SOWRCS-PA-DE.docx

This is a request for quotes' to perform multifamily project rent comparability studies in Delaware and Pennsylvania for the Philadelphia Hub of the U.S. Department of Housing and Urban Development.

The action will be a fixed-price purchase order awarded through the trade-off process. There is a trade-off of technical merit and other factors in determining which offer represents the best overall value. The evaluation factors are indicated at the end of this statement of work.

This action will have a minimum of one (1) and a maximum of 10 orders. There is a possibility that several orders could be requested within a short time frame. This work will be performed on both insured and uninsured multifamily projects located in the state of Delaware and Pennsylvania (see attached list of counties). The awardee must be a Certified General Appraiser, licensed and in good standing in the state of Delaware and Pennsylvania. The awardee must be currently active and regularly engaged in performing RCSs or appraisals of multifamily housing. The awardee must meet all requirements of the Competency Provision in the Uniform Standards of Professional Appraisal Practice (USPAP) and have knowledge of HUD's Section 8 Renewal Policy. The awardee must have no prospective or present financial interest in a Project Based Section 8 property, its ownership or management agent entity, or the principals of those entities. The awardee must not be an employee of an owner of a Project-Based Section 8 property, the management agent, or the principals of those entities or have a business or close personal/family relationship with those parties that would commonly be perceived to create bias or a conflict-of-interest.

The projects will consist of more than four dwelling units and receive Project-Based Section 8 assistance. The units could be on scattered sites that the appraiser will need to visit and assess differences in neighborhoods, condition, street appeal, services, or other characteristics. Assignments may include an estimate of "as is" Market Rent or "as rehabilitated" Market Rent as of the date of the Rent Comparability Study. If the request is for an "as rehabilitated" Market Rent, plans, specifications or work write ups will be forwarded. Market Rent is defined as rent that a knowledgeable tenant would most probably pay for the Section 8 units as of the date of the appraiser's report if the tenants were not receiving rental subsidies and rents were not restricted by HUD or other government agencies.

The time-frame for receipt of the deliverable will be 30-calendar days, unless otherwise agreed upon.

Statement of Work I. "As Is" Rent Comparability Studies for HUD Mark Up to Market (MU2M) Program A. Background & Objectives Section 8 laws and administrative procedures require HUD obtain and review Rent Comparability Studies (RCSs) when initially renewing most Section 8 contracts and when processing Mark-up-to-Market (MU2M) rent increases using the Operating Cost Adjustment Factors (OCAF). The market rents resulting from these studies determine the rents owners can receive and, hence, greatly influence whether an owner will renew and continue providing project-based assisted housing or opt-out of the Section 8 contract and convert to unassisted, market rent housing. The market rents set in these studies also drive HUD's outlays for Section 8 project-based subsidy. Owners hire an appraiser and submit a RCS to HUD. However, in the MU2M cases, HUD must directly contract for a third-party RCS. HUD is required to purchase a study when the owner elects to mark rents up to market under Option I of HUD's current Section 8 Renewal Policy Guide. This request seeks appraisers to prepare RCSs, according to the Section 8 Renewal Policy Guide, on these MU2M cases.

B. Scope of Services

1. The contractor shall prepare Rent Comparability Studies for Section 8 contracts identified by the GTR. The contractor shall prepare the study in accordance with the procedures set forth in Chapter 9 of the HUD Section 8 Renewal Policy Guide (the HUD Guide). The Guide can be found at http://www.hudgov/offices/hsg/mth/exp/guide/s8renew.pdf

2. The contractor shall furnish all personnel, material, supplies, equipment, transportation and facilities necessary to provide the services required by this contract.

C. Tasks Required in Preparing a RCS The contractor shall comply with the most current Uniform Standards of Professional Appraisal Practice (USPAP) in the manner discussed in Chapter 9 of the Section 8 Renewal Policy Guide. The contractor shall perform the tasks as required in Chapter 9 of the guide. These tasks include, but are not limited to:

1. Analyzing the subject Section 8 property

· identifying unit types the RCS must cover and classifying unit types as primary or secondary

· inspecting the subject Section 8 property and its surrounding neighborhood;

· photographing the subject and comparables;

· assessing the project's condition~ appeal and other characteristics; and

· identify any non-shelter services in elderly/disabled units and determining which services are provided by the project and which are accessed through outside agencies.

2. Selecting comparables. For each primary unit type, the contractor must try to locate five comparable units that meet the six conditions in Chapter 9. If the contractor cannot locate five properties that meet all six conditions, the contractor shall select comparables in accordance with the guidance set forth in that same chapter. Appraisers must justify using fewer than five comparables, rent restricted units, units outside of subject's market area or units significantly dissimilar to the subject (e.g., different number of bedrooms, structure type or level of services).

3. Collecting and documenting data on comparables. The contractor must collect data as required by Chapter 9, of the HUD Guide and document the data as required by that section of the HUD Guide. For each primary unit type, the contractor must prepare a Comparable Property Profile and a Rent Comparability Grid (HUD 92273-S8) as set forth in Chapter 9, and the appropriate Appendix of that chapter. The profile must contain at least the information required by the appendix of that chapter in the HUD Guide. The contractor must prepare the Rent Grid in accordance with the instructions in the appendix. The appraiser should use HUD's Excel form to prepare the Grid, unless the GTR agrees to another method of completing the Grid.

4. Computing an adjusted rent for each primary unit type as directed in Chapter 9 of the HOD Guide. The contractor must take care to comply with that chapter's direction on non-shelter services.

5. Using the adjusted rents to derive a market rent for each unit type as directed in Chapter 9 of the Guide.

6. Preparing the report in the format required by the HUD Guide. The report must comply with the appropriate section and appendix of the HUD Guide. Narratives required in the report must be concise but contain enough information that a person not familiar with the properties and market areas involved can understand how the appraiser arrived at his/her conclusions. It is strongly suggested that the appraiser use the Rent Comparability Study sample enclosed in the appendix of Chapter 9 of the Guide as a model for their report.

D. Who Can/Can't Perform The Work Requested.

1. The RCS must be prepared by, or under the direction of, a Certified General Appraiser who meets all of the qualifications listed in Chapter 9 of the Guide. The appraiser must sign and take full responsibility for the report, but appraisal assistants may contribute to any of the tasks if: 1) the assistant is employed by the same firm as the appraiser; and 2) the report identifies the roles the assistant appraiser performed.

2. The contractor shall not employ or subcontract with any person who is a current or former civilian employee of the U.S. Government if the employment of that person would create a conflict of interest, an appearance of any conflict, or otherwise conflict with Federal or HUD ethics rules. The contractor shall be responsible for resolving any actual or appearance of a conflict of interest and shall not rely on HUD to resolve the issue through reassignment of workload or any other means.

3. Key personnel who will be performing the rent comparability studies shall be listed and a copy of their license will be submitted with the quote package.

4. Special training or education of proposed personnel is to be included in the quote package.

E. Deliverables and Schedule Requirements Within 30 calendar days of receipt of HUD's RCS order or within any alternate agreed upon time by the GTR, the contractor shall submit two sets of the following, in hard copy, to the GTR. The GTR for this action is Wesley Neal, U.S. Department of HUD, The Wanamaker Building, One Penn Square East, Philadelphia, PA 19107. Questions should be addressed to point of contact person who is Kwabena Owusu-Banahene, his telephone number is 215-861-7572and his email address is kwabena.owusu-banahene@hud.gov. Each of these materials must meet the applicable requirements of Chapter 9 of the Guide. If the GTR requests it, the contractor must submit the Rent Comp Grid in Excel on disk or via email. At a minimum, the deliverable must contain the elements set forth in the appropriate section of Chapter 9 of the Guide:

1. Appraiser's Transmittal Letter

2. Scope of Work

3. Description of Subject Property (including color photographs)

4. Identification of the Subject's Market Area

5. Description of Neighborhood

6. Narrative Describing Selection of Comparables

7. Locator map for Subject and Comparables

8. Rent Comparability Grid (HUD 92273-S8) for Each Primary Unit Type

9. Narrative explaining adjustments and market rent conclusions (one set of explanations for each Rent Grid)

10. Comparable Property Profile for each Comparable (including a color photograph)

11. Appraiser's Certification

12. Appraiser's License (only if relying upon temporary license) F. Payment

Billings must be submitted on Standard Form, SF 1034 (original and 2 copies) on a per RCS basis. Payment will be made under Prompt Payment Act procedures after review and acceptance of the study by HUD's staff appraiser. There will be a 1/2% liquidated damages assessment per day for each day late. This can include any days corrections are needed.

G. Disclosure of information.

Except as specifically authorized elsewhere in this contract or as directed by the GTR or Contracting Officer, the contractor shall not disclose any information about the conditions or management of properties to any party.

H. Professional Liability Insurance: Minimum coverage requirement of $250,000.

II. "As Rehabilitated" Rent Comparability Studies for HUD Mark Upto Market (MU2M) Program A. Background & Objectives Same as I.A. above. If the owner will be doing rehabilitation on the property, a copy of the proposed rehabilitation will be provided at the time of assignment.

B. Scope of Services As indicated in I.B. above.

C. Tasks Required in Preparing a RCS As indicated in I.C. above, but to include an estimate of "Market Rent" as of the date of the study, taking into consideration the rehabilitation planned for the property. The proposed scope of work will be provided.

D. Who Can/Can't Perform The Work Requested Same as I.D. above E. Deliverables and Schedule Requirements Same as I.E. above F. Payment Information Same as I.F. above G. Disclosure of information Same as I.G. above H. Professional Liability Insurance Same as I.H. above III. Evaluation Factors The following factors will be used by the Department to evaluate quotes. Factor 1 is the most important factor, followed in importance by Factor 2 and Factor 3. Subfactors A and B under Factor 3 shall be of equal importance. The offeror should carefully review these technical evaluation factors and their relative weights when preparing their response to this RFQ.

NOTE: Documented evidence (It is not enough for offerors to claim experience, etc. They must provide evidence in their response. Such evidence will include appraisal reports and rent comp studies, references, etc).

Factor 1: Personnel qualifications - documentation (licenses/resumes) showing the firm's personnel including the individual’s relevant training, education, and work experience that qualifies them to conduct rent comparability studies (this includes non-licensed appraisal assistants). Include copies of current licenses, (as indicated under I.D. 1. and 2. of the Statement of Work) [This applies to "key" personnel, i.e., those whose contribution to the contract effort will have a significant impact on the quality of the contractor's performance. The term "personnel" is usually interpreted broadly to include contractor employees, consultants and subcontractor employees].

Factor 2: Experience - demonstrated experiences in performing work that is required by this purchase order. The offeror shall provide evidence of the offeror's (i.e., the firm's or organization's) principal officers', key personnel's, predecessor companies', and/or affiliates' of the offeror prior and current experience in performing rent comparability studies. The technical proposal must state the offeror's weekly, monthly, and yearly workload capacity. The proposal must demonstrate the offeror's familiarity with the HUD forms and guidebooks listed in the RFQ.

Factor 3: Past Performance - demonstrated record, as confirmed by references. The offeror shall provide evidence of the offeror's past performance in accomplishing work - including meeting delivery dates and schedules. The offeror's past performance record shall demonstrate the knowledge of comp study principles and procedures and the capability to perform this type of service. The quote shall identity accomplishments in the areas indicated below.

Subfactor 1: Quality of work performed Subfactor 2: Timeliness of performance