for the basic requirement. The Government may determine that an offer is unacceptable if the option prices are significantly unbalanced. Evaluation of options shall not obligate the Government to exercise the option(s).

(c) A written notice of award or acceptance of an offer, mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, shall result in a binding contract without further action by either party. Before the offer’s specified expiration time, the Government may accept an offer (or part of an offer), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award.

(End of Provision)

4. FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address(es): https://www.acquisition.gov

52.204-7 SYSTEM FOR AWARD MANAGEMENT (OCT 2016)

52.212-1 INSTRUCTIONS FOR OFFERORS – COMMERCIAL ITEMS (JAN 2017)

52.225-25 PROHIBITION ON CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN ACTIVITIES OR

TRANSACTIONS RELATING TO IRAN – REPRESENTATION AND CERTIFICATIONS (OCT 2015)

5. FAR 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998) This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address(es): https://www.acquisition.gov

52.212-4 CONTRACT TERMS AND CONDITIONS – COMMERCIAL ITEMS (JAN 2017)

https://www.acquisition.gov/ https://www.acquisition.gov/

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52.219-6 NOTICE OF TOTAL SMALL BUSINESS SET-ASIDE (NOV 2011)

52.223-6 DRUG-FREE WORKPLACE (MAY 2001)

52.232-39 UNENFORCEABILITY OF UNAUTHORIZED OBLIGATIONS (JUN 2013)

52.232-40 PROVIDING ACCELERATED PAYMENTS TO SMALL BUSINESS SUBCONTRACTORS

(DEC 2013)

52.236-2 DIFFERING SITE CONDITIONS (Apr 1984)

52.242-17 GOVERNMENT DELAY OF WORK (APR 1984)

52.243-1 CHANGES – FIXED PRICE – ALTERNATE I (APR 1984

52.249-4 TERMINATION FOR CONVENIENCE OF THE GOVERNMENT (SERVICES) (SHORT FORM)

(APR 1984)

6. AGAR 452.246-70 INSPECTION AND ACCEPTANCE (FEB 1988)

(a) The Contracting Officer or the Contracting Officer's duly authorized representative will inspect and accept the supplies and/or services to be provided under this contract.

(b) Inspection and acceptance will be performed at: Multiple USDA RD Offices in Missouri.

(End of clause)

SECTION 7

LIST OF DOCUMENTS, EXHIBITS, AND OTHER ATTACHMENTS

Attachment A APPRAISAL REQUEST (1 PAGE)

Attachment B FORM 1922-15 (ADMINISTRATIVE APPRAISAL…