SF-1449_Continuation_Sheet_-_Body.pdf

Continuation Sheet for SF-1449

Solicitation DU205NC-13-R-0001

SECTION A - Solicitation/Contract Form

52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

EXECUTIVE ORDERS - COMMERCIAL ITEMS. (JAN 2013)

SECTION B - Supplies or Services/Prices

SERVICES

FIXED PRICES FOR SERVICES – INDEFINITE QUANTITY/INDEFINITE DELIVERY CONTRACT

SECTION C - Description/Specifications

PERFORMANCE WORK STATEMENT

SECTION D - Packaging and Marking SECTION E - Inspection and Acceptance

2452.246-70 INSPECTION AND ACCEPTANCE. (FEB 2006)

SECTION F - Deliveries or Performance SECTION G - Contract Administration Data

2452.232-70 PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE). (DEC 2012)

2452.232-70 PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE). (APR 2013)

(DEVIATION)

SECTION H - Special Contract Requirements

ACCESS TO CONTROLLED UNCLASSIFIED INFORMATION

PUBLIC COMMUNICATION

NON-PERSONAL SERVICES

INSURANCE COVERAGE

CONTRACTOR RESPONSIBILITIES FOR FORMS, HANDBOOKS, AND PUBLICATIONS

INCENTIVES FOR PROCESSING

CORPORATE FILINGS

AS-1302 POSTAWARD CONFERENCE

AS-1302 *A1 POSTAWARD CONFERENCE ALTERNATE 1

SECTION I - Contract Clauses

52.203-14 DISPLAY OF HOTLINE POSTER(S). (DEC 2007)

52.216-18 ORDERING. (OCT 1995)

52.216-19 ORDER LIMITATIONS. (OCT 1995)

52.216-22 INDEFINITE QUANTITY. (OCT 1995)

52.219-18 NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(A) CONCERNS. (JUN

2003)

52.252-4 ALTERATIONS IN CONTRACT. (APR 1984)

2452.203-70 PROHIBITION AGAINST THE USE OF GOVERNMENT EMPLOYEES. (FEB 2006) 41

2452.204-70 PRESERVATION OF, AND ACCESS TO, CONTRACT RECORDS (TANGIBLE AND

ELECTRONICALLY STORED INFORMATION (ESI) FORMATS). (DEC 2012) - ALTERNATE II

(DEC 2012)

2452.208-71 REPRODUCTION OF REPORTS. (APR 1984)

2452.209-72 ORGANIZATIONAL CONFLICTS OF INTEREST. (APR 1984)

2452.216-76 MINIMUM AND MAXIMUM QUANTITIES OR AMOUNTS FOR ORDER. (DEC 2012) 45

2452.216-78 ORDERING PROCEDURES. (FEB 2006) - ALTERNATE I (FEB 2006)

2452.219-71 NOTIFICATION OF COMPETITION LIMITED TO ELIGIBLE 8(A) CONCERNS -

ALTERNATE III TO FAR 52.219-18. (DEC 2012)

2452.219-72 SECTION 8(A) DIRECT AWARDS (DEVIATION). (DEC 2012)

2452.227-70 GOVERNMENT INFORMATION. (DEC 2012)

2452.237-70 KEY PERSONNEL. (FEB 2006)

2452.237-75 ACCESS TO HUD FACILITIES. (DEC 2012)

2452.237-77 TEMPORARY CLOSURE OF HUD FACILITIES. (DEC 2012)

2452.239-70 ACCESS TO HUD SYSTEMS. (DEC 2012)

2452.239-71 INFORMATION TECHNOLOGY VIRUS SECURITY. (FEB 2006)

52.232-99 PROVIDING ACCELERATED PAYMENT TO SMALL BUSINESS SUBCONTRACTORS

(DEVIATION)

SECTION J - List of Documents, Exhibits and Other Attachments SECTION K - Representations, Certifications, and Other Statements of Bidders

52.203-2 CERTIFICATE OF INDEPENDENT PRICE DETERMINATION (APR 1985)

52.203-11 CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE

CERTAIN FEDERAL TRANSACTIONS (SEP 2007)

52.212-3 OFFEROR REPRESENTATIONS AND CERTIFICATIONS-COMMERCIAL ITEMS. (DEC

2012)

52.225-25 PROHIBITION ON CONTRACTING WITH ENTITIES ENGAGING IN CERTAIN

ACTIVITIES OR TRANSACTIONS RELATING TO IRAN – REPRESENTATION AND

CERTIFICATIONS (DEC 2012)

SECTION L - Instructions, Conditions, and Notices to Bidders

ADDENDUM TO FAR 52.212-1, INSTRUCTIONS TO OFFERORS – COMMERCIAL ITEMS (FEB

2012)

52.216-1 TYPE OF CONTRACT. (APR 1984)

52.233-2 SERVICE OF PROTEST. (SEP 2006)

2452.209-70 POTENTIAL ORGANIZATIONAL CONFLICTS OF INTEREST. (FEB 2000)

2452.233-70 REVIEW OF CONTRACTING OFFICER PROTEST DECISIONS. (FEB 2006)

AS-2112 SPECIAL INSTRUCTION REGARDING LOBBYING DISCLOSURES

SECTION M - Evaluation Factors for Award

ADDENDUM TO FAR 52.212-2, EVALUATION – COMMERCIAL ITEMS (JAN 1999)

SECTION A - Solicitation/Contract Form

52.212-5 CONTRACT TERMS AND CONDITIONS REQUIRED TO IMPLEMENT STATUTES OR

EXECUTIVE ORDERS - COMMERCIAL ITEMS. (JAN 2013)

(a) The Contractor shall comply with the following Federal Acquisition

Regulation (FAR) clauses, which are incorporated in this contract by reference, to implement provisions of law or Executive orders applicable to acquisitions of commercial items:

(1) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22 U.S.C.

7104(g)).

[ ] Alternate I (Aug 2007) of 52.222-50 (22 U.S.C. 7104(g)).

(2) 52.233-3, Protest After Award (AUG 1996) (31 U.S.C. 3553).

(3) 52.233-4, Applicable Law for Breach of Contract Claim (OCT 2004) (Pub.

L. 108-77, 108-78).

(b) The Contractor shall comply with the FAR clauses in this paragraph (b) that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items: Contracting Officer check as appropriate.

X(1) 52.203-6, Restrictions on Subcontractor Sales to the Government (SEP

2006), with Alternate I (OCT 1995) (41 U.S.C. 253g and 10 U.S.C. 2402).

X(2) 52.203-13, Contractor Code of Business Ethics and Conduct (APR

2010)(Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251 note)).

[ ](3) 52.203-15, Whistleblower Protections under the American Recovery and Reinvestment Act of 2009 (JUN 2010) (Section 1553 of Pub. L. 111-5).

(Applies to contracts funded by the American Recovery and Reinvestment Act of 2009.)

X(4) 52.204-10, Reporting Executive Compensation and First-Tier

Subcontract Awards (AUG 2012) (Pub. L. 109-282) (31 U.S.C. 6101 note).

[ ](5) 52.204-11, American Recovery and Reinvestment Act--Reporting

Requirements (JUL 2010) (Pub. L. 111-5).

X(6) 52.209-6, Protecting the Government's Interest When Subcontracting with Contractors Debarred, Suspended, or Proposed for Debarment (DEC 2010)

(31 U.S.C. 6101 note).

X(7) 52.209-9, Updates of Publicly Available Information Regarding

Responsibility Matters (FEB 2012) (41 U.S.C. 2313).

X(8) 52.209-10, Prohibition on Contracting with Inverted Domestic

Corporations (MAY 2012) (section 738 of Division C of Pub. L. 112-74, section 740 of Division C of Pub. L. 111-117, section 743 of Division D of

Pub. L. 111-8, and section 745 of Division D of Pub. L. 110-161).

[ ](9) 52.219-3, Notice of HUBZone Set-Aside or Sole-Source Award (NOV

2011) (15 U.S.C. 657a).

[ ](10) 52.219-4, Notice of Price Evaluation Preference for HUBZone Small

Business Concerns (JAN 2011) (if the offeror elects to waive the preference, it shall so indicate in its offer) (15 U.S.C. 657a).

[ ](11) (Reserved)

[ ](12)(i) 52.219-6, Notice of Total Small Business Set-Aside (NOV 2011)

(15 U.S.C. 644).

[ ](ii) Alternate I (NOV 2011).

[ ](iii) Alternate II (NOV 2011).

[ ](13)(i) 52.219-7, Notice of Partial Small Business Set-Aside (JUN 2003)

(15 U.S.C. 644).

[ ](ii) Alternate I (OCT 1995) of 52.219-7.

[ ] (iii) Alternate II (MAR 2004) of 52.219-7.

X(14) 52.219-8, Utilization of Small Business Concerns (JAN 2011) (15

U.S.C. 637 (d)(2) and (3)).

[ ](15)(i) 52.219-9, Small Business Subcontracting Plan (JAN 2011) (15

U.S.C. 637(d)(4).

[ ](ii) Alternate I (OCT 2001) of 52.219-9.

[ ](iii) Alternate II (OCT 2001) of 52.219-9.

[ ](iv) Alternate III (JUL 2010) of 52.219-9.

[ ](16) 52.219-13, Notice of Set-Aside of Orders (NOV 2011) (15 U.S.C.

644(r)).

X(17) 52.219-14, Limitations on Subcontracting (NOV 2011) (15 U.S.C.

637(a)(14)).

[ ](18) 52.219-16, Liquidated Damages--Subcontracting Plan (JAN 1999) (15

U.S.C. 637(d)(4)(F)(i)).

[ ](19)(i) 52.219-23, Notice of Price Evaluation Adjustment for Small

Disadvantaged Business Concerns (OCT 2008) (10 U.S.C. 2323)(if the offeror elects to waive the adjustment, it shall so indicate in its offer.)

[ ](ii) Alternate I (JUN 2003) of 52.219-23.

[ ](20) 52.219-25, Small Disadvantaged Business Participation Program--

Disadvantaged Status and Reporting (DEC 2010) (Pub. L. 103-355, section

7102, and 10 U.S.C. 2323).

[ ](21) 52.219-26, Small Disadvantaged Business Participation Program--

Incentive Subcontracting (OCT 2000) (Pub. L. 103-355, section 7102, and 10

U.S.C. 2323).

[ ](22) 52.219-27, Notice of Service-Disabled Veteran-Owned Small Business

Set-Aside (NOV 2011) (15 U.S.C. 657f).

X(23) 52.219-28, Post Award Small Business Program Representation (APR

2012) (15 U.S.C. 632(a)(2)).

[ ](24) 52.219-29, Notice of Set-Aside for Economically Disadvantaged

Women-Owned Small Business (EDWOSB) Concerns (APR 2012) (15 U.S.C.

637(m)).

[ ](25) 52.219-30, Notice of Set-Aside for Women-Owned Small Business

(WOSB) Concerns Eligible Under the WOSB Program (APR 2012) (15 U.S.C.

637(m)).

X(26) 52.222-3, Convict Labor (JUN 2003) (E.O. 11755).

[ ](27) 52.222-19, Child Labor-Cooperation with Authorities and Remedies

(MAR 2012) (E.O. 13126).

X(28) 52.222-21, Prohibition of Segregated Facilities (FEB 1999).

X(29) 52.222-26, Equal Opportunity (MAR 2007) (E.O. 11246).

X(30) 52.222-35, Equal Opportunity for Veterans (SEP 2010) (38 U.S.C.

4212).

X(31) 52.222-36, Affirmative Action for Workers with Disabilities (OCT

2010) (29 U.S.C. 793).

X(32) 52.222-37, Employment Reports on Veterans (SEP 2010) (38 U.S.C.

4212).

X(33) 52.222-40, Notification of Employee Rights Under the National Labor

Relations Act (DEC 2010) (E.O. 13496).

X(34) 52.222-54, Employment Eligibility Verification (JUL 2012).

(Executive Order 12989). (Not applicable to the acquisition of commercially available off-the-shelf items or certain other types of commercial items as prescribed in 22.1803.)

[ ](35)(i) 52.223-9, Estimate of Percentage of Recovered Material Content for EPA-Designated Items (MAY 2008) (42 U.S.C. 6962(c)(3)(A)(ii)). (Not applicable to the acquisition of commercially available off-the-shelf items.)

[ ](ii) Alternate I (MAY 2008) of 52.223-9 (42 U.S.C. 6962(i)(2)(C)). (Not applicable to the acquisition of commercially available off-the-shelf items.)

[ ](36) 52.223-15, Energy Efficiency in Energy-Consuming Products (DEC

2007) (42 U.S.C. 8259b).

[ ](37)(i) 52.223-16, IEEE 1680 Standard for the Environmental Assessment of Personal Computer Products (DEC 2007) (E.O. 13423).

[ ](ii) Alternate I (DEC 2007) of 52.223-16.

X(38) 52.223-18, Encouraging Contractor Policies to Ban Text Messaging

While Driving (AUG 2011). (E.O. 13513).

[ ](39) 52.225-1, Buy American Act - Supplies (FEB 2009) (41 U.S.C. 10a-

10d).

[ ](40)(i) 52.225-3, Buy American Act-Free Trade Agreements-Israeli Trade

Act (NOV 2012) (41 U.S.C. chapter 83, 19 U.S.C. 3301 note, 19 U.S.C. 2112 note, 19 U.S.C. 3805 note, 19 U.S.C. 4001 note, Pub. L. 103-182, 108-77, 108-78, 108-286, 108-302, 109-53, 109-169, 109-283, 110-138, 112-41, 112-

42, and 112-43).

[ ](ii) Alternate I (MAR 2012) of 52.225-3.

[ ](iii) Alternate II (MAR 2012) of 52.225-3.

[ ](iv) Alternate III (NOV 2012) of 52.225-3.

[ ](41) 52.225-5, Trade Agreements (NOV 2012) (19 U.S.C. 2501, et seq., 19

U.S.C. 3301 note).

X(42) 52.225-13, Restrictions on Certain Foreign Purchases (JUN 2008)

(E.O.'s, proclamations, and statutes administered by the Office of Foreign

Assets Control of the Department of the Treasury).

[ ](43) 52.226-4, Notice of Disaster or Emergency Area Set-Aside (NOV

2007) (42 U.S.C. 5150).

[ ](44) 52.226-5, Restrictions on Subcontracting Outside Disaster or

Emergency Area (NOV 2007) (42 U.S.C. 5150).

[ ](45) 52.232-29, Terms for Financing of Purchases of Commercial Items

(FEB 2002) (41 U.S.C. 255(f), 10 U.S.C. 2307(f)).

[ ](46) 52.232-30, Installment Payments for Commercial Items (OCT 1995)

(41 U.S.C. 255(f), 10 U.S.C. 2307(f)).

X(47) 52.232-33, Payment by Electronic Funds Transfer - Central Contractor

Registration (OCT 2003) (31 U.S.C. 3332).

[ ](48) 52.232-34, Payment by Electronic Funds Transfer - Other than

Central Contractor Registration (MAY 1999) (31 U.S.C. 3332).

[ ](49) 52.232-36, Payment by Third Party (FEB 2010) (31 U.S.C. 3332).

[ ](50) 52.239-1, Privacy or Security Safeguards (AUG 1996) (5 U.S.C.

552a).

[ ](51)(i) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial

Vessels (FEB 2006) (46 U.S.C. Appx 1241(b) and 10 U.S.C. 2631).

[ ](ii) Alternate I (APR 2003) of 52.247-64.

(c) The Contractor shall comply with the FAR clauses in this paragraph

(c), applicable to commercial services, that the Contracting Officer has indicated as being incorporated in this contract by reference to implement provisions of law or Executive orders applicable to acquisitions of commercial items: (Contracting Officer check as appropriate.)

X(1) 52.222-41, Service Contract Act of 1965 (NOV 2007) (41 U.S.C. 351, et seq.).

X(2) 52.222-42, Statement of Equivalent Rates for Federal Hires (MAY 1989)

(29 U.S.C. 206 and 41 U.S.C. 351, et seq.).

X(3) 52.222-43, Fair Labor Standards Act and Service Contract Act--Price

Adjustment (Multiple Year and Option Contracts) (SEP 2009) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).

[ ](4) 52.222-44, Fair Labor Standards Act and Service Contract Act--Price

Adjustment (SEP 2009) (29 U.S.C. 206 and 41 U.S.C. 351, et seq.).

[ ](5) 52.222-51, Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment-

-Requirements (NOV 2007) (41 U.S.C. 351, et seq.).

X(6) 52.222-53, Exemption from Application of the Service Contract Act to

Contracts for Certain Services--Requirements (FEB 2009) (41 U.S.C. 351, et seq.).

[ ](7) 52.222-17, Nondisplacement of Qualified Workers (JAN 2013) (E.O.

13495).

[ ](8) 52.226-6, Promoting Excess Food Donation to Nonprofit

Organizations. (MAR 2009) (Pub. L. 110-247).

[ ](9) 52.237-11, Accepting and Dispensing of $1 Coin (SEP 2008) (31

U.S.C. 5112(p)(1)).

(d) Comptroller General Examination of Record. The Contractor shall comply with the provisions of this paragraph (d) if this contract was awarded using other than sealed bid, is in excess of the simplified acquisition threshold, and does not contain the clause at 52.215-2, Audit and Records

- Negotiation.

(1) The Comptroller General of the United States, or an authorized representative of the Comptroller General, shall have access to and right to examine any of the Contractor's directly pertinent records involving transactions related to this contract.

(2) The Contractor shall make available at its offices at all reasonable times the records, materials, and other evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR Subpart 4.7, Contractor Records

Retention, of the other clauses of this contract. If this contract is completely or partially terminated, the records relating to the work terminated shall be made available for 3 years after any resulting final termination settlement. Records relating to appeals under the disputes clause or to litigation or the settlement of claims arising under or relating to this contract shall be made available until such appeals, litigation, or claims are finally resolved.

(3) As used in this clause, records include books, documents, accounting procedures and practices, and other data, regardless of type and regardless of form. This does not require the Contractor to create or maintain any record that the Contractor does not maintain in the ordinary course of business or pursuant to a provision of law.

(e)(1) Notwithstanding the requirements of the clauses in paragraphs (a), (b), (c), and (d) of this clause, the Contractor is not required to flow down any FAR clause, other than those in this paragraph (e)(1) in a subcontract for commercial items. Unless otherwise indicated below, the extent of the flow down shall be as required by the clause--

(i) 52.203-13, Contractor Code of Business Ethics and Conduct (APR 2010)

(Pub. L. 110-252, Title VI, Chapter 1 (41 U.S.C. 251 note)).

(ii) 52.219-8, Utilization of Small Business Concerns (DEC 2010) (15

U.S.C. 637(d)(2) and (3)), in all subcontracts that offer further subcontracting opportunities. If the subcontract (except subcontracts to small business concerns) exceeds $650,000 ($1.5 million for construction of any public facility), the subcontractor must include 52.219-8 in lower tier subcontracts that offer subcontracting opportunities.

(iii) 52.222-17, Nondisplacement of Qualified Workers (JAN 2013). Flow down required in accordance with paragraph (f) of FAR clause 52.222-17.

(iv) 52.222-26, Equal Opportunity (MAR 2007) (E.O. 11246).

(v) 52.222-35, Equal Opportunity for Veterans (SEP 2010) (38 U.S.C. 4212).

(vi) 52.222-36, Affirmative Action for Workers with Disabilities (OCT

2010) (29 U.S.C. 793).

(vii) 52.222-40, Notification of Employee Rights Under the National Labor

Relations Act (DEC 2010) (E.O. 13496). Flow down required in accordance with paragraph (f) of FAR clause 52.222-40.

(viii) 52.222-41, Service Contract Act of 1965 (NOV 2007) (41 U.S.C. 351, et seq.).

(ix) 52.222-50, Combating Trafficking in Persons (FEB 2009) (22 U.S.C.

7104(g)).

Alternate I (AUG 2007) of 52.222-50 (22 U.S.C. 7104(g)).

(x) 52.222-51, Exemption from Application of the Service Contract Act to

Contracts for Maintenance, Calibration, or Repair of Certain Equipment--

Requirements (NOV 2007) (41 U.S.C. 351, et seq.).

(xi) 52.222-53, Exemption from Application of the Service Contract Act to

Contracts for Certain Services-Requirements (FEB 2009)(41 U.S.C. 351, et seq.).

(xii) 52.222-54, Employment Eligibility Verification (JUL 2012).

(xiii) 52.226-6, Promoting Excess Food Donation to Nonprofit

Organizations. (MAR 2009) (Pub. L. 110-247). Flow down required in accordance with paragraph (e) of FAR clause 52.226-6.

(xiv) 52.247-64, Preference for Privately Owned U.S.-Flag Commercial

Vessels (FEB 2006) (46 U.S.C. Appx 1241(b) and 10 U.S.C. 2631). Flow down required in accordance with paragraph (d) of FAR clause 52.247-64.

(2) While not required, the contractor may include in its subcontracts for commercial items a minimal number of additional clauses necessary to satisfy its contractual obligations.

SECTION B - Supplies or Services/Prices

SERVICES

The contractor must provide Insurance Endorsement Processing Services on an as-needed basis for the US Department of Housing and Development. The contractor will perform the on-site services at the Santa Ana Homeownership

Center, Single Family Processing and Underwriting Division.

FIXED PRICES FOR SERVICES – INDEFINITE QUANTITY/INDEFINITE DELIVERY

CONTRACT

The following prices shall apply for payment purposes for the duration of the contract.

CLIN Description Quantity Unit Unit Price Amount

0001 Insurance Endorsement Processing

Services - Year One

(Effective date of the contract to one year thereafter)

88250 EA

0002 Insurance Endorsement Processing

Services - Year Two

(Effective date is one year after award of contract to two years thereafter)

88250 EA

0003 Insurance Endorsement Processing

Services - Year Three

(Effective date is two years after award of contract to three years thereafter)

88250 EA

0004 Insurance Endorsement Processing

Services - Year Four

(Effective date is three years after award of contract to four years thereafter)

88250 EA

0005 Insurance Endorsement Processing

Services - Year Five

(Effective date is four years after award of contract to five years thereafter)

88250 EA

Grand Total n

SECTION C - Description/Specifications

PERFORMANCE WORK STATEMENT

The contractor must furnish the necessary personnel and services to perform the performance work statement.

C.1 ACRONYMS

A. ADP - Automated Data Processing

B. APL – Acceptable Performance Level

C. ARM - Adjustable Rate Mortgage

D. AUS - Automated Underwriting System

E. CHUMS - Computerized Homes Underwriting Management System

F. CONST/PERM - A construction-permanent mortgage program

G. DE - Direct Endorsement

H. FHAC - Federal Housing Administration Connection (FHA computerized system)

I. GTM - Government Technical Monitor

J. GTR - Government Technical Representative

K. HECM - Home Equity Conversion Mortgage

L. HOC – Santa Ana Homeownership Center currently located at 34 Civic Center, Santa Ana, CA 92701-4003

M. 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

N. MAR - Master Appraisal Report

O. MCC - Master Conditional Commitment

P. MIC - Mortgage Insurance Certificate

Q. MIP - Mortgage Insurance Premium

R. NOR - Notice of Return may be used interchangeably with non-endorsement

S. PBC – Performance Based Contract

T. REO - Real Estate Owned

U. URAR - Uniform Residential Appraisal Report

V. URLA - Uniform Residential Loan Application

W. VA-NOV - Veterans Administration Notice of Value

X. VA-MNOV - Veterans Administration Master Notice of Value

Y. VOD - Verification of Deposit

Z. VOE - Verification of Employment

AA. 203(h) - A single family program within HUD for victims of Presidential-Declared major disasters

BB. 203(k) - A single family program for the rehabilitation and repair of single-family properties

C.2 DEFINITIONS

A. 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.

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

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

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

E. DAY - A calendar day, unless otherwise specified.

F. FLIPPING – The practice whereby a property recently acquired is re-sold for a considerable profit with an artificially inflated value, often abetted by a lender’s collusion with the appraiser. Most property flipping occurs within a matter of days after acquisition, and usually with only minor cosmetic improvements if any.

Unscrupulous investors will often flip properties they have contracted to purchase (but have not yet acquired) by selling or assigning the rights to the sales contract, which is prohibited.

G. KEY PERSONNEL - For this contract Key Personnel are defined as the on-site contract manager and alternate on-site contract manager.

Additionally, the person responsible for the contract and anyone who shall make decisions on his/her behalf shall be considered as

Key Personnel.

H. OWNER OF RECORD – The party established by a copy of a recorded deed, a property sales history report, or other documentation (such as a property tax bill, a title commitment or binder) as the owner of the property.

I. REFERENCES - Refers to all FHA/HUD Handbooks, Mortgagee Letters, Notices, and Local Message Boards, as well as through the Internet at www.hud.gov and www.hudclips.org. The contractor shall maintain updated knowledge of FHA Single Family programs for which it issues

MIC’s and shall also maintain updated knowledge of and secure all of the required handbooks and forms as necessary. The following are the most frequently used HUD Handbooks and are the most current editions:

1. 4155.1, Mortgage Credit Analysis for Mortgage Insurance on One to

Four Family Properties

2. 4155.2 Mortgage Credit Analysis for Mortgage Insurance on One to

Four Family Properties

3. 4150.1, Valuation Analysis for Home Mortgage Insurance

4. 4150.2, Valuation Analysis for Single Family One-to Four Unit

Dwellings

5. 4145.1, Architectural Processing and Inspections for Home Mortgage

Insurance

6. 4235.1, Home Equity Conversion Mortgages

7. 4240.4, 203K, Rehabilitation Home Mortgage Insurance

C.3 GENERAL REQUIREMENTS

A. The contractor must perform insurance endorsement processing services on required work along with data entry functions on a daily basis on-site at the SAHOC during core business hours of 8:00 a.m. to 4:30 p.m. Additional hours extending beyond core business hours must be approved by the GTR as to confirm HUD personnel will be on site. Case binder and data review must be completed, then endorsed or Notice of Returned entered into FHAC within three business days of the case assignment; unless otherwise directed by the GTR. FHAC or other required systems as designated must be provided for the contractors’ use during the hours of 6:00 a.m. to

7:00 p.m., excluding federal holidays, weekends and authorized closures. Every effort must be made for equipment and FHAC availability and also for technical assistance from HUD staff http://www.hud.gov/ http://www.hudclips.org/ during the 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 must be accommodated by mutual consent between the contractor and the Contracting Officer.

B. The contractor must thoroughly review its employees’ and subcontractors’ qualifications and perform background checks on each of its employees or subcontractors working in the HOC. The contractor must provide ongoing training of its employees. The contractor must not allow any individual to have access to the FHAC or any government system that has not been processed and cleared through background investigations for Sensitive Automated

Systems/Applications. The Contracting Officer has the authority to deny building access to any employee under the contract who is identified as a potential threat to the health, safety, security, general well being, or mission of HUD staff. HUD reserves the right to review the contractor’s training plan and the background checks throughout the duration of the contract. The contractor must not allow any individual to be on site that has not been processed and cleared. Contractor personnel must present a neat and clean appearance and be easily recognized. When in the HUD building, all contract employees must wear a badge displaying the company name, employees’ name and photo. Any other method of identification is to be approved in writing by the Contracting

Officer.

C. Services to be performed by the contractor must be ordered by assignment of case files assigned by the GTR.

D. Upon receipt of a telephone call or written notification from the Contracting Officer, the contractor and its representatives must report in person to the HOC on the date specified.

E. The contractor must provide a contract manager and an alternate contract manager who is to be responsible for the performance of the work. At least one key personnel must be on site any time contractor personnel are working.

F. This contract must follow a PBC approach, whereby HUD establishes the performance standards to be met in this contract and the contractor is to be responsible for meeting or exceeding those standards. Performance standards to be met in this contract are in section C.4.O.

C.4 SPECIAL REQUIREMENTS

A. The contractor must make the final determination whether files submitted for insurance endorsement are in compliance with HUD requirements. This includes review of the submitted FHA case binder and verifying that FHAC reflects accurate data. Only complete files are to be endorsed and shipped to the designated

SAHOC NARA facility (National Archives and Records Administration).

The contractor must ensure that data integrity and confidentiality are safeguarded by not disclosing information to individuals not authorized access by HUD. The contractor must utilize the following HOC endorsement review checklists found on http://portal.hud.gov/hudportal/HUD?src=/program_offices/administra tion/hudclips/handbooks/hsgh/4155.2 in Chapter 12 Section D.

(a) HECM Pre-Endorsement Review Checklist

(b) Pre-Endorsement Review Checklist

The contractor must not alter the checklists in any manner. The checklists and other instructions must be revised and updated by HUD to comply with any changing requirements. The checklists specify the degree of review required for each item to determine if the file can be approved or rejected.

The completed checklists must be included in each file. The contractor must provide the necessary checklist (s) to its staff, at its expense.

B. Data integrity is a crucial aspect of the endorsement function and must be safeguarded. The contractor must review all information on the: FHAC Insuring Screens for Purchases, Refinance and HECM loans, Case Query Screen, Appraisal Logging Screen, and Case

Warning Screen, against the appropriate source documents.

FHAC/Lender printouts must not be used to verify data accuracy.

The Mortgage Credit Analysis Worksheet is not a source document for the mortgage amount, interest rate, borrower names, or social security number. It is a worksheet only. The contractor must make modifications to the data in FHAC to accurately reflect the source documents, and to ensure an accurate endorsement of the loan. No major changes to the name or to the address of the property can be made without the consent of HUD staff as designated by the GTR.

Unacceptable critical endorsement errors include the data verified per the FHAC Screens and the checklists used to determine whether to approve or reject a case file, as well as endorsing a loan when documents are missing, archiving a case without endorsement, and endorsing a loan when the loan does not meet the requirements of

HUD Handbook 4155.2., “Lender’s Guide to the Single Family Mortgage

Insurance Process)”, Chapter 8, "Request for Late Endorsement".

C. An FHA Government Rule regarding property flipping requires lenders to utilize an automated data entry system to input information regarding the date of acquisition and date of re-sale by the owner of record of a property resulting in a mortgage insured by FHA.

The contractor must consult the 24 CFR, Part 203 for specific requirements as per the Code of Federal Regulations. The contractor must be responsible to review those files and all corresponding documentation designated by the computer as applicable per the rule change and must make the final determination on the file to assure it is insurable, including a

NOR re-submitted.

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4155.2 http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4155.2

D. If the lender has not entered the appraisal and insurance application data, the contractor must not attempt to endorse the file. As instructed by the GTR, the incomplete cases must be given to a designated HUD employee to be return to the lender. In instances where the lender has gone out of business, the contractor must be provided with additional instructions, as needed.

E. The contractor must issue a MIC through the FHAC for each endorsed file, unless otherwise instructed by the GTR. In addition, the case binder must be stamped as endorsed and must be clearly marked, if appropriate, “Special Program”, i.e., 203(k), HECM, CONST/PERM, or 203(h). If a technical review is required, the outside of the case binder must be annotated with a red “TR” and placed in a designated area. 203(k) files must be placed in the designated area for further processing, if instructed by the GTR. From time to time other types of files may be designated by the GTR to be separated, either prior to or after endorsement for further review by HUD staff. After endorsement, the contractor must pull specific documents out of HECM case files. Specified documents are to be mailed to the borrower and to the lender, and forwarded to the HECM servicing center. The files to be archived and shipped to the

National Archives and Records Administration must be scanned, placed in shipping boxes along with a shipping receipt which documents all case binders included. Each box must be placed on a hand cart holding exactly 25 boxes in the designated area to await

NARA pick up. When a total of 25 boxes are accumulated, they are to be immediately transferred to one of the designated hand cards provided.

NOTE: Contractor staff must be capable of repetitive lifting of heavy boxes with a maximum of 25-50 pounds. The contractor must comply with instructions to facilitate quality control reviews of endorsement files by the GTR.

F. If a file cannot be endorsed, per the HECM Pre-Endorsement Review Checklist or the Pre-Endorsement Review Checklist (Non-HECM files);

a Non-Endorsement Notice/Notice of Return (NOR) is to be issued.

The contractor must review the case file in its entirety to ascertain all reasons for the non-endorsement and it must be clearly and concisely noted on the Notice of Return. The contractor must check the appropriate boxes on “Notice of Return” screen in the FHAC and enter any comments necessary with clarifying language. The NOR and all applicable forms must be fastened to the top right inside of the binder and the binder is to be returned to the lender. The contractor must review and clear all responses to non-endorsement files, unless directed otherwise the GTR. If a file requires rejection more than once, the contractor must bring the file to the GTR for further disposition.

The contractor must determine if the file has had or needs a principal reduction. If a principal required is required, the contractor must update FHAC. The mortgage amount on the note and other loan documents will not match data reflected in FHAC. The contractor must review the payment history to verify the reduction was applied to the principal of the loan, and must annotate the case warning screen in FHAC as follows; “Principal reduction of

(applicable amount) applied, the Note and MIC will not agree”. The contractor must stamp, with red ink, the case binder below the endorsement date “PRINCIPAL REDUCTION: NOTE AND MIC WILL NOT

MATCH".

G. HECM CASES - The contractor must review all the information on both the “FHAC HECM Insurance Screen” and “FHAC HECM Insurance

Application Screen and (Other Functions Screens)” against the appropriate source documents listed in Section J. In addition to the requirements in paragraphs (A) and (B) above, if the file is insurable; the contractor must pull the original second Note, create a supplemental binder and mail to the National Servicing

Center at 2 West 3nd Street Suite 400 Tulsa, OK 74103. The supplemental binder must have the FHA case number written on the right side of the folder tab, “Residual Binder” written on the left side, and “HECM” written in the middle of the folder tab. The three original "Loan Agreements" and the one "Notice to the

Borrower" must be stamped with the provided signature stamp. One

Loan Agreement and the Notice To Borrower is to be mailed to the borrower, one Loan Agreement is to be mailed to the lender and one

Loan Agreement is to be secured on the right side of the FHA Case

Binder in proper stacking order. The documents to be mailed as indicated above must be completed within 2 days of case endorsement. The FHA Case Binder must be stamped on the outside of the binder as “endorsed” annotated for a technical review (if applicable) and placed in the designated area. If the file does not comply with endorsement requirements, the contractor must issue a NOR, secure the NOR print out on the top right inside of the binder, and place the binder in the designated area.

NOTE: HECM files do not include a Mortgage Credit Analysis

Worksheet. The name and CHUMS ID number of the DE Underwriter must be obtained from page three of the Form HUD-92900A or HUD-92800.5b

H. For cases involving escrow of funds for repair or other requirements, review Form HUD-92300 for date of issue and completeness, the contractor must annotate the outside of the FHA

Case Binder as an “Escrow Repair” and enter the dollar amount of the escrow into FHAC.

I. Certain files require special processing instructions and specific training that must be given by the GTR. Specific endorsement processing instructions and training is to be provided as needed.

Checklists and other instructions must be updated as needed.

J. All files must be completed and placed in a designated area (i.e.

Return to lender, archive, Tech review, etc.) within three business days of assignment.

K. In addition to the above items, the contractor must log the "Closing Package" into the FHAC "Closing Package Logging" screen, if requested by the GTR/GTM.

L. QUALITY CONTROL / TECHNICAL AND MANAGEMENT PLAN - The contractor must have a Quality Control/Technical and Management Plan on file.

The Quality Control / Technical and Management Plan must contain a detailed description of the contractor’s strategy for timely completion of work assignments, training of staff, quality control, and general oversight of the contract. The training of staff portion of the plan must outline the measures the contractor must take to ensure employees are knowledgeable of changes in the process and must provide information on the frequency of training.

The Quality Control / Technical and Management Plan must also contain a detailed description of how the work deadlines and the estimated quantities are to be met and must include what plans are in place in the event of an emergency which interrupts the flow of work. An emergency could be the result of an employees’ illness, resignation, vacation, etc. The Quality Control / Technical and

Management Plan must be considered a living document and must be required to be updated by the contractor as conditions and contract requirements are revised. The plan must include a second review of all NOR'S while maintaining the standard that they be delivered to

HUD staff within one business day of return. The plan must also include a daily quality control review of 10% of the previous day’s endorsements. Quality Control Log Sheets, as specified by the GTR, must be completed and maintained separately by the contractor, and be made available upon request by the GTR and Contracting Officer.

The contractor is to be required to input quality control data into a specific database weekly.

M. The HOC requires certain files, system generated error messages or processing messages to be resolved by contractor’s staff as directed by the GTR. The contractor must be instructed on the disposition and routing of these files by the GTR. These are to include, but are not limited to: case warning messages, pre-processing return codes, and pre-closing files.

N. CORRECTIONS - The contractor must correct inadequate or incorrect endorsements made by the contractor at no additional expense to the government. Corrections must be requested by the GTR as a result of a quality assurance review. The contractor must 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 must be returned to the GTR with an explanation for further action. The contractor must keep a separate log sheet of all corrections made in the FHAC database to include the case number, correction made, and the date processed. If the contractor requires a case binder to be requested from NARA for further MIC correction research, it will be the responsibility of the contractor to follow the SAHOC procedure of returning files to

NARA.

O. GOVERNMENT PERFORMANCE ASSESSMENT

1. HUD must randomly select a representative sample no less than 2% of the contractor's work for review. Contract staff must not direct files to be reviewed or interfere with the process of collecting files for review to maintain the randomness of file selection. These reviews along with MIC correction requests must be used to determine the accuracy, quality and completeness of the contractor's reviews. The GTR must provide monthly feedback to the contractor based on the result of HUD’s reviews. The result of the randomly sampled cases and MIC correction requests must 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 random sample is 10% or less, the contractor must receive full payment plus possible bonuses for the services performed for the month reviewed. If the level of acceptable work falls below 90% for the month, then the monthly payment for that month must be reduced by the percentage of unacceptable work; i.e., if 12% of the work is unacceptable, then payment must be reduced by 2%. All percentages must be rounded to the nearest full percentage point.

2. A contractor critical error is considered to be a significant mistake or omission on initial and resubmitted cases, and includes those referenced in Section C and as outlined in the HUD

Supervisory Review Report. Additional items must also be cited which do not count as errors for purpose of price reduction, but for which the contractor shall be responsible for addressing.

Regardless of the number of significant errors considered per file, only one error per file must be counted for purposes of contractor performance. For example, if three errors are made on a file, only one error must be counted in calculating the percentage of errors for that month.

3. Continual serious performance problems must result in additional contractual remedies, as permitted by the contract terms or conditions.

P. PERFORMANCE REQUIREMENTS SUMMARY

PRS#

Service

Requirement

Performance

Standard

Acceptable

Quality Level

Method of

Surveillance

1 Review FHA case binders as described

Contractor shall include the completed

90% Representative sampling of complete cases in C.4.A. required checklist that is referenced in

C.4.A.

by GTR on a monthly basis.

2 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.

3 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.

Q. INVOICE REVIEW

The invoices submitted by the contractor must be reviewed against

FHAC reports and the contractor must be paid for only those files endorsed or rejected for the first time by its staff. HUD must not pay for cases resubmitted or corrected. The FHAC report must be the official supporting documentation for payment. Invoices are to be presented to the GTR within 30 days of receipt of the FHAC report.

C.5 PERSONNEL QUALIFICATIONS

The contractor must use personnel meeting the qualifications stated below in performing its efforts on this contract.

A. On-site Contract Manager and/or On-site Alternate Contract Manager High school diploma and a minimum of at least 3-5 years’ experience in the Mortgage Banking industry in one or more of the following capacities: DE Underwriter, Sr. Loan Processor, Sr. Loan

Funder/Insurer

B. General Clerk II High school diploma and a minimum of 1-2 years of experience in one or more of the following capacities: Data Entry Processor, Loan

Processor, Loan Funder, Shipping/Insuring clerk

SECTION D - Packaging and Marking

PAYMENT OF POSTAGE AND SHIPPING COSTS

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

MARKING

All information submitted to the Contracting Officer or GTR must clearly indicate the contract number for which the information is being submitted.

SECTION E - Inspection and Acceptance

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 designated by the Contracting Officer or the

GTR.

SECTION F - Deliveries or Performance

52.242-15 STOP-WORK ORDER. (AUG 1989)

52.242-17 GOVERNMENT DELAY OF WORK. (APR 1984)

SECTION G - Contract Administration Data

2452.232-70 PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE).

(DEC 2012)

(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):

Partial Applicable contract Delivery Payment amount payment No. deliverable date

1. To be cited in individual orders issued hereunder. $

2. [ ] $

3. [ ] $

(Continue as necessary)

(b) Submission of Invoices. (1) The Contractor shall submit invoices as follows: original to the payment office and one copy each to the

Contracting Officer and a copy to the Government Technical

Representative (GTR) identified in the contract. To constitute a proper invoice, the invoice must include all items required by the

FAR clause at 52.232-25, "Prompt Payment."

(2) To assist the government in making timely payments, the contractor is also requested to include on each invoice the appropriation number shown on the contract award document (e.g., block 14 of the Standard Form (SF) 26, block 21 of the SF-33, or block 25 of the SF-1449). The contractor is also requested to clearly indicate on the mailing envelope that an invoice is enclosed.

(c) Contractor Remittance Information. The contractor shall provide the payment office with all information required by other payment clauses or other supplemental information (e.g., contracts for commercial services) contained in this contract.

(d) Final Invoice Payment. The final invoice shall not be paid prior to certification by the Contracting Officer that all work has been completed and accepted.

2452.232-70 PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED-PRICE).

(APR 2013) (DEVIATION)

The contractor shall submit invoices electronically via email to the email addresses shown on the contract award document (e.g., block 12 of the Standard Form (SF) 26, block 25 of the SF-33, or block 18a of the SF-1449) and carbon copy the Contracting Officer and the

Government Technical Representative (GTR). To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232-25, "Prompt Payment." The contractor shall clearly include in the Subject line of the email: INVOICE INCLUDED;

CONTRACT/ORDER #: ______________, INVOICE NUMBER __________________

and Contract Line Item Number(s) ______________.

(End of Alternate I)

SECTION H - Special Contract Requirements

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) CUI:

(1) 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:

(A) Government acquisition-sensitive information, including source selection information as defined at section 2.101 of the Federal Acquisition Regulation (48 CFR Chapter 1);

contractor bid or proposal information;

(B) Information contained in individual contracts that is not public information and such contract information that is contained in Government databases; proprietary economic, financial, or business information (e.g., salary information) provided to the Government by other parties

(e.g., other contractors) or belonging to HUD;

(C) Personally identifiable information (PII) that includes, but is not limited to social security numbers, names, dates of birth, places of birth, parents’ names, credit card numbers, applications for entitlements, and information relating to a person’s private financial, income, employment, and tax records; and

(D) Other information that the HUD contracting officer or other authorized HUD employee explicitly identifies as CUI; and

(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., Attachment 1,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.

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’s 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 though the use of badges, corporate logos, or other distinguishable credentials.

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:

1. 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.

2. Be placed in a position of administration, command, supervision, or control over personnel of another government Contractor, or become a part of the government organization.

3. Be used in administration or supervision of procurement activities.

c. The Government Technical Representative (GTR) or Government

Technical Manager is not responsible for, and must not supervise the Contractor’s staff.