Draft Performance Work Statement (PWS) Risk Management Analysis Services.pdf

Performance Work Statement (PWS)

Risk Management Analysis Services

9/1/2023

Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.4 Description of Services

1.5 Non-Personal Services

1.6 Period of Performance

1.7 Place of Performance

1.8 Hours of Operation

1.9 Special Qualifications

1.10 Post Award/Kickoff Conference

1.11 Status Meetings

1.12 Contractor Travel

1.13 Transition In

1.14 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

4.7.1 Quality Control Plan

5 Specific Tasks

5.1 Risk Management Analysis Tool

5.2 Train and Support Account Executives, OHP Management, and Other HUD Users

5.3 Fulfill Data Request and Conduct Special Analysis for OHF

5.4 Fulfill Data Request and Conduct Special Analysis for ORCF

5.5 Transition Support

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary

8 Related Documents

Performance Work Statement (PWS)

Risk Management Analysis Services

Vision Statement

The vision of this requirement is to obtain contractor support to analyze the Department of Housing and

Urban Development’s (HUD) Office of Healthcare Programs’ (OHP) portfolio and provide comprehensive financial risk management services.

1 General Information

1.1 Introduction

HUD OHP requires contractor support to provide consulting services in support of its risk management activities. By obtaining these services, HUD will be better able to manage its $40 billion portfolio of insured hospital and residential care facility loans and accomplish HUD's mission of improving the way

HUD does business.

1.2 Background

OHP administers FHA’s programs that provide mortgage insurance to healthcare facilities to support access to affordable financing options to fund capital projects, such as new construction or modernization projects. OHP program offices include the Office of Hospital Facilities (OHF) and the Office of

Residential Care Facilities (ORCF). With an outstanding portfolio balance of nearly $40 billion, managing risk is an important focus of OHP. OHP mitigates risk upfront during the underwriting process and, after loan closing, through the identification and monitoring of troubled properties. OHP’s risk management efforts include a robust set of actions to reduce claim payments.

OHF currently manages its portfolio with the assistance of a contractor utilizing commercial-off-the-shelf

(COTS) business risk tools to analyze the portfolio and deliver comprehensive financial risk management services. The current service provides significant asset management enhancements including advanced financial analysis, analysis of cash flows, and probability of default analysis. OHP seeks continued contractor support to assist in its risk management activities for both OHF and ORCF.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

• HUD Handbook 4615.1 REV-1, Hospital Mortgage Insurance Program:

https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh/4615.1

• HUD Handbook 1325.1, Privacy Act Handbook:

https://www.hud.gov/program_offices/administration/hudclips/handbooks/admh/1325.1

• HUD Handbook 2400.25, Information Technology Security Policy, Revision 4 (and subsequent revisions): http://hudatwork.hud.gov/HUD/cio/doc/ITSEC_2400_5

• HUD Handbook 732.3, Personnel Security/Suitability

• Statement on Standards for Attestation Engagements No. 16 (SSAE 16) Reporting on Controls at a Service Organization

• OMB Circular A-123, Management’s Responsibility for Internal Control

• OMB Circular A130, Management of Federal Information Resources, Appendix III, Security of

Federal Automated Information Resources

• Homeland Security Presidential Directive 12 (HSPD12)

• OMB Memorandum M-05-24, Implementation of Homeland Security Presidential Directive

(HSPD) 12

• OMB Memorandum M-03-22, OMB Guidance for Implementing the Privacy Provisions of the E-

Government Act of 2002

• OMB Memorandum M-99-20, Security of Federal Automated Information Resources

• OMB Memorandum M-06-15, Safeguarding Personally Identifiable Information

• OMB Memorandum M-06-16, Protection of Sensitive Agency Information

• OMB Memorandum M-06-19, Reporting Incidents Involving PII

• OMB Memorandum M-06-20, Reporting Instructions for the Federal Information Security Act and Agency Privacy Management

• OMB Memorandum for Chief Information Officers:

https://www.fismacenter.com/fedrampmemo.pdf

• Federal Information Processing Standards (FIPS) Publications http://csrc.nist.gov/publications/PubsFIPS.html

• Federal Information Processing Standards 201 (FIPS 201), Sections 2.1 and 2.2

• NIST Special Publications (800 Series) http://csrc.nist.gov/publications/PubsSPs.html

• Federal Information Security Management Act (FISMA): https://www.cisa.gov/federal-information-security-modernization-act

• Federal Information Systems Controls Audit Manual (FISCAM, Government Accountability

Office): https://www.gao.gov/fiscam

• Statements of Federal Financial Accounting Concepts and Standards, Federal Accounting

Standards Advisory Board (FASAB)

• Authoritative Documents from Accounting and Auditing Policy Committee Processes

• Generally Accepted Government Auditing Standards (GAGAS)

1.4 Description of Services

OHP requires risk management services and access to annual subscription-based COTS business risk tools to enhance the underwriting and asset management decision making process for OHF and ORCF

Account Executives.

These services and tools will also be useful for the Office of Risk Management to ensure that all facilities are of acceptable risk, and to monitor the entire portfolio of OHP exposures using a single platform.

The Contractor shall be required to furnish all the necessary services, qualified personnel, materials, equipment, not otherwise provided by the Government. Services and capabilities include:

o Financial Statement Spreading o Financial Modeling o Portfolio Risk Analysis and Monitoring o Database Maintenance o Training and Support o Custom Ad Hoc Analysis and Reports

In addition, future services may include possible automated uploading of ORCF data, in which case a modification will be negotiated to complete the additional work.

Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and Deliverables.

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the

Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the

Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently

Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for one (1) 12-month base year and four (4) 12-month option years.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor facility.

1.8 Hours of Operation

N/A

1.9 Special Qualifications

N/A

1.10 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post

Award Conference with the Contractor within ten business days after contract award. The Contracting

Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The Contracting Officer, Contracting Officer’s Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer will apprise the Contractor of how the

Government views the Contractor's performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award

Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the

Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Washington, DC. All other travel will be reimbursed on a cost reimbursable basis with the only allowable costs being those expressly provided for in the Federal Travel Regulation; no profit, fee, or indirect costs will be paid beyond the reimbursements authorized in the Federal Travel Regulation.

1.13 Transition In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 60-day

Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the 60-day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the

Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

2 Definitions and Acronyms

2.1 Definitions

Business/Work Days - Every official work day of the week which are days between and including

Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the week.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the

Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government.

Contracting Officer's Representative (COR) - An employee of the U.S. Government appointed by the

Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does

NOT have the authority to change the terms and conditions of the contract.

Defective Service - A service output that does not meet the standard of performance associated with the

Performance Work Statement.

Deliverable Anything that can be physically or electronically delivered but may include non-manufactured things such as meeting minutes or reports.

Government Furnished Property (GFP) - Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard - The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Physical Security - Actions that prevent the loss or damage of Government property.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contract’s quality requirements.

Quality Assurance Surveillance Plan (QASP) - A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

Quality Control (QC) - All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Service Contract - A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Subcontractor - Any person , other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Subordinate Contracting Officer Representative (SCOR) - (Secondary COR) The person appointed on a contract who has a similar level of experience and the same certification level as the Primary COR on a contract action.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level

ARAMS - Automated Renewal and Amendment System

BAA - Business Area Analysis Study

CBT - Computer-Based Training

CCB - Change Control Board

CCMB - Configuration Change Management Board

CMMI - Capability Maturity Model Integration

CFO or OCFO - Office of the Chief Financial Officer of HUD

CFR - Code of Federal Regulations

CIO or OCIO - Office of the Chief Information Officer of HUD

CO - Contracting Officer

COR - Contracting Officer's Representative

COTS - Commercial Off-the-Shelf

CPO - Office of the Chief Procurement Officer of HUD

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

GAO - U.S. Government Accountability Office

HUD - U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

HUD/ISG - Internet Services Group within the Telecom Processing Division

HUD Web – HUD’s Intranet Web Site and related Web pages.

IG or OIG - Inspector General (Office of)

IT - Information Technology

IV&V - Independent Validation and Verification

LOCCS - Line of Credit Control System

OCPO - Office of the Chief Procurement Officer

OIG - Office of Inspector General

OMB - Office of Management and Budget

PL - Public Law

PM - Project Manager

POC - Point of Contact

PPM - Project Planning and Management

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SCOR - Subordinate Contracting Officer Representative

SF - Standard Form

TBD - To be determined

U.S.C. - United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property

(GFP) in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

No Government services will be provided.

3.2 Facilities

No facilities will be provided by the Government.

3.3 Equipment

No equipment will be provided by the Government.

3.4 Materials

Copies of required materials may be provided to the Contractor in hard copy or soft copy. Materials may include loan documentation and related data. All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

3.5 Quality Assurance (QA)

The contractor is solely responsible for ensuring that its performance meets all performance standards and requirements. The Government may inspect the contractor's performance in any reasonable way during the period of performance.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish all facilities required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.2 Equipment

The Contractor shall furnish all equipment required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.3 Material

The Contractor shall furnish equipment and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S.

Government. These files/results must be surrendered to the COR upon request or completion of the contract.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager. These

Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key

Personnel.”

The Contract/Project Manager and alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance, and direction from the COR, PM, and CO per HUDAR 2452.237-73, "Conduct of Work and Technical

Guidance" and shall be allocated enough hours to the requirement to ensure successful performance.

These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves as contractors/subcontractors on any attendance sheet or any coordination documents they may review.

Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or at a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government. The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality

Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 Specific Tasks

5.1 Risk Management Analysis Tool

The Contractor shall provide a subscription-based commercial-off-the shelf (COTS) risk management analysis tool to assist OHF during the base period and each subsequent option years. The Contractor’s

COTS tool shall be able to do the following:

5.1.1 Collect Administrative, Financial and Utilization Data

• Provide the capability to create, edit, and delete hospital administrative, financial, and utilization information.

• Import existing historical data.

• Facilitate and support ongoing data entry from Account Executives.

• Minimize data entry errors.

• Update database data in real-time.

5.1.2 Analyze and Report Quarterly and Annual Financial and Utilization Data

• Provide database search capabilities.

• Spread hospital financial and non-financial data (balance sheet, profit/loss statements, ratios, cash flows, and utilization statistics).

• Build and model financial projections.

• Model financial statement data for underwriting new deals and managing existing credits.

• Model and analyze Uniform Credit Analysis (UCA) Cash Flow for both historical data and future projections.

• Benchmark performance to comparable hospitals and regions.

• The Contractor shall provide a not-for-profit hospital industry-specific probability of default analysis and not-for-profit hospital industry-specific shadow ratings.

• Develop risk rating analysis on individual obligors and portfolio.

• Run multiple projection scenarios (i.e., feasibility, budget, Affordable Care Act impact, etc.) and perform sensitivity analysis based on changing economic and legislative issues.

• Allow the creation and analysis of family entities based on parent, subsidiary, holding companies, etc.

• Provide/deliver manual and routine automated reports on financial and non-financial statistics and ratios.

5.1.3 Automate Workflows

• Utilize the COTS tool’s functionality to automate underwriting and asset management workflows in the base year of the contract. Implement a rules-based process with defined staff roles, staff responsibilities, and best practices to improve the underwriting process. This functionality is to be completed and delivered by the end of the base period of performance.

5.1.4 Develop an Integrated Credit Memo Template

• Develop a template within the COTS tool during the base year of the contract, which automatically integrates the data in the tool into a customized credit memo. This task is to be completed and delivered by the end of the base period of performance.

5.1.5 Automate Covenant Monitoring Process

• Utilize the COTS tool’s features to automate the covenant monitoring process in the second option year of the contract. Implement a process to monitor and manage financial and non-financial covenants. This feature is to be initiated during the second option year of performance and the feature will be supported in each remaining option year.

5.1.6 Provide System Administration and Data Maintenance

• Maintain analytic tools and databases.

• Provide flexible data storage capabilities.

• Ensure system scalability to accommodate any potential future program or user growth.

• Export financial data to HUD’s Online Property Integrated Information Suite (OPIIS) to manage individual financial information on borrowers, counterparty risk and the portfolio consistent with

Multi-Family and Assisted Living programs.

• Ensure system compatibility with business intelligence software used at HUD such as Oracle and

SAS.

• Provide security and technical controls outside of HUD’s firewall. It is expected that 75 HUD employees in multiple geographic locations will access the tools.

• Possess the flexibility to possibly manage the future data requirements of the Office of

Residential Care Facilities (Section 232). Deploying this flexibility will require a modification of the contract to pay for any additional expenses related to these services.

• The Contractor is required to implement and maintain compliance with information security controls and safeguards satisfying the control objectives of HUD, Office of Management and

Budget (OMB), National Institute of Standards and Technology (NIST), Federal Information

Security regulations and requirements and Federal Information Systems Controls Audit Manual

(FISCAM) across the system.

• All COTS tools are subject to monitoring consistent with applicable regulations, agency policies, procedures, and practices.

Performance Standards

a) Standard: The Contractor shall provide a reliable risk management tool. To allow for configuration and implementation, this task is to be completed and delivered by the end of the first quarter of the base period.

AQL: Zero deviation from the standard.

b) Standard: Reports on financial and non-financial statistics and ratios are accurate and free from errors.

AQL: Zero deviation from the standard.

Deliverables

A003 Reports on financial and non-financial statistics and ratios

A004 Automated Workflows

A005 Integrated Credit Memo Template

A006 Automated Covenant Monitoring Process

5.2 Train and Support Account Executives, OHP Management, and Other HUD Users

The Contractor shall prepare a User Guide and training materials (both of which must be acceptable to

HUD) and will provide initial staff-led training for Account Executives, OHF management and other

HUD users prior to the deployment of the COTS tool via a variety of classroom, electronic, and self-study techniques. After the initial training, the Contractor shall provide ongoing annual training for each option year of the contract. The User Guide shall be updated and revised annually.

The Contractor shall develop and maintain efficient and effective methods for providing ongoing guidance, training, and support to Account Executives, OHP management, and other HUD users.

Performance Standards

a) Standard: The contractor shall train and support HUD staff.

AQL: Zero deviation

A007 Annual User Training and an Annually Revised/Updated User Guide

5.3 Data Request and Assist with Special Analysis for OHF

The Contractor shall assist with ad hoc special analyses upon request of the project manager for OHF.

The Contactor will use annual financial statement data, program data, and other available data sources to

(a) improve OHF underwriting, asset management, resource management, or portfolio analysis, and/or to

(b) improve methods for analyzing these activities. As an example, past projects have included developing an MRF calculator, developing and refining an internal risk rating methodology, and automating a risk management dashboard.

a) Standard: The Contractor shall prepare ad hoc written reports involving OHF data analysis on topics approved by the Project Manager.

AQL: Zero deviation from the standard.

A008 OHF Ad hoc Written Reports

5.4 Data Request and Assist with Special Analysis for ORCF

The Contractor shall assist with ad hoc special analyses upon request of the project manager for ORCF.

The Contactor will use annual financial statement data, program data, and other available data sources to

(a) improve ORCF underwriting, asset management, resource management, or portfolio analysis, and/or to (b) improve methods for analyzing these activities. As an example, projects might include automating risk surveillance dashboards and integrating multiple internal and external data sets to inform asset management actions.

a) Standard: The Contractor shall prepare ad hoc written reports involving ORCF data analysis on topics approved by the Project Manager.

A009 ORCF Ad hoc Written Reports

5.5 Transition Support

5.5.1 Transition-In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 60-day

Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements to commence full performance of services by the end of the contract Transition-In period.

There will be one Transition-In Period for this contract that will encompass the efforts for both HUD programs prescribed in the PWS.

The Contractor shall perform Transition-In duties such as but not limited to being available for training, providing HUD with an excel spreadsheet containing Contractor personnel names, title, telephone numbers, email address and available days and tour of duty hours.

5.5.2 Transition-Out

The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the

Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures and best practices for loan due diligence and loan closing processes. The Contractor shall provide all reports and completed loan documents on a USB

External drive to the COR and SCOR. The Contractor shall provide an orderly transition of work and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

The Contractor shall develop and provide a Transition-Out Plan which shall outline the process to be used to transition services to the new Contractor. The due date for the plan shall be 90 calendar days prior to the expiration of the contract. The Transition Out period starts 60 days prior to the expiration date of the last option year exercised. At this time, no loan assignments will be assigned to the contractor. There will be one Transition Out Period for this contract that will encompass the efforts for both HUD programs prescribed in the PWS.

a) Standard: The Contractor shall develop and provide a Transition-Out Plan due 90 calendar days prior to the expiration of the contract.

AQL: Zero deviation from the standard

A010 Transition-Out Plan

6 Deliverables

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

Number Name Frequency Quantity

A001 Quality Control Plan Once 1

Relates to Sections 4.7, 4.7.1, and 6.1 Quality

Control Plan

A002 Risk Management Analysis Tool On going 1

A003 Reports on financial and non-financial statistics and ratios monthly 1

A004 Automated Workflows Once 1

A005 Integrated Credit Memo Template Once 1

A006 Automated Covenant Monitoring Process On going

A007 Annual User Training and an Annually

Revised/Updated User Guide

On going

A008 OHF Ad hoc Written Reports As needed 1

A009 ORCF Ad hoc Written Reports As needed 1

A010 Transition-Out Plan Once 1

6.1 Quality Control Plan

The Contractor's QCP shall be delivered with the Contractor's proposal. The QCP shall be submitted to the COR within ten (10) business days when changes are made thereafter. After acceptance of the QCP, the Contractor shall receive the Contracting Officer's acceptance in writing of any proposed change to its quality control system.

6.2 Acceptance Criteria

All deliverables shall be submitted in a draft format agreed upon by the Contractor and the Government.

Upon review and acceptance by the Government, the Contractor shall address all Government comments and submit a final draft within five (5) business days of Government notification.

7 Performance Requirements Summary

The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While some contract requirements may not be listed in the chart below, requirements not appearing on the PRS chart do not negate the

Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and PM may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services.

8 Related Documents

The Contractor shall abide by all applicable regulations, publications, manuals, policies, and procedures in the performance of this contract.

Performance Requirement Summary (PRS)

Statements Standards/AQLs Incentive/Remedy

5.1 Risk Management Analysis

Tool

a) The Contractor shall provide a reliable risk management tool. To allow for configuration and implementation, this task is to be completed and delivered by the end of the first quarter of the base period.

AQL: Zero deviation from the standard

b) Reports on financial and non-financial statistics and ratios are accurate and free from errors.

The Contractor's invoice would be deducted at 0.1% deduction from the associated monthly LIN price which will be assessed each day of non-compliance.

5.2 Train and Support Account

Executives, OHP

Management, and Other

HUD Users

a) The contractor shall train and support HUD staff.

AQL: Zero deviation the associated monthly LIN price

5.3 Fulfill Data Request and

Conduct Special Analysis for OHF

a) The Contractor shall prepare ad hoc written reports involving OHF data analysis on topics the associated monthly LIN price

5.4 Fulfill Data Request and

Conduct Special Analysis for ORCF

a) The Contractor shall prepare ad hoc written reports involving ORCF data analysis on topics the associated monthly LIN price

5.5.2 Transition-Out a) The Contractor shall develop and provide a

Transition-Out Plan due 90 calendar days prior to the expiration of the contract.

AQL: Zero deviation from the standard the associated monthly LIN price