Attachment 1 HLCUT PWS.docx

Performance Work Statement (PWS) HECM Loan Comparison and Underwriting Tool (HLCUT) 06/20/2024 Version 1.2

Attachment 1 Performance Work Statement Solicitation No.: 86615624R00007 HECM Loan Comparison and Underwriting Tool

Performance Work Statement (PWS) HECM Loan Comparison and Underwriting Tool (HLCUT) Vision Statement

For The Office of Housing Counseling to have a well-maintained, regularly updated, and secure Home Equity Conversion Mortgage (HECM) Loan Comparison and Underwriting Tool (HLCUT) that is 508 compliant.

1 General Information

1.1 Scope of Work

The Department of Housing and Urban Development, Office of Housing Counseling requires Contractor support to provide and maintain a subscription or Software as a Service (SaaS) HECM Loan Comparison and Underwriting Tool (HLCUT) for Home Equity Conversion Mortgage (HECM) roster counselors with secure online access. The HLCUT shall be 508-compliant. The HLCUT shall provide calculations on all types of HECM loan products including cost of origination, servicing, mortgage insurance premium, amortization schedules, total annual loan cost and track responses to required client questions during counseling sessions. The HLCUT shall also provide a financial assessment component consistent with HECM program requirements. It shall link to other HECM counselor HUD designated required online tools as identified in HUD Handbook 7610.1 Revision 6. Current online tools are noted in task 5.2 of the PWS. This tool shall provide easy to read and interpret printouts of the described information.

The contractor shall provide services for the following Tasks:

· Project Manage Plan

· Provide and implement the HECM Loan Comparison and Underwriting Tool (HLCUT)

· HLCUT Support, Updates, and Reporting

· Transition Services

Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and Deliverables.

1.2 Background

Seniors who are interested in obtaining a HECM loan must receive housing counseling from a HUD HECM roster counselor consistent with the requirements of 24 CFR 206. HECM counselors are required by HUD Handbook 7610.1, Chapter 4 and Appendix 4, (referred to as the HECM Protocol) to educate clients on all the features of HECM and the potential impact on the clients current and future circumstances. Handbook 7610.1 Chapter 4, paragraph 4-4 and Appendix 4, attachment B-11 require HECM counselors to use a HUD designated HLCUT as part of a counseling session.

The Office of Housing Counseling (OHC) is responsible for the administration and oversight of HUDs Housing Counseling Program (HCP). Authorized by Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x), the HCP supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low- to-moderate income renters, and the homeless. The primary objectives of the Program are to improve financial literacy, expand homeownership opportunities, improve access to affordable housing and preserve homeownership.

1.3 Constraints

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

· HUD Housing Counseling Program Handbook 7610.1 REV-6

· 24 CFR Part 214

· 24 CFR Part 206

· FedRAMP

· Integrated Digital Experience Act (IDEA)

· Standards for Educational and Psychological Testing

· Dodd-Frank Act

· 508 Compliance

· HUD Handbook 3435.1 Rev.2 (Risk Management Policy)

The Contractor shall maintain compliance with all current and future Federal IT security requirements. The Contractor shall:

1. Maintain IT security and comply with all terms and conditions of the contract throughout the term of the contract with respect to all data and information technology requirements.

2. Use, maintain, enhance, develop and upgrade all information technology software and system documentation under this Contract in accordance with Federal Laws, best practices, and regulations. This includes, but is not limited to:

· Federal Information Security Management Act - https://www.dhs.gov/fisma

· The Privacy Act - https://www.archives.gov/about/laws/privacy-act-1974.html

· The E-Government Act - https://www.archives.gov/about/laws/egov-act-section-207.html;

· The Clinger-Cohen Act - https://www.fismacenter.com/Clinger%20Cohen.pdf

· Government Paper Reduction Act - http://www.hhs.gov/ocio/policy/collection/;

· Office of Management and Budget Circulars A-130, and A-I23 - https://www.whitehouse.gov/omb/circulars_default;

· Office of Management and Budget Memorandum 17-12 https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2017/m-17-12_0.pdf;

· Department of Housing and Urban Development regulations, Handbooks and Policies - http://www.HUD.gov;

· GAO directives; and

· Federal Financial Manager Integrity Act (FFMIA).

3. Maintain Security Assessment and Authorization (SA&A) standards in accordance with guidance published by NIST. An independent SA&A will be performed by Housing and Urban Development (HUD) during the period of performance of this contract. The Contractor shall complete the SA&A six months after the award of the contract and again at the expiration of the SA&A, to include any revisions or updates.

4. Follow HUDs Project Planning and Management (PPM) Life Cycle (https://www.hud.gov/program_offices/cio/ppm/PPMV20HOME) and industry best practices in the analysis, design, development, testing and implementation of proposed new systems and/or the enhancement to existing systems. This includes prohibiting live data from being used in any environment other than Production and Disaster Recovery (DR) environments. Specifically, no live data should be used in development, testing or staging environments.

PPM was designed based on the best practices from Capability Maturity Model Integration (CMMI) for systems development and PMBok for project management. While at the foundation, PPM is designed as a Waterfall methodology, HUD encourages tailoring the PPM to use the many modern solution development methodologies available to enable the planning, development and delivery of useable functionality within 6-9 month increments.

Contractors are encouraged to propose a preferred methodology whether their solution(s) are for custom development, includes prototypes or pilots, Commercial Off the Shelf (COTS)/ Government Off the Shelf (GOTS) configuration, or Software as a Services. Working with the HUD Project Manager(s), the Contractor will tailor PPM to take advantage of contractor proposed expertise in using other methodologies in a manner that will provide HUD the best value and address all of the work necessary for successful project completion, on time, within budget, and delivering intended functionality.

The decisions of PPM tailoring are captured in the Project Tailoring Agreement (PTA), which documents the specific agreement for creating, combining, referring, or omitting specific artifacts applicable to the project, as well as adjust project control gate reviews to be consistent with the tailoring. All tailoring of PPM must be approved by HUD’s Deputy Chief Information Officer (DCIO) for Business & IT Modernization. As a default, any project without an approved project tailoring agreement is required to follow all PPM phases and artifacts as presented.

5. Review and update system documentation to ensure accuracy, compliance and completeness. Reviews and revisions must be completed and delivered to HUD quarterly.

6. The Contractor will prepare its security plan as part of its demonstration that it meets the requirements for SA&A per the applicable requirements from HUD, OMB, NIST, etc., which will require the preparation of several related documents, including but not limited to:

· NIST FIPS 199/200 Security Categorization Analysis;

· NIST SP-800 Security Controls Self-Assessment;

· Application and network venerability scans;

· Business Impact Assessment;

· Privacy Impact Assessment;

· Create System Security Plan, Risk Assessment, Technical Architecture, COOP and Contingency Plans, Quality Control Plan, ST&E Plan and other relevant SA&A supporting documentation for each new application;

· Security Assessment Tests (formerly ST&E Testing);

· Security Assessment Reports (formerly ST&E Report);

· POA&M; and

· Accreditation Documentation.

7. Each mixed or financial system that the Contractor manages, develops, modifies, enhances, releases and/or upgrades will be assessed under the Federal Information System Controls Audit Manual (FISCAM) methodology that include control families for both General Computer and Business Process Application controls:

· General Controls:

· Security Management

· Access Controls

· Configuration Management

· Segregation of Duties

· Contingency Planning

· Business Process Application Controls:

· Application Security

· Business Process Controls

· Interfaces

· Data Management

8. Each mixed or financial system that the Contractor manages, develops, modifies, enhances, releases and/or upgrades must comply with identified OMB A-123 Appendix A "Management's Responsibility for Internal Control", and Appendix D "Compliance with the Federal Financial Management Improvement Act of l996 key controls; and the Federal Information Security Management Act of 2002 (FISMA) to include:

· National Institute of Standards and Technology Special Publication (SP) 800-53, Security and Privacy Controls for Federal Information Systems and Organizations, Revision 5 (NIST SP 800-53, Rev. 5);

· NIST SP 800-18 Rev. 5 - Guide for Developing Security Plans for Federal Information Systems;

· NIST SP 800-23 - Guidelines to Federal Organizations on Security Assurance and Acquisition/Use of Tested/Evaluated Products;

· NIST SP 800-30 Rev. 5 - Guide for Conducting Risk Assessments;

· NIST SP 800-34 Rev. 5 - Contingency Planning Guide for Federal Information Systems;

· NIST SP 800-37 Rev. 5 - Guide for Applying the Risk Management Framework to Federal Information Systems;

· NIST SP 800-47 - Security Guide for Interconnecting Information Technology Systems

· NIST SP 800-53A Rev. 5 - Guide for Assessing the Security Controls in Federal Information Systems and Organizations, Building Effective Security Assessment Plans;

· NIST SP 800-59 - Guideline for Identifying an Information System as a National Security System;

· NIST SP 800-60 Rev. 5 - Guide for Mapping Types of Information and Information Systems to Security Categories;

· NIST SP 800-84 - Guide to Test, Training, and Exercise Programs for IT Plans and Capabilities;

· Federal Information Processing Standards (FIPS) 199/200 - Security Categorization Analysis; and

· FIPS 191 - Guideline for the Analysis of Local Area Network Security.

HUDs Office of the Chief Information Officer (OCIO) will have responsibility for maintaining the FISCAM-based mapping of security controls that will be required in order to maintain compliance with FISMA, OMB A-123, and HUD security requirements.

The Contractor shall support and provide system security to ensure availability, confidentiality, and integrity of the HUD data applications (e.g. maintaining access control, user identification, password protection and authentication, confidentiality of customer profiles and traffic, physical and personnel security required under this PWS). Provide SA&A support, including potential off cycle or unanticipated SA&A support, over the life of the contract.

The HUD System Security Plans (Risk Assessment, Incidence Response Plan and IT Contingency Plan) shall be reviewed and presented to HUDs Chief Information Security Officer for approval.

The Contractor shall maintain compliance with OMB Memorandum 17-12 (Preparing for and Responding to a Breach of Personally Identifiable Information), which requires Contractors and sub-Contractors (at any tier) to:

1. Cooperate with and exchange information with agency officials, as determined necessary by the agency, in order to effectively report and manage a suspected or confirmed breach.

2. Properly encrypt PII in accordance with OMB Circular A-130 and other applicable policies and to comply with any agency-specific policies for protecting PII;

3. Provide and participate in mandatory training on how to identify and report a breach;

4. Report a suspected or confirmed breach in any medium or form, including paper, oral, and electronic, as soon as possible and without unreasonable delay, consistent with the agency's incident management policy and US-CERT notification guidelines;

5. Maintain capabilities to determine what Federal information was or could have been accessed and by whom, construct a timeline of user activity, determine methods and techniques used to access Federal information, and identify the initial attack vector;

6. Allow for an inspection, investigation, forensic analysis, and any other action necessary to ensure compliance with OMB M 17-12, the agency's breach response plan, and to assist with responding to a breach;

7. Identify roles and responsibilities, in accordance with OMB M 17-12 and the agency's breach response plan; and,

8. Explain that a report of a breach shall not, by itself, be interpreted as evidence that the Contractor or its subcontractor (at any tier) failed to provide adequate safeguards for PII.

The Contractor shall provide and present a Security Self-Assessment Report to HUDs Chief Information Security Officer on an annual basis, due no later than August 31st of each calendar year.

Plans of Action and Milestones (POA&Ms) shall be reviewed and updated on a quarterly basis and presented to HUDs Chief Information Security Officer for review and approval.

Failure to adhere to the above NIST requirements could result in penalties, to include a contract performance stop-work order until compliance can be demonstrated. Disregard of these NIST requirements could also lead to other criminal, civil, administrative, or contract penalties, including, but not limited to:

1. Breach of Contract damages

2. False Claims Act damages

3. Liquidated Damages

4. Termination for Default

5. Termination for Convenience

6. Poor Past Performance

7. Suspension/debarment

1.4 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. The contractor is required to follow HUD’s policies, guidelines, processes and procedures. 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.

1.5 Period of Performance

The Period of Performance shall be for one twelve (12) Month Base Period with four 12-month Option Periods.

1.6 Place of Performance

The services to be performed under this contract shall be performed at the Contractors facility.

1.7 Hours of Operation

N/A

1.8 Special Qualifications

The Contractor shall employ a person with a minimum 5-years’ experience with the housing counseling industry and the HECM loan program. The Contractor shall provide resumes of these personnel as evidence of meeting this requirement for COR approval. This expertise is required due to the complex and specialized nature of the HECM program and related tool requirements.

1.9 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 and HUD Acquisition Regulation (HUDAR) clause 2452.237-79 - Post Award Conference.

1.10 Status Meetings

The Contracting Officer, Contracting Officers 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. The Post-Award Conference and subsequent meetings may be held via teleconference at the Contracting Officer's discretion.

1.11 Contractor Travel

Contractor travel is not anticipated during the contract period of performance.

2 Definitions and Acronyms

2.1 Definitions

Business Day - Every official day of the week which are days between and including Monday to Friday. This does not include federal 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 U.S. Government appointed by the Contracting Officer to perform contract administration 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 the 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) - 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.

Home Equity Conversion Mortgage (HECM) - A specific home loan program offered by the FHA, often called a reverse mortgage.

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 describes the required results in clear, specific, and objective terms with measurable outcomes.

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.

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.

Subject Matter Expert (SME) - An employee of the U.S. Government assigned by the Contracting Officer to perform contract administration 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 or perform COR duties specifically reserved for them.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level

CBRIT - Client Budget and Resource Identification Tool 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's Representative CPO - Office of the Chief Procurement Officer of HUD EST - Eastern Standard Time (U.S.)

GAO - Government Accountability Office HECM - Home Equity Conversion Mortgage HLCUT - HECM Loan Comparison and Underwriting Tool HUD - U.S. Department of Housing and Urban Development HUDAR - HUD Acquisition Regulation IT - Information Technology OCPO - Office of the Chief Procurement Officer OHC - Office of Housing Counseling OMB - Office of Management and Budget PM - Project Manager POC - Point of Contact PPM - Project Planning and Management QA - Quality Assurance QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan SaaS – Software as a Service SME - Subject Matter Expert 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

Government services will not be provided.

3.2 Facilities

Government facilities will not be provided.

3.3 Equipment

Government equipment will not be provided.

3.4 Materials and Information

See HUDAR 2452.227-70, Government Information.

The Government shall provide the following materials and information at completion of the PIV process for appropriate personnel:

· Access to FHA Connection certificate reports.

· Access to tools associated with the HLCUT including the CBRIT.

· A list of approved HECM roster housing counselors.

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 necessary to perform the required functions under this contract.

4.2 Equipment

The contractor shall furnish all equipment including software adequate to perform the required functions under this contract.

4.3 Materials

The contractor shall furnish all materials necessary to perform the required functions under this contract that are not specified in section 3.4.

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 of performance.

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

See HUDAR clause 2452.237-70 - Key Personnel in the Key Personnel section of the contract.

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 workspace area with their name and company affiliation, or at a minimum, "Contractor" after name.

5 Specific Tasks

5.1 Project Management Plan

The Contractor shall provide a Draft Project Management Plan (PMP) for the online subscription or SaaS HECM Loan Comparison and Underwriting Tool (HLCUT) for COR review and approval within 10 business days after contract award. The HLCUT should create individualized loan printouts, amortization schedule, and total annual loan cost analysis for HECM counselors and their clients to utilize in conducting scheduled counseling sessions. These printouts provide customized reverse mortgage loan analysis and comparison information for all HECM products including loan amortization schedules in a format that senior clients can clearly understand and visualize. With this goal in mind, the PMP shall include at a minimum:

1. A discussion of how the HLCUT shall create individualized loan printouts, amortization schedule, and total annual loan cost analysis for HECM counselors to utilize in conducting counseling sessions with clients.

2. A discussion of format for required reports and outputs of the HLCUT. This format shall be clear and easy for older clients to read, visualize, and understand.

3. A discussion of the process to ensure 508 compliance.

4. A discussion of the process to ensure secure access to required parties.

5. A discussion of how security of this tool shall be created and maintained in accordance with HUD requirements.

6. A discussion of the workflow of the HLCUT from sign-in to individualized loan printouts, amortization schedule, and total annual loan cost analysis for HECM counselors.

7. The PMP shall identify Contractor staff roles that are directly responsible for administering and maintaining HLCUT.

8. A transition-in plan for launch of HLCUT.

9. Initial and ongoing training plans for HECM roster counselors and designated Office of Housing Counseling staff.

10. A discussion of the process for making periodic reviews of HECM program requirements for the purpose of updating the Online Tool and implementing approved changes.

11. Describe processes for providing on-demand technical support to agency staff and counselors.

12. An outline and format for the HLCUT Monthly Report as described in section 5.3.3.

13. An outline and format for the HLCUT Update Plan as required in section 5.3.2.

14. A Continuity and Contingency Plan that outlines back-up or repair processes and plans in cases of failure of the HCLUT or loss of service to counselors.

The Contractor shall provide the Final PMP to the COR for approval within 5 business days after COR request for corrections or approval of the Draft PMP. This PMP shall be updated as necessary throughout the life of the contract. Any required changes to the PMP are subject to Contractor, COR, and SME review and approval.

Performance Standards

a) Standard: Deliver a draft Project Management Plan within 10 business days after contract award, addressing all items outlined in this task.

AQL: Five business day deviation from standard.

b) Standard: Deliver the Final PMP to the to the COR within 5 business days after COR request for corrections or approval of the Draft PMP.

AQL: Five business day deviation from standard Deliverables A001 Draft Project Management Plan A002 Final Project Management Plan

5.2 HECM Loan Comparison and Underwriting Tool (HLCUT)

The Contractor shall provide and implement a new subscription or SaaS HLCUT within 60 calendar days of contract award. The HLCUT shall have the following minimum capabilities:

1. The HLCUT shall create individualized loan printouts, amortization schedules, and a total annual loan cost analysis for HECM counselors to utilize in conducting counseling session for senior clients. These printouts shall provide customized reverse mortgage loan analysis and comparison information for all HECM products. These printouts shall contain at a minimum:

0. A comparison of estimated loan details at closing.

0. Projected loan comparisons at various future times or ages including projected figures for total cash received, cash remaining, and total cost expressed in terms of total dollars and a total annual average rate.

0. Amortization projections for selected products with year-by-year details the loans negatively amortize. Use of graphic and/or color-coded charts to make material more understandable to senior clients is recommended.

0. A feature to perform a financial assessment based on the most current HUD underwriting requirements for HECM loans. The Contractor shall provide for modifications to this feature based on any changes in HUD underwriting requirements for the HECM financial assessment.

0. Loan amortization schedules shall be presented in a format that senior clients can clearly understand and visualize. The format of these documents shall be described in detail in the Project Management Plan.

1. The HLCUT shall link to other HUD designated HECM counseling Online Tools, currently Client Budget and Resource Identification Tool (CBRIT) and may include other online HECM tools as designated by HUD.

1. The HLCUT shall include a component for tracking responses to the required questions from HUD handbook 7610. Rev 6, HECM counselors must ask a client to confirm their understanding of the HECM product.

1. The HLCUT shall include a financial assessment component that is consistent with the most current HECM underwriting requirements. This shall include any improvement or modifications as recommended by the contractor or by HUD.

1. The HLCUT shall track both individual counselor activity and activity by counseling agency and provide reports on both.

1. The HLCUT shall be available in both English and Spanish with the translation being 95% accurate as determined by HUD.

The Contractor shall provide access to the HLCUT to existing HECM roster counselors from a list provided by the COR. The Contractor shall provide each existing, new, or renewed HECM roster counselor with a unique identifier and user-selected password to access the HLCUT. The list of counselors required access changes regularly. It shall be the contractor's responsibility to ensure access is removed from counselors who no longer provide services and provide access to new counselors within 5 business days of Contractor notice. Access shall be limited to those counselors who are active HECM roster counselors, other agency personnel as designated by the agency, and HUD personnel as approved by the COR.

Performance Standards

a) Standard: The HLCUT is implemented with full function and available to HECM housing counselors within 60 calendar days of award.

AQL: Zero deviation.

b) Standard: HECM counselors' access is added or removed as required within 5 business days of contractor’s notice.

AQL: Two business days deviation from standard.

c) Standard: Translation is 95% accurate as determined by HUD.

AQL: Zero deviation.

Deliverables

A003 HLCUT

5.3 HLCUT Support, Updates, and Reporting

The Contractor shall provide updates, support and reports as outlined in this section.

5.3.1 HLCUT Support

The Contractor shall provide on-demand technical assistance (phone or chat support) to counseling agencies, HECM counselors, and HUD Office of Housing Counseling (OHC) staff from 8:00 am to 5:00 pm Monday through Friday, except for Federal holidays, in any time zone within the continental United States. Processes for technical support shall be described in detail and outlined in the Project Management Plan. The Contractor shall report on technical support provided to all users on a monthly basis as described in section 5.3.3.

At implementation of the tool, the Contractor shall provide online initial training, videos, handouts, or other materials describing in detail the use of all aspects of the HLCUT for counseling agencies, their HECM counselors, and HUD OHC staff. The plan for this training, videos, handouts, or other materials shall be outlined in the Project Management Plan. All training access provided shall be reported through the HLCUT Monthly Report as described in section 5.3.3.

Performance Standards

a) Standard: On-demand technical assistance (phone or chat support) provided for the HLCUT users as described in this task.

AQL: Zero Deviation

b) Standard: At implementation of the tool, the Contractor provides online initial training, videos, handouts, or other materials describing the use of the HLCUT for counseling agencies, their HECM counselors, and HUD OHC staff in accordance with the timeframes provided and approved in the Project Management Plan.

AQL: Zero Deviation Deliverables A004 HLCUT Online Training

5.3.2 HLCUT Updates

The Contractor shall provide updates as necessary to administer and maintain the HLCUT. The Contractor shall update the HLCUT with interest rate changes as they change daily. The Contractor shall update access to the HLCUT from a list provided either through access to reports through FHA Connection or as provided by the COR and SME. The Contractor shall also perform special updates or modifications to the HLCUT to accommodate HECM loan regulation or policy changes, mortgagee letters, suggested by the Contractor for usability, accessibility, or functionality, or at the request of the COR. The Government does not expect more than 4 special updates per contract year. The contractor shall report monthly on any changes or updates made to the HLCUT in the previous month as outlined in section 5.3.3.

Prior to each special HLCUT update or modification, the Contractor shall deliver a specific Update Plan for implementation at least 10 business days before the start of the planned implementation. This plan shall incorporate project management best practices. All plans must have an implementation date and time, risk assessment, description of changes, and expected outcome. These plans must be approved by the COR prior to implementation. At no point may the HLCUT become unavailable during normal business hours (8:00 am - 5:00 PM) in any time zone within the continental United States because of an update or modification to the HLCUT. Regular update processes for access or rate changes and the format for the Update Plan shall be defined In the Project Management Plan.

Performance Standards

a) Standard: Updates are applied as outlined within this task.

AQL: Zero Deviation

b) Standard: No update removes access to the tool during normal business hours as outlined in this task.

AQL: Zero Deviation Deliverables A005 Update Plan A006 HLCUT Update

5.3.3 Reporting

The Contractor shall provide a HLCUT Monthly Report that includes at a minimum:

1. HLCUT use volume by agency and counselor and an analysis of any trends based on that usage.

2. Any updates or changes to training materials used to provide guidance on the use of the HLCUT.

3. A summary of technical support requests and actions by the Contractor.

4. Detail by agency the number of HECM Certificates issued, RMA usage, and usage of the link to the Client Budget and Resource Identification Tool (CBRIT) or other online HECM tools as designated by HUD.

5. Proposed improvements and suggested changes to the HLCUT to be consistent with HECM requirements, improve usability and functionality, or conform with new requirements dictated by security, policy, or regulation changes. If there are no improvements or suggested changes for the period, the report shall state so.

6. A status and description of pending or completed updates for that month, including start dates and estimated completion of those updates.

HUD will provide the contractor with access to FHA Connection certificate reports and any associated tools the HLCUT may link to. The Contractor shall provide other reports as may be required by HUD to evaluate the HECM counseling program. These special report requests are rare and shall be considered a part of monthly reporting. The HLCUT Monthly Report format shall be described in detail in the Project Management Plan. The HLCUT Monthly Report shall be delivered by the 5th day of the month following the reported month.

The Contractor shall conduct a monthly teleconference call with the COR, SME, and any designated program staff to review the Monthly Report and other requirements matters. The Contractor shall take minutes of each meeting and submit to the COR for approval. Minutes of these meetings shall be due by the 5th business day following the meeting.

Performance Standards

a) Standard: Reports conform to the minimum standards outlined in this task and contain all sections as described.

AQL: Zero Deviation

b) Standard: Reports are delivered by the 5th day of the month following the reported month.

AQL: Two business day deviation from standard.

c) Standard: Minutes of monthly meetings delivered by the 5th business day following the meeting.

AQL: Two business day deviation from standard.

Deliverables A007 HLCUT Monthly Report A008 Meeting Minutes

5.4 Transition Services

Transition In Services The Contractor shall furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 30-day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

Transition periods shall be for no less than 30 days. During the Transition-In period, the Contractor shall ensure effective communication through regular meetings with the incumbent contractor. The purpose of this period is to allow the incoming Contractor time to on-board personnel, create or edit the Project Management Plan, finalize the HLCUT, and transition other tasks under this PWS.

Transition Out Services To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the 30-day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

The Contractor shall develop a Transition Out Plan to ensure effective communication through regular meetings with the incoming contractor. This Transition Out Plan shall outline the Contractor’s responsibilities and processes to effectively hand over support of the tool without causing interruption to the service while transitioning. The Contractor shall provide support to the incoming contractor as may be necessary or requested. Support shall include, but is not limited to answering questions, sharing best practices, and providing materials, access, code, software, or other materials or requirements as may be necessary or requested for transitioning the HLCUT to the new contractor. The Transition Out Plan shall be delivered to the COR within 20 business days after the start of the fourth option period of the contract and is subject to COR review and approval.

Performance Standards

a) Standard: The Contractor performs all duties noted in the PWS to the outlined standards at the completion of the Transition-In Services with no interruption of service.

AQL: Zero Deviation

b) Standard: The incumbent Contractor provides support to the incoming new contractor as described in this section during the entire Transition-Out period.

AQL: Zero Deviation

c) Standard: The Contractor provides the Transition Out Plan within 20 business days after the start of the fourth option period of the contract.

AQL: Five business day deviation from standard.

Deliverables A009 Transition Out Plan 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.

as outlined in section 6.1

6.1 Quality Control Plan

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 they assure themselves that their work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

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.

The Contractor's QCP shall be delivered to the COR within 30 days after contract award. The QCP shall be submitted to the COR within 5 business days when changes are made thereafter.

6.2 Acceptance Criteria

Each contract deliverable shall meet the following inspection and acceptance criteria in additional to any "Inspection and Acceptance contract terms and conditions:

· Deliverables shall incorporate all HUD comments;

· All deliverables shall be provided to the designated COR first in draft format for review and comment unless specified otherwise by the COR;

· Subsequent final reports shall incorporate the comments, changes, edits, and concerns expressed to the Contractor by the COR. All deliverables shall be grammatically correct, reflect comprehensive research, incorporate complete analysis, and address HUD concerns;

· Acceptance of all deliverables shall be provided in writing by the COR within 5 business days. Upon written notification by the COR, the Contractor shall make any required revisions and resubmit the documentation within 5 business days, and/or submit a final draft within two (2) business days. The COR will inform the Contractor of the final draft.

· The Contractor shall provide any further refinement needed for documents required by the COR;

· All deliverables must be in compliance with Section 508 requirements as established by the Section 508 Access Board and other HUD guidelines; and

· In the event the Government deems a deliverable as unacceptable and the deliverable is rejected, the Contractor shall rework the deliverable at no cost increase to the contract. In the event the Government deems the services are unacceptable and rejects the service, the Contractor shall take action necessary to correct deficiencies and bring the service into compliance with the acceptability standards of the contract.

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

8 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 PM 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.

Performance Requirement Summary (PRS)

AQL: Five business day deviation from standard.

b) Deliver the Final PMP to the to the COR within 5 business days after COR request for corrections or approval of the Draft PMP.

AQL: Five business day deviation from standard.

AQL: Zero deviation.

b) HECM counselors' access is added or removed as required within 5 business days of contractor’s notice.

AQL: Two business days deviation from standard.

c) Translation is 95% accurate as determined by HUD.

AQL: Zero deviation.

a) HUD will apply a 1% reduction from the associated monthly contract LIN price for each day performance falls below the standard even if it meets or exceeds the Acceptable Quality Level (AQL).

b) and c) HUD will apply a 0.5% reduction from the associated monthly contract LIN price for each day performance falls below the standard even if it meets or exceeds the Acceptable Quality Level (AQL).

AQL: Zero Deviation

b) At implementation of the tool, the Contractor provides online initial training, videos, handouts, or other materials describing the use of the HLCUT for counseling agencies, their HECM counselors, and HUD OHC staff in accordance with the timeframes provided and approved in the Project Management Plan.

AQL: Zero Deviation HUD will apply a 0.5% reduction from the associated monthly contract LIN price for each day performance falls below the standard even if it meets or exceeds the Acceptable Quality Level (AQL).

AQL: Zero Deviation

b) No update removes access to the tool during normal business hours as outlined in this task.

AQL: Zero Deviation HUD will apply a 0.5% reduction from the associated monthly contract LIN price for each day performance falls below the standard even if it meets or exceeds the Acceptable Quality Level (AQL).

AQL: Zero Deviation

b) Reports are delivered by the 5th day of the month following the reported month.

AQL: Two business days deviation from standard.

c) Minutes of monthly meetings delivered by the 5th business day following the meeting.

AQL: Two business days deviation from standard.

HU…