District_of_New_Jersey_RFP_Questions_2016_FBO.docx

District of New Jersey RFP Questions:

1) B3. If we were to peg our attorney fee to the FANNIE/FREDDIE allowable rate, how can we increase our fee to DOJ when FANNIE/FREDDIE approves a fee increase?

a. The PC pegging their proposed rate to the Fannie/Freddie model is a PC decision and DOJ will not comment on that decision.

2. B4. Several items listed as unauthorized direct expenses are dependent on the number of defendants. Is there a general number of defendants that should be used in calculating the expense to be included in the flat fee rate?

a. DOJ cannot provide a standard number of defendants as the number will vary from case to case.

3. How should the firm request additional fee approval for individual cases where the number of defendants exceeds this number?

a. The PC should factor into their proposed fees any expected costs. Under this cost model DOJ is not anticipating additional fee requests on a case by case basis.

4. Since the price of the unauthorized direct expenses are not under the control of the firm but rather are set by the court or supplier and are subject to prices increases, how should the firm amend the flat fee rate when such price increases occur?

a. See updated SOW.

5. Some cases require unique and specific motions to move the foreclosure forward, some do not. How should the firm request additional fee approval for individual cases that require those motions?

a. If ancillary motions are required that are not part of the normal foreclosure process, PC can request from the AUSA and COR to bill a set number of hours to perform these services. PC would be paid at its proposed hourly rate for their time.

6. C.1 and C.2. The Statement of Work only refers to ‘unsecured’ debts. Do these paragraphs also cover ‘secured’ debts?

a. The RFP covers unsecured and secured debts.

7. C5.5, C.19, H.2. Several paragraphs refer to ‘flash drives’ and the contractor’s use of same. Our flash drives were recalled by and returned to DOJ several months ago. Is DOJ reinstituting the use of flash drives?

a. The intent under this contract is that PC will utilize drives located on the DOJ network. Flash drives are not likely to be utilized.

8. C.7.2. Since the government cannot utilize the Treasury Offset Program without first obtaining a judgment against the debtor, shouldn’t the contractor receive a contingency fee or flat fee for obtaining that judgment, if no other payment to the contractor is forthcoming?

a. DOJ’s position on the Treasury Offset Program is set out in the RFI and documents referenced in the RFI.

9. C.11.9 Since the mortgage foreclosure process can take in excess of 2 years, can we contract for split payments; i.e., one-half of flat fee rate paid at service complete milestone and one-half of flat fee rate paid at sale scheduled milestone?

a. DOJ would be open to discussion of partially paying PC during the foreclosure process with the proper controls in place to prevent fraud, waste, and abuse.

10. CLIN 0002A. The premium for a title policy is based on the amount of the unpaid principal balance of the secured foreclosed loan. This can vary greatly as balances range from $50,000 to over $1,000,000. How should this be included in the flat fee rate?

a. See updated SOW.

11. GENERAL. Would DOJ award separate contracts for secured and unsecured collections?

a. DOJ awards contracts within a district to which are either unsecured, secured, or both. A PC can be awarded a contract that covers both types of debts but only assigned one type at the discretion of the AUSA.

12. Will a contractor be authorized to decline certain cases?

a. Generally no, unless a conflict of interest exists.

13. Will a firm be able to terminate the contract at will?

a. No.

14. Will a contractor be able to elect to maintain case records in electronic form rather than in paper form?

a. Contractors will be assigned paper files which will be inventoried periodically by the Program Office. The PC can maintain the case electronically on DOJ approved systems or media.

15. Please confirm the due date for this procurement is 1/13/2017 at 2pm ET.

16. What computer software system do you use to manage your accounts/inventory?

a. The Consolidated Debt Collections System (CDCS) designed by another government contractor is the system used to house and manage accounts.

17. Do you have any plans of changing that system in the future, and why/why not?

a. The CDCS is being updated via another government contractor.

18. Do you subscribe to any offset programs?

a. DOJ Private Counsel contractors are contractually required to put cases on the Treasury Offset Program (TOP) where certain case requirements are met.

19. With respect to the mention of foreclosures, we were wondering if you might be able to elaborate on specifically what kind of foreclosure work, and if required, approximately how much of the contract would include foreclosure and eviction?

a. Foreclosure work will come from HUD and VA for mainly residential properties. USDA and Farm Services Agency also provide foreclosure work. Currently, the majority of the work on this contract will be foreclosure work. The AUSA is performing the unsecured work but has discretion to assign the unsecured work to contractors under this contract.

20. On the subject of foreclosure work, it was mentioned on the conference call last week that the DA would be able to designate which cases are allotted to firms. Would it be possible to opt out of Foreclosure cases?

a. The AUSA will assign the cases. The AUSA’s current intent is to assign secured debt in this district.

21. Specifically, what kind of bankruptcy services are being sought by the government?

a. The bankruptcy services sought by the government will vary based on the facts of each case.

22. Can you provide clarification with respect to the necessity of pleadings requiring prior approval by the District Attorney, and describe the process by which this must be done?

a. In each district, the AUSA has pleadings that are considered acceptable to be presented to the court. At the start of the contract, the AUSA will provide these to the contractor. In some instances, at the start of the contract, the PC can submit its pleadings to the AUSA for approval for usage in the district. Approved pleadings would be motions or filings that are deemed proper template documents.

23. The RFP states “up to two Contractor employees (or more at the Government’s discretion)” with respect to CDCS access. Can you provide information regarding how much leeway might be given here?

a. DOJ has the discretion to approve more than two employees in firm. The approved persons per firm varies depending on the business of the office. If several paralegals will be used by the firm to perform most of the work, and two Attorney’s will be accessing the files, the number of users in that office will need to be more than the two contractually allowable persons. DOJ usually looks to see if the number of cases assigned to the firm supports the need for additional cleared persons.