Draft Escrow Services PWS_30APR2026.docx

USDA Rural Development — Escrow Sub-Servicer PWS

U.S. DEPARTMENT OF AGRICULTURE (USDA)

Rural Development Performance Work Statement Escrow Sub-Servicer Services USDA Section 502 Direct Loan Program

TABLE OF CONTENTS

1. Project Title

2. Requiring Organization

3. General Information

3.1 Introduction/Purpose

3.2 Background

4. Scope

5. Constraints and Applicable Documents

6. Contractor Requirements

6.1 Contract Implementation

6.2 Transition Services

6.3 Escrow Services

6.4 Tax Services

6.5 Insurance Services

6.6 Loss Claims Processing

6.7 Escrow Analysis

6.8 Processing Refunds and Returned Payments

6.9 Mail, Fax, Email, and Web-Based Processing

6.10 Call Center Operations

6.11 Escrow Reserves and Funding

6.12 Program Management Support

7. Deliverables and Schedule

8. Quality Control and Assurance

9. Performance Monitoring

10. Standards of Conduct

11. Travel

12. Key Personnel

13. Security Requirements

14. Sub-Contracting Requirements

15. Government Furnished Equipment and Information

16. Hours of Operation

17. Recognized Holidays

18. Technical Instruction

19. Post Award Conference/Periodic Progress Meetings

20. Acronyms and Definitions

1. Project Title Escrow Services

2. Requiring Organization United States Department of Agriculture (USDA), Rural Development (RD), Business Center, Servicing Office (SO), Customer Loan Servicing

3. General Information

3.1 Introduction/Purpose

The purpose of this Indefinite Delivery Indefinite Quantity (IDIQ) is to define outcome-based requirements for escrow, tax, and insurance sub-servicing in support of USDA Rural Development loan programs. This service assists the USDA, Servicing and Asset Management Office in achieving mission needs within the scope identified in this Performance Work Statement (PWS). The Contractor shall perform all services in compliance with USDA Handbook HB-2-3550, Chapter 7 (Escrow, Taxes, and Insurance), applicable federal regulations, and this PWS.

3.2 Background

USDA Rural Development (RD) administers housing programs authorized under the Housing Act of 1949, as amended, and implemented through applicable regulations and Agency handbooks, including 7 CFR Part 3550 and HB-2-3550. These programs require centralized loan servicing and escrow administration to ensure the timely payment of real estate taxes and insurance and to protect the Government’s security and financial interests.

RD’s Direct Single-Family Housing portfolio includes loans originated under the Section 502 Direct Loan Program and serviced in accordance with Federal and Agency requirements. As of January 2026, RD services approximately 132,000 Direct Single-Family Housing loans, representing approximately 105,600 borrowers. Approximately 96 percent of the portfolio is escrowed for real estate taxes and insurance.

The Direct Single-Family Housing loans are generally secured by first mortgages on modest residential properties located on non-farm tracts of one acre or less and are geographically dispersed across all 53 states and U.S. territories, including Puerto Rico and the U.S. Virgin Islands. The portfolio spans numerous taxing authorities, insurance carriers, and hazard exposure profiles, requiring standardized processes, automated system interfaces, and continuous monitoring to maintain compliance and mitigate risk.

In instances where multiple RD loans exist on a single property, escrow accounts are established only for the primary loan, consistent with Agency servicing requirements. RD originates approximately 4,000 new Direct Single-Family Housing loans annually, requiring ongoing escrow setup, portfolio onboarding, and integration into existing servicing operations. The volume, geographic dispersion, and regulatory complexity of the portfolio necessitate a contractor capable of delivering consistent, nationwide escrow services with defined performance standards, reporting, and quality controls.

4. Scope The scope of this contract consists of non-personal services to provide nationwide escrow sub-servicing for the USDA Rural Development (RD) Direct Single-Family Housing loan portfolio and to obtain delinquent real estate tax information for RD Multi-Family Housing properties. Services include escrow administration and related support necessary to ensure the timely payment of real estate taxes and insurance premiums, the preparation of escrow analyses, the processing of insurance loss claims, and the operation of an escrow call center.

Contract services shall be performed on a nationwide basis and shall support properties located throughout the United States and its territories, including, but not limited to, the Western Pacific Islands, Guam, Puerto Rico, American Samoa, and the U.S. Virgin Islands.

The following sub-servicing task areas are within the scope of this contract. Detailed requirements, performance standards, and deliverables for each task area are described in Section 6 of this PWS.

1. Contract Implementation

1. Transition Services

1. Tax Services (tax line establishment, real estate tax payments, delinquent tax searches, tax liability management)

1. Insurance Services (insurance line establishment, premium payments, research and validation, lender-placed insurance, flood determinations)

1. Insurance Loss Claims Processing (loss draft disbursements, claims negotiation and resolution)

1. Escrow Analysis

1. Processing of Refunds and Returned Items

1. Mail, Fax, Email, and Web-Based Processing

1. Escrow Call Center Operations

1. Escrow Reserves and Funding

1. Program Management Support

5. Constraints and Applicable Documents The Contractor shall ensure that all personnel performing work under this contract comply with applicable Federal, State, and local laws, regulations, policies, and procedures governing USDA Rural Development (RD) programs and services. Applicable requirements will be identified in this PWS and, as appropriate, in individual Task Orders (TOs).

The Contractor shall perform all services in accordance with 7 CFR Part 3550 and applicable USDA Rural Development handbooks, including HB-1-3550 and HB-2-3550, as they relate to services under this contract. The Consumer Financial Protection Bureau (CFPB) regulations do not apply to this contract, as USDA is statutorily exempt.

Applicable USDA regulations, directives, and handbooks are available at the following locations:

https://www.rd.usda.gov/resources/regulations/program-regulations https://www.rd.usda.gov/resources/directives/handbooks The Contractor shall monitor applicable laws, regulations, and Agency guidance for updates and shall implement required changes to maintain compliance. If a regulatory or policy change results in an impact to cost or performance requiring an equitable adjustment, the Contractor shall promptly notify the Contracting Officer (CO).

The Contractor shall also comply with all applicable State and local laws and ordinances related to the performance of this contract.

In addition, the Contractor shall comply with applicable Federal statutes and policies governing information technology, records management, privacy, and financial management, including but not limited to:

1. Federal Information Technology Acquisition Reform Act (FITARA)

1. Paperwork Reduction Act (PRA)

1. Privacy Act of 1974

1. Government Paperwork Elimination Act

1. Digital Accountability and Transparency Act

1. Government Performance and Results Act (GPRA)

1. Office of Federal Procurement Policy Act

1. Budget and Accounting Procedures Act

1. Chief Financial Officers Act The Contractor shall comply with all applicable Federal records management laws and National Archives and Records Administration (NARA) regulations, including the Federal Records Act and 36 CFR Chapter XII, Subchapter B. The Contractor shall safeguard records containing Privacy Act information and shall not retain Government data beyond 30 calendar days after the Government has acknowledged receipt of the final approved data files, unless otherwise authorized in writing by the Government.

6. Contractor Requirements The Contractor shall provide escrow sub-servicing support to USDA Rural Development (RD) and the Servicing Office (SO) for functions including, but not limited to, tax administration, insurance administration, escrow analysis, and insurance loss claims processing. Services shall be performed for the duration of the contract and any Task Orders (TOs) issued thereunder.

All work performed under this contract shall be subject to Government oversight and shall be conducted in accordance with applicable policies, standards, and procedures as directed by the Contracting Officer (CO) and the Contracting Officer’s Representative (COR). TOs may be issued to provide support for one or more projects concurrently and may vary in scope and scale.

Each TO will identify the task areas included, along with the specific tasks, subtasks, performance requirements, and deliverables applicable to that TO. When required, TOs will also identify key personnel requirements specific to the work ordered.

The Contractor shall accept loan files and supporting documentation using industry-standard data elements, formats, and transmission methods. All loan files provided under this contract will be transmitted electronically and may include one or more of the following formats or methods:

1. Delimited Text Files (CSV): ASCII text files using comma-separated values, with each line representing a single record and standard carriage return/line feed termination.

1. PDF Files: Portable Document Format files conforming to ISO 32000.

1. Image Files: Standard compressed image formats, including TIFF, JPEG, GIF, and PNG.

1. XML Data Files or Streams: Extensible Markup Language files conforming to applicable mortgage industry data exchange standards, including Government-specific extensions.

1. JSON Data Files: JavaScript Object Notation files conforming to applicable mortgage industry data exchange standards, including Government-specific extensions.

1. Secure File Transfer: Upload and download of files through a government-provided secure environment, including Microsoft SharePoint Government Cloud.

1. Web Services / Application Programming Interfaces (APIs): When utilized, the Government will provide technical specifications, security requirements, and transaction standards for system-to-system data exchange.

6.1 Contract Implementation

The Contractor shall plan, manage, and execute contract implementation activities following contract award to ensure timely, orderly, and controlled commencement of services. Implementation activities shall support transition from contract award through achievement of steady-state operations.

The Contractor shall conduct weekly implementation status meetings following the initial contract kick-off meeting for a period of up to one hundred eighty (180) calendar days after contract award, or until the Government determines that implementation is complete, whichever occurs first.

6.1.2 Implementation Status Reporting

The Contractor shall prepare and submit an Implementation Status Report no later than one (1) business day prior to each scheduled implementation meeting. The format of the report is at the Contractor’s discretion, subject to Government approval. At a minimum, the Implementation Status Report shall address:

1. Implementation milestones and schedule status

1. Staffing, onboarding, and recruiting status, including identification of key personnel

1. System configuration, interface development, and security readiness

1. Data transfer, conversion, testing, and validation activities

1. Transition-in coordination activities, including dependencies with incumbent systems or contractors

1. Risks, issues, and dependencies that may affect implementation or readiness to perform

1. Mitigation strategies, corrective actions, and proposed resolution timelines

1. Readiness indicators supporting transition to steady-state operations

1. Any additional information requested by the Government related to implementation progress or readiness

6.1.3 Performance Standards and Acceptable Quality Levels (AQLs)

6.1.4 Oversight, Escalation, and Notification

Implementation activities shall be subject to Government oversight and coordination through the Contracting Officer (CO) and Contracting Officer’s Representative (COR). The Contractor shall promptly notify the CO, through the COR, of any condition that may materially impact:

1. The implementation schedule

1. System or data readiness

1. Staffing availability

1. Transition-in or transition-out activities

1. Ability to achieve steady-state operations Notification shall occur as soon as the condition is identified and shall include proposed mitigation actions.

6.1.5 Transition-In and Transition-Out Alignment

Implementation activities under this section are limited to transition-in and startup readiness. Detailed transition-in and transition-out requirements, including coordination with incumbent contractors and orderly transfer of responsibilities, are addressed separately under Section 6.2 Transition Services.

Nothing in this section relieves the Contractor of its obligation to support transition-out activities at contract completion or termination as required under the contract.

6.1.6 Acceptance and Remedies

Completion of implementation and authorization to proceed to steady-state operations shall be subject to Government concurrence, based on review of implementation performance, readiness indicators, and successful completion of required onboarding and validation activities. Failure to meet implementation performance standards or AQLs may result in one or more of the following actions, in accordance with the contract:

1. Required corrective action plans

1. Increased Government surveillance

1. Withholding payments related to implementation activities

1. Adjustment of performance ratings

1. Other contractual remedies as appropriate

6.2 Transition Services

6.2.1 General Requirement

The Contractor shall plan and execute a logical, orderly, and seamless transition-in and transition-out of escrow servicing operations to minimize disruption to ongoing program operations and to ensure continuity of services for all awarded Task Orders (TOs). Transition activities under this section are distinct from contract implementation activities described in Section 6.1 and focus on the orderly transfer, conversion, and stabilization of escrow servicing functions.

6.2.2 Establishment of Escrow Services

The Contractor shall utilize a system capable of interfacing with RD’s Loan Origination System (UNIFI) and Loan Servicing System (Sagent/Sagent LoanServ). If a cloud-based system is used, the system shall be authorized under the Federal Risk and Authorization Management Program (FedRAMP). The Contractor shall utilize electronic data transmission from RD systems and shall provide automated interface files to update tax and insurance information in Sagent/Sagent LoanServ. Interface files shall be transmitted at a frequency sufficient to maintain current and accurate escrow records, and no less than daily unless otherwise directed by the Government.

The Contractor shall establish escrow services for taxes and insurance within three (3) calendar days of notification of a new loan origination or receipt of updated tax or insurance information. The Contractor shall obtain, verify, and record all applicable tax and insurance information and shall ensure payment of all bills prior to delinquency or loss of discount. The Contractor shall be responsible for penalties, interest, loss of discount, or incorrect disbursements resulting from failure to accurately identify property parcels, maintain current insurance information, or comply with escrow servicing requirements.

The Contractor shall reimburse RD for any loss of property resulting from failure to pay taxes, insurance premiums, or to maintain lender-placed insurance when required under RD business rules.

6.2.3 Transition of Existing Escrowed Loans

The Contractor shall convert existing escrowed loans currently serviced by incumbent vendors, utilizing electronic transfer of records. Conversion of transferred records shall be completed within three (3) calendar days of receipt.

The Contractor shall initiate retrieval and conversion of existing escrow tax and insurance records upon official contract execution and shall coordinate transition activities to avoid service interruptions.

6.2.4 Account Number Conversion and Data Maintenance

RD identifies each loan using a unique borrower identification number. If RD establishes new account numbers for existing loans, RD will provide documentation identifying the prior and corresponding new account numbers within thirty (30) calendar days.

The Contractor shall treat changes to account numbers as data maintenance actions and shall not assess tax service or escrow setup fees as a result of account number changes.

Account number changes shall be processed using electronic data transmission containing, at a minimum, the prior account number, new account number, applicable tax service identification number, and borrower name. The Contractor shall accept the method of transmission determined by RD to be most advantageous.

Notices of delinquent taxes on non-escrowed accounts and tax bills on escrowed accounts shall reflect the updated account number within thirty (30) calendar days of RD providing the revised information.

The Contractor shall provide RD with a listing of records that are unmatched or identified as incorrect. RD will provide corrected data within thirty (30) calendar days. The Contractor shall update all affected records and reflected tax documentation within thirty (30) calendar days of receipt of corrected data.

6.2.5 Transition Oversight and Acceptance

Transition-in and transition-out activities shall be subject to Government oversight by the Contracting Officer (CO) and Contracting Officer’s Representative (COR).

Successful completion of transition activities and stabilization of escrow services shall be subject to Government concurrence, based on verification of data accuracy, system integration, and continuity of escrow operations.

6.3 Escrow Services

The Contractor shall perform escrow administration and insurance loss claims processing, including tax and insurance payments, escrow analysis, and loss claim disbursements, in compliance with applicable laws and Agency requirements.

6.4 Tax Services

6.4.1 Tax Line Establishment

The Contractor shall establish tax lines for all escrowed and non-escrowed loans, including required research and account notation. Tax lines shall be established within five (5) calendar days of receipt of loan closing documentation.

6.4.2 Payment of Taxes

The Contractor shall pay all real estate tax bills in accordance with the Tax Business Rules Document. All paid and unpaid tax bills shall be imaged and provided to RD for inclusion in the document repository.

The Contractor shall provide RD with a daily tax payment file and report, including payment details, rejected payments, and refunds by account number, in a format compatible with RD’s Sagent/Sagent LoanServ system. RD will reconcile the report and disburse electronic payment for the prior business day’s activity.

6.4.3 Delinquent Tax Search and Resolution

The Contractor shall conduct delinquent tax searches on all existing loans and shall:

1. Identify delinquent taxes, including penalties, interest, and costs

1. Provide a monthly delinquent tax report to RD

1. Pay delinquent taxes, when required, within three (3) business days

1. Certify monthly that all delinquent taxes have been identified

1. Conduct tax searches no later than thirty (30) days prior to the next tax cycle or one hundred eighty (180) calendar days after receipt of loan data, whichever occurs first

1. Notify RD of pending tax sales or forfeitures and assume responsibility for forfeiture if RD is not timely notified

6.4.4 Liability for Tax Errors and Penalties

The Contractor shall be liable for tax penalties, interest, loss of discount, and incorrect tax payments on escrowed loans under tax service when such costs result from failure to make timely or accurate payments.

RD may offset amounts for which the Contractor is determined liable against Contractor invoices. RD will cooperate with the Contractor in recovery efforts from taxing authorities when incorrect base tax amounts are paid.

6.4.5 Liability for Real Estate Forfeiture

The Contractor shall be responsible for losses incurred by RD resulting from real estate forfeiture due to nonpayment of taxes on loans under tax service, including converted loans and new originations.

Liability shall apply only when the Contractor failed to provide written notice to RD of delinquent taxes and pending sale or forfeiture at least thirty (30) calendar days in advance. The Contractor shall cooperate with RD in efforts to redeem properties subject to tax sale or forfeiture.

6.5 Insurance Services

6.5.1 Insurance Administration

The Contractor shall review and validate insurance documents in accordance with Business Rules and shall pay insurance premiums no later than twenty-one (21) calendar days prior to the renewal date. Electronic payment methods shall be used to the maximum extent practicable.

The Contractor shall track insurance renewals, obtain current policies, and document at least three (3) documented attempts on separate days to secure coverage prior to renewal. The Contractor shall process exceptions, returned payments, erroneous payments, and RD-generated tasks, and shall transmit daily insurance data files and account notes to ensure RD systems reflect current escrow status.

6.5.2 Lender-Placed Insurance

When RD holds a mortgage interest and acceptable borrower coverage is not in force, the Contractor shall obtain lender-placed insurance until RD’s interest is satisfied or acceptable proof of coverage is received.

Lender-placed insurance shall:

1. Cover all structures against applicable hazards

1. Exclude personal liability and contents

1. Provide replacement cost coverage (mobile homes: replacement cost only) Deductibles exceeding $750 for Single-Family Housing or $1,500 for Multi-Family Housing require Government approval. Policies shall remain in force through renewal and claims shall be honored if the contract is not renewed or is terminated, unless cancellation is permitted by underwriting rules with appropriate notice.

6.5.3 Coverage Requirements

The Contractor shall obtain lender-placed coverage in accordance with RD Business Rules, including:

1. Hazard / Windstorm / Mobile Home Coverage: Required when principal balance thresholds are met; coverage shall be issued for last known coverage amount or unpaid principal balance plus fees if unknown.

1. Flood Coverage: Required when balance thresholds are met; coverage shall not exceed FEMA maximums.

6.5.4 Coverage Lapse Resolution

The Contractor shall provide immediate coverage upon lapse when insurance is required. Properties shall be placed on automatic binders for:

1. Up to seventy (70) days for hazard, windstorm, or mobile home coverage

1. Up to sixty (60) days for flood coverage No premiums or binder fees shall be charged during the binder period. If coverage is not obtained, a policy shall be issued upon binder expiration. The Contractor shall have the capability to backdate lender-placed coverage up to two (2) years.

6.5.5 Notifications and Compliance

The Contractor shall issue borrower notifications regarding lender-placed insurance in compliance with 12 CFR 1024.37, using RD-approved templates on RD letterhead. Borrower information shall be used solely for notification purposes and shall not be sold or reused.

The Contractor shall monitor and comply with all applicable Federal and State laws governing lender-placed insurance and related notifications.

6.5.6 Premiums, Refunds, and Reporting

Premium rates shall follow approved regional or state rates. No commissions shall be paid to or retained by the Government. Premium refunds shall be issued to RD within three (3) business days of policy termination and prorated on a straight-line, 365-day basis. The Contractor shall provide monthly loan-level refund reports.

6.5.7 Inspections and Disbursements

The Contractor shall conduct property inspections for lender-placed and borrower-preferred policy claims and shall provide photographic evidence and written inspection reports.

The Contractor shall process non-EDI insurance payments, maintain controlled check stock, provide daily check usage reports, and supply digital images of returned or rejected checks. The Contractor shall mail required insurance, renewal, flood determination, and loss claim correspondence and provide digital copies to RD.

6.5.8 Flood Determination and Monitoring

The Contractor shall determine flood zone status for new and existing loans, including ordering flood zone determinations when required and obtaining flood insurance coverage in accordance with RD Business Rules.

The Contractor shall provide life-of-loan monitoring of FEMA Special Flood Hazard Area (SFHA) designations for loans subject to flood determination fees. The Contractor shall monitor existing loans for flood zone changes and provide updated flood zone information to RD monthly.

6.6 Loss Claims Processing

6.6.1 General Requirements

The Contractor shall protect RD’s security interest by administering insurance loss claims to ensure covered damages are properly repaired and paid. Contractors shall be paid in full, and all applicable liens satisfied prior to release of final funds to the borrower. Loss claims shall be administered in accordance with RD HB-3550-2, Chapter 3, Section 3, and Form RD 1924-A. Functions assigned to the Servicing Office and Field Office under these authorities shall be performed by the Contractor.

When required, the Contractor shall review adjuster worksheets, repair contracts, and inspection reports to ensure compliance with RD loss claim procedures. All loss claim documentation and borrower correspondence shall be transmitted electronically and maintained in RD’s document repository.

6.6.2 Loss Drafts and Processing

The Contractor shall complete required inspections, review adjuster worksheets, and issue loss drafts payable to RD within thirty (30) calendar days of loss notification, except for Federally declared disaster areas, which shall be handled on a case-by-case basis. The Contractor shall provide a monthly report identifying claims in process for more than thirty (30) days, including the cause of delay.

6.6.3 Claims Negotiation and Filing

Claims negotiations shall be conducted between the borrower and the Contractor. RD involvement shall occur only upon request or in special circumstances. RD may submit claims directly in cases of borrower neglect, bankruptcy, or foreclosure and may submit supplemental claims when property access delays damage assessment. The Contractor shall not impose a filing deadline for loss claims that is less than three hundred sixty-five (365) days from RD’s notification of potential loss.

6.6.4 Reporting and System Access

The Contractor shall provide RD with access to an online loss claim tracking system that includes claim status, loss draft information, payment amounts, check numbers, and case history. The Contractor shall provide the following reports:

1. Claims in Process Report: Monthly, identifying claims exceeding 30 days

1. Claims Held Report: Monthly, including corresponding bank statements

1. Claims Paid Report: Quarterly, including borrower ID, claim number, and payment date

1. Multiple Claims Report: Semi-annually, identifying borrowers with more than one claim

1. Lender-Placed Claims Tracking Report: As directed by the COR, in Microsoft Excel format

6.7 Escrow Analysis

The Contractor shall perform escrow account analyses in compliance with the Real Estate Settlement Procedures Act (RESPA) and applicable USDA Rural Development handbooks.

6.7.1 Annual Escrow Analysis

The Contractor shall prepare and deliver annual escrow disclosure statements to borrowers with escrow accounts at least thirty (30) calendar days prior to the effective date of any payment change. Annual escrow analyses shall be performed in accordance with RD HB-3550-2, Chapter 3, Section 3.9, including requirements for collection of shortages and refunding of overages.

6.7.2 Ad Hoc Escrow Analysis

The Contractor shall perform escrow analyses upon request by RD and provide results within timeframes specified by the Government.

6.7.3 Escrow Data Transmission

The Contractor shall transmit daily automated escrow data files sufficient to update escrow balances, transactions, and projections in RD’s loan servicing system.

6.8 Processing Refunds and Returned Payments

The Contractor shall refund returned escrow funds to RD no later than the next business day following rejection. The Contractor shall provide detailed refund information through an automated file compatible with RD’s Sagent/Sagent LoanServ system.

6.9 Mail, Fax, Email, and Web-Based Processing

The Contractor shall establish and maintain a post office box for receipt of RD escrow-related mail, including tax, insurance, and loss claim documents. Escrow-related correspondence shall be opened, sorted, processed, imaged, and transmitted to RD in accordance with the Business Rules Document. Non-escrow-related materials shall be bundled and forwarded to RD on a bi-weekly basis. Borrower mortgage payments received by the Contractor shall be forwarded to RD via overnight courier daily.

The Contractor shall maintain dedicated fax numbers and email addresses for escrow-related communications, available twenty-four (24) hours per day, seven (7) days per week. The Contractor shall maintain a secure web-based interface available 24/7 that allows borrowers, insurers, and taxing authorities to update insurance information and allows RD and borrowers to access escrow and loss claim information.

6.10 Call Center Operations

The Contractor shall operate and manage an escrow call center on behalf of RD. Call center hours shall be Monday through Friday, 6:00 a.m. to 6:00 p.m. Central Time. All borrower calls shall be recorded, categorized by call type, and documented with resolution notes accessible to RD and compatible with updates to RD’s Sagent/Sagent LoanServ system. The Contractor shall maintain dedicated toll-free telephone and fax numbers for use by borrowers, insurers, taxing authorities, and RD.

6.11 Escrow Reserves and Funding

RD will fund escrow reserves sufficient to support daily disbursements. The Contractor shall submit a daily escrow funding request for RD approval. Funding requests shall be balanced to supporting data files prior to disbursement.

6.12 Program Management Support

The Contractor shall provide program management support services to ensure effective oversight, coordination, and performance of escrow services under this contract. Program management services shall include planning, financial management support, risk management, and performance monitoring.

At a minimum, the Contractor shall:

1. Develop, maintain, and execute an integrated Program Management Plan (PMP)

1. Track milestones, schedules, and deliverables

1. Maintain risk and issue logs

1. Implement and maintain a Quality Control Plan (QCP) covering the escrow scope of this PWS

1. Provide routine and ad hoc reporting as required by the Government

1. Promote secure information exchange with RD and authorized stakeholders The Contractor shall provide RD with secure, read-only, web-based access to loan and property information, including inspections, legal and appraisal documents, financial data, and other Task Order-specified information. The system shall support data download in standard formats (PDF, CSV, Excel, JPEG), allow upload of Government approval documentation, support at least one hundred (100) concurrent Government users, and be compatible with current RD-supported web browsers. The Contractor shall provide training and demonstrations for Government users and shall enable RD to generate on-demand, ad hoc reports at the loan, property, and summary levels.

Reporting and Deliverables. Reports, data files, and other outputs required under Section 6 shall be submitted as deliverables in accordance with Section 7, Deliverables and Schedule, and are subject to Government inspection and acceptance.

7. Deliverables and Schedule Performance of work under this contract will be determined at the Task Order (TO) level by the TO Contracting Officer’s Representative (COR). Deliverables will be specified in individual TOs and shall be consistent with the deliverable types identified in this section.

All deliverables are subject to Government review and acceptance in accordance with the inspection and acceptance procedures specified in the applicable TO. Acceptance of a deliverable does not relieve the Contractor of responsibility for meeting the performance requirements, standards, or Acceptable Quality Levels (AQLs) defined in this PWS.

The Contractor shall coordinate with the IDIQ Contracting Officer (CO) and COR to resolve any quality or requirement deficiencies associated with deliverables at no additional cost to the Government.

Section 7 — Deliverables Table

Deliverables identified in this section are contract-level deliverables unless otherwise specified. Task Orders may scale the frequency or volume of deliverables based on scope but shall not eliminate required deliverables when the associated services are included in the Task Order.

8. Quality Control and Assurance The Contractor shall establish, implement, and maintain an effective Quality Control Plan (QCP) to ensure all services are performed in accordance with this PWS and applicable Task Orders. The QCP shall define processes to identify, prevent, correct, and prevent recurrence of deficient performance.

The Contractor shall submit the initial QCP and any subsequent revisions to the Contracting Officer (CO) and Contracting Officer’s Representative (COR) for Government review and written acceptance. Revisions to the QCP shall be submitted within five (5) business days of the change.

The Contractor shall designate an Escrow Quality Control Manager with knowledge of USDA Rural Development escrow servicing requirements. The Quality Control Manager shall be responsible for oversight of quality assurance activities and coordination with the Government on quality-related matters.

The Government will evaluate Contractor performance under this contract and all associated Task Orders in accordance with the Government’s Quality Assurance Surveillance Plan (QASP). The QASP will be reviewed with the Contractor at the contract kick-off meeting. The Government may require submission of QCPs or quality control documentation at the Task Order level as necessary to support performance oversight.

9. Performance Monitoring RD shall evaluate the sub-servicing company’s performance under this contract to include all Task Orders in accordance with the Government’s QASP, which will be presented to the Awardee(s) at the contract kick-off meetings. The QASP is primarily focused on what the Government must do to ensure that the contractor has performed in accordance with the performance standards.

Performance Requirements Summary (PRS)

10. Standards of Conduct The Contractor shall maintain appropriate standards of employee competency, professionalism, and conduct, including procedures for disciplinary action when necessary. The Contractor shall immediately remove from performance under this contract any employee who is under the influence of alcohol, illegal drugs, or other incapacitating substances during duty hours, or whose conduct, appearance, or behavior discredits the Government or interferes with contract performance.

The Government reserves the right to require removal of any Contractor employee whose actions endanger persons or property, compromise security, or otherwise impede the performance of required services. The Contracting Officer (CO) will notify the Contractor of the basis for removal or withdrawal of facility access.

11. Travel Travel under this contract is not anticipated. When required, travel shall be authorized only under the applicable Over and Above Contract Line Item Number (CLIN) and approved in advance by the CO and Contracting Officer’s Representative (COR).

The Contractor shall submit written travel requests at least thirty (30) calendar days prior to the proposed travel. Travel costs shall be reimbursed at actual allowable costs as specified in the applicable Task Order. Rural location alone shall not constitute justification for travel.

12. Key Personnel The Contractor shall identify, in writing, all Key Personnel proposed for performance under this contract and provide documentation of relevant experience, education, and specialized training. The Contractor may designate an alternate point of contact (POC) for each Key Personnel position.

The Project Manager and any approved alternate shall have full authority to act on behalf of the Contractor in all matters related to daily contract performance.

12.1 Key Personnel Substitutions

The Contractor shall not substitute or replace Key Personnel without prior written approval of the Government, except in cases of law, illness, death, resignation, or termination of employment. The Contractor shall notify the Government within ten (10) calendar days of such an event and shall provide the maximum practicable advance notice of any proposed substitution.

For each proposed substitution or replacement, the Contractor shall submit:

1. A written explanation of the circumstances necessitating the substitution

1. A complete résumé for the proposed substitute

1. Any additional information requested by the Government Proposed substitutes shall possess qualifications equal to or exceeding those of the individual being replaced. Substitutions or replacements shall not result in an adjustment to contract pricing.

12.2 Minimum Qualifications

The Contractor shall ensure that Key Personnel meet, at a minimum, the qualifications specified below.

Project Manager — The Project Manager shall serve as the primary authority for contract execution and quality oversight and shall coordinate with the Government Program Office on contract administration, invoicing, and technical matters. The Project Manager shall have signature authority for the Contractor and a minimum of fifteen (15) years of experience managing contracts of comparable size and complexity.

Chief Legal Counsel — The Chief Legal Counsel shall serve as the primary point of contact for legal matters and coordinate with the USDA Office of General Counsel, the Department of Justice, and the Government Program Office. The individual shall possess a Juris Doctor degree, be licensed to practice law and a member in good standing of at least one state bar, and have a minimum of ten (10) years of real estate law experience.

Relationship Manager — The Relationship Manager shall serve as the primary day-to-day point of contact for escrow servicing operations and shall support operational decision-making. The individual shall have a minimum of ten (10) years of experience performing escrow-related functions.

Business Manager — The Business Manager shall coordinate with the Government on escalated operational issues not resolved at the Relationship Manager level. The individual shall have a minimum of ten (10) years of experience managing escrow operations.

13. Security Requirements The Contractor shall ensure that all personnel performing work under this contract who require access to sensitive information, including Personally Identifiable Information (PII), meet all applicable security eligibility requirements for access to USDA information systems or data. All work performed and all data generated, processed, or stored under this contract shall be conducted within the United States.

13.1 Confidentiality and Nondisclosure

Information provided by Rural Development (RD) or collected by the Contractor on RD’s behalf shall be used solely for purposes of performing this contract and shall not be disclosed except as necessary for contract performance. The Contractor shall safeguard the confidentiality of all such information and shall ensure that employees and subcontractors access information only to the extent authorized.

The Contractor shall notify all employees and subcontractors in writing of their confidentiality obligations and shall remain responsible for their compliance.

13.2 Records Sanitization and Disposition

At contract closeout or expiration, and at the Government’s direction, the Contractor shall certify to the Contracting Officer (CO) and Contracting Officer’s Representative (COR) that all Government records—electronic and paper—have been properly returned, destroyed, or sanitized. Media sanitization shall be performed in accordance with NIST Special Publication (SP) 800-88, Guidelines for Media Sanitization.

13.3 Personnel Security and Access Requirements

Prior to performing work under this contract, Contractor personnel shall complete a Public Trust clearance process, including required training. The level of access granted and the duties performed will determine whether a higher investigative requirement is necessary. The Contractor shall ensure that all required investigations are initiated promptly and completed within thirty (30) calendar days of initiation.

Personnel for whom required background investigations or security determinations have not been favorably completed within thirty (30) calendar days of initiation shall not be permitted to access Government facilities, systems, or data, or perform work under this contract that requires such access, unless otherwise authorized in writing by the Contracting Officer.

14. Sub-Contracting Requirements

14.1 General

The Contractor may subcontract portions of the work under this contract; however, the Contractor shall remain fully responsible for the performance, quality, timeliness, and compliance of all subcontracted services as if performed by the Contractor. Subcontracting shall not relieve the Contractor of any contractual obligations, performance standards, or liability under this contract or any Task Order.

14.2 Approval and Disclosure

The Contractor shall identify all proposed subcontractors in its proposal or, if identified post-award, shall obtain written approval from the Contracting Officer (CO) prior to subcontractor engagement. The Contractor shall notify the CO and COR in writing of any proposed subcontractor changes, additions, or removals.

14.3 Flow-Down Requirements

The Contractor shall ensure that all applicable contract requirements are flowed down to subcontractors, including but not limited to performance standards, security and privacy requirements, records management, Quality Control Plan (QCP) requirements, and all applicable federal, state, and local laws and regulations.

14.4 Prohibited Subcontracting Activities

Subcontractors shall not have direct contractual relationships with USDA Rural Development, shall not represent themselves as agents of the Government, and shall not make policy determinations or communicate official determinations to borrowers unless expressly authorized in writing by the CO.

14.5 Security and Access

Subcontractor personnel requiring access to Government systems, data, or facilities shall meet the same security, suitability, and access requirements as prime contractor personnel. No subcontractor personnel may perform work requiring access to Government systems or data until all required investigations and approvals are completed.

14.6 Small Business Utilization

The Government encourages the use of small businesses, including small disadvantaged, women-owned, HUBZone, veteran-owned, and service-disabled veteran-owned small businesses, consistent with FAR Part 19, provided such use does not adversely impact performance, security, or compliance.

14.7 Sub-Contracting Cost Transparency

The Contractor shall maintain auditable financial records identifying total cost per account and cost per account by Task Order, service category, and subcontractor, if applicable. Cost data shall be traceable to source systems and sufficient to support Government review, trend analysis, audit, and price reasonableness determinations.

15. Government Furnished Equipment and Information Unless otherwise directed by the Government, all electronic information exchange under this contract shall occur through a secure, Government-designated SharePoint environment. Access to Government systems and repositories requires USDA eAuth registration. The Contractor shall coordinate eAuth onboarding and access requirements with the COR and comply with all applicable security and access controls.

16. Hours of Operation Except when otherwise authorized by the COR, all work shall be performed during normal industry-standard business hours and in compliance with applicable state and local laws governing work at property locations.

The COR may request temporary adjustments to work schedules to address emergent operational needs, provided such requests do not require overtime unless expressly authorized. When practicable, the Government will provide at least twenty-four (24) hours’ advance notice of schedule adjustments; however, shorter notice may be provided when operational circumstances require.

17. Recognized Holidays The Government observes the following Federal holidays:

Independence Day

In addition, the Government observes any day designated by Federal statute, Executive Order, or Presidential Proclamation.

Observance of Federal holidays or Government office closures shall not, by itself, constitute grounds for an extension of the period of performance (POP) or entitlement to additional compensation, except as otherwise provided in the contract.

18. Technical Instruction Performance under this contract may be subject to verbal or written technical instructions issued by the Contracting Officer (CO) or the Contracting Officer’s Representative (COR).