Q A_Round_1_12-3-14_(Final).pdf

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

OFFICE OF THE CHIEF PROCUREMENT OFFICER

AMMENDMENT 1 TO FIRST ROUND OF Q&A.

Reference: Questions in response to Solicitation Number DU100R-14-R-0004 HECM Business Services Provider Service

To: Prospective Offerors

The following questions and answers addressed below are hereby incorporated into this solicitation:

THE CLOSING DATE OF THIS SOLICITAITON IS TUESDAY, DECEMBER 9, 2014

at 2:00 p.m. E.S.T.

Q1. Page 68 states "contractor shall send daily disbursement files to ...Treasury". Please confirm if the BSP solution needs to send disbursement files directly to Treasury, or whether the disbursement file will be sent to Treasury through a HUD-managed Secure Payment System (SPS) upload process.

R1.Yes, currently the disbursement files are sent to the designated HUD server for processing through the SPS upload process. The Government will be transitioning to Treasury’s Payment Automation Manager’s (PAM) Standard Payment Request (SPR) format effective October 1, 2014.

Q2. Page 68 states "contractor shall send daily disbursement files to FHASL (FHA02)." Please confirm if the BSP solution needs to be interfaced with FHA02 module of FHASL for cash data?

R2. Yes

Q3. Regarding disbursements, in the HECM BSP solution, will HECM Notes use a Treasury SPS or bulk scheduling process for disbursements, or utilize the ZBA process?

R3. The Government currently uses ZBA, but will be transitioning to PAY.GOV

Q4. If offeror believes a shorter transition period than the 9 months outlined in solicitation is achievable, can offeror submit a proposal with a shorter transition period (i.e., 3 months instead of 9)?

R4. Offerors shall submit a transition plan in accordance to the PWS; however they may submit a shorter or longer plan as an alternative demonstrating how they plan to meet the requirements as stated in the PWS.

Q5. If offeror is allowed to submit a shorter transition period proposal, is that preferred by HUD or should offeror submit the 9 month transition period option alongside shorter transition period proposal?

R5. Yes, See R4.

Q6. If we could transition sooner than 9 months should we propose accordingly? Is HUD open to reducing the transition period?

R6. See R4.

Q7. The transition timeline seems short for implementation of a new HECM solution, interfaces, data migration, and supporting business processes. Is reuse of the existing HERMIT solution an acceptable approach for HUD?

R7. See R4 the performance work statement provides the requirements and desired outcome; the offerors are to propose the solution.

Q8. In order to encourage competition for this procurement, will the government consider a longer transition and testing cycle to allow bidders to modify their systems to meet the extensive requirements specified in the Performance Work Statement?

R8. See R4.

Q9. Per page 95, delivery of Business Services via Web-based IAW PWS paragraph 5.2.3 is due no later than 61 days after contract award. However, task 5.2.1, not 5.2.3, addresses the 60 day Start-up transition-in requirements. Please clarify.

R9. The Delivery, Testing, and Validation of Web-based HECM Business Services (PWS Paragraph 5.2.3) shall begin no later than 61 business days after contract award. The Government expects that the requirements under Paragraph 5.2.3 will not be finalized until successful parallel testing is completed IAW Paragraph 5.2.4, Task Four – Parallel Testing. During parallel testing the Government expects the contractor to make any necessary changes to its HECM business services solution prior to acceptance by the Government.

Q10. Tasks One through Four in the Performance Work Statement (PWS) include: (i) Transition- In; (ii) Independent Verification and Validation; (iii) Delivery, Testing, and Validation of Web-based HECM Business Services; and (iv) Parallel Testing. According to the Solicitation/PWS, HUD expects all these tasks to be completed in 9 months through CLIN 0001. Given the extensive scope and inherit risk contained in the HECM Business Services requirements included in the PWS, we believe that the transition period is extremely short in time. Could HUD consider extending the duration of this CLIN to mitigate this risk?

R10. See R4.

Q11. The solicitation, page 1, shows that the base period allows for a 9 month transition. If, per page 95, the BSP solution is to be delivered in less than 61 days, is the government expecting 7 months of parallel operations? Please clarify.

R11. See R9..

Q12. Would the government be open to having the Offeror propose a shorter transition-in period? The transition-in period would likely vary widely based on the proposed BSP solution, and a shorter transition-in period, where possible, would be more economical for the Government.

R12. See R4.

Q13. Regarding collections, in the HECM BSP solution, will HECM Notes use PAY.GOV for collections, or use the PCC-OTC process?

R13. The Government currently uses PCC-OTC, but will be transitioning to PAY.GOV.

Q14. Is HUD seeking an existing solution or looking for someone to build a solution from scratch?

R14. The Government is seeking a contractor to provide a Business Service Solution using state-of-the-art web-based technology that can support HUD’s Home Equity Conversion Mortgage (HECM) insurance program.

Q15. What percentage of system functionality must exist upon contract award? How about after 61 days from contract award?

R15. This information is not available; See R14.

Q16. Should offerors submit past performance for only government agencies or can it include non-government clients as well?

R16. Offerors may submit past performance for government and non-government clients.

Q17. Is the past performance survey form required for subcontractors as well as the prime?

R16. Yes, See Section L12 and Section M4 Factor 4.

Q18. Per Section 1.7 of the PWS, a Transition In Plan is required with the proposal. Where should offerors include the Transition In Plan (i.e. as an Appendix to the Technical Proposal) and is it excluded from page count?

R18. Amendment 1 will add Task One – Start Up/Transition-In as part of Factor 1 Technical Understanding/Approach and will be included in the page count. The transition plan shall be evaluated as a part of Factor 1.

Q19. Per Section 5.2.2 of the PWS, an OCI Mitigation Plan is required with the proposal. Where should offerors include the OCI Mitigation Plan (i.e. as an Appendix to the Business Proposal) and is it excluded from page count?

R19. The Mitigation Plan is not included in the page count and will not be evaluated. You may attach it as an Appendix.

Q20. Section L. 11 on page 84 states, “Text color shall be black. Color may be used in graphics or charts for greater clarity at the offeror’s option.” Will the Government allow headings/subheadings to be in another color other than black such as dark blue?

R20. Headings and subheadings may be in other colors other than black; however, they must be legible.

Q21. Section L.11 on page 85 states, “Not included in this page limitation are the following: … Charts, such as Management Structure Organizational Chart(s).” Will the Government clarify what other charts they will consider not to be included in page count?

R21All charts are excluded from the page count.

Q22. Section L.11 on Page 85 of the Solicitation states “offerors shall submit a Proposal Matrix using the table below or similar format …” Will the Government confirm that the proposal matrix is not included in page count?

R22. See R21.

Q23. Is it a requirement or desirable to have Three (3) PMP Certified Key Personnel?

R23. Amendment 1 will amend Factor 2 Management Plan and Factor 3 Key Personnel to state 1 Certified Project Management Professionals (PMP) or Alternated Certified Project Personnel.

Q24. In order to encourage competition for this procurement will the government consider equivalent experience and/or certifications in lieu of the specific certifications (CSEP or CSDP) for the Application Developer II key personnel position listed on page 89 of the solicitation?

R24. Yes. Amendment 1 revised the key personnel to 1 certified PMPs (See R23).

Q25 What specific rights does HUD have to the existing HERMIT system and its customizations?

R25. None, HERMIT is a proprietary system.

Q26. Does HUD retains the right to rehost the HERMIT solution with a vendor other than RMS?

R26. No.

Q27. What is the scope of transition support included in the existing contract?

R27. The incumbent will work with the Government and the successor contractor to ensure a smooth transition of HECM services.

Q28. Is the existing hardware and equipment transferable to new contractor at no cost?

R28. No, there is no hardware or equipment to be transferred to the new contractor.

Q29. Will the Government provides the database specifications (tables, columns and formats) for HERMITS to assist vendors in determining scope and level of effort for modifications, data mapping and transition?

R29. No, See R26.

Q30. Will the Government share its requirements and other technical documents developed during the HERMITS contract with the vendor community prior to the bid deadline as this could greatly impact delivery timeframes?

R30. No, See R26.

Q31. How many HECM loans, by type, are in the legacy portfolio?

R31. As of May 31, 2014:

873,929 HECM insurance endorsements to date (Oct 1, 1989 through May 31, 2014) $200.0 Billion 224,897 loans have terminated $47.1 Billion 627,756 loans are actively insured $148.7 Billion 21,704 loans are assigned to HUD as active notes in inventory $4.2 Billion

As of July 7, 2014, 627,468 loans are actively insured.

Q32. How many end users do the HECM solution currently supports?

R32. As of December 2013, there were approximately 2,600 authorized users with 130 distinct lender, servicer, and investor groups.

Q33. Can HUD provides specifications for all HECM interfaces?

R33. Yes, See Attachment A of the Round One Amendment 1 Q&A Interface Requirements

Q34. Given that modifications to the HECM system can vary in scope and effort, would HUD consider adding CLINs to allow for effort based pricing of future enhancements?

R34. No.

Q35. Will the government fund software changes that must be made to adapt the technology to future legislative, regulatory, and other administrative changes in policies and procedures?

R35. Yes, included in the fixed price line item. See the pricing sheet Attachment B.

Q36. If the government will not fund modifications for software changes that must be made to adapt the technology to future legislative, regulatory, and other administrative changes in policies and procedures, please provide HUD’s estimate of the number and size of these changes (by numbers of hours to reprogram) on an annual basis so that this information can be evaluated for pricing.

R36. The government will be funding software changes which is included in CLIN 0002,1002,2002,3002 and 4002 Maintain HECM Business Services under the fixed price line items, See Attachment B Pricing Sheet.

Q37. Given that the preponderance of work for this effort is related to a web based IT solution and data management, why was NAICS 522390 "Other Activities Related to Credit Intermediation” was chosen for this solicitation?

R37. This is not an IT requirement. See R14.

Q38. Given that the preponderance of work for this effort is related to a web based IT solution and data management, would HUD consider using NAICS 518210 "Data Processing, Hosting, and Related Services” for this solicitation?

R38. See R37 and R14.

Q39. Does the Government have detailed requirements supporting any of the summary requirements listed under each of the Tasks in the Performance Work Statement?

R39. R39. This is a Performance Work Statement, the government identified the output, the contractor is to come up with their approach/solution.

Q40. What type of upload currently being done by user?

R40. Users upload HECM insurance portfolio data via Business-to-Government (B2G) services.

Q41. Which are those systems where users perform upload activity?

R41. Users will upload from their proprietary servicing systems to the contractor’s business service solution.

Q42. What type of data is being uploaded by user?

R42. Users transmit HECM insurance underwriting, servicing, and other portfolio management information.

Q43. What type of changes [are] expected for GNMA' HECM mortgage-backed security (HMBS) program?

R43. The Government anticipates that changes may be made to add additional fields to the data interface files sent to GNMA based on regulatory/legislative changes.

Q44. Are there any interfaces which are affected by changes to these program[s]?

R44. See R43.

Q45. What is the volume of current systems in terms of high volume and peak users?

R45. There are approximately 3,500 users. These users are classified by the groups identified in Paragraph 1.2.3, HECM User Groups, of the PWS.

Q46. How CHUMS interface file is being used currently?

R46. CHUMS is the sole source of operational information for all single family mortgage applications and endorsement activity.

Q47. Which systems are updated using CHUMS interface file?

R47. The relevant system updated by CHUMS would be the contractor’s HECM business services solution.

Q47. Page 41-43 of the PWS, Section 5.2.3:

Q48. What is the volume for Active loans & historical loans?

R48. See R31.

Q49. What is being currently maintained on IBM mainframe?

R49. See R33. The IBM mainframe hosts several FHA applications.

Q50. Out of the interfacing systems which are Mainframe based, Client Server based and Web based please clarify.

R50. Most HUD systems are mainframe-based (IBM or Unisys) with web-based front-ends.

Example: CHUMS is hosted on the Unisys mainframe and the FHA Connection is the web-based front-end. The Government cannot comment on Lender or FHA Third-Party provider systems.

Q51. What is the file type used to sync interfacing system with Main system (HERMIT), please elaborate.

R51. See R25 and R26.

Q52. The interfaces exists as of today, will continue to exists after transition out period?

R52. Yes. The new contractor shall provide all interfaces needed to support the HECM program as stated in Paragraphs 1.2, 5.1, 5.2, and 6.1 of the PWS.

Q53. It is expected that new contractor developed these interface in the new system?

R53. Yes. If new interfaces are needed, the contractor shall develop, test, and implement these interfaces from its Business Service solution to a government or private application as required and discussed in Paragraphs 1.2, 5.1, 5.2, and 6.1 of the PWS.

Q54. What are the interfaces exist for third party vendors?

R54. FARETS, REKON, BANKO, banking institutions (NACHA file format), and bulk imaging systems.

Q55. How these interfaces are used currently?

R55. Tax monitoring-FERETS, releases-REKON, bulk imaging, NSC LSC banking institutions-NACHA), death and bankruptcy-BANKO).

Q56. Does HUD expects to continue these interfaces after transition out period?

R56. Yes, the new contractor must have interfaces with the systems (and subsequent upgrades) as stated in the PWS Page 44-45, Section 5.2.4:

Q57. How long existing system (HERMIT) will continue after transition out period?

R57. The Government does not anticipate continuing the existing HERMIT application after successful parallel testing.

Q58. Is there any time frame decided when user required to stop inputting HECM data into

HERMIT?

R58. See R57.

Q59. In the current system what data comes into the systems? And how it is sync into the systems?

R59. HECM application and endorsement activity. Data is transferred via automated interface files.

Q60. In the current system what data goes out of the systems?

R60. HECM endorsement and servicing information.

Q61. Please clarify what support is expected for efforts by GNMA and by Government- Sponsored Enterprises to develop and to implement a liquid secondary market for HECM loans.

R61. HECM BSP will support GNMA and GSEs by sending HECM data to their automated systems via bi-lateral interfaces.

Q62. What data is transmitted using bulk file?

R62. HECM endorsement, servicing, investor, and case management data.

Q63. What is the frequency of this bulk data transmission?

R63. Bulk data transmission can be made daily.

Q64. What is the typical volume of bulk data?

R64. The average number of electronic data interchanges (EDI) and/or B2G batch files between the various interfaces is 600 per month. Data files can consists of a very few transactions to transactions ranging in the hundreds of thousands.

Q65. Please clarify the current size of HUD’s HECM portfolio.

R65. See R31.

Q66. Please clarify if the contractor is required to provide staffing for the HECM business services helpdesk at a HUD facility, or at the contractor’s facility.

R66. The contractor will provide the HECM business services Help Desk at the contractor’s facility.

Q67. Please clarify if HUD requires constant monitoring and updating of property valuation as a component of overall HECM portfolio management.

R67. The offeror’s HECM BSP solution must provide the on-line data entry fields to allow users to enter reverse mortgage loan servicing information and the BSP application must maintain accurate, complete audit trails as stated Paragraphs 1.2.2, 5.2, and 6.1 of the

PWS.

Q68. Please confirm whether a lien report is a component of the HECM eligibility assessment, specifically, which liens are considered.

R68. See R67.

Q69. Please clarify whether periodic monitoring is required for the HECM Insurance-In-Force (IIF) portfolio.

R69. The offeror’s HECM BSP solution must provide fields that support this type of portfolio management which is handled by HUD users. The business solution must also reconcile and maintain audit trails for all changes. The HECM BSP solution must validate and report successful loading of interface files. In the event of unsuccessful loading of any interface file, the Contractor shall provide an automated failed interface report with specific error details for review by the Government. The Contractor shall then be required to resolve all interface loading errors within one business day.

Q70. What is the current hosting environment, please elaborate.

R70. This is proprietary Information.

Q71. What is the size of overall database size?

R71. This is proprietary Information

Q72. How documents or attachment stored on in the database

R72. This is proprietary Information

Q73. New contractor will have access to interface systems documents at the time of integration?

R73. The Government will facilitate meetings with respective interfacing systems and the contractor’s HECM business services solution.

Q74. What support is expected by new contractor from existing contractor?

R74. The Contractor shall provide all tasks, requirements, and deliverable stated in the PWS. The Government will facilitate meetings between the incumbent and the follow on contractor as needed in order to provide a smooth transition of HECM services. However, the Government cannot determine what level of support the new contractor will need nor the level of support that will be provided by the incumbent.

Q75. What is the involvement of existing contractor to support the transition?

R75. The incumbent will work with the Government and the successor contractor to ensure a smooth transition of HECM services.

Q76. What will be responsibilities of existing contractor during the transition period?

R76. The Government expects the incumbent to provide a seamless, logical, error-free, and efficient transition from the incumbent’s hybrid COTS environment to the follow-on Contractor’s SaaS/ITaaS environment.

Q77. For this procurement, could HUD consider changing the NAICS code 522390 (“Other Activities Related to Credit Intermediation/Loan Servicing”), with the size standard of $19 million? Five years ago, the HECM BSP procurement, with very similar scope and objectives, was competed under the NAICS code 519190, “All other Information Services”, which has the SBA size standard of $25.5 million. Alternatively, since the bulk of the work is related to IT hosting and data processing requiring strong corporate capability and experience, it would be prudent to change the current size standard contained in the RFP. Would HUD consider using NAICS Code 519190 as before? This will enable more mature and experienced small businesses to respond to the RFP and minimize the government's exposure.

R77. No, See R37 and R14.

Q78. Is FAR 22.1200 Executive Order 13495, Nondisplacement of Qualified Workers Under Service Contracts, a part of this requirement? If so would the HUD consider changing the requirement for Letters of Commitment, for all contractors except those consider for award.

Since the Government is asking the contractor to make a commitment to the employee, and that employee may not be able to be considered at award by the contractor

R78 Letters of Commitment are required for all subcontractors and key personnel.

Q79. Paragraph L.5. Intent To Submit A Proposal encourages the offeror to submit an Intent to Submit a Proposal no later than noon, July 10, 2014. This is for planning purposes.

R79. No.

Q80. Is this conference being recorded? Will it be possible to view it at a future date?

R80. Webcast Link is http://youtu.be/M6PfFylCSuU. Pre-proposal slide are posted on Federal Business Website.

Q81. I would like to know if the questions from the conference were posted yet and if so, could I receive the list of questions or know the link to where the questions are posted?

R81. See R81.

http://youtu.be/M6PfFylCSuU