MM_3_7_Industry_Day_Questions_and_Answers_Final_4_30_14.pdf

M&M 3.7 Asset Manager Industry Day Questions and Answers

Monitoring:

1. When time in inventory is extended due to the FSMs failure to perform, will the AM contractor’s performance scorecard be negatively impacted?

ANSWER:

No, the AM’s scorecards will be limited to the AM’s performance under their respective contract only.

Inventory:

1. What is the projected number of properties for GA in the Atlanta HOC?

Once issued, the solicitation will identify the estimated quantities and historical volumes for each contract area.

2. The four largest mortgage servicers are holding 57 Billion in seriously delinquent FHA loans. Do you anticipate a spike in FHA claims in the next few years? Additionally, how do you see HUD home sales volume in the next 2-3 years?

Past performance is not an indicator of future volumes. The Asset

Manager (AM) and Field Service Manger (FSM) contracts have guaranteed minimums.

Funding:

1. Can you address the credit requirements for this procurement? Will AMs in

3.7 need lines of credit or commitment letters to bid now that HOA and utility bill management is involved?

The bonding/credit requirements for this procurement will be identified in the solicitation.

2. What will be the financial requirements for small or large businesses in AM

3.7? What are the bonds for payment and performance? How much money will be needed?

The bonding/line of credit requirements for this procurement will be identified in the solicitation.

3. Where can we go to get information on how to price our contract?

Section B- Supplies or Services and Price/Costs of the solicitation will provide a breakdown of the contract line item (CLIN) structure. Also, a separate pricing spreadsheet will be provided as an attachment for offeror’s to submit proposed pricing. HUD does not provide information on how to price contracts.

Quantities:

1. The AM 3.5 RFP had a minimum guaranteed quantity of 1,000 properties per contract area. Considering the substantial capital investment that AM contractors have to make, a guaranteed minimum of only 1,000 properties makes this a pretty risky endeavor for new AM contractors. Is there any chance that HUD will increase the minimum quantity to decrease the risk factor?

The minimum guaranteed quantities are based on a number of factors which takes into account current inventory, forecasted inventory, market conditions, and historical data. No special adjustments will be made to decrease contractor’s risk.

2. Are bulk note sales drastically decreasing REO inventory?

FHA will optimize pre and post disposition strategies that result in minimizing losses to the FHA insurance fund, which may include bulk sales and other alternative disposition strategies.

3. Given the significant initial investment required by small business ($1M-

$3M), does HUD intend to provide an adequate minimum guarantee?

HUD will establish a minimum guarantee for this contract type based on several factors, current inventory, forecasted inventory, market conditions, and historical data.

Set Asides/GSA Schedules:

1. Approximately what percentages of the contract will each of the different socio-economic categories receive, 8(a), GSA, etc?

The specific set- aside areas for this requirement will be provided when the synopsis is issued, as well as the solicitation.

2. Do you have to be on the GSA schedule for M&M 3.7?

The method of procurement will be identified in the synopsis, as well as the solicitation.

3. Will there be a set aside for current GSA FAB520 schedule holders? If no, why? There are a large percentage of GSA schedule holders at the Industry

Day.

The method of procurement will be identified in the synopsis as well as the solicitation. The method of procurement is determined based on the market research results.

4. What types of businesses are being sought to apply as AM companies?

The synopsis as well as the solicitation will identify the types of businesses being solicited. All interested parties within these categories may submit a proposal.

5. Will large entities not be considered for AM contracts? Is this procurement set aside only for small businesses?

The synopsis as well as the solicitation will identify any set-aside or unrestricted areas being solicited.

6. Does the combination of a company meeting multiple set asides increase the chances of being selected?

No. FAR Part 19 and SBA Regulations only require that the Offeror meet the qualifications for the identified set-aside in order to be eligible to submit a proposal.

7. It was mentioned that the new contract would be including businesses/brokerages not to exceed $7M. Does that mean the bid will be awarded to a business with a net profit of less than $7M?

Not necessarily. The NAICS code 531210 identified for this procurement has an established business size standard of $7 Million, which is established and set by the Small Business Administration

(SBA). Please refer to SBA’s guide regarding Small Business Size

Determinations, http://www.sba.gov/content/guide-size-standards for additional information.

Teaming/Subcontracting:

1. As an LLB we would like to know when the AMs are awarded and who they are awarded to. How can we access that information?

All contract awardee information will be posted to www.fbo.gov as well as www.hud.gov.

2. If there is a prime and a subcontractor, what is going to be the net profit requirements to bid?

All requirements will be provided in the solicitation.

3. If considering a joint venture, how can I obtain other businesses to team with? Will HUD offer a list of interested vendors?

HUD does not maintain an interested vendor list, however you can find the interested vendor’s list tab for the Pre-solicitation notice for 3.7 AM

@ www.fbo.gov http://www.sba.gov/content/guide-size-standards http://www.fbo.gov/ http://www.hud.gov/ http://www.fbo.gov/

4. What requirements will HUD make to ensure that vendors subcontract to a diverse group of small business companies?

For any areas not specifically set-aside for small businesses, a subcontracting plan will be required and instructions will be included in the solicitation.

5. Does HUD allow for partnership between a small business and large business for AM 3.7?

There are no restrictions on partnerships, however if a small business chooses to partner with a large business, FAR Clause 52.219-14 –

Limitations on Subcontracting will be applicable and included the solicitation.

6. Will HUD have a monitoring structure in place to ensure small business and minority listing brokers receive opportunities to be neighborhood listing brokers (NLBs)? Will there be an announcement for NLBs?

The Asset Manager contract requires the AMs to utilize local listing brokers whose business is close to the listing. The AMs are responsible for managing their NLBs network and monitoring their performance. The AMs Marketing Plan includes provisions for managing and monitoring their local listing broker network.

7. Do subcontractors also need to be registered in SAMS, i.e. is this a requirement for award?

The prime contractor is required to be registered in the SAM system prior to contract award. For any areas not set-aside for small businesses and award is made to a large business, the prime contractor and the subcontractors are required to be registered in SAM.

Time Frame/Awards:

1. When will the solicitation be released and target award date?

The solicitation is targeted for release on or about the March 31, 2014.

The target award date will depend upon the length of time required to complete the source selection process.

2. Will a revised draft PWS be available before the solicitation is announced?

No.

3. Will AM 3.7 be procured via GSA schedule?

The procurement method will be provided in the synopsis, as well as the

4. Do you anticipate the procurements for 3.7 and 3.8 running simultaneously?

Each requirement will be solicited independently. However, it is possible that there will be overlap in the solicitation, evaluation, and award schedule.

5. M&M Asset Management has been/was placed on FedBizOpps for RFP, however bids were never awarded. Are you sure that this 3.7 will be awarded and when will the RFP be announced?

M&M 3.5 AM contracts have been awarded. The solicitation release date for 3.7 AM is on or about March 31, 2014.

6. How long will we have to submit a proposal?

The solicitation will provide the date proposals are due.

7. When is the deadline to apply as an AM?

The solicitation will provide the date proposals are due.

SBA:

1. Can you go into more detail about how HUD defines “small business”?

Specific information defining small businesses can be found at the Small

Business Administration (SBA) website, http://www.sba.gov/content/guide-size-standards.

Industry Day:

1. Would you supply a list of attendees that attended the Industry Day?

http://www.sba.gov/content/guide-size-standards

No.

2. How can we obtain a full-size version of the slides in the handout?

The full size version of the slides will be posted to www.fbo.gov and www.FedConnect.net

Current AM’s:

1. Will the current AMs be eligible for 3.7?

There is no prohibition on current AM’s proposing on the 3.7 AM requirement. However, business size limitations will apply on any area set-aside for small businesses, and all Offerors will need to meet the specific set-aside requirements to be considered for award.

Geographic Location:

1. Does HUD require that a contractor have a brick and mortar office in the

HOC area where the contractor is pursuing the AM award?

Yes, this will be addressed in detail in the solicitation.

2. Why are some of the HOCs not included in AM 3.7?

The Atlanta, Denver and Philadelphia HOC’s are covered under 3.7

AM. The remaining HOC, Santa Ana does not have a need for AM services under the 3.7 AM solicitation. These areas were covered under the 3.5 AM contracts.

http://www.fbo.gov/ http://www.fedconnect.net/

3. If your office is based in Atlanta can you apply for other states?

The only geographic requirement for 3.7 AM is for the contractor to operate an office inside the HOC’s area of jurisdiction for which the offeror will be submitting a proposal.

4. Per guidelines the listing broker needs to be within 30 miles. What if there is a broker servicing assets from a different city? How do we report that?

If the city is within 30 miles the listing broker is within the required guidelines. However, HUD does understand that due to remote locations and extenuating circumstances broker assignment may fall outside of the guidelines, but Government Technical Representative

(GTR) notification is required under these conditions.

Conflict of Interest:

1. Will the contractor be allowed to pursue more than one M&M function? (ex:

MCM, AM, FSM)

The MCM contractor cannot be awarded any M&M contract for the life of the MCM contract. An AM contractor cannot service the same contract area where they are already performing as an FSM contractor and vice versa.

Past Experience/Past Performance:

1. What kind of past experience/past performance will be required in order for a proposal to be considered?

This information will be provided in the solicitation.

2. What type of experience is required for this procurement?

This information will be provided in the solicitation.

M&M 4.0/Future Contracts:

1. When will HUD rebid the 3.5 areas? Will they be added to 3.7 at the same time?

The 3.5 AM contracts have been awarded and will not be included under the 3.7 AM solicitation.

2. Is it HUD’s intention that this contract run its full 5 year course or is it anticipated AM 4.0 will be introduced prior to that? This is important because it is my understanding that several contractors’ amortized capital costs over five years and entered into long term leases in the last round of

AM contracts and HUD did not exercise all four option years.

Each contract awarded may be awarded for less than a 12 month Base

Period. Four one year options will be included in the period of performance, but it is the government’s unilateral right to not exercise any options remaining on the contract if it’s in the government’s best interest.

Misc.:

1. Are you able to shed light on why HUD is doing a replacement contract, and if HUD anticipates running into similar issues with the new contracts?

The government has determined the need for AM services still exist for the remaining M&M 3.0 AM contracts. Also, these contracts will be in the last year of performance starting June 1, 2014.

2. Is this RFP replacing the current contract?

The 3.7 AM solicitation will replace the remaining 3.0 AM contract areas not solicited under the 3.5 AM requirement.

3. One of the primary objectives of the AM 3.7 contract is that closing proceeds are properly accounted for and delivered to HUD in a timely manner. How is the AM supposed to ensure that the Buyer Select title company timely wires the proceeds to the US Treasury? The AM has no way to compel a title company chosen by the buyer to send the wire the day after closing. Will the AM contractor be penalized for late wires?

The AM is responsible for monitoring Buyer’s Selected Closing

Companies and determine if the HUD-1 is accurate and if the closing instructions were accurately followed. The GTR is to be notified immediately of any inconsistencies and if the title company is not following HUD’s instructions/procedures.

4. Will current LLB’s have an opportunity to apply with new AM’s?

Yes.

5. If you are a listing broker what is the best way to secure HUD listings?

Asset Managers are responsible for managing their local listing broker networks. Therefore, listing brokers who are interested in HUD listings must contact the AM to become part of their network.

6. When does the performance period end for the current AM contractors?

The remaining 3.0 AM contract areas being solicited under this solicitation will end on or before May 31, 2015.

7. Can the AM hold the FSM responsible for property repairs should a system, such as plumbing fail and the FSM reported it was fine and held pressure on the HPIR?

No contractor can hold another contractor responsible for services not performed. The AM should report all field service related issues to their respective GTR for resolution.

8. Will the remaining closing agent contracts be closed out or expired by the time 3.7 awards are awarded?

Yes.

9. Recently I saw a sources sought for a new P260 type system. Is this system expected to be procured during the 3.7 contract term? If so, will there be a requirement to use this system?

Any required Government furnished systems will be identified in the

10. How does sequestration affect net recovery, for example, turning electricity on and heat?

HUD has not identified a sequestration impact on services required under the terms of this solicitation.

11. Because of when the “hands” are on the properties providing needed services, FSMs should manage utilities, but AMs should do HOA fees (in cooperation with the LLBs). Will HUD make these changes in this RFP?

The FSMs will continue to manage the utilities and the AMs will be responsible for HOA fees and taxes. The upcoming 3.7 AM PWS will reflect these changes.

12. At the FSM 3.8 Industry Day it was mentioned that under the AM 3.7 contract the AM contractors will have added responsibilities such as taking care of the HOA fees, can you elaborate on that?

While HUD is considering changes to the AM 3.7 requirements, none of these changes is considered final until the solicitation is issued. All the tasks required under the 3.7 AM will be addressed in the solicitation.

13. In the event that a reconveyance occurs when in Step 6 or 8 will the AM be compensated for services performed prior to the reconveyance?

No, the AMs contracts are structured similar to normal real estate contracts, whereas, the AM is compensated when a property is sold and the proceeds are reconciled.

14. Who will complete the initial tax research and entry into P260? If tax information is not available, will the AM be responsible to resolve?

The Mortgagee is responsible for paying taxes prior to conveyance unless otherwise directed by the AM GTR. If the GTR approves payment, the Contractor must notify the MCM of the outstanding tax bill, unless otherwise directed by the GTR. The Contractor must obtain tax bills on all properties in their inventory in time for the 1106 to be processed without penalties or interest to be assessed.

15. Will AM PWS include HOA and utility services?

While HUD is considering changes to the AM 3.7 requirements, none of these changes is considered final until the solicitation is issued. All the tasks required under the 3.7 AM will be addressed in the solicitation.

16. How limited will the number of pages for the technical section of the proposal be?

Any proposal page limitations will be addressed in Section L of the

17. There are about a dozen areas. If a small business wants to bid on more than one, will we be able to write a unique technical section for each one?

We cannot write only one for all and still have room to address each area’s unique elements.

Any proposal page limitations will be addressed in Section L of the

18. Which regulation governs your acquisition procedures?

Federal Acquisition Regulations (FAR); http://farsite.hill.af.mil/

HUDAR Agency Supplement;

http://portal.hud.gov/hudportal/HUD?src=/program_offices/cpo/hudar

19. Can LLBs apply for AM contracts?

Yes, anyone who meets the eligibility requirements identified in the solicitation will be eligible to apply.

20. Is AM 3.7 only for single family housing properties? What about multifamily housing during and after disposition?

Yes, AM 3.7 will cover only single family properties.

http://farsite.hill.af.mil/ http://portal.hud.gov/hudportal/HUD?src=/program_offices/cpo/hudar

3.7 Asset Manager Industry Briefing and Presentations

Below is the link to the 3.7 Asset Manager Industry Day video that has been posted to the HUD YouTube Channel. Please use the link to access information that was presented during the Industry Day event.

Management and Marketing 3.7 Asset Manager (AM) Services:

http://youtu.be/1VFDM4FT3Xk http://youtu.be/1VFDM4FT3Xk