QASP.docx

Quality Assurance Surveillance Plan (QASP) SMART – Business Service Provider August 23, 2016 Version 1.1

Attachment 6

Quality Assurance Surveillance Plan (QASP) 1 Vision

Obtain specialized Business Service Provider (BSP) to provide loan servicing services, online training and customer support as well as a state-of-the-art web-based and rule-based technology to support current and future initiatives and requirements with a customized business intelligence architecture.

1 INTRODUCTION

This Quality Assurance Surveillance Plan (QASP) is pursuant to the requirements listed in the Performance Work Statement (PWS) entitled Single Family Mortgage Asset Recovery Technology (SMART). This plan sets forth the procedures and guidelines the HUD National Servicing Center (NSC) will use in ensuring the required performance standards or service levels are achieved by the Contractor.

1.1 Purpose

1.1.1 The purpose of the QASP is to describe the systematic methods used to monitor performance and to identify the required documentation and the resources to be employed. The QASP provides a means for evaluating whether the Contractor is meeting the performance standards/quality levels identified in the PWS and the Contractor's Quality Control Plan (QCP), and to ensure that the Government pays only for the level of services received.

1.1.2 This QASP defines the roles and responsibilities of all members of the Integrated Project Team (IPT), identifies the performance objectives, defines the methodologies used to monitor and evaluate the Contractor's performance, describes quality assurance documentation requirements, and describes the analysis of quality assurance monitoring results.

1.2 Performance Management Approach

1.2.1 The PWS structures the acquisition around "what service or quality level is required", as opposed to "how the Contractor should perform the work" (i.e., results, not compliance). This QASP will define the performance management approach taken by the NSC to monitor and manage the Contractor's performance to ensure the expected outcomes or performance objectives communicated in the PWS are achieved. Performance management rests on developing a capability to review and analyze information generated through performance assessment. The ability to make decisions based on the analysis of performance data is the cornerstone of performance management; this analysis yields information that indicates whether expected outcomes for the project are being achieved by the Contractor.

1.2.2 Performance management represents a significant shift from the more traditional Quality Assurance (QA) concepts in several ways. Performance management focuses on assessing whether outcomes are being achieved and to what extent. This approach migrates away from scrutiny of compliance with the processes and practices used to achieve the outcome. A performance-based approach enables the Contractor to play a large role in how the work is performed, as long as the proposed processes are within the stated constraints. The only exceptions to process reviews are those required by law (federal, state, and local) and compelling business situations, such as safety and health. A "results focus" provides the Contractor flexibility to continuously improve and innovate over the course of the contract as long as the critical outcomes expected are being achieved and/or the desired performance levels are being met.

1.3 Performance Management Strategy

1.3.1 The Contractor is responsible for the quality of all work performed. The Contractor measures that quality through the Contractor's own Quality Control (QC) program. QC is work output, not workers, and therefore includes all work performed under this contract regardless of whether the work is performed by Contractor employees or by subcontractors. The Contractor's QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance requirements in the PWS. The Contractor will develop and implement a performance management system with processes to assess and report its performance to the designated government representative. This QASP enables the Government to take advantage of the Contractor's QC program.

1.3.2 The Government representative(s) will monitor performance and review performance reports furnished by the Contractor to determine how the Contractor is performing against communicated performance objectives. The Contractor will be responsible for making required changes in processes and practices to ensure performance is managed effectively.

2 ROLES AND RESPONSIBILITIES

The following personnel shall oversee and coordinate surveillance activities.

2.1 The Contracting Officer

The Contracting Officer (CO) is responsible for monitoring contract compliance, contract administration, and cost control and for resolving any differences between the observations documented by the Government Technical Representative (GTR) and the Contractor. The CO will designate one full-time GTR as the government authority for performance management. The number of additional representatives serving as technical inspectors depends on the complexity of the services measured, as well as the Contractor's performance, and must be identified and designated by the CO.

2.2 The Government Technical Representative

The GTR is designated in writing by the CO to act as his or her authorized representative to assist in administering a contract. GTR limitations are contained in the written appointment letter. The GTR is responsible for technical administration of the project and ensures proper government surveillance of the Contractor's performance. The GTR is not empowered to make any contractual commitments or to authorize any contractual changes on the Government's behalf. Any changes that the Contractor deems may affect contract price, terms, or conditions, shall be referred to the CO for action. The GTR will have the responsibility for completing QA monitoring forms used to document the inspection and evaluation of the Contractor's work performance. Government surveillance may occur under the inspection of services clause for any service relating to the contract.

3 IDENTIFICATION OF REQUIRED PERFORMANCE STANDARDS/QUALITY LEVELS

The required performance standards and/or quality levels are included in the PWS and in Appendix 1, "Surveillance Matrix". If the Contractor meets the required service or performance level, it will be paid the monthly amount agreed on in the contract.

4 METHODOLOGIES TO MONITOR PERFORMANCE

4.1 Surveillance Techniques

In an effort to minimize the performance management burden, simplified surveillance methods shall be used by the Government to evaluate Contractor performance when appropriate. The primary methods of surveillance are:

· 100% Inspection - Each month, the GTR, shall review the generated documentation and enter summary results into the Surveillance Activity Checklist.

· Periodic Inspection - The GTR typically performs the periodic inspection on a monthly basis.

· Customer Feedback

4.2 Customer Feedback

The Contractor is expected to establish and maintain professional communication between its employees and customers. The primary objective of this communication is customer satisfaction. Customer satisfaction is the most significant external indicator of the success and effectiveness of all services provided and can be measured through customer complaints.

Performance management drives the Contractor to be customer focused through initially and internally addressing customer complaints and investigating the issues and/or problems. The customer always has the option to communicate complaints to the CO and/or GTR, as opposed to the Contractor.

Customer complaints, to be considered valid, must set forth clearly and in writing the detailed nature of the complaint, must be signed, and must be forwarded to the GTR.

Customer feedback may also be obtained either from the results of formal customer satisfaction surveys or from random customer complaints.

4.3 Acceptable Quality Levels

The Acceptable Quality Levels (AQLs) included in Appendix 1, "Surveillance Matrix", for Contractor performance are structured to allow the Contractor to manage how the work is performed. For certain critical activities such as those involving the evaluation and validation of internal controls and processes to mitigate risk, the desired performance level is established at 100 percent. Other levels of performance are keyed to the relative importance of the task to the overall mission performance.

5 QUALITY ASSURANCE DOCUMENTATION

5.1 The Performance Management Feedback Loop

The performance management feedback loop begins with the communication of expected outcomes. Performance standards are expressed in the PWS and are assessed using the performance monitoring techniques shown in Appendix 1.

5.2 Monitoring Forms

The Government's QA surveillance, accomplished by the GTR, may be reported using the following monitoring forms: Appendix 2 - "Corrective Action Report (CAR)", Appendix 3 - "Customer Complaint Record", and Appendix 4 "Performance Assessment Report" (PAR). The forms, when completed, will document the Government's assessment of the Contractor's performance under the contract to ensure that the required results are being achieved. The GTR will retain a copy of all completed QA surveillance forms.

6 ANALYSIS OF QUALITY ASSURANCE ASSESSEMENT

6.1 Determining Performance

The Government will use the monitoring methods cited to determine whether the performance standards/service levels/AQLs have been met. If the Contractor has not met the minimum requirements, it may be asked to develop a corrective action plan to show how and by what date it intends to bring performance up to the required levels.

6.2 Reporting

At the end of each month, the GTM will prepare a written report for the GTM summarizing the overall results of the quality assurance surveillance of the Contractor's performance. This written report, which includes the Contractor's submitted monthly report and the completed quality assurance monitoring forms, will become part of the QA documentation. It will enable the Government to demonstrate whether the Contractor is meeting the stated objectives and/or performance standards, including cost/technical/scheduling objectives.

6.3 Reviews and Resolution

6.3.1 The GTR may require the Contractor's project manager, or a designated alternate, to meet with the CO, GTM and/or other Government IPT personnel as deemed necessary to discuss performance evaluation. The GTR will define a frequency of in-depth reviews with the Contractor, including appropriate self-assessments by the Contractor; however, if the need arises, the Contractor will meet with the GTR as often as required or per the Contractor's request. The agenda of the reviews may include:

· Monthly performance assessment data and trend analysis,

· Issues and concerns of both parties,

· Projected outlook for upcoming months and progress against expected trends, including a corrective action plan analysis, Recommendations for improved efficiency and/or effectiveness

6.3.2 The CO and GTR must coordinate and communicate with the Contractor to resolve issues and concerns regarding marginal or unacceptable performance.

6.3.3 The GTR and Contractor should jointly formulate tactical and long-term courses of action. Decisions regarding changes to metrics, thresholds, or service levels should be clearly documented. Changes to service levels, procedures, and metrics will be incorporated as a contract modification at the discretion of the CO.

6.4 Surveillance Matrix

The Surveillance Matrix (Appendix 1) is the list of performance objectives and standards that must be performed by the Contractor. This matrix details the method of surveillance the GTR will use to validate and inspect these performance elements. Inspection of each element will be documented in the GTR file.

Performance objectives define the desired outcomes. Performance standards define the level of service required under the contract to successfully meet the performance objective. The inspection methodology defines how, when, and what will be assessed in measuring performance. The Government performs surveillance, using this QASP, to determine the quality of the Contractor's performance as it relates to the performance element standards. The PRS should be used to form the foundation of the GTR's inspection checklist.

In evaluating the quality of contractor’s performance, the following performance ratings may be used.

[If your organization requires that you use a different rating mechanism, insert it here.]

Performance Rating Criteria

Appendix 1 - Surveillance Matrix

5.1 Transition In/Conversion

5.1.1 Phase One - BSP System Preparation

5.1.1.1 Implementation Plan

Deliverables:

A001 Implementation Plan

a) The Contractor will deliver a draft Implementation Plan thirty (30) calendar days from the effective date of the contract.

AQL: within forty-five (45) calendar days from the effective date of the contract.

What: Implementation Plan How: review the deliverable Frequency: upon completion Who: GTR and (CO) Standard(s): Inspection applies to all standards

5.1.1.1.1 The Implementation Plan shall clearly describe the conversion efforts, and shall include:

a) The Contractor shall deliver an updated and approved Implementation Plan within forty-five (45) calendar days from the effective date of the contract.

AQL: no deviation.

What: Implementation Plan How: review the deliverable Frequency: upon completion Who: GTR and (CO) Standard(s): Inspection applies to all standards

GTR/GTM

any given users

5.1.1.1.2 To accomplish a seamless conversion, at a minimum, the following efforts are expected:

a) The Contractor shall establish websites and SMART BSP function within ninety (90) calendar days from the effective date of the contract.

AQL: within one hundred twenty (120) calendar days from the effective date of the contract.

What: Implementation Plan Deliverables, access to the system How: access to the systems Frequency: Continuous Who: CO and/or GTR/GTM

5.1.1.1.3 BSP Architecture Information

Deliverables A002 Configuration Management Plan

a) The Contractor shall comply with HUDs EA information.

AQL: no deviation

What: Deliverables How: BSP infrastructure is established Who: GTRS and/or CO

5.1.1.1.4 BSP Architecture

Deliverables A003 BSP Architecture

a) The Contractor shall complete the establishment of its physical infrastructure according HUD's IT infrastructure and standard.

AQL: no deviation

b) The Contractor shall develop, configure, deliver and implement BSP Infrastructure within sixty (60) calendar days from the effective date of the contract.

AQL: within seventy-five (75) days from the effective date of the contract.

What: Deliverables How: BSP Architecture is established Who: GTRS and/or CO

5.1.1.1.1.5 Web Information

a) The Contractor shall provide specialized web hosting in accordance with HUD standards.

AQL: no deviation

b) The Contractor shall develop, configure, deliver and implement web hosting service within sixty (60) calendar days from the effective date of the contract.

AQL: within seventy-five (75) days from the effective date of the contract.

What: Deliverables How: Reviewing of the websites and connections Who: GTR and/or CO

5.1.1.1.6 Web Hosting

A004 A Web Hosting Service that is FedRAMP certified

a) The Contractor shall provide web-based and rule-based services.

AQL: No deviation

b) The Contractor shall develop, configure, test, deliver and implement web hosting service within sixty (60) calendar days from the effective date of the contract.

AQL: within seventy-five (75) days from the effective date of the contract.

c) The Contractor shall provide a secure and remotely accessible through a cloud computing environment that is FedRAMP certified.

AQL: no deviation.

d) The Contractor shall maintain and provide secure access without interruption to EVARS (https://evars.hudtulsa.org) and ECLASS (https://eclass.hudtulsa.org) as soon as the transfer of the websites from the retiring contractor complete.

AQL: no deviation.

What: Deliverables How: GTR/GTM Frequency: upon completion Who: GTR/GTM

5.1.1.1.7 VPN Connectivity

a) The Contractor shall comply with HUDs EA information.

AQL: no deviation

b) Installation of the VPN Tunnel is taken place within 60 calendar days from the effective date of the contract.

AQL: within seventy-five (75) calendar days from the effective date of the contract.

What: Deliverables How: Secure VPN Connection established.

Frequency: upon completion Who: GTR and/or CO

5.1.1.1.8 Password Administration - Role Based Access

Deliverables:

A005 E-Authentication A006 Security Profiles and Audit

a) The Contractor shall create an audit trail.

AQL: No deviation

b) The Contractor shall develop customized user profiles adhering to all federal guidelines.

AQL: 100% Compliant with all Regulations

c) The Contractor will utilize the same user identification number ID and password in order to accommodate a single sign-on requirement.

AQL: 100% Compliant with all Regulations

d) The Contract shall create and setup different user profiles based on HUD's guidance and business processes within sixty (60) days from the effective date of the contract.

AQL: within ninety (90) calendar days from the effective date of the contract.

What: Deliverables How: reviewing of the tables Frequency: Continuous Who: GTR/GTM

5.1.1.1.9 Telecommunications Hook-Ups, Etc.

Deliverables:

A026 A007 Telecommunication Hookups

a) The Contractor shall acquire a toll free telephone which will become a HUD owned-toll free telephone number and develop a help desk email and physical addresses within sixty (60) calendar days from the effective date of the contract.

AQL: within seventy-five (75) calendar days from the effective date of the contract

b) The Contractor shall develop a customer helpdesk email and physical addresses within sixty (60) calendar days from the effective date of the contract.

AQL: within seventy-five (75) calendar days from the effective date of the contract

c) Standard: The telecommunication system maintains an operational capability 100% of the time, except during periods of approved documented scheduled maintenance.

AQL: Scheduled maintenance shall be approved by the GTR no later than 48 hours prior to downtime

What: review quarterly to determine status of telecommunication system throughout the quarter and all Deliverables How: review quarterly to determine status of telecommunication system throughout the quarter Frequency: quarter report Who: CO and/or GTR Disincentive:

The contract payment will be reduced by a percentage that is directly proportional to the percentage of time that the Contractor's telecommunications system was inoperable during the quarter. For example, if the system were down for any reason for 60 hours during a quarter, the Contractors invoice would be reduced by 3% on the applicable CLIN as calculated as follows:

Operational Hours in Quarter = 2160 [(30 calendar days times 24 hours)* 3 months] Downtime = 60.

Percentage of downtime = 3% (60 divided by 2160 equals 2.7% rounded to nearest whole percentage). Reduction to Contractors monthly invoice = 3%.

Disincentive provisions relating to maintaining continuous telecommunications systems shall not be applied to specific events arising solely from Force Majeure conditions.

5.1.1.1.10 Conversion

Deliverables:

A008 Conversion

a) The contractor shall receive and process data from incumbent and any other from internal and external HUD system within one hundred and twenty (120) calendar days from the effective date of the contract.

AQL: within one hundred and fifty (150) calendar days from the effective date of the contract

b) The Contractor shall perform close scrutiny of the business rules, report format and functionality during the conversion period and shall enhance reports, if necessary, that are already in use by HUD from in the retiring contractor within one hundred and twenty (120) calendar days from the effective date of the contract.

AQL: within one hundred and fifty (150) calendar days from the effective date of the contract.

c) The Contractor shall begin converting all data, sequels, business rules and flat files from retiring contractor to the new platform during the conversion period within one hundred and twenty (120) calendar days from the effective date of the contract.

AQL: within one hundred and fifty (150) calendar days from the effective date of the contract.

d) The Contractor shall convert all database/files/reports/programs/procedures from existing systems including SMART/EVARS/ECLASS to a new platform/application within one hundred and twenty (120) calendar days from the effective date of the contract.

AQL: within one hundred and fifty (150) calendar days from the effective date of the contract.

e) The Contractor shall convert and deliver these functions including SMART (See Specific Task 5.2 SMART), Accounting (See Specific Task 5.5 Accounting) and Customer Support (See Specific Task 5.6 Customer Support) of the new system that are ready for operation within one hundred and twenty (120) calendar days from the effective date of the contract.

AQL: no deviation.

f) The Contractor shall convert and deliver these functions including EVARS (See Specific Task 5.3 EVARS) and ECLASS (See Specific Task 5.4 ECLASS) of the new system that are ready for operation within one hundred and twenty (120) calendar days from the effective date of the contract.

AQL: within one hundred and fifty (150) calendar days from the effective date of the contract.

What: Deliverables How: reviewing deliverables Frequency: Continuous Who: GTR/GTR and/or SME Standard(s): Inspection applies to all standards What: Deliverables How: deliverables Frequency: Continuous Who: CO and/or GTR

GTR/GTM

5.1.2 Phase Two

5.1.2.1 Complete Infrastructure

a) The Contractor shall provide complete infrastructure within sixty (60) calendar days from the effective date of the contract.

AQL: within ninety (90) calendar days from the effective date of the contract What: Deliverables How: complete access of the new system Frequency: upon completion Who: CO and/or GTR

5.1.2.2 Fully Operational and Training of the New System

Deliverables:

A009 Training of the New System (Formal Training – Training during Transition)

a) All BSP functions shall be fully operational at one hundred fifty-one (151) calendar days from the effective date of the contract AQL: no deviation

What: Deliverables How: SMART/EVARS/ECLASS/Customer Support systems Frequency: upon completion Who: CO and/or GTR GTR and/or CO

5.1.2.3 Contract Performance

a) Contractor's performance is measured based on deliverables specified in the PWS requirements.

AQL: Contractor shall comply with the PWS requirements.

What: Deliverables How: reviewing deliverables Frequency: upon completion and thereafter Who: CO and/or GTR

GTR/GTM

5.1.3 Management Work Plan (MWP)

Deliverables:

A010 Management Work Plan (MWP)

a) The Contractor shall provide MWP thirty (30) calendar days from the effective date of the contract.

AQL: within five (5) business days of approved change/extension

What: Deliverables How: reviewing the MWP Frequency: upon completion

5.1.4 Systems Security

A011 System Security Plan (SSP) A012 Independent System Test and Evaluation (ST&E) A013 Plan of Action and Milestones A014 Audit Report A015 Disaster Recovery Plan A016 Disaster Recovery Test Plan A017 Security Controls and Assessment Report (SCAR) A018 Risk Assessment A019 SSAE 16 Audit A020 Review of Business Process Controls A021 Certification and Accreditation (C&A) A022 Internal Controls Assessment

a) The Contractor shall submit the SSP and Disaster Recovery Plan within thirty (30) calendar days from the effective date of the contract and updates provided not later than five (5) business days of any change.

AQL: within forty-five (45) calendar days from the effective date of the contract.

b) System Tests and Reports must be submitted not later than five (5) business days from request.

AQL: within seven (7) business days from request.

5.1.5 Continuity of Operations Plan (COOP)

Deliverables:

A023 COOP

a) The Contractor shall provide a specific written COOP within thirty (30) calendar days from the effective date of the contract.

AQL: within forty-five (45) calendar days from the effective date of the contract

What: Deliverables How: reviewing COOP Frequency: upon completion

5.1.6 Quality Control Plan (QCP)

Deliverables:

A024 Quality Control Plan (QCP)

a) The Contractor shall provide QCP within ten (10) calendar days after the post award conference.

AQL: (20) calendar days after the post award conference.

What: Deliverables How: reviewing QCP Frequency: upon completion and thereafter

5.1.6.1 Performance Report and Debriefing

A025 Performance Report and Debriefing

5.1.6.2 Corrective Actions

A026 Corrective Actions

5.1.6.3 Status Meetings

A027 Status Meetings

5.1.6.4 Monthly Accomplishment Reports and Quarterly Progress Reports Deliverables A028 Monthly Progress Report A029 Quarterly Progress Report (for special project)

a) The Contractor shall provide monthly progress report by the fifth (5th) business day of each month.

AQL: by the seventh (7th) business day of each month.

5.1.6.5 Quality Control Reviews and Summary Report

A030 Quality Control Reviews and Summary Report

5.1.6.6 Quarterly Review

Deliverables A031 Contractor Quarterly Self-Evaluation Performance

a) The contractor shall provide a self-evaluation to the GTR not later than ten (10) calendar days after the end of each calendar quarter.

AQL: not later than fifteen (15) calendar days after the end of each calendar quarter.

5.1.6.7 Executive Summary

Deliverables A032 Executive Summary A033 Memorandum by the Assistant Secretary Accepting the System for Operation A034 Memorandum of Understanding (MOU) or Equivalent

a) The contractor shall provide an executive summary thirty (30) calendar days prior to the scheduled end of the Contract base period and each year-end thereafter.

AQL: twenty (20) calendar days prior to the scheduled end of the Contract base period and each year-end thereafter.

5.2 Single Family Mortgage Asset Recovery Technology (SMART)

Deliverables:

A035 Single Family Mortgage Asset Recovery Technology (SMART)

a) The Contractor shall comply with HUDs EA information.

AQL: 100% Compliant with all applicable regulations.

b) The system shall maintain an operational capability 100% of the time, except during periods of documented scheduled maintenance or in the event of Force Majeure.

AQL: No deviation, except during periods of documented scheduled maintenance or in the event of Force Majeure.

What: Software Requirements Review Frequency: Randomly Who: GTR Disincentive:

The contract payment will be reduced by a percentage that is directly proportional to the percentage of down time that the Contractor's operational capability was reported inoperable during the quarter. For example, if the system was down for any reason for 60 hours during a quarter, the Contractors invoice would be reduced by 3% on the applicable CLIN as calculated as follows:

Operational Hours in Quarter = 2160 [(30 calendar days times 24 hours)* 3 months] Downtime = 60.

Percentage of downtime = 3% (60 divided by 2160 equals 2.7% rounded to nearest whole percentage). Reduction to Contractors monthly invoice = 3%.

5.2.1 The Contractor provides service and track servicing activities the Secretary Held portfolio excluding Reverse or HECM Mortgages and monitor contractor performance.

a) weekly and monthly reports AQL: 100% Compliant with all applicable regulations.

Who: GTR/GTM

5.2.2 The Contractor shall provide storage capacity to store and maintain electronic of servicing files. The electronic files must include scanned, computerized notes documenting all servicing actions relating to the loan (loan history), electronically imaged copies of all documents generated by or relating to any servicing actions, and electronically imaged copies of all correspondence sent or received relating to the loan. The Contractor shall provide capability to track and log all activity of relating any electronic files.

a) The Contractor shall create storage capacity and audit log AQL: no deviation

How: deliverables Frequency: upon completion and thereafter Who: GTR/GTR and/or SME

5.2.3 All files and data shall remain the property of HUD. All electronic files shall be accessible to HUD users according to the system defined user profiles. The Contractor shall ensure that HUD has ongoing direct access to a full backup copy of all data sets applicable to HUD systems.

5.2.4 The Contractor shall provide an automated business processes and capability to perform comprehensive loan servicing requirements necessary to meet HUD guidelines for servicing the various HUD loan programs.

5.2.5 The Contractor shall provide a system where users may access SMART over a LAN or remotely through a Cloud computing environment.

a) SMART system can be access through a secure FedRAMP.

AQL: 100% Compliant with all applicable regulations.

What: Deliverables How: secure access Who: CO and/or GTR/GTM

5.2.6 The Contractor shall provide Internal Quality Control including designing, testing, and executing internal control processes, procedures, tracking mechanisms and performing reviews FHA-insured portfolios.

a) The Contractor shall comply with HUD guidelines and regulations AQL: 100% Compliant with all applicable regulations.

What: Deliverables How: system walkthrough and testing with contractor Frequency: Continuous

5.3 Extensions and Variances Automated Requests System (EVARS)

Deliverables:

A036 Extensions and Variances Automated Requests System (EVARS)

a) - The system shall maintain an operational capability 100% of the time, except during periods of documented scheduled maintenance or in the event of Force Majeure.

AQL: 100% Compliant with all applicable regulations.

What: Deliverables How: The system shall maintain an operational capability 100% of the time, except during periods of documented scheduled maintenance or in the event of Force Majeure.

Frequency: Continuous Who: CO and/or GTR Disincentive:

The contract payment will be reduced by a percentage that is directly proportional to the percentage of down time that the Contractor's operational capability was reported inoperable during the quarter. For example, if the system was down for any reason for 60 hours during a quarter, the Contractors invoice would be reduced by 3% on the applicable CLIN as calculated as follows:

Operational Hours in Quarter = 2160 [(30 calendar days times 24 hours)* 3 months] Downtime = 60.

Percentage of downtime = 3% (60 divided by 2160 equals 2.7% rounded to nearest whole percentage). Reduction to Contractors monthly invoice = 3%.

5.3.1 The Contractor shall develop a rule-based event-driven system to provide an automated process to allow lender to submit requests, review, or appeal of approval and rejection of extensions and variances related to various loan programs.

a) EVARS system is compatible with industry standard and compliant with HUD's IT guideline AQL: 100% Compliant with applicable regulations

b) The Contractor shall provide web-based and rule-based services.

AQL: 100% Compliant with applicable regulations What: Deliverables How: secure access SMART/EVARS/ECLASS/Customer Support systems, system walkthrough and testing with contractor, reviewing deliverables Frequency: Continuous Who: CO and/or GTR/GTM

5.3.2 The Contractor shall provide a real-time web-based application which allows lenders to access via a secured World Wide Web from any device to complete and submit forms to HUD for extensions and variances.

a) The Contractor shall utilize web-based and rule-based technology that meets HUD's IT requirements to create EVARS application.

AQL: 100% Compliant with applicable regulations What: Deliverables How: complete access of the new system Frequency: Continuous Who: CO and/or GTR/GTM

5.3.3 The Contractor shall provide a capability to gather information needed for an extension of time or variance where the system is unable to make a determination and routed to appropriate HUD staff for review.

5.3.4 The Contractor shall provide a capability for interface with internal HUD systems or any external systems specified by the GTR. The Contractor shall provide equipment and software that meet HUDs minimum system requirements.

5.3.5 The Contractor shall provide a methodology to allow lenders to submit a file for extensions and variance requests. The Contractor shall process and upload a response file to the requested lender. The Contractor shall provide a capability to systematically verify and validate the submission and response files using EVARS and/or HUD databases.

Deliverables:

A037 Submission File for Extension Requests A038 Submission File for Variance Requests A039 Response File(s) A027 Response File

a) The Contractor shall verify and validate submitted file against EVARS/HUD database AQL: no deviation

5.3.6 The Contractor shall provide capability to upload, export, report, notification, alert and email from EVARS system.

a) The Contractor shall comply with Section 508.

AQL: 100% Compliant with applicable regulations

b) EVARS systems should be standardized with industry standard and compliant with HUD's IT guideline AQL: 100% Compliant with applicable regulations What: Deliverables How: complete access of the new system/reviewing deliverables Frequency: Continuous Who: CO and/or GTR/GTM

5.3.7 The Contractor shall maintain all features of the website insuring functionality, reliability, efficiency, and integrity of the structure.

a) The Contractor shall comply with Section 508.

AQL: 100% Compliant with applicable regulations

What: Deliverables How: complete access of the new system reviewing deliverables Frequency: Continuous Who: CO and/or GTR/GTM

5.4 Electronic Courses on Loss Mitigation and Servicing System (ECLASS)

Deliverables:

A040 Electronic Courses on Loss Mitigation and Servicing System (ECLASS)

a) - The system shall maintain an operational capability 100% of the time, except during periods of documented scheduled maintenance or in the event of Force Majeure.

AQL: 100% Compliant with applicable regulations What: Deliverables How: SMART/EVARS/ECLASS/Customer Support systems Frequency: Continuous Who: CO and/or GTR Disincentive:

The contract payment will be reduced by a percentage that is directly proportional to the percentage of down time that the Contractor's operational capability was reported inoperable during the quarter. For example, if the system was down for any reason for 60 hours during a quarter, the Contractors invoice would be reduced by 3% on the applicable CLIN as calculated as follows:

Operational Hours in Quarter = 2160 [(30 calendar days times 24 hours)* 3 months] Downtime = 60.

Percentage of downtime = 3% (60 divided by 2160 equals 2.7% rounded to nearest whole percentage). Reduction to Contractors monthly invoice = 3%.

5.4.1 The Contractor shall provide FHA lenders, housing counseling agencies, HUD and other non-profit organizations a web-based interactive Servicing and Loss Mitigation training and notifications to various related conferences.

a) Online ECLASS training is compatible with industry standard.

AQL: 100% Compliant with applicable regulations What: Deliverables How: reviewing deliverables Frequency: Continuous Who: CO and/or GTR/GTM

5.4.2 The Contractor shall provide the instructors with the ability to record class attendance and test results online.

5.4.3 The Contractor shall provide a real-time registration, tracking online attendance, status and progress of each class/module, keeping grades, certificate of completion.

5.4.4 The Contractor shall provide an interactive, visual online training class and also flexibility to allow students schedule their training at anytime, anywhere on any device.

5.5 Accounting - Financial Functions

Deliverables:

A041 Federal Credit Reform Act and the US Standard General Ledger Accounting Transaction Format A042 Accounting and Financial Function/Module

5.5.1 Manage the operations of financial activities - The Contractor shall provide a capability to manage the operations of financial activities a monthly basis to properly account for the Single Family secretary-held cases in inventory:

5.5.2 The Contractor shall ensure and provide a capability to prepare proper and accurate proprietary and budgetary accounting transactions

5.5.2.1 The Contractor shall provide the capability to record transactions in conformity with accounting principles generally accepted in the United States of America applicable to Federal agencies (Fergal) as promulgated by the Federal Accounting Standards Advisory Board (FASAB), adhere to Federal government accounting guidance issued by the Office of Management and Budget and ensure that all accounting transactions comply with the Office of Management and Budget’s (OMB) Financial Management Line of Business (FMLoB) requirements, the Federal Credit Reform Act of 1990 (FCRA), OMB Circular A-123 Self-Assessment and OMB Circular A-127 Revised, Financial Management Systems.

Deliverables A043 Financial Management System Assessment - A-127 Self-Assessment A044 OMB Circular A-127 Revised, Financial Management Systems A045 OMB Circular A-123 Self-Assessment

a) The Contractor shall comply with the Office of Management and Budgets (C) Financial Management Line of Business (FMLoB) requirements, the Federal Credit Reform Act of 1990 (FCRA), and OMB Circular A-127 Revised, Financial Management Systems.

AQL: 100% Compliant with applicable regulations What: Deliverables How: OMB and File Format Frequency: upon completion and thereafter

5.5.2.2 The Contractor shall use FHA-approved Posting Models to record all transactions including disbursement (accounts payable) and collection (accounts receivable) transactions. The FHA has approved posting models and will provide the most recent at the end of each fiscal quarter. The accounting GTM will notify the Contractor of any subsequent changes to FHAs approved Posting Models within five business days of the change.

5.5.2.3 The Contractor shall record all accounting transactions according to FHAs implementation of the Federal Credit Reform Act and the US Standard General Ledger.

a) The Contractor shall record all accounting transactions according to FHAs implementation of the Federal Credit Reform Act and the US Standard General Ledger.

AQL: No deviation.

What: Deliverables How: review the deliverable Frequency: upon completion and thereafter

5.5.2.3.1 The Contractor shall create entries by fund, risk category/section of the act, cohort year, etc. for each accounting area identified above.

5.5.2.3.2 The Contractor shall provide the ability to add additional funds, fund attributes, risk categories, etc. as mandated by future legislation and/or policy changes.

5.5.2.4 The Contractor shall provide the capability to develop and deliver accounting standards to:

a) The Contractor shall comply with the Office of Management and Budgets (C) Financial Management Line of Business (FMLoB) requirements, the Federal Credit Reform Act of 1990 (FCRA), and OMB Circular A-127 Revised, Financial Management Systems.

AQL: No deviation.

What: Deliverables How: deliverables Frequency: upon completion and thereafter

5.5.2.5 The Contractor shall provide a capability to create roll forward account balances from the end of one fiscal year to establish beginning account balances for the new fiscal year.

5.5.3 Interface transaction data files - The Contractor shall produce the transaction data file that will be interfaced into the Federal Housing Administration Subsidiary Ledger (FHASL) on a daily basis.

Deliverables:

A046 Data & File(s) Transfer

a) The Contractor shall comply with the Office of Management and Budgets (C) Financial Management Line of Business (FMLoB) requirements, the Federal Credit Reform Act of 1990 (FCRA), and OMB Circular A-127 Revised, Financial Management Systems.

AQL: No deviation.

What: Deliverables How: deliverables Frequency: upon completion and thereafter

5.5.3.1 The Contractor shall use the FHA-approved interface file formats when creating interface files with the FHASL. The accounting GTM will notify the Contractor of any subsequent changes to FHAs approved file formats within five business days of the change.

5.5.3.2 The Contractor shall verify that its interface files are compatible with the data elements referred to as chart fields used by the FHASLin all accounting ledgers as necessary

5.5.3.3 The Contractor shall validate and report successful loading of interface files. In the event of unsuccessful loading of any interface file, the Contractor shall provide an automated failed interface report with specific error details for review by the Government. The Contractor shall then be required to resolve all interface loading errors within one business day.

5.5.4 Create and/or modify various trial balance reports based on client needs per Treasury requirements - The Contractor shall create, maintain and/or modify trial balance reports within the subsidiary system

5.5.5 Maintain subsidiary system crosswalk - The Contractor shall update the subsidiary systems crosswalk, as needed, by accounting area posting model(s), under the direction of the accounting GTM when requested by the General Ledger Division. Updates are required to maintain accurate posting of the FHASL file. The accounting GTM will provide most recent version of crosswalk and posting models at contract effective date.

5.5.6 The Contractor shall provide quality assurance processes of the accounting functions.

5.5.6.1 The Contractor shall generate month-end closing procedures to summarize all accounting transactions and transmit these transactions to the FHASL.

5.5.6.2 The Contractor shall close Accounting Period financial transactions in the Contractors business services General Ledger, and update the FHA General Ledger (FHASL).

5.5.6.3 The Contractor shall validate transaction detail report activity against transaction data file activity prior to interface

5.5.6.4 The Contractor shall validate transaction detail report activity against trial balance reports daily

5.6 Customer Support

Deliverables:

A047 Customer Support Module

a) The Contractor shall develop, specify and maintain different categories to appropriately address each business and technical functions of BSP including SMART/EVARS and ECLASS.

AQL: No deviation.

What: Customer Support How: Customer Support setup Frequency: upon completion

5.6.1 Customer Support Helpdesk

Deliverables A048 Customer Support Helpdesk

a) The customer help desk phone number and email systems shall be operational within one hundred fifty (150) calendar days from contract the effective date of the contract and available during normal business hours seven (7) a.m. to seven (7) p.m. in geographical time zone

5.6.2 Response Time

a) The average wait time for all callers who choose to speak to a Customer Service Representative shall be no more than one (1) minute for 75% of all calls received for the quarter.

AQL: The wait time for all calls is no more than one (1) minute for 75% of all calls received for the quarter.

What: Deliverables How: The average wait time for all callers who choose to speak to a Customer Service Representative shall be no more than one (1) minute for 75% of all calls received for the quarter.

Frequency: quarter report Who: CO and/or GTR Disincentive:

For each 15-second increment in which the average wait time is longer than the standard, the Contractors invoice would be reduced by 1% on the applicable CLIN (the estimated quantity applicable to the quarter in which the disincentive is calculated) and applied to the quarter reviewed. In no event shall it exceed a maximum of 6% per quarter for the invoice)

5.6.2.1 Customer Inquiries

a) The Contractor shall respond to telephone inquiries not later than 12 noon or one (1) business day of the date the call was placed to the Contractor's office.

AQL: No deviation.

b) The Contractor shall respond to written and electronic inquiries no later than two (2) business days following receipt of the inquiry.

AQL: No deviation.

What: Deliverables How: reviewing deliverables Frequency: Randomly

5.6.2.2.

Governmental Inquiries

a) The Contractor shall notify the GTR not later than twenty-four (24) hours following receipt of any request for information from an elected or public official. and shall, not later than two (2) business days of said request, provide written information to assist HUD in preparing a response.

AQL: No deviation.

5.6.3 The Contractor shall search databases for customer information, prior calls, and related issues; and provide appropriate assistance to the Customer. The Contractor shall escalate the call either warm or cold transfer to the appropriate HUD office if the Contractor determines HUD expertise is required to complete the call. When a call is transferred, the Contractor shall remain on the line until the connection to the transfer is completed. The Contractor shall document all calls for reporting and auditing purposes. The Contractor shall not transfer more than 20% of all calls.

a) The Contractor shall not transfer more than 20% of all calls.

AQL: No deviation.

What: Deliverables How: deliverables Frequency: quarter report Who: GTR/GTM Disincentive:

For each percent increment in which the transfer call is more than the standard, the Contractors invoice would be reduced by 1% on the applicable CLIN (the estimated quantity applicable to the quarter in which the disincentive is calculated) and applied to the quarter reviewed. In no event shall it exceed a maximum of 6% per quarter for the invoice)

5.6.4 The Contractor shall gather basic information such as caller demographics, document the purpose of the call before transferring the call to NSC.

5.6.5 The Contractor shall log all calls received and electronic messages forwarded from the National Servicing Center to the contractor's Customer Support as a separate call for each classified categories of the BSP.

5.6.6 The Contractor shall provide capability to track all inbound and outbound calls and document correspondences.

5.6.7 The Contractor shall provide written procedures and Help Desk Procedures and Frequently Asked Questions (FAQ) to assist all inbound inquires.

Deliverables:

A049 Help Desk Procedure and FAQ

5.7 Production Environment

A050 Production Environment

5.7.1 Audit Logs

Deliverables A051 Audit Logs

a) The Contractor shall create storage capacity and audit log.

5.7.1.1 Web Sites/Server Availability

a) The Contractor shall comply with HUDs EA information.

AQL: 100% Compliant with applicable regulations

b) The system shall maintain an operational capability 100% of the time, except during periods of documented scheduled maintenance or in the event of Force Majeure.

AQL: No deviation, except during periods of documented scheduled maintenance or in the event of Force Majeure.

What: Deliverables How: The system shall maintain an operational capability 100% of the time, except during periods of documented scheduled maintenance or in the event of Force Majeure.

Frequency: Continuous Who: CO and/or GTR/GTM any given users Disincentive:

Contract payment will be reduced by a percentage that is directly proportional to the percentage of time that the Contractors system was inoperable during the quarter. For example, if the system were down for any reason for 60 hours during a quarter, the Contractors invoice would be reduced by 3% on the on the applicable CLIN as calculated as follows:

Operational Hours in Quarter = 2160 [(30 calendar days times 24 hours)* 3 months] Downtime = 60.

Percentage…