Q A's_MCM_2.0.pdf

General

1. Would HUD re-consider the Evaluation Factors to Award to include relevant past performance due to the size, scope, and complexity of this contract? Answer: HUD would not feel it is necessary to change or modify the factors, as Past Performance is a Responsibility issue. The documents submitted by each offeror will demonstrate their understanding of the PWS which will in turn determine that they have the prerequisites which encompass size, scope and complexity. Per the solicitation, Past Performance will be reviewed as part of the determination of responsibility prior to award.

2. Considering the size, scope, and complexity of the MCM responsibilities, would HUD please explain why past performance and experience isn’t being considered as an evaluation factor in awarding this nationwide contract? We understand that it is important to save tax dollars but why wouldn’t a blend of price and experience bring best value? Answer: See answer to question 1

3. Why would the evaluation factors be solely based on lowest price, technically acceptable?

This contract is nationwide in scope, entails complex decision making that requires a high level of knowledge and experience. The LPTA method very well could mean the award of this contract to a contractor with little or no mortgage experience or familiarity with the various regulations, guidelines and laws that the mortgage industry must adhere to. The use of the evaluation approach specified in the RFP has the potential of causing a significant disruption to HUD and one that would impact all FHA approved lenders, their vendors and servicers. This could cause tremendous risk, loss and delays in a very time sensitive as well as compliance driven environment. I respectfully request experience as well as quality are given utmost consideration of this review. Answer: See answer to question 1

4. In reviewing the recently published solicitation DU204SB-14-R-0002 regarding the upcoming MCM contract, MCS is concerned about the Evaluation Factors being used for award. The “Technical Approach” as described in the solicitation from HUD represents the lowest cost for service only. This could have a very negative impact to the lenders, servicers, preservation vendors and MBA members and they could experience a significant disruption to their business. The low price approach could mean dealing with a contractor without any mortgage industry experience. It would take a significant amount of time for low paid, untrained staff to get up to speed on the many FHA rules and regulations. We strongly believe that HUD needs to take into consideration a blend of price and even more importance – experience. As we have seen many times, contractors who bid lower do not understand the resources required to perform the duties required by the contract. HUD has made significant positive steps to work with the industry to improve this MCM process. We would hate to see the positive momentum be reversed. Answer: See answer to question 1

5. In closing while we certainly understand the opportunity and need to contain costs, looking at merely dollar figures ignores the cost that experienced vendors have already spent to solve for challenges, work with the industry, fine tune processes and train personnel. Will these key elements be taken into consideration in the selection process? Answer: See answer to question 1

6. In the list of acronyms HUD has identified OM as Oversight Monitor. Does HUD have plans to hire an Oversight Monitor that may be reviewing the Contractor’s work? Answer: No information at this time.

7. Will OKC still remain the center of HUD operations? Answer: The National Service Center as of this time will remain in Oklahoma.

8. Will the government consider an extension of the response deadline to April 17th?

Answer: No extension will be granted as of this time.

9. L.4 HUDAR 2452.209-70 POTENTIAL ORGANIZATIONAL CONFLICTS OF INTEREST

(FEB 2000) (a) –Will the government award the Asset Management contract prior to the award of this solicitation? Answer: No information to the progress of the Asset Management award.

10. L.4 HUDAR 2452.209-70 POTENTIAL ORGANIZATIONAL CONFLICTS OF

INTEREST (FEB 2000) (a) -Should an offerer’s subcontractors need to withdraw due to conflict, may an alternative subcontractor be substituted without penalty? Answer: This is a business decision of the prime contractor.

11. L.4 HUDAR 2452.209-70 POTENTIAL ORGANIZATIONAL CONFLICTS OF

INTEREST (FEB 2000) (a) –How would the government like offerers to address impact to teaming in the event another HUD contract award presents a conflict to a team member?

Answer: Offerors are to address any potential conflict of interest per the solicitation, L4.

HUDAR Clause 2452.209-70 Potential Organizational Conflict of Interest.

12. L.4 HUDAR 2452.209-70 POTENTIAL ORGANIZATIONAL CONFLICTS OF

INTEREST (FEB 2000) (a) –If the government makes an award after responses are submitted for this solicitation, how would the government like substitutions to be addressed? Answer: See answer to question 11 above.

13. Obtain clarification on the LPTA selection process. Will performance factors providing lower risk or higher efficiency be evaluated? Answer: Factors list in Section M of the solicitation will be evaluated.

14. Does HUD currently have any plans to move the National Service Center from Oklahoma City prior to the end of this contract? Answer: See answer to question 7 above.

15. If a new geographic locale is selected by the awardee (other than Oklahoma City), will transition period to the new vendor be adjusted accordingly? Answer: No Adjustment will be made.

16. Page 16 mentioned that the contractor would have to cover the cost of Key personnel training. The RFP goes on to mentioned on page 34, that staff should be on-boarded on day 30 and ready to go on day 60 – is it the government expectation that staff training is conducted between day 30 and 60 and is that time and expense covered as a part of the contract? Answer:

Training will be conducted as soon as possible once the award is made.

17. GTR would provide guidance to contractors on several items – such as “causes of increase or decrease in the cost of a contract” – what would trigger this? Answer: The GTR does not provide guidance on increase or decrease contract cost.

18. Acceptance Criteria --- while the government requires us to incorporate comments in 5 days

– how long does the government have to provide comments? Answer: The government will respond to any inquiry as soon as possible.

19. As HUD is seeking identification of inefficiencies, will solutions to enhance efficiency be evaluated for potential gains to HUD as an overall pricing/financial cost benefit consideration?

Answer: All evaluation factors are stated in Section M of the solicitation.

20. Status Meetings-This section specifies that these meetings are to be at no additional expense to the government. Does this mean the vendor will bear the cost of travel for the government representatives if these meetings are held in person? Answer: The contractor will bear the cost of travel.

21. Please indicate whether the 45-page limit for Volume II is exclusive of the Cover Letter requested. Answer: No the cover letter is not exclusive.

22. Please indicate whether the 45-page limit for Volume II is exclusive of a Cover Page.

Answer: No the cover page is not exclusive.

23. Please indicate whether the 45-page limit for Volume II is exclusive of a Table of Contents.

Answer: No, the table of content is not exclusive.

24. Please indicate whether the 45-page limit for Volume II is exclusive of the Proposal Matrix.

Answer: Yes, the Matrix is exclusive.

25. RFP Section 4.3 mentions the Contract Manager and Project Manager as key personnel but makes no mention of the Quality Control/Third Party Quality Control Vendor identified in HUDAR 2452.237-70 later in the RFP. Please clarify whether this QC position is considered a key personnel on this contract and whether they should be considered part of the technical approach. Answer: See HUDAR clause 2452.237-70

26. RFP Section 4.3 mentions that the Contract and Project Manager will be responsible for the performance of work. Please clarify whether this is a single individual or two individuals.

Answer: These positions requires separate individuals.

27. The RFP does not provide any further detail on the activities to be performed by the Quality Control/Third Party Quality Vendor. Please provide information on their role in the project.

Answer: This is a business decision of the prime contractor.

28. In Section 1.4, the RFP states that the Contractor should have “at a minimum. a fully staffed single location”. However, in Section 6.4.1.2, the RFP mentions providing a final list of “office locations” (plural). Is the requirement for one (1) or multiple locations? Answer: This is a business decision of the offeror.

29. Are offerors expected to propose only one office location? Answer: See answer to question 28.

30. Will special consideration be given to offerors that propose a single office location over those that propose multiple office locations? Answer: No special consideration.

31. Reference PWS 1.2, Please identify who the M&M II contractors are. Answer: There currently no M&M II contractors.

32. Reference PWS 1.2.1, the historical data provided is for FY2013. Can the Government please provide FY2014 historical data? Answer: See program question #43 below.

33. Reference PWS 1.16 Annual Audited Financial Statement Requirement. Would the Government consider allowing the contractor to submit the audited financials no later than one hundred and twenty (120) calendar days after the close of the contractor’s fiscal year for the covered contract period of performance? The contractor cannot close-out its booked mid-year and expect to provide a true financial picture. Answer: Solicitation will be changed to 90 days.

34. Reference PWS 6.4. Transition-In. The logic behind only 60-days to transition in and 90-days to transition out (6.5) is unclear. Given that it takes 45 to 60-days to establish a T1-T3 Internet connection, the 60-day Transition-In seems to establish an unrealistic expectation. Will the Government consider a 90-day transition-in period? Answer: The 60 day transition period will remain.

35. Reference Attachment 3. Please provide attachment in Excel or Word format. Answer: Will be attached.

36. Page 105 of the solicitation states that no reference to the company can be made in Volume II. Page 110 states that “past performance will be reviewed as part of the determination of responsibility but will not be an evaluation factor.” Where in the proposal is the offeror to include information regarding past performance if not in Volume II? Should such information be included in Volume I? What page limitations apply, if any? Answer: See answer to question 1 above

37. Considering the great difficulty in obtaining a complete audit, as required per page 12 of the solicitation, will HUD consider altering the timeframe to “no later than ninety (90) calendar days before the expiration of each contract performance period?” Answer: See answer to question 33

38. While page 8 of the solicitation shows that, in fiscal year 2013, there were 116,271 Conveyance requests, pages 4 and 5 list estimated quantities as 60,000/year. Has inventory size decreased so significantly or does the number of Conveyance requests correspond with a much smaller, actual inventory in FY 2013? If the latter is true, should offerors consider that there will be a great deal of work involved that goes beyond conveyance of 60,000 properties per year?

Answer: The current estimates represent the most current data HUD expected to be conveyed per year.

39. The description reads "Pre-Conveyance/Post-Conveyance Services based on a monthly volume of Conveyed Properties" and the estimated quality is 60,000. Please clarify whether 60,000 is the estimated number of transactions or if it is the estimated number of properties to be conveyed monthly. Answer: 60,000 represent the estimated number of properties to be conveyed per year.

40. Section 2 (v) of “SOCIOECONOMIC PARTICIPATION” states “Identify any key personnel to provide support under the subcontract” on page 105 of 111. However, the note on page 105 of 111 states “Volume II shall not contain any names (such as offeror names, company letterhead, personnel names, previous contract awards, projects or product names).” Please clarify. Answer:

Socioeconomic Participation is to be place in Volume II.

41. SECTION PROPOSAL FORMAT, p. 97 states Hard Copy must be single sided and page count shall be consecutively numbered starting on the first page of each Volume. QUESTION:

Are the Title and Table of Contents pages excluded from the page count of the Technical Volume II? Answer: No

42. SECTION PROPOSAL CONTENT, p. 98 states Volume II not to exceed 45 pages and includes: Written Technical Proposal/ Cross Reference Matrix/Quality Control

Plan/Socioeconomic Participation. VOLUME II Technical Proposal, p. 99 states the Written

Technical Proposal shall not exceed 35 pages and the Quality Control Plan shall not exceed 10 pages. QUESTION: Are the Cross Reference Matrix and Socioeconomic Participation sections excluded from the 45 page limit? Answer: The Cross Reference Matrix and Socioeconomic

Participation are excluded from the page limit.

43. SECTION PROPOSAL FORMAT, p. 96 and 97 indicates:

-Company Name and Address must be identified on each of the 3 hard copy Volumes. Answer:

Yes -Company Name and Address must be identified on the CD/DVD packaging or disk. Answer:

Yes

44. However, VOLUME II Technical Proposal, p. 101 states:

NOTE: Offeror shall identify their company/organization in the body of the Technical Proposal (Volume II) to include all plans as The FIRM or The ORGANIZATION. Volume II shall not contain any names (such as offeror names, company letter head, personnel names, previous contract awards, projects or product names). There shall be no reference to any current HUD contracts. The Technical proposal shall not contain any marketing information (photos, mention of awards, size of firm, etc.) Any Technical proposals found to have any of the above mention prohibited marking may be deemed nonconforming to the terms and conditions of this solicitation and the proposal may not receive any further consideration. These restrictions apply to both hard copy and CD/DVD's. QUESTION: Please confirm Company Name and Address is to be included as shown in the tables below: Answer: See answer to question 43

Redacted Version:

Electronic Hard Copy

Volume

CD/DVD

Label/Packaging File and Folder

Names Content within File Content within

Volume I RFP Docs

Yes No No No

II Technical No No No III Price No No No

Non-Redacted Version:

Electronic Hard Copy

Volume

CD/DVD

Label/Packaging File and Folder

Names Content within File Content within

Volume I RFP Docs

Yes Yes Yes Yes

II Technical Yes No No III Price Yes Yes Yes

45. Will the awardee be subjected to in-depth audits by DCAA, especially relative to cost build-ups included in the pricing schedule? Answer: The government seeking other than cost and pricing data this will be used in the evaluation process to determine reasonableness.

46. Regarding the annual requirement for audited financial statements: As a privately held firm with annual revenues of approximately $1.5B, would self-certified financial statements as provided periodically to our bank lenders be sufficient to satisfy the requirement of “audited financial statements”? Answer: No, must be an independent audit.

47. HUD is estimating 300,000 properties will be conveyed during this contract (5 years). This is a significant increase over the FY13 number of properties conveyed identified in Section 1.2.1.

Please clarify if HUD is expecting almost a triple increase in the number of properties to be conveyed. Answer: FY13 number only represent data for that year. Estimates are based on current data projected over a 5 year period.

48. States that monthly invoicing is capped at 50 lines, yet have requested an FHA number -- it its HUDs intent to receive an invoice itemized by property? Answer: Yes

49. All have a different number of units/properties -60k properties on the price summary, then page 58 refers to 90k max, and then page 67 referred to 360k maximum. What is the maximum number of units? Answer: Per Section B of the solicitation, the government estimates 60,000 conveyances per year. 90K represents the max number ordered on a single task order and 360K represent the max number of conveyances for the 5 year period.

50. Is there any specific geographic location requirement for execution of the contract and performance of this work? Answer: No

51. Will HUD provide Fiscal Year 2014 data? The solicitation contains FY13 data which is almost 1.5 years old. Answer: See answer under program question #43

52. Will the government accept an estimated range for fringe costs? Answer: No

53. Are the “Conveyance Requests” the actual number of conveyed properties for fiscal year 2013? If so, can volume for 2014 and to date 2015 be provided? Answer: See program question # 43 below.

54. Are there any maximum quantities by month or year? Answer: There are no maximum quantities per month; however the government only estimates 60,000 per year.

55. What happens if the maximum contract quantity is reached prior to the end of the contract?

What is the process if that occurs? Answer: This requirement could possibly be re-solicited.

56. Can single line spacing and 8 point font be used for tables, charts and graphs? Answer: See section L.5 of the solicitation.

57. Will the Contractor be allowed to submit a Request for Equitable Adjustment to HUD Contracting and increase their Unit Price Per Property Acquisition when the Department of Labor issues new Wage Determinations for geographic area(s) where work is performed under this Contract that result in increased wage and/or fringe benefit costs to the Contractor?

a. Is a Subcontracting Plan to be submitted with this Proposal? If yes, in what volume should it be included? Answer: Volume I

b. Section (C) asks offerors with previous contracts with subcontracting plans to provide specific information for the three most recently completed contracts with such subcontracting plans. Is this information to be submitted with this Proposal? If yes, in what volume should it be included? Answer: Volume I

58. Volume II – is the Socioeconomic Participation to be counted in the Technical Approach page count of 35 pages? Answer: See answer to question 42

59. Is the Cross Reference Proposal Matrix excluded from the page count in the Technical Proposal? Answer: See answer to question 42. What format is preferable for the Project Schedule? Will the Project Schedule be excluded from the 35 page count? Answer: No

60. Is the government seeking estimations for costs solely to determine reasonableness and financial management capability, such that the contractors are not subject to DCAA audit for the cost estimations? Answer: The government seeking other than cost and pricing data this will be used in the evaluation process to determine reasonableness.

61. Page 102 of 111 states that Volume II shall not exceed 45 pages. Page 103 allocates 35 pages to Technical Approach and 10 pages to Quality Control plan. Does this mean the Proposal Matrix and Socioeconomic Participation are excluded from the page requirements? Answer: See answer to question 42.

62. Page 100 of 111, under “PROPOSAL FORMAT”, states “Company Name, Address and RFP Number, DU204SB-14-R-0002 identified on each Volume.” However, the note on page 105 of 111 states “Volume II shall not contain any names (such as offeror names, company letterhead, personnel names, previous contract awards, projects or product names).” Please clarify Answer:

See answer to question 42

63. If the offeror is presented with the opportunity to be the awarded bidder of both the MCM and 3.7 Asset Manager contracts, would the offerror have the opportunity to select the contract they would prefer to proceed with? Answer: No, the offeror will not have the opportunity to select.

64. Would HUD please confirm the original contract dollar value for the current MCM at $84,406,392 as per the Federal Procurement Data System? Answer: $92,076,781.00

65. Would HUD consider extending the Q&A period due to the size, scope, and complexity of this contract? Answer: The Q&A period was extended to March 13, 2015.

66. Should transition-in costs be included in the unit price? If not, where should it be located?

Answer: The unit price should be inclusive of all cost.

67. What were the incumbent’s transition-in costs? Answer: See answer to question 66

68. What were the incumbent’s transition-out costs? Answer: See answer to question 66

69. I am reaching out to you concerning the Mortgagee Compliance Manager opportunity. I am trying to verify some information that I have found. In February of this year, Michaelson, Connor & Boul, Inc. was awarded a ~$6M, one-year contract for "Mortgage Compliance Manager Services." Is this work related to this solicitation? Answer: This solicitation will replace MCB award when the contract expires. If so, how? Lastly, does the current solicitation have a small business set aside for prime or just for goal subcontracting? Answer: No set-aside for small businesses

70. Page 95 f(1) States: “The Government intends to award a contract or contracts resulting from this solicitation to the responsible Offeror(s) whose proposal(s) represents the best value after evaluation in accordance with the factors and subfactors in the solicitation.” Does this statement represent value considerations beyond solely lowest price? Answer: Yes

71. As this is not a cost-plus contract, please clarify why the government requiring the cost build up including direct and indirect rates? Answer: To determine price reasonableness.

72. Why was the requirement for work to be performed in Oklahoma City changed? Answer:

Decision of the Agency.

73. How large is the physical inventory in place? How many documents, boxes, and square feet are utilized? Answer: This information is not available.

74. What is the current COOP in place and what SLA requirements are needed? Answer: This information is not available.

75. RFP L.5 Proposal Format: This section requires total 45 pages… of which 35 pages is Technical Approach and 10 pages is Quality Control Plan. Included under this are the requirements for Socioeconomic participation and Letters of Commitments. Are they included in the page count (35 Technical and 10 quality control?)? Answer: See answer to question 42.

Is there a page limit for Socioeconomic Participation documentation including (1) Performance of Work and (2) Letters of Commitment? Answer: See solicitation L.5

76. RFP C.4.3. Key Personnel: Listed Project Manager and Alternate as ‘key personnel’ and must be employees of the Prime Contractor. However, HUDAR 2452.237-70 KEY PERSONNEL (FEB 2006) page 72 included Quality Control Vendor as ‘key personnel’. Can this position be filed by a Subcontractor? Answer: No

77. RFP C.6. Deliverable and Milestone: This section does list any of the tasks required under Section C.5 Scope of Work and Deliverables even though they are part of the Performance Measure under Section C.7 Performance Requirement Summary. Can the government clarify the inconsistency? Answer: Section C.6 is only the deliverables and Milestones.

78. Volume II should not contain any names, company letterheads, previous contract awards, projects or any reference to current HUD contracts. Does this apply to all copies of Volume II delivered? Answer: Yes

79. Volume 1 states no imposed page limit. Is it only the Executive biographies are limited to 2 pages, or is the two page limit for cover letters, company statements and executive biographies in total are limited to 2 pages? Please clarify. Answer: The page limit is 2 pages total.

80. Is small business intending to perform over 50% of the work required to meet the small business socio economic participation thresholds? Does this conflict with page 67 of 111 HUDAR 2452.219-70 Small Business subcontracting plan compliance that states provision not applicable to small business?

Answer: Small businesses must at address per Section M of the solicitation.

81. Does the incumbent contractor have any SCA employees associated with this contract?

If so, how many? Answer: This question cannot be answered.

Payment

1. What will be used to determine conveyance? Will the date of acquisition be used? If so, is the acquired date based on the step 1 date or step 0 date or some other data? Answer: If you are asking what triggers payment (payment based on conveyances) it is the movement of a case in HUD system of record from a Step 11 to a Step 1.

2. Please verify that the price is inclusive of all services and all expenses are the vendor’s cost to bear. We are to assume that there will be no pass through reimbursement items, correct? Answer:

There are no pass through reimbursement, price is inclusive of all services.

3. The pricing format requires pricing to be submitted for "Pre-Conveyance/Post-Conveyance Services based on a monthly volume of Conveyed properties”, with the estimated quantity being 60,000. We are seeking clarification of the monthly volume unit referenced. Is this intended to reference 60,000 services, which would be a cumulative monthly amount of conveyance requests, extension requests, occupied conveyance requests, overallowables requests, surchargeable damage requests and administrative remedies? If this is not accurate, can you please provide further clarification on what is included in the estimated 60,000 monthly quantity? Answer: 60,000 represent the yearly estimated.

4. RFP B.2 Payment: States: “For purposes of payment, the offeror will be paid based upon the amount of properties conveyed within a single month. For example, if 7,000 properties are conveyed in July 2015, then the amount due would be (7000 x Fixed Unit Price)”. Does this mean:

a) Contractor will not be paid for any pre-conveyance tasks completed (under Sec 5.1.1.1)?

Answer: Price is inclusive of all services.

b) Contractor will not be paid until discrepancies, noncompliance or request remedies (Sec 5.1.1.2) are resolved from post-conveyance tasks e.g. claim review and title review? Answer:

Payments are based on conveyances not a particular task.

5. Does HUD intend to factor backlog into current pricing? Answer: No

6. What is the volume of backlog if any? Please provide metrics for each task area? Answer:

Currently there is no backlog. The MCM contractor is meeting all required timeframes.

7. Since the contract pays based on the amount of properties that convey, can HUD provide the number of properties that were conveyed in 2013 and corresponding with the number of requests and remedies provided for 2013 ? Answer: See Section C 1.2.1 of the solicitation.

8. How does HUD intend to pay for Transition costs under this contract including transporting of work in progress, inventory, documents etc. ? Answer: No, Price is inclusive of all services.

9. Under this pricing model “conveyed properties: how does HUD intend to pay for claims or work based on CWCOT (Claims Without Conveyance of Title). Are CWCOT excluded under this contract? Answer: Price is inclusive of all services.

10. Will HUD consider a transaction based pricing for each key area? Answer: No

11. Will HUD consider changing its pricing formulae to be based on an alternative methodology other than “conveyed properties”? Answer: No

12. Pricing is based on “Pre-conveyance /Post Conveyance Services” based on monthly volume of “conveyed properties”. The volume and nature of some of the transactions within the task order, do not lend itself on the basis of “conveyed properties”. Is it HUD’s intent that pricing for all the tasks and the estimates provided be done at an individual task level based on volume estimates provided and then aggregated and unit price calculated based on volume of conveyed properties (60,000) ? Answer: Pricing for all services must be inclusive of all cost.

13. The timeline and type of services and transaction for conveyance depends on accurate information and submissions by stakeholders that the contractor cannot control leading to delays. It is possible that certain tasks take months prior to conveyance, by associating pricing based on properties “conveyed”, HUD is basing cash flow and costs to be borne by the contractor.

Is that HUD’s intent? Answer: The government will make payment on all properties that are convey.

Program

1. 1.2.1.1 HUD REO Disposition Systems.

Section 5.1.1.1.3 states the vender will provide over allowable processing services for HECM cases but that HECMS are not in the REO System of record but are found in the HECM System of record. If so, we assume HECM OA processing will be done in the HECM System of record, correct?

Answer - Yes

If correct, why was the HECM System of record listed in section 1.2.1.1?

Answer - It is not an REO System of Record. MCM will use the HECM Servicing System currently called HERMIT.

2. 1.4 Constraints.

This section requires that all documents be stored in an electronic retrieval system that meets HUD IT requirements. Does this mean that the vendor will be required to provide a web based documents storage system separate from the REO System of Record?

Answer: No, all electronic documents will be stored in HUD’s REO system of record (P260).

The contractor should not be storing any case-specific electronic documents in their systems.

3. 5.1.1 TASK ONE – PROPERTY CONVEYANCE

The vendor is required to post records daily to the REO System of record of all mortgage compliance actions taken. Does the HUD REO System of record fully support all mortgagee compliance actions?

Answer: Yes

4. 5.1.1.1.2 Occupied Conveyance Does HUD expect the Contractor to request an inspection by the FSM for every occupied conveyance request that is received?

Answer: No.

How are the costs handled to send certified letters to the occupants? Vendor expense or reimbursable?

Answer: It is considered a MCM Contractor expense.

5. 5.1.1.1.4 REQUEST FOR OVERALLOWABLES

What other types of FHA mortgages besides HECMS will require over-allowable review?

Answer: All forward mortgages; including for HECM (reverse mortgages).

6. Will the contractor have access to the HECM system of record?

Answer: Yes

7. Will there be additional over-allowable volume associated with the inclusion of all types of FHA mortgages?

Answer: No

8. Is there a plan to transition the submission of the HECM and other loan type over-allowable requests to HUD’s REO System of record?

Answer: Not at this time.

9. If the contractor determines an over-allowable inspection is needed how long does the FSM have to complete the inspection and provide the results, once an order has been placed?

Answer: The FSM has two days to complete the inspection.

10. How long does the contractor have to respond to the mortgagee’s OA submission if an overallowable inspection is ordered? (5 business days from the day the inspection results are provided from the FSM?)

Answer: Five (5) business days

11. Is the contractor responsible for tracking the pending requests?

Answer: Yes

Or will the FSM properly notify the contractor when the inspection has been completed?

Answer: The FSM will notify the MCM when the inspection is completed.

If a timely response isn’t received from the FSM what action should the contractor take?

Answer: If the FSM does not complete an acceptable inspection within two (2) business days, the Contractor shall notify the GTR/GTM, immediately.

12. 5.1.1.1.6 Deed/Document Execution Does the vendor have the authority to reject deed executions requests?

Answer: Yes

Requests that are outside the vendor’s delegation of authority should be referred to the GTR?

Answer: Yes

13. 5.1.1.1.5 REQUESTS TO COVNEY PROPERTY WITH SURCHARGEABLE DAMAGE

(1) Surchargeable Damage Less Than $2500 Is the government repair estimate an estimate created and provided by a FSM?

Answer: Surchargeable Damage Less Than $2500- The FSM provides all government repair estimates.

Or is this referring to a repair estimate created by the contractor using HUD-provided cost estimator?

Answer: No.

If a FSM government repair estimate is required: will that be the mortgagee’s responsibility to order and provide when surcharge requests that are equal to or less than $2500 in damage are submitted?

Answer: It is the MCM’s requirement to request the estimate from the FSM.

14. (3) Convey With Surchargeable Damage more than $2500 Does this mean an estimate needs to be created using the HUD-provided Cost Estimator (or

FSM provided estimate) and uploaded to HUD’s REO System of Record for every request where it has been determined there is surchargeable damage exceeding $2500 before forwarding to the GTR for review?

Answer: Yes- When/if the Mortgagee’s cost to repair estimate for surchargeable damage exceeds $2,500, the Contractor shall obtain the government cost estimate from the FSM.

15. 5.1.1.1.7 PRE-CONVEYANCE INSPECTIONS

Is there an estimated volume for the amount of inspection requests the contractor will be processing on a monthly or annual basis?

Answer: Approximately 1,000 per month.

16. Will HUD’s REO system of record provide tracking/reporting functionality for all aspects/scopes of work for Pre-Conveyance Inspections?

Answer: Yes, the REO system of record will eventually provide the tracking function for the pre-conveyance inspections.

17. Does the HUD REO system of record have the functionality for the mortgagee’s to order a preconveyance inspection?

Answer: No, not at this time.

18. If a pre-conveyance inspection is completed and its determined there are issues that need to be addressed prior to conveyance, when those issues are addressed, where does the mortgagee submit/provide the documentation evidencing the issues have been resolved?

Answer: Yes through HUD’s REO system of record.

19. When the mortgagee provides documentation evidencing the FSM identified issues have been addressed, what is the timeframe for the contractor to review these documents and approve/reject conveyance?

Answer: Five business days

20. When the mortgagee has completed all necessary repairs and want to submit the documentation evidencing the repairs have been completed to FSM scope, will the mortgagee be required to submit a new request for “conveyance approval” via HUD’s REO system of record.

Answer: Yes

If so, what is the timeframe to review this request?

Answer: Five days

And what is the estimated volume associated with this process?

Answer: Unknown, as HUD has no control of the condition of the properties that the mortgagee’s submit. This is a new process, therefore there is no historical data.

When the contractor completes review of the documentation evidencing that the issue has been resolved: If in conveyance condition, how shall the contractor provide approval to the mortgagee?

Answer: Through HUD’s REO System of Record.

Also how should the Contractor provide rejection for conveyance?

Answer: Through HUD’s REO System of Record.

21. Will HUD be providing the criteria that the contractor will use to determine if a pre-conveyance inspection request is necessary or valid?

Answer: Yes

22. What documentation does the mortgagee need to provide when submitting a request through HUD’s REO system of record for a pre-conveyance inspection?

Answer: The lender is ready to get a pre-conveyance inspection they will provide certification that the property is in conveyance condition.

23. If a FSM determines repairs necessary for conveyance are not cost effective for HUD or demolition is warranted, what action should the contractor take?

Answer: The MCM contractor will review and provide recommendation to GTR.

24. If an inspection is completed and repairs were required (Per FSM), does the contractor have to review all properties that had a completed pre-conveyance inspection and FSM required repairs before the mortgagee can convey to HUD?

Answer: Yes

25. Is “non-conveyance condition” in the above excerpt meant to be interpreted as “not in conveyance condition (per fsm)”?

Answer: The FSM will be reviewing items that are directly related to a property being in conveyance condition.

26. Why would a mortgagee be required to submit documentation showing correction of “non conveyance conditions”?

Answer: The documentation is required to determine that the item is not mortgagee neglect and to confirm all required repairs have been completed.

27. If the contractor determines the repairs being required by the FSM are not cost effective or in HUD’s best interest, shall the contractor request an exception/variance from the GTR?

Answer: Yes. The GTR will make the decision.

28. What is the timeframe for the mortgagee to convey the property, once they have received approval from the contractor to convey, before that approval is consider null or void?

Answer: This will be provided at a later date.

29. Please define what documentation is considered “acceptable documentation” from the mortgagee evidencing correction of all issues identified by the FSM.

Answer: There will be a subsequent inspection to verify whether the repairs were completed.

30. What documentation will be required from the contractor to be uploaded to HUD’s REO system of record regarding pre-conveyance inspections?

Answer: All information provided by either the FSM or the mortgagee shall be uploaded by the respective party into HUD’s REO system of record. There may be correspondence between MCM and FSM/Mortgagee whether verbal or written that the MCM must upload into the system.

31. 5.1.1.2.1 CLAIM REVIEW

Please verify that mortgagees are to be notified by certified mail of cases with hard edit errors.

Answer: Yes

32. 5.1.1.2.1.1 Occupied Properties All properties conveyed occupied without approval are to be reconveyed. No provisions for eviction? This seems to contradict the eviction requirements contained in the FSM SOW.

Answer: Properties conveyed occupied are not in conveyance condition; therefore the reconveyance process will be initiated upon discovery.

33. 5.1.1.2.1.4 Properties Conveyed with Non-Surchargeable Damage- Please clarify the meaning is for including “(Section “Title Approval”). Are these misprints or typographical errors?

Answer: Yes, it is a typo.

34. 5.1.1.2.5 ADMINISTRATIVE REMEDIES-REQUEST FOR REIMBURSMENTS TO HUD

Re-Conveyance At the completion of the reconveyance process, the vendor shall prepare, execute and record the reconveyance deed placing the lender back into title. Is the cost of deed recording an expense to the vendor and will not be reimbursed?

Answer: It is a MCM contractor expense that is not reimbursable.

How many reconveyance were completed win the past 12 months and what was the expense associated with recording the deeds?

Answer- During FY14 there were –there were 5,485 re-conveyances as HUD does not reimburse directly no associated expenses can be provided.

35. Re-acquisition The requirements in this section seem to be manual. Are the reacquisition services supported the REO system of Record?

Answer – Yes.

36. 6.4.2 Up and Running Phase (Day 61) On day 61 after the effective date of the contract, the vendor is to begin performance for all new acquisitions based on the requirements of the PWS. This then means that there is no requirement to perform services on case acquired before day 61. Please confirm this is correct.

Answer –The vendor is fully responsible for all active cases on the 61st day. Prior to the 61st day, this is the time used to get your system up and running and verified functioning as well as complete the Training with the current vendor.

37. 7.1.1 Defective Performance The Performance Standards and Surveillance Methods listed. Does this refer to HUD’s oversight for the MCM Contractor?

Answer - Yes

Or does HUD expect the Contractor to incorporate these standards in the draft Quality Control Plan?

Answer – This is what HUD will be reviewing so yes it should be included.

38. There is only one area (extensions of time, overallowables, surchargeable damage) that indicates performance measure for decisions shall be in accordance with HUD guidelines. Is quality of decisions relevant in other PWS measures?

Answer – Yes, all decisions made by the MCM contractor must be in accordance to current HUD guidelines and policy.

39. Does HUD expect the Contractor to conduct 100% inspection on the items noted in this section?

Answer - Yes

40. C-1, 1.14 – Security Requirements Will a current HUD contractor in the MCM III Program be required to have their employees go through security clearance/PIVIng again? Or will current clearances be applicable to this contact?

Answer – Yes, due to performing under a new contract.

41. C-3; 3.2 – Training Will the incumbent MCM Contractor be required to go through the 3-day training program for the new contract?

Answer – No a shortened training will be provided to discuss changes in the new procurement.

42. C-6 -- Deliverables and Milestones Schedule This table provides Due Dates for the Final MWP and COOP; are there due dates for the drafts of these Plans?

Answer – The solicitation will be amended to require the QCP, MWP, and COOP drafts to be provided to the MCM GTR within 10 business days of the contract award.

43. Will HUD provide the 2014 portfolio activity with respect to the number of conveyances, extension requests, over-allowable requests, administrative remedies and correspondence received, similar to that which was provided for 2013?

Answer –

Function Year to Date Total FY 14

Conveyances 67,711

Overallowables 294,613

Extensions 83,168

Surcharable Damage 2,784

Administrative Remedies 47,092

Claim Part B,C,D Reviews 27,793

Reconveyances 5,485

44. Does the 2013 communication volume (phone & email) include inquires made by the FSM and ASM or does the communication volume only include inquires made by the mortgagees and their providers?

Answer – Yes

45. What was the total amount of indemnifications, chargeback and other administrative offsets applied against the MCM related to fee cost approvals and conveyance condition exceptions?

Answer- None

Will written policies, procedures and business practices be furnished at the conclusion of the 3-day training event?

Answer – The PWS defines the policies, procedures, and business practices.

46. Home many FIOA requests were processed by the MCM over the current contract period?

Answer - None

47. Does the volume estimate include HECM’s?

Answer – No, the current MCM does not handle HECM loans

48. How may informal conference requests were submitted in 2013?

Answer – Approximately 750 in FY 2014.

49. What was the volume of Quick Claim Deed or Special Warranty Deeds were processed in 2013 for properties erroneously deeded to HUD?

Answer – This is currently not tracked in HUD’s REO System of Record.

50. How many pre-conveyance inspections were processed by the MCM in 2013?

Answer – Approximately 1,200

51. The determination of first legal, reasonable diligence and conveyance deadlines can be subjective. Has HUD provided guidance on how mortgagees or the MCM should calculate the impact of a variety of judicial, administrative and legal events between 2007 and 2010?

Answer: No. The MCM’s experienced staff reviews all cases according to HUD policies and procedures and makes recommendation to their management and HUD GTR for actions.

Will HUD be providing a copy of hard and soft edits outside of direct access to FHA Connection?

Answer: No

52. How many hard edits, which require the MCM to send certified mail notification to the Mortgagee, occurred in 2013?

Answer – This information is not tracked.

53. How many occupied conveyance requests were approved by HUD in 2013?

Answer – In 2013 there were 25 approved and in 2014 there were 9 approved.

54. Is the incumbent for this work allowed to bid?

Answer - Yes

If so, how long was the previous contract for?

Answer – One base year and four option years.

55. Is a bidder’s conference anticipated for this Solicitation? If so, when and where?

Answer – No bidder’s conference will take place.

56. When is a case considered “conveyed” for billing purposes?

a. When a property is conveyed from Mortgagee to HUD? Is there only one billing for each property, no matter how many times it might be conveyed back and forth with the mortgagee?

b. When a property is sent to an AM for marketing?

c. When a property is sold to a new buyer?

d. What if a case is never sent to an AM for marketing (re-conveyed back to Mortgagee)?

Answer- A.

Does the contractor have an avenue for partial payment for work completed on the case?

Answer – No the MCM is only paid on conveyances.

57. Can we assume the FSM and FA contractors are in place and providing adequate service for the MCM to meet the required timeframes in this document?

Answer – Yes

58. Occupied Conveyance – Can you provide a ratio for the number of “occupied conveyance” cases compare to all cases?

Answer – In 2013 there were 25 approved and in 2014 there were 9 approved.

59. Can you provide a ratio for the number of properties that have damages vs. the number of properties that are processed without damages?

Answer - No

60. Reference RFP Section 5.1.1.1.3 (p20). On an appeal of “Denied Request for Occupied Conveyance”, the RFP reads: This is included with question 61 see below.

61 “If an occupant or its representative requests an opportunity to review relevant material that formed the basis for the denial, the Contractor shall make the material available for review and provide, at no cost and upon request, a copy of the material” Questions. Since FSM inspector does the actual inspection, would the FSM inspector have to provide the material instead of the contractor?

Answer - No

Does every FSM inspector take and maintain samples of hazardous materials or LBP during each of these inspections?

Answer - No

Or is the Contractor obligated to send a representative to the property site to obtain a sample of the hazardous material and provide such material to the occupant?

Answer- No

62. Reference RFP Section 5.1.1.1.4 (p21). For an over-allowable review, a final determination must be returned to the Mortgagee within 5 business days. If an FSM inspection is needed, does the 5 day window on the final determination get extended?

Answer- No

63. Reference RFP Section 5.1.1.21.2 (p25) Properties Conveyed with Property Damage. In item (ii), there is a reference to debt collection. Please confirm that debt collection is handled within the established HUD conveyance processes, and that outside debt collection services are not part of the requested services in this RFP.

Answer- That is correct

64. Can you provide a ratio of cases where Post-Conveyance activities include collecting damages or return of funds from the Mortgagees (vs the total number of Post-Conveyance cases)?

Answer – No

65. Is there a reporting interface to all systems data, like a Business Objects? If not, is the data in a relational or object oriented database that supports SQL?

Answer – All functions of the MCM will be conducted in HUD’s REO System of record. HUD’s REO System of record contains an ADHOC reporting functionality.

66. Will the Contractor have full access to the data to create internal operations reporting to help manage case inventory?

Answer - All functions of the MCM will be conducted in HUD’s REO System of record. HUD’s REO System of record contains an ADHOC reporting functionality.

67. 5.1.1.1.2 and 5.1.1.1.3 Occupied Conveyance Requests

a. If an email is available for the occupant, would an email be acceptable to the government, so long as a response is received from the occupant confirming receipt?

Answer - No

b. If an occupant requests an informal conference with the Contractor, can the Contractor insist that the conference be held at the Contractor’s facilities? (Are conferences held via phone or Skype acceptable?)

Answer – No it can however be conducted telephonically.

c. If an occupant requests copies of relevant material used to form the basis for a denial, can the material be sent using any format? (attachment to an email) Is certified mail required for this service?

Answer – Certified mail is required.

68. 5.1.1.1.5 Surchargeable Damage What percentage of the time does the Contractor request the FSM make a Surchargeable

Damage inspection?

Answer – HUD/P260 does not breakout the reason for a pre-conveyance inspection - in FY 2014 approximately 1400 were ordered.

What is the time frame for completing this inspection?

Answer – If your are talking about a pre-conveyance inspection - 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.

How is the time allocated to the FSM factored into the 5 business day window the Contractor is allocated to respond to a request to Convey with Surchargeable Damage?

Answer - They are two separate areas of concern. If an inspection is required the MCM will have 5 days to review the information once they receive the report from the FSM.

69. 5.1.1.2.1 Claim Reviews The Contractor is required to notify Mortgagees of Part -A Hard Edit problems within 5 days by email AND certified mail. What is the purpose of the certified mail? (Would a read-receipt of the email serve the same purpose.)

Answer – To confirm the mortgagee’s receipt of the notification.

70. 5.1.3 Reporting A draft copy of the Monthly Directors Report is due NLT 5 business days after reporting period. What does this report consist of?

Answer - The Monthly Director’s Report format will be determined by the MCM GTR.

71. SECTION C1 – General Information, 1.2.1 Current Environment and 1.2.1.1 HUD REO Disposition Systems, p.8 indicate previous volumes of requests submitted by lenders on page 8 and references HUD’s system of record on page 9.