Solicitation_QuestionsAnswers_NYE.docx

Questions Relating to RFP DJJK-17-RFP-1030 Eastern District of New York

1) With regard to the newly released solicitation for legal services, DJJK-17-RFP-1030, can you verify if this contract is a small business set aside? Section K indicates that the NAICS code is 541110 and that the “small business size standard” is $11 million. Will this size standard apply to potential respondents?

No, this requirement is not a small business set-aside. Yes, the small business size standard for this RFP is $11 million.

2) What is the anticipated case load per annum, for an individual firm, under this contract? CANNOT GUARANTEE A MINIMUM # of Referrals per annum.

There is an inventory of over 3000 cases in the district that would be assigned to up to 3 Private Counsel Offices. One third (1/3) of the cases are 10 or more years in age. We cannot guarantee a minimal number of referrals. The current rate of new referrals is less than 100 debts per year.

3) For the bankruptcy portfolio, what is the mix of the nature of the representation?

1. Filing proof of claim

1. Objecting to discharge or dischargeability

1. Vacatur of stay to enforce lien

1. Challenging lien avoidance

1. Other A majority (70% or more) of the debt in the district is unsecured debt referred from Department of Education or Health and Human Services (HHS). Most of these debts are student loans that not discharge in bankruptcy. The bulk of work in Bankruptcy for unsecured cases revolves around filing proof of claim and/or other litigation per the direction of AUSA. For the small number of secured debts (less than 70%) and if approved by the AUSA, the Private Counsel would be litigating on behalf of the USA during the bankruptcy proceeding.

4) For the foreclosure portfolio, what is the mix of the nature of the representation?

1. Foreclosure of primary residence

1. Foreclosure of business real property

1. Foreclosure of collateral mortgage

1. Foreclosure of subordinate mortgage (2nd or 3rd position) The majority of this work is foreclosure of primary residences (Housing Urban Development and Veteran’s Administration referrals). There are a smaller number of referrals from Small Business Administration (SBA) and Agriculture, which are defaulted loans secured against Real Property.

5) Payment of expenses

1. Does DOJ reimburse for title search in a foreclosure matter? Yes, with proper documentation of cost incurred DOJ will reimburse PC for this action.

1. Does DOJ reimburse for sheriff/US Marshall fees related to sale of property? Yes, with proper documentation of cost incurred DOJ will reimburse PC for this action.

1. For collateral recovery of property securing a debt cost of a bond, if required? There are factors which will need to be considered in cases where this action is necessary and DOJ would need to evaluate the facts on a case by case basis to make a determination.

6) In a fixed fee case, for example in bankruptcy, can a separate fee category for appeals be included in the bid? The contract allows PC to request hourly billing for ancillary litigation but the PC must have advanced approval of the action and approval is determined on a case-by-case basis.

7) What is the age (e.g., 180 days to 5 years delinquent) of the assets that will be assigned for collection purposes? A majority of the debts in the district are greater than 5 years old.

8) 2. What is the forecasted volume (expressed as number of cases, number of borrowers, and dollar value of receivables) that will be assigned for collection purposes? a. Please delineate between a one-time “spot” assignment and monthly “forward flow” placement tranches. See answer to #2.

9) 3. What are the historic liquidation yields (recovery rates) of the cases within the Eastern District of New York portfolio that will be assigned for collection purposes? Unable to determine.

10) What collection vendor(s)/law firm(s) is(are) currently assigned to perform collections on behalf of the Eastern District of New York?

Mullen & Innarone, PC Michael T. Sucher