Questions_DU204SB17R0002.pdf

DU204SB-17-R-0002

Atlanta HOC

Questions & Answers

1. What is the volume of properties in each Contract Area contained within the following HOC?

DU204SB-17-R-0002 Atlanta HOC

A. Please refer to Attachments number 9, 10, 11, 12, 13 and 14 of section “J”.

2. 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)? Please let me know how the 7.5 million revenue limit is calculated.

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.

3. 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 $500,000.00 and one performance bond in the amount of $500,000.00 is required. See amendment 2 to the solicitation.

4. 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.

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

A. No

6. 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.

7. Will the PIV hardware be GFE?

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

8. 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.

9. 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. The information requested in Attachment 15 (last attachment), Responsibility Determination, shall be included in the Part II Business Proposal.

10. 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.

11. 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.

12. Will HUD will timely comply with Executive Order M-12-16 and M-14-10, albeit ending 31DEC16, with respect to Prompt Pay Act. We need to understand the historical and anticipated pay cycles upon which HUD will make payments.

A. FAR 52.232-40 shall be included by amendment 2 to the solicitation. HUD will comply with the order. Per FAR 32.0009-1, the acceleration does not provide any new rights under the Prompt Payment Act and does not affect the application of the Prompt Payment Act late payment interest.

13. 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

14. 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.

15. 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. P260 is available 24 hours a day except for Sundays.

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 calculations is reasonable forecast of the daily cost to the Agency caused by 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.

16. 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. It will be based on when the property is graduated to Step 1C initially.

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.

17. 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 for price reasonableness.

18. There’s an intent to award 3 Contracts Page 141 of 155 and I believe projected $ values are included, so does that mean if you only bid on one area you won’t be selected as you have said that you won’t give any company more than 2 areas?

A. Awards priority will be conducted in accordance with Section M of the Solicitation

19. If HUD awards two Contract Areas to a bidder, can the bidder choose other areas lower on HUD's priority scale?

A. Awards priority will be conducted in accordance with Section M of the Solicitation

20. Will there be a Letter of Credit requirement in this Solicitation?

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 15 Responsibility Determination.

21. Initial Services daily damages (pg. 11):

a. How are the number of days calculated?

A. Liquidated damages are assessed from notification of Not Ready to Show condition by the FSM GTR to the Contractor until the Contractor uploads photographic evidence of completion in P260.

b. Is this damage calculated after a property gets promoted to 1C late or if an AM opens a NRTS upon its inspection?

A. See answer to a. above. Liquidated damages will only apply after a property is graduated to Step 1C. However, properties that are promoted to Step 1C late will impact the scorecard and/or CPARS ratings.

c. Is the damage amount the prorated amount for the entire CLIN or just the Initial Service field costs portion?

A. The damage amount is calculated based on the total CLIN price. The only proration applied is based on the number of days. See the note under the Initial Services section in Section B for the calculation example.

22. Does the $50 per day routine inspection penalty apply even if the FSM is performing above 95% success rate on its Scorecard?

A. Yes, the $50 per day liquidated damage applies regardless of the overall scorecard rating and is not considered a penalty.

23. Why is the $50 routine penalty not against CLIN 5AA?

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 then 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).

24. Is it legal to penalize the contractor more than what the Contractor is charging the Government as it relates to the $50/day on Routine Inspections?

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 then 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).

25. Initial Services (pg. 11 of 155): Penalty: There are many items priced into CLIN 4 (Initial Services). Is HUD planning on penalizing the FSM for most of its operational expenses imbedded in this CLIN for the Not Ready to Show?

A. CLIN 004 is not comprised of SLINs, therefore, Liquidated Damages will be assessed on the one CLIN. See FAR Clause Liquidated Damages 52.211-11 for further information.

26. How does HUD justify a $50 per day penalty on a late Routine Inspection?

A. The $50/day cost is derived from historical damages, which have been greater than the contractor’s actual cost of the inspections. Failure to perform inspections timely increases the risk of vandalism, delays repair of health and safety hazards, increases the likelihood of further damage, increases hold times and reduces the net sales price due to properties not showing well.

27. Will HUD pay for a late inspection on CLIN 0005AA?

A. Yes, provided the inspection is performed/uploaded prior to the next routine inspection becoming due.

28. HUD states that the FSM is responsible for 25 feet of mold in a single area (pg. 64 of 155). What does HUD consider a single area?

A. A “single area” is any particular extent of space or surface. In accordance with 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.

29. Is the Performance and Payment bond required before bidding?

A. 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.

30. Will a different Contractors Limitation on Cost for Health and Safety Repairs completed at Custodial properties be set?

A. No

31. How will HUD review past performance or experience?

A. See Section M of the Solicitation

32. 5.2.2.3 – What documentation will be required for successful reimbursement of expenses to dispose of debris, refuse and personal property (or any combination thereof, not to include grass cutting, tree/bush trimming and foliage) in excess of 10 CY? What determines “verifiable” as prescribed in the PWS?

A. See PWS 5.2.2.3 and in accordance with the Financial Control Manual.

33. How is HUD calculating Liquidated damages for all the CLINS?

A. A. See Section B for calculations and examples.

34. How does HUD want us to use the electronic signature?

A. Electronic signatures are not authorized for the proposal per Section L. However, for electronic disclosures, records and signature see amended Section 1.3 of the PWS.

35. What are the anchor dates for transition properties? Do the punitive damages apply to these properties as well?

A. See section 1.13 Transition In of the PWS. Any damages applied will be in accordance with the Liquidated Damages clause and will not be punitive. Incentives/disincentives will be removed from the PRS.

36. Will liquidated damages begin being assessed at the same time as the beginning of the assessment period?

A. The 120-day delay for scorecard assessment and liquidated damages will apply from the award date of the contract for all inventory.

37. Is the performance bond required at bid or award?

A. 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.

38. Will the Annual Audited Financial Statement be due no later than 90 days or no later than 120 days before the expiration of the base year and each option year?

A. No later than 90 days.

39. Is the prime contractor responsible for a subcontractor’s subcontractors/employees meeting Service Contract Act requirements?

A. Per the Service Contract Act, yes.

40. If a prime contractor pays fixed prices to a subcontractor, how is the prime to ensure that the subcontractor is meeting Service Contract Act.

A. The prime contractor is responsible for flowing down the provisions of the Service Contract Act and prevailing wage determinations in its executed subcontracts. Provided the prime contractor is in compliance with its payments to the subcontractor, the Prime will not assume responsibility for the subcontractor’s payments to its employees. Under these circumstances, the U.S.

Department of Labor (DOL) will pursue payment directly from the subcontractor.

41. Santa Ana HOC Draft PWS -- In several places, Areas 3S and 5S are combined as 3S/5S indicating that the bid will be a combined bid (See Place of Performance Service Areas, FedBizOpps -- 3S/5S and Section L.7 on priority list stating 3S/5S combined award.) However, the actual pricing tables (Section B2) are separate tables for Area 3S and Area 5S. Can you confirm whether these areas are combined for one award or are two separate award areas? If they are combined, does that award of the combined area count as one contract or two for purposes of Section L.7?

A. Note, this solicitation is for the Atlanta HOC areas only. However, areas 3S and 5S are combined and one award will be made for these areas under the Santa Ana solicitation DU204SB-17-R- 0001. However, an offeror must submit separate pricing schedules for 3S and 5S and submit a total combined proposed amount for both areas at the end of the pricing schedules. See Attachment 9 of the solicitation.

42. Service Contract Act – We see that compliance with the Department of Labor’s current Federal Wage Determinations is a requirement of this contract as indicated at H.14 SERVICE CONTRACT LABOR STANDARDS. As such, each contractor will contribute a minimum of $8,881.60 annually ($740.13/month) for each employee for Health and Welfare Benefits along with the prescribed vacation time and Federal Holidays. Is it a correct assumption that each bidder must include these costs to comply in the bid to perform the FSM services?

A. All Offeror’s are required to comply with the Service Contract Act. The preparation and submission of a proposal is a business decision of the offeror. For further information, see the U.S. Small Business Administration’s website at www.sba.gov.

43. Award Date. When does HUD anticipate making the awards for FSM-3.10?

A. At the earliest March 2017

44. Response Submittal Date. Will HUD extend the proposal deadline to a date that is at least 30 days after the date HUD publishes its answers to questions?

A. That is not the intent of the Agency at this time.

45. LPTA Evaluation. Will HUD disqualify respondents’ proposals that offer unrealistically low pricing as presenting a substantial risk to the government, even though the technical portion of such a proposal may “pass” as acceptable? In plain language, has HUD determined a “floor price” below which HUD knows the work cannot be properly accomplished and therefore HUD will not award any contract below that price?

A. Refer to Section M.3 for Price Reasonableness

46. The SF 33 doesn’t state this is a Set Aside for Small Business but the Set Aside for SB clause is included on Page 124 FAR 52-219-6. SBA looked this over and said it is not a small business set aside. Is it or is it not a set aside for small business?

A. This is a 100% Small Business set-aside. There is no box on the SF-33 to indicate a small business set aside.

47. Page 141 - There’s an intent to award 3 contracts. Does that mean if you only bid on one area you won’t be selected as you have said that you won’t give any company more than 2 areas?

A. No.

48. Page 24 – Transition In says in the last sentence that transition in is not required if the successor is also the incumbent. How would this happen if all the incumbents are large businesses?

A. All FSM incumbents are not large businesses. The transition period is provided for Former contractor to transition to new contractor.

49. Page 26 – States the FSM is doing the HOA’s, Condo Fees etc. Weren’t those tasks just made a part of the AM contracts in the Atlanta HOC? Who is doing those tasks?

A. The Contractor is only responsible for those fees when a property is NOT assigned to Asset Manager as stated in the PWS.

50. Page 153-154 - States CO will conduct a responsibility determination that will demonstrate the prospective contractors capability, tenacity and perseverance to perform the contract. Please explain, FAR 9.104-3 is clear but does not follow some of the RFP instructions. If there is no past performance or past experience included in the proposals, where will the CO even start with this, especially as it pertains to "tenacity and perseverance to perform the contract?

A. See Section M.2

51. M.2 EVALUATION CRITERIA (p.154) states that in accordance with FAR 15.101-2(b)(1), the Contracting Officer has determined that Past Performance will not be considered as a specific evaluation factor under this solicitation. However, the Contracting Officer may consider Past Performance in making a responsibility determination in accordance with FAR Part 9.

a. If there is no requirement to submit Past Performance information then how will the Contracting Officer make any determination regarding capabilities and likelihood of success, if awarded?

A. See Attachment 12 of the solicitation for responsibility determination requirements and the information that is required to be submitted with the proposal. Also, see Sections L and M of the solicitation.

52. Annual Audited Financial (pgs. 69-70) - 90day to present audited FS This section is in conflict with Sec. C 6 (p. 71) & F.5 (p. 78) - 120 days. Which is the correct timeline for receipt of audited financial statement?

A. 90 days

53. Contact Clauses 52.228-16 Performance & Payment Bond: (b) The Contractor shall furnish a performance bond (Standard Form 1418) for the protection of the Government in an amount equal to 50 percent of the original contract price and a payment bond (Standard Form 1416) in an amount equal to 50 percent of the original contract price.? (pgs. 109 & 110). It says 50 percent of contract price on Page 110 instead of 500K as stated in Sec. 1.3-Constraints (p. 20). Is there a conflict?

A. See FAR Clause 52.228-16. The Contractor shall furnish a performance bond (Standard Form 1418) for the protection of the Government in an amount equal to 50 percent of the original contract price and a payment bond (Standard Form 1416) in an amount equal to 50 percent of the original contract price. For indefinite-quantity contracts, "Original contract price" means the price payable for the specified minimum quantity which is $1,000,000 per HUDAR Clause 2452.216-76. Therefore, the requirement is a performance and payment bond of $500,000 each.

54. Part II - Business Proposal - Price (p. 151) If the offeror proposes annual cost of living increases, the offeror must support the proposed increases with historical and relevant market index information. Can HUD provide an example of market index info?

A. The Bureau of Labor Statistics (BLS) Employment Cost Index would be an example of a market index used for labor escalation on service contracts.

55. 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. 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.

b. 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.

56. 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 preparation and submission of a proposal is a business decision of the offeror.

57. 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?

A. See amendment 2 to the solicitation.

58. 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. Yes, 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).

59. 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.

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

A. Daily

61. 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.

62. 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 per day penalty is not punitive. The calculation is a reasonable forecast of the daily cost to the Agency caused by contractor’s untimely performance.

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

A. Yes

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

A. Yes.

65. 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. The date of assignment to the new contractor

66. 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 5.2.6 Custodial Properties

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

CLIN 0001?

A. Yes

68. Ad Hoc Reports - C5.3 (p. 67) Contractor may be asked to prepare reports on HUD properties after a natural disaster. Would HUD pay for reports and/or inspections necessitated by natural disaster?

A. No, this is not considered an additional service and is included in performance of the requirements of the PWS.

69. Page 155 Key Personnel, how can you demonstrate relevant experience and ability to recruit and retain high performing individuals without naming individuals, including their resumes, and past performance/past experience. OR, do we include names, resumes, past performance/past experience?

A. Offerors are instructed to redact employee names only as part of their proposal response to Volume I-Technical Proposal. Past performance/past experience are not evaluation factors under the solicitation. Past performance/past experience may be considered as part of the responsibility determination. Any past performance/past experience information provided as part of Volume II-Business Proposal will be unredacted.

70. What is the damage on a late HPIR? There is no mechanism defined in the Solicitation, but the PRS states there are liquidated damages.

Incentives/disincentives will be removed from the PRS. Liquidated damages will remain for initial services (CLIN 0004 and corresponding Option Year CLINs) and On-Going Property

Management fees (CLINs 0005, 0006, and 0007 and corresponding Option Year CLINs). There are no liquidated damages specified for the HPIR (CLINs 0002 and 0003 and corresponding Option Year

CLINs).

71. Section C, 6, Deliverables -- This table does not match the language located in other areas of the PWS-- Corrections are needed. Quality Control Review Report should say "Monthly by the tenth day, following month of activity". Annual Audited Financial Statement is due 90 calendar days before expiration of base year in Section 5.3, Required Reports, and on this table it says it is due 120 calendar days before expiration of base year. Office setup states you have 10 business days to set up office on page 25 of the Atlanta HOC PWS and on the table it says 10 calendar days.

A. See Amendment 2 to the solicitation

72. Section C, Rental Property Management (P 48 of Atlanta HOC draft) states when HUD-owned properties are tenant occupied, Contractor shall provide rental management services including, but not limited to, preparing and executing lease agreements. Do HUD provided systems support Contractor’s execution of all required rental property management services?

A. No.

73. Volume of Assets. Are the volumes of assets presented in the CLINs pricing attachments accurate representations of the average volume of assets HUD’s FSM is currently responsible to maintain in each of the respective contract areas?

A. Yes, see Amendment 2 to the solicitation.

74. Historical Summary of Asset Volumes. Will HUD furnish an historical summary from the previous two or three years with a breakdown giving the average number of tasks in each CLIN that were assigned to the current FSMs in each of the contract areas?

A. No.

75. “Can an electronic version of our proposal be submitted to meet the 1/4/2017 deadline with hard copy and CD copies to follow?”

A. No

76. Can a statement that Representations and Certifications are complete and current in our ORCA section of SAM be included rather than having to duplicate the pages of Section K to be included in a hard copy proposal?”

A. See Clauses 52.204-7 and 52.204-8. Offerors are required to complete their Representations and Certification electronically through SAM.

77. On a custodial property does HUD pay for the clean-up? Please define Limited Expectations?

A. Please refer to Section 5.2.6, Custodial Properties.

78. Request Clarification on the Electrical testing as per? Will the contractor be required to electrical back feed in instances where utilities are off?

A. 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 electrical system.

79. The current total of properties wherein utilities are active now in AO? Can you break it out by area?

A. HUD does not have an accurate count of properties with active utilities.

80. Are the required timelines from property onboarding or when the date the property is assigned to the contractor? Will HUD issue the ongoing maintenance order twice a month or will the contractor be responsible for the schedule?

A. Timelines are based on assignment to the contractor, and the contractor is responsible for meeting the scheduled timelines to include promotion to 1C.

81. Is there a requirement that the contractor operate from a commercial zoned location?

A. Refer to PWS, section 4.1, Facilities.

82. Has HUD built in the anticipation of further default asset sales into their proposal numbers. If not can you clarify how future sales could affect asset numbers?

A. No, and HUD cannot accurately predict the number of future asset sales.

83. What is the current HOA volume by state and the expense to maintain?

A. HUD does not have an accurate count of HOA volume.

84. HUD will not reimburse for utility expense. What is the current expense by state?

A. HUD does not have an accurate count of utility expenses per state.

85. Why are grass cuts, tree/bush trimming and foliage excluded from the initial debris amount of 10 cubic yards in spite of them resulting from mortgagee neglect?

A. The agency has determined that grass cuts, tree/bush trimming and foliage are excluded from initial debris.

86. Will grass cuts, tree/bush trimming and foliage also be excluded from the 10 cubic yards for custodial properties, which are more likely to be assigned overgrown?

A. Yes, see Section 5.2.6 Custodial Properties

87. How will FSMs be compensated for damages resulting from invalid “Not Ready to Show” work orders mistakenly issued by an Asset Manager?

A. Work orders issued by the Asset Manager are required to be substantiated by photographic evidence and are reviewed by the AM GTR for correctness before being sent to the FSM. Any disputes will be resolved by the Contracting Officer.

88. Will the missed/late inspection penalty be adjusted/capped to match (as opposed to exceed) an awardee’s inspection fee?

A. No

89. Why is the health and safety cost-limitation dependent on an offeror’s pricing versus being fixed so as to be uniform amongst all FSMs?

A. The Contractor’s cost may vary from area to area. The cost limitation is intended to protect the Contractor from unlimited cost risk and should be proportionate to the cost per area.

90. Will the assessment period begin at the beginning or the end of the 4th month?

A. The assessment period will begin approximately 120 calendar days after the contract period of performance start date and last through the entire time period the Contractor performs the duties as listed under this contract. See Section 1.2, Asset Assignments and Performance.

91. Will the assessment period begin 4 months after the beginning of the contract period or 4 months after the first new acquisition is assigned to the FSM (versus transition properties)?

A. See question 93 above.

92. Concerning utilities, do “all associate fees” include base water fees assessed even when water is off and the property is vacant?

A. Yes

93. Concerning utilities, do “all associate fees” include base sewer fees assessed even when water is off and the property is vacant?

A. Yes

94. Concerning utilities, do “all associate fees” include base storm-water fees assessed even when water is off and the property is vacant?

A. Yes

95. Is the 5% disincentive assessed in addition to the daily damages?

A. Incentives/disincentives will be removed from the PRS.

96. Section B, Initial Services (pg. 11 of 155 Atlanta HOC draft) states "Verifiable debris, refuse or personal property (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..." -- Can you define "verifiable"? We are concerned that this is decided at the whim of the GTR rather than in clear and structured manner.

A. Documentation shall include date stamped photos. Verifiable refers to documentation such as descriptions, dump fees, pictures of the debris both in the house and in the vehicle used to transport the debris.

97. Section B, Contractors Limitation on Cost for Health & Safety Repairs -- Is this limit for the life of the property in inventory? Given that the limitation is a mathematical calculation and Health & Safety Hazards are defined in the contract -- what would prevent a GTR from approving this pass-through?

A. Yes, the limit is for the life of the property in inventory. The contractor may submit costs that exceed the calculated Health and Safety cost limitation as a valid pass-through expense upon GTR approval.

98. 5.2.2.3 Initial Clean-out Services, Prevent Further Moisture Damage:

a. Would this be limited to repair of gutters and/or adding gutter extensions?

A. No, the FSM is responsible for preserving and protecting the property. Most costs are attributable to the FSM; special circumstances may be requested of the GTR on a case-by-case basis.

b. Would the FSM be expected to perform grade work at the property to correct drainage issues?

A. This would be a GTR determination depending on the severity and frequency of the situation.

c. If grade work is required, would this be a Pass-Through Expense that would be charged back to the lender, if the lender did nothing to correct prior to conveyance?

A. The Contractor should consult with the GTR and Contracting Officer.

d. Would FSM be expected to perform more extensive repairs to areas in and around basement or crawlspace walls (e.g. perimeter drains, dry-lok, sump pumps, dehumidifiers) at FSM’s expense, or would these be Pass-Through Expenses?

A. Contractor shall take appropriate measures to prevent moisture damage. If situation is extraordinary or unusual, the Contractor should consult with the GTR and Contracting Officer.

e. If roof repairs are necessary to preserve and protect a property from moisture damage due to an active leak, would FSM be expected to cover the cost of repair or is this a Pass-Through Expense?

A. Contractor’s will be responsible for the cost of any necessary roof repairs up to the health and safety cap specified in Section B of the solicitation.

f. Is there a monetary limit that HUD would expect an FSM to cover before a roof repair would be considered for reimbursement?

A. There is no monetary limit. This would be a GTR determination depending on the severity and frequency of the situation.

99. Section C, Vandalism (pg. 47 of 155 Atlanta HOC draft) states "....and (3) repair any health or safety hazard. These repairs will be completed at the Contractors expense immediately at the time they are discovered." If the Contractor has exceeded the limitation on Cost for Health & Safety Repairs, will the Contractor be reimbursed for the costs related to Health & Safety Repairs due to Vandalism?

A. The Contractor should consult with the GTR and Contracting Officer.

100. Section C, 5.2.2.3, Initial Clean out Services, Repair Broken Windows and Doors states "...All doors and the first four (4) broken or missing windows will be repaired/replaced as a Contractor Expense. The contractor shall be allowed to submit a Pass Through Expense for all windows exceeding four (4) if accompanied with GTR approval. Pass through expenses will only be allowed on damages discovered at initial inspection." This pass-through seems very clear on the requirements except for the "if accompanied with GTR approval" which suggests such approval may be withheld. Under what circumstances would approval not be granted?

A. Absent negligence on the part of the FSM Contractor, HUD will reimburse as a valid pass through expense the cost of repairing/replacing more than four (4) windows as part of the initial services.

101. Attachment 5, Allowable Pass Through Expenses, PWS 4.4, Missing Appliances states that "the actual cost of repair or replacement of appliances damaged or stolen after contract acceptance will be reimbursed in accordance with the schedule in the contract without GTR approval." We are unable to locate a schedule with this information. Can you please provide?

A. Refer to section 4.4 of the PWS. See amendment 2 for Attachment 5 revision.

102. Attachment 5, Allowable Pass Through Expenses. If it is necessary to have a meter installed or turned on, would this be reimbursable as a Pass Through Expense?

A. Consult with the GTR and Contracting Officer.

103. Section B.2, Pricing Tables, -- in each area the Estimated Quantities for CLIN 003 Vacant Lot has the same volume as the HUD-Owned Vacant Properties which seems high. Further, CLIN 007, Ongoing PM Fee, Vacant Lot has a substantially lower quantity than CLIN 003. Would you review the quantities for CLIN 003 and revise if needed?

A. See Amendment 2 to the solicitation

104. Section C, Assignment of Assets (P 18 of Atlanta HOC draft) states HUD assigns via P260, which can occur after business hours, so contractors are reminded to continuously monitor their active inventory. Does P260 send the contractor a real time notification (e.g. email/text), or does Contractor have to login to P260 periodically 24x7x365 to get this information?

A. Contractors have to login to P260 to be notified of assignments.

105. Section C, Government Services (P 38 of Atlanta HOC draft) states the Government will provide information systems (P260, SAMS, FHA Connection, or SFIS). What integrations are supported in these systems that allow the Contractor to automate the exchange of data to their systems in support of executing the services required?

A. Integration is not guaranteed. If the Contractor is interested in system’s integration, the

Contractor would consult with HUD’s P260 vendor.

106. Section C, Work Order Notifications (P 45 of Atlanta HOC draft) states the P260 Work Order Notification modular shall be used between the MM contractors, HUD GTRs and Portal users to communicate property issues. Who (what roles) does HUD define as Portal users?

A. Portal users are generally subcontractors, appraisers and others who are allowed limited capability to upload information via the p260 Portal.

107. How will Contractor be paid on transition properties? Are they paid as new properties or are they paid as an ongoing property management fee?

A. Ongoing property management fee

108. Key Personnel. Given the volume of assets and related necessary staffing to oversee, one experienced individual could have the capacity to serve both of the awarded contracts from an office located within the Atlanta HOC. With GTR approval, would HUD allow one person to be assigned as Contract Manager, for example, to serve two areas?

A. No, see Section 4.5 of the PWS.

109. QC Manager. Is it acceptable to propose a sub-contracted third-party QC firm with the QC Manager as an employee of that firm?

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.

110. Retention of Files. Is the contractor required to generate and store paper files? If so, after properties sell and close, does HUD allow the contractor to package and ship paper files into HUD’s possession as soon as possible? If not, how long is the contractor required to retain paper files in its possession? Is file shipping reimbursable as a 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. Destruction of files is considered a pass-through expense.

111. HOA, Etc. Fees. Please describe what types of properties are not assigned to AMs within 30 days of HUD’s acquisition. The FSM must have staff to determine if there are HOA, tax, or other expenses that the FSM is required to pay. What is the historical average number of assets per contract area that have not been assigned for longer than 30 days to an AM contractor? Will HUD provide an estimate or historical summary of the amount of funds this situation requires from the FSM per contract area?

A. HUD does not have this historical data.

112. Page 48 – States billing must be submitted within 60 days and must have minimum of 25 line items. If you make one mistake will nothing be paid? When/if inventory is slow that could be to long to wait and submit and get paid. Respectfully requesting that this be changed. The wording needs to be small business friendly.

A. Transmittals must be 100% accurate and complete for payment.

113. Page 55 – States to “give your professional opinion” but does not say where to put it or who to direct to.

A. Communication is to be uploaded into p260. In addition, the Contractor can send critical documents directly to the GTR or Contracting Officer via email.

114. Page 58-59 – Aren’t the utilities a part of the new AM contracts out of the ATL HOC? Could we get a list of current volume of properties with utilities activated and expenses thereof to date?

A. No

115. Page 59 – States that contractor can only pass through liens if put on property “before” it was received. Liens could be put on after and not be the fault of the contractor. Why is this not a pass through?

A. Contractor will have to provide evidence to the GTR and Contracting Officer that lien occurred before conveyance or that lien is not contractor’s fault.

116. Page 61- Vacant lots – doesn’t really provide much information. What is the work, timelines, documents, etc.?

A. A vacant lot is required to be maintained in Ready to Show condition, and the FSM has the same processing timelines as routine HUD Vacant properties.

117. Page 62-63 – LBP mentioned with and without LEC being mentioned throughout the RFP.

Please define the work order that is to be followed.

A. PWS Section 5.2.4 outlines HUD’s LBP requirements, and the FSM is to develop methods and processes to comply with the requirements.

118. Page 66-67 – States contractor shall not pay fees on Custodial’ s. Just wanted to make sure this was correct.

A. The Contractor shall not be responsible for payment of ground rents, fees, condominium or homeowner’s association (HOA) dues or special assessments

119. Page 56 – Please clarify precisely how HUD requires the electrical testing of its properties. The HPIR Part III requires an inspection of both major appliances and the electrical system, but does not specify how the tests are to be conducted.

B. 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 electrical system.

120. Current HOA volume count and expenses thereof to date.

a. When the contract doesn’t specify Business/Calendar…