Attachment 12 MM_3_6_QA_Final.pdf

Management and Marketing Field Service Manager 3.6

Solicitation DU-204-SB-12-R-0001

Questions and Answers

Line of Credit/Bonding

1. Can small businesses submit Line of Credit letters from a large business, or must the letter come from a lending institution?

A. The line of credit will be used as part of the responsibility determination for small businesses, and must come from an authorized financial institution.

2. Is evidence of a line of credit from a subcontractor acceptable?

A. No

3. Is a business required to get multiple lines of credit for specific contract areas? If an offeror is bidding on more than one territory, do $500,000 lines of credit need to be established for each territory, or can one line of credit be utilized for multiple territories? For example, if an offeror were bidding on three territories, would three $500,000 lines of credit be required, or would one $1,500,000 line of credit be required?

A. A separate line of credit demonstrating at least $500,000 per contract area must be available as part of the proposal package.

4. Volume I, A4 RFP Documents Pg. 145 of 151 #4 says that each offeror must submit a $500,000.00 or more line of credit to submit with each contract area an offer is made. It states that you have 5 business days from the day that you have been notified that you are an apparent successful offeror to obtain a line of credit.

We understand that you don't want to have a contractor receive multiple, or even a single area, that they cannot handle financially, however, if this is to be a true partial Small Business contract then it would make sense to request a preliminary letter of credit to be included in the bid submission for each area, followed up by an updated letter (within 5 business days) upon being named as the apparent successful offeror, with the final line of credit due within 10 (or more) business days of award. Please clarify this requirement.

A. HUD expects signed/notarized copies of letters of commitment letters for one or more guaranteed lines of credit, as specified in Section L, from an authorized financial institution. Executed lines of credit must be put into place within 5 business days from notice that an offeror has been selected as the apparent awardee for a given area. Failure to do so may result in a negative responsibility determination for large businesses or referral of a qualifying small business to SBA for a Certificate of Competency (CoC) decision.

5. What does it mean $500,000.00 or more with reference to the Line Of Credit?

Will HUD require more for some contract areas? If so, which ones?

A. No, $500,000 per area is the required amount. However, Offerors may seek out additional reserves or may already have existing lines of credit in excess of the requirement.

6. Will HUD allow the $500,000 per area to be in the form of cash on hand rather than a line of credit?

A. No, cash on hand will not be considered as an acceptable line of credit for proposal purposes.

7. Will HUD allow the $500,000 to be a joint contribution of the prime and one or more JV, Teaming, or Subcontractor entities that are included in the proposal?

A. The line(s) of credit need to reference the prime contractor or Joint

Venture proposed. Any line of credit reflecting a business relationship lacking direct privity of contract with HUD will not be considered as meeting the requirement in Sec. L., Paragraph (a) 4.

8. If the 500k line of credit hasn't been establish by July 06, 2012 how would an offeror address that response at the time of submission?

A. If no guaranteed commitment regarding the required line(s) of credit is available from an authorized financial institution at the proposal suspense date, the Government will either determine the offer to be non-conforming

(large businesses) or refer the responsibility determination to SBA for a final decision (small businesses).

9. Would a current $500K line of credit with a bank Letter of Commitment to increase the Line Of Credit to $1.5 million, contingent upon winning this contract, allow a contractor to bid 3 contract areas, (i.e. $500K per contract area)?

A. See question 3.

10. In which section should the letters of bonding and line of credit be included?

A. Performance and Payment Bonds, as well as the letter of commitment for the line of credit, shall be submitted as part of Volume I, as identified in the Amendment 2 language in Section L.

11. The Payment and Performance Bond is priced based on Contract value, but the value provided in the RFP is grouped. What is the contract value for 8a alone

(Florida, Puerto Rico, and US VI)?

A. The amounts cited are for each contract, and as described in the clause

52.228-16, IDIQ contracts should be using the guaranteed contract minimum as the “original contract price” used to calculate the percentage for performance and payment bonds. For purposes of this solicitation, the minimum is identified as $1M, and the bonding amounts are 50% of that amount or $500K each for performance and payment bonds.

12. Bonding: In the original RFP section 52.228-16 states a 2% bond is needed; the amendment now states a 50% bond is needed. Please clarify what bonding you are requiring from small businesses.

A. See the answer for Question 11 above. Bonding requirements are the same for all Offerors, regardless of business size.

13. Please confirm that a letter of commitment to be provided with the proposal and a line of credit to be provided after award are both required. Section L page 145, #4 seems to have contradictory language concerning this requirement.

A. See the answer to Question 14 above.

14. Reference Section L, paragraph L.5, a.4. says: “…submit evidence of lines of credit…, of $500,000 or more for each area upon which an offer is made at the time of submission of proposals…” Later, in the same section, it says: “The failure of an apparent offeror to provide confirmation of the line(s) of credit within five (5) business days of the Government‟s notification of apparent award may result in a determination of non-responsibility…” When does the evidence of the line(s) of credit actually have to be submitted?

A. Evidence of an offeror‟s ability to obtain a line of credit must be submitted as part of the proposal in the form of a commitment from a recognized financial institution. Confirmation of execution of the line of credit must be received within 5 business days of Government notification that a business has been selected as the apparent awardee.

15. Section 52.228-16 Are the premiums for performance and payment bonds considered a pass-through expense? Are there any minimum insurance (general liability, worker‟s comp, auto, professional liability, etc) limits or proof of insurance that the contractor must provide to HUD?

A. No. Bond premiums and costs associated with the line of credit are indirect/overhead costs, which will not be directly reimbursable by the

Government.

16. Getting a pre-qualification letter for a line of credit by bid time will be very difficult with such short notice for most small businesses, are there any other options to provide financial capability at bid time in lieu of a letter confirming a line of credit?

A. No alternatives are being offered. If a Small Business is unable to obtain the necessary commitment for a $500K line of credit from a recognized financial institution, and the offeror is otherwise selected as the apparent awardee, the Contracting Officer will request a Certificate of Competency

(CoC) from SBA as part of the responsibility determination process.

17. The pass-through expenses are listed on the total column of the Microsoft Excel

Sheet with the other required total prices. Will these pass through expenses be added into the amount needed for the 2% performance bond and 2% payment bond?

A. See the answer to Question 11 above. The bonding amount is determined based on the guaranteed minimum for IDIQ contracts rather than the evaluated award price.

Proposal Content and Solicitation Clarifications

18. Should the cover letter be included with each volume or will there only be ONE cover letter? If only one letter, will the cover page detailing company, area and volume information for each volume be counted in the total page count? If only one letter, how would this be delivered electronically (specifically, RFP says that the electronic version should include 4 separate folders with a volume in each folder – if this is true, and there should not be a cover letter with each volume, then how does the cover letter get delivered electronically?)

A. One Cover Page for the entire proposal

19. The page count is not adequate to include what you have asked for in the response. Are you going to change it?

A. No, HUD is confident that Offerors can fully address the technical proposal within the existing page limits.

20. Please confirm that submitting a proposal includes 2 each CD‟s or DVD‟s and 1 original hard copy (1 book or binder for each of the 4 volumes). Are any hard copies of the original needed?

A. No. HUD is only requesting 2 CD‟s or DVD‟s and 1 original hard copy.

21. Will HUD allow 11x14 paper inserted in landscape orientation for Charts?

22. Will HUD exempt resumes, a glossary of terms/ abbreviations, a cover letter, and a table of contents from the page limit for the Technical Approach?

A. No, Offerors should only be providing what has been requested in Section

L.

23. The Solicitation states the page limit for the Technical Volume is 15 pages

“inclusive of the workflow chart, organizational chart and resumes.” Will HUD consider exempting the charts and resumes from the page limit?

A. No

24. Does HUD require one proposal for each contract area being proposed, or for each HOC? Should offeror‟s proposing more than one contract area describe their solution for multiple contract areas and HOCs within one proposal?

A. One proposal for all contract areas.

25. Is it correct that the format of the Volume II proposal is 1.5 line spacing with a maximum of 15 pages?

A. Yes

26. If an offeror plans to bid multiple areas from this solicitation do they need 4 volumes for EACH area being bid or can they bid both areas in the same volume set? If all areas are bid then will each of the 12 geographic area require its own

(Individual) response?

A. No, one proposal for all contract areas. Volume IV must capture separate pricing spreadsheets for all areas proposed.

27. Are the Table of Contents, company statements and executive biographies counted towards the 15 page limit for Volume II?

A. Yes

28. Section L page 144 b. of the solicitation says that volume II "shall not be more than 15 pages inclusive of the workflow chart, organizational chart and resumes."

Can any additional resumes be included as an exhibit in Volume I?

29. The RFQ did not provide a single page checklist or attachment for every item needed for a responsive bid. Can you direct us to that page or attachment?

A. No checklist is provided; see Section L for submission requirements.

30. If an offeror has partnerships (separate companies with different ownership and controlling interests) throughout the country then can each of those different partnerships/companies apply for a contract award?

31. If an offeror has the ability to handle most, if not all, of the areas in the country then can they submit a bid for each area?

32. Given the 15 page limitation on Volume II – Technical Approach Proposal do we need to include a draft Property Management Plan, draft QC Plan and draft

Contingency Plan in this part of the proposal?

A. See Section L for submission requirements.

33. Are key personnel names and resumes are required?

A. See Section L for submission requirements.

34. Can color be used in graphics?

A. Yes

35. Is less than 10+ font allowable on any charts or tables that may be included with the proposal?

A. Graphics and charts may include less than 10 point font, provided that it is legible without resizing when viewing hard or electronic copies. HUD will not be responsible for evaluating documents that are illegible.

36. M.4.2 on Page 151) The government states that a bidder must provide an

“Organizational Chart with a staffing plan outlining the number of personnel for each major area of Operation”. If the bidder is bidding on more than one contract area, is the bidder required to submit separate staffing plans and personnel counts for each contract area?

A. No, the staffing plan should account for all areas proposed, and any differences between the numbers or types of employees in each area should be accounted for in the single plan.

37. Will fold-out pages be allowed for items such as the Work Flowchart? If so, will they be counted as one or more pages?

A. Fold out pages are not allowed.

38. Can an offeror submit more than one proposal for the same geographic areas?

One proposal from the offeror‟s company, as well as one where the offeror has a partnership with another small business FSM vendor.

A. Offerors may be affiliated with multiple partnership/teaming agreements.

However, Offerors are reminded of the duties and disclosures required under FAR 52.203-2, Certificate of Independent Price Determination.

39. Are you willing to extend the due date? There is a holiday in the time frame and with the magnitude of the changes needed more time is needed as well.

A. If an extension is granted, it will be specified on FBO and in the body of the Amendment.

40. Are we required to include a Quality Control Plan in the proposal? Instructions in section L do not include a preliminary QC Plan to be submitted as part of the

Technical Proposal. Please clarify.

A. No. See Section L for submission requirements.

41. PWS paragraph 5.1.7.1 references a Quality Control Plan submitted during the

“RFQ process.” The proposed contract is an RFP. When and what is the RFQ process? When is the Quality Control Plan due? Please clarify.

A. The process referenced in Paragraph 5.1.7.1 was obsolete, and has been updated as part of Amendment 1.

42. Section 5.1.7 There is a reference to a final Quality Control Plan due after contract award. Is a draft Plan required to be submitted in the Proposal? Please clarify as this is not referred to in Sections L or M as a requirement.

A. See the response to Question 41 above and Section L for submission requirements.

43. With respect to the language where the FSM is responsible for the HOA late fees, filings, attorney's fees etc with regard to a property, how does HUD propose to make those fees attached to the FSM in States that "cannot under the state law" release info on a property prior to the transfer of deed?

A. A copy of the unrecorded deed is to be attached to the 27011 Part A claim submitted by the lender and uploaded in P260 shortly after the claim is filed. If the Deed is not attached or in P260, the FSM can contact the

MCM to get a copy.

44. If HOAs require proof of ownership (the deed), will HUD exempt the FSM from penalties that accrue during the time the deed is not available? Will HUD exempt the FSM from responsibility and penalty if a delay in closing, causing an extension, results due to issues the FSM cannot prevent or resolve?

A. The FSM will be responsible for penalties, late fees, attorney fees etc from the date of assignment to date of closing. If the deed is not immediately available in P260, the FSM is expected to be proactive and make contact with the MCM to obtain a copy of the deed. The FSM will not be exempt from any responsibility, penalties, late fees, extension fees, etc for their failure to pay timely HOA and other assessments and bills that HUD is legally obligated to pay.

45. Will HUD allow the Closing Agent to put the HOA payments that are due and payable on the HUD-1 as a charge against HUD as the seller?

A. The FSM has a responsibility to pay and settle outstanding HOA and utility bills prior to closing, and preferably as early in the process as possible. Provided that the FSM can demonstrate due diligence, such payments may be authorized by the GTR on the HUD-1 to prevent closing delays, but this shall not be authorized as a regular course of business.

46. In section C.5.1.12.5, is the prohibition on performing both pre-conveyance and post-conveyance work extended to individual properties only on a case-by-case basis, or does the prohibition prevent the offeror from providing pre-conveyance services at all? Can safeguards be put in place as part of an offeror‟s technical proposal that would prevent contractors or subcontractors to perform both pre-conveyance and post-conveyance work on the same property?

A. The prohibition is against doing pre-conveyance work on properties that could later be assigned to the FSM. The FSM may include safeguards it wishes to implement to prevent their or their subcontractors doing pre and post conveyance work on the HUD properties. Any safeguards the FSM implements does not negate the required written annual certification from its subcontractors affirming that they do not perform pre-conveyance work on FHA Single Family Insured properties.

47. There are two references within the solicitation: (1) "Single family" and (2) "unit two" -- As such, when an offeror bids on a given property, does the bid apply to both single family homes and multi-family homes ("unit two")?

A. By definition, single family properties may contain up to four units.

Multi-family properties contain five or more units and would not be handled under the terms of this contract.

48. What does an initial inspection consist of? Which document represents the protocol for an initial inspection?

A. The HPIR as outlined in C.5.2.2.1

49. What is the definition of a board up? How many openings are included?

A. Boarding is a method of securing and protecting a property against unauthorized entry or damage by environmental elements. All openings

(doors and windows) may be included.

50. What are the payment terms for submissions?

A. See Section G

51. What is the turnaround time to approve additional work (above the $2400 cap) requested? Is there a cap to additional requests submitted, e.g., mold accelerates between initial request and response?

A. Replies from the GTR to work notifications should be completed within

24 hrs. There are no established caps for additional worked needing completion.

52. Will an awardee receive power of attorney to act on behalf of HUD to communicate with utilities, local government, etc?

A. Contractors will receive a letter of redelegation of authority designating key or other personnel to act on HUD‟s behalf and sign certain documents.

53. Can an organization that is already providing FSM and/or AM services as a prime and also has a technology platform, provide its technology platform to other service companies for FSM 3.6 contract in the same regions?

A. See the Conflict of Interest Clause in an existing contract if applicable and

Section H.12 of the solicitation.

54. Will the FSM require GTR approval to activate the utilities in areas where they deem it necessary to turn the utilities on for protection against freeze damages during the cold/winterization seasons?

55. May the FSM charge buyers for re-winterization fees during non-winterization months?

A. See Section C.5.2.4.3

56. Are FSMs required to inspect wells and septic‟s and report results via the

PCR/HPIR?

A. Yes the FSM will be required to determine the operational and adequacy of the system and report this on the HPIR.

57. Are the FSMs required to upload HOA, utility and other bills and payment information in P260 within 24 hours of receipt and or payment? How will the

FSM communicate to the AM that the bills/payments are uploaded in P260 so the

Closing Agent can be notified?

A. The FSMs are required to upload HOA, utility and other bills in P260.

The AMs have access to P260.

58. Will the key codes on locks be changed every six (6) months on new assignments?

A. See Section C.5.2.2.3.4

59. Section 6.2.1.1 says that the contracts are bid on the assumption that the lender/mortgagee will comply with the Mortgagee Letter in placing the property in conveyance condition. When this does not occur, is there any recourse for the

FSM to recoup the excessive financial loss due to lender/mortgagee negligence?

A. There is no financial recourse to the FSM if a property is received that is not in conveyance condition.

60. Section B – Routine (Ongoing) Property Management Fees says “The contractor is paid based on the date of performance rather than date of assignment”. Please explain what date of performance is and the services which will trigger this date.

A. Date of performance is the date that the service is performed. Services that are associated with CLINS 0005-0007 (On-going Property

Management (PM) Fee, HUD-Owned Vacant; Inspection, Initial Services, On-going PM for Custodial Properties; and On-going PM Fee, Vacant Lot.

61. How does the FSM process transmittals for monthly maintenance fees?

A. Transmittals are processed in P260 and are available after the 5 th of each month.

62. How does the FSM process reimbursement transmittals for property related expenses?

A. Separate invoices for authorized reimbursable expenses are submitted against CLIN 0009, or the corresponding option CLIN.

63. Is Vacant Property Registration required for HUD properties?

A. Yes, based on the municipalities where the property is located. Offeror‟s have to check with state and local requirements.

64. Is the FSM compensated the same for properties with multiple units, out buildings or for properties on large parcels of land?

65. What happens if the FSM is found to be negligent (i.e. responsible for accidental water damage) and what is the FSMs liability?

A. The FSM, as HUD‟s caretaker, would assume financial responsibility for repair or replacement costs of the asset.

66. How often does HUD review a FSM‟s performance?

A. Performance is reviewed on a continuous basis. Performance scorecards will be released at least quarterly.

67. What happens if an FSM fails to complete any service on time? Would the FSM be required to reimburse HUD for any services?

A. If a contractor fails to complete any of the required services within the time constraints specified by HUD, the contractor may face withholdings from its monthly invoices. Those withholdings would be equivalent to the amount of work not performed, and will not be punitive in nature. Any services rendered late, barring any Government caused delays, may include withholdings associated with HUD‟s holding costs. Additionally, late performance due to contractor caused delays will result in documented negative performance.

68. If a potential buyer or agent causes damage to a property (i.e. de-winterizes etc.), is the FSM responsible and does HUD reimburse the cost of cleanup and the necessary repairs?

A. This is based on a case by case situation.

69. Does HUD pay for mold remediation? Is this something the FSM is responsible to remediate?

A. See Section C, Performance Work Statement, 5.2.6.2, Mold.

70. Routine inspections are required at a minimum of every two weeks. Will it be acceptable to do between 12-16 days as long as the history to a period shows that the average inspection was done every two weeks?

A. The clock for routine inspections starts with completion of the HPIR, and at least one inspection is required every 14 days thereafter.

71. Section 5.2.2.1.3 states the contractor is responsible to include outstanding code violations, pending litigations, demolition order and any other legal actions that may affect the property. Will the MCM run title upon conveyance to determine such?

A. No. The FSM is expected to be proactive in determining if any of the above exists.

72. Does the two week inspection cycle start upon promoting the property to Ready to

Show condition (1c)?

A. No, see the response to Question 70 above.

73. 5.2.8 Vandalism: is there a dollar amount limit that the contractor is responsible for?

A. See Section C, Performance Work Statement, C.5.2.8.1, Other Vandalism

Repairs.

74. Missing Appliances (5.2.8.2) - appliance replacement allowance amounts seem outdated. Will an update to these amounts be released?

A. The contractor has to comply with the allowance stated in the Performance

Work Statement, Section 5.2.8.2.

75. Performance Requirements Statement (PRS) - 5.2.2.2: How does a review of

Initial service costs, which are fixed price, drive the GTR review?

A. It would impact acceptance and payment of initial services, if the property was improperly promoted to Step 1c prior to it being ready. In that instance, the property would revert to Step 1, and the contractor would not be eligible to bill for the initial services a second time.

76. HPIR hazards are to be remediated within 1 day of the inspection, however the contractor has 5 days after the HPIR to bring the property into compliance. Due to the severity of some hazards it is extremely difficult for the items to be remedied within the 24 hours. Can safety hazards found during the HPIR be addressed within the time frame HUD allocated to bring the property into compliance?

(5 days after Part I and II of HPIR completion)

A. The contractor has to comply with the terms, conditions, and requirements of the contract.

77. Section 5.2.2.3.8- Are the Health and Safety hazards described in this section related to routine services after the property has been promoted into a 1C?

78. 5.2.3.1 Ready to show condition- Will the AM follow the same definition described in this section as not ready to show when issuing a not ready to show

WON to the FSM or is there another definition detailed for the AM? If so, can the

FSM have it?

A. The ready to show condition is the same in both contracts.

79. 5.2.4.3 Purchaser testing states the contractor shall allow the purchasers the opportunity to activate and deactivate the utilities however there are instances where purchaser testing is not approved due to the condition of the property. Will

HUD provide an approval to make the minimum necessary repairs to allow potential buyers to perform an inspection prior to sale?

A. Perhaps on a case by case basis if the property is under contract to an owner/occupant buyer.

80. 5.2.5- Rents, Fees, Dues and Assessments: Will HUD provide a 30 day grace period from FSM assignment due to the timeframe taken to send notifications out and receive the ledger etc.?

81. 5.2.6.1.3 LBP Inspections: Can the FSMs get a copy of the LEC‟s timeframes as stated in the LEC‟s contract so that we can ensure they are in compliance as requested in section 5.2.6.1.3?

A. In order to comply with the requirement of this section the FSM will have a copy of the timeframes of the LEC contract.

82. 5.2.16 Transmittals: Will the FSM be provided a timeframe for the disbursement of funds as it relates to transmittals? How long does HUD have to reject/approve a transmittal once it has been RA‟d and delivered for HUD‟s review?

A. Invoices will be paid in accordance with FAR Clause 52.232-25.

83. Is the amount of Show Case Properties going to keep increasing?

A. HUD cannot provide an answer at this time.

84. Will HUD consider a 30 day grace period for late fees from the date of assignment?

85. Does the contactor have to provide a bid for ALL properties that are vandalized or only the cases that are in steps 7 & 8?

A. All vandalized properties.

86. As part of the PRS, one of the performance measures is: Contractor ensures closing occurs in a timely manner (step 8 to Step 9) Is this inherently an AM function and not an FSM function?

A. The FSM is responsible for paying the HOA and other fees before closing.

Failure to do so will delay closing.

87. For Stabilizations completed prior to sales cancellation should FSM proceed with the clearance inspection or will this require GTR approval?

A. Proceed to completion.

88. Section 5.2.6.1.3 reads: ....the Contractor shall comply with the requirements discussed in Section 5.2.7 and in Attachment 3. What requirements discussed in this section are to be applied to Lead Based Paint Inspections?

A. Amendment 3 properly references Section 5.2.6, which deals with LBP requirements.

89. Section C.5.2.6.1.3 If the FSM will be required to submit LEC invoices in 3 business days, will all additional back-up documentation (e.g. AM LBP

Inspection Work Order Notification, Proof of FHA Sale, Proof of year built, etc.)

be provided by the HUD-LEC?

A. No. The LEC contractor will not have access to P260 and that information. The FSM must provide that when submitting the transmittal for the LEC contractor‟s payment.

90. Section C.5.2.6.1.7 Asset Control Area (ACA) Properties: Can HUD clarify how to proceed with properties sold with FHA 255 and VA loans with regards to LBP inspections?

A. In order to qualify for a 255 (home equity conversion mortgage-HECM) you must own the property. If a purchaser is using a FHA loan then FHA will obtain the necessary LBP clearances provided the cost of abatement does not exceed $4000. If the cost does exceed $4000, the purchaser may elect to cancel the contract or obtain alternative financing.

91. Section C.5.2.7.2 Active Infestation: WDO treatments in CA typically exceed the

$1000 threshold indicated in this section since section 1 clearances is required which usually includes wood repairs. Will there be a different cost threshold implemented for 5S?

A. No, approval by the GTR is still required.

92. Section C.5.2.7.2 Active: The majority of WDO inspections and ultimately treatment/repairs are completed as a result of a FHA sales contract, with that said;

how can treatments and/or necessary repairs be completed prior to listing?

A. It will not be necessary unless there is an FHA sale.

93. Attachment 3: 4. The AM & FSM Contractors shall perform the actions described in 2(a) through 4(b) in a time frame that will not delay the scheduled closing.

Please clarify to what document “2(a) through 4(b)” is referring.

A. The document is referring to Attachment 3. Attachment 3 has a numbering sequence error that has been corrected in Amendment 3.

94. Can there be any occasion in which a property built prior to 1978 and financed with a FHA 203(k) loan will require LBP Stabilization?

A. If the property comes back into inventory the property will require LBP

Stabilization.

95. Where is guaranteed minimum established in Paragraph I.4 (C.1.4, 1.Realignment)?

A. The guaranteed minimum is located at Section I Clause 2452.216-76.

96. General Requirements (pg. 35. Section C.5.1): Does this general statement include properties that are not in conveyance condition or have surchargeable damage?

A. Yes it does.

97. Please define agent, as referenced in C.5.1.12.5.

A. Any person or entity associated with the awarded Field Service Manager.

98. Will the HUD Scorecard and methodology be made available to the FSM prior to initial evaluation?

A. No.

99. The solicitation references both contractor employees working in a HUD facility

(page 85 in discussion about PIV cards) and the contractor having a staffed and equipped office. Can you please clarify whether any contractor employees will be expected to work on-site at a HUD facility or will be able to access everything we need remotely from a contractor location?

A. Work will be accomplished at the Contractors‟ worksite.

100. Regarding PIV cards, are these only to be used at HUD sites and on government-issued computers? If they are required to access HUD systems from off-site contractor-owned computers (as a CAC or computer access card), can you provide any details on what type of computer equipment is needed to be compatible with the PIV-card access?

A. No special computers are needed for PIV-card access.

101. Are you able to provide an estimation of how much “walk in traffic” there could be to a contractor‟s office location?

102. Can a contractor win more than one contract area initially?

103. Re: Section C.5.3. The PRS Acquisition Post-Conveyance requirement stipulates that the “Contractor ensures closing in a timely manner.” The FMS generally has no control over closings. Was this meant for the Asset Manager?

A. No, this is to ensure that the FSM has covered all of their responsibilities before the actual closings.

104. Can a vendor bid on more than one area and if they win decline one or more winning bids?

A. Yes, offeror‟s can propose on more than one area. If an offeror declines they should submit a formal withdrawal of their proposal.

105. Is a bidder forbidden to do any of the actual work on repair of assets? Can a bidder use in house staff or subcontract to do balance of work?

A. No prohibition exists unless there is a conflict of interest addressed in the

PWS.

106. This RFP is to contract the FSM FIELD SERVICE MANAGER role not the other three mentioned in the RFP?

A. Yes, this is for Field Service Managers.

107. What is considered a fully staffed office? Min number of personnel?

A. This is a business decision. This is a Performance Work Statement and

HUD is asking offeror‟s to tell us how they will meet or achieve the desired outcomes.

108. Page 43, Section 5.1.12.5 Prohibition on Pre-Conveyance Preservation and

Protection Work of the Solicitation. The first sentence of this Prohibition clause is incomplete and thus the meaning of this clause is unclear. Is HUD restricting all pre-conveyance work of all type even if located in different states, or are they prohibiting pre-conveyance work on the same property? Is it the intent of HUD to disqualify any contractor because they supplied pre-conveyance work at all in the past, without restriction to which properties without any time restriction?

A. FSM contractors are prohibited from doing both pre-conveyance and pos-conveyance services in the same geographical area. Any conflicts of interest that arise based on a contractor‟s past pre-conveyance experience will be dealt with on a case by case basis with the GTR.

109. Section M.4.1 page 152, The use of the word “capacity” rather than “capability” implies that in order to be deemed technically qualified, an FSM would need to demonstrate they are already supplying services in EVERY state within a territory being bid, rather than supplying services in other states and demonstrating a capability of expanding coverage to new/additional states. However, that conflicts somewhat with the next portion of the sentence referring to expansion capacity, because of the use of the word “and” rather than or. Please clarify.

A. Addressed in Amendment 1.

110. Can one company only be awarded one total area or can one company be awarded more than one area, just separate contracts for each?

A. A company can be awarded more than one area.

111. Please confirm that C.5.2.10.2 is correct when it says that the contractor is not required to keep the interior of an assigned property clean after the Initial

Services. C.5.2.3.1 contradicts this statement. Please clarify.

A. That portion of C.5.2.10.2 refers to properties that are in a custodial status and will not currently be assigned to the AM for marketing.

112. Please confirm that 5.1.1.6 is speaking of the contractor continuing the practice of printing and filing as opposed to amassing files and never shipping any out until the end of the contract. Otherwise the statement contradicts D.3.

A. Yes, files will be shipped as outlined in D.3. The contractor is expected to create the files and ship out as appropriate.

113. Is there a standard certification that each LEC should be providing?

114. Does HUD have a checklist that they want us to use for LEC certifications?

115. Section B.6 – Ordering Pg 4. Written Task Orders for this service contract will be issued on a quarterly basis, in accordance with Section C, paragraph 1.4. What does this mean?

A. The Contracting Officer will issue a new task order every three months to provide the contractor with a new quantity amount.

116. Pre-conveyance inspection. No later than 2 days (meaning calendar days) after notification of a request… If notification received on Friday, Monday submission of inspection would be considered late, correct?

A. No. An exception would be made if it is a government caused delay.

117. Section 5.1.12.5 page 43. “The Field Service Manager must obtain written certification on an annual basis from its subcontractors affirming that they do not perform pre-conveyance work on FHA Single Family Insured properties.” Please clarify this will be a requirement to all subcontractors.

A. Yes, it will be a requirement for all subcontractors.

118. Pg 80, G.3: Does this section apply to an FSM Contractor?

A. Yes.

119. The attachments list 17 Mortgagee Letters are referenced, of which 8 are expired.

Are all of these Mortgagee Letters enforced?

A. Yes, unless superseded.

120. Can a start-up company with no financial history or background bid on this project?

A. See Section L.5 of the solicitation.

121. Section 5.1.9: There is a reference to a final Contingency Plan due after contract award. Is a draft Plan required to be submitted in the Proposal?

A. No

122. Section 5.1.4 Will Inspectors have the ability to electronically complete the inspection forms through a portal upon contract award?

A. See Section C.5.2.2.1

123. How long is a property being held in inventory before it closes?

A. Depends on the market conditions.

124. On page 86 of 153 of the solicitation, paragraph (b) of 2452.209-70 POTENTIAL

ORGANIZATIONAL CONFLICTS OF INTEREST. (FEB 2000) reads as follows: “The nature of the potential conflict of interest is [Contracting Officer insert description]:” Is there a description that should be inserted?

A. Addressed in Amendment 1.

125. On page 133 of 153, no NAICS is listed at (a)(1) of 52.219-1 SMALL

BUSINESS PROGRAM REPRESENTATIONS (APR 2012). What is the

NAICS?

A. 561720, Janitorial/Custodial services

126. Section 5.1.8 mentions contractor shall develop and implement a property management plan (PMP). Is this inclusive of the 15 pages?

A. The Property Management Plan is not included in the 15 page limit for the

Technical Proposal.

127. If a property was properly secured by the Contractor, why would vandalism that is out of the control of the Contractor, be a Contractor expense?

A. See C.5.2.3, C.5.2.8, C.5.2.8.1 and C.5.2.8.2.

128. The task protocols for viewing/reporting on the properties is a minimum of every four weeks and in some areas every two weeks, is it possible to have a map of the areas that require more frequent visitations?

A. No.

129. In this third generation of contracts will incumbents be bidding?

A. The Government has no way of determining who will submit a proposal.

130. 52.222.41 - What are the wage determinations?

A. Wage determinations are available at www.dol.gov.

131. Section 2452.209-71 LIMITATION ON FUTURE CONTRACTS. (FEB 2000)

(b), states that Lead Based Paint (LBP) remediation, inspection and clearance for

Single-Family FHA REO Inventory are considered to be a conflict of interest.

However, Section H.2 2452.209-70 POTENTIAL ORGANIZATIONAL

CONFLICTS OF INTEREST. (FEB 2000) includes only Lead Based Paint

Abatement services, and not Lead Inspection or Clearance Assessments. Please clarify whether holding a current LEC contract to perform inspection and clearance for FHA REO properties is considered a conflict of interest for bidding on an FSM in the same contract area.

A. Yes it would be a conflict.

132. 1) Section C.5.3 Performance Requirements Summary (PRS) Contractor ensures closings occur in a timely manner – Please clarify; the performance measure is

“the average days between step 8 and step 9” and the MSR is “conforms with relevant industry standards or peer comparison.” Since closing can be dependent on many factors outside the FSM areas of control, and is set by an independent

Closing Agent Contractor, how will this measure be calculated? Will the FSM be able to review the results and provide a rebuttal for perceived Closing Agent or

AM Delays prior to the final rating being assessed to the FSM?

A. The average days is between step 8 (date the property goes under contract for sale) and step 9 (date the closing or HUD-1 information is input into

P260 and FSM services are no longer required)

Currently the days to close factor is 15% of the overall performance measure. The FSM will be able to review and rebut any results.

133. Section C.5.3 Performance Requirements Summary (PRS) Contractor exhibits responsiveness, - Performance measure is “fewer than 3 delayed closings due to

Contractor failure to pay rents, fees, dues or assessments. Please clarify if there will be exceptions by the GTR for evaluation purposes in situations which payments are delayed through no fault of FSM contractor i.e. closing dates extended at the last minute, a property is in HUD Legal, or if HUD (via the FSM) has paid what they are legally obligated to pay, yet the Closing Agent will not move forward with the closing?

A. Contractor may bring any performance issues/disputes to the attention of the Government Technical Representative and Contracting Officer.

134. Section 5.2.3 Performance Requirements Summary (PRS) Initial services are completed at a high standard; Properties are free of health and safety hazards;

Identified health and safety hazards are abated immediately – Will FSM have a chance to respond to instances in which the reporting is not correct (i.e.-identification of a health and safety issues in error).

A. Contractor may bring any performance issues/disputes to the attention of the Government Technical Representative and Contracting Officer.

135. What is the average length of time from the Initial Inspection of a property to it being sold?

A. This varies from property to property.

136. Section C.1.4 & H.2 Will realignment only take place within a HOC geographical boundary or could it cross over into other HOCs? Will realignment include realigning any areas that are under the M&M III contract?

A. If required, the resulting modification will align the geographical area of the affected contract.

137. Section C.1.4 Is there a time restraint on Non-Assignment, such as at the option year, or may the government stop assigning properties at any time within the contract year?

A. Contractors are not guaranteed any new assignment if the Government has stopped assigning assets.

138. Section C.1.4 Is it possible to have more than 1 FSM Contractor managing properties within a designated geographical region – similar to how it‟s currently being done in M&M III – due to realignment?

A. One award will be made per geographical area.

139. Section C.2.2 There is a definition for “Ready to Show condition”. The RFP also mentions, “Ready to List condition” in section 5.3. Are the definitions the same or is there a separate definition for “Ready to List condition”? If so, what is it?

A. They would be the same.

140. How soon after contract award will a contracting officer be assigned to the contractor? How soon after contract award will a GTR be assigned to the contractor?

A. The Contracting Officer and Government Technical Representative will be identified in any resultant contract award.

141. Please define all the required physical files that the FSM contractor is required to print, maintain, retain, produce, and send to HUD.

A. The requirements for physical files are identified throughout the solicitation.

142. What does HUD consider “regular office hours”?

A. This will be discussed with interested parties during the post award conference and will be based on the office hours of the relevant

Homeownership Center.

143. Section C.5.2.2.1.1.1 Will the contractor be reimbursed for fixing properties with assessed damages? If not all damages, what are examples of approved damages that are reimbursable?

A. The Government Technical Representative will review all pass through cost for approval in accordance with the Performance Work Statement.

144. The FSM contractor has 7 days to get a property in “Ready to Show” condition after date of assignment. How will HUD handle a situation where a fee is assessed within the 1st 7 days, such as a fine assessed by a local agency or HOA for overgrown grass, etc?

A. See C.5.2.5.

145. Section C.5.2.4-5.2.5 How will HUD treat a fine for a late payment for a utility or

HOA that is the same date the property was assigned?

A. Please reference C.5.2.4 for late payment of utilities and C.5.2.5.1 for penalties and interest on HOA.

146. Section C.5.2.8 & C.5.2.8.1 Confirm that any vandalism that is NOT graffiti, damaged locks, damaged windows, damaged doors, or a health and safety issue would be reimbursable under section C.5.2.8.1?

A. HUD shall reimburse the contractor for the cost of the approved repairs as a pass through expense provided that HUD does not determine that the vandalism is due to the contractor‟s failure to properly secure the property.

See C.5.2.8.1 for reference.

147. Section C.5.2.12 Is a sign-in sheet required for “Vacant Lots”? If so, where should the sign-in sheet be stored?

A. A sign in sheet is not required for vacant lots.

148. Where can the Financial Control Manual be found? It does not appear to be located in Attachment 2.

A. This is not identified as an attachment in the solicitation.

149. Section C.5.2.17.2: Do Davis-Bacon rates apply to lead based paint stabilization work orders over $2000?

A. This will need to be evaluated on a case by case basis depending on the effort required to abate the lead paint as defined by the Davis Bacon Act.

150. C5.2.2.2/C5.2.2.3 What is the “dispute resolution” process if the FSM disagrees with the AM‟s assessment of “ready to list conditions” or “ready to show conditions”

A. All disputes should be elevated to the Government Technical

Representative and Contracting Officer for resolution.

151. Section C.5.2.3 What is the dispute process if the FSM disagrees with the AM‟s identification of H&S hazards and/or clean, safe, and sanitary condition?

A. All disputes should be elevated to the Government Technical

Representative and Contracting Officer for resolution.

152. Section C.5.3 If the minimum goals for bi-weekly inspections are not met 100% of the time, will there be any financial penalties (i.e. liquidated damages)? If so, what are they? And how are they calculated?

A. Liquidated damages clause is not incorporated into the terms and conditions of the subject solicitation. Please refer to C.1.4 (2).

153. Performance Requirements Summary: Under Acquisition Post Conveyance –

Please define “relevant industry standards”.

A. Generally accepted requirements followed by the members of an industry.

Is this measurement meant to compare each FSM against another?

A. No

Will comparisons be made across HOC jurisdictions?

A. No

Will results be published?

A. No

Would the FSM be responsible if the buyer has issues obtaining financing, or the AM is unable to resolve a Title issue which is not in the Sigma contract and would delay closing?

A. No

The FSM also does not have the quality control authority over the AM‟s to ensure buyers are adequately ready to close through pre-qualification and being provided the appropriate extensions of time to close. How are we to achieve these results without there being a controllable and quantifiable standard?

A. The FSM will not be held accountable for extensions to close due to buyer issues.

Will the FSM be held accountable for issues as described above if there is ample evidence in P260 that invoices were paid in a timely manner so as not to delay the closing? Will HUD be reviewing all these documents before issuing an evaluation?

A. “Timely” is the issue. Invoices should be paid and documentation uploaded into P260 not only to prevent extensions but also to prevent a delay in scheduling a closing.

Will the FSM be held accountable for LBP inspections/clearances, termite inspections that might delay closing because the FSM was not notified in a timely manner by the AM?

154. A 100% sampling is a great indicator of performance, however, we strongly disagree with the change in the minimum satisfactory performance requirements being a perfect 100% (versus 95%) for bi-weekly inspections. All other items have a minimum satisfactory rating of 95% and there are too many issues and too many properties that would prevent any FSM contractor to meeting the minimum rating of 100% of the time. There are issues with P260 being available only 50% of the time, weather/natural disasters, the human element where an inspection may be one day late. We believe this item should fall in line with the other performance ratings at 95%. Will HUD consider revising?

A. No revisions required.

155. Section C.6.1.1 How will protests affect the deadlines specified in “Contractor

Responsibilities”? Will the clock start immediately after all protests are resolved?

A. Protests are handled in accordance with FAR Clause 52.233.3.

156. Section H.2 If “the resulting modification will realign the geographic area of the affected contract, but will not increase the original contract ceiling”, can it be anticipated that each contract ceiling amount will be equivalent across the board, so that other FSM contractors may have an equal opportunity to take over a different contract area where a contractor in that area is not performing?

A. No such assumptions should be made.

157. Section C.5.1.1.6 Can files be stored electronically as in accordance with Section

H.16? And if not, can physical files be stored in the contractors‟ other offices which may be located outside of the HOC but that may have more space to store physical files?

A. See C.5.1.2.

158. Is the maximum allowable extension of performance time 6 months or 12 months as 52.216-22(d) states 12 months or 6 months as 52.217-8 states?

A. The initial ordering period is identified in 52.216-22(d) and if needed, 52.217-8 speaks to Option to extend services/

159. C.3.2.1 & C.6.1.1 Section 3.2.1 states “Contractor must submit required forms for staff requiring systems access within 30 days of contract award.” which differs from section 6.1.1 “The SSA shall arrange for the completion of the forms and shall transmit the completed forms to HUD‟s Security Administrator no later than the 14 th calendar day after the contract award date”. Is the requirement 30 or 14 calendar days to submit this paperwork?

A. 14 days

160. For the Technical Approach Proposal, should we address each item in the

Performance Requirements Summary so that we have a list that references the requirement number?

A. See sections K, L and M.

Geographic Areas

161.…