Contracting Officer Executed Contract 86614524D00002 Area 1P-4P.pdf

November 2 2023

Digitally signed by: CHARLES HOYLE

DN: CN = CHARLES HOYLE C = US O = U.S.

Government OU = Department of Housing and Urban Development Date: 2023.11.02 17:03:21 -04'00'

CHARLES HOYLE

CONTRACT NO: 86614524D00002

Field Service Management Area [1P/4P]

FIELD SERVICE MANAGEMENT

PERFORMANCE WORK STATEMENT

SECTION B - Supplies or Services and Prices/Costs

B.1 CONTRACT DEFINITION - INDEFINITE – QUANTITY/FIXED-UNIT-RATE

This is a hybrid (Fixed-Price and Cost Reimbursable Contract) Indefinite Delivery/Indefinite Quantity, contract as defined at Subpart 16.504 of the Federal Acquisition Regulation and in Section I, Clause 52.216-22, Indefinite Quantity, herein. Services provided by the Contractor under the contract shall be obtained as stated in HUDAR 2452.216-78, Ordering Procedures

B.2 PRICING

The estimated quantities to be performed during the task order is indicated in the table below.

The quantities are estimates only. The Government is not obligated to order or pay for estimated quantities.

PERFORMANCE PERIOD – FIXED UNIT RATE

[1P/4P] – Michigan-Ohio

Contract Line Items (CLIN) Est. Qty. Unit Unit Price Total Unit Price

Base Period – November 02, 2023 through November 01, 2024 0001: Pre-Conveyance (5.2.1.1) 1230 Each $33.93 $41,739.00 0002: Hud Property Inspections Report (HPIR) (5.2.2.1, 5.2.2.2.1.1, 5.2.2.1.2, 5.2.2.1.3)

1230 Each $250.27 $307,831.00

0003: Hud Property Inspection/Initial Services Vacant Lot (5.2.2.1; 5.2.2.1.1; 5.2.2.1.2;

5.2.2.1.3; 5.2.2.3)

20 Each $79.40 $1,588.00

0004: Initial Services (5.2.2.3) 1230 Each $750.44 $923,046.00 0005: On-Going Property Management (PM) Fee, HUD- Owned Vacant (5.2.3.2)

5669 Monthly $239.55 $1,358,037.00

0006: Inspection, Initial Services, On-Going PM for Custodial Properties (5.2.6)

4550 Monthly $237.95 $1,082,692.00

0007: On-Going PM Fee, Vacant Lot (5.2.3.2)

80 Monthly $136.92 $10,954.00

0008: Transition In (Pre-Ramp- Up Transition Activities) (C.1.13.1) (p. 110) (C.1.13.2)

1 Lot $65,000.00 $65,000.00

0009: Pass Through Expenses (Attachment 5)

Actual Cost

Lot NTE $6,000,000.00

Total Estimated Cost for Base Period $9,855,887.00

Option Period One – November 02, 2024 through November 01, 2025 0010: Pre-Conveyance (5.2.1.1) 3700 Each $33.93 $125,557.00 0011: Hud Property Inspections Report (HPIR) (5.2.2.1, 5.2.2.2.1.1, 5.2.2.1.2, 5.2.2.1.3)

3700 Each $210.97 $780,579.00

0012: Hud Property Inspection/Initial Services Vacant Lot (5.2.2.1; 5.2.2.1.1; 5.2.2.1.2;

5.2.2.1.3; 5.2.2.3)

20 Each $79.40 $1,588.00

0013: Initial Services (5.2.2.3) 3700 Each $698.04 $2,582,751.00 0014: On-Going Property Management (PM) Fee, HUD- Owned Vacant (5.2.3.2)

17099 Monthly $224.27 $3,834,805.00

0015: Inspection, Initial Services, On-Going PM for Custodial Properties (5.2.6)

5096 Monthly $232.87 $1,186,693.00

0016: On-Going PM Fee, Vacant Lot (5.2.3.2)

80 Monthly $132.55 $10,604.00

0017: Pass Through Expenses (Attachment 5)

Actual Cost

Lot NTE $6,000,000.00

Total Estimated Cost for Option Period One $14,522,577.00

Option Period Two – November 02, 2025 through November 01, 2026 0018: Pre-Conveyance (5.2.1.1) 2139 Each $33.93 $72,585.00 0019: Hud Property Inspections Report (HPIR) (5.2.2.1, 5.2.2.2.1.1, 5.2.2.1.2, 5.2.2.1.3)

2139 Each $213.83 $457,374.00

0020: Hud Property Inspection/Initial Services Vacant Lot (5.2.2.1; 5.2.2.1.1; 5.2.2.1.2;

5.2.2.1.3; 5.2.2.3)

20 Each $79.40 $1,588.00

0021: Initial Services (5.2.2.3) 2139 Each $701.85 $1,501,261.00 0022: On-Going Property Management (PM) Fee, HUD- Owned Vacant (5.2.3.2)

9838 Monthly $225.38 $2,217,311.00

0023: Inspection, Initial Services, On-Going PM for Custodial Properties (5.2.6)

5708 Monthly $233.46 $1,332,607.00

0024: On-Going PM Fee, Vacant Lot (5.2.3.2)

80 Monthly $132.87 $10,630.00

0025: Pass Through Expenses (Attachment 5)

Actual Cost

Lot NTE $6,000,000.00

Total Estimated Cost for Option Period Two $11,593,356.00

Option Period Three – November 02, 2026 through November 01, 2027 0026: Pre-Conveyance (5.2.1.1) 2008 Each $33.93 $68,130.00 0027: Hud Property Inspections Report (HPIR) (5.2.2.1, 5.2.2.2.1.1, 5.2.2.1.2, 5.2.2.1.3)

2008 Each $213.83 $429,362.00

0028: Hud Property Inspection/Initial Services Vacant Lot (5.2.2.1; 5.2.2.1.1; 5.2.2.1.2;

5.2.2.1.3; 5.2.2.3)

20 Each $79.40 $1,588.00

0029: Initial Services (5.2.2.3) 2008 Each $701.85 $1,409,318.00 0030: On-Going Property Management (PM) Fee, HUD- Owned Vacant (5.2.3.2)

9274 Monthly $225.38 $2,090,195.00

0031: Inspection, Initial Services, On-Going PM for Custodial Properties (5.2.6)

6392 Monthly $233.46 $1,492,296.00

0032: On-Going PM Fee, Vacant Lot (5.2.3.2)

80 Monthly $132.87 $10,630.00

0033: Pass Through Expenses (Attachment 5)

Actual Cost

Lot NTE $6,000,000.00

Total Estimated Cost for Option Period Three $11,501,529.00

Option Period Four – November 02, 2027 through November 01, 2028 0034: Pre-Conveyance (5.2.1.1) 2008 Each $33.93 $68,140.00 0035: Hud Property Inspections Report (HPIR) (5.2.2.1, 5.2.2.2.1.1, 5.2.2.1.2, 5.2.2.1.3)

2008 Each $219.95 $441,661.00

0036: Hud Property Inspection/Initial Services Vacant Lot (5.2.2.1; 5.2.2.1.1; 5.2.2.1.2;

5.2.2.1.3; 5.2.2.3)

20 Each $79.40 $1,588.00

0037: Initial Services(5.2.2.3) 2008 Each $710.02 $1,425,717.00 0038: On-Going Property Management (PM) Fee, HUD- Owned Vacant (5.2.3.2)

9274 Monthly $227.76 $2,112,286.00

0039: Inspection, Initial Services, On-Going PM for Custodial Properties (5.2.6)

7159 Monthly $234.57 $1,679,252.00

0040: On-Going PM Fee, Vacant Lot (5.2.3.2)

80 Monthly $133.55 $10,684.00

0041: Pass Through Expenses (Attachment 5)

Actual Cost

Lot NTE $6,000,000.00

Total Estimated Cost for Option Period Four $11,739,328.00

Total Estimated Area Value $59,212,677.00

Initial Services (Pre-Conveyance Inspection, HUD Property Inspection; CLINs 0001-0004 and corresponding option CLINs) – The fee is based on initial date of assignment and paid out one time in the month the services were completed. CLIN 0004, the first 10 cubic yards (CY) is at Contractor Expense (10 Cubic Yards include debris, refuse and personal property or any combination of the three). Verifiable debris refuse or personal property (not to include grass cutting, tree/bush trimming and foliage) in excess of 10 CY and discovered at initial inspections shall be an allowable Pass-through Expense and submitted in accordance with the HUD’s Financial Control Manual.

Note: Daily damages are assessed to the contractor when the contractor places the property in 1C (triggers CLIN 0004 payment) but the property is found to be in “Not Ready to Show Condition” as determined by the Asset Manager and verified by the COR. See FAR Clause 52.211-11 Liquidated Damages and calculation below.

Example:

Assuming CLIN 0004 = $800.00 unit rate $800/30 calendar days = $26.66 per calendar day

Routine (On-going) Property Management (PM) Fees (CLINs 0005,0006, or 0007 and corresponding option CLINs) – For the purpose of CLINs 0005, 0006, or 0007, one month is the first day of the month through the last day of the month (e.g., September 1st through September 30th is one month). For properties not held in the contractor’s inventory for the entire month, the PM Fee will be prorated based on the number of calendar days the property was in the contractor’s inventory for the month. The Contractor will be paid CLINs 0005, 0006, or 0007 based on the property type or acquisition status.

Routine (On-going) Property Management (PM) Fees (CLIN 0005 and corresponding option CLINs) - one month is the first day of the month through the last day of the month (e.g., September 1st through September 30th is one month). For properties not held in the contractor’s inventory for the entire month, the PM Fee will be prorated based on the number of calendar days the property was in the contractor’s inventory for the month. The Contractor will be paid a CLIN 0005 fee on all HUD Vacant (HV) fee status types. This fee encompasses routine inspections. The Contractor shall inspect the property every two weeks, where intervals between inspections shall be at least 10 days and not more than 14 days.

Custodial Properties (CS) (On-going) Property Management (PM Fees): (CLIN 0006 and corresponding option CLINs) - one month is the first day of the month through the last day of the month (e.g., September 1st through September 30th is one month). For properties not held in the contractor’s inventory for the entire month, the PM Fee will be prorated based on the number of calendar days the property was in the contractor’s inventory for the month. The Contractor will be paid a CLIN 0006 fee on all CS fee status types. This fee encompasses routine inspections. The Contractor shall inspect the property every two weeks, where intervals between inspections shall be at least 10 days and not more than 14 days.

Vacant Lot (VL) Routine (On-going) Property Management (PM) Fees (CLIN 0007 and corresponding option CLINs) - one month is the first day of the month through the last day of the month (e.g., September 1st through September 30th is one month). For properties not held in the contractor’s inventory for the entire month, the PM Fee will be prorated based on the number of calendar days the property was in the contractor’s inventory for the month. The Contractor will be paid a CLIN 0007 fee on all VL fee status types. This fee encompasses routine inspections. The Contractor shall inspect the property every two weeks, where intervals between inspections shall be at least 10 days and not more than 14 days.

Missed/ Late Routine Inspections: The cost for not performing an inspection timely (within 10-14 calendar days) in accordance with CLIN 0005, CLIN 0006, or CLIN 0007 shall be $50.00 per day per occurrence at each property. HUD is limiting the total amount of liquidated damages per occurrence at $500. An occurrence is defined as each routine inspection. See FAR Clause 52.211-11 Liquidated Damages. PLEASE NOTE: Regarding CLINs 0005, 0006 and 0007, the cost for the routine inspections shall be included in the monthly PM fee.

Cost Reimbursement CLINs: CLIN 0009 (Pass Through Expenses)– Allowable pass-through expenses are listed in Attachment 5. The contractor will be reimbursed for the actual cost of the service or item. There will be no fee/profit or overhead included. All allowable pass-through expenses shall be submitted for reimbursement within sixty (60) calendar days from the incurrence of cost. All allowable pass-through expenses must be submitted in accordance with the HUD Financial Control Manual.

Contractors Limitation on Cost for Health and Safety Repairs: The amount and type of health and safety repairs necessary under this contract will vary greatly on a per property basis.

While the COR may approve some extreme situations for reconveyance, the presence of health and safety concerns alone is often not sufficient grounds for reconveyance as defined in section

2.1. HUD’s intent is not for the contractors to assume an unlimited amount of risk covering Health and Safety concerns, and to assure that Health and Safety concerns are being remediated promptly in all instances. Therefore, HUD is limiting the contractor’s cost exposure for performing such repairs in accordance with the PWS, absent negligence on the part of the contractor, as follows:

The Health and Safety cost limitation per property will be calculated as the total cost of performance of the initial services (CLINs 0001 – 0004 in the base) + 1 month of the On-Going Property Management Fee (CLIN 0005, 0006 or 0007 in the base period). The contractor may submit costs that exceed the calculated Health and Safety cost limitation as a valid pass-through expense upon approval in accordance with the HUD Financial Manual.

Example:

Assuming the following CLIN Unit Rates CLIN 0001 = $0; No Pre-Conveyance Inspection Performed

CLIN 0002 = $250.00

CLIN 0003 = $0; Property not a vacant lot

CLIN 0004 = $800.00

CLIN 0005 = $200.00

$250 + $800 + $200 = $1250 calculated Health and Safety cost limitation per property.

B.3 PAYMENT AT CONTRACT EXPIRATION

Payment at contract expiration will be in accordance with the terms and conditions specified at Section G.5.

Section C - Performance Work Statement (PWS)

Field Service Management

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 Period

1.13.1 – Pre-Ramp-Up Transition Activities

1.13.2 Ramp Up Transition Tasks

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 GENERAL REQUIREMENTS

5.2 PROPERTY MANAGEMENT

5.2.1 Pre-Conveyance

5.2.1.1 Inspections

5.2.1.1.1 Pre-Conveyance Inspection

5.2.1.1.2 Overallowable Inspection

5.2.1.1.3 Surchargeable Damage Inspection

5.2.1.1.4 Pre-Assignment Inspection

5.2.1.1.5 Occupied Conveyance Inspection

5.2.2 Acquisition (Post-Conveyance)

5.2.2.1 HUD Property Inspection

5.2.2.1.1 Part I of the HPIR: Conveyance Condition

5.2.2.1.2 Part II of the HPIR

5.2.2.1.3 Part III of the HPIR

5.2.2.2 Initial Securing

5.2.2.3 Initial Clean-out Services

5.2.2.3.1 Health and Safety Hazards and Emergency Repairs

5.2.3 PROPERTY MAINTENANCE

5.2.3.1 Ready to Show Condition

5.2.3.2 Routine Inspections

5.2.4 ENVIRONMENTAL COMPLIANCE

5.2.5 TERMITES AND WOOD DESTROYING ORGANISMS

5.2.6 CUSTODIAL PROPERTIES

5.2.7 COSMETIC ENHANCEMENTS AND/OR REPAIRS

5.2.8 Purchaser Post-Closing Complaints

5.3 REQUIRED REPORTS

5.4 Quality Assurance

5.4.1 Quality Assurance Reviews

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Requirement Summary (PRS)

SECTION D - Packaging and Marking

D.1 PAYMENT OF POSTAGE AND SHIPPING

D.2 AS 501 ENVIRONMENTALLY SAFE PACKAGING. (NOV 1997)

D.3 MARKING OF DELIVERABLES

Philadelphia HOC Records

SECTION E - Inspection and Acceptance

SECTION F – Deliveries and Performance

SECTION G - Contract Administration Data

SECTION H - Special Contract Requirements

SECTION I - Contract Clauses

SECTION J - List of Attachments

Vision Statement

The vision of this requirement is to obtain contractor support to assist HUD with property management services. By obtaining these services HUD will better ensure that:

FHA insured properties are maintained in a manner that preserves communities;

HUD has real time access to all property related information;

Properties are secured and safe from hazardous conditions;

Property values are preserved;

Properties are maintained in a manner that reflects a high standard of care;

There is a high level of customer satisfaction with HUD’s property disposition program.

1 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD), Single Family Housing, Real-Estate Owned (REO) Division is seeking contractor support to provide property management services. Services shall include property maintenance and preservation services, property inspection, securing property, and performing cosmetic enhancements/repairs.

1.2 Background

The Federal Housing Administration (FHA), an organizational unit within HUD, administers the single-family mortgage insurance program. FHA insures approved lenders against the risk of loss on mortgages obtained with FHA financing. In the event of a default on an FHA insured loan, the lender acquires title to the property by foreclosure, a deed-in-lieu of foreclosure, or other acquisition method, files a claim for insurance benefits and conveys the property to HUD. As a result of acquisitions through the mortgage insurance program and other programs, HUD has a need to manage and sell a sizable inventory of single-family homes in a manner that promotes home ownership, preserves communities, and maximizes return to the FHA insurance funds.

HUD administers the REO disposition program through four (4) Homeownership Centers (HOCs) located in: Philadelphia, Pennsylvania; Atlanta, Georgia; Denver, Colorado; and Santa Ana, California. Each HOC is responsible for a designated geographic area. Within each HOC there will also be designated contract areas for Field Service Managers.

Since 1999, HUD has been outsourcing the disposition of its REO inventory to Management and Marketing (M&M) Contractors. To ensure the continued success of its disposition program and to further capitalize on the disposition expertise of the private sector, in 2007, HUD conducted extensive market research on industry best practices surrounding the REO asset disposition process to structure the third generation of the contracting program, herein after referred to as M&M III. This acquisition, like the previous Management and Marketing 3.10, is part of the third generation of M&M services. Based on a history of market research results from M&M III, HUD has continued to develop a disposition structure for the management and marketing of REO inventory that will streamline its operations, capitalize on the expertise of its potential Contractors, and provide flexibility to meet changing market conditions in the REO industry.

Key elements of HUD’s disposition structure include:

Centralization of mortgagee compliance functions under a Mortgagee Compliance Manager

(MCM).

Separation of marketing functions (Asset Managers (AM)) from property management functions (Field Service Managers (FSM)).

OVERVIEW OF ASSET DISPOSITION CONTRACT STRUCTURE

This section describes the three (3) entities under the M&M III disposition structure and the roles and responsibilities of each Contractor within the structure.

The entities under the disposition strategy include:

Field Service Manager (FSM)

Field Service Manager (FSM)- Section 1.4 includes a detailed summary of the description of services of the FSM Contractor.

Mortgagee Compliance Manager (MCM)

The Mortgagee Compliance Manager shall perform a variety of pre- and post- property conveyance services to ensure that HUD's interests are protected. These services will include reviewing property inspections to ensure the property is in conveyance condition; resolving conveyance exceptions; and providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities.

Asset Managers (AM)

The Asset Managers are responsible for the marketing and sale of REO properties. Asset Managers market HUD-owned properties within their selected geographical area.

OVERVIEW OF THE ASSET DISPOSITION PROCESS (ADP)

M&M III consists of the following major processes: (1) Pre-Conveyance Activity; (2) Conveyance Activity; (3) Claim Review Activity; (4) Management Activity; (5) Marketing Activity; (6) Closing Activity; and (7) Oversight Monitoring.

ASSIGNMENT OF ASSETS

Property assignments will be made via HUD’s Business Service Provider (BSP) software platform, currently P260 or its successor systems, beginning at the start of the Ramp-up phase of the transition period (See Section C.1.13, Ramp-up). During this phase, HUD will begin to assign new acquisitions and transfer unsold inventory, held off market and custodial properties to the Contractor. Following the transition period, HUD will continue to assign assets via P260 on an ongoing basis. Property assignments may be made multiple times per day, or after business hours, so contractors are reminded to continuously monitor their active inventory.

Asset Assignments and Performance:

Through the life of the contract, the Contracting Officer Representative (COR) will monitor contractor performance based on HUD’s Quality Assurance (QA) procedures. The Government will issue a contractor performance scorecard, and/or a summary of periodic HUD qualitative inspections and reviews which will assess the contractor’s adherence to the standards detailed in the Performance Requirements Summary (PRS). The scorecard assessment period and liquidated damages will begin on the 121st calendar day after the contract period of performance start date (i.e. contract award date unless otherwise extended) and last through the entire time period the Contractor performs the duties as listed under this contract. Contractors who are performing at a satisfactory level as indicated on the QPR and because of HUD inspections and reviews will likely continue to receive new property acquisitions within their awarded geographical area. Contractors who are performing below a satisfactory level as indicated by the QPR and because of HUD Inspections and reviews may find their assignments adversely impacted. Adverse actions may include but are not limited to the following:

1. Realignment: The Government may unilaterally realign the existing geographic area in accordance with the clause H.6, Option to Increase/Decrease the Geographic Service Area.

2. Non-Assignment: The Government may unilaterally stop assigning assets to a Contractor due to unsatisfactory performance. Contractors are not guaranteed any new assignments if the Government has stopped assigning assets. The Government will continue to review and monitor the Contractors performance to determine if the Contractor meets the performance requirement in a timely manner.

3. Non-exercise of Option Periods: A satisfactory contract year-end performance rating is required for exercise of an option. Continued satisfactory performance is also required after an option is exercised in order for assignments to continue for the entire period.

Geographic Areas Administration and Oversight

There will be a Contracting Officer (CO) and a Contracting Officer Representative (COR) for each of the entities listed under Section 1.2 of this PWS. The contracts will be administered from the Office of the Chief Procurement Officer, Atlanta Field office. The respective program office of Philadelphia will provide the Contracting Officer Representatives (CORs) for contract oversight.

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:

Written Approval

In general, the appropriate HUD official will provide electronic approval of Contractors requests through the applicable HUD information system. Where approvals are not provided through the system, the COR will provide approval in writing unless otherwise stated in this PWS. Oral communications do not constitute approval, consent or authorization and if the Contractor proceeds without written or electronic approval, it accepts the risk of proceeding.

Effect of Approval

Notwithstanding the rights of approval and acceptance reserved to HUD, the Contractor shall be solely and primarily responsible for the performance of every requirement in this PWS. Neither the reservation nor the exercise of HUD’s approval or acceptance rights will be deemed to relieve the Contractor from its responsibility or to create any liability by HUD to the Contractor or third parties, with respect to the performance of the PWS requirements.

Compliance with Legislative, Regulatory and Policy Requirements

The Contractor shall comply with all Federal, state or local laws and all regulations pertaining to the activities described in this PWS. When local laws and regulations conflict with HUD requirements, the Contractor shall notify the COR and the Contracting Officer within two business days of identification of the issue.

Conflicts of Interest

General Rule

The Contractor shall not engage in, or permit, any conflict of interest. In addition to any other conflicts of interest prohibited under applicable law, each of the following situations will constitute a conflict of interest.

Pass-Through

The Contractor cannot purchase or obtain services from an Affiliated Entity of the Contractor for which HUD makes pass-through reimbursement under this PWS.

Kickbacks, Rebates, Referral Fees

The Contractor, a Management Official of the Contractor, an Immediate Family member of a Management Official of the Contractor, or an Affiliated Entity of the Contractor may not directly or indirectly receive any form of payment, income, revenue, compensation, or anything else of value from any person or entity, other than HUD or the Contractor, for performance of the Contractors responsibilities under this PWS.

Excluded Purchasers

The Contractor, Subcontractor, a Management Official, their immediate family members, or any affiliated Entity under contract with HUD who has involvement in the management, marketing, or oversight of HUD-Owned Properties under HUD’s M & M III contracts, are prohibited from purchasing or leasing a HUD-Owned Property.

Prohibition on Pre-Conveyance Preservation and Protection Work The Field Service Manager (FSM), its affiliated companies or its agents/ subcontractors are prohibited from performing pre-conveyance work on FHA Single Family Insured properties within the area(s)they are performing FSM services. Activities pertaining to Claims Without Conveyance of Title (CWCOT) delineated in 12 U.S.C. §1710(a)(1)(C), 24 CFR §203.371 and HUD Handbook 4000.1 are deemed to not be a conflict of interest (COI) for purposes of this FSM contract.

Prohibited pre-conveyance activities include but are not limited to originating or servicing the FHA note and /or mortgage associated with the REO property, serving as an AM, MCM, BSP/P260 contractor, appraiser, inspector, valuation services, P&P services for the mortgagee or its designee etc., in the M&M Area under the cognizant HOC. See HUDAR 2452.209-70 Potential Organization Conflict of Interest.

The Field Service Manager must certify on an annual basis that the prime contractor, subcontractors, or any affiliated entities have not and/or will not perform pre-conveyance work on FHA Single Family Insured properties within the cognizant HOC during the term of the contract. The initial certification shall be submitted within ten (10) calendar days from contract award. Any option year certifications shall be submitted ninety (90) calendar days before exercising the option period.

NOTICES

The Contractor shall immediately notify the COR of any actual or suspected conflict the Contractor becomes aware of by any Entity under contract with HUD.

ELECTRONIC DISCLOSURES, RECORDS AND SIGNATURES

With respect to Federal law, the Contractor shall comply with the Electronic Signatures in Global and National Commerce Act, 15 USC 7001-7006, (ESIGN), including the requirements to, prior to electronically delivering information to a consumer, provide the consumer with certain disclosures and obtain the consumers consent to electronically receive information. The Contractor shall provide consumers with the option of requesting a paper copy of an electronic record and will not charge any fee for such copy. The Contractor shall not use 15 USC 7001(c)(3) to evade compliance with 15 USC 7001(c)(1)(C)(ii). With respect to State law, the Contractor shall comply with ESIGN or, if a State has enacted a statute, regulation, or other rule of law preempting ESIGN pursuant to 15 USC 7002, the State statute, regulation, or other rule of law governing the use or acceptance of electronic records or signatures. This section does not constitute consent by HUD to the use of electronic records as a substitute for paper records or the use of electronic signatures as a substitute for ink signatures. HUD reserves the right to allow electronic disclosures, records and signatures upon notice from the COR.

Cost Estimating Tool

The Contractor shall use a comprehensive cost estimation and valuation tool provided by HUD. The tool is designed to provide replacement or improvement costs for property preservation and repair, provide damage estimates, and validate bids submitted for repairs. The Contractor shall use the cost estimating tool to validate the reasonableness of bids submitted for repairs and improvement costs.

Systems Security Administrator

The contractor shall provide a Systems Security Administrator.

The Contractor shall designate a Systems Security Administrator (SSA) no later than ten (10) calendar days after the effective date of the contract and provide this information to the COR within this timeframe. SSA must complete the mandatory HUD specialized on-line security training course designed for this position. The SSA shall use forms provided by HUD to initiate requests for user access to HUD IT systems and to request access modifications and deletions. The Contractor shall certify, not later than twenty (20) calendar days from the effective date of the contract that all staff has received instruction in system security issues, are familiar with the contents of the current version of HUD Handbook 4000.1, Information Security Program. Additionally, this certification must be made within seven (7) calendar days from the start date for any new hires.

The SSA will also be subject to HUD’s IT General Controls and Monitoring of Contractors security policy. The SSA shall conduct annual security-self assessments and content will be subject to verification by facility inspections to ensure compliance with all HUD’s IT security policies.

1.4 Description of Services

HUD seeks Field Service Manager Contractors who shall provide property maintenance and preservation services for HUD REO properties. Contractors will use this information to propose technical solutions that will provide a detailed description of the procedures, documents, or reports that will be developed to meet the services requested. These services shall include:

Property Management; Required Reporting; Quality Assurance

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 Contractor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for a base period of 12 months and 4- 12-month options period, if exercised and the Option to Extend Services under FAR Clause 52.217-8, 1-6 Months, if exercised.

Option Period 1: November 02, 2024 – November 01, 2025 (if exercised) Option Period 2: November 02, 2025 – November 01, 2026 (if exercised) Option Period 3: November 02, 2026 – November 01, 2027 (if exercised) Option Period 4: November 02, 2027 – November 01, 2028 (if exercised)

1.7 Place of Performance

The place of performance for the resulting FSM contract is at the Contractor Facility, rather than at a Government facility (though performance of some services will be at “HUD-Owned properties” as that term is used in the contract). The Contractor shall maintain a staffed and equipped office within the existing boundaries of the awarded HOC jurisdiction for the specific contract. The Contractor shall maintain the physical property files in that Office. Any changes or exceptions in the location of performance must be approved in advance by the Contracting Officer and may not impact customer service.

1.8 Hours of Operation

The Contractor shall maintain regular office hours (between 8:00 am-4:30 pm) consistent with the awarded HOC jurisdiction time zone, 8 hours a day during the standard work week, and include on-call emergency response.

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 reasons outlined in “Contractor Personnel” (see 4.5). When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

After Business Hours

The Contractor shall be available to respond within thirty (30) minutes after receipt of notification via phone, text or email from HUD and local authorities to resolve property related emergencies after regular business hours. The Contractor shall maintain and monitor a phone number and an e-mail address twenty-four (24) hours a day, seven (7) calendar days per week, 365 calendar days per year.

1.9 Special Qualifications

As indicated by subsection H.5, there are several state and local licensing and certifications that the contractor may need to maintain.

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 (10) business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five (5) business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officer Representative (COR) and other Government personnel, as appropriate shall meet at a minimum monthly 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

The Contractor is responsible for all travel related expenses under this contract.

1.13 Transition-In Period

1.13.1 – Pre-Ramp-Up Transition Activities To ensure a smooth transfer of property and preservation responsibilities from the existing M&M contractor(s), herein after called "Former Contractors", to the Contractor, HUD has provided for a Transition Period. The Transition Period will run from the effective date of the Contract and will not exceed the timeframes established herein or as set forth by the Contracting Officer. During the Transition Period, the Contractor shall establish or adapt its physical infrastructure, retain qualified staff and develop or obtain necessary hardware, software, Internet applications and information technology.

The Contractor shall also: attend HUD provided training, provide training to its workforce to enable them to provide required services under this PWS; obtain all required licenses, permits, bonds and legal permissions required to transact business within the geographical area; and develop and implement quality assurance programs.

The Transition Period shall have two (2) phases, the Start-Up and the Ramp-Up. The activities and timeline for each phase are described below.

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.

Start Up

The Start-up phase will run from the effective date of the contract through the 60th calendar day unless otherwise extended by the Contracting Officer. During the Start-up phase, the FSM Contractor shall:

establish or adapt its physical infrastructure; retain qualified staff and subcontract support; develop or obtain necessary hardware, software, Internet applications and information technology; and submit all required security clearance forms and applications required to gain access to HUD systems.

During this period the Contractor shall complete preparation activities, including but not limited to:

1. Attending post award conferences and meetings with HUD staff, attending specialized training provided by HUD; submitting Quality Control, Contingency, and Property Management Plans.

2. Establishing its physical infrastructure; ensuring that a qualified and trained workforce of employees or Subcontractors is in place; obtaining all licenses, permits, bonds and qualifications, required to transact business in the geographic area; and implementing the information technology and support necessary to fully perform the requirements contained in this PWS.

Post Award 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 Contractor and key personnel shall attend the post award conference

The Contractor shall also be ready to assume contract responsibilities on the 61st day following the effective date of the contract, or the first day following the end of the startup period if it is extended beyond the 60th day.

Quality Control, Contingency, and Property Management Plans (collectively, the “Plans”).

Within thirty (30) business days after contract award, the Contractor shall submit a Quality Control Plan (QCP), a Contingency Plan (CP), and a Property Management Plan (PMP). The COR will review and acknowledge receipt of the plans within thirty (30) business days of receipt. Upon receipt of comments from the COR, the Contractor shall update the plans and submit to the COR a revised CP, QCP and PMP incorporating all comments within seven (7 )business days. The CP, QCP and PMP will be revised as circumstances dictate, to reflect necessary changes throughout the term of the contract. Prior to implementing changes, the COR must receive all changes to the plans in writing for review, comment, and approval. The Contractor shall maintain the CP and PMP throughout the contract term.

The Contractor shall develop, maintain, and implement, a Contingency Plan that addresses the gravest, as well as the most likely, problems that might arise and the Contractors planned response to the adverse events. At a minimum, the plan will cover: Subcontractor default; data breach and/or cybersecurity strikes; hacking and major system outages, recovery from serious natural disaster as it affects the Contractors operation; employee strike; and civil disorder. Following contract award, the Contractor shall provide to the COR and Contracting Officer hardcopy and electronic copies of the final Contingency Plan incorporating all COR comments and changes. If an event covered by the Contractors Contingency Plan occurs, the Contractor shall promptly initiate, within any applicable time periods in the plan and this PWS, and diligently conduct, the responses outlined in the plan. Changes to the Contingency Plan must be accepted in writing by the COR in advance of implementation.

Office Space - No later than the tenth (10th) business day following the effective date of the Contract, the Contractor shall secure any, and all office space required under Section 4.1 Facilities and notify the COR via electronic transmission of the address.

Systems Security - No later than the tenth (10th) business day after the effective date of the Contract, the Contractors System Security Administrator (SSA), shall obtain the necessary forms from the designated HUD Security Administrator for each staff person who will need access to HUD systems. The SSA shall arrange for completion of the forms and shall transmit the completed forms to HUD’s Security Administrator no later than the fourteenth (14th) calendar day after the contract award date. Contractor shall ensure Contractor employees complete HUD PIV process for security clearances and annual security training. The performance of this contract requires contractor employees to have access to a HUD system or systems. All such employees who do not already possess a current PIV Card acceptable to HUD shall be required to provide personal background information, undergo a background investigation (NACI or other OPM-required or approved investigation), including an FBI National Criminal History Fingerprint Check, and obtain a PIV Card prior to being permitted access to any such system in performance of this contract. HUD may accept a PIV Card issued by another Federal Government agency but shall not be required to do so. No contractor employee will be permitted access to any HUD system without a PIV Card.

Performance Bond and Payment Bond - The Contractor shall deliver to the CO a performance bond and a payment bond or acceptable alternative in an amount and timeframe as required.

Phone Service - No later than the fifteenth (15th) business day following the effective date of the contract, the Contractor shall contract for phone service and notify the COR via electronic transmission of the phone number(s).

Transition Coordination - The Contractor shall meet with the COR and the Former Contractor and cooperate in good faith to develop a detailed protocol for transfer of ongoing contract activities in order to ensure a continuity of service to external customers.

HUD Responsibilities

Review of Contractors Plans - No later than thirty (30) calendar days after receipt of the Contractors Quality Control, Property Maintenance and Contingency Plans, the COR will review these plans and provide comments to the Contractor for incorporation in each Plan. . The Contractor shall incorporate HUD comments into the Plans and issue revised Plans within seven (7) business days after receipt of the CORs comments. The Contractor shall satisfy the requirements of HUD for acceptance of each Plan.

These requirements include consistency with the Plans presented as part of the Contractors proposal and HUD’s regulatory and statutory authorities.

Training - HUD COR will notify the Contractor of the time and location of HUD provided training.

Policy and Process - This training will include an overview of HUD and the policies and procedures related to property management, including but not limited to: processing homeowner’s association dues payment; lead-based paint requirements; interaction with other HUD Contractors; quality assurance and compliance monitoring activities; and Contractor invoicing procedures.

Systems - HUD will provide training to Contractor staff on the use of HUD systems identified in this

PWS.

1.13.2 Ramp Up Transition Tasks

Transition Schedule:

Ramp Up

The Ramp Up Phase of the Transition Period shall begin on the sixty-first (61st) calendar day after the effective date of the contract, unless otherwise extended by the Contracting Officer and will end on the expiration date of the final option year of the contract with the Former Contractors, or such later date as determined by the CO. During the Ramp Up Phase, the Contractor shall assume responsibility for specific tasks in the order described below.

61st Day - 61st Day - On the sixty-first (61st) calendar day after the effective date of the contract, the Contractor shall begin performance of property and preservation services related to new assignments.

Custodial Properties - The Former Contractor shall transfer case files for each custodial property under management to the Contractor. These properties will be transferred randomly, yet evenly without regard to property characteristics. The case files will contain all available documents, including the Former Contractors inspections and copies of work orders, if any. The files will arrive in standard record boxes via overnight delivery. Each box will include a file inventory pulled from P260, listing the FHA Case Number, property address and date the property was assigned to the Former Contractor. The Contractor shall perform a property inspection of each property no later than five (5) business days following receipt of the shipment and, no later than twenty-four (24) hours from inspection or notification of hazard, shall immediately secure the property and make required health and safety repairs or any emergency repairs.

Repair Expenses due to Former Contractors Non-Performance - The Contractor shall track any emergency repairs or health and safety hazards in order for HUD to request reimbursement amounts from Former Contractors.

91st Day -91st Day - On the ninety-first (91st) calendar day after the effective date of the contract, the Contractor shall begin performance of property and preservation services related to assigned Held Off Market Properties and assigned unsold inventory.

Held Off Market (HOM) Properties - The Former Contractor shall ensure the electronic files for each property currently in a held off market status are up to date. The electronic case files will contain all available documents, including the Former Contractor inspections and copies of work orders, if any. If the property is occupied, the file will contain lease information and payment history. The Contractor shall perform a property inspection of each property no later than ten (10) business days and, no later than twenty-four (24) hours from inspection or notification of a hazard shall immediately secure the property and make required health and safety repairs. Lastly, the contractor shall work to resolve the HOM issue in a timely after the transition has been completed.

1.14 Transition-Out

The Government may unilaterally exercise the Transition -Out optional task during any performance period by a written notice to the contractor no later than 15 days prior to the effective date of the Transition-Out period. The transition-out option shall cover a period of 90 days or less prior to contract expiration for the performance period. The contractor will perform contract services specified in the PWS and at the prices listed in Section B for the performance period prices in effect when the Transition-Out option is exercised.

Ramp Down

The contractor shall start a ramp down of contract services on or before the 61st day after the transition out option is exercised in accordance with the transition out notification issued by the Government.

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 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 Contractor shall provide an orderly transition of work acceptance and accomplishment.

2 Definitions and Acronyms

2.1 Definitions

Adverse Occupants - Occupants who are in possession of a HUD owned or Custodial property without the legal right to be there.

Administrative Contracting Officer (ACO) - After contract award, the HUD official authorized to execute and administer contractual documents based on this contract and who is also responsible for the day-to-day administration of this contract and delegating contract administration responsibilities to contracting staff and Contracting Officer Representative .

Acquisition - The process through which a real property or mortgage note secured by a real property is conveyed to HUD. Properties and mortgage notes are conveyed (acquired) from a number of sources.

Acquisition Types

The vast majority of acquired properties are conveyed to HUD by a Servicing Mortgagee following foreclosure of an FHA insured mortgage and the filing of a claim for insurance benefits. However, HUD also acquires properties from a variety of other sources. The type of acquisition may impact the method by which the Contractor is informed of the new assignment and the scope of services required. A listing of possible acquisition sources are as follows:

Conveyance Foreclosures - properties conveyed to HUD by a Mortgagee following foreclosure, or deed-in-lieu of foreclosure of an FHA insured mortgage, and the filing of a claim for insurance benefits.

Custodial Properties - properties secured by a Secretary-Held mortgage or HECM, which are in default and upon inspection by HUD’s servicing Contractor determined to be vacant or abandoned. Title is not yet in HUD’s name. Upon receipt of notification from the COR, the Contractor shall take possession to protect and preserve the property until title is acquired. Custodial properties are not marketable until foreclosure is completed, and title is vested in the Secretary of HUD. These properties will be assigned by the COR. Mortgagee compliance and marketing and sales tasks are not required for these properties.

There are limited property management tasks associated with these properties.

Foreclosed Secretary Held Mortgages (SHMs) - properties acquired as the result of the foreclosure of a mortgage serviced by HUD including assigned and purchase money mortgages. These properties will be assigned by the COR. Mortgagee compliance tasks are not required for these properties.

Home Equity Conversion Mortgages (HECM) - a property acquired as the result of foreclosure of a reverse mortgage insured by FHA. These properties will be assigned by the COR and will not be in

SFIS.

Legal Settlement - properties that are not FHA-insured but were acquired as a result of a lawsuit or for other reasons such as to accommodate another Federal agency. These properties will be assigned by the

COR.

Repurchases/Buy Backs properties repurchased by HUD to resolve a post-sale claim by the purchaser of a HUD-Owned Property. The HUD COR must approve all repurchase requests.

184s properties on Indian or tribal lands acquired as a result of foreclosure of a loan guaranteed by HUD’s…