Relocation and Move Management Solicitation.doc

Solicitation # DJA09S000035 Solicitation # DJA09S000035

TABLE OF CONTENTS

Page

SECTION B – PRICE/COST SCHEDULE

Base Period……………………………………………………………………………………………...3 Option Period 1………………………………………………………………………………………….4 Option Period 2……………………………………………………………………………….…………5 Option Period 3………………………………………………………………………………………….6 Option Period 4………………………………………………………………………………………….7

SECTION C – STATEMENT OF WORK

1.0 Background……………………………………………………………………………….…………8

2.0 Objective/Scope……………………………………………………………………………………..8

3.0 Purpose……………………………………………………………………………………

4.0 Tasks and Procedures…………………………………………………………………….…………9

Required Pricing Option…………………………………………………………..…………………….10

4.0.2 Special Property Transactions………………………………………………………

4.0.3 Inspection and Inspection Criteria……………………………………………………………12 Inspection Process………………………………………………………………….…………12 Inspection Repairs…………………………………………………………………………….13 Appraisals……………………………………………………………………………………..14 Appraisals Standards………………………………………………………………………….14 Contact with Employee, Counsel on Appraisal process and Provide Appraisal

List………………………………………………………………………………………….14 Title Search, Broker Market Analysis, Inspections………………………………… Appraisal Selection and Ordering……………………………………………………………..14 Appraisal Reports and Review Process……………………………………………………….15 Forecasting………………………………………………………………………………… Appraised Value Offer…………………………………………………………………… …..16 Appraised Value Sales………………………………………………………………………...17 Disputes under Appraised Value Sales………………………………………………………..18 Reconsideration of Appraisals………………………………………………………………...19 Amended Valve Sales……………………………………………………………… Amend-from-Zero Sales…………………………………………………………… Mortgage Pay-Off……………………………………………………………………………..22 Vacating Date…………………………………………………………………………………23 Equity Payment……………………………………………………………………………….23 Negative Equity/Equity Deficit……………………………………………………………….24 Short Sales…………………………………………………………………………………….24 Equity Advance……………………………………………………………………………….24 Disputes under Equity Advance………………………………………………………………25 Ineligible Properties for Home Sales Service………………………………………………...27 Other exclusions and Restrictions…………………………………………………………….28

4.1 HOME MARKETING ASSISTANCE…………………………………………

4.1.2 Exclusion Clause…………………………………………………………………………….29

4.2 HOME SALE SERVICES………………………………………………………

4.2.1 Management Reports…………………………………………………………………………29

4.2.2 Data Communications Capabilities…………………………………………………………..29

4.2.3 Correspondence…………………………………………………………….………………...30

4.3 MOVEMENT MANAGEMENT SERVICES…………………………………………………..30

4.3.1.1 Carrier Selection…………………………………………………………………

4.3.1.2 Shipment Booking…………………………………………………………

4.3.1.3 Storage in transit arranging/monitoring…………………………………………………….31

4.3.1.4 SIT in Excess of 180 Days…………………………………………………

4.3.1.5 Service Performance Audit and MMS Provider/Carrier Evaluation……………………….31

4.3.1.6 Special Requirements on all House Hold Goods Shipment………………………………..31

4.4 MONTHLY/QUARTERLY REPORTS………………………………………………………..32

4.4.1 Management Information Reports…………………………………………………………….32

4.4.2 Shipment Summary Report……………………………………………………

4.4.3 Claims Summary Report………………………………………………………

4.4.4 Counseling Contact Summary Report…………………………………………

4.4.5 On-time Service Summary Report…………………………………………………………….33

4.4.6 Special Requested Reports/Ad Hoc…………………………………………………

4.5 EMPLOYEE PRE-MOVE COUNSELING……………………………………………

4.5.2 Preparation of Shipment Documentation……………………………………………

4.5.3 On-Site Quality Control Service………………………………………………

4.5.4 Claims Preparation, Filing, and Settlement Assistance………………………

4.6 MORTGAGE SERVICE COUNSELING………………………………………

4.7 QUALITY ASSURANCE………………….………………………………………

4.8 PROPERTY MANAGEMENT SERVICES……………………………………………………...35

4.9 RELOCATION EXPENSE MANAGEMENT…………………………………..……

4.10 SPECIFIC AGENCY REQUIREMENTS……………………………………..………

4.11 DESTINAION SERVICES……………………………………………………..………

Buyer Assistance……………………………………………………………….…………………..37 Rental Assistance…………………………………………………………………………………...38

5.0 DELIVERABLES………………………………………………………………… ……

6.0 PLACE OF PERFORMANCE…………………………………………………………………...40

7.0 PERIOD OF PERFORMANCE………………………………………………………………

8.0 GOVERNMENT FURNISHED PROPERTY/INFORMATION…………………………..…..40

9.0 OTHER CONSIDERATIONS……………………………………………………………..……..40

Cancellation of Transaction……………………………………………………………….………...40

SECTION D – PACKAGING AND MARKING………………………….………………………

SECTION E – INSPECTION AND ACCEPTANCE……………………………………………...…42

SECTION F – DELIVERIES OR PERFORMANCE……………………………………

SECTION G – CONTRACT ADMINISTRATION DATA…………………………

SECTION H – SPECIAL CONTRACTS REQUIREMENTS………………………………………45

SECTION I – CONTRACT CLAUSES AND PROVISIONS……………………………………….49

SECTION J – LIST OF ATTACHMENTS…………………………………………………………..65

ATTACHMENT 1 – HISTORICAL DATA ON BUY-OUT OF HOMES…………………………66

ATTACHMENT 2 – HISTORICAL DATA ON MOVE MANAGEMENT AND

RELATED SERVICES……………………………………………………………………………...67

ATTACHMENT 3 – DEFINITIONS………………………………………………………………….68

ATTACHMENT 4 – PAST PERFORMANCE QUESTIONNAIRE……………………………….77

SECTION K – REPRESENTATIONS, CERTIFICATIONS AND OTHER

STATEMENTS OF OFFERORS AND RESPONDENTS……………………………………..…82

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS…

SECTION M – EVALUATION FACTORS FOR AWARD…………………………

SECTION B - PRICING SCHEDULE

The Contractor shall provide the services listed in Section C – Statement of Work at the inclusive price/percentage specified in each item number under all Contract Line Items (CLINs) below.

The pricing tables that follow represent a base period of one (1) year and four (4) one-year options. Offerors shall price all CLINs to be considered for an award.

BASE PERIOD

$_____________per month until resale closing

Line Haul Discount

Discount

OPTION PERIOD ONE (1)

$______________per month until resale closing

Line Haul Discount

Discount

OPTION PERIOD TWO (2)

Line Haul Discount

Discount

OPTION PERIOD THREE (3)

Line Haul Discount

Discount

OPTION PERIOD FOUR (4)

Line Haul Discount

Discount

SECTION C – STATEMENT OF WORK

DEPARTMENT OF JUSTICE

BUREAU OF ALCOHOL, TOBACCO, FIREARMS & EXPLOSIVES

FOR

RELOCATION AND MOVE MANAGEMENT SERVICES

1.0

BACKGROUND:

Public Law 98-151 (5 U.S.C. 5724c) authorizes agencies to enter into contracts with private firms to provide relocation assistance to eligible transferring employees who move for the “good of the government” and receive permanent change of station orders noting eligibility for relocation support. The General Services Administration (GSA) has issued regulations on the use of third-party relocation services companies in the Federal Travel Regulation (FTR) Part 302-12 and rules for Permanent Change of Station (PCS) in FTR Part 302.

The Department of Justice, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) has 25 Field Division Offices throughout the United States, over 100 Satellite Offices as well as its Headquarters; located in Washington, DC. ATF employees live in or near major metropolitan cities and on an annual basis, the ATF relocates approximately 100-150 employees throughout the Continental United states, Alaska, Hawaii, Puerto Rico, Virgin Islands, and Guam; in addition to several international locations (e.g. Mexico, Canada, France, China and Central America). Approximately 90% of these relocating employees are homeowners, and the remaining 10% are renters; these rates of relocation are expected to remain stable during the life of the contract.

The Employee Relocation Program was established to provide enhanced benefits to relocating employees and thus facilitate the retention of well-qualified employees. The program provides relocation assistance to help employees plan and complete moves to their new duty stations as quickly and smoothly as possible.

ATF has expanded its communication infrastructure by taking advantage of the Internet’s low cost, global accessibility and the ability to conduct secure information sharing and financial transactions. ATF will utilize electronic commerce to conduct transactions whenever feasible utilizing currently available technology and to implement new or expanded Internet services as they become available.

2.0

OBJECTIVE/SCOPE:

To obtain services that provide ATF’s relocating employees with Home Marketing Assistance, Home Sale Services, Move Management Services, Mortgage Service Counseling and Property Management Services.

The program strives to achieve the following outcomes:

■ Provide relocation assistance to help employees plan and complete their moves to new duty stations as smoothly as possible.

■ Afford eligible transferring employees with access to relocation services, including pre-transfer counseling, property management, move management services and real estate assistance that includes the marketing and sale of a residence at the transferring employee’s old duty station and destination services at the transferring employee’s new duty station.

■ Balance the effects that availability of relocation services has on employee mobility and morale by providing qualified homesale and move management providers.

■ Ensure that the highest possible level of quality and customer satisfaction is provided to transferring employees under the spectrum of the Employee Relocation Program through standardized programs and quantifiable metrics.

■ Create a flexible and fair Employee Relocation Program that encourages competition from all full service relocation providers.

■ Collect actual cost experience from successful contractor(s) for reporting data calls from the Office of Management and Budget (OMB) and provide uniformed data for the ATF to manage and budget their program costs.

3.0

PURPOSE:

The purpose of this requirement is to obtain a qualified contractor to provide professional Employee Relocation Services for ATF employees being relocated in the interest of the Government. The Employee Relocation Services will include the various services required to successfully accomplish the required services as outlined in this Statement of Work.

4.0

TASKS AND PROCEDURES:

4.0.1 The Contractor shall contact Employee by telephone or email within four (4) business days of the Employee’s Authorization date, to counsel Employee on procedures specific to the terms and conditions of the services contracted by the Employee’s agency. If the Contractor is unable to reach the employee, the file shall be documented to that effect, and the Contractor shall continue to attempt to contact the employee in an expeditious manner. Failure to contact the employee within four (4) working days shall be reported to the Relocation Services Coordinator (RSC).

During the initial contact, the Employee shall be given the Contractor's toll-free telephone number. At this time, the Contractor shall:

· Advise the employee that if he/she elects to use the Home Sale Services provided under this contract, he/she is required to sign and return a property condition Disclosure Statement(s) within five (5) calendar days of receipt and prior to the Contractor ordering appraisals. No appraisals will be ordered until the Contractor receives the required signed Disclosure Statement(s). Contractor shall notify RSC of anticipated delays in the appraisal process resulting from Employee failure to return the signed Disclosure Statement(s).

· Explain the Home Marketing Assistance Program to the Employee and the Employee’s roles and responsibilities to participate in marketing the Home. Ordering agencies that contract for Home Sale Services..

· Advise the Employee that if he/she elects to use the Home Sale Services, he/she may, prior to the appraisals being performed, gather and submit information concerning the Home, such as comparable sales and listing information, which the Employee reasonably feels will affect the value at the home. This information will be furnished in writing by the Employee to the appraiser(s) at the time of the appraiser’s inspection or beforehand.

· Advise Employee that homesale market conditions and loan settlement requirements may impact the Employee’s ability to participate in the Guaranteed Buyout Program and options Employee should pursue if he/she anticipates a Negative Equity or Short Sale situation in which his/her loan amount exceeds equity in the home.

The RSC may require additional specific items of information to be included in the Contractor's telephone notification by the Contractor to relocating Employees of that agency.

Within four (4) business days of the date of initial telephone or email contact, the Contractor will mail the employee information confirming the conversation and providing the employee with copies of all publications pertaining to the relocation program services applicable to the Employee. The Government desires "user friendly" brochures and literature (to be reviewed and approved by the COTR; who will provide feedback to contractor within three (3) business days of receipt) that provide accurate guidance and instructions to user agency/employees/RSC. Copies of these publications will be provided, upon request, to the RSC at no additional cost. Information to be mailed shall include copies of any Disclosure Statement(s) required by local, state, or Federal law. If no Disclosure Statements are required under local, state or Federal law, the Contractor must furnish a standard form Disclosure Statement developed by the Contractor for use under this contract. At a minimum, the Disclosure Statement will include the elements identified in the sample disclosure form included among the attachments to this Statement of Work (SOW). Information to be mailed shall include a description of the appraisal, title search and inspection procedures the Contractor will use pursuant to the ”Inspections and Inspection Criteria,” "Appraisals," "Appraised Value Sales", "Amended Value Sales" and "Amended from Zero Sales" sections below.

Required Pricing Option: Full Choice Guaranteed Buyout with Mortgage Payoff – Shall mean the following:

· Employee has choice of real estate agent in both old and new duty locations;

· Employee may have listed their home previously as a “For Sale By Owner” or other listing arrangement;

· Appraisals are performed upon authorization from ATF;

· Employee will select Designated Certified Appraisers from list provided by the Contractor or choose their own provided the appraisers (chosen by the Employee) have demonstrated experience in performing relocation appraisals in accordance with Worldwide Employee Relocation Council (ERC) Appraisal Guidelines;

· Appraised Value Offer Period is for a period of 60 calendar days, but may be extended by the ATF Contracting Officer’s Technical Representative (COTR) for an additional 15 calendar days;

· Employee may accept Appraised Value Offer at any time during the offer period;

· Mortgage payoff is required within 21 calendar days of acquisition of the Employee’s property by the Contractor;

· Employee mortgage counseling for new home purchase is not required; and

· Employee has choice of mortgage supplier.

If the U.S. housing market conditions strengthen as determined by ATF through review of key housing market indicators as identified by the U.S. Department of Housing and Urban Development quarterly report “U.S. Housing Market Conditions,” or other source as determined reliable by ATF, the ATF Contracting Officer may request the Contractor to verify current pricing relative to the improved market conditions or to voluntarily reduce pricing commensurate with real estate market improvements.

4.0.2 Special Property Transactions - Homes that do not qualify for Home Sale Services (ineligible properties listed on page 27) may be referred for Special Properties. The Contractor is authorized to provide these services under this contract. Special Properties will be agreed upon by the Contractor and ATF’s Contracting Officer or ATF’s Contracting Officer’s Technical Representative (COTR), when properties are determined to be either especially difficult to sell or where the property value is especially difficult to determine. For example, Special Properties may include:

· Homes with Appraised Values in excess of $1,000,000

· Homes in remote areas (greater than 10 miles from the nearest incorporated town) or homes not accessible by automobile throughout the year or that require use of boats, airplanes or specially equipped automobiles to access the property

· Homes with lot sizes that are uncommon for the area (e.g., lots in excess 5 acres in a metropolitan area), income producing properties, and other situations where the employee is authorized relocation allowances on a pro rata basis;

· Homes with repair requirements in excess of 5% of the property value as determined by the Broker’s Market Analysis (BMA) ordered by Contractor;

· Homes where the owner is in foreclosure;

· Homes with unique attributes or features highly unusual for the market, e.g. earth-bermed homes, homes with alternative energy systems, etc.

Specific Contractor criteria for Special Properties shall be identified to ATF as part of the offer submission. Prior agreement between the Contractor and ATF is required before a property would be handled in this manner and alternative pricing typically applies. Contractor must identify an Employee’s home as a Special Property PRIOR to extending the Appraised Value Offer to the Employee. Contractor must supply to ATF’s COTR documentation to support the Special Property transaction.

If a Contractor refers a Home as a Special Property Transaction per the criteria described in this Statement of Work and the ATF Contracting Officer or COTR do not agree, ATF may pull the home from the homesale program and reimburse the Contractor for actual expenses incurred to date for appraisals and/or inspections with the submission of documentation that substantiates all expenses as allowed by the FTR. For purposes other than fee, Special Property Transactions will be handled in the same manner as properties handled under the Home Sale Service and in accordance with ATF’s relocation program.

4.0.3 Inspections and Inspection Criteria:

The Contractor shall order inspections as follows:

· General Home Inspection: Shall be ordered on all homes in excess of 10 years old.

· Pest/Termite Inspection: Shall be ordered on all homes.

· Additional Inspections: Limited to those recommended and/or required by the Appraisals, BMA, or as required or customary by state or local codes, safety requirements, laws or common practice for the transfer of property title or homeowner disclosures to buyers in effect at the time the Home was built or purchased by the current owner. Includes homes with non-compliant conditions that cannot be corrected in accordance with procedures in the “Appraisal” and “Amended Value Sales” sections in this Statement of Work that affect obtaining mortgage financing or hazardous or safety issues. The Contractor is required to notify Employee of all additional inspections and secure consent from Employee prior to ordering inspections.

· List of home components that will be required by the Contractor to be inspected routinely (e.g., structural inspection, roof, heating/cooling systems, septic system, etc.) should be detailed to ATF.

Inspection Process:

· Before any inspections for possible contamination by toxic or hazardous substances are conducted, the employee shall be informed of the nature of the inspections that will be performed and shall give permission to conduct said inspections. Failure to grant permission for inspection(s) within 14 days of the first documented request will make the home ineligible for the home buyout program. An inspector performing an inspection under this contract shall:

· Have no present or future interest in the subject property nor have a relationship which would affect an independent judgment while performing the inspection.

· Not be a Government employee and not be related to the employee or the Contractor by blood or marriage.

· Not have a relationship with the employee or the Contractor (personal or business) that would affect the objectivity and/or independence of the inspection.

· Not have inspected the subject property within the prior six months.

· Have the ability to perform the service in a timely fashion in an effort to enable the Contractor to meet the contract’s timeframes.

· Not base his/her fee on a percentage of the appraised value of the property or have said fee contingent on the sale of the property.

· Inspector must be licensed as well as certified.

· The Employee shall be advised that the sole purpose of the inspections is to determine whether the home is in fact eligible for the Home Sale Services portion of this contract and that, if it is determined that a condition making the home ineligible exists, the Employee shall be afforded an opportunity to repair or remedy the condition. If the independent inspector determines that a condition cannot be corrected, the residence will be ineligible for the home sale program.

· Offers may be contingent offers only if those repairs and inspections required as stated herein have not been completed. If the condition is not correctable or if the Employee elects not to correct it, the home shall be ineligible for the Home Sale Services portion of this contract. Conversely, if the condition(s) is corrected by the Employee and a satisfactory re-inspection report(s) is obtained, the Contractor shall be required to accept the home on an “as is” basis. Employees shall be given a period of 30 days to correct all conditions.

· If inspections reveal conditions that make a home ineligible for the Home Sale Services portion of this contract, the Contractor shall determine if the condition can be corrected and if a binding repair cost can be obtained from a qualified repair contractor. If the condition can be corrected within a reasonable period, not to exceed 30 days from the date an Employee accepts an Appraised Value Offer, and a binding repair cost can be obtained, the Appraised Value Offer may be made contingent in accordance with Appraised Value Sales. If the conditions require remediation of toxic hazardous substances, or if a binding repair cost cannot be obtained, the Contractor shall notify the Employee of the condition. The Employee will have five (5) calendar days to elect one of the following:

(i) Delay receipt of the Appraised Value Offer for up to 30 calendar days of receiving verbal notice from the Contractor, followed up by written notice of the ineligible condition, and correct the condition within the 30-day period. In this situation the Contractor will ensure that the appraisals are updated accordingly to reflect market changes due to the 30-day delay. The Contractor will require the Employee to obtain and submit all bids for approval by the Contractor. If repair estimates are in excess of $1,000 the Employee will be required to obtain two estimates. Both estimates will require Contractor approval. The repairs must be re-inspected by a qualified inspector of the Contractor’s choice and approved prior to the Employee’s ability to accept the Appraised Value Offer under all pricing options.

(ii) Receive the Appraised Value Offer contingent upon completion of the repairs by a qualified repair contractor. The contingency will require the Employee to complete the repairs within 30 calendar days of receipt of the Appraised Value Offer. The repairs must be re-inspected by a qualified inspector of the Contractor’s choice and approved prior to the Employee’s ability to accept the Appraised Value Offer under all pricing options.

Inspection Repairs

Non-cosmetic improvements or repairs cited by the inspection that affect insurability or ability to financing will be the Employee’s responsibility to complete, at the Employee’s expense. Upon prior agreement between Contractor and ATF, expenses for repairs authorized by the Employee and coordinated by the Contractor may be deducted from the Employee’s equity at Closing by the Contractor.

Appraisals:

Appraisal Standards

Appraisals shall be conducted by Designated Certified Appraisers in accordance with current Uniform Standard of Professional Appraisal Practice (USPAP) as published by the Appraisal Standards Board and industry-accepted guidelines, such as the Worldwide ERC© Appraisal Guidelines. Where USPAP and/or Worldwide ERC© guidelines conflict with contract requirements, the contract shall prevail.

Contact with Employee, Counsel on Appraisal Process and Provide Appraiser List

Within two (2) business days of receipt of Authorization, the Contractor shall contact the Employee by telephone or by email to arrange for a telephone call to:

· Discuss the appraisal, inspection and title search processes

· Provide the Employee with a written list of approved Designated Certified Appraisers if services are contracted under Pricing Options 1 - Full Choice Guaranteed Buyout. If services are contracted under Pricing Options 2 – Managed Guaranteed Buyout, ATF may opt to delay Appraisals for up to 30 days into the Mandatory Marketing Period. Use of “off list” appraisers is permitted by ATF under this contract, however the “off list appraiser” must demonstrate experience in performing a relocation appraisal using Worldwide ERC© appraisal guidelines. “Off list” appraisers include any appraiser not on the list of approved appraisers supplied by the Contractor.

· If Contractor has not had a telephone discussion within four (4) business days of receipt of Authorization, Contractor must notify RSC to discuss attempts to contact Employee, request RSC assistance to contact Employee and to adjust the schedule of future actions to reflect the delay in contacting Employee. It is at RSC sole discretion to agree to adjust schedule.

Title Search, Broker Market Analysis, Inspections

After initial counseling with Employee, Contractor may order the following:

· Title search

· A Broker’s Market Analysis (BMA ) will be ordered within five (5) days of initial counseling with Employee

· Inspections and Inspection Criteria, from qualified, professional and independent home inspectors will be ordered by the Contractor within five (5) business days from the initial counseling with the Employee.

Appraisal Selection and Ordering

Within two (2) business days of receipt of written list of Designated Certified Appraisers, the employee shall select three (3) appraisers, in order of preference, and notify the Contractor of selections.

Within one (1) working day from Employee notification, Contractor shall order:

· Two (2) Appraisals based on the order of preference specified by Employee

· Contractor shall advise appraiser of the following:

· Appraisal Standards to be used

· Comparable Property Criteria. For Homes in markets in which property foreclosure sales and/or listings constitute a significant percentage of comparable property sales and/or listings, appraisers should notify the Contractor of intent to use those comparables PRIOR to establishing the Anticipated Sales Price of the Home and provide documentation to the Contractor. Contractor must then apprise the ordering agency of the appraiser’s intent to use foreclosures and or auction sales and forward copies of documentation to the ordering agency. Agency is encouraged to verify local foreclosure trends. If an appraiser cannot identify comparables per these criteria, appraiser must immediately notify the Contractor prior to completing the appraisal. Home sales resulting from auctions will not be allowed as comparable properties.

· Contractor shall require the appraiser to support the appraisal report with objective verifiable data and advise that this data shall be made available to the Employee, if requested.

· One (1) Broker’s Market Analysis (BMA).

Appraisal Reports & Review Process

· Must be completed within 30 business days from the Appraisal order date

· Contractor must notify RSC of any anticipated delay and the expected completed date. An extension may be granted for a maximum of an additional 15 business days.

· Upon receipt, Contractor shall review reports to determine if they are complete, accurate, consistent and in accordance with Appraisal Standards and Comparable Property Criteria as defined herein

· Any questions that the Contractor may wish to ask the Appraiser concerning the Appraisal Report submitted (by the Appraiser) will be in writing and a copy of those questions provided to the Employee and ATF (via email).

· Completed appraisals are not subject to adjustment by the appraiser except to correct mathematical errors or errors of fact or to explain adjustments not otherwise addressed in the appraisal report. The Contractor shall require the appraiser to support the appraisal report with objective verifiable data and this data shall be made available to the employee and the RSC if requested. For the purposes of this contract, “errors of fact” include material mistakes regarding such items as dates and prices of comparable sales, measurements of properties, and other objective data verifiable by an impartial observer without particular expertise in appraisal techniques. “Errors of fact” do not include matters of opinion such as professional judgments concerning differences in condition of a property relative to comparable sales and listings or the economic significance of such differences. All adjustments must be clearly identified and made known to the employee. “Errors of fact” will be verified by the RSC to determine the necessity for appraisal adjustments or to request additional appraisals.

· If the Contractor disputes findings of original Appraisals relative to anything other than mathematical error or “errors of fact,” Contractor may order an additional Appraisal, at its own expense to review with the RSC. However, whether that appraisal will be used in the computation of the Guaranteed Buyout Offer is at the discretion of the ATF CO and/or COTR.

· Copies of Appraisal Reports will be provided by the Contractor within 10 calendar days of a Reconsideration Request submitted by an ATF Employee to the Contractor.

Forecasting

Forecasting is the process of analyzing historical trends and current factors as basis for anticipating market trends. A forecasting adjustment is applied to reflect any effect the trends will have on the subject property’s marketing time and sales price. Forecasting is an analytical tool pivotal for developing an accurate Anticipated Sales Price. According to the Worldwide ERC Appraisal Guidelines, elements of forecasting to assist the appraiser with trends to consider include:

· Marketing Time (days on market)

· Housing Demand

· Housing Supply

· Competing Properties

· New Construction

· Real-estate Owned (RE0)/Foreclosure Competition

· Interest Rates

· Mood of the Market

· Seasonal Market Trends

· Economic and Employment Shifts

· Withdrawn and Expired Listing

· Demographic Trends

· Buyer Profile

· Pending Sales; and

· Subject Property Listing

Forecasting applies when the normal marketing time in the area is not to exceed 120 calendar days. Factors taken into account by the appraiser shall be set forth in the report supported with objective, verifiable data. Data supporting forecasting and the method used to apply forecasting must be provided. It is not sufficient for the appraiser to indicate that “market is declining x percent per month.” Forecasting is permitted when market conditions warrant that it be done.

Appraised Value Offer:

Contractor shall average the appraised value amounts to determine the Appraised Value Offer. If the two appraisals differ by more than 5% of the higher value, the Contractor shall arrange for a third appraisal to be ordered in accordance with the Employee’s preference of appraiser selection. The third appraiser is not to be advised that he/she is being called in as the third appraiser. When three appraisals are performed, the Contractor shall determine the Appraised Value Offer amount by: (a) the average of the two closest appraisals or (b) if the three appraisals vary equally, the average of the three appraisals will be used. When a third appraisal is performed, it shall also be completed within the 30 business day timeframe as stipulated. However, if the RSC determines that local conditions preclude completion of the third appraisal within 30 business days, the RSC may grant a reasonable extension of time to complete the process. The extension time period shall be a reasonable length dependent upon the local conditions.

Prior to extending the Appraised Value Offer to the Employee, Contractor should obtain information from the Employee sufficient to determine if the anticipated amount of the Appraised Value Offer will result in a positive or negative equity situation for the Employee. If Contractor determines that the anticipated Appraised Value Offer may possibly result in a negative equity situation for the Employee, the Contractor will apprise the RSC and Employee. The Contractor will either delay presentation of the Appraised Value Offer to the Employee to allow the Employee time to obtain financial assistance to address the anticipated deficit or to disqualify the Employee from the Home Sale Services Program. ATF will pay the Contractor for expenses incurred for appraisals and inspections conducted to derive the Anticipated Sales Price, when an Employee’s home is disqualified from the Home Sale Service Program.

Appraised Value Sales:

Within two (2) business days of completion of the appraisal, inspection and title process, the Contractor shall make the employee either an oral or written (email is acceptable) Appraised Value Offer to purchase the home. The Appraised Value Offer shall be the average of the two appraisals or when a third appraisal has been ordered, the average of the two closest appraisals or the average of the three appraisals when dollar values of the three appraisals are equidistant apart. This Appraised Value Offer may be a contingent offer only if any required repairs and re-inspections have not been completed before the offer is made by the Contractor. In the event a contingent offer is made, the contingencies apply only to the repair issues and the Employee shall be afforded the options available herein.

The Contractor shall require the Employee to obtain estimates of repair and re-inspection costs from established, reputable, independent contractors. If the estimated cost for repairs exceeds $1,000, the Employee will be required to obtain a second estimate. The scope of work for which estimates are obtained shall be limited to the minimum work required to bring the home up to standards set by the applicable law ordinance, regulation or code. Completed repairs will be inspected by an inspector of Contractor’s choice prior to Employee’s acceptance of the Appraised Value Offer.

If a contingent offer is made, the Employee shall be given five (5) calendar days to choose one of the options identified below. If the Employee elects to complete any repairs and re-inspections, the Employee will be required to complete these repairs prior to acceptance, but no later than 30 calendar days after receipt of the Appraised Value Offer. Repair contractors or re-inspection services shall not have a personal or business relationship with the Employee or the Contractor that would affect the objectivity and/or independence of the appraisal. The contractor providing inspections shall not be eligible to provide estimates for repairs or to perform the repairs without prior approval of the RSC.

In the event that a contingent offer is made, the Employee will be given ten (10) business days to obtain estimates for repairs unless an extension is granted by the Contractor.

Employee may elect to complete any required repairs and re-inspections at his/her expense. Repairs and re-inspections must be completed to Contractor’s satisfaction that the home meets standards set by local law ordinance, regulation or code in effect at the time that the Employee’s home was initiated into the Home Sale Services Program.

If an established, reputable, independent contractor is not available to make the necessary repairs, the Employee should obtain quotes from contractors outside of the area. Employees may also provide other repair options and present those to the RSC and Contractor for approval prior to completing repairs as detailed above.

Disputes under Appraised Value Sales:

Disputes will be handled between the Contractor, ATF’s Contracting Officer and/or ATF’s COTR. The Contractor shall make reasonable efforts to effect the necessary repairs and re-inspections and conclude all necessary financial adjustments with the Employee within 20 business days after completion of the Home Sales Service. Neither ATF nor the Employee shall be held liable for any errors or omissions that are solely attributable to the Contractor.

A written Appraised Value Offer shall be mailed to the employee within two (2) business days of the date the Contractor makes his/her oral or email offer. The written offer to the Employee shall be accompanied by copies of all appraisals, inspection reports and other information pertaining to the offer. The written offer shall also include procedures for the Employee to request a reevaluation of the appraisals. All documents shall be transmitted in their entirety and no information whatsoever shall be deleted from them. Any adjustments made to such documents shall be supported by written justification and made known to the Employee. Copies of all documents sent to the Employee shall be provided to the RSC upon request.

The Employee shall have 60 calendar days from the date of the oral or written offer to accept or reject the Contractor's Appraised Value Offer, unless the Expiration Date has been extended. At this time, the Employee may request an equity advance upon receipt of offer pursuant to procedures set forth under paragraph “Equity Advance” of this Statement of Work. The Employee is free to reject the Contractor's Appraised Value Offer at any time and proceed to sell the home independently. If the Employee rejects the Contractor's offer, no further Home Sale Services shall be performed by the Contractor. The Contractor will bill ATF for direct costs actually incurred and which are reimbursable under the FTR. If the Employee rejects the Contractor's offer, the home shall no longer be eligible for inclusion in the Home Sale Services portion of this contract. However, Employee will be eligible to receive Home Marketing Assistance for Direct Reimbursement of Home Sale Expenses. Rejection of the Contractor’s offer will not be made effective until the end of the 60-day Acceptance Period. Though Employees may notify the Contractor or the COTR prior to the end of the 60-day acceptance period, the delay in effective date shall allow Employees to reconsider their rejection until the end of the full 60 days. If after rejecting the offer the Employee decides to accept the offer within the 60-day offer period, the Employee shall re-enter the program by accepting the offer, and the initial 60-day acceptance period shall not be extended.

Reconsideration of Appraisals:

The Contractor shall have written procedures for a Reconsideration/Revaluation of Appraisals. A copy of the Contractor’s procedures may be submitted at the time of their submission or at a later date as determined by the ATF Contracting Officer. The Contractor shall provide a written procedure for the Employee to request a reevaluation of the appraisals used in the determination of the Appraised Value Offer. At a minimum, the procedure provided by the Contractor shall contain the following provisions:

· Written instructions must be provided to the Employee in the package submitted with the Employee’s written Appraised Value Offer.

· The Employee must submit the reevaluation request within 15 calendar days of receipt of the written offer to the Contractor and to the RSC.

· The reevaluation request shall be reviewed by the Contractor, the RSC and by the appraisers so that every effort is made to provide the Employee with a fair and equitable resolution of the situation. Revised Appraised Value Offers will be based upon the reevaluation of the original appraisals, regardless of variance. As a result of the reevaluation, the offer may be higher, lower or the same. Reevaluation requests which cannot be resolved between the Contractor, appraisers and ATF’s COTR or RSC shall be forwarded to the ATF Contracting Officer, which must be done prior to the Employee’s acceptance of the offer. The ATF Contracting Officer’s role is to ensure proper compliance with the Statement of Work, including time frames, and not to interpret appraisals or reevaluations of appraisals.

· In no event will the Employee be given less than 15 calendar days to review the results of his/her reevaluation in order to determine whether to accept or reject the offer.

· The reevaluation process shall be completed prior to the 60-calendar-day acceptance period unless extended by the RSC. Accordingly, the results of the reevaluation should be furnished by the Contractor to the Employee no more than 45 calendar days after the date the original written Appraised Value Offer was tendered to the Employee. If the RSC determines that the reevaluation was not seriously considered by the appraiser, the RSC shall grant an option to extend the appraisal process and to order an additional appraisal(s) as replacement(s) shall be made available to the Employee. The Employee’s agency shall be responsible for cost associated with the additional replacement appraisal(s).

· If it is determined that any of the three appraisals is inaccurate or questionable, the Contractor shall obtain an independent review of the appraisals in question. If the independent appraiser finds the questionable appraisal(s) inaccurate or incomplete, that appraisal(s) shall be disqualified and another appraisal shall be ordered. The Contractor has the responsibility for developing written criteria for the selection of the independent reviewer. These criteria shall be subject to review and approval by the RSC. Costs incurred by disqualified appraisals shall be borne by the Contractor.

· If an appraisal is disqualified and replaced by a new appraisal at any time during this process, the disqualified appraisal shall not be used in any further calculations. This will result in a new Appraised Value Offer based on the new original appraisal that will either be higher than, equal to or lower than the original offer, as described above.

If the Employee rejects the Contractor's Appraised Value Offer, direct costs incurred by the Contractor pursuant to this contract which are reimbursable under the FTR will be paid by ATF. No service charge shall be paid for such services. The Contractor will make available to the Employee copies of any document(s) paid for by ATF so that the Employee may use them in selling his/her home independently.

Amended Value Sales:

The Employee may market the home through the Contractor’s Marketing Assistance Program for up to the full 60 days allowed for the Acceptance Period. If the Employee is successful in finding a potential outside buyer willing to pay a purchase price equal to or greater than the Appraised Value Offer made by the Contractor (unless the employee, at his/her discretion voluntarily agrees to accept an offer at less than the Appraised Value Offer); the Employee’s transaction shall be closed according to the Amended Value Sales procedures detailed below.

Amended Value Sales Procedures

· The Employee shall not enter into a contract or sign any agreement document with the potential outside buyer or accept a down payment or earnest money deposit.

· The Contractor shall review the offer's terms and conditions and shall counsel the Employee throughout the negotiation of the offer.

· The Contractor shall verify that the offer from the potential outside buyer is bona fide and shall make adjustments to compare the two offers on an all-cash basis. Such adjustments may include deducting items not reimbursable under the FTR such as seller's concessions made by the Employee, finance charges, points and excess real estate commission. Within five (5) working days of receipt of the outside offer and all required documentation, the Contractor shall notify the Employee of its determination whether the outside offer is bona fide and the buyer is reasonably qualified.

· If the offer is determined to be bona-fide, the Contractor shall amend its original offer to the Employee, revising its purchase price to the amount of the potential outside buyer's purchase price as adjusted. This amended value offer may be a contingent offer only to the extent provided for "Bona Fide Offers" as defined in this Statement of Work. Accordingly, no contingencies may be included other than those that (a) provide for repairs and re-inspections required under this Statement of Work, (b) provide that the potential outside buyer must qualify for financing and (c) provide that the seller must convey marketable and insurable title. Amended value offers may not be contingent on other events such as the sale of other real estate by the potential outside buyer.

· The Employee bears no risk if the potential outside buyer does not purchase the home or if the home eventually is sold for less than the amended value offer.

· The Employee is free to reject the Contractor's amended value offer at any time and proceed to sell the home independently. If the employee rejects the Contractor's offer, no further Home Sale Services shall be performed by the Contractor. The Contractor will bill ATF for direct costs actually incurred and which are reimbursable under the FTR. If the employee rejects the Contractor's offer, the home shall no longer be eligible for inclusion in the Home Sale Services portion of this contract.

· Upon completion of the transaction, the Contractor shall bill ATF for the amended value sales fee based on the gross amended value of the home (value of the amended offer prior to deductions in sales price for concessions made by the Employee to the buyer, such as an allowance for repairs or redecorating that are to be deducted from the Employee’s equity at closing).

· If the home was listed with a real estate broker, upon the Employee’s acceptance of the amended value offer and termination of the Employee’s listing agreement as provided in the listing exclusion clause, the Contractor shall initiate a listing agreement with the broker and shall pay the commission to the broker if the sale to the potential outside buyer is completed on the negotiated terms. The Contractor shall make a good faith effort to close the sale to the potential outside buyer.

· If the offer does not result in a completed sale at no fault to the Contractor, the transaction will revert to an Appraised Value Sale fee for purposes of payment to the Contractor. If the home is ultimately sold to the same outside buyer but on terms and conditions significantly different from the original offer, the transaction may revert to an Appraised Value Sale for purposes of payment to the Contractor unless otherwise defined in agency policy, blanket purchase agreement or task order.

Amend-from-Zero Sales:

An “Amend-from-Zero Sale” occurs when the relocating Employee receives a Bona Fide Offer from a qualified buyer before the Employee has received an Appraisal Value Offer from the Contractor. .

Amend-from-Zero Sales Procedures:

· If the Employee receives an acceptable Bona Fide Offer from a potential outside buyer prior to completion of the appraisal process he/she shall immediately notify the Contractor. The Employee shall not enter into a contract or sign an agreement document with the potential outside buyer or accept a down payment or earnest money deposit.

· The Contractor shall review the offeror's terms and conditions and shall counsel the Employee throughout the negotiation of the offer.

· The Contractor shall obtain independent BMAs by two licensed real estate brokers of the Contractor's choice. These firms shall not have a business or personal relationship with either the Employee or the Contractor that could affect the objectivity and/or independence of the inspection. The higher of these two analyses shall serve as a benchmark of market value to help determine the reasonableness of the offer.

· The Contractor shall make adjustments to compare the offer and the higher of the two BMAs on an all-cash basis.