Conform_Copy_DU204SB-14-R-0002.pdf

SOLICITATION: DU204SB-14-R-0002

TABLE OF CONTENTS

SECTION B – Supplies or Services and Prices/Costs 4 SECTION C – Description/Specifications 7 SECTION D – Packaging and Marking 40 SECTION E – Inspection and Acceptance 41 SECTION F – Deliveries or Performance 42 SECTION G – Contract Administration Data 43 SECTION H – Special Contract Requirements 46 SECTION I – Contract Clauses 47 SECTION J – List of Attachments 75 SECTION K – Representations, Certifications, and Other

Statements of Bidders 76 SECTION L – Instruction, Conditions, and Notices to Bidders 90 SECTION M – Evaluation Factors for Award 103

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 CONTRACT DEFINITION – REQUIREMENTS

This is a Requirements contract as defined at Section 16.503 of the Federal Acquisition Regulation (FAR) and in Section I.4, FAR clause 52.216-21, Requirements. Services or supplies provided by the contractor under this contract shall be secured by the issuance of delivery orders (for supplies) or task orders (for services). Orders shall be placed in accordance with the following clauses: FAR 52.216-18, Ordering; FAR 52.216-19, Order Limitations; and with [ ] Delivery Ordering Procedures, or [X] Task Ordering Procedures.

Task orders will be issued against the contract on an annual basis. Fixed Unit Price is the unit price per property. This applies to the base and all option years.

B.2 The “Total Not to Exceed Price- Base and All Options” is the total Estimated Extended Price for CLIN 0001 and related CLIN’s (e.g. 1001, 2001, 3001 and 4001) for each option year.

B.3 PRICING

BASE YEAR (DURATION 12 MONTHS)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE REQUIREMENT

Estimated Quantity

UNIT

(S)

FIXED UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0001

Pre-Conveyance/Post-Conveyance Services based on a monthly volume of

Conveyed properties 60,000 Each

TOTAL NOT- TO- EXCEED PRICE

FOR BASE YEAR

OPTION YEAR ONE (DURATION 12 MONTHS)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE REQUIREMENT

Estimated Quantity

UNIT

(S)

FIXED UNIT

PRICE

TOTAL ESTIMATED

EXTENDED PRICE

CLIN 1001

Pre-Conveyance/Post-Conveyance Services based on a monthly volume of

Conveyed properties 60,000 Each

TOTAL NOT- TO- EXCEED PRICE

FOR OPTION YEAR ONE

OPTION YEAR TWO (DURATION 12 MONTHS)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE REQUIREMENT

Estimated Quantity

UNIT

(S)

FIXED UNIT

PRICE

TOTAL ESTIMATED

EXTENDED PRICE

CLIN 2001

Pre-Conveyance/Post-Conveyance Services based on a monthly volume of

Conveyed properties 60,000 Each

TOTAL NOT- TO- EXCEED PRICE

FOR OPTION YEAR TWO

OPTION YEAR THREE (Duration 12 MONTHS)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE REQUIREMENT

Estimated Quantity

UNIT

(S)

FIXED UNIT

PRICE

TOTAL ESTIMATED

EXTENDED PRICE

CLIN 3001

Pre-Conveyance/Post-Conveyance Services based on a monthly volume of

Conveyed properties 60,000 Each

TOTAL NOT- TO- EXCEED PRICE

FOR OPTION YEAR THREE

OPTION YEAR FOUR (Duration 12 MONTHS)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE REQUIREMENT

Estimated Quantity

UNIT

(S)

FIXED UNIT

PRICE

TOTAL ESTIMATED

EXTENDED PRICE

CLIN 4001

Pre-Conveyance/Post-Conveyance Services based on a monthly volume of

Conveyed properties 60,000 Each

TOTAL NOT- TO- EXCEED PRICE

FOR OPTION YEAR FOUR

TOTAL NOT –TO- EXCEE PRICE

BASE AND ALL OPTIONS

This Page Intentionally Left Blank

SECTION C – PERFORMANCE WORK STATEMENT

C-1 GENERAL INFORMATION

1.1 General. The National Servicing Center, Office of Single Family Asset Management, U.S.

Department of Housing and Urban Development (HUD) is seeking contractor support to provide Mortgagee Compliance Manager (MCM) services. The MCM will be responsible for pre-conveyance and post-conveyance activities associated with claims, acquisition, and disposition of FHA Single Family insured assets. MCM responsibilities include: verifying that the mortgagee has protected and preserved delinquent FHA insured property against damages; completing regulatory and HUD servicing and foreclosure activities; documenting various information on FHA assets held in the REO System of Record;

reviewing property inspections to ensure the property is in conveyance condition; assessing provided claim documentation; resolving conveyance exceptions; and providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities.

1.2 Background. The Federal Housing Administration (FHA), an organizational unit within HUD, administers the single-family mortgage insurance program. FHA insures approved lenders against the risk of loss on loans they finance for the purchase, and in some instances rehabilitation, of single-family homes. In the event of a default on an FHA insured loan, the lender acquires title to the property by foreclosure, a deed-in-lieu of foreclosure, or other acquisition method, files a claim for insurance benefits and conveys the property to HUD. As a result of acquisitions through the mortgage insurance program and other programs, HUD has a need to manage and sell a sizable inventory of single-family homes in a manner that promotes home ownership, preserves communities, and maximizes return to the FHA insurance funds. HUD is the largest single seller of real estate in the US.

HUD administers the Real Estate Owned (REO) disposition program through four, Homeownership Centers (HOC) located in Philadelphia, Pennsylvania; Atlanta, Georgia; Denver, Colorado; and Santa Ana, California. Each HOC is responsible for a designated geographic area.

Since 1999, HUD has been outsourcing the disposition of its REO inventory to Management and Marketing (M&M) Contractors. This acquisition is part of the third generation of M&M services (M&M III). Under the previous generations of M&M contracts, HUD contracted with a single entity to provide all of the administrative, program support, management and marketing services throughout the United States, the Caribbean, Guam and the Northern Marianna Islands. This requirement is for MCM services only.

HUD has developed a disposition structure for the management and marketing of REO inventory that streamlines its operations, capitalizes on the expertise of its potential Contractors, and provides flexibility to meet changing market conditions in the real estate owned (REO) industry.

The following is a summary of HUD's disposition structure which highlights the purpose and objectives of each M&M Contractor:

Mortgagee Compliance Manager (MCM): The Mortgagee Compliance Manager performs a variety of pre- and post-property conveyance services to ensure that HUD's interests are protected. These services include: pre-conveyance and post-conveyance activities associated with claims, acquisition, and disposition of FHA Single Family insured assets; Verifying that the mortgagee has protected and preserved delinquent FHA insured property against damages;

completing regulatory and HUD servicing and foreclosure activities; Documenting various information on FHA assets held in the REO System of Record, reviewing property inspections to ensure the property is in conveyance condition; assessing provided claim documentation;

resolving conveyance exceptions; and providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities.

Field Service Manager (FSM): Field Service Managers (FSM) provide property maintenance and preservation services consisting of: verifying pre-conveyance determinations on property conditions, inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on-going maintenance. Properties acquired by HUD are assigned to FSMs.

Asset Manager (AM): The AMs are responsible for the marketing and sale of REO property.

Multiple AMs are contracted to market HUD-owned properties within their selected contract area within their geographic HOC areas.

1.2.1 Current Environment. In fiscal year 2013, HUD sold one hundred and six thousand single-family homes, valued at over seventeen (17) billion dollars with related expenses totaling over one (1) billion dollars.

In the course of providing services, the MCM is responsible for processing various types of requests associated with the conveyance of properties to HUD. For fiscal year 2013, the following numbers of requests were processed: 116,271 Conveyance requests, 86,655 Extension requests, 6,171 Occupied Conveyance requests, 292,740 Overallowables requests, 2,652 Surchargeable Damage requests, and 57,911 administrative remedies.

Most requests are submitted to the MCM through HUD's REO System of Record; however, there are instances where paper documents are submitted. The MCM is responsible for scanning and uploading these documents into the HUD REO System of Record. In fiscal year 2013, 65,290 documents were scanned and uploaded.

In addition, the MCM is responsible for answering various inquiries concerning the conveyance of properties and providing lender specific reports which highlight lender activity and lender comparisons.

In fiscal year 2013, 30,000 telephone inquiries and 2,292 email inquiries were received and an average of 60 lender specific reports were created.

1.2.1.1 HUD REO Disposition Systems. The following is a listing of systems the MCM may have interactions with:

SINGLE FAMILY INSURANCE SYSTEM (SFIS)

The Single Family Insurance System (SFIS) is HUD’s primary system of record for insurance and claim payment status of all FHA insured single family loans. SFIS also includes the Single Family Insurance Claims Subsystem, A43C, which processes conveyance insurance claims.

FHA CONNECTION

The FHA Connection is an Internet based system through which Mortgagees report the status of insured loans. Additionally, the FHA Connection allows HUD to post information of interest to Mortgagees. The Contractor may have to access this information to meet the requirements of the PWS.

HUD’s REO System of Record (HUD Internet Portal)

HUD’s REO System of Record is an Internet based system that serves as the primary system of record for all REO case management transactions. This system identifies, collects and deposits each delinquent HUD-owned property and tracks the disposition activity from conveyance to sale. The system will also track pre-conveyance activities. This system integrates data from SFIS, FHA Connection, and SAMS Accounting.

SINGLE FAMILY ACQUIRED ASSET MANAGEMENT SYSTEM (SAMS)

The Single Family Acquired Asset Management System (SAMS) is HUD’s primary system of record for tracking financial and accounting data for properties acquired by HUD.

COST ESTIMATOR SERVICE

A comprehensive industry standard HUD provided cost estimator and valuation service designed to provide repair, replacement or improvement costs to end users to effectively and efficiently estimate the cost of property preservation and repair. The estimator service contains validated and localized building cost, with web-based access.

1.3 Objective. The objective of this requirement is to obtain MCM services to assist HUD with pre and post-property conveyance activities in order to meet HUD’s overall objectives of ensuring:

1. FHA insured properties are maintained in a manner that preserves communities and maintains the value of the property throughout the default and foreclosure phases;

2. Foreclosed properties are delivered to the Department in ‘conveyance ready’ condition, with good and marketable title, and within prescribed timeframes;

3. Actions taken by Mortgagees and the Contractor minimize risk and cost to the insurance funds.

4. The amount of interest HUD pays to Mortgagees is minimized by identifying inefficiencies throughout all aspects of the conveyance process and proposing solutions.

By obtaining these services, HUD will be able to improve its property disposition processes and accomplish HUD’s mission of improving the way HUD does business.

1.4 Constraints. The services identified within this PWS will adhere to the rules, regulations, laws, standards and conventions identified by HUD as well as within the Federal Government. Constraints applicable to this requirement are as follows:

The Contractor shall, at a minimum, should have a fully staffed single location within the Continental United States to service HUD’s National Service Center located at 301 NW 6th Street, Oklahoma City, OK 73102; within 10 business days from contract award all supervisory positions must be staffed and within 30 business days all non-supervisory positions must be staffed.

All documents (paper and electronic) shall be converted into a universal electronic format for retrieval via the web in a manner that meets HUD/Office of Information Technology specifications and requirements (reference Office of the Chief Information Officer's [OCIO’s] website at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/cio).

The Contractor shall have the capability to scan/image and upload documents into the REO System of Record. The following file formats are currently accepted: .doc, .docx, .gif, .jpg, .pdf, .png, .tif, .tiff, .txt, .xls, .xlsx, and .xps. The scanner shall also have OCR capabilities.

1.5 Description of Services. The Contractor shall perform a variety of pre- and post- property conveyance services to ensure that HUD's interests are protected. These services shall include reviewing property inspections to ensure the property is in conveyance condition; resolving conveyance exceptions; and providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities. Detailed descriptions of specific tasks are provided within Section 5 – Specific Tasks and Deliverables.

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

1.7 Not Used

1.8 Not Used

1.9 Hours of Availability. The Contractor shall have operational availability commensurate with the HUD offices for national coverage; to include the standard HUD hours (8:00 am to 4:30 pm Eastern Time) for all time zones within the continental US.

1.10 Not Used

1.11 Status Meetings. The CO, Government Technical Representative (GTR) and other Government personnel, as appropriate may meet periodically with the Contractor to review Contractor performance, requirement status, etc. At these meetings, the CO will apprise the Contractor of how the Government views the Contractor’s performance or progress of the requirement. The Contractor shall apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Status meetings may be held via teleconference as deemed appropriate by the GTR.

1.12 Not Used

1.13 Transition Period. The Contractor recognizes that the services herein are vital to the Government and must be continued without interruption and that upon contract expiration, a successor;

either the Government or another Contractor may continue them. In order to ensure a smooth transition of services at the beginning and end of contract performance, the Contractor shall provide plans for how it plans to Transition-In and how it shall Transition-Out that details all required documentation, system access, key points of contacts, procedures and methods for assumption of ongoing work, etc., as applicable. The Contractor shall participate in transition meetings with the Government as required.

1.13.1 Not used

1.13.2 Transition-Out. The Contractor shall, upon the CO’s written notice, furnish Transition-Out services as required. To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have experienced personnel on board during the Transition-Out period to ensure a smooth transition with a successor Contractor or the Government, prior to completion of contractual performance. The Contractor shall aid a successor Contractor or the Government in the development of plans, procedures and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by a successor Contractor or the Government is achieved by the end of the Transition-Out period.

1.14 Security Requirements

1.14.1 Security Access. Due to the sensitivity of FHA systems data, Contractor access to HUD systems will be limited to HUD approved individuals based upon their specific duties and the specific system security requirements as established by HUD. As a condition of obtaining access, Contractor employees shall submit to the GTR a completed Standard Form 85P, Questionnaire for Public Trust Positions, and an Optional Form 306 within ten (10) calendar days of contract award. The Contractor employees will be required to complete the Personal Identity Verification (PIV) process at a US Access Credentialing Center.

Contractor staff will then be required to provide other background information as required for adjudication and determination of the systems access level. HUD may grant, deny, or revoke an individual’s access rights to a HUD system based upon the results of the security background check of the individual. The Contractor shall provide written notification to the GTR no later than one (1) business day of termination or resignation of any employee granted HUD systems access or when there is no longer a need for access to HUD systems by any Contractor employee. The Contractor shall maintain an up-to-date list that identifies Contractor employees with access to each of the information systems described above, and the justification for each employee’s level of access. The Contractor shall not provide access to individuals until HUD provides written notification of approval and user information.

1.14.2 Information Security. The security and release of information under this contract shall be at the control of the Contractor and shall not be released to any person, company, source, site or other internal/external client without proper notification and release by the GTR or designee. The Contractor shall provide quarterly certification on the security of information within their control. The Contractor shall ensure that information received, held and transmitted under the contract shall be held in accordance with current HUD Information Security requirements.

1.15 Delegation of Authority. Authority to execute documents on behalf of the Secretary of HUD will be delegated to specific individuals identified by the Contractor and approved in writing by the National Servicing Center Director, subject to a Delegation of Authority (DOA) executed on behalf of the Secretary by the Assistant Secretary for Housing, Federal Housing Commissioner. To provide public notice of the delegation, HUD will publish the DOA in the Federal Register. Additionally, HUD will maintain a web page on which a copy of the DOA and the names of authorized individuals will be listed. HUD staff will continually update the web page as DOA’s are added and deleted. Only those individuals whose names appear on the website are authorized to execute documents on behalf of the Secretary of HUD.

Within five (5) business days of receipt of a request of the GTR, the Contractor shall provide a spreadsheet that identifies those employees who require the DOA, including their job title. Following receipt of the spreadsheet, HUD staff will draft a letter of delegation; forward the executed letter with a copy of the Federal Register Notice to the Contractor and post the names on the website.

The Contractor shall notify HUD in writing within two (2) business days of termination, departure, death, or reassignment of any individual who has been granted a DOA, and will take every measure necessary to ensure that unauthorized persons do not utilize the DOA. Should it be necessary to add individuals to the delegation, the Contractor shall provide written notice to the GTR. Upon receipt of an amended delegation letter and concurrent with posting the individuals name on the website, the DOA will be effective.

DOAs expire only upon revocation by HUD or at expiration/termination of the contract. It is not necessary to reissue DOA’s annually as contract option periods are exercised, however, the GTR may require that the Contractor recertify the list of individuals to whom DOA has been granted.

1.16 Annual Audited Financial Statement Requirement. No later than one hundred and twenty (120) calendar days before the expiration of each contract performance period, the Contractor shall furnish the GTR with audited, year-end financial statements (balance sheet also known as statement of financial position, income statement, and statement of cash flow) for the most recent two fiscal years prepared in accordance with generally accepted accounting principles and reporting practices.

The Government will use this information to determine the Contractor’s financial responsibility and ability to continue to perform under the contract. Failure of the Contractor to comply with this requirement will subject the Contractor to possible administrative action due to non-compliance.

1.17 Litigation. If the Contractor receives any pleading naming HUD as a party, the Contractor shall provide the GTR with a copy of such pleading no later than one (1) business day after receipt of the pleading. The Contractor is not authorized to accept service on behalf of HUD.

1.18 Prohibition of Releases. Unless the GTR grants the Contractor prior written approval, neither the Contractor nor its Subcontractors shall require, accept, or permit any agreement, which has the direct or indirect objective of exempting the Contractor or its Subcontractors from responsibility for any violation of common or statutory law, from a bidder (prospective or actual) on a HUD-owned property, purchaser of a HUD-owned property, or a real estate broker representing a bidder or purchaser of a HUD-owned property for any and all liability, loss, or damage the Contractor or its Subcontractors may suffer as a result of claims, demands, costs, or judgments arising out of any services performed by Contractor or its Subcontractors under this contract. An agreement that has the direct or indirect objective of exempting the Contractor or its Subcontractors from responsibility for any violation of common or statutory law includes an indemnity, release, covenant not to sue, discharge, and accord and satisfaction.

1.19 Compliance with Legislative, Regulatory and Policy Requirements The Contractor shall comply with all Federal, state or local laws or regulations pertaining to the activities described in this PWS. When local laws and regulations conflict with HUD requirements, the Contractor shall notify the GTR and the Contracting Officer.

1.20 Electronic Disclosures, Records, and Signatures. With respect to Federal law, the Contractor shall comply with the Electronic Signatures in Global and National Commerce Act, 15 USC §§ 7001-7006, (ESIGN), including the requirements to, prior to electronically delivering information to a consumer, provide the consumer with certain disclosures and obtain the consumer’s consent to electronically receive information. The Contractor shall provide consumers with the option of requesting a paper copy of an electronic record and shall not charge any fee for such copy. The Contractor shall not use 15 USC § 7001(c) (3) to evade compliance with 15 USC § 7001(c) (1) (C) (ii). With respect to State law, the Contractor shall comply with ESIGN or, if a State has enacted a statute, regulation, or other rule of law preempting ESIGN pursuant to 15 USC § 7002, the State statute, regulation, or other rule of law governing the use or acceptance of electronic records or signatures. This section does not constitute consent by HUD to the use of electronic records as a substitute for paper records or the use of electronic signatures as a substitute for ink signatures.

C- 2 DEFINITIONS, ACRONYMS, APPLICABLE DOCUMENTS/PUBLICATIONS

2.1 Definitions: General HUD definitions and Acronyms

ACRONYM DEFINITION

ACA Asset Control Area

ADP Asset Disposition Process

AM Asset Manager

BPO Broker Price Opinion

CFR Code of Federal Regulations

CO Contracting Officer

COOP Continuity of Operations Plan

CP Contingency Plan

CST Central Standard Time

DOA Delegation of Authority

ESIGN Electronic Signature

FHA Federal Housing Administration

ACRONYM DEFINITION

FOIA Freedom of Information Act

FSM Field Service Manager

GFP Government Furnished Property

GNND Good Neighbor Next Door

GTM Government Technical Monitor

GTR Government Technical Representative

HECM Home Equity Conversion Mortgage

HPIR HUD Property Inspection Report

HOA Homeowners Association

HOC Homeownership Center

HSFDS HUD Single Family Disposition Systems

HUDCLIPS HUD’s Client Information Policy System

HUDAR HUD Acquisition Regulation

HUD U.S. Department of Housing and Urban Development

IAW In Accordance With

IIR Initial Inspection Report

M&M Management and Marketing

MCM Mortgagee Compliance Manager

MWP Management Work Plan

NLT No(t) Later Than

NSC National Servicing Center

OA Over Allowable

OM Oversight Monitor

POC Point of Contact

P&P Preservation and Protection

PRS Performance Requirement Summary

PWS Performance Work Statement

QA Quality Assurance

QASP Quality Assurance Surveillance Plan

QC Quality Control

QCD Quitclaim Deed

QCP Quality Control Plan

ACRONYM DEFINITION

REO Real Estate Owned

SAMS Single Family Acquired Asset Management System

SFAM Office of Single Family Asset Management

SFIS or A43C Single Family Insurance System

SSA System Security Administrator

U.S. United States

U.S.C United States Code

2.2 Applicable Regulations/Manuals/Documents/Publications

The Contractor shall abide by all applicable regulations, publications, manuals, and policies and procedures in the performance of this contract. See Attachment 2 (APPLICABLE DOCUMENTS) for the list.

C-3 GOVERNMENT FURNISHED PROPERTY (GFP) AND SERVICES

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

3.1 HUD Information Systems. The Government will provide access to all HUD systems that are used for case identification and disposition of HUD’s REO portfolio.

3.2 Training. HUD will provide a mandatory three-day training session for the Contractor’s key personnel. There will be no cost for the training except that the Contractor will be responsible for travel and lodging expenses incurred by its staff attending the training. HUD reserves the right to limit the number of trainees who may attend. The Contractor shall train those members of its workforce that do not attend HUD provided training, as well as new employees as they are hired, to enable them to provide required services under this PWS. The training will be provided during the transition-in period after post award to ensure that the Contractor is familiar with all relevant systems and processes.

The training will be held at the Oklahoma City HUD Field Office, 301 NW 6th Street, Oklahoma City, OK 73102 and will include the following:

REO System of Record Training: High level training on the REO System of Record and system data usage.

SAMs Training: SAMs theory and data usage.

Cost Estimator Service: System access and use.

FHA Connection: System access and use.

SFIS: System access and use.

Policies and Procedures: Detailed training on HUD policies and procedures regulating the asset disposition process.

3.3 Materials. Applicable documents, handbooks, forms, user guides, and other policy documents referenced herein are publicly available on the Internet at the sites identified in Attachment 3 – Applicable Documents; or will otherwise be provided to the Contractor by the Government.

3.4 Quality Assurance (QA). The Government will evaluate the Contractor’s performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan describes elements critical to Contractor performance and criteria and objectives for the performance standards. It defines how the performance standards will be applied, the frequency of surveillance and the minimum acceptable quality level.

C-4 CONTRACTOR FURNISHED ITEMS AND SERVICES

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

Contractor shall be fully capable of providing the required services to complete all requirements set forth in this PWS.

4.1 Materials

4.1.1 Interface Equipment and Software. In order to provide capability for direct data entry and data review from the designated HUD systems, the Contractor shall provide equipment that meets HUD’s minimum system requirements. All personal computer configurations shall be in accordance with HUD’s minimum personal computer system configurations in effect at the time of contract award.

The Contractor shall ensure compatibility with the HUD network. The website link is http://portal.hud.gov/hudportal/documents/huddoc?id=240025CIOH.pdf.

If configuration requirements change during the term of contract performance, HUD will notify the Contractor in writing of subsequent configurations and the effective date of any such change.

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

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the GTR within 10 business days upon request.

4.3 Contractor Personnel. The Contractor shall designate a Contract and Project Manager who shall be responsible for the performance of work and will serve as the main point of contact for the GTR.

Alternates shall also be designated to act in the absence of the Contract or Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered “Key Personnel” by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, “Key Personnel”.

The Contract and Project Manager or alternates shall have full authority to act on all contract matters relating to daily operations of this contract. The points of contact shall have the technical knowledge of the requirement and have the authority to receive assignment, guidance and direction from the GTR, GTM and CO per HUDAR 2452.237-73, “Conduct of Work and Technical Guidance.” These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract and Project Manager or alternates shall be available between the hours of 8:00am to 4:30pm CT, Monday through Friday, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.3.1 Security System Administrator. The Contractor shall designate a Systems Security Administrator (SSA) no later than ten business (10) days of the effective date of the contract and provide this information to the GTR within this timeframe. The SSA shall complete HUD's mandatory specialized on-line security training course designed for this position. The SSA shall be responsible for collecting, reviewing and submitting documents identified in the “Security Access” section in order to initiate requests for user access to HUD systems and to request access modifications and revocations.

The Contractor shall certify, not later than twenty (20) business days from the effective date of the contract and seven (7) business days from new hire, that all staff has received instruction in system security issues, are familiar with the contents of the current version of HUD Handbook 2400.24 Rev. 2, Information Security Program. The SSA shall provide a signed Rules of Behavior Acknowledgment and Acceptance for each employee certified. The SSA shall also be subject to HUD’s IT General Controls and Monitoring of Contractors security policy. The SSA shall conduct annual security-self assessments and content shall be subject to verification by facility inspections to ensure compliance with all HUD’s IT security policies.

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

C-5 SPECIFIC TASKS and DELIVERABLES

5.1 Scope of Work

The Contractor shall provide mortgagee compliance manager services which shall include: pre and post property conveyance, customer service support, and ad-hoc reporting. Detailed task descriptions are listed below.

5.1.1 TASK ONE – PROPERTY CONVEYANCE

The Contractor shall perform pre- and post-conveyance activities to include: processing requests for extensions, over-allowable P&P expenses, occupied conveyances, and/or for surchargeable damages, claim reviews, title evidence and approval, customer service, deed/document execution/recording and reporting.

For all conveyance activities the Contractor shall perform the following activities:

Post Records Daily - The Contractor shall update the REO System of Record with all actions taken for Mortgagee compliance upon each occurrence.

Scan/Upload Documents - For all documents received outside of the REO System of Record, the Contractor shall scan and upload the documents into the REO System of Record within one (1) business day of receipt by the Contractor. All envelopes shall be scanned front and back and uploaded to the appropriate FHA case number.

Date Stamp Documents - The Contractor shall date stamp all documents, materials and other correspondence received via postal mail or external carrier. All correspondence shall be time/date stamped within one (1) business day of receipt by the Contractor. After upload completion, the Contractor shall destroy all documents in a secure manner in accordance with the Contractor’s Quality Control Plan. The only exception to this rule deals with the Occupied Conveyance documents. All original documents and envelopes shall be maintained in hard copy even after they are scanned into REO’s system of record. These hard copy files shall be stored in a locked file cabinet for a period of one year from the date the final decision of the occupied conveyance is made.

Assisting with FOIA/Privacy Act Requests - The Contractor shall assist HUD in responding to Freedom of Information Act (FOIA) (Title 5 U.S.C. § 552) and Privacy Act (5 U.S.C. § 552a) requests. This assistance may include making recommendation and compiling data from the REO System of Record to address the request.

Assisting with Governmental Inquiries - The Contractor shall notify the GTR within twenty-four

(24) hours following receipt of any request for information from an elected or public official and shall, no later than two (2) business days of said request, provide written information to assist HUD in preparing a response.

The Contractor shall utilize the REO System of Record communication log to track, monitor and resolve the internal and external communications for each REO property during the disposition program.

5.1.1.1 PRE-CONVEYANCE ACTIVITIES

5.1.1.1.1 EXTENSIONS

The Contractor shall process Mortgagees Request for Extension of Time which have been submitted through HUD’s REO System of Record prior to the expiration of the thirty (30) day period for consideration of the extension request. The Contractor shall process extension requests as follows:

(1) Review – No later than five (5) business days following receipt of a request for an extension of time, the Contractor shall review and either approve or deny extension requests in accordance with the applicable limits in HUD Handbook 4330.4 Rev-1, paragraphs 1-6 (A through E).

(2) Extension Limits - Extensions shall not be granted for more time than is required to complete the action. The Contractor may grant an initial extension and, if required, subsequent extensions.

(3) Appeal of Extension Denial – In accordance with the applicable limits in HUD Handbook 4330.4 Rev-1, paragraphs 1-6 (A through E), if the Mortgagee disagrees with the Contractors decision to reject an extension request, the Mortgagee has five (5) business days from the date of rejection to submit a request for reconsideration to the Contractor. The Contractor shall have a higher level supervisor review the initial denial decision and make a final determination no later than three (3) business days from receipt.

5.1.1.1.2 PROCESSING REQUESTS FOR OCCUPIED CONVEYANCE

The Contractor shall process, within thirty (30) calendar days of receipt, all requests from occupants for consideration of occupied conveyance in accordance with 24 CFR 203.670 through 203.681 and HUD Handbook 4310.5, Rev -2, Chapter 2 or subsequent policy guidance.

The Contractor shall evaluate those requests based on the regulatory requirements and whether the property is habitable and free of hazardous materials. The Contractor shall request through the REO System of Record that the FSM conduct an inspection within forty-eight (48) hours of the Contractor’s request to determine whether the property is habitable, free of lead-based paint hazards, or free of evidence that a hazardous substance was stored for one year or more, or known to have been released, or disposed of at the property.

The Contractor shall deny those requests that do not meet the regulatory requirements for occupied conveyance and obtain approval of the GTR through the REO System of Record to grant occupied conveyance or otherwise permit continued occupancy in those cases where occupied conveyance is in the best interest of HUD as defined in the regulations. However, the Contractor shall not recommend occupied conveyance of properties containing lead-based paint hazards that are occupied by children under the age of seven (7) or occupied conveyance of any property with evidence of hazardous substances as described above. The Contractor shall concurrently notify the occupant by certified letter and the Mortgagee via email within three business days of the occupied conveyance decision.

5.1.1.1.3 Decision to Approve or Deny a Request for Occupied Conveyance

If occupied conveyance is denied, pursuant to 24 CFR 203.670 through 203.681 and HUD Handbook 4310.5, REV-2, Chapter 2 or subsequent policy guidance, occupants may request an informal conference with the Contractor; appeal the decision in writing, or both. Requests for an informal conference with a representative of the Contractor shall be made in writing within ten (10) business days after the date of the denial notice. Written appeals shall be received by the Contractor within twenty (20) business days after the date of the denial notice.

If an occupant or its representative requests an opportunity to review relevant material that formed the basis for a denial, the Contractor shall make the material available for review and provide, at no cost and upon request, a copy of the material. No Management Official who engaged in any function related to the issuance of the preliminary denial shall participate in, provide advice, or make the final decision except to present evidence of the rationale behind the preliminary denial. The Management Official who makes the final decision shall be a supervisor at least one level above the Management Official who made the preliminary denial. After due consideration of the appeal in accordance with the applicable regulations, handbooks and other pertinent guidance, the Contractor shall send a final notice of determination to the occupant and the Mortgagee within five (5) business days. The GTR reserves the right to review all requests for occupied conveyance.

5.1.1.1.4 REQUEST FOR OVERALLOWABLES

The Contractor shall review overallowables to determine if the cost to perform required P&P work exceeds any individual cost limit or the overall cap shown in the most current Mortgagee Letter inclusive of Mortgagee Letter 2010-18 or any subsequent policy directive. The contractor will be responsible for completing over-allowables on all types of FHA mortgages not just forward mortgages; including for HECM (reverse mortgages) which are not in the REO system of record but found in the HECM system of record.

The Contractor shall review the requests and supporting documentation and approve or deny the requested expenses, in writing, within five (5) business days to the mortgagee or its designee. The process is as follows:

The Contractor shall respond no later than five (5) business days from receipt of a request from a Mortgagee for approval of over-allowable expenses. The Contractor shall review and approve or disapprove the request in accordance with the most current Mortgagee Letter inclusive of 2010-18, HUD Notice 2002-20, 24 CFR 17.100-118 or any subsequent policy directive. The Contractor shall evaluate all requests to increase expense line items on a case-by-case basis, to determine if the increase is reasonable and justifiable. To make the determination, the Contractor shall use the HUD provided cost estimator service and/or assign an FSM to conduct an over-allowable inspection.

The Contractor shall determine, at its discretion, if an over-allowable inspection is needed in order to make a determination on the requests.

If the Contractor, based on an evaluation of the work to be performed, results of the HUD provided cost estimator service, and the over-allowable inspection, when performed, determines that the expense is not justified; the Contractor shall deny the request. If the over-allowable request is denied, the Contractor shall notify the Mortgagee through the REO System of Record explaining the reasons why the over-allowable request was denied. For approved requests, the Contractor shall notify the Mortgagee through the REO System of Record that the request was approved. The Contractor shall notify the Mortgagee of the determination within five (5) business days.

Reconsideration(Appeal) - In accordance with the most current Mortgagee Letter inclusive of 2010-18, HUD Notice 2002-20, 24 CFR 17.100-118 or any subsequent policy directive, if the Mortgagee disagrees with the Contractors decision to deny an Over-allowable request, the Mortgagee will have five (5) business days from the date of the denial, to submit a request for reconsideration(appeal) to the Contractor. The Contractor shall have a higher level supervisor review the initial denial decision and make a final determination within three (3) business days of receipt of request for reconsideration (appeal). The GTR reserves the right to review any request for reconsideration.

5.1.1.1.5 REQUESTS TO CONVEY PROPERTY WITH SURCHARGEABLE DAMAGE

The Contractor shall review each request in accordance with 24 CFR 203.379, Mortgagee Letter 2010-18 or an subsequent policy directive and respond to a request to convey damaged property no later than five (5) business days following receipt of the conveyance documentation. The Contractor has full authority and shall request any/all additional documentation of the Mortgagee necessary to thoroughly evaluate the request.

The Contractor shall evaluate the best financial interest of HUD by considering conveyance issues such as: (1) the extent of repairs, (2) the difficulty in selling the property in its damaged condition and (3) the potential impact on HUD’s net return if the repairs are made. The Contractor shall utilize HUD’s cost estimator system to determine the condition pursuant to the aforementioned factors and all other information available on the property.

(1) Surchargeable Damage Less Than $2,500 – When the government’s repair estimate for surchargeable damage is equal to or less than $2,500, the Contractor shall, without the need for further authorization from HUD, notify the Mortgagee of HUD’s acceptance of the damaged property and the amount that shall be deducted from the Mortgagee’s claim, which shall be the greater of the government’s estimate of the cost of repair or any insurance recovery received or to be received by the Mortgagee.

(2) Surchargeable Damage More Than $2,500 (Mortgagee To Repair) – If the repair estimate for surchargeable damage exceeds $2,500 and the Contractor determines that it is not in the best financial interest of HUD to accept the damaged property (or the Mortgagee elects to complete repairs as described in Section “Surchargeable Damage Less Than $2,500”, the Contractor shall notify the Mortgagee in writing of the repairs that need to be completed at the Mortgagee’s expense. Reference Mortgagee Letter 2010-18.

(3) Convey With Surchargeable Damage More Than $2,500 – When/if the Mortgagee’s cost to repair estimate for surchargeable damage exceeds $2,500, the Contractor shall obtain a government cost estimate to repair the damage using the HUD-provided cost estimator service. At the Contractor’s discretion, it may request an FSM to conduct a Surchargeable Damage inspection of the property and the surchargeable damage and provide documentation of the damage and an estimate of the cost to repair.

After a thorough evaluation of the request using all data available, if the Contractor determines that it is in the best interest of HUD to accept the damaged property, the Contractor shall obtain authorization from the GTR to accept the damaged property (Reference Mortgagee Letter 2010-18). The Contractor shall submit a written request for GTR Approval, including a copy of all supporting documentation with five (5) days of receiving final documentation. The request shall include a summary of facts, the Contractor’s conclusions, and clearly indicate the recommended action or options for GTR approval.

Upon receipt of GTR approval, the Contractor shall notify the Mortgagee of the decision through the REO System of Record within five (5) business days of receipt.

5.1.1.1.6 Deed/Document Execution

The contractor shall review deeds/documents upon lender request for Quit Claim/Special Warranty deeds because the lender has pre-maturely deeded the property to HUD. In some jurisdictions, there are special forms and documents that need to be executed by HUD prior the property being deeded to HUD; the Contractor shall execute these forms/documents in accordance with its Delegation of Authority provided by HUD. The contractor shall review all deeds and documents requiring execution and execute all documents within their delegation of authority. The Contractor shall have 15 (fifteen) business days from complete deed/document request to complete the execution and return to the lender and scan into REO System of Record.

5.1.1.1.7 Pre-Conveyance Inspections

The Contractor shall facilitate inspections for properties prior to conveyance whenever they are notified by HUD or HUD’s REO system of record. The contractor shall notify the Field Service Manager (FSM) that they are to perform a pre-conveyance property inspection within one (1) business day of notification using the appropriate functionality as determined by HUD in HUD’s REO system of record. If the FSM does not complete an acceptable inspection within two (2) business days, the Contractor shall notify the GTR/GTM, immediately. Upon receipt of an accepted inspection performed by the FSM, the Contractor shall review the inspection report, photographs, findings, and all other documentation and provide the conveyance decision to the Mortgagee within two (2) business days.

The Contractor shall not approve a conveyance from the Mortgagee for properties that do not pass a pre-conveyance inspection, as determined by the FSM, until the issues identified in the inspection are resolved. Mortgagees must provide acceptable documentation evidencing correction of all issues identified as “non-conveyance condition” prior to the contractor approving conveyance. Properties accepted by the Contractor for conveyance that are identified by the FSM to still have existing issues that were identified during the pre-conveyance inspection will be approved for immediate reconveyance by the GTR.

The Contractor, FSM and the Mortgagees shall upload all documentation, to include all correspondence, to the appropriate case record in HUD’s REO system of record. The REO system of record shall keep a record of all properties for which pre-conveyance inspections are performed.

5.1.1.2 POST - CONVEYANCE ACTIVITES

5.1.1.2.1 CLAIM REVIEWS

The Contractor shall review all claim applications submitted by the Mortgagee for compliance with HUD’s conveyance requirements described in Mortgagee Letter 2010-18 and communicate all discrepancies in writing to the Mortgagee no later than thirty (30) calendar days following receipt of the claim application or such earlier time period required below.