Draft_PWS.pdf

Performance Work Statement (PWS)

Financial, Audit, Compliance and Risk

Analysis Services

02/05/2019

Version 1.0

Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.4 Description of Services

1.5 Non-Personal Services

1.6 Period of Performance

1.7 Place of Performance

1.8 Hours of Operation

1.9 Special Qualifications

1.10 Post Award/Kickoff Conference

1.11 Status Meetings

1.12 Contractor Travel

1.13 Transition In

1.14 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

4.7.1 Quality Control Plan

5 Specific Tasks

5.1 ACA Program Compliance Review

5.2 Financial Statement Reviews to Include Management and Marketing (M&M)

Contractors

5.3 Review of ACA Participant's Financial Statements

5.4 Review of HOC Payment Processes for REO-related Transmittals

5.5 Detailed Expenses and Cost Analysis

5.6 Financial Control Manual for REO Activity

5.7 Closing Agent File Reviews

5.8 Review of National Servicing Center (NSC) Operations to Include Loss Mitigation

Programs

5.9 Special Projects

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Work Statement (PWS)

Financial, Audit, Compliance and Risk Analysis Services

Vision Statement

To ensure that all financial transactions and programs associated with REO and servicing activities, performed by Headquarters' Office of Single Family Asset Management and the four Home Ownership Centers (HOCs) are performed in accordance with HUD-established directives and federal regulations.

1 General Information

1.1 Introduction

The Office of Single-Family Housing (OSFAM) requires the services of a Certified Public Accounting firm.

The Contractor shall provide attest and non-attest services to include providing compliance reviews and monitoring, quality control testing and evaluation, internal control evaluations, and reviews compliant with the Departmental Management Control Program (Handbook 1840.1). The Contractor shall assist OSFAM with assessing the internal control structure for managing the risk of improper payments in disposing of HUD single-family program properties.

1.2 Background

Over the past ten (10) years, OSFAM has engaged an Accounting CPA Firm with assessing the controls over its financial transactions related to the management of its REO inventory, Servicing Operations, transactions related to the Management & Marketing Contracts, and with reviewing financial transactions and programs associated OSFAMs operations.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

All work shall be performed in accordance AICPA guidelines by a Certified Public Accountant (CPA).

1.4 Description of Services

OSFAM requires the services of a Certified Public Accounting firm to ensure that all financial transactions and programs are performed in accordance with HUD-established directives and federal regulations. The Contractor shall provide attest and non-attest services to include providing compliance reviews and monitoring of policies and programs, quality control testing and evaluation of OSFAMs program and transactions, internal control evaluations of processes, and reviews of OSFAMs programs to determine if programs are compliant with the Departmental Management Control Program (Handbook 1840.1). The Contractor shall perform the services described in section, as requested/ordered by HUD.

The Contractor shall use internal HUD data, external industry data, and any other information the

Contractor and HUD agree is valid to evaluate program performance/compliance in terms of meeting

Departmental goals while minimizing opportunities and incidences of waste, fraud, and abuse. The

Contractor shall make field visits to Contractors within the M&MIII structure to include but, not be limited to: mortgagee compliance manager, field servicer manager, and asset manager. The Contractor shall also make field visits to the HOCs to conduct procedural and file reviews necessary to ensure that HOCs are following prescribed guidelines for program administration and to measure the effectiveness of internal controls. During its HOC reviews, the Contractor shall use data mining, recovery auditing, and other techniques deemed appropriate by the Contractor and HUD to conduct comprehensive analyses needed to ensure proper corrective actions are taken, if necessary.

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently

Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be a base year of 12 months and four 12-month option years for a total of five years.

1.7 Place of Performance

The services to be performed under this contract shall be performed at HUD's Headquarter, HUD's Homeownership Centers (HOCs), and the HUD's National Servicing Centers (NSC).

1.8 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:00am - 4:30pm Monday thru Friday except for Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. Weekly hours shall not exceed a forty (40) hour work week and a typical work day will be 8 hours each day Monday through Friday. The Government reserves the right to change hours of operation or restrict contractor access.

Work outside of these daily hours is prohibited without Contracting Officer approval. Government agencies will not be available during scheduled holidays, inclement weather, weekends, and after duty hours.

The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for the above reasons.

When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

The Contractor is responsible for ensuring its employees possess and maintain a current CPA License and certification during the execution of this contract. The Contractor should have a Partner, Manager, Staff Accountant, and an Office Administrator and at least two of the employees should have a current CPA license.

1.10 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officer’s Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the GTR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Washington, DC. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

1.13 Transition In

N/A

1.14 Transition Out

N/A

2 Definitions and Acronyms

2.1 Definitions

Alternate Contracting Officer's Representative (Alternate COR) - an individual designated by the Contracting Officer to assist in providing technail direction and monitoring performance under the contract.

Business/Work Days - Every official work day of the week which are days between and including

Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the week.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the

Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officer's Representative (COR) - An employee of the US Government appointed by the

Contracting Officer to perform contract administrative activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Defective Service - A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP ) - Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard - The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Physical Security - Actions that prevent the loss or damage of Government property.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Assurance Surveillance Plan (QASP) - A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

Quality Control (QC) - All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Service Contract - A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Subcontractor - Any person , other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level ARAMS - Automated Renewal and Amendment System

BAA - Business Area Analysis Study

CBT - Computer-Based Training

CCB - Change Control Board

CCMB - Configuration Change Management Board

CMMI - Capability Maturity Model Integration

CFO or OCFO - Office of the Chief Financial Officer of HUD

CFR - Code of Federal Regulations

CIO or OCIO - Office of the Chief Information Officer of HUD

CO - Contracting Officer

COR - Contracting Officer Representative

COTS - Commercial Off-the-Shelf

CPO - Office of the Chief Procurement Officer of HUD

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

GAO - U.S. General Accounting Office

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

HUD/ISG - Internet Services Group within the Telecom Processing Division

HUD Web - HUDs Intranet Web Site and related WEB pages.

IG or OIG - Inspector General (Office of)

IT - Information Technology

IV&V - Independent Validation and Verification

LOOCS - Line of Credit Control System

OCPO - Office of the Chief Procurement Officer

OIG - Office of Inspector General

OMB - Office of Management and Budget

PL Public Law

PM - Project Manager

POC - Point of Contact

PPM - Project Planning and Management

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SF - Standard Form

TBD - To be determined

U.S.C - United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

No Government services will be provided.

3.2 Facilities

The Government may provide office space, cubicle, or work area herein referred to as "office".

3.3 Equipment

No government equipment will be provided.

3.4 Materials

The Government will provide Contractor with copies of materials and documents in hard copy or soft copy. All materials and documents will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period. Government furnished materials to be used by the Contractor in performance of the tasks identified in the PWS are as follows:

o Part Number 27B, Part Name: Nonjudicial Foreclosure of Single Family Mortgages o Part 30, Civil Money Penalties: Certain Prohibited Conduct o Part 203, Single Family Mortgage Insurance o Part 206, Home Equity Conversion Mortgage Insurance o Part 235, Mortgage Insurance and Assistance Payments for Home Ownership and Project

Rehabilitation o Part 280, Nehemiah Housing Opportunity Grants Program.

o Part 291, Disposition of HUD-acquired single family property.

Other sections/other years: http://www.gpoaccess.gov/cfr/retrieve.html Certain Sections of Title 12 of the US Code that are pertinent to the Office of Asset Management are listed below.

This list is not all inclusive under 12 US Code Ann:

o Section 201, Sec 1707- Definitions o Section 203, Sec 1709, Insurance of Mortgages o Section 204, Sec 1710, Payment of Insurance o Section 204, Sec 1710 (g) and (h), Handling and disposal of property; Settlement of

Claims, disposition of Assets in revitalization areas o Section 230, Sec 1715u, Authority to assist mortgagors in default o Section, Sec 1715z-11a, Disposition of HUD-Owned Properties o Section 247, Sec 1715z-12, Single-family mortgage insurance on Hawaiian home lands o Section 248, Sec 1715z-13, Single family mortgage insurance on Indian reservations o Section 184, Sec 1715z-13a, Loan Guarantees for Indian Housing o Section 184a, Sec 1715z-13b, Loan Guarantees for Native Hawaiian housing o Section 255, Sec 1715z-20, Insurance for home equity conversion mortgages for elderly homeowners o Section 536, Sec 1735f-14, Civil money penalties against mortgagees, lenders, and other participants in FHA programs http://www.gpoaccess.gov/cfr/retrieve.html o Section 805, Sec 3751-3768, Single Family Mortgage Foreclosure Act of 1994 o If a section you are needing is not listed, please refer to http://uscode.house.gov/download/downloadPDF.shtml

Departmental Management Control Program (Handbook 1840.1

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The contractor shall furnish all facilities, equipment, and supplies required to perform the work under this PWS.

4.2 Equipment

The contractor shall furnish all equipment and supplies to meet the requirements under this PWS.

4.3 Material

The contractor shall furnish all materials to meet the requirements under this PWS.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager.

These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel. The Contract/Project Manager and alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance, and direction from the COR, Alternate COR, and CO per HUDAR 2452.237-73, http://uscode.house.gov/download/downloadPDF.shtml

"Conduct of Work and Technical Guidance" and shall be allocated enough hours to the requirement to ensure successful performance. These points of points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or at a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP). The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 Specific Tasks

5.1 ACA Program Compliance Review.

o Determine each ACA Program Applicants financial capacity to participate in HUDs ACA Program and comply with the terms of the HUD-established standard ACA Agreement.

Conduct regular compliance reviews of ACA Participants to ascertain adherence to the requirements/terms of their contract (i.e., executed ACA Agreement) with HUD. Provide a detailed annual

Compliance Report on each ACA Program Participants operations and performance under its contract.

As necessary, provide additional Compliance Reports (more frequently than annually) on an ACA

Program Participants operations and performance under its contract.

Performance Standards

a) Standard: Use the agreed upon procedures (AUP) report pursuant to AICPA guidelines.

AQL: Zero deviation

b) Standard: Provide a report that at a minimum shall include a description of the scope of the review, results, and an executive summary, providing an opinion of the ACA participants compliance with the terms of their contract with HUD.

AQL: Zero deviation

5.2 Financial Statement Reviews to Include Management and Marketing

(M&M) Contractors.

o Review financial statements of any REO or NSC Program Participant or Contractor (e.g., mortgagee compliance manager, field servicer managers, and asset managers, to assess financial capacity and identify any red flags that would jeopardize the ability of the entity/participant to comply with any HUD established requirements.

Provide necessary financial and audit control services to help Housings HQ Offices, HOCs, and NSC fulfill their oversight responsibilities.

Performance Standards

a) Standard: Use AICPA guidelines as it pertains to no-attest engagements.

AQL: Zero deviation

b) Standard: Provide a report that at a minimum shall include an executive summary, scope and results.

5.3 Review of ACA Participant's Financial Statements.

Conduct a detailed review of each ACA Participants financial statements on an annual basis, prepare a report in a format acceptable to HUD, on the financial condition of each ACA Participant and discuss any non-compliance matters/findings that may be a red flag and warrant a more comprehensive review or further investigation by HUDs Office of Inspector General.

Performance Standards

a) Standard: Use AICPA guidelines as it pertains to no-attest engagements.

b) Standard: Provide a report that at a minimum shall include an executive summary, scope and results.

5.4 Review of HOC Payment Processes for REO-related Transmittals.

o Conduct quarterly reviews of each HOCs payment processes associated with its REO preservation and disposition activities. (This report will include findings and/or recommendations for changes needed to bring the HOC into compliance with program guidelines. To develop this report, the Contractor will examine the HOCs files and use of systems, review appropriate data within P260; and conduct entry and exit consultations with REO Directors and other HOC personnel as appropriate to inform them of the scope of the review and findings/recommendations. The Contractor will provide a report on each review.

Review payments to M&M III Contractors and vendors. Compare M&M Contractor payments to transmittals submitted. Ensure that payments were made in conformance with current guidelines and that measures to prevent improper payments are effective. Recommend changes if warranted.

Performance Standards

a) Standard: Use AUP report pursuant to AICPA guidelines AQL: Zero deviation

b) Standard: Provide a report that at a minimum shall include executive summary, scope, and results.

5.5 Detailed Expenses and Cost Analysis.

o Analyze detailed cost data related to property disposition and pre-conveyance activities, e.g. preservation and protection (P&P) activities.

o Compare HUDs P&P expenses (paid via claim disbursements) for similar P&P costs within the same geographical area to determine if HUD is paying varying costs for identical services.

o Recommend actions for correction, if warranted.

Establish metrics for continued evaluation of per property P&P expenses, expense classifications and cost allocation data.

Performance Standards

a) Standard: Use AICPA guidelines as it pertains to non-attest engagements.

AQL: Zero deviation

b) Provide a report that at a minimum shall include explanation/purpose of the report and an executive summary, scope and results.

AQL: Zero deviation

5.6 Financial Control Manual for REO Activity.

Revise, update, and if necessary, expand the Financial Control Manual to include procedures for payment of invoices received from HUDs M&M Contractors. Audit/Review financial transactions of any Contractor

HUD use to dispose of its REO inventory. Ensure corrective actions related to any findings identified as a result of an audit/review are documented and ultimately, addressed in subsequent reviews Performance Standards

a) Standard: Use AICPA and GAO guidelines as it pertains to non-attest engagements.

AQL: Zero deviation

b) Standard: At a minimum the manual shall include an executive summary highlighting changes made, scope of review, and results.

5.7 Closing Agent File Reviews.

Audit and review the sales cost, services, and documentation provided by HUD- contracted Closing

Agents to include the HUD 1 Settlement Statement and any other closing documents. NA- Closing

Agent Reviews are not needed by the Office of Single Family Asset Management. Funds from CLIN 7 are not being utilized at this time, but may be used for other tasks in the future.

Performance Standards

a) Standard: Use AUP report pursuant to AICPA guidelines AQL: Zero deviation

b) Standard: At a minimum, the report shall include a description of the scope of the review, results, and an executive summary, providing an option o the Closing Agent’s compliance with the terms of their contract with HUD.

AQL: Zero deviatioin

5.8 Review of National Servicing Center (NSC) Operations to Include Loss

Mitigation Programs.

o Review loss mitigation and servicing activities associated with forward mortgages, 235 loans, and Home Equity Conversion Mortgages. Review documents associated with FHAs Pre-foreclosure Sales (PFS); Deeds-in-lieu of Foreclosures, etc. Other servicing review activities include the review of lender accepted or rejected Special Forbearances and Loan Modifications for FHA distressed borrowers.

Review FHAs partial claim portfolio to determine if the National Servicing Centers (NSC) internal controls are operating effectively as they relate to the policies and procedures established for originating and servicing partial claims; analyze whether control measures are sufficient to prevent overpayment of funds to lenders and abuse by investors; ensure safeguards have been developed to prevent abuse or erroneous payments.

Performance Standards

a) Standard: Use AICPA guidelines as it pertains to non-attest engagements.

AQL: Zero deviation

b) Standard: At a minimum, the report shall include an executive summary, scope, and results.

5.9 Special Projects.

o Conduct Special Project reviews of the Office of Single Family Asset Managements programs and Information Systems as requested by the Program Office to include, but not limited to the following:

o Reviews of high risk areas and make recommendations for improvement to the following Property Disposition methods and programs:

▪ General Property Disposition Program

▪ Dollar Home Sales

▪ Good Neighbor Next Door Program

▪ Sales to Nonprofit Organizations and Government Entities

▪ Revitalization Area Sales o Conduct compliance reviews of the Single Family Asset Managements IT support and Loan Servicing systems. Determine if Contractors are adhering to contract requirements.

Ascertain if IT systems are operating and functioning adequately as outlined in contract requirements. Ensure areas reviewed are adhering to FISMA requirements and protecting information and information systems from unauthorized access, use, disclosure, and disruption. Based on observations and testing of controls, determine if risk are properly mitigated. Provide detailed reports, recommendations, and corrective action evidence for strengthening controls.

o Develop training for HOC personnel relevant to OSFAM program compliance and/or audit findings issued by GAO, OIG, etc. Examples of training include, but are not limited to the following:

▪ Developing uniform on-line training sessions for M&M Contractors, GTMs, GTR;

▪ Organizing and conducting seminars for ACA participants.

▪ Organizing and conducting outreach sessions to promote participation in

HUDs ACA program.

Financial Control Manual update training

Performance Standards

a) Standard: Use AICPA guidelines as it pertains to attest non-attest engagement.

AQL: Zero deviation

b) Standard – The attest engagement shall be in accordance with GAAP, GAAS guidelines.

AQL: Zero deviation

c) Standard: At a minimum, the report shall include an executive summary highlighting all important high risk information.

6 Deliverables

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Number Name Frequency Quantity

TBD

6.1 Quality Control Plan

The Contractor's QCP shall be delivered to the GTR within 30 days after contract award (or with the Contractor's proposal if it is an evaluation factor). The QCP shall be submitted to the COR within 5 business days when changes are made thereafter. After acceptance of the QCP, the Contractor shall receive the Contracting Officer's acceptance in writing of any proposed change to its quality control system.

6.2 Acceptance Criteria

Acceptance of all deliverables shall be submitted in a draft format agreed upon by the Contractor and the

Government. Upon review and acceptance by the Government, the Contractor shall address all

Government comments and submit a final draft within five (5) business days of the Government notification.

7 Performance Requirements Summary

The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While some contract requirements may not be listed in the chart below, requirements not appearing on the PRS chart do not negate the Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and/or Alternate COR may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services.

8 Related Documents

The Contractor shall abide by all applicable regulations, publications, manuals, policies, and procedures in the performance of this contract.