DU100R-12-R-0004 MF AUDIT.pdf

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 30, 2012

Reference: Sollicitation No. DU100R-12-0004

To: Prospective Offerors

The U. S. Department of Housing and Urban Development intends to award an 8(a) requirement to provide MF Premium Audits Services for HUD’s Office of Housing (MF Insurance Operations). This solicitation is being process under the authority of the Partnership Agreement (PA) between the Department of Housing and Urban Development (HUD) and the Small Business Administration (SBA). Under this agreement, 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 award resulting from this solicitation will be made directly by the HUD contracting officer to the successful 8(a) offeror selected through the evaluation criteria set forth in this solicitation.

SBA will retain responsibility for the 8(a) certifications, 8a eligible determination and related issues, and provide counseling and assistance to the 8a 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, Darlene Pope, or via email at darlene.pope@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:darlene.pope@hud.gov

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 Public Accountants” and the size standards is $19.0M.

Offerors shall direct all communications to the attention of:

Darlene Pope, Contract Specialist U.S. Department of Housing and Urban Development 451 7th Street, Room 5256 Washington DC 20410 Telephone: 202-402-5906 darlene.pope@hud.gov

**Noted: ELETRONIC PROPOSAL ARE NOT ACCEPTED.

RFQ Questions: Offerors may submit questions to Darlene Pope 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 3:00 pm Eastern Standard Time (EST) on September 6, 2012.

RFP DUE DATE: Responses to this RFP, both technical and business proposal must be submitted no later than 3:00 p.m., Eastern Standard Time on September 14, 2012.

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

Sincerely, /signature/

Darlene Pope Contract Specialist, OCPO HUD mailto:darlene.pope@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

09/14/2012 1400 ES

08/30/2012

202-402-5906DARLENE POPE

(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-0004

5. SOLICITATION NUMBER

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

1 90 RCS-H-12-00125OFFEROR TO COMPLETE BLOCKS 12, 17, 23, 24, & 30

ROOM 5256

TELEPHONE NO.

17a. CONTRACTOR/

WASHINGTON DC 20410

ATTENTION DARLENE POPE

ROOM 5256

451 7TH STREET SW

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

$8.5

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.

Multifamily Premium Audit Services Period of Performance: 09/28/2012 to 09/27/2017

1001 Base Year - Establish New Endorsements 2150 EA

1002 Base Year - Audit Insured Advances (Per Loan) 470 EA

1003 Base Year - Audit Unsured Upon Completion (Per 1199 EA Continued ...

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

HEREIN, IS ACCEPTED AS TO ITEMS:

XX

DATED

BRENDA K. LEE

. 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.

32e. MAILING ADDRESS OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32c. DATE 32b. SIGNATURE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

ACCEPTED, AND CONFORMS TO THE CONTRACT, EXCEPT AS NOTED:

32a. QUANTITY IN COLUMN 21 HAS BEEN

RECEIVED INSPECTED

40. PAID BY39. S/R VOUCHER NUMBER38. S/R ACCOUNT NUMBER

37. CHECK NUMBER

FINALPARTIAL

36. PAYMENT

FINALPARTIAL

35. AMOUNT VERIFIED

CORRECT FOR

34. VOUCHER NUMBER33. SHIP NUMBER

COMPLETE

32g. E-MAIL OF AUTHORIZED GOVERNMENT REPRESENTATIVE

42d. TOTAL CONTAINERS42c. DATE REC'D (YY/MM/DD)

42b. RECEIVED AT (Location)

42a. RECEIVED BY (Print)

41c. DATE41b. SIGNATURE AND TITLE OF CERTIFYING OFFICER

41a. I CERTIFY THIS ACCOUNT IS CORRECT AND PROPER FOR PAYMENT

STANDARD FORM 1449 (REV. 2/2012) BACK

24.

AMOUNT

23.

UNIT PRICE

22.

UNIT

21.

QUANTITY

20.

SCHEDULE OF SUPPLIES/SERVICES

19.

ITEM NO.

Loan)

1004 Base Year - Audit Portfolio Re-Engineering (Per 285 EA

Loan)

1005 Base Year - Process Termination (Per Loan) 1550 EA

1006 Base Year - Handling Calls, Typing Correspondence 12 MO

1007 Base Year - Records Management 12 MO

1008 Base Year - File Storage 12 MO

2001 Option Year 1 - Establish New Endorsements 2150 EA

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

2002 Option Year 1 - Audit Insured Advances (Per Loan) 470 EA

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

Continued ...

32f. TELEPHONE NUMBER OF AUTHORIZED GOVERNMENT REPRESENTATIVE

32d. PRINTED NAME AND TITLE OF AUTHORIZED GOVERNMENT REPRESENTATIVE

90 2 of

ITEM NO. SUPPLIES/SERVICES QUANTITY UNIT UNIT PRICE AMOUNT

NAME OF OFFEROR OR CONTRACTOR

3 90

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

(A) (B) (C) (D) (E) (F)

DU100R-12-R-0004

2003 Option Year 1 - Audit Unsured Upon Completion 1199 EA

(Per Loan)

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

2004 Option Year 1 - Audit Portfolio Re-Engineering 285 EA

(Per Loan)

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

2005 Option Year 1 - Process Terminations (Per Loan) 285 EA

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

2006 Option Year 1 - Handling Calls, Typing 12 MO

Correspondence

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

2007 Option Year 1 - Records Management 12 MO

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

2008 Option Year 1 - File Storage 12 MO

(Option Line Item)

Period of Performance: 09/28/2013 to 09/27/2014

3001 Option Year 2 - Establish New Endorsements 1400 EA

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

3002 Option Year 2 - Audit Insured Advances (Per Loan) 400 EA

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

3003 Option Year 2 - Audit Unsured Upon Completion 600 EA

(Per Loan)

(Option Line Item)

Continued ...

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

Sponsored by GSA

FAR (48 CFR) 53.110

4 90

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

(A) (B) (C) (D) (E) (F)

DU100R-12-R-0004

Period of Performance: 09/28/2014 to 09/27/2015

3004 Option Year 2 - Audit Portfolio Re-Engineering 285 EA

(Per Loan)

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

3005 Option Year 2 - Process Terminations (Per Loan) 1250 EA

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

3006 Option Year 2 - Handling Calls, Typing 12 MO

Correspondence

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

3007 Option Year 2 - Records Management 12 MO

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

3008 Option Year 2 - File Storage 12 MO

(Option Line Item)

Period of Performance: 09/28/2014 to 09/27/2015

4001 Option Year 3 - Establish New Endorsements 1400 EA

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

4002 Option Year 3 - Audit Insured Advances 400 EA

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

4003 Option Year 3 - Audit Unsured Upon Completion 400 EA

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

4004 Option Year 3 - Audit Portfolio Re-Engineering 285 EA

(Option Line Item)

Continued ...

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

5 90

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

(A) (B) (C) (D) (E) (F)

DU100R-12-R-0004

Period of Performance: 09/28/2015 to 09/27/2016

4005 Option Year 3 - Process Terminations 1250 EA

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

4006 Option Year 3 - Handling Calls, Typing 12 MO

Correspondence

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

4007 Option Year 3 - Records Management 12 MO

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

4008 Option Year 3 - File Storage 12 MO

(Option Line Item)

Period of Performance: 09/28/2015 to 09/27/2016

5001 Option Year 4 - Establish New Endorsements 1400 EA

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5002 Option Year 4 - Audit Insured Advances (Per Loan) 400 EA

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5003 Option Year 4 - Audit Unsured Upon Completion 600 EA

(Per Loan)

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5004 Option Year 4 - Audit Portfolio Re-Engineering 285 EA

(Per Loan)

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5005 Option Year 4 - Process Terminations (Per Loan) 1250 EA

(Option Line Item)

Continued ...

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

6 90

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED PAGE OF

(A) (B) (C) (D) (E) (F)

DU100R-12-R-0004

Period of Performance: 09/28/2016 to 09/27/2017

5006 Option Year 4 - Handling Calls, Typing 12 MO

Correspondence

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5007 Option Year 4 - Records Management 12 MO

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5008 Option Year 4 - File Storage 12 MO

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

5009 Option Year 4 - Transition Out 1 LO

(Option Line Item)

Period of Performance: 09/28/2016 to 09/27/2017

NSN 7540-01-152-8067 OPTIONAL FORM 336 (4-86)

Table of Contents

(b) CONTINUATION OF BLOCK 20 FROM THE SF 1449

(c) - Contract Clauses

(2) Addendum to 52.212-4

(3) 52.212-5 Contract Terms and Conditions Required to Implement Statutes or Executive Orders—Commercial Items (Jul 2012) E. FAR 52.203-14 DISPLAY OF HOTLINE POSTER(S) (Dec 2007)

F. FAR CLAUSE 52.252-2 CLAUSE INCORPORATED BY REFERENCE. (FEB 1998). 42

FAR 52.227-16 Additional Data Requirements FAR 52.245-1 Government Property

U.S. DEPARTMENT OF DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT ACQUISITION REGULATION (HUDAR) 48 CFR CLAUSES

A. 2452.232-71 VOUCHER SUBMISSION (COST-REIMBURSEMENT) (FEB 2008)

(DEVIATION)

B. 2452.232-70 - PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE)

(FEB 2008) (DEVIATION)

C. 2452.237-70 KEY PERSONNEL (FEB 2006)

HUDAR 2452.237-75 ACCESS TO HUD FACILITIES

ACCESS TO HUD FACILITIES (NOV 2005) (Deviation)

E. 2452.203-70 PROHIBITION AGAINST THE USE OF GOVERNMENT EMPLOYEES

(FEB 2006)

F. 2452.209-70 POTENTIAL ORGANIZATIONAL CONFLICTS OF INTEREST(FEB

2000)

H. 2452.209-72 ORGANIZATIONAL CONFLICTS OF INTEREST (APR 1984)

I. FAR 52.252-6 AUTHORIZED DEVIATION IN CLAUSE. (APR 1984)

J. 2452.219-72 SECTION 8(A) DIRECT AWARDS (DEVIATION)

Section 8(a) Direct Award (Deviation) (MAR 2010)

K. 2452.237-73 CONDUCT OF WORK AND TECHNICAL GUIDANCE. (FEB 2006)

L. GOVERNMENT INFORMATION/GOVERNMENT-FURNISHED

INFORMATION

M. M. CONTRACTOR PERFORMANCE ASSESSMENT REPORTING SYSTEM

(CPARS)

N. TRAVEL COST

O. HUDAR 2452.239-70 ACCESS TO HUD SYSTEMS

P. 2452.251-70 CONTRACTOR EMPLOYEE TRAVEL (OCT 1999)

Q. AS-1302 POSTAWARD CONFERENCE

FAR 52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS -

COMMERCIAL ITEMS (APR 2012) – ALTERNATE I (APR 2011)

B. FAR 52.209-7 INFORMATION REGARDING RESPONSIBILITY MATTERS (FEB

2012)

FAR 52.222-22 PREVIOUS CONTRACTS AND COMPLIANCE REPORTS (FEB

1999)……………………………………………………………………………………………..77

FAR 52.222-25 AFFIRMATIVE ACTION COMPLIANCE. (APR 1984)

(d) ATTACHMENTS

(e) SOLICITATION PROVISIONS

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

INSTRUCTIONS TO OFFERORS

GENERAL INSTRUCTIONS

(2) 52.212-2 EVALUATIOIN—COMMERCIAL ITEMS………………………………… 88

(b) CONTINUATION OF BLOCK 20 FROM THE SF 1449

PERFORMANCE WORK STATEMENT

Title: Multifamily Premium Audit Services

1. GENERAL

The U.S. Department of Housing & Urban Development (HUD) provides mortgage insurance protection to HUD approved lending institutions against default by the mortgagor.

The Multifamily Financial Operations Division (MFOD) is responsible for the review and maintenance of all multifamily insured loans. Its responsibilities include the full range of transaction cycles, beginning with the establishment of the newly endorsed project, posting the initial insurance premium, billing and collecting of renewal premiums and concluding with the termination of insurance.

The Multifamily Insurance Operations Branch (MFIOB) expects to receive an estimated 2,150 new endorsements during the first 2 years of the contract due to a change in the National Housing Act that now allows Health Care Facilities to refinance. These projections come directly from the Office of Insured Health Care. After the first 2 years of the contract the expected numbers are to return to normal levels or 1,400. The number of termination requests is also expected to climb for the first 2 years of the contract as a result of the change in the Act. The number projections for the final 3 years of the contract are based on the average number of transactions processed during a three year period of normal volume. However, these numbers could increase or decrease depending on the current interest rates for these types of mortgage loans.

2. DESCRIPTION OF SERVICES

The contractor shall be responsible for assisting in the establishment of new endorsements and process termination approval requests. The contractor shall ensure that the calculations of premiums due are accurate and any refunds approved are correct.

These audits/reviews will also determine when additional premiums are due to the Department and the appropriate adjustment will be entered into the FHA Subsidiary Ledger (FHASL) system to correct the next billing for the project. The contractor shall provide, with any requests for refund, all work papers in support of the refund or additional billings. In addition to performing the audit on each newly endorsed project for insurance, the contractor shall be responsible for auditing all Office of Affordable Housing Preservation (OAHP) reengineering projects to insure that the proper spell out (MIP) has been billed, collected and the Unpaid Principal Balance (UPB) of the mortgagee agrees with that shown in the FHASL system prior to the claim payment.

3. BACKGROUND

The Multifamily Insurance Operations Branch is responsible for management of the multifamily insured loan portfolio, which includes new endorsements, collection of Mortgage Insurance Premiums (MIP’s), terminations, and performing audits and premium reviews for all projects after final endorsement. These audits often result in either additional funds being due to the Department or a refund is due the mortgagor.

This portfolio management includes processing terminations timely and processing refunds when due as a result of the termination.

4. OBJECTIVE

The objective of this contract is to provide support for the Multifamily Insurance Operations Branch. The support to be provided is in the area of premium reviews for each endorsement, file maintenance and storage as well as general clerical support.

5. SCOPE OF WORK

The contractor shall provide the following functions:

Establish new endorsements Perform project audits Insured Advances Perform project audits Insured Upon Completion Perform project audits on Portfolio Reengineering Process termination requests Assist in handling the paperwork, phone calls, and correspondence received Records management File Storage

Establish New Endorsements

The Government receives new endorsement packages, which include the mortgage note, mortgage modification agreements, initial premium collection notification and loan disbursement documents and any other documents that may be relevant to the project.

The form used for the data entry is the HUD Form 290, which is a summary of the closing and is also used to transmit project characteristic data which will be used by other parts of HUD. The contractor shall be responsible for verification of the loan and endorsement documents to ensure that they properly reflect the correct data for both types of insured projects, Insurance upon completion and insured advance or construction loans. This includes verifying that the initial premium has been calculated properly and collected at the loan closing. After each all project data has been verified, the data is entered into the FHA Subsidiary Ledger System (FHASL). The FHASL is the Department’s official billing and payment system for the Multifamily Program. FHASL is the official insurance billing and payment system for the Multifamily Insurance program. Contractors and HUD staff enter and maintain project information they perform premium review audits and augment individual project characteristic data. This is a HUD owned database. The contractor will be trained in the use of this HUD database.

Perform Premium Review Audits on Insured Advance Projects

The contractor shall perform an audit/premium review on each insured advances project after final endorsement has occurred. This shall include the verification of each advance made and calculation of the MIP (Mortgage Insurance Premium) due on the insured advance based on the number of days the mortgagor had use of the funds advanced. The audit includes verification that the mortgage notes, etc., agree with the amounts reflected on the HUD Form 290. After calculating the MIP due from initial endorsement until final endorsement either an additional premium is due or the mortgagor is due a refund through the servicing mortgagee. Once the audit information is verified for correctness by both contractor Project Manager and the GTM/GTR the contractor shall update the FHASL system to reflect either the refund or the additional premium/funds due to HUD.

Perform Premium Review Audits on Insurance upon Completion Projects

The contractor shall perform an audit/premium review on each insured endorsement upon receipt of the HUD Form 290 package which includes the same documents as stated above. A verification is made between the legal documents and the Form 290 prior to entering the data into the FHASL system. These audits are less time consuming because there is no calculation of premiums due on a daily basis as there is with Insured Advance projects. These are not construction loans as the Insured Advance projects are.

Perform Premium Review Audits on Portfolio Reengineering Projects

The contractor shall perform an audit/review on portfolio reengineering projects prior to payment of any claims by the Multifamily Claims Branch. This audit shall be conducted to resolve differences between the FHASL unpaid principle balance and the unpaid principle balance being claimed by the servicing mortgagee. The contractor/auditor shall secure copies of modifications, which have not been processed into the FHASL system.

The contractor shall process these modifications into the FHASL system and verification shall be made between the unpaid balances.

Process Termination Request

The contractor shall provide staff to receive, review, and track the approval of the termination request using a termination control log which is resident in the FHASL system. This process will be done for each request for termination of project insurance.

After the request has been approved or denied by the GTM/GTR, the contractor shall notify the servicing mortgagee of the Department’s decision via the fax or email. For each approved termination the contractor shall request the project file, insert the approval documents and assign the file to the HUD servicer handling that portfolio. When the insurance has been terminated by the GTR/GTM the file will be presented to the contractor. Upon completion of the termination process the contractor shall return the file to the termination control individual who shall enter the data into the control log and process refund vouchers to the individual handling this process. Log entries are to be made to the FHASL termination at each step of the process by the contractor.

Assist In Handling Routine Paper Work, Phone Calls, and Correspondence Received

MFIOB receives an estimated 20,000 annual telephone inquiries and correspondence from the private sector, lending institutions, field offices, Congress and Departmental staff requesting information on the multifamily housing programs, accounting information, insurance premium billings and refunds. The contractor duties include receiving, screening and referring all telephone calls, opening, sorting and distributing all incoming mail. The contractor is responsible for all typing of correspondence which is sent to lending institutions as a result of all items of work outlined above. There is correspondence generated by audits, termination of insurance and performance of mortgage modifications

Records Management

The contractor shall prepare, store, and maintain all current and future insurance files at the contractor’s off site location. Records shall be stored, maintained and disposed of in accordance with HUD Retention Schedule guidelines as detailed in HUD Handbook

2228.1 and standard federal records retention procedures. There are currently over 16,000 insurance files in storage. The contractor shall provide on-site staff to perform record management functions. The files are to be kept in a locked secure area at the contractor site. GTM/GTR may request HUD files via email or fax to be delivered to HUD staff. Therefore, the contractor shall provide currier service to deliver the requested files to HUD staff on a daily basis between the hours of 8:00 a.m. and 5:30 p.m. to be delivery within 24 hours of receipt/request. The contractor shall maintain a log so that all file locations are known and can be located.

6. GENERAL INFORMATION

Place of Performance: The Contractor shall provide 3 personnel to work on-site at HUD Headquarter at 451 7th Street, SW, Washington, DC 20410 and the remaining staff to work at the contractor site.

Hours of Operation: The contractor shall provide the services Mondays through Fridays, with the exception of Federal Holidays and Executive Order. The contractor shall establish core hours (on-duty hours) from 7:00 a.m. to 5:30 p.m. Eastern Standard Time.

Contractor Travel: The contractor will not be reimbursed for any local travel incurred during the performance of this contract.

Confidentiality of Information: Unless otherwise specified, all financial and personal data which is produced or otherwise available to the contractor during the performance of this contract, is considered confidential and will not be used for any purpose other than performance of the work under this contract. Regardless of the form of this data, the contractor agrees that no employees will disclose or allow disclosure of any such data or derivatives -thereof to third parties, except as required in the performance of this contract.

REF: HUDAR Clause 2452.239-70 “Access to HUD Systems”. The contractor shall provide a copy of each employee’s signed agreement to the GTR/GTM after award. The contractor shall implement procedures, which will assure that individual employees are made aware of this contract provision. Any data of a personal nature may be subject to Privacy Act protection and penalties.

7. TRANSITIONS

7.1 Transition In

The Multifamily Financial Operations Division (MFOD) anticipates a transition in phase.

The initial start up period will extend from the date of the award to the 30th day of performance, and must be completed by the 30th day. The contractor must be fully operational by the next day after the start up period. During this transition phase, the current contractor will be under contract to perform the support functions included in this PWS. This transition phase will allow the selected contractor to become familiar with the support functions and “ramp up” staff for the project. The transition phase may include, but is not limited to:

Reviewing explanatory documentation (paper copies or electronic files, as appropriate), including working papers and source data as well as previous contract deliverables

Briefings on selected subjects Performing Ad hoc inquiries Developing security guidelines for dedicated staff Securing dedicated office space Attending status meetings Training Moving the working files from the former location to a secured area in the contractors location Setting up an automated file tracking system

7.2 Transition Out

The Contractor shall provide a transition plan to the GTR/GTM thirty (30) days prior to the expiration of the contract. The plan shall provide a description of the transition activities to be carried out and a timeline for the implementation and completion of all final transition activities. If applicable, the successor Contractor and out-going Contractor shall work together to implement an orderly, secure and efficient transition of the contract. This includes transitioning operations, file tracking database, HUD furnished property/data if applicable, desk guides, manuals, materials and any data relative to this contract.

The Contractor shall label all processed and unprocessed documents, files and other materials and return them to GTM in a timely manner and, shall submit an electronic copy, in addition to one hard copy of the Transition Plan to the Contracting Officer and one each to the GTR/GTM sixty (60) days before contract expiration.

A smooth and orderly transition between the Contractor and a predecessor or successor Contractor is necessary to ensure minimum disruption to vital Government business. The Contractor shall cooperate fully in the transition.

The Contractor shall adhere to the same professional and ethical standards of conduct required of Government personnel. The Contractor shall NOT:

Discuss with unauthorized persons any information obtained in the performance of work under this contract;

Conduct business not directly related to this contract on Government premises;

Use computer systems and/or other Government facilities for company or personal business other than work related under the contract.

Recruit on Government premises or otherwise act to disrupt official Government business.

8. DEFINITIONS and ACRONYM S,

8.1 DEFINITIONS

Official Receipt: the receipt for the initial premium 9807form: a form submitted for requesting the termination of mortgage insurance 92080 form: a form submitted by lenders to the servicer or holder of record for any give project 290 form: a form submitted by HUD field offices which is a summary of the closing and used to enter the project into FHASL for premium billing

8.2 ACRONYMS

FHA: the Federal Housing Administration FHASL: FHA Subsidiary Ledger System, the Departments official Multifamily premium billing and receivable system

MFIOB: Multifamily Insurance Operations Branch

9. TRAINING

The Government shall provide training to the contractor for all items of work specified in the contract as well as systems access.

Periodic training will be provided by HUD staff at a training site designated by the GTM for the contractor as necessary to outline changes in process procedures and changes in requirements, which are within scope of the contract.

The Government shall provide VPN connection for access to the FHASL system. HUD will provide system access at the contractor site to allow HUD compatible equipment to access the appropriate HUD systems.

The Government will provide for each of the three contractor personnel required to work on site at the HUD Headquarters Building, 451 - 7th Street, SW., Washington, DC 20410: (1) a workstation to include a telephone, personal computer, and a shared printer facsimile and copying machine, and (2) standard supplies such as writing pens, paper, staples, scissors, etc. For the contractor employees working at the contractor's site, the Government will furnish 27 five-drawer lateral file cabinets. These cabinets are to be used to store the work files explained under the file maintenance section of this document.

10. Quality Assurance (QA) The Government shall evaluate the Contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. If defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable defect rate(s).

11. CONTRACTOR FURNISHED ITEMS AND RESPONSIBILITIES

11.1 Resources Provided By Contractor

A. Staffing Requirement. The Contractor shall provide office space to accommodate staff member’s offsite. This space shall be fully dedicated to this contract. Three (3) contractor employees will be located in the HUD building in the Multifamily Insurance Operations Branch, and the remaining contractor employees shall be at the contractor’s site. These three shall perform the functions of mail handling and distribution, receiving terminations requests, logging and control each termination request, preparing correspondence for terminated projects, maintain filing of all documents for 15,000 active and 1,000-2,000 terminated projects, prepare files and maintain tracking system of all files forwarded to contractors of-site location for audits/reviews.

B. Equipment/Supplies. The contractor shall provide all office supplies including an estimated 2,400 file folders used to establish new endorsements and audit files per year, along with furniture (desks/work tables, computer tables, bookcases, etc.) for the performance of this contract. The contractor shall furnish the following HUD compatible equipment for their staff to be housed off-site:

PC’s with peripheral equipment Printers Fax machine dedicated 100% to this contract Dedicated telephone Fax line Dedicated telephone lines for this project

C. The contractor shall be responsible for providing or otherwise obtaining all contractor on-site repairs and/or maintenance of the above equipment. The equipment is to be operational at all times.

D. The contractor shall provide carrier service for the pick-up and return of documents used to perform the functions of this contract. All documents are to be delivered to the Multifamily Insurance Operations Branch in HUD designated space specified by the

GTM.

E. The contractor shall deliver all government furnished property that has not been turned over to the new contractor within 5 days before expiration of contract.

11.2 Staffing Requirements

Contractor Personnel: The Contractor shall provide a Contract Manager who shall be responsible for the performance of work. This Contractor personnel is considered Key Personnel by the Government. The name of this person and an alternate show shall act for the Contractor when the manager is absent shall be designated in writing to the Contracting Officer. The Contract Manager or alternate shall have full authority to act for the Contractor on all contact matters relating to daily operations of this contract. The Contract Manger or alternate shall be available between (insert the hours, i.e., 8:00am to 4:30pm), Monday through Friday, except Federal Holidays or when the Government facility is closed for administrative reasons. See detailed description of labor category Attachment C..

11.3 Quality Control Plan.

The contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP) to ensure the requirements of the contract are provided as specified. The contractor shall provide a QCP describing the inspection system for the services required in the PWS. The contractor shall develop and implement procedures to identify, prevent and ensure non-recurrence of unacceptable services. The contractor shall update the plan as changes occur and changes shall be submitted for review and acceptance by the Contracting Officer. 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 establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system.

12. DETAILED TASK DESCRIPTION

The Contractor shall provide the following tasks:

a) Project Work Plan

The Contractor and the GTR/GTM shall meet within three business days from contract award to discuss the specific steps necessary to accomplish the objectives of this contract.

The Contractor shall provide a detailed work plan via email within 10 business days from the 1st meeting to the GTR/GTM.

b) Reviews/Amortization Schedules for M/F Insurance Billings

1. Receive And Review Field Office Documents For Final Endorsement Daily. The contractor shall receive final endorsement documents. The contractor shall review all legal documents for accuracy, and request any additional documents that are necessary in order to complete the audit and prepare an accurate amortization schedule reflecting the multifamily insurance annual premiums due the Department. Notes of all actions taken to secure additional documents are to be made to the working file.

The contractor shall prepare a premium computation worksheet listing all advances to the mortgagor and all insurance premiums paid as needed.

2. Input Data in FHA Subsidiary Ledger System Daily. The contractor shall use the FHASL system for data input. This is an on-line system. Data shall be input using a series of screens. The average number of data elements required to be entered per screen is 10. Other input transactions the contractor shall make consist of adjustments to premium accounts receivable, premium overpayments and billings.

All premium reviews/audits are to be reviewed by the Project Manager of the contract for accuracy prior to approval. Cash amounts are to be maintained by project and submitted monthly to the GTM. In addition, the contractor shall review the list of delinquent bills before releasing the refund voucher on each project. The refund is to be recalculated to ensure that no additional funds are due the Department.

3. Prepare Correspondence, Review Amortization Schedules, Cover Letters To Mortgagees And Refund Voucher If Necessary. Within 15 business days of receipt of all final endorsement data from the field office, the contractor shall mail the review data file including the amortization schedule to the mortgagee daily. The amortization schedule contains the annual premium amount to be paid by the mortgage.

4. Maintain Project Files. For each insured project file, the contractor shall establish and maintain a complete file of all pertinent documents. An inventory of files shall be prepared and be available on request by HUD. This inventory is the result of the required file tracking system to be used in maintaining the work files.

c) Termination of M/F Insurance Processing

1. Receive HUD Form 9807, Insurance Termination Request for Multifamily Mortgage.

The contractor shall open mail, sort according to termination type and refer each request to Housing Management for approval. Form 9807’s shall be dated and logged into a Termination Control Log for control and tracking purposes. The contractor shall review HUD Form 9807 for accuracy and completeness - verifying mortgagee identification number as it is in the database. Also, the contractor shall check delinquent mortgage listing to ensure that no outstanding premiums are due on this project or by the mortgagee for any other insured projects.

2. All terminations require prior approval and shall be processed within ten (10) business days from date of approval. Any termination request that has not been approved within ten (10) days will reported to the GTM/GTR. A monthly report will be prepared and submitted to the GTM on the first Friday of each month showing the status of all terminations. The termination activity is to be included in the monthly deliverable report to be discussed later in this document.

3. Terminations Control Log. The contractor shall track all terminations from the date of receipt to the date of final completion, including correspondence to mortgagee holder and servicers, and refund. A monitoring control log report shall be maintained by the contractor and shall be reported to the GTM/GTR on a monthly basis on the first Friday of the each month.

d) Clerical Support. The contractor shall perform the following:

1. Receiving Mail. All MFIOB correspondence consisting of approximately 1,000 pieces of mail weekly shall be opened, date stamped, and processed within 24 hours after receipt.

Receiving Telephone Inquiries. Inquiries shall be answered within three (3) rings and shall be referred or a message taken to the GTM.

Prepare Correspondence for HUD Signature. All correspondence that is required in connection with MFIOB functions shall be prepared in the format stipulated by the GTM/GTR and submitted to the MFIOB for review and signature. A copy of all correspondence shall be maintained in the subject correspondence and project file as appropriate. All of the correspondence is of the preformatted variety. The templates will be supplied by the GTM.

13. DELIVERABLES AND MILESTONES

The Contractor shall complete all work, deliver all deliverables and adhere to all milestones as specified herein. Any papers, recommendations, etc., that the Contractor submits are drafts, not final copies. The Government reserves the right to make changes on delivery dates.

Deliverables Frequency # of Copies Medium/Format Submit To

Due Date

1. Provide a business plan describing the manner in which the contractor proposes to perform the tasks outlined in this document.

Within one week of the award date.

1(one) original and 2 copies.

Paper CO, GTR and GTM

Within 5 working days after award.

2. Provide Analytical;

Ad Hoc Reports and data extracts. Provide a detailed monthly activity report and status meeting including number of items completed by project number for each item of work stated in this document. It is to match the invoice.

Monthly 1( one) original and 2 copies

Paper CO, GTR and GTM

Within 5 working days following the end of each calendar month.

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

13.2 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 during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QSAP).

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.

The QCP shall be delivered within 30 calendar days after contract award (or with the Contractor’s proposal if it is an evaluation factor). Three copies of a comprehensive written QCP shall be submitted to the GTR and within 5 working 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.”

STATUS REPORTS

The contractor shall provide the GTR/GTM with the monthly status reports for tasks performed under this contract. The GTR/GTM will provide the contractor with all required reporting formats. In addition, the contractor shall provide the GTM/GTR with a contract report, which indicates the number of audits completed, which shall include comments on accomplishments, delays encountered and resolution of project problems.

A monthly report shall be provided to the GTR/GTM. The GTM/GTR shall provide the format to be used to report all activities performed by the contractor each month. The example of the report format will be supplied by the GTM.

DELIVERABLES

The contractor shall provide to the GTM on the fifth working day of each month a detailed activity report which is to depict all items of work performed by the contractor during the previous month. This report is to show the opening balance of each item and the closing balance as well as the total performed. This report is to be by project number and display the resulting refund or bill as appropriate. The numbers shown as work items completed are to match the corresponding numbers billed for on the corresponding invoice. The GTM will not approve the invoice for payment if the items do not balance.

The GTM shall provide this format to the contractor to be used for this deliverable.

15. PERFORMANCE REQUIREMENTS SUMMARY:

The Contractor service requirements are summarized into performance objectives that relate directly to the requirement’s essential items. The performance threshold briefly describes the minimum acceptable levels of service required for each requirement. These thresholds are critical to the requirement’s success.

The PRS headings are defined as follows:

Performance Measure – This column lists the service the Contractor must perform as indicated in the PWS.

Performance Objectives (PWS Reference) – This column lists the applicable outcome (service required) as stated in the PWS.

Performance Standard for Excellence – States the performance standard(s) that the Contractor must meet as set forth for completeness, reliability accuracy, timeliness, quality

Minimum Acceptable Quality Level (AQL) – percentage or minimum required acceptable level of service, [i.e., no more than one customer complaint per report]

Surveillance Method – Lists the assessment/monitoring method the Government will use to evaluate the Contractor’s performance in meeting the contract requirements and indicates who performs the surveillance (these are sample surveillance methods. This is a note to the Program Office only and should not appear in the final PWS [i.e., random sampling (evaluate randomly selected samples of the lost to determine the acceptability of the entire lot), 100% inspection (inspect and evaluate performance each time task is performed), periodic surveillance (monthly, quarterly, semi-annually, etc.), validated customer compliant, or any surveillance method used in the commercial market to survey the required service.])

Performance Measure

Performance Objective Performance Standard

Minimum Acceptable Quality Level

Surveillance Method

1. Establish New Endorsements

Data entry is to be perform within 2 days of receipt of all appropriate documents

All documents are to be entered by the contractor

Two (2) work days following the receipt of necessary documents.

DAP-FHASL

Reconciliation performed twice monthly on the 1st and 15th of each month.

2. Perform Premium Review on Insured Advance Projects

Completion within 2 workdays of receipt and to HUD official for approval within 5 workdays

All reviews are to be performed by the contractor with the exception of Hospital and Health Care projects.

Completion within 2 workdays of receipt and to HUD official for approval within 5 workdays

Approval by HUD senior staff

3. Perform Premium Reviews on Insurance Upon Completion

Completion within 2 workdays of receipt and to HUD official for approval within 5

All reviews are to be performed by the contractor with the exception of Hospital

Completion within 2 workdays of receipt and to

Approval by HUD senior staff

Performance Measure

Performance Objective Performance Standard

Minimum Acceptable Quality Level

Surveillance Method projects workdays and Health Care projects.

HUD official for approval within 5 workdays

4. Perform Premium Reviews on Portfolio Re-engineering projects

Completion within 2 workdays of receipt and to HUD official for approval within 5 workdays

All reviews are to be performed by the contractor with the exception of Hospital and Health Care projects.

Completion within 2 workdays of receipt and to HUD official for approval within 5 workdays

Approval by HUD senior staff

5. Process Termination Requests

All 9807’s are logged upon receipt. Log entries are made at each step of the process.

Notifications are faxed upon receipt.

Correspondence is sent to lenders within 2 workdays of approval by senior staff

Correspondenc e is sent to lenders within 2 workdays of approval by senior staff

Approval by senior HUD staff.

6. Paperwork, telephone and correspondence

Telephone inquiries are handled upon receipt and forwarded to appropriate individual.

Telephone inquiries are handled upon receipt and forwarded to appropriate individual.

Correspondence is mailed with 2 workdays of receipt.

Telephone inquiries are handled upon receipt and forwarded to appropriate individual.

Correspondenc e is mailed with 2 workdays of receipt

The control log will be review by

GTM.

7. Records Management

All file requests are logged immediately.

All files are secure and never misplaced.

Requests are handled and delivered within one business day.

All files are secure and never misplaced.

Requests are handled and delivered within one business day.

Logs will be reviewed by HUD staff.

8. File storage Files must be maintained in a secured area which manned.

Files must be maintained in a secured area which manned.

Files must be maintained in a secured area which manned.

Inspection by HUD staff.

Place the below performance standards in the above format (chart).

• Performance Standards outlined below by task and function.

Establish New Endorsements: Each endorsement package is to be reviewed for completeness and correctness. Each project package for initial endorsement is to contain the following documents, the form 290, the official receipt, and the mortgage note with all modifications. Projects for final endorsement are to have all of the items above and the schedule of advances, form 92023 and any other random documents that may be submitted. Each project package is to be entered on the 290 control log by project number before it is entered in to FHASL. Packages with missing or incomplete items are to be forwarded to the Housing contact for resolution. Contact with the liaison is to be made weekly and the log updated for each project. A reconciliation with the DAP is to be verified twice monthly. Projects are to be entered into FHASL within 2 workdays of receipt.

Perform Premium Review on Insured Advance Projects:

Reviews are to be completed within 2 workdays of receipt and to the HUD official for approval within 5 workdays of receipt. This time frame is also for re-reviews. No errors are to be tolerated.

Perform Premium Review on Insured Upon Completion Projects:

Reviews are to be completed within 2 workdays of receipt and to the HUD official for approval within 5 workdays of receipt. This time frame is also for re-reviews. No errors are to be tolerated.

Perform Premium Review on Portfolio Re-engineering Projects:

Reviews are to be completed within 2 workdays of receipt and to the HUD official for approval within 5 workdays of receipt. This time frame is also for re-reviews. No errors are to be tolerated.

Process Termination Requests:

Form 9807 is received, logged in the termination log with FHASL, and sent to the Housing liaison…