Questions_and_Answers.docx

SEC Held Loan Servicing

1. Schedule B – CLINS 0001 – 0003 – Period of performance is same period for all three CLINS.

HUD Response: CLIN 0001 – Transition Phase I – Begins on the effective date of the contract for a period not to exceed 60 days unless otherwise noted by the Contracting Officer. Actual dates will be provided upon award.

CLIN 0002 – Transition Phase II - Begins on the 61st day from the effective date of the contract for a period not to exceed 60 days unless otherwise noted by the Contracting Officer. Actual dates will be provided upon award.

CLIN 0003 - Base Year -estimated 9 months. Actual dates will be provided upon award.

2. Transition-In Period – Given that the current Sec Held contract includes the hosting and operation of the SMART system, but under the new contract a new BSP vendor will host and operate the system, how will this impact the Transition-In period and potential for delays in the BSP contract?

HUD Response: There should be no impact.

3. Given that the new contract will require the outfitting of a new servicing center, transfer of over 450,000 paper collateral files, implementing a new Call Center, hiring and training staff on a new system, is it practical to expect all this work to be completed in 105 days?

HUD Response: Yes, it is required.

4. B.4 Please provide a detailed matrix of all anticipated expenses, and designated as reimbursable or non-reimbursable and associated volumes over the past 12 months.

HUD Response: A detailed matrix of all anticipated expenses will not be provided. If the offeror has servicing experience, anticipated expenses should be known. Reimbursable expenses are noted throughout the PWS. If not noted, then it is not reimbursable.

5. CLINS 3, 7, 11, 15, 19 Loan Servicing – Please provide a matrix of the number of loans and transaction volumes by type for each of the CLIN periods.

HUD Response: Loan Portfolio Size as of February 2017. Transaction volumes are not available.

6. SOW 1.14 says the Transition in is 120 days, but Section B says 9 months of Servicing, please clarify.

HUD Response: Transition Phase I – Begins on the effective date of the contract for a period not to exceed 60 days unless otherwise noted by the Contracting Officer. Actual dates will be provided upon award.

Transition Phase II - Begins on the 61st day from the effective date of the contract for a period not to exceed 60 days unless otherwise noted by the Contracting Officer. Actual dates will be provided upon award.

Base Year -estimated 9 months. Actual dates will be provided upon award.

7. SOW 1.14 Transition-In – Can HUD provide a copy of the SMART User Manual in order for bidders to understand the type of transactions and staff that will be required?

HUD Response: No

8. SOW 1.14 Transition In / Phase One – Please explain the requirements for the following: “obtain all licenses, permits, bonds and qualifications”?

HUD Response: If the offeror has servicing experience, then the offeror should understand what is necessary or required to transact business within the contract area of loan servicing. For example, licensing to service loans in each state or as required by state law, etc.

9. SOW 1.14 Transition In /Phase One – Please explain the requirements for the following: “implement the information technology”?

HUD Response: Information technology required to set up or run within the offeror’s infrastructure.

10. SOW 1.14 Transition In /Line of Credit – Since all disbursements for Sec Held loans are made through Treasury, why is the contractor required to post a $1,000,000 Line of Credit?

HUD Response: It is a requirement of this PWS, not related to disbursements.

11. SOW 1.14 Transition In /Phase One/Loan Servicing Guide – Can HUD please provide a copy of the current Loan Servicing Guide and does it include detailed step procedures for transaction processing and use of SMART?

HUD Response: No

12. SOW 1.14 Transition In /Phase Two – Please explain how the contractor will be compensated for any delays in implementation due to the SMART system or other activities not under the control of the contractor.

HUD response: This contract contains FAR clause 52.242-17 -- Government Delay of Work. Any delays would be dealt with in accordance with this FAR regulation.

13. SOW 1.14 Transition In /Phase Two – Loan Inventory – Please clarify this requirement with regard to time allotted, (appears 35 days), volumes and the specific scope of work. Are you saying that all physical collateral files must be transferred, shelved, and validated against electronic loan records and images in SMART?

HUD Response: No, reconcile physical file to the inventory list or manifest.

14. SOW 1.14 Transition In/Phase Two/ Welcome Letters – Please clarify given the new BSP contractor who will be responsible for updating SMART and producing the Welcome letters? How many will be produced, who will pay for paper, packaging, and postage of letters and what is the volume?

HUD Response: The BSP contractor will not be responsible for producing the Welcome letters. That is the responsibility of the Sec-Held Loan Servicing Contractor as identified in this PWS 1.14. This is a fixed price contract. All expenses are the Contractor’s expense unless otherwise noted as reimbursable.

15. SOW 1.14 Transition In/Phase Two/Fully Operational – Please clarify, the first paragraph indicates 120 days from contract award, but subsequently indicates 105 days from contract award?

HUD Response: The PWS states that at 105 days the Contractor shall begin performing all aspects of the PWS, but shall be at full servicing capacity at 120 days from the effective date of the contract award.

16. 5.3.13 Posting Models – Is the posting model in SMART, if so isn’t this a BSP vendor responsibility and if so, how can the Servicing contractor have a performance standard?

HUD Response: The BSP Contractor will program SMART according to the posting models, but it is the Sec-held Loan Servicing Contractor’s responsibility to record all transactions, not the BSP contractor.

17. 5.3.14 Accounting Requirements - If the accounting is in SMART, aren’t these requirements the BSP vendor responsibility and if so, how can the Servicing contractor have a performance standard?

HUD Response: The transactions are entered into SMART by the Sec-held Loan Servicing Contractor, therefore, the responsibility to perform 5.3.14 is the Sec-held Loan Servicing Contractor.

18. 5.3.15 – 5.3.18 if the accounting is in SMART, aren’t these requirements the BSP vendor responsibility and if so, how can the Servicing contractor have a performance standard?

HUD Response: The transactions are entered into SMART by the Sec-held Loan Servicing Contractor, therefore, the responsibility to perform the accounting functions is the Sec-held Loan Servicing Contractor.

19. Will the servicing contractor have authority to request changes to the SMART system to correct problems and improve performance and if so will HUD fund the changes?

HUD Response: The Sec-held Loan Servicing Contractor will have the ability to request changes and report issues needing correction with HUD approval.

20. Will the SMART system be Web-based under the new contract and will the servicer have full systemic access to SMART data and be able to interface external systems in a Web Services or batch mode?

HUD Response: Yes, SMART will be web-based. The Sec-held Loan Servicing Contractor will have the access necessary to service the loan portfolios.

21. 1.9 Special Qualifications – Please explain why HUD is requiring an IT Manager as a Key person if all the systems are being provided by HUD?

HUD Response: The IT Manager requirement is necessary to ensure the level of expertise is available to work with the BSP contractor on connectivity with SMART and interfaces required by the Sec-held Servicing contractor.

22. Please advise how release fees will be treated under this contract, as it appears they are not reimbursable expenses?

HUD Response: Please refer to Section 5.3.20 of the PWS.

23. Per Page 10 of the RFP – The Key Personnel listed does not include a Loan Servicing Manager, however, on Page 24 under Personnel a Loan Servicing Manager is listed. Please confirm that this is a Key position.

HUD Response: There is an error on page 24. The Loan Servicing Manager is not a required position under Key Personnel.

24. Per Page 12 of the RFP can HUD elaborate on what is considered “fully equipped office”, considering the length of time to obtain permits, 30 days would appear to be problematic? Will HUD consider 120 days?

HUD Response: The office shall be established and in place to begin Phase One.

25. Per Page 15 of the RFP, “The Contractor shall complete the inventory of files not later than ninety-five (95) calendar days from the effective date of the contract”. Does this refer to just the transfer and reconciliation of each physical file to the inventory list or does this also include the review of the current SMART system scanned documents to the review of the physical files?

HUD Response: No, reconcile physical file to the inventory list or manifest.

26. What automated, manual interfaces or access to the SMART data base will the SMART BSP provide the new contractor, and their service providers, i.e. Release Service Provider, bankruptcies, bulk imaging uploads, document management, ability for comparison of Notice Letters and spreadsheets for missing Partial Claim Notes and mortgages creation of loan sale manifests, etc.?

HUD Response: The SMART BSP is not required to provide any service providers. The Sec-held contractor is responsible to set up their own service providers. The BSP Contractor will work with the IT Manager of the Sec-held Loan Servicing contractor with setting up the interface with the SMART BSP.

27. Per Page 46 of the RFP, will a SMART system Report Writer be available for the Servicing Contractor to generate ad-hoc reports? Isn’t the capability to export the referenced reports into excel to be provided by the SMART BSP rather than the Servicing Contractor?

HUD Response: 1) Servicing Contractor will be able to develop AD Hoc Reports. 2) No, the Servicing Contractor will be able to export reports into excel.

28. Per Page 46 of the RFP, will HUD be adjusting the first annual report dates for Section 5.8.3 SSAE 16 Audit?

HUD Response: Yes, it will be based on contract effective date.

29. How will the government provide the 800#, i.e. analog, PIR, Sip Trunk, etc?

HUD Response: HUD will ensure the Responsible Organization of the 800# is transferred to the carrier selected by the Sec-held Loan Servicing Contractor.

30. Who is the current incumbent?

HUD Response: Novad Management Consulting LLC

31. What systems are required for this project?

HUD Response: HUD systems are identified in Section 3 of the PWS.

32. Is this a fixed firm price?

HUD Response: Yes

33. Will we need to establish limited power of attorney and/or deposit account? see page 13 of RFP (transition in-Phase 1).

HUD Response: The contract will prepare LPOAs and submit to HUD for signature. Yes, a deposit only account is required for transfer of collections on certain portfolio types.

34. PWS 1.13 Reimbursable Items provides an explicit list of items which are reimbursable by the government in addition to one-time reimbursable expense, e.g. training. It is noted that expenses such as postage or releases are not included as reimbursable. Will the government please provide a list of non-reimbursable expenses which should be built into the Offerors price along with anticipated volumes?

HUD Response: Reimbursable items are identified throughout the PWS. If an item is not noted as reimbursable, then it is considered not reimbursable.

35. PWS 4.4 Contractor responsibilities: Please provide estimates on the amount of correspondence to be date stamped on a daily, weekly, monthly basis.

HUD Response: Currently the estimated receipt of packages, boxes and mail is approximately 150 pieces per day. That includes Fed-Ex, USPS, UPS, and pick-up from HUD.

36. PWS 5.1.5 – states that Puerto Rico legal documents must be kept in fire proof files. Please provide an estimate on the number of these files and the growth rates.

HUD Response: Currently the portfolios for Sec-held loans in Puerto Rico make up a total of 7 fireproof cabinets weighing over 1,000 pounds each.

37. Attachment 5, Quality Assurance Surveillance Plan (QASP), Appendix 1 – Surveillance Matrix, PWS paragraphs: 5.3, 5.3.1, 5.3.20, 5.6.4.3, and 5.7.1.

Each of the identified PWS paragraphs include an AQL that is inspected monthly. Each also includes a disincentive that is applied to all invoices submitted by the contractor during the reporting quarter (3 months). Is it the Government’s intent that an AQL miss in only one month of a reporting quarter results in a penalty applied to all three months of the reporting period? For example, if the contractor underperforms by 1% point in month one, but improves and meets the AQL for the subsequent months, will the contractor be penalized by 1% for all three monthly invoices, even though two of the three months met the AQL requirement?

HUD Response: Yes

38. Could you verify that all key personnel are required on this solicitation? The key personnel look similar to the SMART and the HECM solicitations and we want to verify that all the positions are needed, especially an IT manager.

HUD Response: Key Personnel includes Contract Manager, Alternate Contract Manager, Cash Manager, Quality Control Manager and IT Manager.

39. Could you verify the amount of loans and that Schedule B has the contractor billing one-line item for loan servicing per month, regardless of the size of portfolio?

HUD Response: Correct. There is one-line item or CLIN billed for loan servicing each month regardless of portfolio size.

40. Could you please give an example of an invoice and how the disincentive mentioned Section 5.3 would work and how it could affect contractor billing?

HUD Response: If the standard is 97% for 5.3.1 and for the quarter you met 95%, the disincentive for the quarter reviewed is 2% (1% for each percentage below the standard). The quarter invoice for CLIN# totaled $2,000.00, therefore, the disincentive would be $2,000 (quarter invoice total) X 2% = $40.