Attch_1_Draft_SOW.docx

BACKGROUND: United States Department of Agriculture (USDA) Rural Development (RD) provides loans to eligible applicants for Single Family Housing in rural communities.

OBJECTIVE: RD requires the services of qualified person(s) or firm with a certificate for the state of Colorado to provide appraisal services for the purpose of determining the market value of single family real estate for loan making, servicing, acquisition and sale. The qualified person(s) or firm may have to defend that appraisal in a court of law or in the USDA appeal process hearing, and shall be in accordance with RD instruction and the Uniform Standards of Professional Appraisal Practice (USPAP).

The vendor shall furnish the necessary personnel, material, equipment, services and facilities necessary to provide the specific services described below. The fixed rate quoted at the time a Purchase Order is placed to the vendor shall include all wages, indirect costs, overhead, general and administrative expenses, sales tax, profit, and all travel expenses necessary to complete the appraisals.

The vendor shall furnish these services only as required by Ordering Officials, according to the following specifications:

SPECIFICATIONS: The Vendor/Appraiser shall:

A. Provide professional appraisal services upon receiving a request from the Contracting Officer and deliver the completed appraisal(s) to the office listed on the instructions of the Order Ticket within the time specified in the order ticket. Appraisals delivered in Portable Document Format (PDF) are acceptable and preferred.

B. Appraisals must be typed and will conform to the "Uniform Standards of Professional Appraisal Practice: (USPAP) as promulgated by the Appraisal Foundation and submit the typewritten appraisal(s), along with Form 1007, “Marshall Swift Square Foot Appraisal Form” (MCS Form SQF) , for all proposed and existing properties under one (1) year of age, and attachments to document justification of value. Unless otherwise informed, each appraisal must meet the requirements for an “Appraisal Report” as outlined in the USPAP Standards Rule 2-2. Electronic versions of a Uniform Residential Appraisal Report may be used as long as it is arranged in the exact format with the same information. All Appraisals shall include a completed 1004MC.

C. The following documentation, as a minimum, will be attached to support the final value:

1. Complete legal description of the property being appraised.

2. The Sales Comparison Approach and Cost Approach must be used.

(i) Sales Data Comparison Approach: At least three (3) comparables less than one (1) year old will be used. Each appraisal will utilize sales of non-Rural Development direct loan financed properties in the sales comparison approach. Each appraisal will include narrative documentation which supports how and why adjustments for attributes (i.e. location, quality, physical attributes, etc.)

were made in the sales comparison approach.

(ii) Cost Approach: a cost approach is required when the property has an actual age of 50 years or less in accordance with PN 465, dated 8/21/2013. Use of Marshall-Swift Cost Analysis (Form 1007) is mandatory for all proposed and existing properties under one (1) year of age.

3. Photographs of property to show front, rear, side and street appeal of property being appraised and photographs of comparable sales and should be original photographs taken by the appraiser.

4. For foreclosure appraisals, the appraiser will e-mail the appraisal in pdf format to the Rural Development Office as listed on the Order Ticket. The Order Ticket from Rural Development will specify the e-mail addresses where the appraisal is to be sent electronically.

5. Each appraisal must contain sufficient supporting documentation to show the reader that the market value is reasonable. The reader should be able to follow the appraiser's logic, reasoning and analysis.

D. If another person provides significant professional assistance to the state-certified appraiser in completing the report, that fact should be noted in addenda to the report. The subject and comparable sales must be visited by the State-Certified General or Residential Real Estate Appraiser. The report must be dated and signed by the State-Certified General or Residential Real Estate Appraiser and he/she must include the State Certification or license -- signifying the state certification—to the signature page of the appraisal report.

E. All reports must be deemed acceptable by the Agency Appraiser. The Vendor/Appraiser will correct or offer a written explanation of any appraisals returned for deficiencies within five (5) calendar days of notification.

Appraisal products for which USDA, Rural Development – Colorado may contract, include appraisal reports with a full inspection, “Exterior-Only” appraisal reports which require inspection of the subject from the street, and final inspections where completion of the improvements has been made a condition of the Appraiser’s opinion of value. Appraisals may be prepared for the intended purposes of mortgage lending, foreclosure, inventory, or for subsidy recapture.

In all instances inspection and original photographs of the comparables from the street are required. Exceptions can be realized for comparable photographs when the property cannot be viewed from the street, i.e. a long driveway with the view blocked by landscaping / trees or in instances where the properties are located behind a security gate. In these instances photographs from the available MLS system will be acceptable. In all other instances original photographs are required.

For a subsidy recapture assignment it is mandatory to conduct a physical site inspection including viewing the interior for any improvements. When the appraiser is denied access by the property owner, the appraiser should document the denial in their file and contact the person listed on the Order Ticket instructions so they too may contact the property owner. Documentation of denial of the inspection should be included in an e-mail to the Contracting Officer to include date and time of contact(s) and the outcome of the conversation with the property owner.

The appraiser must obtain approval from the Contracting Officer prior to converting a full appraisal to an “exterior only” appraisal.

“Exterior-Only” appraisal reports shall be provided in limited instances as follows:

Assignments requiring a pre-foreclosure appraisal may be ordered as an appraisal requiring inspection or they may be ordered as an “Exterior Only” assignment. Should the appraiser contact the property owner and be denied access to the dwelling or experience other instances where the appraiser is not comfortable completing an interior inspection they should contact the Contracting Officer who has the authority to convert the request to an “Exterior-Only” assignment. Documentation of denial of the inspection should be included in the addenda of the appraisal report including date and time of contact and the outcome of the conversation with the property owner.

In all assignments, USDA, Rural Development-Colorado will provide as much information regarding the property as is possible from our files. Other sources of information may be used by the appraiser including MLS, previous appraisal files, etc. with the appropriate extraordinary assumptions regarding the property and its condition. These extraordinary assumptions must be clearly stated within the appraisal report and the value conclusion conditioned upon them.

The appraiser MUST verify if the subject property is located on a public or private street, whether the street is publically maintained, and whether the subject site can be further subdivided under existing zoning ordinances.

For appraisal reports where the purpose is for subsidy recapture, capital improvements must be noted within the appraisal report along with their estimated contributory value. Capital improvements do not include normal maintenance items such as carpeting, painting, or installation of water heaters, etc. These items should be considered as part of the overall condition of the property but are not capital improvements for purposes of subsidy recapture.

The System for Award Management (SAM) is the Official U.S. Government system that consolidated the capabilities of CCR/FedReg, ORCA, and EPLS. There is NO fee to register. The site is https://www.sam.gov/portal/public/SAM/ . Your CCR username does not work in SAM. You will need a new SAM User Account to register or update your entity records. User guides and webinars are available under the Help tab. You will be required to have a DUNS number.

For Current users: If there is a change in e-mail address, designated financial institution, Company name or address, the attached instruction will lead you step by step to update your registration in SAM. SAM will send notifications to the registered user via email 60, 30, and 15 days prior to expiration of the Entity. PLEASE NOTE: If the SAM registration expires for a Vendor/Appraiser that is currently on the Approved List, then appraisal requests to that Appraiser will cease immediately and will not begin again until the company can update their registration.

EXPERT WITNESS TESTIMONY

In the event the contractor is requested to present testimony at any hearing or legal proceeding within 5 years from the acceptance date of the appraisal, expert witness testimony will be ordered on an “as needed” basis under a separate instrument, such as a purchase order, not under this agreement. In the event the Vendor/Appraiser is requested to participate in an interview with the Office of Inspector General (OIG) relative to an investigative case; the Vendor/Appraiser shall log the beginning and ending time on a sheet of paper, have it signed by the OIG investigator then attach to the invoice and forward to the Contracting Officer for payment.

CHANGES

Changes in the terms and conditions of this Agreement may be made only by written agreement between the Contracting Officer and the Vendor/Appraiser.

DISPUTES

This contract is subject to the Contract Disputes Act of 1978, as amended (41 U.S.C. 601-613). Failure of the parties to this contract to reach agreement on any request for equitable adjustment, claim, appeal or action arising under or relating to this contract shall be a dispute to be resolved in accordance with the clause at FAR 52.233-1, Disputes, which is incorporated herein by reference. The Contractor shall proceed diligently with performance of this contract, pending final resolution of any dispute arising under the contract.