Presolicitation_Conference_FIN.pdf

U.S. Department of Housing Urban Development

Acquisition Strategy

Solicitation Overview

Ms. Paula P. Smith

Contracting Officer

U.S. Department of Housing and Urban Development, GNMA Support Division

Office of the Chief Procurement Officer http://www.hud.gov/

• Award Eligibility

• Key Contractual Aspects

• Special Contract Requirements

• Solicitation

• Evaluation Methodology

• Part I - Technical Proposal

• Part II - Business Proposal

• Break

• Q&A Session

Acquisition Overview

• In order to be eligible for award Offerors are required to meet all solicitation requirements, such as terms and conditions; representations and certifications;

evaluation factor requirements; be an approved Ginnie

Mae Single Family Issuer with a Ginnie Mae Issuer ID number, and be deemed responsible in accordance with FAR Part 9.

Award Eligibility

Key Contractual Aspects

• Solicitation Number: DU100G-12-R-0007

• Anticipated Contract Type

• Multiyear, Multiple Award Indefinite Delivery / Indefinite

Quantity Contract

• In accordance with FAR 52.216-27, the Government may elect to award:

• (1) A single delivery order contract; or

• (2) A single task order contract; or

• (3) Multiple delivery order or task order contracts for the same or similar supplies or services to two or more Offeror’s under this solicitation, unless the Government determines, after evaluation of offers, that only one Offeror is capable of providing the services at the level of quality required.

Key Contractual Aspects

• Draft Contract Line Item Number (CLIN) Structure:

• Transition In (FP)

• Contracts Services (FP)

• Default Services (T&M)

• Loan Servicing (FP)

• Reimbursables (T&M)

• Legal Services (T&M)

• Analytical Research Services (T&M)

• Variable Default Costs (OPTIONAL) (T&M)

• Information Technology- Federal IT Security (FP)

• Transition Out (OPTIONAL) (FP)

• Period of Performance

• Transition In: 6 months

• Contract: 3 year base period plus two (2) one-year option periods

Key Contractual Aspects, cont

• Full and Open Competition

• NAICS: 523110 – Investment Banking and Securities Dealing

($7M)

• Subcontracting plans will be required for Large

Businesses IAW FAR Part 19, Small Business Programs

• HUD is strongly committed to ensuring small businesses, veteran-owned small businesses, service disabled veteran-owned small businesses, HUBZone small businesses, small disadvantaged businesses & women-owned small businesses have maximum opportunities to participate

• To reinforce its commitment, HUD has established a subcontracting goal of up to 55% of the total amount subcontracted

Key Contractual Aspects, cont

• FAR Part 15, Contracting by Negotiation

• Draft SOW posted on FedBizOpps October 9, 2012

• Industry review and input encouraged

• Provide questions/feedback from briefing to CO by deadline 5:00

PM Monday, October 15, 2012

SPECIAL CONTRACT

REQUIREMENTS

• Contractor shall notify the Contracting Officer and GTR in writing whenever it has reason to believe that the total costs of any Work order individually and/or the associated CLIN, when added to all costs previously incurred, will exceed 75% of the “not to exceed” for the work order and/or the associated CLIN within the next 60 days

• Contractor shall not perform any work and may not charge the contract for any work done under the Time and Material line items that exceed the costs for each work order or available funding of the associated CLIN

TIME AND MATERIALS CEILING

NOTIFICATION (WORK ORDERS)

• Contractor is required to notify the Contracting Officer and the GTR in writing when the total amount of the requirements line item reaches 75% of the total funded amount

• If the estimated quantities are increased, the Contractor shall submit a separate notification when 75% of the new estimated amount is reached

• Contractor shall not perform any work and may not charge the contract for any work under the requirements line item above the funded amount in Section B or any revised total amount as the result of modifications to the line item

INDEFINITE QUANTITY –

REQUIREMENTS –

NOTIFICATION OF CEILING

• IAW 17.106-2(c), if the Government determines before award that only the first program year requirements are needed, the Government’s evaluation of the price or estimated cost and fee shall consider only the first year

• IAW 17.106-2(e) award will not be made on less than the first program year requirements

MULTI-YEAR CONTRACTING

• Pursuant to the clause entitled “CANCELLATION UNDER MULTIYEAR CONTRACTS” (FAR 52.217-2), the cancellation ceiling(s) referred to in paragraph (c) of FAR 52.217-2 is as follows:

Year Cancellation Ceiling

Base Year 2 $90,830,000

Base Year 3 $41,990,000

• Note: These are ceilings and the final amounts are determined by negotiating the actual allowable costs as a result of the termination or equitable adjustment

MULTI-YEAR CONTRACTING

• Draft solicitation posted on FedBizOpps Oct 9, 2012

• Source Selection:

• Best value source selection acquisition conducted in accordance with FAR Part 15, Contracting by Negotiation

• Four Factors in descending order of importance

• Factor 1: Technical/Management Approach

• Factor 2: Past Performance

• Factor 3: Subcontracting Plan (applicable to other than small businesses)

• Price/Cost Factor

Solicitation (RFP)

• Section M of solicitation states award will be made to the

Offeror that is deemed responsible in accordance with

FAR 9.104, and whose proposal conforms to the solicitation’s requirements and is judged to represent the best value to the Government

• Best value is represented by the most advantageous offer, price and other factors considered

• Such offer may not necessarily be the proposal offering the lowest price or receiving the highest rating

• A rating of unsatisfactory in any factor will render the entire proposal ineligible for award

• Section L of solicitation instructs offerors to submit specific information needed to evaluate against the criteria in section M of the solicitation

Evaluation Methodology

• Intend to Award Without Discussions

• Government reserves the right to award without discussions

• May conduct discussions if Government determines it is necessary

• If Government elects to open discussions, competitive range may include proposals rated as “Unsatisfactory” at the sole discretion of the Government

• Each factor shall receive a rating of Excellent, Good, Fair, or Unsatisfactory based on the strengths and weaknesses identified relative to the requirements of the factor (may also receive a neutral rating for the Past

Performance & Subcontracting Plan)

• If any of the non-cost/price evaluation factors receives an individual rating of “Unsatisfactory”, the collective overall rating will be “Unsatisfactory”

Evaluation Methodology, cont

PART I – “TECHNICAL

PROPOSAL”

Evaluation Methodology, cont

• Factor 1 – Technical/Management Approach

• Evaluated on the Offeror’s demonstrated ability to serve as

Single-Family and HMBS master subservicer, and the ability to:

• Identify key personnel (skills, education, training and experience); their expertise to perform the requirements; their proposed respective roles and responsibilities as defined in the

Statement of Work and evaluation of the information for this factor required in Section L. The offeror shall also provide resumes of each key personnel proposed

• Demonstrate the Offeror’s vendor management (teaming partner and/or subcontractor) capability

• Detail their change management process and capability

• Address key personnel dependency

• Detail staffing/capacity modeling to manage loans in the various stages of delinquency and default

Factor 1 – Technical/Management

Approach

EXCELLENT GOOD FAIR UNSATISFACTORY

Proposal clearly meets and consistently exceeds …a very low risk of less than satisfactory performance

Proposal meets and generally exceeds … a low risk of less than satisfactory performance

Proposal meets …a moderate risk of less than satisfactory performance

Failed to demonstrate one or more of the

Government’s stated requirements… suggests a highly substantial risk of less than satisfactory performance

• Factor 2 – Past Performance

• HUD will address three components in the following order:

• Currency

• Relevancy

• Quality

• Offerors must have demonstrable experience with full loan servicing support to include:

• Managing issuer defaults

• Special Servicing and HMBS loans

• Servicing current, delinquent and defaulted loans for both pooled and non-pooled mortgage-backed securities

• Bankruptcy and foreclosure services

• Management and disposition of acquired properties

• Preparation and submission of insurance or guarantee claims to FHA, RD, VA and PIH

• Experience must be similar in size, scope, and complexity to the services required in the Statement of Work during the three (3) years from the final solicitation closing date

Factor 2: Past Performance

Overall assessment of the offeror’s past performance reveals a sufficient quantity of highly current, highly relevant and high quality past performance. Offeror is totally compliant with the GNMA program, has no findings from a field review and no active actions against the offeror by

FHA/VA/RD/PIH or their federal state regulators within the last three years.

There is no doubt the offeror will successfully perform the effort required under the contract.

The risk of unsuccessful performance is evaluated as very low.

Little doubt the offeror will successfully perform the effort required under the contract. Offeror is totally compliant with the GNMA program, has findings which have been resolved timely and no active actions against the offeror by

FHA/VA/RD/PIH or their federal state regulators within the last three years.

The performance risk of the offeror is low.

Some doubt the offeror will successfully perform the effort required under the contract. Offeror meets the majority of the compliances with the GNMA program, has findings that are actively being resolved and has an active action against the offeror by

FHA/VA/RD/PIH or their federal state regulators within the last three years.

The performance risk of the offeror is medium.

Substantial doubt the offeror will successfully perform the effort required under the contract. This rating may also be due to the offeror failing to address the factor as required and/or is not compliant with the GNMA program, has findings which are not being addressed from a field review and has more than one active action against the offeror by

FHA/VA/RD/PIH or their federal state regulators within the last three years.

The performance risk of the offeror is high.

NEUTRAL

No relevant past performance record that may be effectively evaluated. (Note that, to obtain this rating, the offeror must specifically address the factor and either state it has no relevant past performance or the submitted past performance must be determined to not be relevant. Failure to address the factor in its entirety does not warrant this rating.

The performance risk of the offeror is neutral.

• Factor 3 – Subcontracting Plan

• HUD has established a subcontracting goal of up to 55% of the total amount subcontracted

• Offerors shall address the manner in which they can achieve this goal

• HUD will consider the Contractor's ability to meet the subcontracting small business participation goal as part of the evaluation for award

• HUD Subcontracting Goals as a percentage of the subcontracted value:

• Small business – UP TO 55%

• Small Disadvantaged Business – 5%

• Women-Owned Small Business – 5%

• Service-Disabled Veteran-Owned Small Business – 3%

• HUBZone Small Business – 3%

Factor 3 – Subcontracting Plan

Offeror’s proposal maximizes by planning to create 55%-50% of subcontracting opportunities for small, small disadvantaged, women owned, HUBZone, Veteran owned and Service

Disabled Veteran Owned small business that provide high quality meaningful work to the small businesses and is likely to be successfully implemented.

Offeror’s proposal provides meaningful quality by planning to create 49% - 45% of subcontracting opportunities for small, small disadvantaged, women owned, HUBZone, Veteran owned and Service

Disabled Veteran Owned small business, but does not optimize the number of subcontracting opportunities, and is likely to be successfully implemented.

Offeror’s proposal provides subcontracting opportunities by planning to create 44% - 39% of subcontracting opportunities for small, small disadvantaged, women owned, HUBZone, Veteran owned and Service

Disabled Veteran Owned small business, but does not optimize the number, quality, or meaningfulness of the subcontracting opportunities, or could have some problems being successfully implemented.

Offeror’s proposal does not maximize subcontracting opportunities or creates 38% or less subcontracting opportunities for small, small disadvantaged, women owned, HUBZone, Veteran owned and

Service Disabled Veteran

Owned small business, and does not subcontract meaningful work to the proposed small businesses or is unlikely to be successfully implemented.

NEUTRAL

The Offeror is not required to submit a small business subcontracting plan under FAR

§ 52.219-9(a).

PART II – “BUSINESS

PROPOSAL”

Price Evaluation Criteria

• Price will be evaluated on the total overall price

• Consists of the total proposed price for:

• Firm fixed price Contract Line Item Numbers (CLINs)

• Time and Material CLINs

• Transition In/Out period

• Basic contract period plus all option periods and optional CLINs

• While cost & pricing data is not required, Government reserves the right to request “information other than cost and pricing data,” to determine the overall total price is fair and reasonable

• Reasonableness of the line item prices proposed will be determined on the basis of adequate price competition by comparing the proposed prices among offers

• Prices will be compared against the Independent Government Cost Estimate to ensure that the price is reasonable for the results to be achieved

Break

TURN IN ALL WRITTEN QUESTIONS

Q&A Session

• Questions

• Write Open Forum questions on the Q&A form and turn at the break

• Q&A Session

• Open Forum questions will be answered during the Q&A session as time allows

• Verbal answers are “Unofficial”

• “Official” Questions and Answers will be posted on FedBizOpps and FedConnect

Rules of Engagement

Rules of Engagement, cont

• The Government will consolidate all written questions received and post the “official” answers to FedBizOpps

• All items briefed today and discussed are preliminary and are subject to final acquisition strategy and solicitation approval

• All communications from potential offerors shall be sent to: paula.p.smith@hud.gov

• All communications are limited to the Contracting

Officer only!!!

mailto:paula.p.smith@hud.gov

Closing Remarks

TURN IN ADITIONAL QUESTIONS AND SURVEYS