C04 - ATTACHMENT 2 - Statement of Work.pdf

US Department of Agriculture (USDA)

Statement of Work

Contents Project

General Information

1.0 Objective

2.0 Background

Contractor Requirements

3.0 Scope

4.0 Description of Services

5.0 Payment

6.0 Conflict of Interest

7.0 Authority

8.0 Nondisclosure

9.0 Civil Rights and Program Delivery

10.0 Wisconsin NRCS Contact for Deliverable Submission

Project Title Search and Closing Services for WI NRCS Easement Programs 2026 - 2031

General Information

1.0 Objective

The objective of this blanket purchase arrangement (BPA) is to obtain Title Services in Wisconsin.

Services include title search, title commitment, post survey updates, final title policy, and closing services for acquisitions of conservation easements on behalf of the United States of America, acting by and through the Natural Resources Conservation Service (NRCS), U.S. Department of Agriculture (USDA).

2.0 Background

The Agricultural Conservation Easement Program Wetland Reserve Easement component (ACEP-WRE), the Wetlands Reserve Program (WRP), Emergency Watershed Protection Program - Floodplain Easements (EWPP-FPE), Regional Conservation Partnership Program (RCPP) US Held easements and the Healthy Forest Reserve Program (HFRP) each provide authorization for the United States to acquire conservation easements from willing landowners for the purpose of restoring and protecting wetlands, floodplains, or forest lands respectively. NRCS is the agency within the USDA that is responsible for administration of these programs.

Contractor Requirements

3.0 Scope

The contractor must coordinate, facilitate, and perform the following services:

1. Provide the title commitment (or title search and/or update of abstracts), including copies of all instruments that created rights, interests, or encumbrances, for the easement boundary and ingress-egress descriptions.

2. Work with NRCS and the landowners to clear exceptions on title to the property and resolve vesting interests.

3. Update the title commitment, based upon the final legal description of the easement area, including copies of all instruments that created rights, interests, or encumbrances on the property, not included on the original title commitment, for the easement boundary and ingress-egress descriptions.

4. Hold funds in escrow, provide closing protection coverage, and provide payment to proper recipient and comply with Internal Revenue Service (IRS) tax reporting Form 1099.

5. Obtain signatures on warranty easement deeds provided by NRCS.

6. Obtain signatures on subordination agreements and limited lien waivers, affidavits, and any other necessary documents.

7. Record documents in the local land records office (e.g., the applicable county registrar or recorder’s office, county or town clerk’s records office).

8. Provide a final title insurance policy using American Land Title Association (ALTA) U.S. Policy 09-

28-1991 (Revised 12/3/2012)

9. Provide other services, as necessary, to finalize the easement transaction.

The contractor will provide the above-listed items to the designated NRCS contact identified below.

4.0 Description of Services

4A. Title Commitment (or Title Search and/or Update of Abstracts) The contractor must obtain the following:

1. Copies of all instruments that created rights, interests, or encumbrances on the proposed easement property

2. Preliminary title commitment, which must cover the entire easement area and the access for ingress and egress to the easement area and must commit to issuing the final title policy to the “United States of America” on the ALTA U.S. Policy Form 9-28-91 (Revised 12/3/2012).

3. Title search services and title commitment must be provided within 21 business days of receiving the request from NRCS.

4. The invoice must be submitted to the Invoice Processing Platform (IPP) for services rendered at www.ipp.gov.

The title commitment/binder must be provided by a closing agent operating with a licensed title insurance company authorized by law and by the State insurance commissioner to issue title insurance policies in the State in which the land lies. The amount of the owner’s coverage should be listed as the easement purchase price. The title search/update of abstract must be for a sufficient period of time for the title company to insure the title without objectionable exceptions and must identify all owners of record, outstanding mortgages, liens, judgments or pending suits, outstanding tax claims, easements or rights-of-way of any type, including oil, gas, and mineral interests that have been severed, any water right interests, and any other exceptions that may cloud the title of the easement to be purchased. The search must show ownership interest of the surface and subsurface rights including oil, gas, coal, sand, gravel, and other minerals associated with the property. The title commitment must include a legible copy of all underlying documents of any type, whether oil, gas, or mineral interests have been severed, mortgages, bankruptcies, and any other exceptions that may cloud the title of the easement to be purchased.

Title search services must be provided to the designated NRCS contact identified on the attachment to this statement of work within 21 business days of receiving the request from NRCS. The contractor will be provided with the name, address, and telephone number of the landowner, a copy of the current ownership documentation as provided by the landowner to NRCS, a location map of the proposed easement area, and the proposed access route for ingress and egress.

Not every title commitment (search) obtained by NRCS will result in an order for the closing services outlined in section 4B. NRCS might not ultimately purchase an easement on the properties for which it obtains a title commitment (search). NRCS may elect not to make an offer to the landowner based on eligibility review. NRCS may withdraw an offer to landowners if NRCS lacks funding, landowners are unable to provide clear title or sufficient legal access, or for other reasons as determined by NRCS. The agreement to purchase the conservation easement may also expire or the landowners may elect to cancel the agreement with NRCS.

If NRCS intends to proceed with the acquisition of an easement and orders closing services identified in section 4B, NRCS may require the contractor to execute a separate acknowledgement for individual transactions, affirming that it will comply with all the requirements set forth in Exhibit A hereto, “Closing Agent Requirements,” for that transaction. If the contractor hires a subcontractor to complete the closing services outlined in section 4B, the contractor may be required to provide NRCS an executed acknowledgement of the “Closing Agent Requirements” from the subcontractor.

4B. Closing Services After receiving the surveyed legal description from NRCS, the contractor must provide an updated preliminary title commitment, which must cover both the easement area and access for ingress and egress. The preliminary title commitment update must be provided to the designated NRCS contact identified on the attachment to this statement of work within 16 business days of receiving the request from NRCS. In the event of acreage changes, after the completion of the survey, the title commitment must be updated to provide adequate owner’s coverage.

Upon receipt of the updated preliminary title commitment, NRCS will forward the preliminary title commitment and other related documentation to the USDA Office of the General Counsel (OGC) regional attorney for a preliminary title opinion (PTO). If any outstanding issues remain, NRCS will work with OGC to determine which exceptions are acceptable and which exceptions must be cured.

The preliminary title commitment must not contain an exception related to the terms and conditions of the Warranty Easement Deed to be recorded at closing. However, if such exception is required by the title company, the proposed language for such exception must be approved prior to closing by OGC.

NRCS will provide the NRCS closing instructions and the applicable instructions from the OGC PTO identifying the requirements that must be met before the easement can be closed. The contractor must communicate with NRCS and the landowner regarding proper procedures for the landowner to clear exceptions and the contractor must obtain the execution of documents such as releases, subordinations, full or partial satisfaction for mortgages, lien waivers, affidavits of materialmen’s liens, child support, and other types of releases of encumbrances on the property.

The contractor must establish an escrow account in an FDIC-insured account for the payment of the easement purchase proceeds associated with the closing and include the escrow account information in their System for Award Management (SAM) registration. The contractor will be responsible for Form 1099 reporting on the easement payment to the IRS. NRCS will prepare documentation needed to authorize payment to the escrow account when notified of the closing date. In certain cases, as stated in the NRCS closing instructions, the contractor may be required to withhold a portion of the payment for property taxes or assessments that are not yet determined or payable in an escrow account and process payments when due.

The contractor is required to close within 30 calendar days of receipt of the Federal funds from the U.S Treasury by electronic funds transfer. The contractor will not close any transaction or record deeds or other instruments prior to receiving the NRCS closing instructions letter and OGC PTO requirements.

Prior to closing the easement, the contractor must ensure that the following occurred:

1. No new encumbrances have been recorded against the subject property since the date of the most recent title commitment/binder, no adverse change in title has occurred, and there are no intervening matters affecting title that might result in a new title exception to the policy. If any new encumbrances have been recorded against the subject property or other adverse changes in title have occurred since the date of the most recent title commitment/binder, notify the NRCS technical representative immediately and do not proceed until further instructions are received. The contractor may be required to provide a pro forma title policy or marked up title commitment, or an updated title commitment, to confirm all title requirements will be met at or prior to closing.

2. The contractor has received the electronic funds transfer of the easement payment in his or her escrow account.

3. The contractor is prepared to issue the policy of title insurance referred below.

4. All exceptions required to be removed, released, subordinated, waived, or otherwise handled as set forth in the NRCS closing instructions have been completed and the applicable clearance documents recorded and all other requirements met. Proposed subordination agreements, satisfactions, releases, partial releases, and other title curative documents to be signed at closing will be provided to NRCS for review and approval at least 3 business days prior to closing.

5. Compliance with any listed title commitment/binder requirements.

6. Review the Warranty Easement Deed according to the NRCS closing instructions and ensure the proper names and marital status are correct.

7. The contractor must provide a copy of the proposed HUD-1 settlement statement or equivalent document to NRCS for review and approval at least 3 business days prior to closing.

The contractor must schedule the execution of the Warranty Easement Deed with the landowner at a mutually agreed upon location and time. The deed execution may take place at any agreed-upon location. The contractor must obtain properly executed and acknowledged deed from the landowners conveying the conservation easement, including the associated ingress and egress to the easement area.

The contractor must ensure that the deed contains all required signatures, release of dower rights, and that all signatures are in proper form and have been acknowledged, that the acknowledgement certificates are in proper form and have been completed correctly, and that the deed contains the necessary exhibits. The contractor must also obtain NRCS signatures on the Warranty Easement Deed.

When the signed documents are returned, the contractor must record the deeds and other instruments as necessary, and ensure the following occurred:

1. The contractor must ensure that no new encumbrances have been placed on the property prior to recording the Warranty Easement Deed.

2. NRCS receives an electronic copy of the executed deed.

3. The contractor must record the Warranty Easement Deed, exhibits, and any necessary title curative documents within 5 business days of execution.

4. All taxes, homeowners’ assessments, etc. are paid to the date the Warranty Easement Deed is recorded.

5. The contractor must issue a policy of title insurance on ALTA U.S. Policy Form 9/28/91 (Revised

12/3/12), with the “United States of America” named as the insured party in the full amount of the easement compensation amount identified on the Warranty Easement Deed as of the time and date of the recording of the Warranty Easement Deed. Said policy of title insurance must be free and clear of any and all encumbrances to the title except those shown as acceptable in the NRCS closing instructions and insure the United States’ interest in the easement area and the right of ingress-egress thereto. The final policy should reflect the execution and recording information pertaining to the insured easement, such as:

“30-Year or Perpetual Easement granted by to United States of America, by Warranty Easement Deed dated and recorded in Deed Record pages in the Office of the Recorder of County,__________.”

6. Complete IRS tax reporting Form 1099 for the full easement compensation amount, as identified in the warranty easement deed, issued to the appropriate parties.

The contractor must return the following package to the designated NRCS contact identified on the attachment to this statement of work within 5 business days of receipt of recorded documents from the local land records office:

• The invoice submitted to the Invoice Processing Platform (IPP) covering the agreed-upon costs incurred for services provided at www.ipp.gov. The contractor will be paid a flat fee for services rendered, including all travel expenses, copy costs, telephone charges, and the like. The contractor must provide documentation for reimbursable expenses, such as title insurance fees and recording costs.

• Policy of title insurance (original and one copy), ALTA U.S. Policy Form 9-28-91 (Revised 12/3/2012).

• Recorder’s certified copy of the ACEP-WRE Warranty Easement Deed and a recording receipt

• Recorder’s certified copies of any curative documents, including subordination agreements

• Original and one copy of executed settlement statements

• Record of disbursement of funds to the landowner

• Completed IRS Form 1099 issued to the landowners

Upon receipt of the final documents, NRCS will request a final title opinion (FTO) from the OGC. If the FTO identifies issues that were not resolved by the contractor in accordance with the NRCS closing http://www.ipp.gov/ instructions and OGC PTO requirements, NRCS will notify the contractor of required remedies. If necessary corrections were originally identified in the NRCS closing agent requirements form or NRCS closing instructions, such corrections must be done at no additional cost to NRCS and returned to the NRCS technical representative within 11 business days of notification of such issue. Upon receiving an OGC FTO indicating that all NRCS closing instructions and OGC PTO requirements have been met, NRCS will process the contractor’s payment for closing services.

5.0 Payment

There will be two payments issued:

1. USDA will issue payment upon receipt and approval of all deliverables identified above in section 4A. (preliminary title commitment).

2. Payment for recording costs and policy premiums will occur upon receipt and NRCS approval of all deliverables identified in above section 4B.

3. Payment of the contractor’s closing fee will occur upon final review and approval by NRCS or

OGC of all deliverables identified in above section 4B, including satisfactory completion of any required remedies or corrections.

NRCS will process the contractor’s payment through the Invoice Processing Platform (IPP at www.ipp.gov) for services rendered. Government Purchase Card (GPC) should be available and may be utilized for needs below the purchase threshold.

6.0 Conflict of Interest

The contractor must not close an NRCS easement purchase for their spouse, children, partners, or business associates, and must not have a financial interest in the real estate covered by the proposed easement.

7.0 Authority

Only the NRCS contracting officers may place orders under this BPA. Any modifications or questions may be directed to the originating contracting officer identified on the signed contract.

8.0 Nondisclosure

Work performance required by this statement of work will involve access to potentially sensitive information about governmental and landowner issues. All contractor personnel must comply with the terms of AGAR 452.224-70, “Confidentiality of Information,” as well as provisions of the Privacy Act of

1974, 5 U.S.C. Section 552a. Additionally, the contractor’s employees must comply with the NRCS guidelines and requirements regarding the disclosure of personal information protected under section 1244 of the Food Security Act of 1985, as amended (16 U.S.C. Section 3844), and information protected under section 1619 of the Food, Conservation, and Energy Act of 2008 (Public Law 110-246), 7 U.S.C.

Section 8791.

9.0 Civil Rights and Program Delivery

By signing this agreement, the contractor assures the Department of Agriculture that the program or activities provided for under this agreement will be conducted in compliance with all applicable Federal civil rights laws, rules, regulations, and policies.

10.0 Wisconsin NRCS Contact for Deliverable Submission

Assistant State Conservationist for Easements Dave Gundlach 608-662-4422 x252; 608-751-5276 mobile David.gundlach@usda.gov mailto:David.gundlach@usda.gov