IES RFP DU205NC-12-R-0007.doc

1 THIS CONTRACT IS A RATED ORDER UNDER DPAS (15 CFR 700)

RATING

PAGE OF PAGES

SOLICITATION, OFFER AND AWARD

1 I 61

UISITIONIPURCHASE NUMBER

2. CONTRACT NUMBER

3 SOLICITATION NUMBER

DU205NC-12-R-0007

4 TYPE OF SOLICITATION

SEALED BID (IFB) E NEGOTIATED (RFP)

5. DATE ISSUED

07/27/2012

6. RE

7 ISSUED BY CODE INFNC

US DEPARTMENT OF HUD

OFFICE OF THE CHIEF PROCUREMENT OFFICER

METCALFE FEDERAL BUILDING

77 WEST JACKSON BLVD ROOM 2517 CHICAGO IL 60604-3507

8. ADDRESS OFFER TO (II other than Item 7) Mona Collins Contract Specialist 77 West Jackson Boulevard, Room 25 17 Chicago, Illinois 60604-3507

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

SOLICITATION

All offers are subject to all terms and conditions contained in this solicitation.

C. E-MAIL ADDRESS

depository located in CHICAGO CAUTION LATE Submissions, Modifications, and VVIthdrawals See Section L, Provision No. 52.214-7 or 52.215-1

INFORMATION

10. FOR poo, CALL:

A NAME

B TELEPHONE (NO COLLECT CALLS)

AREA CODE

NUMBER

913-8506

EXT.

mona.k.collins@hud.gov Mona K. Collins

11. TABLE OF CONTENTS

PART I - THE SCHEDULE

PART II CONTRACT CLAUSES

IZI

A

SOLICITATION/CONTRACT FORM

fIg I CONTRACT CLAUSES 15

IN

B

SUPPLIES OR SERVICES AND PRICES/COSTS

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH

IZI

C

DESCRIPTION/SPECS NVORK STATEMENT

III J LIST OF ATTACHMENTS 25

IN

D

PACKAGING AND MARKING

PART IV - REPRESENTATIONS AND INSTRUCTIONS

IN

E

INSPECTION AND ACCEPTANCE

El K

REPRESENTATIONS, CERTIFICATIONS AND OTHER STATEMENTS OF OFFERORS

IN

F

DELIVERIES OR PERFORMANCE

G

CONTRACT ADMINISTRATION DATA

[N L

INSTRS . CONDS , AND NOTICES TO OFFERORS

El H

SPECIAL CONTRACT REQUIREMENTS

(11 M

EVALUATION FACTORS FOR AWARD

OFFER (Must be fully comple ed by offeror) NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

12. In compliance with the above, the undersigned agrees, If this offer is accepted within calendar days (60 calendar days unless a different period is inserted by the offeror) from the date for receipt of offers specified above to furnish any or all items upon which prices are offered at the price set opposite each Item, delivered at the designated point(s) within the time specified in the schedule 13 DISCOUNT FOR PROMPT PAYMENT (See Section 1, Clause No 52 232 8)

10 CALENDAR DAYS (%)

20 CALENDAR DAYS (%)

30 CALENDAR DAYS (%)

CALENDAR DAYS (%)

14 ACKNOWLEDGEMENT OF AMENDMENTS (Me offeror acknowledges receipt of amendments to the SOLICITATION for offerors and related documents numbered and dated).

AMENDMENT NO

DATE

AMENDMENT NO

DATE

15A NAME

AND

ADDRESS OF

OFFEROR

CODE

FACILITY

16 NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER (Type or print)

158 TELEPHONE NUMBER

15C CHECK IF REMITTANCE ADDRESS ( IS DIFFERENT FROM ABOVE ENTER

SUCH ADDRESS IN SCHEDULE

17 SIGNATURE

18 OFFER DATE

AREA CODE

NUMBER

EXT

AWARD (To be completed by gove nmenl)

19 ACCEPTED AS TO ITEMS NUMBERED

20 AMOUNT

21 ACCOUNTING AND APPROPRIATION

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION:

El 10 U.S.C. 2304 (c) ( ) . 41 U.S.C. 253 (c) ( 23 SUBMIT INVOICES TO ADDRESS SHOWN IN (4 copies unless otherwise specified)

ITEM

24. ADMINISTERED BY (If other than Item 7)

CODE I

25 PAYMENT WILL BE MADE BY

CODE

26. NAME OF CONTRACTING OFFICER (Type or pnnt) Gene H. Jackson

27 UNITED STATES OF AMERICA

28 AWARD DATE

07/31/2012

-.-4::1- (Signature of Contracting Officer)

IMPORTANT • Award will be made on this Form or on Sland•d Form 26, or by other authorized official written notice

Sponsored by GSA

FAR (48 CFR) 53 110

CONTINUATION SHEET

REFERENCE NO. OF DOCUMENT BEING CONTINUED

DU205NC-12-R-0007

NAME OF OFFEROR OR CONTRACTOR

ITEM NO.

(A)

SUPPLIES/SERVICES

(B)

QUANTITY

(C)

JNIT

(D)

UNIT PRICE

(E)

AMOUNT

(F)

Provide Insurance Endorsement Processing Services on an as needed basis in support of the

Philadelphia Homeownership Center, Single Family, Processing and Underwriting Division.

IES (Year 1).

150000

EA

IES (Year 2) 165000

IES (Year 3) 172000

IES (Year4) 180000

Contents

SECTION

C ‑ Description/Specifications/Performance Work Statement

SECTION

D

- Packaging and Marking

SECTION

D

- Packaging and Marking

SECTION

E

- Inspection and Acceptance

SECTION

F

- Deliveries or Performance

SECTION

G

- Contract Administration Data

SECTION

I

- Contract Clauses

SECTION

J ‑ List of Documents, Exhibits and Other Attachments

SECTION

L

- Instructions, Conditions, and Notices to Bidders

SECTION

M

- Evaluation Factors for Award

SECTION B - Supplies or Services/Prices

B.1 SERVICES

The Contractor must provide Insurance Endorsement Processing Services on an as-needed basis for the U.S. Department of Housing and Urban Development (DHUD), Philadelphia Homeownership Center (HOC), Single Family, Processing and Underwriting Division (PUD).

B.2 2452.219-72 SECTION 8(a) DIRECT AWARD (DEVIATION) (MAR 2010)

(a) This contract is issued as a direct award between the Department of Housing and Urban Development (HUD) and the 8(a) Contractor pursuant to a Partnership Agreement (Agreement) between the Small Business Administration (SBA) and HUD. SBA retains responsibility for 8(a) certification, 8(a) eligibility determinations and related issues, and providing counseling and assistance to the 8(a) Contractor under the 8(a) program. The cognizant SBA district office is:

[To be completed by contracting officer at time of award]

(a) SBA is the prime Contractor and [insert name of 8(a) contactor] is the subcontractor under this contract. Under the terms of the Agreement, HUD is responsible for administering the contract and taking any action on behalf of the Government under the terms and conditions of the contract. However, the HUD contracting officer shall give advance notice to the SBA before issuing a final notice terminating performance, either in whole or in part, under the contract. The HUD contracting officer shall also coordinate with SBA prior to processing any novation agreement. HUD may assign contract administration functions to a contract administration office.

(a) [insert name of 8(a) Contractor] agrees:

(I) To notify the HUD contracting officer, simultaneously with its notification to SBA (as required by SBA's 8(a) regulations), when the owner or owners upon whom 8(a) eligibility is based plan to relinquish ownership or control of the concern. Consistent with 15 U.S.C. 637(a)(21), transfer of ownership or control shall result in termination of the contract for convenience, unless SBA waives the requirement for termination prior to the actual relinquishing of ownership or control.

(2) To adhere to the requirements of FAR 52.219-14, Limitations on Subcontracting.

B.3 PRICE SCHEDULE

As total complete compensation for all services performed in accordance with tasks order issued hereunder, the Contractor will be paid according to the Contract Line Item Number (CLIN), the fixed unit price listed below:

INSURANCE ENDORSEMENTS

Contract Line Item Number

(CLIN)

Estimated Maximum Per Year Unit Insurance Endorsements Unit Price Estimated Total CLIN Price

CLIN 0001

(Year One Contract Period —effective date of the contract, to one year thereafter.)

100,000

EA.

CLIN 1001

(Year Two Contract Period — effective date of the contract, to two years thereafter) 110,000

EA

CLIN 2001

(Year Three Contract Period — effective date of the contract, to three years thereafter) 115,000

EA.

CLIN 3001

(Year 4 Contract Period - effective date of the contract, to four years thereafter) 120,000

EA.

Total Estimated Contract Value:

SECTION C - Description/Specifications/Performance Work Statement

C.1 GEOGRAPHIC AREAS

The Philadelphia HOC has jurisdiction over the following states and areas: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia.

C.2 ABBREVIATIONS, DEFINITIONS AND APPLICABLE DOCUMENTS/PUBLICATIONS

ABBREVIATIONS

ADP - Automated Data Processing ARM - Adjustable Rate Mortgage AUS - Automated Underwriting System CHUMS - Computerized Homes Underwriting Management System CONST/PERM - A construction-permanent mortgage program DE - Direct Endorsement FHAC - Federal Housing Administration Connection (FHA computerized system) GTM - Government Technical Monitor GTR - Government Technical Representative HECM - Home Equity Conversion Mortgage HOC — Philadelphia Homeownership Center currently located at 100 Penn Square East, The Wanamaker Building, Philadelphia, PA 19107 HUD U.S. Department of Housing and Urban Development. The terms "U. S. Department of Housing and Urban Development," "HUD," "Seller," and "Government" are synonymous, and may be used interchangeably MAR - Master Appraisal Report MCC - Master Conditional Commitment MIC - Mortgage Insurance Certificate MIP - Mortgage Insurance Premium NOR - Notice of Rejection may be used interchangeably with non-endorsement REO - Real Estate Owned URAR - Uniform Residential Appraisal Report URLA - Uniform Residential Loan Application

VA-CRV - Veterans Administration Commitment of Reasonable Value VA-MCRV - Veterans Administration Master Commitment of Reasonable Value VOD - Verification of Deposit VOE - Verification of Employment

DEFINITIONS

203(h) - A single family program within HUD for victims of Presidential-Declared major disasters. 203(k) - A single family program for the rehabilitation and repair of single-family properties.

Case File - May be used interchangeably with "file," "loan package," "case," or "binder," and refers to the entire underwriting package of documents on closed loans submitted by the mortgagees to the HOC for the issuance of a MIC.

Contract - A written mutually binding legal relationship obligating the seller to furnish the supplies or services and the buyer to pay for them.

Contracting Officer - A person with the authority to enter into, administer, and/or terminate contracts and make related determinations and findings.

Contractor - The individual, partnership, corporation, or other entity, which is the party subject to the terms and conditions of this contract.

Day - A calendar day, unless otherwise specified.

Key Personnel - Personnel specifically considered to be essential to the work being performed under this contract, pursuant to HUDAR 2452.237-70, Key Personnel.

References - Refers to all FHA/HUD Handbooks, Mortgagee Letters, Notices, Circular Letters, Local and National HOC Reference Guides. Contractor may view, order or secure all of the required references and forms through the Internet at www.hudclips.org. It is the Contractor's responsibility to obtain all references and to be knowledgeable of all current requirements.

C.3 GOVERNMENT FURNISHED ITEMS

achieved. In the event that the Contractor is unable to acquire the necessary skills to perform the requirements under the contract following the maximum eight hours of training, the Contractor may be subject to formal contract action, such as termination. HUD will not reimburse the Contractor for any expenses incurred for this training.

C.4 CONTRACTOR FURNISHED ITEMS AND SERVICES

C.5 DESCRIPTION OF SERVICES A. GENERAL TASK(S)

I. The Contractor shall provide mortgage insurance endorsement processing services for the U.S. Department of Housing and Urban Development (HUD) Philadelphia Homeownership Center (HOC). The Contractor shall provide ongoing training of its employees. The GTR reserves the right to review the Contractor's training plan and the Personal Identification Verification (PIV) throughout the duration of the contract. Services to be performed by the Contractor will be ordered by assignment of case files by the HOC. The Contractor and its representatives shall attend all meetings requested by the GTR or Contracting Officer orally or in writing.

The Contractor shall perform the required work and data entry functions on-site at the HOC. Completed cases and data review shall be entered into CHUMS/FHAC within two business days of the case assignment. The Contractor shall scan case binders in TransAccess to the locations designated by the GTR/GTM. CHUMS/FHAC will be provided for the Contractor's use during the hours of 6:00 a.m. to 7:00 p.m., excluding federal holidays and authorized closures pursuant to HUDAR clause 2452.237-77, Observance of Legal Holidays and Administrative Leave. The Contractor is authorized to work on weekends if requested by the GTR or Contracting Officer. If there are unusually heavy assignments, the GTR and CO will not authorize the Contractor to work weekends to "catch up" when falling behind on normal workload assignments. Every effort will be made for equipment and CHUMS/FHAC availability and for technical assistance from HUD staff during core business hours of 8:00 a.m. to 4:30 p.m. Should a computer system interruption occur in excess of two consecutive hours in any business day, delivery times will be accommodated by mutual consent between the Contractor and the GTR and Contracting Officer.

3. The Contractor shall maintain updated knowledge of FHA Single Family programs for which it issues MIC's and shall also maintain updated knowledge of FHA programs through Handbooks, Mortgagee Letters, and HUD Notices that are posted on HUD's Internet Web page or the Philadelphia HOC's Internet Web page, including, but not limited to, the most current editions of the following HUD Handbooks:

- 4165.1, Endorsement for Insurance for Home Mortgage Programs (Single Family)

- 4155.1, Mortgage Credit Analysis for Mortgage Insurance on One to Four Family Properties - 4000.2, Mortgagees' Handbook, Application through Insurance (Single Family)

- 4150.2, Valuation Analysis for Single Family One-to Four Unit Dwellings

- 4145.1, Architectural Processing and Inspections for Home Mortgage Insurance - 4235.1, Home Equity Conversion Mortgages

- 4240.4, 203K, Rehabilitation Home Mortgage Insurance

4. Mortgagee Letters, other instructional letters and notices, desk guides and specific instruction notices are also referenced that shall be utilized by the Contractor. The HOC will issue formal guidance and changes to meet new or changing program requirements related to the insuring/endorsement process. The Contractor shall maintain an updated knowledge of this formal guidance and changes throughout the duration of this contract.

B. SPECIFIC TASK(S)

I. Reviewing FHA Case Binders The Contractor shall determine whether files submitted for insurance endorsement are in compliance with HUD requirements as follows:

-FHA Case Binder — Documentation Order (Section J, Attachment I) -The Revised FHA Case Binder for Home Equity Conversion Mortgages (Section J, Attachments II) - HECM Pre-Endorsement Review Checklist (Section J, Attachment IX)

- Pre-Endorsement Review Checklist (Section J, Attachment X) NOTE: The Contractor shall not alter the checklists in any manner. The checklists and other instructions may be revised and updated by HUD to comply with changing requirements. The checklists specify the degree of review required for each item to determine if the file shall be approved or rejected.

a. The Contractor shall review all information on the following screens against the appropriate source documents.

- CHUMS 9/00 Auxiliary Sc, een (Purchases) (Section J, Attachment 111)

- CHUMS 9100 Auxiliary Screen (Refinanced Only) (Section J, Attachment IV)

- CHUMS Mortgage Insurance Certificate (9100) Screen (Section J, Attachment V)

- CHUMS DE HECM Auxiliary Screen (Section J, Attachment VI)

- CHUMS Mortgage Insurance Certificate (HECM) Screen (Section J, Attachment VII) - FHAC Insurance Application Screen (Section .4, Attachment XI — XIV)

- FHAC HECM Insurance Application Screen (Section J, Attachment XV) NOTE: FHAC/Lender printouts or HUD-5411I shall not be used to verify data accuracy

e The case file shall be stamped by the Contractor as endorsed and shall be clearly marked "Special Program", (i.e., 203(k), HECM, CONST/PERM, or 203(h)).

The Contractor shall review the case file in its entirety to ascertain all reasons for rejections per the HECM Pre-Endorsement Review Checklist or the Pre-Endorsement Review Checklist (Non-HECM files) (Section J, Attachments IX and X), and a Non-Endorsement Notice/Notice of Rejection (NOR) shall be issued.

k. All reasons for the non-endorsement shall be clearly and concisely noted on the NOR.

I. The NOR and all applicable forms shall be fastened to the outside of the file and the file shall be returned to a designated area.

in. If a principal reduction is required, the mortgage amount on the note and other loan documents will not match data reflected in CHUMS/FHAC. The Contractor shall review the payment history to verify that the reduction was applied to the principal of the loan, and shall annotate the case warning screen in CHUMS/FHAC "Principal reduction of (applicable amount)".

n. The Contractor shall scan all case binders in TransAccess to the locations designated by the GTR/GTM.

3. HECM CASES

The Contractor shall:

11. Issue a NOR, fasten the NOR on the outside of the binder, and place the binder in the designated area as directed by the GTR if the file does not comply with endorsement requirements.

4. Miscellaneous

5. Corrections The Contractor shall correct inadequate or incorrect endorsements made by the Contractor at no additional expense to the government. Corrections may be requested by the GTR or GTM as a result of a quality assurance review. The Contractor shall review the errors and complete corrections within two business days of receipt and provide a status report If a correction is unable to be processed, it shall be returned to the GTR with an explanation for further action. The HOC will require certain files and/or error/processing messages to be resolved by HUD staff. The Contractor will be instructed on the disposition and routing of these files by the GTR/GTM. These may include, but are not limited to: case warning messages, pre-processing reject codes, and pre-closing files. All case warning messages and pre-processing reject codes are to be given to the designated HUD staff person prior to insuring. Case warning forms must indicate what the warning is and must be attached to the binder before being returned to the GTR. For closing packages submitted for pre-closing test cases, the original firm commitment binder must be pulled from the files and the two packages combined. If there are conditions on the Firm Commitment, these conditions must be cleared by the HUD staff underwriter or supervisor prior to endorsement. If the case cannot be endorsed, one copy of

the NOR must be mailed to the Lender and one copy placed in the binder. The binder must not be returned to the Lender but must be re-filed in the designated area.

Inadequate or incorrect endorsements made by the Contractor must be corrected by the Contractor at no additional expense to the government. Corrections may be requested by lenders or by the GTR/GTM as a result of a quality assurance review. The Contractor must review the errors and complete corrections within two (2) business days of receipt and provide a status report. If a correction is unable to be processed, it must be returned to the GTR/GTM with an explanation for further action. If there are instances that errors are corrected by HUD Staff, within one (1) year of endorsement the Contractor shall repay the fee that the Contractor earned when the file was processed.

6. Deliverable All files shall be completed and placed in a designated area within two business days of assignment.

C.6 PROJECT MANAGEMENT

A. AS-1302 POST AWARD CONFERENCE

The Contractor shall be required to attend a post award conference. The conference will be held at HUD, 100 Penn Square East, The Wanamaker Building, Philadelphia, PA 19107. The Contracting Officer or designee will notify the Contractor of the date and time of the conference.

B. TECHNICAL AND MANAGEMENT WORK PLAN

The Contractor shall deliver the Final Technical and Management Work Plan to the GTR and GTM at the Post Award Conference.

C.7 QUALITY CONTROL PLAN (QCP)

I . The Quality Control Plan (QCP) that is accepted as part of the pre-award evaluation will be used throughout the duration of this contract. The areas that must be address in the quality control plan are listed below:

Reflect the Contractor's strategy for the timely processing of mortgage insurance endorsements Discuss how the Contractor shall perform a review of 10% of all work to ensure accuracy and compliance to the requirements of this contract. Contractor shall also discuss how they will report any errors and the necessary corrective action taken.

C.8 PERFORMANCE ASSESSMENT

A. The GTR or GTM will select a representative sample of the Contractor's performance for review. These reviews will be used to determine the accuracy, quality and completeness of the Contractor's reviews. The GTR

or GTM will provide monthly feedback to the Contractor based on the results of the HUD's reviews. The result of the sampled cases shall be considered to be representative of the Contractor's overall performance under the contract. HUD has established an Acceptable Performance Level (APL) for this service of 90% per month. This means, if the error rate determined through the review of the representative sample is 10% or less, the Contractor will receive full payment for the services performed for the month reviewed. If the level of acceptable performance falls below 90% for the month, then the monthly payment for that month will be reduced by the percentage of unacceptable performance; i.e., if 12% of the work is unacceptable, then payment will be reduced by 12%. All percentages will be rounded to the nearest full percentage point.

C.9 PERFORMANCE REQUIREMENTS SUMMARY

PRS#

Service Requirement Performance Standard Acceptable Quality Level Method of Surveillance l Review FHA case binders as described in C.S.B. I Contractor shall include the completed required checklist that is provided in Section J.

90% Representative sampling of complete cases by GTR on a monthly basis.

Review data for integrity Contractor shall make corrections to any incorrect information recorded in CHUMS/FHAC 90% Representative sampling of complete cases by GTR on a monthly basis.

Make corrections to identified files that have inadequate or incorrect endorsements.

Within two (2) business days from receipt of status report from GTR 90% Representative sampling of complete cases by GTR on a monthly basis.

C.I0 INVOICE REVIEW

HUD will provide the Contractor with the CHUMS report so the Contractor can use and include for submission of invoice payment. The invoices submitted by the Contractor will be reviewed against CHUMS reports and the Contractor will be paid for only those files endorsed or rejected for the first time by its staff. If a file is resubmitted or needs additional corrections, the contractor shall NOT receive a second payment. The CHUMS report will be the official supporting documentation for payment.

SECTION D - Packaging and Marking

D.1 PAYMENT OF POSTAGE AND SHIPPING COSTS

All postage and shipping costs related to the submission of information (including reports and forms) required by this contract must be paid for by the Contractor. The unit prices in Section B are inclusive of all postage, shipping and delivery charges.

D.2 MARKING

All information submitted to the Contracting Officer or Government Technical Representative (GTR)/Government Technical Monitor (GTM) shall clearly indicate the contract number for which the information is being submitted.

SECTION E - Inspection and Acceptance

E.1 52.252-2 CLAUSES INCORPORATED BY REFERENCE (FEB 1998)

This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this/these address (es):

FAR Provisions: http://www.arnet.gov/ HUDAR Provisions: http://www.hud.gov/offices/cpo/hudar.cfm

52.246-4 INSPECTION OF SERVICES—FIXED-PRICE (AUG 1996)

E.2 2452.246-70 INSPECTION AND ACCEPTANCE (FEB 2006)

Inspection and acceptance of all work required under this contract shall be performed by the Government Technical Representative (GTR) or other individual as designed by the Contracting Officer or the GTR.

SECTION F - Deliveries or Performance

SECTION G - Contract Administration Data G.1 2452.232-70 PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE) (FEB 2008) (DEVIATION)

(a) Payment Schedule. Payment of the contract price (see Section B of the contract) will be made upon completion and acceptance of all work unless a partial payment schedule is included below [Contracting Officer insert schedule information]:

I.[]

(b) Submission of Invoices

(I) Invoices shall be submitted as follows: original to the payment office identified on the award document (e.g., in Block 12 on the SF 26 or Block 25 on the SF 33, or elsewhere in the contract) with a copy to the Government Technical Representative (GTR) and a copy to the Contracting Officer. The final invoice shall not be paid prior to certification by the Contracting Officer that all work has been completed and accepted. To constitute a proper invoice, the invoice must include all items required by FAR clause 52.232 25, Prompt Payment.

SECTION H - Special Contract Requirements

H.1 ACCESS TO CONTROLLED UNCLASSIFIED INFORMATION

(a) For the sole purpose of performing work required under this contract, the contracting officer may grant the Contractor — including Contractor employees, subcontractors, and subcontractor employees — access to controlled unclassified information ("CUI").

(b) CU:

(I) Is any information which the loss, misuse, or modification of, or unauthorized access to, could adversely affect the national interest or the conduct of federal programs or the privacy to which individuals are entitled under section 552a of title 5, United States Code (the Privacy Act), but which has not been specifically authorized under criteria established by an Executive Order or an Act of Congress to be kept secret in the interest of national defense or foreign policy;

(2) Is not available to the general public;

(3) May include:

(4) May exist in various physical media (e.g., paper, electronic file, audio or video disc) or be transmitted orally, may be developed under or pre-exist any related contract, and may be in its original form or a derivative form (i.e., where the information has been included in Contractor-generated work, or where it is discernible from materials incorporating or based upon such information).

(c) As a prior condition to being provided access to any CUI, each Contractor or subcontractor employee shall execute the nondisclosure agreement in attachment J. _ [contracting officer insert attachment number] to this contract and deliver the executed agreement to the contracting officer

(d) The Contractor shall include this clause in all subcontracts.

(e)The Contractor's failure to comply with any part of this clause or with the terms of the required nondisclosure agreements may result in the termination of this contract for default.

H.2 PUBLIC COMMUNICATION

The Contractor must not represent itself as HUD to outside parties. To maintain public trust, and not to mislead the public, the Contractor must, when communicating with outside parties, explain that it is a Department Contractor. When performing work for HUD, the Contractor's personnel must be easily identifiable to the public as a HUD Contractor. Contractor personnel must be identifiable through the use of badges, corporate logos, or other distinguishable credentials.

H.3 NON-PERSONAL SERVICES

a. The Contractor and the government understand and agree that the services delivered by the Contractor to the government are non-personal services. The parties also recognize and agree that an employer-employee relationship exists, or will exist between the government and the Contractor. The Contractor and their employees are not employees of the federal government, are not eligible for entitlement and benefits given federal employees.

b. Contractor personnel under this contract must not:

I. Be placed in a position where there is an appearance that they are employed by a federal officer, or are under the direction, evaluation, and supervision of a federal officer.

and must not supervise the Contractor's staff. All direction from the government will be provided to the Contractor and any individual designed as Key Personnel according to HUDAR clause 2452.237-70, Key Personnel.

d. All technical guidance provided by the GTR will be according to HUDAR 2452.237-73, Conduct of Work and Technical Guidance.

H.4 INSURANCE COVERAGE

Pursuant to FAR clause 52.228-5 - Insurance - Work on a Government Installation, the Contractor shall be required to present evidence to show, at a minimum, the amounts of insurance coverage indicated below.

Workers Compensation and Employer's Liability - The Contractor is required to comply with applicable Federal and State workers compensation and occupational disease statutes.

Employer's liability coverage of at least $100,000 shall be required, except in States with exclusive or monopolistic funds that do not permit worker's compensation to he written by private carriers.

General Liability - The Contractor shall have bodily injury liability insurance coverage written on a comprehensive form policy of at least $500,000 per occurrence.

H.5 TRAVEL

HUD will not reimburse any travel under this contract.

H.6 CERTIFICATION REGARDING COMMON SECURITY CONFIGURATIONS FOR WINDOWS XP AND VISTA OPERATING SYSTEMS (JUNE 2007)

(a) By signing this contract, the Contractor certifies that the information technology applications it provides under this contract are fully functional and operate correctly as intended on systems using the Federal Desktop Core Configuration (FDCC). This includes Internet Explorer 7 or higher configured to operate on Windows XP and Vista (in Protected Mode on Vista). For the Windows XP settings, see:

http://csrc.nist.gov/itsec/guidance_WinXP.html and for the Windows Vista settings, see: 00d0c9ea79f9bace118c8200aa004ba90b0200000003000000e0c9ea79f9bace118c8200aa004ba90b6000000068007400740070003a002f002f0063007300720063002e006e006900730074002e0067006f0076002f00690074007300650063002f00670075006900640061006e00630065005f00760069007300740061002e00680074006d006c002e000000http://csrc.nist.gov/itsec/guidance_vista.html.

H.7 CONTRACTOR RESPONSBILITIES FOR APPLICATION PUBLICATIONS, FORMS AND HANDBOOKS

H.8 PRESERVATION OF, AND ACCESS TO, CONTRACT RECORDS (a) For the purposes of this clause--

"Contract records" means information created or maintained by the Contractor in the performance of the contract. Contract records include documents required to be retained in accordance with FAR 4.703 and other information generated or maintained by the Contractor that is pertinent to the contract and its performance including, but not limited to: email and attachments; formal and informal correspondence; calendars; notes; reports; memoranda; spreadsheets; tables; telephone logs; forms; surveys; books; papers; photographs; drawings; machine-readable materials; and data. Contract records may be maintained as electronically stored information or as tangible materials. Contract records may exist in either final or any interim version (e.g., drafts that have been circulated for official purposes and contain unique information, such as notes, edits, comments, or highlighting). Contract records may be located or stored on the Contractor's premises or at off-site locations.

"Electronically stored information (EN)" means any contract records that are stored on, or generated by, an electronic device, or contained in electronically accessible media, either owned by the Contractor, subcontractor(s), or employees of the Contractor or subContractor(s) regardless of the physical location of the device or media (e.g., offsite servers or data storage).

"ESI devices and media" include, but shall not be limited to:

(b) If during the period of performance of this contract, HUD becomes or anticipates becoming a party to any litigation concerning matters related to records maintained or generated by the Contractor in the performance of this contract, the contracting officer may provide the Contractor with a written (either hardcopy or email) preservation hold and certification of compliance with preservation hold. Upon receipt of the hold, the Contractor shall immediately take the following actions:

(c)(1) If any request for records pursuant to paragraph (b)(6) of this clause causes an increase in the estimated cost or price, or the time required for performance of any part of the work under this contract, or otherwise affects any other terms and conditions of this contract, the contracting officer shall make an equitable adjustment in any one or more of the following and will modify the contract accordingly:

(d) The Contractor shall include the terms of this clause in all subcontracts awarded under this contract.

H.9 INCENTIVES FOR PROCESSING

The government will access positive and negative incentives, when the contractor submits a proper monthly invoice to the Government Technical Representative (GTR). The GTR/Government Technical Monitor (GTM) will conduct a performance assessment (See Section C, Performance Work Statement (PWS), Section C.8, and review the Acceptable Performance Level (See Section C, Performance Work Statement (PWS) Section C.9) of the contractor in accordance with the PWS to determine if any positive or negative incentives are applicable.

The government will review insurance endorsements processed during the respective month. The contractor must deliver insurance endorsements within three business days. Starting with the 3n1 business day, if the average number of business days is a decimal number, the government will round to the next whole number.

Example I: The average number of business days for completing reviews is 2.88. The government will not round to 3 business days.

Example 2: The average number of business days for completing reviews is 3.10. The government will round to four (4) business days.

Any endorsement submitted after the 3"1 business days is late, and is subject to a negative incentive.

Any completed review after the 3rd business day is late, and subject to a timeliness negative incentive of 10% plus one ( I) percent…