MM 3 6 Industry Day Questions and Answers.pdf

M&M 3.6 Industry Day Questions and Answers

Funding:

1. As we acknowledge the lack of cash availability, how is the SBA creatively looking to assist cash strapped small business with some credit challenges to be able to participate in the program and create jobs?

Answer: Information regarding SBA’s loan programs can be accessed at http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs, and qualifying small businesses may be able to identify loan/grant opportunities using SBA’s loan/grant search tool: http://www.sba.gov/content/search-business-loans-grants-and-financing.

2. Are the opportunities only available to a credit/cash heavy business?

Answer: Upstart costs are high for new businesses seeking prime contracting opportunities in support of the FSM requirements. Based on existing volumes, it is not unusual for Small

Businesses to rely on lines of credit as means for securing performance prior to payment.

HUD is taking steps to reduce the geographic footprints of the areas to lessen this impact to

Small Businesses, but it is unlikely that the areas will be reduced to a point that it would altogether eliminate the need for either cash or credit liquidity.

3. Will the contract payment utilize the President’s fast payment program of 15 days?

Answer: Yes. To the maximum extent practical, HUD will attempt to meet the 15 day payment terms for Small Businesses. While the President’s Executive Order did not supersede the net 30 terms required under the Prompt Payment Act, HUD has made changes to its payment processes and systems to expedite payments to Small Businesses, often meeting the 15 day target established.

Solicitation/Proposals/Awards:

1. Will the contract be awarded based on best value?

Answer: Best Value procedures contained under FAR Part 15 include both Low Price

Technically Acceptable (LPTA) evaluations and Tradeoff Analysis between price and technical factors. No final decision has been made at this time, which method HUD will seek to utilize. However, HUD does intend to award based on one of these methods.

2. In the proposal will we need to include a quality control plan or property management plan?

http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs http://www.sba.gov/category/navigation-structure/loans-grants/small-business-loans/sba-loan-programs http://www.sba.gov/content/search-business-loans-grants-and-financing http://www.sba.gov/content/search-business-loans-grants-and-financing

Answer: Specific submission requirements will be specified in the solicitation in Section

L, upon release.

3. How many pages will be granted for past performance in the proposal?

Answer: See Response to Question 2 above.

4. What is the target release date for the solicitation and what is the worst case scenario date?

Answer: HUD intends to release the solicitation in the mid-April 2012 time frame in order to meet the estimated FY2012 (Ends 9/30/2012) award schedule. If the solicitation is not released prior to May 2012, this schedule will be difficult to achieve.

5. What will be the performance period for the new contracts?

Answer: The effective date or start date of the contracts will vary based on available funding and ceiling, as evaluated against existing expenditures for the specific areas.

Also see response to Question 10 below.

6. Will large companies be able to bid?

Answer: Any decisions regarding set-aside areas versus unrestricted competition will be made as a result of market research and responses to the Sources Sought notice received on or before 1/24/2012.

7. What will the evaluation factors be?

Answer: Evaluation factors will be identified in Section M of the resulting solicitation, upon release.

8. Will BPA’s be used?

Answer: BPAs are not anticipated, since HUD is forecasting single-award Indefinite

Delivery Indefinite Quantity Contracts.

9. Please confirm all due dates:

a. Sources sought

b. Synopsis and solicitation

c. Award of contracts

Answer: Responses to the Sources Sought notice were due 1/24/2012. Neither the

Synopsis, nor the Solicitation has been publicly posted at this time. See the response to

Question 4 above for the schedule forecast.

10. When a contract is awarded what is the duration?

Answer: Severable service contracts, which include options, such as the FSM services, have a 5 year limitation imposed by FAR 17.204(e). In the specific instance of FSM 3.6, we anticipate a condensed base period in order to get newly awarded contracts on the same 06/01 – 05/31 annual performance schedule as the existing M&M 3 contracts.

Therefore, the total planned Period of Performance (PoP), inclusive of options, is estimated to be between 4.5 and 5 years.

11. What is the projected value of the M&M 3.6 contract (an approximation)?

Answer: The estimated value is in excess of $1B, and will be more accurately forecasted as part of the Pre-Solicitation Synopsis.

Technology/Start Up Costs:

1. What type of technology do you require or desire from FSM contractors?

Answer: Per the PWS, HUD will furnish an electronic Bid Service Provider (BSP) and inventory tracking system, otherwise known as P260. However, the contractor is responsible for providing all other IT hardware and software to access the P260 system or any internal systems that the contractor elects to utilize.

2. What are the computer requirements to perform this contract?

Answer: See the Response to Question 1 above.

3. Do you have approximate start up costs for office space, computer systems, staff, etc. that would be needed to pursue this contract?

Answer: The Government does not have access to these costs. The cost of office space will vary significantly based on the number of staff, estimated square footage and the geographic area where the contractor chooses to establish operations.

4. Will HUD commit to providing P260 access “C” number assignments to awardees either prior to kick off meeting or within 30 days of contract implementation?

Answer: Access to the P260 system is contingent upon successful completion of the

Personal Identification Verification (PIV) process. This process is managed externally to

HUD, and while HUD cannot commit to a specific date due to the numerous external variables, including contractor caused delays in the submission process, HUD will attempt to clear as many contractor employees as possible during the 60 day start-up time, prior to assignment of inventory.

Teaming/Joint Ventures:

1. Will joint ventures and mentor protégées be allowed to participate?

Answer: To the extent that the business relationship is recognized by SBA, and meets the terms of any set-aside restrictions, the business will be offered the opportunity to compete.

2. What is the preferred way of forming teams?

Answer: HUD does not have a specific preference for teaming arrangements. Teaming, Joint Ventures, Mentor Protégé, and other such relationships are business decisions that need to be internally evaluated and made by offerors seeking to fulfill HUD’s requirements. To the extent that the proposed business arrangement submits a qualifying proposal and is eligible under the terms of competition, including any set-asides, the business will be evaluated and considered for award.

3. How can the qualified small business that partners with a large business subcontractor ensure that its partnership is not viewed as an affiliated business (ex: use of financing from the large business subcontractor)?

Answer: Affiliation rules differ based on the type of relationship established. I would recommend a meeting with your local SBA representative in order to determine the preferred business relationship based on your particular circumstances.

4. Can contractors supply their own list of teaming partners?

Answer: Yes. In fact, the Government must limit its role in shaping business relationships. While we certainly welcome the opportunity for Industry exchange and matchmaking sessions, HUD will neither specify, nor require a specific relationship between interested offerors.

Set Asides/Small Businesses/NAICS code:

1. Is the contract a set aside? If so, what groups are preferred?

Answer: No specific determinations regarding set-asides have been made at this time. See the response to Question 6 under the “Solicitations/Proposals/Awards” section above for additional information.

2. Can a small business owner be involved in any way with ownership or management of a large business?

Answer: Joint ownership, depending on the amount and type of ownership, does not always constitute affiliation under SBA’s guidelines regarding affiliation. For general guidance, you may refer to http://www.sba.gov/sites/default/files/affiliation_discussion.pdf. For more specific guidance, I would request that you contact your regional SBA representative.

3. Can small business owner have any interest, no matter how small, in a large business?

Answer: See the response to Question 2 above.

4. Is veteran owned certified business another type of set aside (not service disabled)?

No. While this information is publicly captured at award, FAR Part 19 does not recognize traditional veteran owned small businesses as a specific set-aside category at this time.

5. Do you have to be a registered WBE or is self certification okay?

Answer: SBA recognizes self-certification for Woman Owned Small Businesses

(WOSB), but reserves the right to determine eligibility under the WOSB Program.

6. Define the 2 million cap. If a company made 5 million last year do they qualify for application for an FSM contract?

Answer: The originally proposed NAICS code for FSM services, 531311, Residential

Property Management, which has a $2M Small Business size threshold, is currently under review by the SBA. As an alternative, HUD has proposed the use of NAICS 561720, Custodial/Janitorial Services, which has a Small Business size threshold of $16.5M.

Qualification as a Small Business under this threshold is calculated by averaging the 3 most recent years of annual revenues of the offeror at the time of proposal certification.

7. When will the final NAICS code for FSM be decided?

http://www.sba.gov/sites/default/files/affiliation_discussion.pdf

Answer: The NAICS code synopsized will be, in all likelihood, the same as what is formally solicited, but the NAICS will become final upon solicitation.

Fair Opportunity:

1. Will these new contract areas be under the fair opportunity requirement that the M&M III contractors are currently under?

Answer: No. Fair Opportunity, as described in FAR 16.505 only applies to multiple award IDIQ contracts, not the single-award contracts anticipated under FSM 3.6.

Conflict of Interest:

1. Is it a conflict of interest for a company to provide HUD FSM services if the company also provides property preservation services to the servicer/lender on the front end?

Answer: HUD considers there to be a conflict of interest if a contractor is providing pre-conveyance services to FHA inventory in the same area they seek to perform post-conveyance FSM services either as a prime or subcontractor. HUD relies on its FSM contractors/subcontractors to accurately identify property conditions upon conveyance, and in some instances prior to conveyance. Any contractor involved with the same inventory as a pre-conveyance service provider would not be in a position to provide impartial property inspections, and could ultimately put the Government in a position where it is expending unnecessary costs due to reconveyance delays or unreported violations to the Mortgagee Compliance Manager (MCM).

Subcontracting:

1. For a small business is there a cap as to the percentage of the business that can be subcontracted to a large business?

Answer: Small businesses are required to perform at least 50% of the total cost of contract performance under FAR Clause 52.219-14, Limitations on Subcontracting, which is mandatory for all set-aside solicitations above $150,000.

Future Procurements:

1. Since the FSM regions have to match the AM regions, does that mean that the Atlanta

HOC region will have to be recompeted for the AMs in that area? If so, when would this occur?

Answer: Current limitations with the P260 system require the FSM and AM areas to match. For administrative purposes, AM contractors in the Atlanta HOC would be re-enrolled in the new FSM areas in P260 at award to continue assignment of assets until those contracts reach their expiration date or existing contract ceiling.

2. Does HUD forecast any other recompete contracts for M&M III for either AMs or FSMs?

Will companies who have graduated their small business status under M&M III be eligible to bid recompetes?

Answer: It is likely that HUD will resolicit other FSM and/or AM contracts prior to the originally anticipated 5 year expiration of 05/31/2015. No formal schedule is available at this time, and no set-aside decisions will be made without first conducting market research for the specific areas being resolicited. HUD would anticipate using FBO as the forum for Sources Sought notices, Industry Days, etc. to advertise any future reprocurements.

3. If a replacement FSM becomes necessary, will the new FSM only come from one of the other existing FSM’s within that HOC area or could someone step in from the sidelines?

If so, how do you qualify to site on the sidelines?

Answer: The concept of realignment as it impacts the 3.6 procurement was briefly discussed during the Industry Day contract presentation. It is HUD’s intention to first consider other existing operational contractors in the same HOC Jurisdiction. However, any limitations of the referenced realignment clause will be made available upon release of the solicitation in Section H.

4. What is the time frame to recomplete the other five areas not included in the M&M 3.6 solicitation?

Answer: HUD is not prepared to release a formal schedule at this time. However, based on current expenditures against the existing contract ceilings, HUD is not forecasting additional FSM reprocurements in the next 12 months in the five areas not included as part of FSM 3.6.

Areas/Inventory/Realignment:

1. Will you provide us inventory numbers and average hold times per state?

Answer: See Attachment, FY11 Assignments by State. Average hold times are constantly changing. We will provide hold time estimates as part of the solicitation documentation.

2. Wouldn’t growing one contractor’s area have to affect another contractor’s inventory?

Answer: Yes, but not immediately. Realignment gives HUD the authority to change the geographic area in terms of new assignments only. Any reassignment of existing inventory would be handled as a Partial Termination for Default or Convenience, depending on the circumstances. However, a lower intake of new assignments would gradually lead to lower overall numbers, once existing inventory was sold, closed, and reconciled.

3. As a small business can we apply for more than one area?

Answer: There is no prohibition on the number of areas an offer seeks to apply for.

However, financial and manpower resources are considered in making responsibility determinations prior to award. If an offeror does not have demonstrated capacity to perform in multiple areas, HUD may refer the matter to SBA for a Certificate of

Competency (COC).

4. How many properties are in each region?

Answer: See Attachment, FY11 Assignments by State.

5. How were the regions chosen?

Answer: Historical volumes, geographic proximity, HOC jurisdictions, size/ease of performance, and contract administration burden were all were taken into account.

6. Would HUD consider separating the Caribbean from Florida?

Answer: Based on historical volume, the contract administration burden would not warrant a separate contract for the Caribbean as a stand-alone area.

7. What is the minimum area size?

Answer: HUD does not have a specified minimum area size. However, the one piece missing from the area evaluation that still warrants consideration is availability of eligible small business concerns. HUD is certainly willing to consider subdividing larger volume areas to promote small business opportunities.

8. What will happen to current FSM contractors in affected areas? Will all lose contracts or will some keep large areas and now be in competition with small businesses in different areas? Will contractors losing business be phased out over time?

Answer: Any resulting awards as part of the FSM 3.6 solicitation process will replace the existing contracts in the current areas. Existing contractors will have the opportunity to recompete for the work, provided they meet any set-aside restrictions. There will be a transition period, as specified in the PWS, but the existing contracts will expire upon completion of the transition period.

9. Will realignment occur between M&M III and M&M 3.6 or will it be kept within M&M

3.6 area and contractors only?

Answer: HUD has flexibility to conduct realignments under M&M III. However, existing contract ceilings have limited HUD’s ability to do so in most instances.

10. Will any realignment be done in any areas to redistribute work outside of new contract iterations?

Answer: HUD does not intend to realign FSM 3.6 awardees into current FSM III areas that are not being recompeted at this time. Those existing areas will continue to operate under Fair Opportunity procedures, provided sufficient competition exists. HUD would only consider such a realignment to promote competition or extend performance of the area long enough to facilitate an open market recompetition.

11. With this contract are you going to make more of an effort to award contracts to businesses located in the geographic area and have knowledge of that area?

Answer: HUD is not prepared to comment on the specific evaluation factors at this time.

However, HUD’s evaluation will be limited to the specific evaluation factors stated in

Section M of the Solicitation, upon release.

12. Will companies submitting bids for multiple geographical areas be treated differently than those submitting for a single geographical area?

Answer: No. All proposals submitted will receive the same consideration against the established evaluation factors, regardless of the number of areas or specific areas bid.

13. How many homes are in each area and what is the square footage of the homes? Average/

1Family -2 Families?

Answer: The provided attachment gives historical volume estimates by state/geographic area. HUD does not maintain data to support square footage estimates by area, or specific property types. Eligible properties may include vacant lots, 1 – 4 unit single family properties, condominiums, and manufactured homes that meet FHA eligibility requirements.

14. How do you determine how many homes each contractor can handle?

Answer: Because single award IDIQ contracts are anticipated, an offeror will need to demonstrate capability to provide coverage of an entire area in order to receive an award.

15. Are there any ways to tell the estimated volume of properties in each area in any given time frame?

Answer: HUD intends to provide the most recent historical FY 12 numbers upon issuance of the solicitation. However, any information provided will be for estimating purposes only, and will not constitute a guarantee of performance.

M&M 3.6 Industry Day:

16. Will an attendee list be available?

Answer: HUD has amended the FSM 3.6 FBO announcement to make the interested parties list public. However, HUD does not intend to specifically release the attendee’s list from the

M&M 3.6 Industry Day.