Appraisal_BPA-SOW_11-12-13.docx

Solicitation Number: AG-7A22-S-14-0001 USDA Appraisal Services

SECTION 1: BLANKET PURCHASE AGREEMENT

A.1 Introduction and Overview.

USDA, Rural Development in Arkansas seeks to retain an appraisal company (hereinafter the “contractor”) to determine the market value of single family housing residential properties to ensure the Agency obtains adequate security for its loans related to Section 502 (Single Family Housing) programs.

The resulting acquisition vehicle will be a multiple award BPA. The contractor will provide all related services connection with each assigned case to complete the title services.

Notice of Total Small Business Set-Aside This is a notice that this Blanket Purchase Agreement is a total set aside for small business concern under the North American Industrial Classification System code, 531320. Only quotes submitted by small business concerns will be accepted by the Government. Any quote that is submitted by a contractor that is not a small business concern will not be considered for award.

A.2 Background

USDA Rural Development provides direct loans to eligible applicants for single family housing residential property. To support this program, USDA Rural Development requires the services of qualified persons or firms to provide appraisal services, in accordance with 7 Code of Federal Regulations (CFR) Part 3550 and Handbook-1-3550, Chapter 5, Section 5 "Appraisals" which may be located at:

http://www.rurdev.usda.gov/Handbooks.html.

The appraisals will generally be needed for loan making or loan servicing actions such as transfers, foreclosures, and voluntary conveyances; however, some houses may be Real Estate Owned (REO) or under lease, pending eviction. The appraisals of single family dwellings include manufactured homes and new construction.

A.3 STANDARDS

a. The contractor shall be licensed in the State of Arkansas as a General, Residential, or Licensed appraiser, 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. An appraiser cannot co-sign for a State Registered Appraiser for federally-related transactions. An appraiser can, however, include the person or persons who have helped with the appraisal in the addenda. Arkansas Appraisal Board rules and regulations specifically outline this for State Registered appraisers. 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. The contractor shall provide all facilities, materials, supplies, tools, equipment, personnel, and travel to complete all requirements of this agreement including performance of the professional services listed herein for Rural Development.

Appraisal Management Companies (AMCs): Under Section 5.14 of HB-1-3550 DLOS Field Office, Rural Development is required to contract directly with individual appraisers who are active on the Appraisal Subcommittee website. Therefore, for Single Family Housing Direct programs, agreements with AMCs are not permitted.

b. The appraisal shall comply with the current edition of the Uniform Standards of Professional Appraisal Practice (USPAP) (available at: www.appraisalfoundation.org ) and Agency requirements as described in HB-1-3550, Chapter 5, and in 7 CFR 3550.62a.

c. The appraisal shall be a summary appraisal report completed using Fannie Mae Form 1004/Freddie Mac Form 70, “Uniform Residential Appraisal Report,” for all one-unit, single family dwellings or Fannie Mae Form 1004C/Freddie Mac Form 70B, “Manufactured Home Appraisal Report,” for all manufactured homes in accordance with USPAP Standards Rule 1 & 2-2(b) and Rural Development Instruction HB-1-3550, Chapter 5.

USDA Rural Development Single Family Housing Section 502 Guaranteed and Direct Loan Programs adopted the new Fannie Mae and Freddie Mac Uniform Appraisal Dataset (UAD) as of January 1, 2012. This requirement is mandatory for all appraisals.

d. The Contractor will make a complete property inspection to gather data, unless the appraisal is for foreclosure purposes, in which case, an external inspection only is permitted, with the assumption made that the interior is in similar condition as the exterior. In the event an assignment is limited to an exterior-only inspection, Fannie Mae Form 2055 “Exterior-Only Inspection Residential Appraisal Report” shall be used.

A.4 GENERAL AND SPECIAL PROVISIONS:

The following general and special provisions are applicable to this Blanket Purchase Agreement (BPA) from date of issuance or amendment to the cited expiration date. The Federal Acquisition Regulation (FAR) and Agricultural Acquisition Regulations (AGAR) clauses and USDA, Rural Development Regulations, are applicable to this BPA and will be cited on the individual purchase orders issued against this BPA.

A.5 OBJECTIVE AND SCOPE

The Blanket Purchase Agreement (BPA) Contractor shall provide the personnel, facilities, materials, and technical expertise to provide Appraisal Services. The work shall be performed throughout the State of Arkansas. USDA Rural Development retains the right to assign cases under this agreement and may elect not to use appraisal services for all cases handled during the term of the agreement.

B.1 AUTHORIZED ORDERING OFFICIALS AND DOLLAR LIMITATIONS:

USDA Rural Development personnel authorized to place orders under this agreement are listed below. They will be referred to as Ordering Officials. Any individual duly acting in the capacity of the position by a designation as “Acting” or any individual appointed to the position will be authorized to order.

POSITION DOLLAR/QUANTITY LIMIT PER ORDER

Contracting Officer (CO) $150,000 per year

Single Family Housing Program Director (SFHPD $3,000 per order (not to exceed $150,000 per year) or Designee

Authorized Government Representative $3,000 per order (not to exceed $150,000 per year)

Any order exceeding the Ordering Official’s delegated authority, or not approved by the RD State Office is outside the scope of the agreement. Orders in excess of this amount shall not be honored or accepted by the Contractor. Failure to comply with this provision may result in termination of the BPA.

Any order at or above the micro-purchase threshold ($3,000) is subject to competitive quotes, and must be approved by the contracting officer.

B.2 PLACEMENT OF ORDERS

a. Orders will be placed on a rotational basis with all BPA holders.

b. Contractors will not be considered for award if they so not meet Section A.3 Standards.

c. Required registration: Contractors/individuals providing appraisal service to USDA-Rural Development must have an active registration in the System for Award Management (SAM). Information and registration requirements for SAM can be found at www.SAM.gov.

DUNS Number: _____________________________________

TAX ID# ___________________________________________

C. ASSIGNMENT OF CASES

Each order for services under the BPA will be emailed or mailed to the Contractor by the Ordering Official. Each order will be signed (may be digitally signed) and dated by the applicable Ordering Official. Please refer to Attachment B for a “sample” BPA Call (Work) Order/Task Description.

ATTACHMENTS: The Agency will provide the appraiser with the following attachments to the appraisal order:

Existing Property:

· OF 347

· Task Description

· A copy of the option or sales agreement (if applicable)

· Address of the property

· Repair list with estimated total (if applicable)

· Point of contact for the appraiser to make arrangements for interior inspection

· Other information necessary for contractor to complete the appraisal (as applicable)

New Construction Property:

· OF 347

· Task Description

· A copy of the option of sales agreement (if applicable)

· Address of the property

· Certified building plans and specifications

· Contact information (as applicable) Other information necessary for contractor to complete the appraisal (as applicable)

The Contractor shall acknowledge receipt and acceptance of each order in writing or via email within two (2) business days of the order being issued. Acknowledgement shall be submitted via email by the Contractor (or authorized representative) to the Ordering Official, the Contracting Officer, and also pam.fleharty@ar.usda.gov.

D1. BPA Terms and Conditions

Contractor shall:

Furnish sufficient labor, materials, transportation, equipment, operating supplies, and incidentals to complete the work as specified in each order.

Perform all services in a professional manner, using due professional care in all counties affected by each specific order in Arkansas.

Provide a sufficient number of qualified personnel and, in a timely fashion, perform the services according to the delivery schedule specified in each order.

Not remove, replace, or otherwise reassign any personnel without prior approval of the Government, unless such person’s employment with the Contractor was terminated by the employee of the Contractor, or for any other lawful cause for cessation of employment. The Government reserves the right to pre-approve assignment of each original and any replacement staff proposed by the contractor.

In the event of the assignment of an unqualified individual to an order, the Contractor acknowledges and agrees that it shall promptly remove such personnel and that the Government will not incur additional cost due to the replacement of the individual. Further, the Contractor shall bear all cost related to training and educating any individuals to perform services under this BPA.

All work shall be performed by, or under the direct supervision of the Contractor. All work performed by others must be reviewed and approved by the Contractor prior to submission of the required documents to the Government.

Request deviations from the specifications of this BPA in writing. Approval or disapproval of these requests will be in writing from the Contracting Officer.

D.2 RECORDS & REPORTS OF CONTRACTOR ACTIVITY

The Contractor shall maintain detailed records of all activities under this agreement and those records will be subject to USDA Rural Development review.

D.3 RETURN OF CASES TO USDA

USDA, Rural Development reserves the right to reclaim a case for any reason. All cases returned to USDA, Rural Development should be mailed or delivered to the SFHPD and CSC Foreclosure Representative, along with all documents and all pertinent records of Contractor activities. When a case is returned to USDA, Rural Development, upon written request of the SFHPD and CSC Foreclosure Representative, the Contractor shall only be entitled to payment for actual expenses. The Contractor shall have no claim against the Government for any action taken by USDA subsequent to return of the case.

E. CASES PENDING AT AGREEMENT EXPIRATION

Cases that have been assigned to the Contractor prior to the expiration of the agreement shall be completed within the terms and conditions of the agreement.

F. DESIRED AND REQUIRED TIME OF DELIVERY

Submission of Appraisal: The Government encourages Contractors to use Electronic submittals with Digital Signatures to comply with the Paper Reduction Act of 1995. Agency preference is that appraisals be submitted electronically with digital signature rather than a hard copy format. Electronic submissions should be emailed to pam.fleharty@ar.usda.gov as well as the Authorized Government Representative(s), as indicated on confirmed Optional Form 347, “Order for Supplies and Services”.

In the event the Authorized Government Representative requires a hard copy submittal, an original and one copy of the complete appraisal will be required. The copy shall contain original photographs or original color computer imaging prints of subjects and comparables. An electronic version is to be submitted pam.fleharty@ar.usda.gov.

Appraisal delivery orders placed against this BPA are due at the requesting Authorized Government Representatives office within 10 business days from issue date.

G. CONTRACTING OFFICER (CO)

Name: Robert Cortez Address: 700 W. Capitol, Room 3416 Little Rock, AR 72201 Phone: 501-301-3220 Fax: 855.747.7797 E-Mail: robert.cortez@ar.usda.gov

Agreement administration will be performed by the CO. The issuance of orders and payment processing will be done by the Contracting Officer’s Representatives (COR) or the Authorized Government Representative (AGR).

H. AUTHORIZED GOVERNMENT REPRESENTATIVE (AGR):

1. The Authorized Government Representative (AGR) will act as the Contracting Officer's representative for technical matters, providing technical direction and discussion as necessary with respect to the specification or statement of work, and monitoring the progress and quality of contractor performance. The representative is not an Administrative Contracting Officer and does not have the authority to take any action, either directly or indirectly that would change the pricing, quantity, quality, place of performance, delivery schedule, or any other terms and conditions of the contract. Nor does the representative have the authority to direct the accomplishment of any effort which goes beyond the scope of the Statement of Work in the contract.

2. When, in the opinion of the Contractor, the Authorized Government Representative 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.

3. A property contact person should be provided by the Rural Development Office or the Rural Development Office staff should be available to ensure the appraiser has access to the subject property for inspection. Appraisal fees or turnaround times should not be discussed with the property contact. The appraiser must notify the appropriate Rural Development Office 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, (4) the appraiser has any other potential conflict of interest with respect to the assignment.

4. 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. The appraiser may use such information only in connection with performance of the assignment. The appraiser must agree to prevent the unauthorized disclosure, misuse, or alteration of the confidential information. 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.

5. All appraisals shall 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 house.

6. Appraisers shall be familiar with the general provisions of the Americans with Disabilities Act because single-family housing is a property type that may be constructed and/or modified for use by individuals with disabilities. The appraiser shall consider what impact (if any) such modifications have on the value of the subject property. Any impact on value should be supported by market evidence.

7. 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.

8. 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, or 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 Rural Development Office immediately and refrain from finalizing aspects of the appraisal that could be impacted until resolution of the issue or until instructed otherwise.

9. 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 users specified by the agency).

I. BPA TERMINATION:

The BPA may be terminated under any of the following circumstances:

a. By either party with 30 days written notice.

i. In the event of termination, delivery or performance of outstanding orders may continue for a period of 30 days, after which time any remaining items will be considered cancelled.

b. When the Contractor fails to abide by the terms and conditions of the BPA, including, but not limited to:

i. Accepts order but routinely fails to deliver on time.

ii. Fails to offer RD most favored customer pricing;

c. When the Contractor consistently provides poor service.

d. If the Contractor files fraudulent claims.

e. If the Contractor demonstrates improper business practices or personal conflicts of interest.

f. If the Contractor offers kickbacks or favors to Government employees in exchange for business.

J. PERIOD OF PERFORMANCE:

1. The effective date for this Blanket Purchase Agreement (BPA) will be the Date of Award through September 30, 2014, or until cancelled by either party with 30 days written notice. In the event of termination, delivery or performance of outstanding orders may continue for a period of 30 days, after which time any remaining items will be considered cancelled.

2. Awarded rates shall be effective through the performance period of the Blanket Purchase Agreement.

3. The vendor shall furnish the services only as required by USDA, Rural Development ordering officials, during the period specified.

52.217-8 OPTION TO EXTEND SERVICES (NOV 1999)

The Government may require continued performance of any services within the limits and at the rates specified in the contract. These rates may be adjusted only as a result of revisions to prevailing labor rates provided by the Secretary of Labor. The option provision may be exercised more than once, but the total extension of performance hereunder shall not exceed 6 months. The Contracting Officer may exercise the option by written notice to the Contractor within 10 days of the contract expiration date.

52.217-9 OPTION TO EXTEND THE TERM OF THE CONTRACT (MAR 2000)

a. The Government may extend the term of this contract by written notice to the Contractor within 30 days; provided that the Government gives the Contractor a preliminary written notice of its intent to extend at least 30 days before the contract expires. The preliminary notice does not commit the Government to an extension.

b. If the Government exercises this option, the extended contract shall be considered to include this option clause.

c. The total duration of this contract, including the exercise of any options under this clause, shall not exceed 5 years.

K. EXTENT OF OBLIGATION

The USDA, Rural Development is obligated only to the extent of authorized purchases actually made under the BPA. The USDA, Rural Development is not obligated to place any orders with the vendor under this BPA. This BPA does not obligate any funds. Funds will be obligated on each individual order issued. The vendor is not obligated to accept orders under this BPA. However, if the vendor accepts an order, he/she is obligated to provide the services/end products under the terms and conditions of this agreement. The vendor may not be compensated for services performed outside the scope of the agreement.

L. COMMERCIAL WARRANTY

The services furnished shall be covered by the most favorable commercial warranty the vendor provides to the general public for such services.

M. TERMINATION FOR CONVENIENCE OR FOR CAUSE

The Contracting Officer, by written notice, may terminate any individual order or the BPA itself for the Government’s convenience or for cause.

N. DETAILED WORK REQUIREMENTS

The appraisals shall be completed giving due consideration for the following:

1. Location of Property: Adhere to legal descriptions and surveys for proper location of site to avoid errors such as infringement, encroaching, etc. when appraising a property. Property identification will not only include the legal description and address, but will include general location, city or county maps as well as subdivision sectionals to identify lot and block of subject property.

2. Use of Comparables: Use at least three (3) comparable sales of single family residential properties less than one (1) year old. Market conditions must be properly documented for sales exceeding twelve (12) months. THE USE OF PROPERTIES FINANCED BY RURAL DEVELOPMENT DIRECT LOAN PROGRAM, INCLUDING CREDIT SALES, AS COMPARABLES IS PROHIBITED AS COMPARABLES 1, 2, OR 3. THEY CAN BE USED AS BACK UP COMPARABLES ONLY. RURAL DEVELOPMENT GUARANTEED LOANS MAY BE USED AS ANY COMPARABLE BUT SHOULD BE NOTED IN APPRAISAL THAT THEY ARE GUARANTEED LOANS.

In selecting comparables for developing opinion of Site Value under Cost Approach Method that involves developed land being sold by Self-Help Grantees, contractor to ensure comparables are selected from the market area and provide a discussion concerning parameters of selected comparable properties used in developing opinion.

3. Property Improvements: In the event Rural Development provides to the Appraiser a list of repairs required to improve the property, a contributory value of the improvement shall be shown by each item listed. On recapture appraisals, a contributory value of the improvements shall be shown by each item of capital improvements completed by the borrower.

4. Depreciation: The appraiser will select the method of depreciation and provide documentation on Page 3 of the URAR in the Cost Approach section. Short and Long-lived physical depreciation is not a requirement but should be considered in properties with effective age over five (5) years.

5. Approaches to Property Value: The sales comparison analysis, cost approach, and the income approach (for non-program property only) shall be used by the Contractor in reconciling the final estimate of value of the property. The sales approach is required on all appraisals and the cost approach is required for all properties with an actual age of 50 years or less. In remote rural areas, on tribal lands, or areas with a lack of market activity, the sales approach is not required. (It should be developed but not relied upon for final market value). Instead, Form 1007, Marshall and Swift Square Foot Appraisal Form, must be used.

6. Documentation and Supporting Data: Documentation supporting the development of the appraisal shall be submitted with the completed appraisal. As a minimum the supporting documentation shall include the following:

a. Clear and concise comments should be made where required and attached to each report to support each of the approaches to market value. All adjustments must be properly supported in an addendum. Adjustments must be properly supported in an addendum for any single adjustment which exceeds 10% of the sales price of the comparable, or where net adjustments exceed 15%, or when gross adjustments exceed 25% of the sales price of the comparable.

b. 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. Extraordinary assumptions and hypothetical conditions also must be discussed with and agreed to by Rural Development prior to completion of the report. General assumptions and limiting conditions that reduce the normal scope of appraisal due diligence are not allowed. If there are no assumptions, appraiser must also state that in the report.

h. A street map delineating the neighborhood evaluated to fulfill the requirements of the neighborhood sections of the URAR must be provided showing locations of the subject and comparables.

7. Types of Value: The Task Description identifies the type of value required – “as-improved”, “as-is”, or “as is/as-improved.”

a. “As-Improved” (also known as “as built”) – Loans for planned new construction or rehabilitation require an estimate of the as-improved value. An as-improved value is based on construction plans and specifications that enable the appraiser to estimate the value of the property after development. Plans & specifications will be included with appraisal.

b. “As-Is” – Loans for existing dwellings (including a new construction dwelling that has been complete at the time of appraisal) requiring no repairs, to support servicing actions, or to determine a disposition plan for REO properties.

c. “As-Is” and “As-Improved” – When repairs to an existing dwelling or REO property are planned, the appraisal should provide both as-is and as-improved value estimates. USDA Rural Development will provide copies or provide access to required construction plans or repair list(s) as required. Repairs shall be reflected in the appraisal process as follows:

1. State the contributory value of the repairs.

2. On Payoff Appraisals, a list of Capital Improvements made by the borrower will be included with the appraisal order. Capital Improvements need to be itemized and market value of each improvement is to be listed in appraisal. Values shall be supported by market evidence.

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

8. Regardless of the intended use of the appraisal, all appraisals for Rural Development will provide Market Value based on the following Market Value definition used by agencies that regulate federally insured financial institutions in the United States:

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 are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions, whereby:

· Buyer and seller are typically motivated;

· Both parties are well informed or well advised, and acting in what they consider their best interests;

· A reasonable time is allowed for exposure in the open market;

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

· 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.

The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, © 2010.

9. Observed Conditions: The contractor is required to make a property inspection to gather data to support the determination of value. Readily observable conditions shall be noted.

a. For a proposed dwelling to be constructed, the contractor will only inspect the site for the initial appraisals. No follow-up inspection is required unless otherwise noted elsewhere in this Statement of Work. Readily observable conditions will be noted for on and off site hazards, soil contamination, grading, drainage, and access roads.

b. When applicable for existing dwellings, the contractor will inspect the interior of the building in addition to the site. Readily observable conditions will 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.

c. For uninhabited dwellings where utilities are temporarily disconnected, the contractor will inspect 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.

10. Appraisal Methodology:

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. The “Sales or Financing” field is to be completed. If the MLS data is not available, the appraiser must view the mortgages filed with the Circuit Clerk (CC). Although the mortgage at the CC does not specify the type financing, RD mortgages are defined. If a bank/financial institution mortgage is found, the appraiser may state “conventional (CONV)” and add to the addenda that the mortgage does not define the type of financing (FHA, VA, etc.). If no mortgage is found and the appraiser cannot verify the financing, if any, then the sale cannot be used as the main three comparables. It may, however, be used as a backup sale (comparables 4, 5, or 6) and be well documented that the sale is unconfirmed. The word “unknown” cannot be used in the “Sales or Financing” field per UAD.

b. Cost Approach: This method is required for all properties with an actual age of 50 years or less. 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 used in the cost. The methodology used to estimate depreciation must be stated in the report.

The remaining economic life must be stated for all properties.

The land value must be stated for all properties.

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. This method may only be used for Agency Non-Program Real Estate Owned Properties

O. PRICING:

Pricing to the USDA, Rural Development shall be as low as or lower than prices charged to the vendor’s most favored customers for comparable quantities under similar terms and conditions in addition to any trade or prompt payment discounts offered. Contractors’ basic fixed price per county/per order as quoted below. Please indicate the counties in Arkansas that your company is ready, willing, and able to provide the services for and the price for each county. Annotate “N/A” if not willing or able to provide services to a specific county:

Arkansas

Garland

Newton

Ashley

Grant

Ouachita

Baxter

Greene

Perry

Benton

Hempstead

Phillips

Boone

Hot Spring

Pike

Bradley

Howard

Poinsett

Calhoun

Independence

Polk

Carroll

Izard

Pope

Chicot

Jackson

Prairie

Clark

Jefferson

Pulaski

Clay

Johnson

Randolph

Cleburne

Lafayette

Saline

Cleveland

Lawrence

Scott

Columbia

Lee

Searcy

Conway

Lincoln

Sebastian

Craighead

Little River

Sevier

Crawford

Logan

Sharp

Crittenden

Lonoke

St. Francis

Cross

Madison

Stone

Dallas

Marion

Union

Desha

Miller

Van Buren

Drew

Mississippi

Washington

Faulkner

Monroe

White

Franklin

Montgomery

Woodruff

Fulton

Nevada

Yell

P. PROMPT PAYMENT DISCOUNTS:

a. The Prompt Payment Act, FAR 52.232-25 (OCT 2008), allows the Government to issue payment on the 30th day after receipt of a proper invoice from the Contractor, or the 30th day after Government acceptance of supplies delivered or services performed, whichever comes later, unless a discount is offered. Please indicate below any prompt payment discounts you offer. If you offer no discounts, you may leave this section blank.

__________%, 10 days; __________% 20 days; __________% 30 days

Q. EXPERT WITNESS TESTIMONY:

Contractor will provide an hourly quote for attendance at Rural Development appeal hearings and court actions. Be sure to include in your hourly quote cost associated with mileage as no additional costs will be reimbursed for this expense. Travel time for a one-day trip will be the hourly rate times the actual time spent testifying and traveling, not to exceed eight (8) hours per day.

Necessary travel time is defined as the actual time required traveling to and from the hearing place from your place of business or home, whichever is closer, by the most direct route. Actual reimbursement including travel time for a one day trip will be the hourly rate times the actual time spent testifying and traveling not to exceed eight (8) hours per day.

Expert Witness Hourly Fee: $_______________

R. CONTRACTOR EXCELLENCE:

The Contractor agrees that he/she will be responsive to the delivery dates and specifications requirements as set forth in each delivery order. Failure to comply with this provision may result in termination of the BPA.

S. INSPECTION AND ACCEPTANCE

There are 2 types of reviews conducted for appraisals contracted for by Rural - Administrative and Technical. Administrative reviews will always be conducted and a sufficient number of technical reviews will be completed to ensure that the Agency is obtaining quality appraisals. The following defines the type of review and outlines the frequency of reviews, per HB-1-3550, 5.21:

1. Administrative review: conducted within 7 days of receipt of appraisal to determine if there are inconsistencies in the appraisal report that warrant a future review of the property and the sales contract prior to loan approval, or if a technical review should be conducted by the staff appraiser prior to paying the appraiser’s invoice. Indicators that a technical review may be required consist of the following: (1) Photos and maps are not consistent with the information provided in the appraisal; (2) Large variances in actual and effective age are not supported; (3) Comparables are located outside of the subject’s market area or they are superior/inferior to the subject warranting excessive adjustments that are not supported; (4) Sales and financing concessions are not reported or comparables are not properly adjusted when they are reported; (5) History of the subject property was omitted or not analyzed; and (6) Inconsistent information in the appraisal.

2. Technical review: conducted to determine whether the appraisal meets the technical requirements of USPAP and is in full compliance with this statement of work. Technical reviews are completed for the first appraisal conducted by any contract appraiser every fiscal year. In addition to the required initial review, technical reviews will be done for a minimum of 5 percent of the contract appraisals received.

T. DISCLOSURE OF "SENSITIVE BUT UNCLASSIFIED" INFORMATION SAFEGUARDS

Any USDA Information made available or to which access is provided, and which is marked or should be marked "Sensitive but Unclassified Use Only", shall be used only for the purpose of carrying out the provisions of this contract and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract.

Disclosure to anyone other than an officer or employee of the contractor or subcontractor at any tier shall require prior written approval of the USDA. Requests to make such disclosure should be addressed to the USDA Contracting Officer.

U. PERFORMANCE MONITORING

1. The Government will monitor the Contractor’s compliance with the Statement of Work by performing a review of the each appraisal.

2. The following standards of performance will be monitored:

V. BPA Cancellation

This BPA may be terminated by the Government at any time provided at least 30 days advance written notice is provided to the contractor. The contractor, with the written consent of the CO, may terminate this BPA upon at least 30 days written notice. The parties agree that termination of the BPA does not constitute termination of any active task order issued prior to this the termination notice. Active orders will be terminated in accordance with FAR 52.212-4.

W. BILLING/INVOICING INSTRUCTIONS:

1. Invoices shall be submitted with completed property appraisals electronically to the appropriate order office listed in the purchase order.

2. At a minimum, the invoices shall include the following:

3. Failure to send a complete invoice containing the date of invoice, purchase order number, borrower’s name, and award amount may result in a delay of payment.

All payments under this Agreement will be made under the Prompt Payment Act. (See FAR Clause 52.232-1 (PAYMENTS). (APR 1984)

X. ADMINISTRATION

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

USDA – RURAL DEVELOPMENT

Attn: Robert Cortez 700 W. Capitol, Room 3416 Little Rock, AR 72201

SECTION 2: 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.

CONTRACTOR SHALL READ AND/OR COMPLETE THE NEXT 3 PROVISIONS AS PART OF THE SOLICITATION. Please initial each, and complete the applicable check boxes.

2. _____ AGAR 452.209–70 REPRESENTATION BY CORPORATIONS REGARDING AN UNPAID DELINQUENT TAX LIABILITY OR A FELONY CONVICTION (DEVIATION 2012-01) (FEB 2012)

a. Awards made under this solicitation are subject to the provisions contained in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012 (P.L. No. 112-55), Division A, Sections 738 and 739 regarding corporate felony convictions and corporate federal tax delinquencies. To comply with these provisions, all offerors must complete paragraph (1) of this representation, and all corporate offerors also must complete paragraphs (2) and (3) of this representation.

b. The Offeror represents that –

i. The Offeror is [ ], is not [ ] (check one) an entity that has filed articles of incorporation in one of the fifty states, the District of Columbia, or the various territories of the United States including American Samoa, Federated States of Micronesia, Guam, Midway Islands, Northern Mariana Islands, Puerto Rico, Republic of Palau, Republic of the Marshall Islands, U.S. Virgin Islands. (Note that this includes both for-profit and non-profit organizations.)

If the Offeror checked “is” above, the Offeror must complete paragraphs (2) and (3) of the representation. If Offeror checked “is not” above, Offeror may leave the remainder of the representation blank.

ii. The Offeror has [ ], has not [ ] (check one) been convicted of a felony criminal violation under Federal or State law in the 24 months preceding the date of offer.

iii. The Offeror has [ ], has not [ ] (check one) had any officer or agent of Offeror convicted of a felony criminal violation for actions taken on behalf of Offeror under Federal or State law in the 24 months preceding the date of offer.

iv. The Offeror The Offeror does [ ], does not [ ] (check one) have any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability. (End of provision)

3. _____ AGAR 452.209 – 71 ASSURANCE REGARDING FELONY CONVICTION OR TAX DELINQUENT STATUS FOR CORPORATE APPLICANTS

a. This award is subject to the provisions contained in the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012, P.L. No. 112-55, Division A, Sections 738 and 739 regarding corporate felony convictions and corporate federal tax delinquencies. Accordingly, by accepting this award the contractor acknowledges that it –

i. does not have a tax delinquency, meaning that it is not subject to any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, and

ii. has not been convicted (or had an officer or agent acting on its behalf convicted) of a felony criminal violation under any Federal or State law within 24 months preceding the award, unless a suspending and debarring official of the United States Department of Agriculture has considered suspension or debarment of the awardee, or such officer or agent, based on these convictions and/or tax delinquencies and determined that suspension or debarment is not necessary to protect the interests of the Government.

b If the awardee fails to comply with these provisions, USDA Rural Development may terminate this contract for default and may recover any funds the awardee has received in violation of sections 738 or 739. (End of Clause)

4. _____ 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

5. FAR 52.252-1 SOLICITATION PROVISIONS INCORPORATED BY REFERENCE (FEB 1998) This solicitation incorporates one or more solicitation provisions 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. The offeror is cautioned that the listed provisions may include blocks that must be completed by the offeror and submitted with its quotation or offer. In lieu of submitting the full text of those provisions, the offeror may identify the provision by paragraph identifier and provide the appropriate information with its quotation or offer. Also, the full text of a solicitation provision may be accessed electronically at http://farsite.hill.af.mil/

6. 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 http://farsite.hill.af.mil/

GENERAL - THE FOLLOWING CLAUSES APPLY TO ALL PURCHASE ORDERS:

52.203-3 Gratuities (APR 1984)

52.219-6 Notice of Total Small Business Set Aside (JUL 1996))

52.242-17 Government Delay of Work (APR 1984)

52.245-4 Government-furnished Property (Short Form) (JUNE 2003)

ADDITIONAL CLAUSES THAT APPLY WHEN APPLICABLE:

52.232-18 Availability of Funds (APR 1984) (Applicable if involved in the text of the order for orders issued before new fiscal year funds become available.)

52.232-19 Availability of Funds for the Next Fiscal Year beyond 9/30/14.

ADDITIONAL CLAUSES APPLICABLE TO CONTRACTS WITH INDIVIDUALS

52.223-6 Drug-Free Workplace (MAY 2001)

SERVICES - ADDITIONAL CLAUSES APPLICABLE TO PURCHASE OF SERVICES:

52.236-2 Differing Site Conditions (APR 1984)

52.236-3 Site Investigation and Conditions Affecting the Work (APR 1984)

52.236-7 Permits and Responsibilities (NOV 1991)

52.236-8 Other Contracts (APR 1984)

52.236-13 Accident Prevention (NOV 1991)

52.237-2 Protection of Government Buildings, Equipment and Vegetation (APR 1984)

52.242-14 Suspension of Work (APR 1984)

52.243-1 Changes - Fixed Price - Alternate I (APR 1984)

52.237-3 Continuity of Services (JAN 1991)

7. FAR 52.212-1 INSTRUCTIONS TO OFFERORS -- COMMERCIAL ITEMS (Jul 2013)

a. The NAICS code and small business size standard for this acquisition: See paragraph above.

b. (7) REMIT TO address: See the “Invoices and Payment” section of the BPA document.

(8) Update the representations and certifications in SAM (https://www.sam.gov). Please provide a list of any items that are of issue.

(10) Past performance information: Recent, relevant contracts or previous work with USDA will be the basis of past performance information. For new agreements, references may be used.

(d) Product samples. Not Applicable

(e) Multiple offers. Not Applicable

(f) Late Submissions: Time of receipt for solicitations is 2:00 p.m. Central Time

(j) Data Universal Numbering System (DUNS) Number. The solicitation and agreement require the Contractor to maintain current registration in the SAM database.

8. FAR 52.212-2 EVALUATION -- COMMERCIAL ITEMS (JAN 1999) 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: Technical capability, past performance and price. All evaluation factors other than price/cost, when combined, are approximately equal to price/cost. (FAR 15.304).

9. FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS -- COMMERCIAL ITEMS (Aug 2013) An offeror shall complete only paragraphs (b) of this provision if the offeror has completed the annual representations and certificates electronically via http://www.acquisition.gov . If an offeror has not completed the annual representations and certifications electronically at the System for Award Management (SAM) website, the offeror shall complete only paragraphs (c) through (o) of this provision.

10. FAR 52.212-4 CONTRACT TERMS AND CONDITIONS -- COMMERCIAL ITEMS (Sep 2013)

(f) Excusable delays. Notification by email or in writing is acceptable.

(g) Invoice. Submission by email is authorized and preferred.

(j) Transportation is F.O.B. Destination.

11. FAR 52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR EXECUTIVE ORDERS -- COMMERCIAL ITEMS (Sep 2013)

(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:

(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22 U.S.C. 7104(g)).

(2) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).

(3) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Pub. L. 108-77, 108-78).

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) 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: [Contracting Officer check as appropriate.]

___ (1) 52.203-6, Restrictions on Subcontractor Sales to the Government (Sept 2006), with Alternate I (Oct 1995) (41 U.S.C. 253g and 10 U.S.C. 2402).

___ (2) 52.203-13, Contractor Code of Business Ethics and Conduct (Apr 2010) (Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251 note)).

___ (3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (Jun 2010) (Section 1553 of Pub L. 111-5) (Applies to contracts funded by the American Recovery and Reinvestment Act of 2009).

___ (4) 52.204-10, Reporting Executive compensation and First-Tier Subcontract Awards (Jul 2013) (Pub. L. 109-282) (31 U.S.C. 6101 note).

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