DU100R-12-R-0002

U.S. Department of Housing and Urban Development Washington, D.C. 20410

OFFICE OF THE CHIEF PROCUREMENT OFFICER

Visit our web page at http://www.hud.gov/offices/cpo/index.cfm

August 17, 2012

Reference : Solicitation No. DU100R-12-0002

To: Prospective 8(a) Offerors

The U. S. Housing and Urban Development intend to award an 8(a) requirement to provide Multifamily Claims Examination Support Services. This solicitation is being processed under the authority of the Partnership Agreement (PA) between the Department of Housing and Urban Development (HUD) and the Small Business Administration (SBA), under which the SBA has delegated to HUD, authority to enter into 8(a) contracts directly with eligible 8(a) firms.

The PA implements innovative and effective methodology designed to streamline the acquisition process for awards under the 8(a) program.

Any solicitation and subsequent awards processed under the referenced PA, the Office of the Chief Procurement Officer intends to make an award directly to the 8(a) firm. The SBA will retain responsibility for the 8(a) certifications, 8(a) eligible determination and related issues, and providing counseling and assistance to the 8(a) contractor under the 8(a) program.

If you have any questions pertaining to this PA, please contact Office of the Chief Procurement Officer (OCPO), 451 7th Street, Washington, DC 20410, Diane Toledo-Gaskins at 202-402-4140 or via email Diane.e.toledo-gaskins@hud.gov.

To facilitate communication, it is requested that the 8(a) participant submitting this offer/bid provide the following information regarding the firm’s cognizant servicing Small Business Administration (SBA) office.

Servicing SBA Officer _____________________________________________ Address ______________________________________________

Cognizant SBA Business Opportunity Specialist Name

Phone _____________________ mailto:Diane.e.toledo-gaskins@hud.gov

Please note: Due to inherent organizational conflict of interests, all classes of mortgagees, lenders or loan servicers are excluded from the competition. This applies to both prime and sub-prime contractors.

Proposals are being solicited only from 8 (a) firms on a competitive basis who can satisfy the requirement contained in the Performance Work Statement.

The NAICS code is 541211 “Offices of Certified Public Accountants” and the Small Business size standard is $7M.

Offerors shall direct all communications to the attention of:

Diane Toledo-Gaskins, Contracting Officer U.S. Department of Housing and Urban Development 451 7th Street, Room 5256 Washington DC 20410 Telephone: 202-402-4140 Diane.e.toledo-gaskins@hud.gov

**Note: ELETRONIC PROPOSALS ARE NOT ACCEPTED.

RFP Questions: Offerors may submit questions to Diane Toledo-Gaskins via email. Please Reference the specific area and location in the solicitation or Performance Work Statement when asking a question. All questions must be submitted no later than August 23, 2012 12:00 pm Eastern Time.

RFP DUE DATE: Responses to this RFP, both technical and business proposal must be submitted no later than Friday August 31, 2012, 12:00 PM, Eastern Time.

This RFP does not commit the Government to pay any costs incurred in the preparation or the submission of your quotation or to contract for the supplies or services.

Sincerely, /signature/

Diane Toledo-Gaskins Contracting Officer, OCPO, HUD mailto:Diane.e.toledo-gaskins@hud.gov

SEE ADDENDUMIS CHECKED

CODE 18a. PAYMENT WILL BE MADE BY

CODE

FACILITYCODE

17b. CHECK IF REMITTANCE IS DIFFERENT AND PUT SUCH ADDRESS IN OFFER

OFFEROR

NPR

WASHINGTON DC 20410-1000

451 SEVENTH STREET SW

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

US DEPARTMENT OF HUD

CODE 16. ADMINISTERED BYCODE

X

X

541211

SIZE STANDARD:

100.00 % FOR:SET ASIDE:UNRESTRICTED ORNPR

RFPIFB

10. THIS ACQUISITION ISCODE

RFQ

14. METHOD OF SOLICITATION

13b. RATING

SMALL BUSINESS

08/31/2012 1200 ET

08/17/2012

202-402-4140DIANE TOLEDO-GASKINS

(No collect calls)

INFORMATION CALL:

FOR SOLICITATION 8. OFFER DUE DATE/LOCAL TIMEb. TELEPHONE NUMBER a. NAME

4. ORDER NUMBER3. AWARD/ 6. SOLICITATION

DU100R-12-R-0002

5. SOLICITATION NUMBER

SOLICITATION/CONTRACT/ORDER FOR COMMERCIAL ITEMS 1. REQUISITION NUMBER PAGE OF

1 103 RCS-H-12-00021OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

ROOM 5256

TELEPHONE NO.

17a. CONTRACTOR/

WASHINGTON DC 20410

ATTEN DIANE TOLEDO-GASKINS

451 7TH STREET ROOM 5256

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

US DEPARTMENT OF HUD

15. DELIVER TO

WASHINGTON DC 20410-1000

ROOM 5256

451 SEVENTH STREET SW

OFFICER

OFFICE OF THE CHIEF PROCUREMENT

9. ISSUED BY

7.

2. CONTRACT NO.

EFFECTIVE DATE

$7.5

18b. SUBMIT INVOICES TO ADDRESS SHOWN IN BLOCK 18a UNLESS BLOCK BELOW

ISSUE DATE

DELIVERY FOR FOB DESTINA-

TION UNLESS BLOCK IS

MARKED

11.

SEE SCHEDULE

12. DISCOUNT TERMS

THIS CONTRACT IS A

RATED ORDER UNDER

DPAS (15 CFR 700)

13a.

SERVICE-DISABLED

VETERAN-OWNED

SMALL BUSINESS

HUBZONE SMALL

BUSINESS

8(A)

WOMEN-OWNED SMALL BUSINESS

(WOSB) ELIGIBLE UNDER THE WOMEN-OWNED

SMALL BUSINESS PROGRAM

US DEPARTMENT OF HUD

EDWOSB

X

NAICS:

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

The Contractor shall provide Multi Family Claims Examination Support Services

Period of Performance: 09/15/2012 to 09/14/2017

0001 The contractor shall provide Multi Family Claims Support Services

(Use Reverse and/or Attach Additional Sheets as Necessary)

HEREIN, IS ACCEPTED AS TO ITEMS:

X

XX

DATED

DIANE E. TOLEDO-GASKINS

. YOUR OFFER ON SOLICITATION (BLOCK 5),

INCLUDING ANY ADDITIONS OR CHANGES WHICH ARE SET FORTH

COPIES TO ISSUING OFFICE. CONTRACTOR AGREES TO FURNISH AND DELIVER

ARE

ARE

31c. DATE SIGNED

27b. CONTRACT/PURCHASE ORDER INCORPORATES BY REFERENCE FAR 52.212-4. FAR 52.212-5 IS ATTACHED. ADDENDA

31a. UNITED STATES OF AMERICA (SIGNATURE OF CONTRACTING OFFICER)

30c. DATE SIGNED 31b. NAME OF CONTRACTING OFFICER (Type or print)

ALL ITEMS SET FORTH OR OTHERWISE IDENTIFIED ABOVE AND ON ANY ADDITIONAL

SHEETS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED.

27a. SOLICITATION INCORPORATES BY REFERENCE FAR 52.212-1, 52.212-4. FAR 52.212-3 AND 52.212-5 ARE ATTACHED. ADDEND

26. TOTAL AWARD AMOUNT (For Govt. Use Only)

OFFER

STANDARD FORM 1449 (REV. 2/2012)

Prescribed by GSA - FAR (48 CFR) 53.212

ARE NOT ATTACHED.

ARE NOT ATTACHED.

AUTHORIZED FOR LOCAL REPRODUCTION

PREVIOUS EDITION IS NOT USABLE

30b. NAME AND TITLE OF SIGNER (Type or print)

30a. SIGNATURE OF OFFEROR/CONTRACTOR

28. CONTRACTOR IS REQUIRED TO SIGN THIS DOCUMENT AND RETURN

25. ACCOUNTING AND APPROPRIATION DATA

29. AWARD OF CONTRACT:

REF.

(b) CONTINUATION OF BLOCK 20 FROM THE SF 1449

(1) Supplies or Services/Prices

I. BACKGROUND

II.OBJECTIVES

Task 1 - Election to Assign Task 2 - Examine Regular Claims Task 3 - Examine Miscellaneous Claims and Related Items Task 4 - Records Management Task 5 - Desk Procedures for Multifamily Claims Task 6 - Desk Reference Manual Task 7 - Fiscal Data Instructions Task 8 - Court Appeals Task 9 - Continuity of Operations Implementation Plan (COOP)

III.SCOPE OF WORK

A. General B. Types of Claims C. Tasks

Task 1 - Election to Assign Task 2 - Examine Regular Claims Task 3 - Examine Miscellaneous Claims and Related Items Task 4 - Records Management Task 5 - Desk Procedures for Multifamily Claims Task 6 - Desk Reference Manual Task 7 - Fiscal Data Instructions Task 8 - Court Appeals Task 9 - Continuity of Operations Implementation Plan (COOP)

IV.DELIVERABLES

Tasks 1 and 2 Task 3 Task 4 Task 5 Task 6 Task 7

CHART OF DELIVERABLES

V.RESOURCES PROVIDED BY THE CONTRACTOR

Tasks 1 and 2 Task 4 Tasks 5 and 6 Task 7 Task 8 Task 9

VI.RESOURCES PROVIDED BY HUD

Task 1 Tasks 2 and 3 Tasks 4 and 5

Task 6

VII.LOCAL TRAVEL

VIII.WORK SITE LOCATION

Task 1 Task 2

IX.LEVEL OF EXPERTISE

X.KEY PERSONNEL

XI.CONDUCT OF WORK

XII.PERIOD OF PERFORMANCE

XIII.CONFIDENTIALITY OF INFORMATION

XIV.SECURITY REQUIREMENTS

(c) - Contract Clauses FAR 52.217-8 Option to Extend Services (Nov 1999) (d)- ATTACHMENTS

(e) INSTRUCTION TO OFFEROR’S

(1) 52.212-1 Instructions to Offerors—Commercial Items (Feb 2012)

GENERAL INSTRUCTIONS

INTRODUCTION

AUTHORIZED OFFICIAL AND SUBMISSION OF PROPOSAL

PACKAGING AND DELIVERY OF PROPOSAL

TECHNICAL PROPOSAL INSTRUCTIONS

FAR 52.216-1 TYPE OF CONTRACT (APR 1984)

NUMBER OF AWARDS

NOTICE OF 8(a) COMPETITIVE SET-ASIDE

COMMUNICATIONS PRIOR TO CONTRACT AWARD

RELEASE OF INFORMATION

PREPARATION COSTS

POTENTIAL AWARD WITHOUT DISCUSSION

(b) CONTINUATION OF BLOCK 20 FROM THE SF 1449:

(1) Supplies or Services/Prices Schedule of Charges

BASE YEAR 9/15/12 - 9/14/13

Item Services Total

Firm-Fixed Price

(Description/Title) Quantity Unit Price

0001- Election to Assign

0001A Election to Establish (Create) 100

0001B Election Withdrawal 10

0001C Election Reinstatement 10

0002- Examine Regular Claims (Fixed Price/Variable Quantity)

0002A Full Insurance Assignments 120

0002B Coinsurance 1

0002C Conveyances 1

0003- Miscellaneous Claim Payments

0003A Partial Settlements 90

0003B Bond Refunder Settlements 2

0003C Supplemental Settlements 14

0003D Partial Payment of Claims 20

0003E Risk Sharing - Initial 15

0003F Risk Sharing - final 9

0003G Reengineering Settlements 50

0004- Records Management Lot

0005- Desk Procedures Lot

0005A Team Reporting Quarterly

0006- Desk Reference Manual Lot

0007- Fiscal Data Instructions Lot

0008- *Court Appeals (as needed) NTE $

0009- *COOP Implementation Plan (as needed) NTE $

Total Firm Fixed Price $0.00

* Time and Material (Labor Hour)

NTE - Not To Exceed amount

OPTION YEAR ONE 9/15/13 - 9/14/14

Item Services Total

Firm-Fixed Price

(Description/Title) Quantity Unit Price

0101- Election to Assign

0101A Election to Establish (Create) 124

0101B Election Withdrawal 10

0101C Election Reinstatement 10

0102- Examine Regular Claims (Fixed Price/Variable Quantity)

0102A Full Insurance Assignments 124

0102B Coinsurance 2

0102C Conveyances 2

0103- Miscellaneous Claim Payments

0103A Partial Settlements 93

0103B Bond Refunder Settlements 3

0103C Supplemental Settlements 14

0103D Partial Payment of Claims 21

0103E Risk Sharing - Initial 15

0103F Risk Sharing - final 9

0103G Reengineering Settlements 52

0104- Records Management Lot

0105- Desk Procedures Lot

0105A Team Reporting Quarterly

0106- Desk Reference Manual Lot

0107- Fiscal Data Instructions Lot

0108- *Court Appeals (as needed) NTE

0109- *COOP Implementation Plan (as needed) NTE

Total Firm Fixed Price $0.00

OPTION YEAR TWO

9/15/14 - 9/14/15

Item Services Total

Firm-Fixed Price

(Description/Title) Quantity Unit Price

0201- Election to Assign

0201A Election to Establish (Create) 128

0201B Election Withdrawal 10

0201C Election Reinstatement 10

0202- Examine Regular Claims (Fixed Price/Variable Quantity)

0202A Full Insurance Assignments 128

0202B Coinsurance 2

0202C Conveyances 2

0203- Miscellaneous Claim Payments

0203A Partial Settlements 96

0203B Bond Refunder Settlements 3

0203C Supplemental Settlements 14

0203D Partial Payment of Claims 22

0203E Risk Sharing - Initial 15

0203F Risk Sharing - final 9

0203G Reengineering Settlements 54

0204- Records Management Lot

0205- Desk Procedures Lot

0205A Team Reporting Quarterly

0206- Desk Reference Manual Lot

0207- Fiscal Data Instructions Lot

0208- *Court Appeals (as needed) NTE

0209- *COOP Implementation Plan (as needed) NTE

Total Firm Fixed Price $0.00

OPTION YEAR THREE

9/15/15 - 9/14/16

Item Services Total

Firm-Fixed Price

(Description/Title) Quantity Unit Price

0301- Election to Assign

0301A Election to Establish (Create) 132

0301B Election Withdrawal 10

0301C Election Reinstatement

0302- Examine Regular Claims (Fixed Price/Variable Quantity)

0302A Full Insurance Assignments 132

0302B Coinsurance 2

0302C Conveyances 2

0303- Miscellaneous Claim Payments

0303A Partial Settlements 99

0303B Bond Refunder Settlements 3

0303C Supplemental Settlements 14

0303D Partial Payment of Claims 23

0303E Risk Sharing - Initial 15

0303F Risk Sharing - final 9

0303G Reengineering Settlements 56

0304- Records Management Lot

0305- Desk Procedures Lot

0305A Team Reporting Quarterly

0306- Desk Reference Manual Lot

0307- Fiscal Data Instructions Lot

0308- *Court Appeals (as needed) NTE

0309- *COOP Implementation Plan (as needed) NTE

Total Firm Fixed Price $0.00

OPTION YEAR FOUR

9/15/16 - 9/14/17

Item Services Total

Firm-Fixed Price

(Description/Title) Quantity Unit Price

0401- Election to Assign

0401A Election to Establish (Create) 136

0401B Election Withdrawal 10

0401C Election Reinstatement 10

0402- Examine Regular Claims (Fixed Price/Variable Quantity)

0402A Full Insurance Assignments 136

0402B Coinsurance 2

0402C Conveyances 2

0403- Miscellaneous Claim Payments

0403A Partial Settlements 102

0403B Bond Refunder Settlements 3

0403C Supplemental Settlements 14

0403D Partial Payment of Claims 24

0403E Risk Sharing - Initial 15

0403F Risk Sharing - final 9

0403G Reengineering Settlements 58

0404- Records Management Lot

0405- Desk Procedures Lot

0405A Team Reporting Quarterly

0406- Desk Reference Manual Lot

0407- Fiscal Data Instructions Lot

0408- *Court Appeals (as needed) NTE

0409- *COOP Implementation Plan (as needed) NTE

Total Firm Fixed Price $0.00

Total Base Plus All Options $0.00

(2) Description/Specification

STATEMENT OF WORK

FHA COMPTROLLER

OFFICE OF FINANCIAL SERVICES

MULTIFAMILY CLAIMS BRANCH

MULTIFAMILY CLAIMS EXAMINATION SUPPORT SERVICES

I. BACKGROUND

The Department of Housing & Urban Development (HUD) provides mortgage insurance protection to HUD approved lending institutions (mortgagees). Under the terms of the contract of insurance between HUD and the mortgagee, the mortgagee may take action to terminate the agreement upon the mortgagor’s default of the mortgage loan. When the mortgagee is in full compliance with requirements of the National Housing Act (The Act), the Code of Federal Regulations (CFR), applicable mortgagee letters and HUD handbooks relating to the claims process, the mortgagee is entitled to receive multifamily mortgage insurance benefits from HUD. These insurance benefits are obtained through the mortgagee’s submission of Form HUD-2747, Application for Insurance Benefits (Multifamily) to the Multifamily Claims Branch (MFCB).

Prior to filing the Form HUD-2747, and within forty-five (45) days after the mortgagee becomes eligible to file for insurance benefits, the mortgagee is required to notify HUD of its intention to file an insurance claim and of its election either to assign the mortgage, or to acquire and convey title to HUD. When HUD has approved the election, the mortgagee assigns the mortgage or conveys the property within thirty (30) days.

When a claim for insurance benefits is submitted to MFCB after the assignment or conveyance to HUD, the supporting documentation from the mortgagee is reviewed for accuracy and completeness. The claim is calculated and paid to the mortgagee in a timely manner so as to avoid unnecessary interest charges. Each claim requires a detailed analysis due to its complexity and uniqueness. (A full year is normally required for an employee to fully assimilate the claims process.) The claim amount is calculated using the criteria set forth in The Act, the CFR, mortgagee letters, applicable HUD handbooks and multifamily claims procedures. Claims are categorized into various types, including Regular (Full Insurance, Coinsurance, Fully Insured Conveyance), and Miscellaneous (Partial Settlement, OAHP [Portfolio Reengineering], Risk Sharing, Partial Payment of Claim, Bond Refunder).

Claims may be settled in cash or debentures depending on the Section of the Act and type of claim.

Our system of record is PeopleSoft Revenue Management System, a WEB based PC systems for tracking the status of claims. Claims data is entered into the system at each stage of the claims examination and review process, beginning with the receipt of the Election to Assign Approval and ending with the final claim settlement. In Fiscal Year 2011, 44 settlements were made on regular insurance claims, totaling over $29 million. An additional 96 settlements were made on other types of claims, totaling over $350 million. It is anticipated that the claim assignments will continue at this level into next year.

II. OBJECTIVES

The objective of this fixed price/variable quantity contract is to procure contractor support in the claim review and settlement process. The contractor shall execute the responsibilities under this task order as explained in the following Tasks 1 through 9.

Task 1 - Election to Assign

A HUD approved Election to Assign or Convey is required for all fully insured and co-insured assignments and fully insured conveyances. The contractor must update the system-of-record with all transactions pertaining to an approved election and must ensure supporting documents are filed in the claim folder. In addition the contractor shall scan all documents and create a folder for storage in a share drive and later migrate to an external hard drive. The contractor shall process approximately one hundred twenty (120) elections annually.

Task 2 - Examine Regular Claims

Regular claims include Coinsured Mortgage Loans, Assignment of Fully Insured Mortgage Loans as well as Conveyance of Fully Insured Mortgage Loans. The contractor shall perform annually approximately one hundred fifty (120) regular claim examinations including hospital and nursing claims. Each examination must be conducted in accordance with the applicable sections of The Act, the CFR, mortgagee letters, applicable HUD handbooks and multifamily claims procedures. The contractor must utilize the legal instruments (mortgage note, regulatory agreement, etc.) and accounting documents Form HUD-2744-A (Allocation of Mortgagee Receipts and Disbursements), Form HUD-2742, (Fiscal Data in Support of Claim for Multifamily Mortgage Insurance Benefits), etc., which are incorporated as a part of the claim for insurance benefits to arrive at the appropriate amounts to be paid. All documents received shall be scanned and added to the folder already created and stored in the share drive.

Task 3 - Examine Miscellaneous Claims and Related Items

Miscellaneous claims include Partial Settlements, Supplemental Settlements, OAHP (Portfolio Reengineering), Risk Sharing, Partial Payment of Claim and Bond Refunder.

The contractor shall perform approximately one hundred (100) miscellaneous claim examinations annually. Each examination must be conducted in accordance with the applicable sections of The Act, the CFR, mortgagee letters, applicable HUD handbooks and multifamily claims instructions. In arriving at the appropriate amount to be paid for each claim, the contractor must utilize the same legal instruments and accounting documents as cited in Subtask 1, that are incorporated as a part of the claim for insurance benefits. All documents received shall be scanned and added to the folder already created and stored in the share drive.

In addition the contractor must report (Team Report) quarterly the number of hours the staff processed claims and related tasks during the designated two week period.

Task 4 - Records Management

The contractor must prepare, store, and maintain all current and future examined and completed claims files at the contractor’s off site location. Records must be stored, maintained and disposed of in accordance with HUD Retention Schedule guidelines as detailed in HUD Handbook 2228.1, Records Disposition Management and standard federal records retention procedures. There are currently over 3,175 case files in storage. The contractor shall be requested to provide on-site staff to perform record management functions. Records in storage that have not already been scanned and store in the share drive or external hard drive, must be scanned and a folder created for it to be stored in the external hard drive. The contractor shall create and maintain an accurate inventory of all scanned/imaged claim folders.

Task 5 - Desk Procedures for Multifamily Claims

The contractor must update desk procedures pertaining to the processing of multifamily claims. The existing desk procedures must be updated in accordance with The Act, the CFR, mortgagee letters, applicable HUD handbooks and the system-of-record manual. The updated desk procedures should encompass an additional indexed reference style section.

The reference style section must list in alphabetical order by key word or phrase all pertinent terms, titles, programs and processes relevant to the claims examination process. All terms, titles, programs and processes must be searchable by key word or phrase for quick reference.

The desk procedures are to be produced by the contractor in Microsoft Word format or in a searchable database format on CDs provided by the contractor. (Microsoft Word version must be compatible with current HUD Windows Operating System). Eight (8) CD copies of the updated desk procedures are to be provided by the contractor under this subtask. The contractor must additionally furnish eight (8) hard copies of the updated desk procedures.

Task 6 - Desk Reference Manual

The contractor must update the Desk Reference Manual, which must include a thorough explanation of key subjects, documents and events included in the processing of multifamily claims. (The explanation of each subject, document, etc. should be very descriptive, including the purpose and the different scenarios for using the document.) This manual must be updated in accordance with The Act, the CFR, mortgagee letters, key recent legal opinions, and applicable HUD handbooks. It should be user-friendly and searchable. Its Table of Contents must be in alphabetical order. The production and the number of manuals to be delivered are the same as for the desk procedures.

Task 7 - Fiscal Data Instructions

The contractor must update existing instructions in accordance with The Housing Act, the CFR, mortgagee letters, recent key legal opinions, Form HUD-2741 (Instructions for Applications for Insurance Benefits), and applicable HUD handbooks. The instructions must be updated with current addresses and should be user-friendly. Also, the instructions should be organized by the occurrence of events in the claim filing process. The instructions should be compatible to Microsoft Word format on a CD provided by the contractor.

Task 8 - Court Appeals

At the option of HUD, the contractor must assist HUD in responding to Congressional inquiries, administrative reviews and litigation proceedings.

Task 9 - Continuity of Operations Implementation Plan (COOP)

Contractor must provide workstations for two HUD employees with access to MFCB system-of-record at their local work site. This may only be necessary during a Federal emergency under the COOP. This plan will be put into action if HUD employees are unable to work out of the HUD building. Contractor must provide storage for forms and materials necessary to implement the COOP.

III. SCOPE OF WORK

A. General

HUD will provide the contractor with an orientation/overview of the operations of the MFCB. In addition, HUD will provide the contractor with up to five (5) days of formal classroom training for three (3) to six (6) contractor staff. HUD will provide working space for the trainees on-site (in the MFCB) for the first sixty days of this task order. During the sixty-day period, trainees will be given actual claims to be worked. After the first 60 days, the work under this task order must be conducted at the contractor’s work site. At HUD’s option, up to three contractor mid-level employees must work on-site (in MFCB) under this task order. The contractor must furnish the necessary professional and clerical services, equipment, and supplies needed to accomplish the requirements as specified in the task order.

B. Types of Claims

TYPE/NAME DESCRIPTION

ASSIGNMENTS Mortgage is recorded/assigned to HUD

COINSURANCE HUD shares insurance risk at a ratio of 85% (HUD) to 15% (Mortgagee).

CONVEYANCE Property deeded/conveyed to HUD

PARTIAL SETTLEMENTS Initial settlement prior to final settlement

BOND REFUNDER

SETTLEMENTS

Refinancing of loan combined with partial payment of claim

SUPPLEMENTAL

SETTLEMENTS

Mortgagee requests adjustments after final settlement of claim is paid

PARTIAL PAYMENT OF

CLAIMS

Mortgage restructuring - HUD takes a 2nd mortgage

REENGINEERING

SETTLEMENTS

RISK SHARING (Initial)

RISK SHARING (Final)

Mortgage loan is restructured to reduce Section 8 subsidy (Mark-to-Market).

Initial Risk Sharing disbursement

Risk of loss is shared between HUD & Lender

C. Tasks

The issuance and performance of tasks are described in the Work Breakdown Schedule below:

Task 1 - Election to Assign

Task 2 - Examine Regular Claim (Fixed Price/Variable Quantity)

Task 3 - Miscellaneous Claim Payments and Related Items (Fixed Price/Variable Quantity)

Task 4 - Records Management (Level of Effort)

Task 5 - Desk Procedures for Multifamily Claims (Fixed Price)

Task 6 - Desk Reference Manual (Fixed Price)

Task 7 - Fiscal Data Instructions (Fixed Price)

Task 8 - Court Appeals

Task 9 - COOP Plan

NOTE: All documents and working papers developed and prepared by the contractor for HUD, in conjunction with the deliverables in each specific task order must become the sole property of HUD, and released upon request.

Task 1 - Election to Assign

The contractor must be prepared to process approximately one hundred twenty (120) HUD approved elections annually. A HUD approved election serves as notice of a pending assignment or conveyance that should occur within the next 30 days or within the extended timeframe.

a. The contractor must create a file folder when MFCB receives an Election to Assign Approval. The mortgagee is required to submit Form HUD-2537 (Application for Partial Settlement), Form HUD-2747 (Application for Insurance Benefits) and Form HUD-1044-D (Payment Information Form) for each Election to Assign Approval. At a minimum these forms and the Election to Assign Approval must be filed in the claim folder. The contractor must process the election immediately upon receipt of the Election to Assign Approval.

b. The contractor must create the Election to Assign in the system-of-record when the Election to Assign Approval is received and must update the system as other required forms are received.

c. In occasional cases that an election is withdrawn or a withdrawal of election is reinstated, the contractor must update the occurrence in the system and file the supporting documentation in the folder.

d. The contractor must scan/image all election documents and create a folder identified the FHA case number and store it in the share drive.

Task 2 - Examine Regular Claims

The contractor must be prepared to examine approximately one hundred fifty (120) regular claims annually for insurance benefits. The purpose of the examination is to determine the appropriate amount for payment under FHA multifamily claims guidelines as discussed under objectives, above.

a. Strict adherence to the established guidelines as outlined in The Act, the CFR (24CFR Parts 200 to 499), mortgagee letters, applicable HUD handbooks and Multifamily claims procedures are required in calculating insurance benefits.

b. The examination must be done by two different examiners. The first examiner must do a complete examination of the claim. The second examiner must do a summary review of the claim to ensure accuracy and completeness.

c. Prior to beginning the examination, the contractor must ascertain that all the necessary legal and accounting documents are contained in the claim file received from MFCB. In the event that further information is needed to support or clarify the claim, the contractor may contact the mortgagee or the appropriate HUD field office directly. Contact may be made via telephone, facsimile or email. The contractor must request that the information be supplied within two workdays. The information may be faxed to the contractor directly or to HUD at (202) 619-8259 or e-mailed. The contractor must document telephone contact with a letter, a copy of which must be placed in the claim file.

d. The contractor must be responsible for the pickup of pending examination claim files from MFCB twice a week. The contractor must further be responsible for delivery of completed claims examination files to MFCB. Pickup and delivery must be made from and to Room 6254 of the HUD building, 451 7th Street, S.W., Washington, D.C.

e. The contractor must prepare a detailed final settlement report, which must include the final settlement form, in addition to letter(s) to the lender; and the HUD MF Notes Servicing Branch of HUD. In addition the contractor must prepare a file for Multifamily Notes Branch containing copies of Schedule A, mortgage note and modification, regulatory agreement, mortgagee’s certificate and escrow agreement. The final settlement report including letters must be prepared on a CD-RW in Microsoft Word format compatible with the current HUD Windows operating system. The CDs must be provided by the contractor. Letters must be prepared on HUD letterhead paper (or facsimile) for signature of the Chief, Multifamily Claims Branch.

f. The contractor must provide a written record in the claim file of all contacts with mortgagees and/or their representatives, field offices, etc.

g. The contractor must input to the system-of-record all data relating to each claim, through the various stages of the claims process. The input must be accomplished in accordance with the PeopleSoft Job Aids as each event occurs.

h. The contractor will be provided with appropriate access to the PeopleSoft RM system.

i. Claims will generally be provided to contractor for examination twice a week, as available.

j. The examination of assignment claims must be completed within 30 business days of receipt. The examination of conveyance and coinsurance claims must be completed within 45 business days of receipt.

k. The contractor must scan/image all assignment documents and add them to the folder already created for it in the share drive.

Task 3 - Examine Miscellaneous Claims and Related Items

The contractor must be prepared to examine up to one hundred (100) miscellaneous claims, including hospital and nursing claims, annually for insurance. The purpose of the examination is to determine the appropriate amount for payment under FHA multifamily claims guidelines as discussed under objectives above.

Each task a. through j. listed under Task 2, above, must apply equally to Task 3.

The miscellaneous claims must be reviewed and forwarded to MFCB with prepared payment documents so that payment can be made within the following established time frames:

Partial Settlements Paid within 48 hours of receipt of assignment fax.

Bond Refunder Closing date set by agreement between the parties.

Supplemental Examination complete within 15 business days of receipt by contractor.

Partial Payment of Claims Closing date set by agreement of the parties.

Reengineering Closing date set by agreement of the parties.

Risk Sharing Examination complete within 15 business days (for initial settlement) and 30 business days (for final settlement) of receipt by contractor.

TEAM Reporting The contractor must submit TEAM report quarterly.

Task 4 - Records Management

The contractor must be responsible for the storage, filing, records disposal and maintenance of all multifamily claim files and supporting documentation. Records must be retained in accordance with HUD Handbook 2228.1, Records Disposition Management and standard federal records retention procedures as stipulated in 44 U.S.C. 1503 and 3303a. There are currently over 3,175 claim files in storage and they occupy (estimated) over 2000 cubic feet of space.

a. The contractor must provide appropriate storage equipment to maintain the stored claim files. Any equipment purchased by the contractor under this subtask must be the property of the Government (HUD). Claim files are to be stored in a fire and flood retardant storage facility.

b. The contractor must file examination claim files as received from HUD in numerical sequence by FHA project number for ready access.

c. The contractor must provide file folders, as appropriate.

d. The contractor must retrieve files upon request from the Government Technical Monitor

(GTM) within four (4) work hours.

e. The contractor must provide for delivery and pickup of files to and from the HUD building, Room 6254.

f. The contractor must provide staff knowledgeable in storing and maintaining the claim files.

g. The contractor must purge the files annually of all terminated claims. (MFCB will provide a monthly list of terminated claims). This must include boxing the files, preparing them for shipment to the Federal Records Center (FRC), indexing the files, and shipment of the files to the FRC. Purging of the files must be done in accordance with HUD Handbook 2228.1, Records Disposition Management Policy. Files must be transferred to the FRC at least once per fiscal year. The contractor must provide the MFCB with copies of correspondence transferring records to storage.

h. Contractor must retrieve files from the FRC upon request.

i. Records in storage that have not already been scanned/imaged and store in the share drive or external hard drive, must be scanned/imaged and a folder created for it to be stored in the external hard drive. The contractor shall create and maintain an accurate inventory of all scanned/imaged claim folders. HUD staff will also perform quality control of scanned/imaged claim folders by randomly sampling folders for review. The quality control shall be performed within 10 business days from the date the folder was scanned/imaged. If any of the documents in the folder is unacceptable (tilted more than 10 degrees) it must be rescanned/imaged at no additional cost to HUD.

j. Upon expiration of the contract, the contractor must prepare files and storage equipment for shipment. Files must be boxed in FHA Project Number sequence and clearly labeled as to the contents. A detailed master index of all boxes and their files must be created by the contractor. The Government Technical Representative (GTR) will direct the contractor when to have the files and storage equipment ready for pickup by transport arranged by HUD. The contractor must provide boxes for shipment. Files must be transferred from the previous contractor to the new contractor within 15 days after award of the contract.

k. The contractor must provide a listing of all records as requested and must update the system-of-record of the location of files not in their possession (i.e., Accession numbers for files sent to FRC for storage) and the date the terminated files were destroyed by the

FRC.

Task 5 - Desk Procedures for Multifamily Claims

a. The contractor must update and test changes to existing Desk Procedures in Microsoft Word format (compatible with current HUD Windows Operating System) on CDs, eight

(8) sets of updated desk procedures for use by staff in the processing of FHA multifamily insurance claims. The read/write-able CDs must be supplied by the contractor. The desk procedures must be updated to take into account any changes in the system-of-record since the date of the existing procedures. The update must be in accordance with The Act, 24 CFR, Parts 200-499, mortgagee letters and applicable HUD Handbooks.

b. The contractor must supply eight (8) hard copies of the updated desk procedures.

c. Reference Style Desk Procedures: The contractor must ensure this is indexed in a reference style of updates to desk procedures. The reference style section must list in alphabetical order by key word or phrase all pertinent terms, titles, programs and processes relevant to the claims examination process. All terms, titles, programs and processes must be searchable by key word or phrase for quick reference.

d. The contractor must furnish all professional, technical and clerical personnel, materials, equipment and facilities to meet the requirements of this effort.

Task 6 - Desk Reference Manual

a. The contractor must update and test changes to existing Reference Manual which is in Microsoft Word format (compatible with current HUD Windows Operating System) on CDs, eleven (11) sets of the Reference Manuals for use by staff in the processing of FHA multifamily insurance claims. The Reference Manual must be an exhaustive treatment of each key subject matter pertaining to the claims process. The manual must be in accordance with The Act, 24 CFR, mortgagee letters and applicable HUD Handbooks.

b. The CDs must be supplied by the contractor.

c. The contractor must supply eleven (11) hard copies of the manual.

d. The contractor must furnish all professional, technical and clerical personnel, materials, equipment and facilities to meet the requirements of this effort.

Task 7 - Fiscal Data Instructions

The contractor must update existing Fiscal Data instructions in accordance with The Housing Act, the CFR, mortgagee letters, key recent legal opinions, and applicable HUD handbooks. Instructions must be updated with current addresses and should be user-friendly. Also, they should be organized by the occurrence of events in the claim filing process. Instructions shall be compatible to Microsoft Word format on a CD provided by the contractor.

Task 8 - Court Appeals

At the option of HUD, the contractor must assist HUD in responding to congressional inquiries, administrative reviews and litigation proceedings, if any.

Task 9 - Continuity of Operations Implementation Plan (COOP)

The contractor must provide workstations for two HUD employees with access to the system-of-record, at their local work site. This may only be necessary during a Federal emergency under the COOP. This plan will be put into action if HUD employees are unable to work out of the HUD building.

IV. DELIVERABLES

If a deliverable is due on a specified business day and that day falls on a weekend or holiday, the deliverable will be due on the next business day.

Tasks 1 and 2

The contractor must provide to the GTR/GTM, by the 7th business day of each month, a report of task activity during the previous month. The report must show the status of all claims by type, date received by contractor, date work began on the claim, date completed, current status of the claim and any problems encountered. The report must also include any correspondence with lenders or other HUD offices, concerning claim examinations.

Contractor must provide, with each completed claim examination a final settlement report, including final settlement form, letters to the lender, MF Notes Servicing Branch, and when applicable, the Office of Multifamily Operations Branch. Letters must be prepared on HUD letterhead and must be for the signature of the Chief, Multifamily Claims Branch.

Along with each completed claim examination, the contractor must provide one (1) R/W CD, copies of payment authorization documents as appropriate, i.e., debenture or cash.

Claims settlements must be provided in accordance with the timetables listed under subtasks

1 and 2, scope of work. If the total number of claims received by the contractor exceeds forty (40) in a 30 business day period, the following completion schedule must apply.

(When due date business day falls on a weekend, the next business day is the due date.)

Number of Claims Received Additional Business Days

In a 30 Business Day Period For Each Claim Over 40

40-50 7 51-60 14 61-70 21 71-80 28

The contractor must notify the GTR and request an extension date in writing of any claims that are not expected to be completed in accordance with the claims review periods outlined above. The contractor must detail the reason(s) for the extension in their request and submit the request five (5) working days prior to the expiration of the claim review period.

The GTR must approve/disapprove the extension request in writing.

Any claim not processed in accordance with the claim review periods specified, without a written extension from the GTR must be penalized 1% per day of the fixed price per claim for every business day the completed claim has not been returned to HUD past the stated claim review period.

In instances where the claim is found to be incomplete or calculated erroneously, as determined by HUD, it will be returned to the contractor to be re-worked at no extra cost to HUD. However, many claims incur additional interest charges to the government on a daily basis until paid. In these cases, it may be in the best interest of the government for HUD staff to complete the claim or correct any errors and pay as soon as possible in order to stop the interest from accruing on the claim. When this occurs, at the discretion of HUD, the contractor shall incur a penalty of 1% of the fixed price of the claim. Changes in dollar amounts on correspondence due to accrual of interest are not considered errors on the part of the contractor.

The contractor must complete the review of claims received on the last day of the period of performance for this task order. This includes all claim types listed in subtasks 1 and 2.

Task 3

TEAM Reporting Requirement: Time data collection is required by HUD for all its employees on a quarterly basis. The quarters are based on the Federal fiscal year calendar and ends in December, March, June, and September. The TEAM data specify the number of hours spent by each employee on performed tasks and other activities. It also includes contractors’ hours, as well as HUD employees’ hours. For TEAM reporting purposes, the contractor will report to HUD on a quarterly basis, or upon request, the number of hours devoted quarterly to the contract by the contractor staff. This report will also include the number of hours devoted to contract oversight by the Project Manager and/or any other key contractor personnel.

Task 4

The contractor must report all records management activity such as files added to storage, files retrieved from storage, a running total of the current number of files in storage reconciled with any files outstanding, a list of all files currently outstanding, any problems encountered, etc. A record of files sent to the Federal Records Center (FRC) must be provided to the MFCB. Contractor must keep a list of all claim folders scanned/imaged and must update the system-of-record accordingly. This report must be provided to MFCB by the 7th business day of each month.

Contractor must supply claim files as requested by MFCB within four (4) work hours of request. Contractor must retrieve and re-file claim files once MFCB has finished with them.

Contractor must provide for delivery and pickup of files to and from the HUD building, Room 6254. Delivery and pick up must be every Tuesday and Friday and on other days and times as requested by MFCB.

Contractor must retrieve files from the FRC as requested.

Transition: Upon expiration of the contract, contractor must prepare files and storage equipment for shipment. Files must be boxed in FHA project Number sequence and clearly labeled as to the contents. A detailed master index of all boxes and their files must be provided to MFCB by the contractor. MFCB will direct the contractor as to time and place for delivery of files and storage equipment.

Task 5

Contractor must provide to the MFCB eight (8) CDs containing the updated desk procedures, including reference style desk procedures. Contractor must also provide eleven

(11) hard copies. Updated desk procedures must be provided by the contractor in accordance with the following timetable to the GTR/GTM.

Draft Table of Contents - five (5) soft copies due to GTR 7 business days after authorization from the GTR to proceed.

GTR comments/approval - due to contractor 7 business days after receipt of Draft Table of Contents.

Draft Desk Procedures - seven (7) hard copies due to GTR 60 business days after approval of table of contents. The proposed desk procedures must have been tested by the contractor prior to submission to the GTR/GTM.

GTR comments/approval - due to contractor 15 business days after receipt of Draft Desk

Procedures.

Final Draft Desk Procedures - seven (7) hard copies due 15 business days after receipt of GTR approval.

GTR comments/approval - due to contractor 15 business days after receipt of Final Draft Desk Procedures.

Final Desk Procedures - eight (8) on CDs and eight (8) hard copies no later than 7 business days after receipt of GTR approval.

Task 6

Contractor must provide to the MFCB eight (8) CDs containing the updated Desk Reference Manual. Contractor must also provide eight (8) hard copies. Desk Reference Manual must be provided by the contractor in accordance with the following timetable.

Draft Table of Contents, containing all key subjects to be included - five (5) soft copies due to GTR 14 business days after authorization from the GTR to proceed.

GTR comments/approval - due to contractor 7 business days after receipt of Draft Table of Contents.

Draft Desk Manual - seven (7) hard copies due to GTR 60 business days after approval of table of contents. The proposed Manual must have been tested by the contractor prior to submission to the GTR.

GTR comments/approval - due to contractor 15 business days after receipt of Draft Reference Manual.

Final Draft Desk Reference Manual - seven (7) hard copies due 15 business days after receipt of GTR approval.

GTR comments/approval - due to contractor hard copies no later than 7 business days after receipt of Final Draft Desk Manual.

Final Desk Manual - eight (8) copies due on CDs and eight (8) hard copies, no later than 7 business days after receipt of GTR approval.

Task 7

Contractor must provide to the MFCB one (1) CD containing the updated Fiscal Data Instructions. Contractor must also provide eight (8) hard copies. Fiscal Data Instructions must be provided by the contractor in accordance with the following timetable.

Draft Fiscal Data Instructions - seven (7) hard copies due to GTR 15 business days after authorization from the GTR to proceed. The proposed instructions must have been tested by the contractor prior to submission to the GTR/GTM.

GTR comments/approval - due to contractor 15 business days after receipt of Draft Fiscal Data Instructions.

Final Draft Fiscal Data Instructions – seven (7) hard copies due 15 business days after receipt of Final Draft Fiscal Instructions approval from the GTR.

GTR comments/approval - due to contractor 15 business days after receipt of Final Draft Fiscal Instructions.

Final Fiscal Data Instructions - due on a CD along with eight (8) hard copies no later than 7 business days after receipt of GTR approval.

The Desk Procedures, Desk Reference Manuals and Fiscal Data Instructions must be updated upon request.

CHART OF DELIVERABLES

Task Contract Deliverable Requi rement

Frequency When Date Deliver to

2. & 3. Claim examination activity report

Monthly By the 7th business day of each month

GTR/

GTM

3. TEAM reporting requirement

Quarterly By noon on the last work day of the two week reporting period

GTM

4. Records management activity report

Monthly By the 7th business day of each month

GTR/

GTM

5. Desk procedures, Draft table of contents

Annually Five soft copies due 7 business days after authorization from the GTR

GTR/

GTM

5. Draft Desk procedures

Annually Seven hard copies due 60 business days after approval of draft table of content from the GTR

GTR/

GTM

5.

Final draft desk procedures

Annually Seven hard copies due after 15 business days after GTR approval

GTR/

GTM

5. Final desk procedures Annually 8 CDs and 8 hard copies due 7 business days after receipt of GTR approval

GTR/

GTM

6. Desk reference manual Draft table of contents

Annually 5 soft copies due to GTR 14 business days after authorization from the GTR to proceed.

GTR/

GTM

6. Draft desk reference manual

Annually 7 hard copies due to GTR 60 business days after approval of the draft table of contents.

GTR/

GTM

V. RESOURCES PROVIDED BY THE CONTRACTOR

The contractor must provide the items as listed below:

Tasks 1 and 2

Expandable heavy duty pressboard file folder, of legal size, with 2 fasteners, 1/3 tabs of assorted positions, and 3” expansion as needed.

Courier delivery and pickup service CD-RW as needed One PC terminal station for access to the system-of-record, compatible with HUD’s basic information technology infrastructure.

Task 4

Additional storage equipment for filing of claims, to be kept in a fire and flood retardant storage facility as required File folders as needed Shipping and storage boxes as needed Courier delivery and pickup service

6. Final desk reference manual

Annually 8 CDs and 8 hard copies due 7 business days after receipt of GTR approval.

GTR/

GTM

Task Contract Deliverable Requi rement

Frequency When Date Deliver to

7 Draft fiscal data instructions

Annually 7 hard copies due to GTR 15 business days after authorization from the GTR to proceed

GTR/

GTM

7. Final draft fiscal data instructions

Annually 7 hard copies due 15 business days after receipt of final draft fiscal instruction approval from the GTR

GTR/

GTM

7. Final fiscal data instructions

Annually 1 CD and 8 hard copies are due 15 business days after receipt of GTR approval.

GTR/

GTM

7. Desk procedures, Desk reference manual and Fiscal data instructions must be updated annually.

Annually. According to the time schedule outlined in sub tasks 5, 6, and 7.

GTR/

GTM

Leased storage space Secured, alarmed, monitored storage room Capability to scan/image documents

Tasks 5 and 6

Eight (16) CDs Microsoft Word software compatible with current HUD Windows Operating System Courier delivery and pickup service

Task 7

Same as with tasks 5 and 6 except the number of CDs is reduced to one (1).

The contractor must furnish all professional, technical and clerical personnel, materials, equipment and facilities to meet the requirements of this task order.

Task 8

At the option of HUD, the contractor must assist HUD in responding to congressional inquiries, administrative reviews and litigation proceedings, if any.

Task 9

Contractor must also provide workstations for two HUD employees with access to the system-of-record at their local work site. This will only be necessary during an emergency under the Continuity of Operations Implementation Plan (COOP).

The contract employees must provide services on Mondays through Fridays, with the exception of Federal Holidays. The core hours are between 8:00 am – 4:30 pm.

VI. RESOURCES PROVIDED BY HUD

HUD will provide the following items under this task order:

Task 1

N/A

Tasks 2 and 3

Work-site location:

A workstation for each contract employee in the HUD building in the Multifamily Claims Branch.

Equipment:

HUD will provide a PC and telephone for each workstation.

Evaluation of…