Revised_PWS_2-19.pdf

Attachment 1

Performance Work Statement (PWS)

U.S. Department of Housing and Urban Development (HUD) The Single Family Post Insurance Division

Project Title: Single Family Supplemental Claims Processing, Business Process Improvement

Property Disposition Support Services

February 19, 2016

SECTION C – PERFORMANCE WORK STATEMENT

C-1 GENERAL INFORMATION

1.1 General: The Department of Housing and Urban Development (HUD)/ Office of The Single Family Post Insurance Division (SFPID) is seeking Contractor support services to provide business process improvement, control and risk-based processing of supplemental claims, and to review, verify and key data into the Single Family Acquired Assets Management System (SAMS/A80S) and provide support to the Homeownership Centers (HOCs) and Headquarters staff.

1.2 Background: The U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) provides mortgage insurance for lenders against losses from financing the purchase of single family homes and disposes of all properties acquired in exchange for the payment of insurance benefits FHA has a need to obtain support to assist in the control and processing of supplemental insurance claims and in maintaining its database of vendors (i.e., Payees) that support the Single Family Property Disposition (SFPD) Program.

The Single Family Post Insurance Division (SFPID) has two Branches: the Single Family Claims Branch (SFCB) and the Single Family Acquired Assets Branch (SFAAB). Support is required for the work of both Branches and referred to as Task 5.1 and Task 5.2, respectively, throughout this PWS.

I. SFCB Support

When a homeowner defaults on a Single Family FHA-insured mortgage, the mortgagee presents a claim for insurance benefits to the SFCB. The SFCB is responsible for the payment of insurance benefits based on claims filed by FHA-approved Lending Institutions (i.e., mortgagees). Other responsibilities include the receipt, safekeeping and disposition of mail and correspondence relating to claims processing, claim forms, and other miscellaneous documents. To ensure that insurance claims are reviewed and processed in an accurate and timely manner, the SFCB requires support in its control, processing payments of supplemental claims, delivery of incoming mail, and file maintenance.

In general, claim processing is highly automated and carried out by the Single Family Claims subsystem (A43C) of the Single Family Insurance System (SFIS/A43) /Insurance in Force (IIF). Approximately 80 percent of claims are processed automatically and an estimated 20 percent are suspended requiring HUD staff review. The supplemental claims payment process is a manual process. Within six months of the final/full claim payment, servicers may elect to submit a supplemental claim for forward mortgages, which will be reviewed and processed. Supplemental claims are processed utilizing the A43 and A43C systems.

The SFCB has two Sections: the Financial Operations and Control Section (FOCS) and the Review and Compliance Section (RCS). The FOCS is responsible for the following financial activities: processing manual payment requests, collections, administrative offsets, disbursements and reissued payments; updating the Accounts Receivable Subsystem (ARS); reviewing and routing mail (e.g., correspondence, claims) received by SFCB; and maintaining files of claim source document forms. The RCS is responsible for reviewing and processing supplemental and suspended claims (claims that fail A43C system edits). Also, the RCS provides technical guidance to mortgagees regarding the proper submission of insurance claims.

During the performance of this contract, the Contractor shall discuss improvements to the process outlined in this PWS to improve overall contract performance. The Contractor must coordinate any such improvements with the Government Technical Representative (GTR) and Government Technical Monitor (GTM). Any improvements which are determined to change the scope of the contract or increase costs must be described in writing, submitted to the GTR, and then approved by the Contracting Officer (CO) prior to implementing any changes in performance of any of the contracted services.

II. SFAAB Support

HUD acquires and sells approximately 70,000 single family properties annually under its SFPD Program. To operate this program, HUD employs approximately 120 staff at its Headquarters in Washington, DC, and four HOCs across the nation (Philadelphia, PA; Atlanta, GA; Denver, CO; Santa Ana, CA) and utilizes SAMS to manage and account for its portfolio of acquired properties.

SAMS is a HUD-operated management and accounting system in a HUD-controlled automated processing environment. SAMS maintains approximately 100,000 profiles of payees who perform services required to hold, market, and sell HUD’s single family property inventory. Currently, approximately 800 payee file maintenance activities are processed per month. The system disburses approximately $400 million annually via Electronic Funds Transfer (EFT) for services necessary to maintain these properties in a safe and secure manner.

Payee File Maintenance (PFM) activities provide support to program operations by maintaining a database in SAMS that includes a profile of each vendor and taxing authority to which HUD makes payment. SAMS currently contains approximately 100,000 vendors including: 90,000 real estate brokers; 1,000 trade and service vendors; 200 closing agents and 5,000 other “one-time” payees; and, it periodically pays various taxes and assessments to any of approximately 5,000 taxing authorities nationwide. Also, HUD occasionally leases single family properties to individuals, local governments, or non-profit organizations. Lessee data is maintained in the PFM database.

In accordance with the Debt Collection Improvement ACT (DCIA), HUD must process all applicable payments via EFT through the Automated Clearing House (ACH) network. PFM activities also include maintaining a database of vendor EFT information (i.e., bank account information).

Marketing and Management Contractors (M&M) and HOC staff complete SAMS forms with information pertaining to vendors, taxing authorities, leases/lessees, and mail the completed forms to the Contractor. The Contractor performs specified review procedures to ensure that the forms are properly authorized and completed before entering data.

To ensure the vendor name and Tax Identification Number (TIN) data entered into SAMS is correct, the Contractor performs a preliminary check (match) of the Internal Revenue Service (IRS) database.

The Contractor shall possess the capability to communicate with HUD Headquarters staff and assist them with technical problems encountered with the tasks specified herein. The Contractor shall provide a Customer Service Help Desk to resolve problems and to respond to inquiries made by originating HOCs and Headquarters staff regarding the tasks specified herein. The Contractor shall communicate with customers via e-mail and fax in order to maintain a record. The Contractor shall communicate principally with HOCs and occasionally with M&M Contractors. Also, the Contractor shall possess the capability to communicate with HOC staff to resolve errors or omissions on SAMS’ forms, which shall be defined during training by HUD. The Contractor shall be granted access to relevant components of HUD’s system to perform the tasks specified herein upon successful completion of the Personal Identity Verification (PIV) process.

1.3 Objective: The primary objective of this contract is to provide a business process for the supplemental claims process and assist HUD’s transition into a paperless and risk-based operation. Concurrent with developing the business process, the Contractor shall support the current process for reviewing and paying supplemental claims. The Contractor shall also key data into SAMS and provide support to the HOCs and Headquarters. By obtaining these services, this will assist HUD in achieving its goal of significantly reducing and maintaining the inventory of supplemental claims awaiting review and processing and ensuring that information entered into SAMS is accurate.

1.4 Description of Services: The Contractor shall perform to the standards of this contract. HUD seeks a Contractor who shall provide supplemental claims processing and SAMS support services. These services include:

Task I:

• Mail Processing

• Document preparation

• Scanning

• Key punching

• Analyzing, calculating and processing supplemental claims

• Responding to email inquiries

• Data entry and verification

• File Maintenance

• Improvement of the current claim process to a paperless and more risk-based process to be tested and operational by the third option period

Task II:

• Mail Processing

• Document preparation

• Data entry and verification

• File Maintenance

• Customer Service Help Desk

1.5 General Information

1.6.1 Non Personal Services: The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services. If the Contractor feels any action constitutes, or are perceived to constitute personal services, it shall be the Contractor’s responsibility to notify the Contracting Officer immediately. These services shall not be used to perform work of a policy, decision making or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6.2 Period of Performance: The Period of Performance shall be a 12 month base period plus 4 twelve month option periods.

1.6.3 Place of Performance: Tasks shall be performed at the Contractor facility with the exception of Task 5.1.1.4, which shall be performed at HUD Headquarters located at 451 7th Street, SW, Washington, DC 20410.

1.6.4 Hours of Operation: The Contractor is responsible for providing services between the hours of 8:30 a.m. and 5:00 p.m. EST, Monday thru Friday, except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. The Government reserves the right to change hours of operation or restrict Contractor access. The Contractor must at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the Contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall maintain the stability and continuity of the workforce is essential.

1.6.5 Special Qualifications: There are no special requirements.

1.6.6 Post Award/Kickoff Conference: The Contractor shall attend a post award conference convened by the contracting activity in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location and agenda.

1.6.6.1 Status Meetings: The Contracting Officer, Government Technical Representative (GTR) and other Government personnel, as appropriate may meet periodically with the Contractor to review Contractor performance, requirement status, etc. At these meetings, the GTR/GTM will apprise the Contractor of how the Government views the Contractor’s performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. Subsequent meetings may be held via teleconference. These meetings shall be included in the fixed price.

1.6.7 Contractor Travel: Prior to travel, the Contractor shall coordinate with and receive Government authorization from the GTR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation in accordance with FAR 31.205-46. The Contractor shall travel using the lowest cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. Local travel will not be reimbursed. All other travel will be reimbursed on actual cost; no profit or fee will be paid.

1.7 Transition Period

1.7.1 Transition-In: The Contractor shall provide a Transition-In Plan to be included in their proposal submission. The plan shall provide a detailed description of all transition-in activities and a timeline for the implementation and completion of all transition-in activities. The GTR/GTM may provide the incumbent with specific details for transfer of the ongoing contract activities as required to facilitate a smooth transition. Upon award the awardee shall finalized the transition plan in accordance with approval from the GTR/GTM which shall be submitted within 30 days from contract award.

Upon completion of the PIV process, the Contractor shall have sufficient personnel on board to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to a program is minimized. The Contractor shall become familiar with the requirements in order to commence full performance of services within 30 work days, if applicable.

Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.7.2 Transition-Out (if applicable): The Contractor shall provide the Transition-Out Plan no later than 90 days before contract expiration. Upon expiration of the contract, HUD will retain ownership of all data rights, training materials and books and any other pertinent information. The Contractor shall surrender all mail, forms, files, documents, training materials, books and any other pertinent information and property associated with the contract to HUD or the successor Contractor, as determined by the GTR/GTM, within 15 days of contract expiration.

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board, at no additional cost to the Government, during the Transition-Out period. The Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period. The Contractor shall aid the successor Contractor in the development of plans, procedures and methods for the assumption of all ongoing work. The Contractor shall provide an orderly transfer of work acceptance and accomplishment, such that full control by the successor Contractor is achieved.

C- 2 DEFINITIONS, ACRONYMS, APPLICABLE DOCUMENTS/PUBLICATIONS

2.1 DEFINITIONS

A43C Single Family Claims System Procedures – Procedures outlined in Exhibit 2 for the execution of the scanning and key punch requirements under Task 5.1.12.

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

The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Debt Collection Improvement Act (DCIA) - Provides that any non-tax debt or claim owed to the U.S.

Government that is 180 days delinquent, with certain exceptions, will be referred to the Department of the Treasury for collection.

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

Form HUD-27011 - The standard form used by lenders to submit claims for insurance benefits.

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

Government Technical Representative (GTR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Government Technical Monitor (GTM) – An employee of the U.S. Government appointed by the Contracting Officer to assist the GTR.

Homeownership Center (HOC) - HUD Offices that insure single family FHA mortgages and oversee the selling of HUD homes.

Key Personnel - Contractor personnel that are evaluated in a source selection process and that may be required to be used in the performance of a contract by the Key Personnel clause. When key personnel are used as an evaluation factor in best value procurement, offerors can be rejected if they do not have firm commitments from the persons that are listed in the proposal.

Marketing and Management Contractor – Provides management and marketing services to successfully manage, market and oversee the sale of single family properties owed by, or in the custody of, HUD.

Payee File Maintenance Procedures - Procedures outlined in Exhibit 3 for the execution of the requirements listed under Task 5.2.

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

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

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

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

Single Family Comprehensive Support Services Procedures – Procedures outlined in Exhibit 1 for the execution of specific requirements listed under Task 5.1.

Single Family Insurance System (SFIS/A43) - HUD’s primary system of record for insurance and claim payment status of all FHA-insured single family loans.

Single Family Insurance System-Claims Subsystem (A43C) – HUD’s primary system of record for processing single family insurance claims against defaulted loans.

Single Family Property Disposition Program – HUD program used to dispose of properties in a manner that expands homeownership opportunities, strengthens neighborhoods and communities, and ensures a maximum return to the mortgage insurance funds.

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

Work Day - The number of hours per day the Contractor provides services in accordance with the contract.

Work Week - Monday through Friday, unless specified otherwise.

2.2 ACRONYMS

ACRONYM DEFINITION

ACH Automated Clearing House (ACH) network

APM Assistant Project Manager

AQL Acceptable Quality Level

ARS Accounts Receivable Subsystem

CFR Code of Federal Regulations

CIO or OCIO Office of the Chief Information Officer of HUD

CO Contracting Officer

CSR Customer Service Representative

CWCOT Claims Without Conveyance of Title

DCIA Debt Collection Improvement Act

DEPCON Distributive EnterPrise Controller

EFT Electronic Funds Transfer

EIN Employer Identification Number (EIN)

EST Eastern Standard Time (U.S.)

FHA Federal Housing Administration

FOCS Financial Operations and Control Section

GAO U.S. General Accounting Office

GFP Government Furnished Property

GTM Government Technical Monitor

GTR Government Technical Representative

HECM Home Equity Conversion Mortgage

HERMIT Home Equity Reverse Mortgage Information Technology

HITS/HUDNET HUD Information Technology Service

HOC Homeownership Center

HUD U.S. Department of Housing and Urban Development

IIF Insurance In Force

IG or OIG Inspector General (Office of)

IRS Internal Revenue Service

M&M Marketing and Management Contractors

OIG Office of Inspector General

PFM Payee File Maintenance

ACRONYM DEFINITION

PIV Personal Identity Verification

PM Project Manager

POC Points of Contact

QA Quality Assurance

QASP Quality Assurance Surveillance Plan

QCP Quality Control Plan

RB Risk-Based

RCS Review and Compliance Section

SAMS Single Family Acquired Assets Management System

SFAAB Single Family Acquired Assets Branch

SFCB Single Family Claims Branch

SFPD Single Family Property Disposition

SFPID Single Family Post Insurance Division

SFIS Single Family Insurance System

SME Subject Matter Expert

TA Technical Assistance

TBD To be determined

TIN Tax Identification Number

VPN Virtual Private Network

2.3 APPLICABLE REGULATIONS/MANUALS/DOCUMENTS/PUBLICATIONS:

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

CFR Part 203 http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr203_main_02.tpl

CFR Part 206 http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr206_main_02.tpl

HUD Handbook 4330.4 – FHA Single Family Insurance Claims http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hs gh/4330.4

Mortgagee Letters http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortg agee http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr203_main_02.tpl http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr203_main_02.tpl http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr206_main_02.tpl http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr206_main_02.tpl http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4330.4 http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4330.4 http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

Single Family Housing Policy Handbook (HUD Handbook 4000.1)

*Currently not published, however when the handbook goes into effect the Contractor will be responsible for abiding by the regulations, which will supersede HUD Handbook 4330.4. GTR/GTM will inform the Contractor in advance on the implementation date and provide the website for the official HUD publication.

C-3 GOVERNMENT FURNISHED PROPERTY AND SERVICES

The Contractor shall ensure accurate control and accountability of all Government Furnished Property in accordance with terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services:

HUD Headquarters staff shall conduct initial training for the Contractor for the tasks specified in all Tasks.

Additional training shall be provided by HUD if and when the Contractor is directed to perform other activities required under this order or if changes are made to systems, procedures, or processes.

The initial training will include hands on experience accessing the SFIS (A43), SFCS and ARS Subsystems (A43C), SAMS (A80S) and in processing each type of payee file forms; written system access procedures; and instructions regarding the type of technical advice and manner for providing it to designated HUD personnel and HUD Offices. Training shall also include retrieval of appropriate system reports.

The initial training will take place at the Contractor’s site, within one week after contract award prior to the Contractor’s going on-line in the production databases. Estimated training times: Task 5.1, 40 hours; Task 5.2, 16 hours.

The GTR/GTM(s) or designee will be on-site periodically for technical assistance and consultation.

The Contractor shall be responsible for training personnel hired subsequent to the initial training conducted by

HUD.

HUD staff shall provide training for system enhancements and/or processing revisions due to FHA policy changes. For Task 5.2, it will be performed at the Contractor’s site at HUD’s option, as required and at a time mutually convenient to the Contractor and HUD that provides for timely implementation of any enhancements

3.2 Facilities: The Government will provide the work space for Contractor employees assigned to work under Task 5.1.1.5.

3.3 Equipment: The Government will provide the Contractor employees assigned to work under Task 5.1.1.5 access to scanners, fax machines, and printers. Each work space provided by the Government may have a computer, phone, desk and chair.

Each computer provided will have the basic necessary software required to perform the duties as described within the PWS. Each computer that must be linked to local servers and/or the internet will be so linked.

Additional furniture may be provided upon determination of need by the Government.

The Government will provide the Contractor a HUD Virtual Private Network (VPN) Connection to provide a secure connection to HUD.

3.4 Materials: The Government will provide training materials and the HUD Handbook 4330.4 in hard copy to the Contractor on the day of training which will be performed by the incumbent or a designated government official. Following the publication of Single Family Housing Policy Handbook (HUD Handbook 4000.1), the GTR/GTM will provide the web address for the official HUD publication and an additional meeting maybe set up with Contractor key personnel and the GTM to conduct a question and answers session pertaining to the new handbook. All materials remain the property of the Government and shall be returned to the GTR/GTM upon request or at the expiration date of the contract.

3.5 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.

It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

C-4 CONTRACTOR FURNISHED ITEMS AND SERVICES

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

4.1 Facilities: The Contractor shall furnish their own facilities. The Contractor shall maintain and operate a facility of sufficient size to accommodate the personnel and equipment necessary for performance of the requirements specified in this action. The facility must be secured 24 hours to provide physical security of documents. The Contractor shall have ample space to store at least 5,000 government storage box files of records which should be easily accessible in order to retrieve records when requested.

4.2 Equipment: The Contractor shall be responsible for providing all equipment and maintenance at the contractor facility. The Contractor shall provide software license and maintenance of the data entry and imaging software. The Contractor shall provide personal computers, printers, fax machines, scanners, Internet access, desks, designated space, office supplies, software and any other equipment that is necessary to perform the work specified in the statement of work. All equipment shall be operational five (5) days a week, Monday through Friday. All equipment and software shall be compatible with HUD’s Office of Chief Information Officer (OCIO), Standard Platform, (includes Workstations and Servers). Locked storage cabinets and/or areas, telecommunication hook-ups, and all office supplies to include furniture (e.g., chairs, desk/work tables, sorting bins or shelves, computer tables, file cabinets for document storage) shall be provided by the Contractor to complete the task activities.

All items shall be delivered and installed on the Contractor’s premises within 30 work days after completion of the PIV process.

Electronic Communication

The Contractor shall procure access through a commercial on-line application to communicate with program users and, when authorized by GTR/GTM(s), with HUD clients. The Department has e-mail links to the Internet and X.400 cloud via Microsoft Outlook. Specific addresses for program users shall be supplied GTM/ GTR or designated by the department official.

The Contractor shall procure Internet access to use the FHA Connection and related HUD web sites for the purpose of carrying out the activities under this contract. HUD regulations, handbooks, mortgagee letters, forms, and program and other information and documentation are available at http://www.hud.gov.

4.3 Material: The Contractor shall furnish any additional materials required to perform the tasks of the contract.

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

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

Government. These files/results must be surrendered to the GTR.

Unless otherwise directed by the GTR or GTM(s), at the end of the contract period the Contractor shall box, in official Federal Records Center boxes obtained from HUD, and deliver to a designated location within the Washington, DC metropolitan area, e.g., Federal Records Center or HUD Headquarters, all Claims and SAMS forms and related documents processed during the contract period. The Contractor shall provide any documents/forms needed to transfer records to the designated record storage location. The Contractor shall box and deliver to HUD Headquarters all unprocessed Claims, SAMS forms, mail and other documents at the end of the contract period.

The Contractor is required to provide a signed non-disclosure for, Attachment 5, with the submission of their proposal. Also, all contractor employees are required to sign a non-disclosure agreement before data and information otherwise exempt from public disclosure (e.g. Privacy Act or Data Collected Under an assurance of Confidentiality) may be disclosed to them.

Contractor employees who may have access to non-public Department information under this contract shall complete and submit the HUD Contractor’s Commitment to Protect Non-Public Information (NPI) Agreement.

A copy of each signed and witnessed NPI shall be submitted to the GTR/GTM prior to performing any work under the contract - see PWS Section IV Attachment 5.

4.5 Contractor Personnel

4.5.1 The Contractor shall provide a Project Manager (PM) and an Alternate Project Manager (APM) who shall be responsible for the performance of the work. The APM shall be designated to act in the absence of the PM. The Contractor shall also be responsible for a Subject Matter Expert (SME) in Forward Mortgage Loan Servicing and Claims Processing. These Contractor personnel are considered Key Personnel and shall be in accordance with HUDAR 2452.237-70, “Key Personnel” clause. The PM or APM shall have full authority to act on all contract matters relating to daily operations of this contract. Accordingly, at a minimum, the Key Personnel shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance and direction from the GTR/GTM per HUDAR 2452.237-73, Conduct of Work and Technical Guidance, and shall be allocated enough hours to ensure successful performance of all requirements.

All Key Personnel shall be employees of the contractor. An employee of a subcontractor is not acceptable for any of these Key positions. The PM or APM shall be available between the hours of 8:30 a.m. and 5:00 p.m.

EST, Monday through Friday, except Federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings.

http://www.hud.gov/

4.6 Identification of Contractor Employees: All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meeting, over the telephone or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractors/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or as a minimum, “Contractor” after name.

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

4.7.1 Quality Control Plan: The Contractor shall develop, maintain, enforce and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor’s methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor’s methodology for resolving problems identified by the Government 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.

C-5 SPECIFIC TASKS AND DELIVERABLES

5.1 Mail Processing, Supplemental Claims Processing Support, File Maintenance and Claims Paperless Reengineering

5.1.1 Detailed Task Description: The Contractor shall provide comprehensive support services in the following areas:

• Supplemental claims processing support services which shall include: Receive, Batch and Process Incoming Mail;

• Claims Imaging;

• Supplemental Claims Processing for Forward Mortgages and response to email inquiries;

• Document Control, Distribution, and Delivery;

• File Maintenance; and

• Claims Process Improvement.

Detailed task descriptions are listed below.

5.1.1.1 Task One: Receive, Batch and Process Incoming Mail (Off-site)

The Contractor shall perform the following tasks as outlined in Single Family Comprehensive Support Services Procedures (Exhibit 1):

• Contractor shall receive and process all incoming mail at the Contractor facility.

• Contractor shall batch and process incoming mail, including supplemental claim packages and supporting documents for suspended claims.

• Contractor shall date stamp and sort all documents.

• Contractor shall maintain a database for tracking incoming supplemental claim packages.

• Contractor shall distribute remaining documents.

• Contractor shall perform these tasks until process improvement is completed as described in 5.1.1.7.

5.1.1.2 Task Two: Claims Imaging – Claims Without Conveyance of Title (CWCOT) and Supplemental Claims (Off-site)

The Contractor shall perform the following tasks as outlined in A43C Single Family Claims System Procedures (Exhibit 2):

• Contractor shall batch the CWCOT and supplemental claim forms for scanning and key punching data on the date of receipt.

• Contractor shall convert the data from the Form HUD-27011 into machine-readable form daily. (Only scan the 1st 6 pages of the HUD 27011).

• Contractor shall perform data entry and use Electronic File Transfer to upload keypunch data files to HUD’s server daily.

• Contractor shall provide imaging services not to exceed 400,000 pages per contract year.

• Contractor shall provide a daily list of all batches uploaded to HUD’s server by 8:00 a.m.

the following business day.

• Contractor shall deliver the CWCOT claim batches to the GTM in HUD Headquarters for further processing within 24 hours of receipt.

• Contractor shall perform these tasks until process improvement is completed as described in 5.1.1.7.

5.1.1.3 Task Three: Supplemental Claims Review and Processing for Forward Mortgages/Claim Type 05 (Off-site)

The Contractor shall perform the following tasks as outlined in Single Family Comprehensive Support Services (Exhibit 1):

• Contractor shall process supplemental claims each month throughout the life of the contract.

• The Contractor shall research, review, analyze, calculate, and make recommendation actions for supplemental claims for forward mortgages daily and in accordance with HUD

Handbook 4330.4, FHA Single Family Insurance Claims, pertinent Mortgagee Letters, and FAQs provided by HUD. After the Single Family Housing Policy Handbook (HUD

Handbook 4000.1) is published, it will be the new reference the Contractor will utilize and it will replace HUD Handbook 4330.4. Detailed information pertaining to this task can be found in Exhibit 1.

• Contractor shall conduct a trend analysis for supplemental claims quarterly to establish a new risk-based review amount and submit to the GTM for approval.

• Contractor shall establish and document, within 60 days of contract award, risk-based procedures to avoid backlogs and maintain operations to limit supplemental claim inventory to no more than 30 days aged.

• Contractor shall respond to email requests from lenders regarding supplemental claims.

• Contractor shall process supplemental claims based upon the written recommendation action for each claim daily.

• Contractor shall enter appropriate information into A43C based upon the written recommendation action.

• Contractor shall take the appropriate action to ensure the completed supplemental claim package is properly routed.

5.1.1.4 Task Five: Document Control, Distribution and Delivery (On-site) Due to the nature of the document control, distribution and delivery activities, an On-Site Contractor is required and shall be located at HUD Headquarters for the core hours of 8:30 a.m. to 5:00 p.m. EST, Monday through Friday. A fully trained backup/replacement contract employee must be available if the principal On-Site Contractor is not available to fulfill the required duties.

The On-Site Contractor shall perform the following tasks per instructions outlined in Single Family Comprehensive Support Services Procedures (Exhibit 1):

• Contractor shall remit the Treasury Disbursement Statistics (AX2) and the Home Equity Reverse Mortgage Information Technology (HERMIT) payments daily.

• Contractor shall utilize Distributive EnterPrise Controller (DEPCON) to print required reports daily.

• Contractor shall retrieve source documents from RCS and prepare boxes daily for pickup by Contractor.

• Contractor shall pick up mail daily from the HUD Headquarters mailroom and distribute mail to the five offices in SFPID.

• Contractor shall sign for incoming mail daily from Federal Express, Airborne, DHL, UPS and the HUD mailroom (USPS registered or certified mail), etc.

• Contractor shall process all manual claims that are paid outside of A43C, such as, but not limited to, Home Equity Conversion Mortgage (HECM), manual claim refunds, loss mitigation claims, reconveyance claims, and assignment claims.

• Contractor shall prepare files for transfer to the Federal Records Center in boxes provided by HUD and according to Federal archiving requirements. The transfer shall occur twice a year, with a date agreed upon and approved by the GTM. The Contractor shall notify the GTM when files are ready for transport.

• Contractor shall provide a list of manual claim payments and daily disbursements transferred to Federal Records Center in Excel to the GTM(s).

• Contractor shall assist with writing requirements for development of and take an active part in development and testing of processes for the automated system.

• Contractor shall provide a Weekly Status Report which shall contain a summary of all tasks performed for the prior week, and Monthly Status Report which shall contain a summary of all tasks performed for the reporting month to the off-site Contractor for inclusion in the Comprehensive Weekly and Monthly Reports.

5.1.1.5 Task Six: File Maintenance of Supporting Documents for Paid Claims (Off-site)

The Contractor shall perform the following tasks as outlined in Single Family Comprehensive Support Services Procedures (Exhibit 1):

• The Contractor shall pick up the supporting documents for paid claims when available from the designated rooms at HUD and transport the documents to the Contractor's facilities daily.

• The Contractor shall correctly match A43C paid claim source documents to the payment schedules (A43BLC1A Report/1166 Disbursement Report provided by HUD for other claim types and the A43LC5% Report for supplemental claim) and store the claim files in numerical order according to schedule number, paid date, and FHA case number.

• The Contractor shall correctly match paid HECM claim source documents to the payment schedules (HUD will provide a HECM monthly report of paid claims for reconciliation) and store the files by numerical order according to paid date and HECM case number.

• The Contractor shall maintain original source documents at the Contractor’s facilities by paid date and FHA case number order for the previous fiscal year and the current fiscal year to date.

• The Contractor shall retrieve and deliver copies of paid claims within 24 hours upon GTM request.

• The Contractor shall prepare files for transfer to the Federal Records Center in boxes provided by HUD and according to Federal archiving requirements. The transfer shall occur four times a year (once every three months), with a date agreed upon and approved by the GTM. The Contractor shall contact the GTM when files are ready for transport.

5.1.1.6 Task Seven: Business Process Improvement

HUD will transition to a paperless risk-based process for supplemental claims, which will improve processes, manage operations and avoid backlogs. The process will provide adequate security to sensitive information by using a secure network or program that prevents paper claims from being submitted.

The Contractor shall provide a business improvement process that meets the outcomes identified below:

• Contractor shall develop a process to receive, review and process supplemental claims electronically.

• Contractor shall provide a yearly Business Process Improvement Status Report.

• Contractor shall provide a comprehensive work plan outlining the proposed Business

Process Improvement, a transition plan and updated management plan prior to implementation.

• Contractor shall receive supplemental claim submissions electronically via a supplemental claim payment system (electronic filing records system), which would interface with A43C.

• Contractor shall continue to process supplemental claims as outlined in Task 5.1.1.3.

• Contractor shall receive any documentation required for additional claim review via upload into the electronic filing records system.

• Contractor shall route all returned claims, documentation, denial letters and billing letters to the mortgagee electronically through the electronic filing system.

• Contractor shall maintain storage of all incoming and outgoing electronic files and store them securely.

DELIVERABLES

The Contractor shall prepare and provide, as part of the Comprehensive Weekly Report:

1) Weekly Mail and Batched Claims Status - This report shall include: 01A conveyance, O1B conveyance, 02 Assignment/ Accelerated Claims Deposition, 03 Auto/Assignments, 04 coinsurance, 05A supplemental, 05A/B supplemental, 06 CWCOT, 07 Pre-foreclosure Sale, 31 Special Forbearance, 32 Loan Modification, 33 Partial Claim, EDI corrections, corrected paper claims, corrected 05 claims, correspondence, claims rejected for corrections, and total mail received.

2) Supplemental Claims (Forward Mortgages) - This report shall include the beginning and ending date for the week of the report with each day identified by day and date. The report shall include the following data items: total claims processed, claims to be returned, claims to be paid, claims to be denied, no action needed, refunding due HUD/billing, return to GTM, opening balance, (plus) claims received from GTM, (plus) claims received from mortgages, adjustment to batches, less total claims processed, total claims on hand with Contractor, (plus) total claims at HUD, total unprocessed claims on hand and any remarks.

3) File Status Report - This report shall include the following paid total claims: 01A conveyance, O1B conveyance, 02 Assignment/Accelerated Claims Deposition, 03 Auto/Assignments, 04 coinsurance, 05A supplemental, 05A/B supplemental, 06 CWCOT, 07 Pre-foreclosure Sale, 31 Special Forbearance, 32 Loan Modification , 33 Partial Claim and other claim types.

The Contractor shall prepare and provide, as part of the Comprehensive Monthly Report:

1) Mail and Batched Claims Status Report - This report shall include the beginning date of each week reported within this monthly report and all the data items reported within the Weekly Mail and Batched Claims Status Report.

2) Supplemental Claims (Forward Mortgages) - This report shall include the beginning and ending date for the month of the report with each week identified by date. This report shall include all the data items reported within the Weekly Status Report.

3) Discrepancies Report for Supplemental Claims (Forward Mortgages) - This report shall include the FHA case number and the corrective action taken for all supplemental claims that were rejected by the GTM for correction.

4) Monthly File Status Report - This report shall include the beginning date of each week reported within this monthly report and all the data items reported within the Weekly File Status Report.

5) File Discrepancies Report -This report shall include the following: case files that are not provided to the

Contractor but were listed on the paid claim reports.

5.2 SAMS Support Services

5.2.1 Detailed Task Description: The Contractor shall provide Payee File Maintenance and Customer Service Help Desk services.

5.2.1.1 Task One: Payee File Maintenance

The Contractor shall perform the following as outlined in Payee File Maintenance Procedures Exhibit 3:

• The Contractor shall collect and process mail received through the U.S. Postal Service and private courier daily. The Contractor shall provide an address for private courier deliveries.

• The Contractor shall review and enter information regarding the establishment of or changes to payee and taxing authority profiles. An average application consists of three (3) forms that include up to twenty (20) data elements to be key-punched.

• Timeliness Requirement

1. Within 2 business days (48 hours) of receipt, begin the processing of each form received by entering it into the database and performing the review of required elements.

2. The GTM(s) shall conduct periodic on-site or remote reviews to determine compliance with this requirement. The Contractor agrees to permit announced and unannounced on-site monitoring reviews at the request of the GTM(s). The Contractor shall provide access to the originals or copies, as appropriate to the type of review, of all materials required by the GTM(s) to complete the review.

3. Payee File Maintenance

a) Ensure compliance with data entry time limit requirements by entering to the respective screen the date on which the form was approved by the appropriate Field Office representative, i.e.