Questions_DU204SB17R0001.pdf

DU204SB-17-R-0001

Santa Ana HOC

Questions & Answers

1. Has a contractor performed similar work to this for the government in the past? If available, please provide the incumbent contract number. If you are unable to provide a contract number, is it safe to assume this is a new requirement for the government?

A. Yes, you can find the current list of M&M contractors at http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/reo/mm/mminfo. All award information for these contracts can be found in the archives on the Federal Business Opportunities website at www.fbo.gov.

2. For clarification purposes. The FSM Contractor under 3.10 is responsible for all payment of utilities at properties, from acquisition to sale, were it is deemed necessary to be activated.

Whereas this expense was a pass through under 3.6. Correct?

A. Answer: Yes. 3.6 is irrelevant

3. What is the volume of properties in each Contract Area contained within the following HOC (DU204SB-17-R-0001 Santa HOC)?

A. Historical volumes were provided in the synopsis and estimated quantities are provided for each Section B attachment to the solicitation (Attachments 9, 10, 11, 12, 13, and 14).

4. How is the 7.5 million dollar revenue limit calculated for the purpose of determining if a company falls within that criteria? If the revenue was beneath 7.5 million dollars for two of the last three years is that acceptable (i.e. 2013 and 2014 are under 7.5 and 2015 is over 7.5 million)?

A. A size standard which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and Federal Contracting programs. The U.S. Small Business Administration makes small business determinations, and the determination of “small” varies by industry. For information on size standards please visit http://www.sba.gov/size.

5. Is the required bond ($500,000.00) required for both performance and payment, or one bond for EACH performance and payment – thus actually totaling $1,000,000.00 per contract?

A. One payment bond in the amount of $500,000 and one performance bond in the amount of $500,000 is required. See amendment 2 to the solicitation.

6. Do you anticipate that the requirement for PIV cards will actually be implemented?

A. Yes, refer to PWS Section 1.13: Contractor Responsibility; System Security.

7. Which specific incidences of vandalism, in addition to locks, doors and windows shall be the FSM’s responsibility and which are not?

A. Refer to PWS Section 4.4: Vandalism. HUD will not provide “specific incidences of vandalism”.

8. Will HUD reimburse contractor for the cost of the annual audit?

A. No

9. Will travel expenses be reimbursable under FSM 3.10?

A. The Contractor is responsible for all travel related expenses under this contract unless prior authorization from the Contracting Officer has been granted.

10. Will the PIV hardware be GFE?

A. No, any costs associated with PIV at contractor’s expense.

11. Reference PWS paragraph 5.2.1.1.5, Occupied Conveyance Inspection. The paragraph says:

"The purpose of this inspection is to determine whether the property contains hazardous materials and is in compliance with HUD regulatory requirements." Will such a property always be occupied or is the name of the inspection a misnomer?

A. The name of the inspection is a general description and may not include all tasks required in the title. No, the property will not always be occupied. This inspection may be required for properties perceived to be occupied when requested by the MCM.

12. Reference Section L. 8, General Instructions of the RFP. In the Technical Approach section, you require the offeror to submit a labor mix and level of effort by labor categories and number of hours. Such a mix will be dependent on the level of workload. In cases where the workload is small, some personnel may perform multiple tasks, while a heavier workload will require more specialization. Will you provide an expected average workload in each area, to base our response on?

A. HUD provided historical workload data as an Attachment to the Sources Sought notice and also provided estimated quantities in the Section B Attachments. No additional workload data shall be provided.

13. Reference Attachment 15 of the RFP. Is this information to be provided in the Business Proposal or the Technical Proposal? If in the Technical Proposal, how can we possibly provide a redacted copy? If it is to be included in the business proposal, what section should it be in?

A. There is no Attachment 15 included with solicitation DU204SB17-R-0001. However, the information requested in Attachment 12 (last attachment), Responsibility Determination, shall be included in the Part II Business Proposal.

14. Page 51 Section 4.6 Identification of Contractor Employees: “The Contractor, at their own expense, shall perform financial and criminal background investigations of all employees, to include any subcontractors, performing services or work in accordance to this PWS as it is determined by HUD. The Contractor may be required to keep a file log detailing when each employee received a background investigation and the resulting conclusion, to which HUD may request to see if it is determined necessary.”

a. What type of background check is required? Simple verification? Multi state in depth 7 year history?

A. The agency anticipates no higher than a Public Trust background check.

b. What are the criteria of acceptance / rejection of personnel based on financial and criminal background investigations?

A. See 5CFR731

c. Will the subcontractor be required to submit the results to the prime (pass/fail) or the complete report?

A. The prime is responsible for ensuring subcontractors have cleared a background check. HUD is not privy to prime and subcontractor relationships.

15. Page 42 Section 4.6 Identification of Contractor Employees: “All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review.

Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or at a minimum, "Contractor" after name.”

a. The badging requirement seems to be limited to interactions between the Government and Prime/Subcontractors. Confirm that this does not flow down to the subcontractors performing work on the properties.

A. The badging requirement in accordance with Section 4.6 does pertain to subcontractors.

Contractors/Subcontractors shall identify (themselves as such when deemed necessary). When inspecting properties via the sign-in sheet when performing work on properties.

16. Section 5.3: Required Reports-Annual Audited Financial Statement -Says need to submit to CO no later than 90 days from expiration of base year or option year but in Section 6 A005 it states 120 days. Which is correct? 90 days or 120 days?

A. 90 days

17. Sections 5.4 And 5.4.2 Quality Assurance: It states 5% deduction on monthly invoice for each 5% deviation below the minimum satisfactory requirement. I am assuming the minimum satisfactory requirement is 95%, does this mean you wouldn’t receive your deduction unless you reached 90% since that would be the first 5% deviation?

A. Disincentives have been removed from Section 5.4 by amendment 2 to the solicitation. Section

5.4.2 does not exist.

18. Section 5.2.3 Initial Cleanout Services:

a. Do sliding glass on a door count as window or a door?

A. If sliding glass on a door or window is found to be in need of repair, repairs must restore the door or window to the original condition and be in a manner that conforms to the esthetics of the property in accordance with Section 5.2.2.3 of the PWS.

b. Are defective garage doors allowed to be secured permanently (boarded) if there is alternative access to the garage?

A. If a door or window is found to be in need of repair, repairs must restore the door or window to the original condition and be in a manner that conforms to the esthetics of the property in accordance with Section 5.2.2.3 of the PWS.

c. Is Plexiglas permitted to be utilized to re-glaze windows?

A. No

d. Is a sump pump being operational considered a 1C promotion item?

A. Refer to the definition of Ready to Show Condition in Section 2.1 35 of the PWS. All repairs required to correct safety hazards and any approved repairs to be done prior to listing the property must be completed in order for the house to be in ready to show condition.

e. Sump pump activation requires utility activation, which may take several days to identify and activate the service. Will this be held against the FSM contractor while waiting for electric service to be activated?

A. The PWS allows seven (7) days to get the property in Ready to Show Condition and promote to 1C.

f. Are 2x4’s permitted to be utilized as handrails inside properties?

A. Stairs and handrails must be secure and installed per local code and in a manner that conforms to the esthetics of the property and remedies a health and safety concern.

g. Is HUD requiring FSM use decorative handrails for exterior of property?

A. Stairs and handrails must be secure and installed per local code and in a manner that conforms to the esthetics of the property see above answer

h. Will HUD use clear boarding as alternative to re-glazing?

A. No

i. If yes to clear boarding will this be a pass through expense?

A. No. Refer to PWS Section 5.2.2.3: Repair Broken Windows and Doors

j. Is the expectation that the FSM move a property to “hold off market” status if remedying high cost issues such as mold or demolition that will take longer than 7 days to resolve?

A. This would be a GTR decision on a case-by-case basis.

k. If a property’s acreage is greater than two acres in size, is the expectation for FSM to cut entire property as part of cost for CLIN004?

A. Refer to Schedule B: Initial Services

l. If a property’s acreage is greater than five acres in size, is the expectation for FSM to cut entire property as part of cost for CLIN004?

B. Refer to Schedule B: Initial Services

m. The definition in the solicitation for “ready to show” states the following: “Upon GTR direction, carpet and tack strip may be removed if condition impedes marketability.” This is usually done at the time of initial services. If GTR approval is required to remove carpet and tack strips, is this a reimbursable debris item?

A. The GTR will determine on a case by case basis.

n. Will the contractor be penalized for failure to remove carpets at the time of initial services, however GTR approval may be delayed due to weekends, etc. – can the property still be promoted to 1C pending this removal and approval?

A. GTR to determine on a case by case basis.

o. Is the expectation for FSM to remove broken gutters and downspouts or repair/replace?

A. Yes, the contractor is expected to do whatever is necessary to stop active leaks that may cause deterioration of the property or pose an imminent health or safety hazard. This includes ensuring proper drainage is maintained around the perimeter of the property. Refer to PWS Section 5.2.2.3: Prevent Further Moisture Damage.

p. Does the AM/Broker completing the Ready to Show inspection have a standard form used to evaluate the FSM Initial Services? Will HUD provide the initial service evaluation form if yes?

A. This should be available in P260

19. Purchaser Testing: The RFP states that the purchaser would be responsible for actual costs to activate, deactivate and usage. Contractor cannot charge for helping facilitate this. Also states contractor will re-winterize at his own expense. It doesn’t speak to de-winterization unless we are to assume that would be an actual cost the purchaser would need to pay to "activate"?

Please provide advice as to the process of de-winterization for purchaser testing.

a. Who is responsible for the purchaser de-winterizing a HUD property for the tests?

A. Refer to PWS Section 5.2.2.3: Purchaser Testing

b. Who bears the liability for any plumbing or water damages due to the buyer de-winterizing a property?

A. The FSM is responsible for the condition of the properties in accordance with the PWS (see section C 5.1) unless otherwise specified by the GTR. However, a requirement of the turn-on of the utilities is that the agent be present for the activation. If the agent is not there and damage occurs to be property, the agent or the buyer is responsible for damage. The FSM must do their due diligence in accurately reporting any known or possible problems with the systems, or they may also be liable.

c. How many days is the buyer permitted to have the property de-winterized for?

A. The Contractor shall allow purchasers under contract the opportunity to activate and deactivate utilities for a period of 24 hours for the purpose of performing a system check prior to purchase.

Please see PWS requirements found under section C.5.2.2.3.

d. How is the FSM notified when a property is ready to be re-winterized?

A. Refer to PWS Section 5.2.2.3 for Winterization requirements.

e. Is the FSM responsible for any utility usage charges accumulated during the activation period?

A. Refer to PWS Section 5.2.2.3: Purchaser Testing

20. Section B.2 Pricing: The solicitation states: Missed/ Late Routine Inspections: The penalty for not performing an inspection timely (within 10-14 days) in accordance with CLIN 0005, CLIN 0006, or CLIN 0007 and corresponding option CLINs shall be $50.00 per day.

a. Will credit for an inspection be given to the contractor if the inspection is completed late in the day on the 14th day, but the HUD system closed for the evening and the property inspection is loaded first thing in the morning on the 15th day – provided the inspection demonstrates through photo evidence of the inspection being completed timely?

A. No, unless it can be demonstrated that P260 was unavailable. Uploads should be done around system hours of operation. The current system hours for P260 are 7am-9pm Eastern Time on weekdays and 8am-6pm Eastern Time on Saturday, except for holidays recognized by the

Federal government. Support is not available on Saturdays. The Help Desk hours are 8am to

8pm Eastern Time, Monday-Friday, excluding Federal holidays.

b. Does the penalty apply to Sundays considering P260 is closed for order edit or entry?

A. Yes, to avoid penalties uploads to P260 should be scheduled around systems hours of operation.

c. Can HUD please explain the basis of the cost applied to Liquidated Damages of $50 per day for missed routine inspections?

A. The calculation is a reasonable forecast of the daily costs to the agency caused by a contractor’s untimely performance.

d. Is there a marketing fee reduction to the Asset Manager when their assigned broker fails to perform a routine inspection as well?

A. This solicitation is for 3.10 Field Service Management services only and HUD will not be providing answers relative to other contract requirements.

e. Does the penalty start accumulating on the 15th day?

A. Yes

f. Is there a cap per property on the amount of liquidated damages for missing the routine inspection?

A. No, there is no per property cap. However, the cap per inspection is calculated starting on day

15 through day 25 at which time a new inspection would be required. Therefore, based on the calculation, 10 days multiplied by $50 per day would equate to a $500 limitation per occurrence per property. Additionally, the Government may withhold payment of CLINs 0005, 0006, or

0007 for inspections that are missed in their entirety.

g. Why did HUD choose a liquidated clause as opposed to the current methodology of each inspection being deducted in the current contracts?

A. The time of performance is so important that the agency reasonably expects to suffer damage if performance is delinquent.

h. Will the 3.6 FSM contracts be modified to this new penalty standard?

A. This solicitation is for 3.10 Field Service Management services only and HUD will not be providing answers relative to other contract requirements.

i. Should a contractor be awarded a contract, and the government utilized H.6 to enlarge a performing contractor area, will the 3.6 FSM contractors also have the opportunity to grow into those areas of non-performance? If so, will modifications be made to their contract to match the PRS and SOW as well as pricing to match the 3.10 contracts?

A. This solicitation is for 3.10 Field Service Management services only and HUD will not be providing answers relative to other contract requirements.

21. The solicitation states: Note: Daily damages are assessed to the contractor when the contractor places the property in 1C (triggers CLIN 0004 payment) but the property is found to be in “Not Ready to Show Condition” as determined by the Asset Manager and verified by the GTR.

a. Is this only for properties found to be not in 1C Ready to Show condition?

A. Yes, daily damages are assessed to the contractor when the contractor places the property in 1C (triggers CLIN 0004 payment) but the property is found to be in “Not Ready to Show Condition” as determined by the Asset Manager and verified by the GTR. However, there are other instances where liquidated damages may be assessed.

b. Does this apply to properties that may develop issues after promotion through the steps, i.e. a step 6 property where a window shows up broken during an AM routine inspection?

A. No, acts of vandalism performed after the property is listed and the initial AM inspection conducted will not be assessed liquidated damages for “Not Ready to Show Condition”.

However, liquidated damages will be assessed if the FSM routine inspection does not report the vandalism timely.

c. How will HUD determine if any property is NRTS, including acts of weather, vandalism, etc. that are not in the power of the FSM to control?

A. The HUD GTR will make a determination based on the nature and severity of the deficiency. The

FSM should submit an Exception request with backup documentation to the GTR.

d. Will liquidated damages be accumulated per day until the issue is resolved?

A. Yes, if the property is graduated to Step 1C prior to being in Ready to Show condition.

e. What will be the course of action for the liquidated damages claim if the issue is resolved in the same day as it was observed and reported?

A. The contractor will be assessed a single day’s worth of liquidated damages.

f. Does the FSM GTR determine if the NRTS WON from the AM broker is legitimate before directing the FSM to correct the “deficiency”?

A. Yes

g. Is liquidated damages for CLIN 004 calculated from notice of the NRTS WON to correction?

A. Yes

h. Is liquidated damages for CLIN 004 calculated from 7th day after FSM assign date to resolution of

NRTS WON?

A. No, see answer g. above

i. Does the AM GTR determine if the NRTS WON from the AM broker is legitimate before directing the FSM to correct the “deficiency”? If so, which GTR the AM or FSM GTR, is directing the FSM to correct the deficiency or providing the liquidated damages clause? Will photographic evidence be provided to the FSM of the NRTS conditions?

A. Yes, FSM GTR is coordinating the effort with the AM GTR. The AM uploads their Inspection Report with photos to support their issuance of a NRTS WON for the AM GTR to approve/disapprove the WON. The photo evidence is in p260. The FSM will have to request the photo evidence from the FSM GTR.

22. Can the Bidder consider penalties in determining such cost as liquidated damages as part of cost to do business with the government? (FAR 31.201-4 –subpart C-- Determining Allocability)

A. FAR Part 31 applies to cost reimbursable line items only. However, offerors should consider liquidated damages when proposing the CLIN pricing.

23. Will HUD consider previous FSM contracts as sources to determine the fair and reasonableness of the cost/price?

a. If yes, will 3.0 contracts be considered?

b. If yes, will 3.6 contracts be considered?

c. If yes, will 3.8 contracts be considered?

d. If yes, will only those prices submitted and awarded to previous and current FSM’s that performed at high levels as per their CPAR’s be considered?

A. Refer to Section M.3 of the solicitation.

24. When establishing fixed costs in pricing proposal and backup materials, misstated volumes may impact unit cost per acquisition. Is the bidder allowed to use internal estimated volumes best known based on historical monthly acquisitions and standing inventory when establishing backup?

A. The volumes provided in the solicitation are accurate historical volumes of past REO M&M contract requirements. These historical volumes may not be indicative of future M&M REO performance in these areas. Offerors should use whatever methods they believe would yield their most accurate costs to perform contract requirements.

25. The quantity of vacant lots for each contract area equals the REO Vacant property quantities- is this an error or does the government anticipate this inventory of vacant properties in the upcoming contracts?

See amendment 2 to the solicitation.

26. Will HUD provide the actual assignments, per state, for each potential contract award area for the past four years?

A. The government will only provide the historical volumes as outlined in the solicitation for this procurement effort.

a. If four years of data for actual FSM assignments is not available, can HUD provide at a minimum the previous two years of assignments per contract area?

A. Historical figures outside of those outlined in the solicitation will not be provided.

b. This data is very important for the proper bid and pricing determinations. Is the data supplied to each offeror in the CLIN attachments accurate or just an estimated quantity?

A. In regards to the volumes provided for the CLINs, the data is provided for estimated quantities only.

c. Are the quantities of routine inspections required based on a frequency of 26 times per year per property?

A. Assumptions are used to provide an estimation of potential volumes as required by this procurement. HUD’s inventory is constantly in flux with properties coming into and going out of inventory. Therefore, no specific assumption is made on a per property basis.

d. What is the average hold time (for the FSM (from step 1c TO STEP 9) for each state that is being offered for bid?

A. The national average that a property stayed in REO inventory, calculated over the last twelve months, was 141 days. This figure may not be indicative of future REO performance due to contractor performance and/or changes in market conditions or other exterior forces outside the requirements of this contract.

27. What is the current lead time for P260 access for new applicants?

A. New applicants will follow the PIV-CHAMPS request process. The timeframe can be two (2) months to process new fingerprints. After approval a CHAMPS (system access request) can take two (2) weeks to process.

28. How will HUD ensure new contractors that P260 access and what steps is HUD taking to ensure each contractor has adequate P260 access once the contract has been awarded?

A. The contractor is responsible for taking all necessary steps to submit PIV requests timely. See FAR 52.242-17 for procedures as a result of government caused delays

29. We have heard it takes 6 months currently for new PIV approvals for P260 access. Should this be the case upon FSM contract award, what steps will HUD provide to ensure each awarded contractor has sufficient access to perform the required functions required by the FSM program?

A. HUD systems security officers cannot grant access to new contractors without completing the PIV & CHAMPS process.

30. Is there a direct interface available from the FSM’s technology or software into P260 to help with the timely submission of inspections and required work order completions?

A. Yes, Yardi has a P260 API’s (Application Program Interface) for AM & FSM Inspections to directly load from the FSM technology.

31. What are the hours of anticipated availability for HUD technology for contractor staff to perform their functions?

A. System Hours Weekdays: 7am-9pm Eastern; Saturdays: 8am-6pm Eastern Federal holidays excluded

Help Desk Hours Weekdays 8am-8pm Eastern, Federal Holidays excluded

Portal users – Buyers Select Closing Agents, Appraisers, Inspectors, Mortgagees. Can submit work for FSM & AM approval to enter P260 system 24 hours a day.

32. What type of background checks are required by HUD to be active in the FSM program?

A. The agency anticipates no higher than a Public Trust background check.

a. Do these checks apply to any subcontractor working under the contract as well?

A. The prime is responsible for ensuring subcontractors have cleared a background check.

b. Is there a standard format that the contractor must use to demonstrate compliance with background checks?

A. OF 306 (Declaration Federal Employment) and SF 85 (Questionnaire for non-sensitive positions).

33. Section 5.2.2.1.2 Part II of the HPIR: The cost to install a pool or spa cover shall be a Pass through Expense when pre-approved by the GTR. Question: Pool and spa covers are pass though expense when pre-approved by the GTR, does this also include draining of pools in areas where local ordinance requires different resolution than pool covers, i.e. CA?

A. The remedy of Health and Safety Hazards is a Contractor Expense which includes pools and spas not in compliance with local ordinance as per Section 5.2.2.1.2 of the PWS.

34. Section B.2 Pricing: Contractors Limitation on Cost for Health and Safety Repairs: The solicitation states that there is now effectively a cost limitation for these repairs under the 3.10 program, however the cap limit of HPIR + IS + One month PM fee seems high – as most properties are now selling quickly and these instances could result in losing money on many properties over the course of the contract. Will HUD provide a definitive list of the types of costs included in the health and safety allowance?

A. HUD will not be providing a list of Health and Safety hazards. See Section 2.1 for the definition of Health and Safety hazards. The health and safety cap shall apply only to contractors out of pocket expenses that are not otherwise reimbursed under the cost reimbursement CLIN.

35. For instance, items like downed trees, stop box issues with water supplies, fences missing or fallen over, large holes in the yard that need to be filled in – these are types of pass though expenses that GTR’s have approved in the past, without limits, for pass through expenses.

Would these types of expenses still be covered as pass through expenses before the cap limit or applied to the limit?

A. The cap or limit only applies to Health and Safety hazards. The health and safety cap shall apply only to contractors out of pocket expenses that are not otherwise reimbursed under the cost reimbursement CLIN. Allowable pass through expenses will be reimbursed in accordance with Attachment 5.

36. Does HUD have any data to supply offerors on average health and safety expenses per property assigned in the past several years?

A. No.

37. What is the average cost of health and safety expenses per property under the current HUD contracts for FSM?

A. The remedy of Health and Safety Hazards is a Contractor Expense as per Section 5.2.2.1.2 of the PWS. Past expenses incurred by contractors in the performance of abating health and safety hazards are not indicative of future expenses that may be incurred by contractors in performance of the same duties.

38. Do health and safety repairs required after the property is marketed, i.e. vandalism, count towards the limit on each property for the cap?

A. Yes. The contractor may submit costs that exceed the calculated Health and Safety cost limitation as a valid pass-through expense upon GTR approval in accordance with the HUD Financial Control Manual.

39. Transition in: Will the new contractors be reimbursed for the work required for properties not in “ready to show” condition that are transferred to the new contractor.

A. Any transition properties determined by the GTR to be in Not Ready to Show condition will be eligible for the FSM 3.10 contractor to invoice applicable initial service CLINs

40. Will the work required on properties transitioned to new FSM contractor to bring the property into “RTS” condition be applied to the Health and Safety caps that are discussed in B.2?

A. It may be applied to the Health and Safety cap to the extent that the services performed were Health and Safety hazards

41. Section 4.1 Facilities: The solicitation states the Project Manager must sit in the HOC office – so the CM and QCM do not need to be located at the contractors HOC office?

A. Yes

42. We are considering bringing on a prime subcontractor to be our independent QC vendor – the solicitation states that the QC manager be a vendor employee- are there circumstances where brining in an independent audit/qc firm to perform this duty would be acceptable to HUD?

A. Yes, a third party can be the QC manager. See Section 4.5 of the PWS.

43. Part I of the HPIR: Conveyance Condition:

a. Will the MCM be providing daily review of properties not in conveyance condition?

A. No

b. How long will it take to re-convey a property?

A. There is no set timeframe. However, the recommendation, lender review and appeal process typically takes no less than 120 days.

c. Will a property eligible for Re-conveyance due to work not completed by the mortgagee be re-conveyed before the 7 days are completed?

A. Reference PWS Section 4.4: Held Off Market (HOM) Codes

d. Will properties taking longer than 7 days (CLIN004 liquidated damages) sent to the GTR for Reconveyance where GTR notifies FSM of decision not to re-convey after 7 days count towards liquidated damages?

A. Reference PWS Section 4.4: Held Off Market (HOM) Codes

e. Many properties are not in marketable conditions even after the required services are completed. Will HUD be approving cosmetic repairs to be completed as part of this program?

A. Yes. This specific issue can be address by the GTR with information provided by the contractor.

44. COSMETIC ENHANCEMENTS AND/OR REPAIRS

a. What is the average amount of dollars approved for cosmetic repairs?

A. HUD cannot predict the potential amount of properties where this situation will occur.

b. How many properties in the past three years have been approved for these repairs?

A. HUD cannot predict the potential amount of properties where this situation will occur.

c. Are these repairs an allowable pass thru expense?

A. Case by Case Upon request and approval GTR per Attachment 5 to the solicitation.

d. If they are not a pass thru expense, do the dollars expended count towards the health and safety allowable per property as stated in B.2?

A. No

e. What percentage of assignments have approved cosmetic repairs approved?

A. HUD cannot predict the potential amount of properties where this situation will occur.

f. What types of cosmetic repairs are required?

A. Reference PWS: 5.2.7 COSMETIC ENHANCEMENTS AND/OR REPAIRS

45. L.8: Does the “Proposal Matrix” count towards total page count limits? Can font size and margins of “Proposal Matrix” be 10 pt. and ½ margins?

A. Yes, the proposal matrix does count toward the total page count limits. No, please see Section L of the solicitation for font size and margin criteria.

46. Routine (On-going) Property Management (PM) Fees (CLINs 0005,0006, or 0007 and corresponding Option Year CLINs): Offeror’s approach to perform a field inspection on a minimum of 5% of assigned properties across the entire contract area each month to validate field work and compliance with Offeror’s Property Management Plan. Can the 5% of QC inspections be used to credit missing routine inspections to avoid liquidated damages?

A. No

47. CLIN 008 - CLIN intentionally left blank. There is no Transition Fee CLIN. How does HUD intend to pay for properties transitioned into the inventory in Not Ready to Show condition?

A. If the property has been promoted to step 1-C it will be paid out of CLIN 0005 and corresponding CLINs for each optional year. For properties where initial services haven’t been completed by the previous contractor, the new FSM 3.10 contractor will perform the initial services for the property per the requirements of the PWS.

48. Initial Services (p. 11): Penalty re IS – The Note states: Daily damages are assessed to the contractor when the contractor places the property in 1C (triggers CLIN 0004 payment) but the property is found to be in “Not Ready to Show Condition” as determined by the Asset Manager and verified by the GTR.

a. Does a penalty attach if a property is NRTS after it has stepped past 1C?

A. Contractor will be penalized via the scorecard

b. If the AM determines that property is NRTS after Step 1C is there a penalty?

A. Contractor will be penalized via the scorecard

49. Post-Acquisition Utility Charges (p. 59): – This section states that contractor shall pay without reimbursement by HUD all utility charges. If there is no utility consumption and all services have been turned off and a utility company charges a base charge to support its infrastructure will HUD reimburse for such base charges?

A. No. The Contractor shall pay, without reimbursement by HUD, all utility charges.

50. C.5.2.2.1.3 Part III of the HPIR: Will HUD allow visual inspections for System functionality for gas systems?

A. No

51. Without activated utilities and considering the time constraints, what alternative means of testing gas lines are acceptable to HUD? Opening a closed gas system to pressure test could prove to be quite hazardous and gas testing in most areas require a licensed plumber to perform these services. Maintaining a subcontractor base of licensed plumbers across the region is costly and limited. Gas system checks require different equipment and expertise for pressurization as well as higher levels of liability.

A. No, the contractor provides their methods to meet the PWS requirements. Therefore, the contractor is expected to identify a process that will confirm the functionality of the gas systems.

52. Section 5.2.2.3 Initial Clean-out Services (p. 57) - Disposal of all Debris, Refuse, and Personal Property - The Contractor shall remove and properly dispose of all debris, refuse and personal property from both the land and structures at HUD-Owned Properties. The first 10 cubic yards (CY) of debris, refuse and personal property (or any combination thereof) is at Contractor Expense. Verifiable debris (not to include grass cutting, tree/bush trimming and foliage) in excess of 10 CY and discovered at initial inspections shall be an allowable Pass through Expense and submitted in accordance with the HUDs Financial Control Manual. This appears to be contradictory. It first states that debris from land and structure up to 10 CY is contractor expense but then states that verifiable debris excludes foliage, grass, tree/bush trimming. If those are upon the land, then would they be a pass-through over 10 CY?

A. No, debris, refuse and personal property from both land and structures does NOT include: grass cutting, tree/bush trimming and foliage.

53. Mold (p.64) - The Contractor shall remedy at their expense small amounts of mold not to exceed twenty-five (25) square feet in any single area. How is HUD defining “any single area”? Per room? Per wall? If by walls, if mold is continuous from wall to wall each having up to 25’ is contractor expected to pay for all?

A. A “single area” is any particular extent of space or surface. In accordance to the PWS, the Contractor shall remedy at their expense small amounts of mold not to exceed twenty-five (25) square feet in any single area.

54. Ready to Show Condition (p.35) states that Stairs and handrails must be secure and installed per local code and in a manner that conforms to the esthetics of the property. Can HUD better define what is meant by “esthetics of the property”?

A. The repairs should blend in and/or match the overall look of the property.

55. As it relates to Initial Services definition (pg. 11) - How does contractor demonstrate evidence in order for HUD to “verify” debris in excess of 10 CY? Will this be based on Initial Inspection photos or some other method?

A. Yes, this would be based off of date stamped photos from the properties Initial Inspection

56. Is HUD's Financial Control Manual updated to reflect HUD 3.10? If so, can it be shared by HUD now?

A. The 3.10 PWS is in line HUD’s Financial Control Manual, the Financial Control manual will be provided to offeror at post award.

57. Initial Services daily damages (p. 11). Please elaborate how the number of days in the "daily damages" will be calculated.

A. Daily

58. The FSM has to build all of its costs across only a few CLINs, including CLIN 0004. Thus, CLIN 0004 includes other costs not associated with the actual Initial Clean. Thus, to enforce FAR Clause 52.211-11, the actual service of Initial Clean should be segregated from other functions.

However, bidders can't do this due to the CLIN structure provided by HUD. Will HUD be providing additional CLINs to break out Contract functions such as Utilities Management and Environmental Compliance to accurately penalize for the service not performed?

A. HUD will not be providing additional CLINs on this solicitation. The referenced liquidated damages clause is applied independently of CLIN pricing. There is nothing in the solicitation that would prohibit Offerors from including all necessary costs under the existing CLIN structure.

59. As it relates to Missed/Late Routine Inspections (p. 12): Why are CLINs 0005, 0006, and 0007 being impacted when Routine Inspections are paid through CLIN 0005AA. We doubt any contractors are bidding $1500 per routine inspection ($50 * 30 days). Shouldn't the damage amount be a proration of the CLIN, same as HUD is proposing for CLIN 0004?

A. SLIN 0005AA is a subset of the routine services (CLINs 0005, 0006 and 0007), and failure to perform the routine inspections has a greater cost impact to HUD than the amount of the inspection itself due to the additional holding costs and increased risk for vandalism or other damage absent the routine inspection(s).

a. If the FSM turns in a late inspection, will they be paid for the inspection?

A. Yes, provided the inspection is performed/uploaded prior to the next routine inspection becoming due. However, liquidated damages will be assessed in accordance with FAR 52.211-11

b. This $50/day penalty is excessively punitive. Not only does it risk hurting the FSM, but it can potentially incapacitate a small business vendor if the FSM flows the penalty down. Does HUD realize it can easily bankrupt small businesses with this penalty?

A. The $50/day cost is derived from historical damages and is not punitive. The routine inspections are mandatory under the terms of the PWS, and liquidated damages will only be assessed based on a contractor’s failure to perform. To the extent that offerors cannot perform the services, they should not be bidding on the FSM requirements.

60. As it relates to Cost Reimbursement Services definition (pg. 12) - Contractor issues certain funds on HUD’s behalf. For example, Contractor commonly issues security deposits to activate services for property preservation purposes. These deposits are regularly used by the entity against the “final bill” refunding only a partial amount of the original deposit. Contractor cannot guarantee these accounts will be closed prior to the 60 days of when the out of pocket expense occurred.

Will contractor be able to bill for these usages despite the date the funds are issued?

A. The FSM contractor is now responsible for all utility charges.

61. Are the Performance and Payment Bond needed to bid on the contract?

A. No. A performance bond of $500,000 and a payment bond of $500,000 is required per contract award. The bonds are required to be provided 10 days after contract award. See FAR Clause 52.228-16 in Section I of the solicitation.

62. Is the $500,000 Performance and Payment Bond requirement per Contract Area bid or awarded?

A. The Performance and payment bonds are required for each contract that is awarded.

63. As it relates to Assignment of Assets: per paragraph 2, the government may unilaterally stop assigning assets...Who would those assignments be issued to?

A. It is possible that the Government would realign the area and start assigning assets to another

FSM service provider. The Government’s liability under the terms of the contract shall be met upon achievement of the guaranteed minimum specified in HUDAR 2452.216-76.

64. As it relates to Electronic Disclosures, Records and Signatures (pg. 21): can HUD please provide an example of how this would be used by the FSM?

A. No, The Contractor is to comply with the PWS, as written.

65. Will HUD provide FSM access to system security training for its staff in order to comply with staff certification requirements (pg. 21)?

A. Refer to PWS (C 1.13) Transition In

66. Are the Post Award conference and Orientation different events?

A. Yes

67. For transition properties, what will the anchor date be for assigning Routine Inspection due dates, the original FSM Assigned date or the transition date?

A. FSM Assigned Date

68. Custodial Properties definition (p. 29 of 155): There are limited property management tasks associated with these properties. Can HUD please define these?

A. Refer to the PWS for Custodial property requirements.

69. The financial burden on these contracts can range up to $500K/month per Contract Area, depending on the inventory. However, there doesn't appear to be a Letter of Credit requirement. Given that the financial risk to the FSM and HUD are high if a firm can't sustain the financial carry (payroll, field expenses, Utility/HOA payments, etc.), will HUD require a Letter of Credit to bid on these contracts?

A. See Section 1.3 Performance and Payment Bond. An irrevocable letter of credit is an acceptable alternative to a performance and payment bond. Additionally, see Attachment 12 Responsibility Determination.

70. Can the Quality Control Manager be an employee of its Subcontractor?

A. Yes, a third party can be the QC manager. However, the QC function is independent of the Prime contractor and the QC manager is independent from the Prime contractor. See Section 4.5 of the PWS.

71. As it relates to Vandalism (p. 47). If there is excessive vandalism, such as 10 broken windows to repair, is HUD expecting the FSM to incur this kind of excessive repair costs at its own expense or can it submit a bid for pass through expense?

A. In accordance with 4.4 Other Vandalism Repairs, at the determination of the GTR, HUD may reimburse the Contractor for the cost of approved repairs post-contract acceptance as a pass-through expense provided that HUD does not determine that the vandalism is due to the

Contractors failure to properly secure the property against unauthorized entry or that the

Contractor has engaged in (or permitted) a pattern or practice of failing to secure properties.

72. Is there a list of Held Off Market (HOM) Codes that can be provided?

A. These will be provided in P260.

73. What Inspection Forms are used for the different types of Pre-Conveyance Inspections listed under 5.2.1?

A. This information can be requested at post award.

74. What constitutes notifying the Asset Manager?

A. Communication is via p260. However, dependent on the circumstance, emails, telephones calls and other forms of communication can be used in addition to p260 communication.

75. Is the destruction of physical files an approved pass through expense?

A. All documents are to be uploaded into p260, and contractor may be required to deliver a hard copy file to HUD, upon request. Contractor is not required to send hard copy files to the Records Center. Any costs associated with the destruction of files should be included in the Contractor’s proposed CLIN pricing.

76. Are all five Inspection types under Section C.5.2.1.1 - Inspections billed at the same rate under

CLIN 0001?

A. Yes

77. If a property can't be stepped to a 1C for a legitimate reason in a seven-day period (waiting for pool cover, GTR approval, etc.), will there be an exception mechanism so those properties don't count against the FSM's measured performance and stated CLIN 4 liquated damages?

A. This specific issue can be address by the GTR with information provided by the contractor.

78. Since M&M III, HUD has issued little, if any pre-conveyance inspections. Will HUD start issuing pre-conveyance inspections on HUD 3.10?

A. HUD cannot predict the potential amount of properties where this situation will occur.

79. Since HUD Mortgagee Letter 2010-18 requires Mortgagees to convey properties to HUD in broom-swept condition, will the FSM be allowed to work with the Mortgagee or its servicers during the pre-conveyance inspections to remedy non-compliant issues found prior to conveyance?

A. This specific issue can be address by the GTR with information provided by the contractor.

80. Since Secretary Held Mortgages and Custodial Properties are not maintained prior to foreclosure in accordance with Mortgagee Letter 2010-18, should the FSM contemplate any assistance with bringing the property up to conveyance standards, or will it be expected to bring into conveyance condition using its own budget, other than the assistance with the excess of 10 cubic yards of debris.

A. Refer to Attachment 5 for approved pass through expenses

81. Will HUD disclose the number of Custodial Properties in each geographic area prior to bid submission deadline?

A. HUD cannot accurately predict the potential amount of properties where this situation will occur.

82. Section C.5.2.2.1.2 states pools and spa covers are pass through expenses. Does this also include above ground pools?

A. Determine on a case by case basis.

83. Section C.5.2.2.1.3 states the contractor is responsible to include outstanding code violations, pending litigations, demolition order and any other legal actions that may affect the property.

Will the MCM run title upon conveyance to determine such?

A. No

84. Prevent Further Moisture (p.58) - how will the FSM be responsible for proper drainage throughout the perimeter of the property?

A. FSM to provide their determination of this issue in their property maintenance plan

85. Per Section C.5.2.3.2 Routine Inspections - Notwithstanding the allowance of one day toupload documents generally, as noted elsewhere, the routine inspection reports must beupload within the 10th and 14th day interval, not a day after the 14th. If the Routine Inspection is due on the 14th day, and it falls on a Sunday (Yardi is down), holiday, or can't be uploaded after 9pm EST, will that Routine Inspection be considered missing? The one period to upload should apply to routine inspections as well. Yardi has the ability to differentiate Inspection Completion Date from Upload date.

A. Refer to the PWS for inspection upload timeframes

86. Will the AM contractor be assigned to properties at the same time as the FSM for all properties except custodial properties?

A. No

87. Please clarify properties that will require HOA processing by the FSM. It appears that HUD is requiring HOM, occupied, and custodial properties. Is this correct?

A. The FSM is responsible for paying HOA fees in the event a property has been in inventory over

30 days and not assigned to an Asset Manager.

88. How will the FSM become aware of assignment to the AM as it relates to HOA processing?

A. The FSM GTR will notify the FSM contractor of all properties that will not be assigned to an AM contractor.

89. Is there a trigger to alert or define to the FSM that HOA processing is required?

A. No, the FSM should be aware of their inventory and know when a property is getting close to the 30-day mark. The FSM property management plan should address this process

90. On cases where the FSM places the property in HOM status and there is a previously assigned AM, which entity would then do the HOA processing?

A. Please see the answer to question 88

91. Can HUD provide the estimated number of properties per State that will require HOA processing by the FSM?

A. No

92. Does the FSM have any role in recommending cosmetic repairs and enhancements or is it solely an Asset Manager function?

A. The FSM may also request repairs if in their opinion it would be in the best interests of HUD.

93. Currently HUD is running Showcase Programs in select markets for cosmetic repairs and enhancements. Are these programs going to be similar in HUD 3.10 Areas? If so, what are the anticipated markets running the Showcase Programs in HUD 3.10?

A. Santa Ana is not currently running the Showcase Programs

94. What is the anticipated volume of cases that will be approved for cosmetic enhancements and repairs? This is important because this work requires specific skill sets administratively and in the field.

A. HUD cannot accurately predict the potential amount of properties where this situation will occur.

95. Will the FSM continue to have access to Repair Base as the cost estimating tool?

A. Yes

96. How will window replacement over the 4 allocated per the PWS upon initial services be approved? Will the GTR provide blanket approval or is it on a bid basis?

A. At the initial inspection the FSM replace the first four (4) broken windows and submit a pass through request for GTR approval for any additional windows. Replacement/boarding of additional windows is a GTR determination on a case-by-case basis.

97. Is GTR approval required to remove carpets? Will this be a pass through expense?

A. This will be a GTR determination on a case…