19 - SIN 6531-1 4 5 Employee Relocation SOW

Transportation, Delivery and Relocation Solutions (TDRS) Solicitation FBGT-GG-050001-B (Refresh 19)

Statement of Work

Table of Contents

Statement of Work Employee Relocation

Quality Control .................................................................................................................................................... 3 1.

Services Outside the Scope of Contract ............................................................................................................. 3 2.

Industrial Funding Fee ........................................................................................................................................ 3 3.

Scope & Complexity ............................................................................................................................................ 4 4.

Interpretation of Task Orders .............................................................................................................................. 4 5.

Data Communications Capabilities ..................................................................................................................... 4 6.

Correspondence ................................................................................................................................................. 4 7.

Definitions ........................................................................................................................................................... 4 8.

SIN 653-1 – EMPLOYEE RELOCATION SERVICES - HOMESALE SERVICES

SIN Description

1. Pricing

2. Reports

3. Specific Requirements

A. Home Marketing Assistance B. Homesale Assistance C. Title Search, Broker Market Analysis, Inspections D. Home Inspections and Inspection Criteria E. Appraised Value Sale F. Amended Value and Amend-from-Zero Sales G. Mortgage Payoff vs. Mortgage Servicing H. Vacating and Equity Distribution I. Cancellation of Transaction J. Destination Area Services K. Mortgage Counseling

SIN 653-4 – EMPLOYEE RELOCATION SERVICES – ADDITIONAL SERVICES

SIN Description

Specific Requirements ...................................................................................................................................... 32 1.

A. Property Management Services Reports ............................................................................................................................................................. 34 2.

Pricing ............................................................................................................................................................... 35 3.

SIN 653-5 – EMPLOYEE RELOCATION SERVICES – AGENCY CUSTOMIZATION SERVICES

SIN Description

1. Pricing

Reports ............................................................................................................................................................. 39 2.

Specific Requirements ...................................................................................................................................... 41 3.

A. Buyer Value Option Homesale Services B. Special Handling Homesale Transactions C. Destination Area Services D. Mortgage Counseling

References

1. Worldwide ERC Appraisal Form and homeowner disclosure statement shall be used in conjunction with applicable relocation homesale service. (http://www.worldwideerc.org)

2. Internal Revenue Service Revenue Ruling 2005-74 as referenced in IRS Revenue Bulletin 2005-51.

NOTICE to Contractors:

Contractors offering relocation homesale services under this Statement of Work shall adhere to the criteria listed in IRS Revenue Ruling 2005-74 for nontaxable status of homesale expenses and service fees. If the Contractor’s homesale procedures are not structured in compliance with IRS Revenue Ruling 2005-74, then it is incumbent upon the Contractor to notify the ordering agency when responding to solicitations for services and/or prior to accepting a task order.

Contractors or Contractor supply network providers offering a referral rebate program for any portion of the departure or destination services, where the government reimburses or covers the cost of sales commissions paid to a real estate broker, Contractors or Contractor supply network providers must alert the employee that the rebate funds must be remitted to the government. The employee may not receive a referral benefit on an item for which the government pays a reimbursement benefit.

Employee Relocation

Employee Relocation Services-OPEN TO ALL SOURCES:

Schedule 48 SIN NAICS

653-1 & 5 531210 - Offices of Real Estate Agents and Brokers 531390 - Other Activities Related to Real Estate

653-4 531210 - Offices of Real Estate Agents and Brokers 531390 - Other Activities Related to Real Estate 541511 - Custom Computer Programming Services

Federal agencies purchased over $120,000,000 in employee relocation services from this Schedule during fiscal year 2017. The General Services Administration (GSA) has had the pleasure of offering employee relocation through its GSA Schedules program since 1992, leveraging the Government’s purchasing power by soliciting for employee relocation services on a commercial basis to the maximum extent practicable. Services included, but are not limited to:

Homesale Services

Expense Management

Property Management

Entitlement Counseling

Household Goods

Relocation Software

The Contractor is encouraged to provide the full continuum of relocation services as detailed in the SIN Descriptions.

Relocation services shall be made available to eligible employees of an ordering agency according to individual agency policy. Eligible employees may use any or all of the services for which they are eligible and authorized. However, employees, upon authorization into the program by their agency, may not use both the homesale services and property management services simultaneously.

Employees whose residence is ineligible for homesale services and employees who do not have a residence to sell may be eligible for all other services under this contract. Determination of an employee's eligibility to participate in any part of the program is solely the responsibility of the agency and shall not be subject to dispute.

http://www.worldwideerc.org/

Quality Control 1.

For all services and SINs, the Contractor shall maintain a system of quality control and correction of inferior performance that provides:

Prompt response to Employee service requests, questions and concerns. In particular, the Government requires that the Contractor demonstrate a high level of concern for and understanding of the relocating Employee’s personal concerns, time schedule and desire for personalized assistance (e.g., appraisal appeal/reevaluation process) and coordinate the various services selected for the Employee.

Prompt notification to the Government of problems, failure to meet required timeframes, other contract requirements and other concerns or suggestions that will enhance service and/or reduce cost.

Contractor shall administer the GSA Homesale Survey process upon acquisition of 653-1 and 653-5 homesale transactions. The link and guidelines used for this satisfaction survey will be provided by the GSA Program Office (ERRC).

Services Outside the Scope of Contract 2.

If the Contractor customarily provides other relocation services to the transferee not at the expense of the Government, the Contractor may advise the Government Employee of these services and costs. The Contractor must inform the Employee that such services are outside the scope of the ordering agency’s BPA or task order; that the Employee is solely obligated for the expenses, that the Government does not endorse the use of those services and that the Government has not determined the prices charged to be fair and reasonable. The Government will not be billed for these services.

All services are to be provided in accordance with the Federal Travel Regulation (FTR) (Relocation Policy/FTR), and are to follow industry-accepted Worldwide ERC© most current appraisal form and guidelines for relocation appraising and buyer-value/amended value programs. Where Worldwide ERC© guidelines conflict, the contract shall prevail.

Industrial Funding Fee 3.

The current Industrial Funding Fee (IFF) is 0.75% as identified in clause 552.238-74. For completed homesale transactions on or after July 1, 2011, under SINs 653-1 and 653-5 (Appraised Value, Amended Value, Buyer Value Option and Special Handling), Contractor will remit an additional $325 per transaction for homesales completed during the reporting period (the “Homesale Transaction Fee”). The Homesale Transaction Fee is due at the same time as the 0.75% IFF in accordance with Clause 552.238-74. The Homesale Transaction Fee requirements are outlined in TRANSACTIONAL FEE AND SALES REPORTING, Clause 538.273(b)(1)k, which states:

The Contractor shall report the total number of transactions for applicable Special Items Numbers (SINs) made under the contract by calendar quarter. The Contractor shall remit a fee per transaction at the rate set by GSA as follows:

The Contractor shall remit the transactional fee(s) in U.S. dollars within 30 calendar days after the end of the reporting quarter; final payment shall be remitted within 30 days after physical completion of the last outstanding task order or delivery order of the contract. The transactional fee represents a set fee per transaction. This fee is set at the discretion of GSA, who has the unilateral right to change the fee at any time. The transactional fee covers an additional level of service that is provided by GSA to the Contractor.

All other terms of clause 552.238-74 Industrial Funding Fee and Sales Reporting apply.

The Homesale Transaction Fee is applied when an employee’s home is sold utilizing the following transaction options in accordance with the Statement of Work for SIN 653-1 & 653-5 under Schedule 48: (i) Buyer Value Option Transaction;

(ii) Amended Value or Amend-from-Zero Transaction; (iii) Special Handling Transaction; (iv) Appraised Value Transaction.

3.1. Tailoring the Statement of Work

The Statement of Work as provided herein gives specific instructions regarding commercial relocation services. Agencies http://www.gsa.gov/portal/content/105054?utm_source=OGP&utm_medium=print-radio&utm_term=relopolicy&utm_campaign=shortcuts are not required to develop a comprehensive Statement of Work applicable to their BPA. This Statement of Work will apply to the agency’s BPA. Ordering agencies, however, may need and are permitted to tailor specific requirements to meet agency specific goals as long as the tailoring does not change the scope or purpose and intent. Tailoring is done at the task order or Blanket Purchase Agreement (BPA) level and may have an impact on the resultant price but in no case shall the price charged to the ordering agency exceed that of the GSA Schedule price. The following SOW requirements may not be tailored: required use of appraisers authorized by the Contractor, requirement for mortgage payoff under all pricing options for VA/FHA loans, prohibition to use auction properties as comparables in appraisals, and employee choice of mortgage lenders. Agencies are encouraged to review the tailored SOW requirements with GSA prior to releasing a Request for Quote (RFQ) for homesale assistance or move management services procured under the TDRS Schedule.

Scope & Complexity 4.

The Contractor shall: Provide a full range of services necessary to satisfy ordering agencies’ employee relocation requirements. The Government is seeking services that industry normally accords to commercial customers to the maximum extent practicable. Be capable of providing services for ordering agencies with multiple organizational levels and geographic locations nationwide and/or worldwide as specified in the Scope of the Contract. Be capable of handling multiple task orders simultaneously.

Interpretation of Task Orders 5.

Any interpretation of the agency task order shall first be referred to the Agency Move Coordinator (AMC) at the agency level. If unresolved, the issues shall then be referred to the agency contracting officer. Issues that remain open pertaining to policies should be escalated by the ordering agency to the Employee Relocation Resource Center (ERRC) Program Management Office at GSA.

Data Communications Capabilities 6.

Contractor shall provide a capability for electronic transmission of relocation service authorizations, on-line access to Contractor's database and electronic message transmission. Access to the Contractor's database is limited to viewing relocation services of the acquiring agency. No data will be allowed to be manipulated at any time. The Contractor shall establish sufficient safeguards to prevent unauthorized access. The Contractor’s database must contain, but not necessarily be limited to, property information and information sufficient to generate the required reports. The on-line system must allow the exchange of information between the agency and the Contractor (i.e., on-line authorization, on-line inquiry and on-line message system). Agencies must have access to all information regarding the relocation services provided to employees, including, but not limited to, conversations/counseling sessions between the Contractor and the employee, and on-line billing information.

Correspondence 7.

The Contracting Officer may require the Contractor to provide copies of all correspondence and documentation regarding the relocation of any federal employee obtaining services under this contract. Any such copies will be provided to the Government at no cost. The agency may request such correspondence and documentation with respect to any relocated employee of the agency who obtained services under this contract.

Definitions 8.

Acquisition Direct Costs: Shall mean the costs incurred by Contractor during the offer period. These costs include but may not be limited to; appraisals, home inspections and title work.

Agency Move Coordinator (AMC) – An individual within each Government agency designated as the primary liaison between that ordering agency and the Contractor. The Coordinator shall act within the scope of the contract and may not amend or modify the contract. The Coordinator shall be the contact point in settling disputes between the employee and the Contractor.

Amended Offer: Shall mean an offer extended to a relocating Employee from the Contractor to purchase the Employee’s property based upon a Bona Fide Offer from a qualified outside buyer that provides an equal to or greater than net cash return than the Appraised Value Offer would provide. The Offer is amended to reflect an equal or higher net offer amount.

Amended Value Sale: Shall mean the type of homesale transaction that occurs when the relocating Employee receives a Bona Fide Offer from a qualified buyer before the Employee has accepted an Appraised Value Offer from the Contractor. The Contractor amends its offer to match the outside sale price.

Amend-from-Zero Sale: Shall mean the type of homesale transaction that occurs when the relocating Employee receives a Bona Fide Offer from a qualified buyer before the Employee has received an Appraised Value Offer from the Contractor.

Anticipated Sales Price: Shall mean the price at which a property most probably would sell if exposed to the market for a reasonable time with payment to be made in cash or its equivalent. For purposes of this contract, anticipated sales price shall mean the price the property would command in an "as is" condition, except that adjustments may be made to reflect any repairs and inspections required to bring the property into conformance with applicable laws ordinances and codes.

Appraisal: Shall mean the process by which the Anticipated Sales Price of a residential housing unit, using the market data approach to value, is established. Also, it shall mean the form on which the Anticipated Sales Price is reported. The purpose of this appraisal is to establish the Anticipated Sales Price for a relocated employee’s residence and assumes an arm’s length transaction. This is done in accordance with the procedures outlined in the Worldwide ERC© Appraisal Guidelines, using the Worldwide ERC appraisal form.

Appraisal Guidelines: Shall mean current Uniform Standard of Professional Appraisal Practice (USPAP) as published by the Appraisal Standards Board (http://commerce.appraisalfoundation.org/html/USPAP2008/index.htm) and industry-accepted relocation appraisal guidelines, such as the Worldwide ERC© Appraisal Guidelines. In the event of a conflict, the terms and conditions of the contract shall prevail. The Worldwide ERC’s most current version of the relocation appraisal form is required to be used.

Appraised Value Offer: Shall mean an offer extended to a relocating employee from the Contractor to purchase the employee’s property based upon the average of a specific number of Appraisals conducted by Designated Certified Appraisers.

Appraised Value Sale: Shall mean a contract of sale accepted by a relocating employee from the Contractor to buy the employee’s Home based upon the Appraised Value Offer.

As-is Condition: Shall mean the property “as-is” on the date of the appraisal (inspection) with adjustments made to reflect reactions from a typical buyer’s point of view. These adjustments should reflect the comparative differences between the subject property and similar properties in that market. The actual cost to cure may not be the appropriate measure for this adjustment.

Authorization: Shall mean when an agency informs the Contractor in writing or electronically that an employee is eligible to receive contracted services.

Bona Fide Offer: Shall mean an offer from an able and willing buyer, not contingent upon the sale of the potential buyer's home and can reasonably be expected to go to settlement at its original terms and conditions within 60 days of execution of the offer agreement. The offer must not contain any contingencies except those providing that the purchaser must qualify for financing under terms or conditions generally prevailing in the marketplace at the time the offer is made and those providing that the seller must convey marketable and insurable title.

Broker Market Analysis (BMA)/Broker Price Opinion (BPO): Shall mean a broker’s written market analysis of recent comparable sales and listings with suggestions for marketing strategies.

Broom Clean Condition: Shall mean the condition that the property is left, when vacated by the employee and family, or tenant. The property shall be in substantially the same condition as appraised and all major components in acceptable working order, with the interior, exterior and out-buildings free of debris, paint cans, tools and other belongings. The Contractor’s realtor representative is required to perform a walk-through within two (2) days of formal acquisition or employee’s vacate date, whichever is the later, prior to final equity disbursement. The agent/broker is to confirm to Contractor that the property is broom clean with no debris or personal property left behind. Contractor is required to notify agency and employee of any problems within one (1) day of the receipt of the agent/broker inspection report.

http://commerce.appraisalfoundation.org/html/USPAP2008/index.htm

Buyer Value Option (BVO): A buyer value option transaction is a variation of the amended value transaction in which no appraisals are obtained and no initial offer is made by the Contractor, to the employee. Although these transactions are sometimes referred to as "amend-from-zero" or "offers prior to appraisal," there is no initial appraised value offer to "amend." Rather, the only unconditional offer is made at the "buyer value," that is, the fair market value as determined by a Bona Fide offer from a potential buyer.

Closing Costs: Shall mean expenses incidental to the sale of real estate, including broker commission, loan, title and appraisal fees.

Comparable Property Criteria: Shall mean the comparable properties selected by the appraisers or offered by the employee for consideration. The comparables must be in the same neighborhood, development, subdivision or complex unless there are not sufficient comparable sales, in which case the appraisers may use comparables from the general market areas as they deem appropriate. For homes in markets in which property foreclosure sales and listings constitute a significant percentage (at the discretion of the appraisers unless a specific percentage point is agreed upon at the task order or BPA level), appraisers should notify the Contractor of intent to use those comparables PRIOR to establishing the Anticipated Sales Price of the home and provide documentation from the appraisers explaining why the foreclosure(s) must be used as comparables. Contractor must then apprise the ordering agency of the appraiser’s intent to use foreclosures and forward copies of documentation to the ordering agency. Agency is encouraged to verify local foreclosure trends. If an appraiser cannot identify comparables per these criteria, appraiser must immediately notify the Contractor prior to completing the appraisal.

Contract Price: Shall mean the price at which the Contractor agrees to purchase the employee’s home, whether as an Appraised Value Offer, Amended Offer, Amend-from-Zero Offer, or Buyer Value Option Offer.

Contract of Sale: Shall mean a contract the buyer initiates which details the purchase price and conditions of the transaction and is accepted by the seller. Also known as an agreement of purchase.

Contracting Officer (CO): Shall mean the individual at GSA authorized and warranted to issue this contract and to make subsequent modification(s). The CO has the authority to make final determinations on matters of dispute regarding the Statement of Work of this contract.

Contractor: Shall mean a third party provider of relocation services where services are purchased by the government under the terms of this SOW. Also known as Relocation Services Company.

Deed-in-Blank: Shall mean a document that conveys title to the property from the employee to the Contractor when the Contractor’s name is not on the deed. This occurs when a property may not yet be resold to an outside buyer when the employee executes the sale. Typically, the employee provides the Contractor power of attorney to allow the Contractor to insert an outside buyer’s name on the document at a later date.

Delayed Appraisal Process: Shall mean a process where an agency has designated a specific period of time allocated for the Contractor to provide listing and marketing assistance in accordance with the agency guidelines before the appraisals are ordered. The time alloted is either 30, 60, 90 or more days and is designated at the BPA or task order level. The Delayed Appraisal Process allows the active marketing of the property to encourage a buyer value offer and is allowed under SIN 653-1 (all Pricing Options) and SIN 653-5 (Special Handling Properties). A delayed appraisal process differs from a BVO in that appraisals are intended and eventually ordered. A BVO program where appraisals are never intended or ordered is procured through SIN 653-5.

Designated Certified Appraiser: Shall mean an individual who meets all the requirements of applicable laws to practice as an appraiser and/or be certified in states and/or localities that have certification and/or licensing requirements for appraisers. Specific criteria for a designated certified appraiser include:

Primary income from single-family residential appraising (not from commercial and not from acting as a real estate broker)

Have knowledge and experience in using industry-accepted relocation appraisal guidelines, such as the Worldwide ERC appraisal form and standards

Familiar with market condition in areas of home location

Access to current location market data through multiple listing service or other home list and sale data service, when available

No present or future interest in the home, nor have a relationship that would affect an independent judgment in determining Anticipated Sales Price

Not be a Government employee and not be related to the employee or the Contractor by blood or marriage

Not have a relationship with the employee or the Contractor (personal or business) that would affect the objectivity and/or independence of the Appraisal

Not have appraised the home within the prior six months

Have ability to perform and deliver the Appraisal in accordance with Contractor specified timeframes

Appraiser’s fee is not based on a percentage (%) of the appraised value of the home or be contingent upon the sale of home

Direct Reimbursement of Homesale Expenses: Shall mean the reimbursements provided to an employee who has been authorized for relocation expenses and is entitled to reimbursement of homesale expenses under the FTR §302-11.200. Contractor may provide home marketing services designed explicitly for direct-reimbursement homesale efforts.

Disclosure Statement: Shall mean a statement made available to potential buyers that lists known information or defects relevant to the home. A local state disclosure statement may be required in addition to the disclosure statement from Worldwide ERC.

Double-Deed Recording Fees: Shall mean those fees levied in selected states (nine states as of January 2010) that do not permit use of Deed-in-Blank and require deeds to be recorded for each sale transaction (meaning the sales transacted between the employee and the Contractor and then separately between the Contractor and the buyer).

Employee: Shall mean an eligible Federal civilian or active duty service member of the Department of Defense.

Employee’s Immediate Family: As defined in Federal Travel Regulation 300-3.1.

Expiration Date: Shall mean the date by which the employee must accept or reject the offer for participation in the homesale program at the end of the Offer Period (as defined herein). Contractor will clearly identify the expiration date on the offer and will communicate the date verbally to both the ordering agency and employee. Expiration dates can only be extended with the agreement of the ordering agency, Contractor and employee and any costs incurred for updating of appraisals or inspections shall be borne by the Contractor.

Federal Travel Regulation: Shall mean the Federal Travel Regulation (FTR) (41 CFR Chapters 300-304) that governs travel and transportation allowances for Federal civilian employees. Chapter 302 of the FTR governs relocation allowances and is available for review on the Internet at www.gsa.gov/ftr.

Forecasting: Shall mean the process of analyzing historical trends and current factors as the basis for anticipating housing market trends. (In order to reflect any impact these trends will have on the subject property’s marketing time and sales price, a forecasting adjustment must be consistently applied to each comparable sale).

Foreclosure: Shall mean the legal process reserved by a lender to terminate the borrower`s interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property and keep the proceeds to satisfy its mortgage and any legal costs. Foreclosed primary residences may or may not be eligible for the homesale program depending on how far along in the foreclosure process and the agency may be charged the fee under Special Handling. Contractor is responsible for alerting the agency immediately upon knowledge of foreclosure, or default.

Home: Shall mean a completed residential dwelling, including a condominium or townhome, that is used as the employee’s principal residence and is the address from which the employee commutes to his/her permanent duty station on a regular basis, including land customarily considered part of a residential lot as well as all personal property normally sold with a residence according to local custom, and that is owned by the employee, and/or the employee’s Immediate Family, as described under FTR. Duplex or multi-family homes are eligible (with pro-rated fee as determined by FTR) under Special Handling, 653-5, Special Property Transactions.

Home Not Insurable: Shall mean a home that does not meet applicable industry criteria for the issuance of a standard form homeowners insurance policy at standard market rates as determined by a reputable insurance company authorized to conduct business in the area or a home in which the employee does not hold insurable title, as determined by a reputable abstract or title company authorized to conduct business in the area. Insurer may be a http://www.gsa.gov/ftr local insurance firm or national firm.

Home That Cannot Be Financed: Shall mean a home that does not meet generally applicable industry criteria for a mortgage loan at standard market rates, as determined by a reputable institutional lender, e.g., bank, savings bank or mortgage company authorized to conduct business in the area, including local lenders. Criteria for mortgage loans shall not be limited to particular types of loans, such as FHA, VA or loans eligible for repurchase under guidelines established by organizations such as "Fannie Mae" and "Freddie Mac."

Industrial Funding Fee (IFF): Shall mean GSA’s contracting and management fee that is built into the supplier’s price for the services contracted under this Schedule. Contract prices charged to ordering activities include the industrial funding fee (IFF).

Inspections: Shall mean a professional examination of a home`s major components which may include exterior, foundation, framing, plumbing, septic, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior. Additionally, inspections may be performed to identify evidence of infestation or contamination or other condition as described in this Statement of Work.

Joint Travel Regulation (JTR): Shall mean the regulations in this document pertain to per diem, travel and transportation allowances, relocation allowances, and certain other allowances of Uniformed Service members (including regular and reserve components). The Joint Travel Regulations may be found at https://www.defensetravel.dod.mil/Docs/perdiem/JTR.pdf.

Mandatory Marketing Period: Shall mean the period of time during which an employee authorized for homesale services is required to make a good faith effort to market the home. Typically, during the Mandatory Marketing Period, the employee must market the home at a price not to exceed a specified percentage of the average of two Broker’s Market Analyses (BMAs) or Appraisals.

Marketing Time: The average list-to-sell time for residential properties shall not exceed 120 calendar days.

Mobile Home: Shall mean a home designed with a frame for moving from one location to another. The basic design is the determining factor. Typically, behind the cosmetic work fitted at installation to hide the base, there are trailer frames, axles, wheels and /or tow-hitches. Additional factors include the presence of a HUD 1 sticker located on the structure, a permanent foundation, taxed as real property and financed with a FHA, VA or conventional mortgage.

Modifications that may have been made to the structure after it was moved to a specific location are not relevant.

Applicable state and local laws addressing the definition of mobile homes shall be considered in the interpretation of the contract. A mobile home may also be known as a manufactured home.

Modular Home: Shall mean a home that is built in sections at a factory and transported to the building site on truck(s) then contructed together by licensed contractors Modular homes are built to conform to all state, local or regional building codes at their destinations.

Mortgage Payoff: Shall mean that the Contractor will make full payment of all monies due to employee’s mortgage lender(s) at time of employee Equity Payment on an Amend-from-Zero Sale, Buyer Value Option or Appraised Value Sale. Contractor is responsible for ensuring that all mortgage liens are released by lenders and no further obligations of any kind are held by employee. Contractor will arrange for any mortgage escrow balances, if any at time of payoff, to be paid by mortgage lender to employee. In the event that lender issues mortgage escrow balance payment to Contractor, Contractor is obligated to pay employee. Mortgage payoff requirement may be waived if at the time of closing with a third party buyer, the third party buyer has assumed the employee’s mortgage(s) with a full lender approved mortgage assumption.

Mortgage Servicing: Shall mean that the Contractor shall purchase the home from the employee subject to any existing mortgages of record. Contractor will have full responsibility for the timely payment of mortgage payments as well as the subsequent payoff of the mortgage(s) upon close of the resale of the property or when the circumstances surrounding the mortgage(s) dictate that the mortgage(s) be paid off sooner, such as the need to free up employee VA/FHA benefits or the mortgage lender initiates rights for any due on sale provisions. Contractor will pay to employee the full balance of the mortgage escrow, if any, at time of the equity disbursement. Said payment should be made and documented as a credit to employee at time of Equity Payment. If the lender refunds the escrow balance directly to the employee upon resale closing or payoff by Contractor, after the employee has received the full balance of the escrow from the Contractor, the employee must remit those funds to the Contractor. If mortgage payments http://www.defensetravel.dod.mil/Docs/perdiem/JTR.pdf from the Contractor are not made in accordance with lender payment schedules, ordering agency may assess penalty fees to the Contractor up to $2,500 per employee affected. Additional penalties may be specified at the agency level through BPA or task order to recover actual costs to the employee and/or agency to correct the affected employee’s credit report. Contractor is required to transfer title of the property within 150 calendar days of acquisition, or upon closing of the Amended Value/BVO transaction, whichever is sooner.

Move: Shall mean the activities associated with the shipment and storage of an employee’s personal property in connection with a relocation. More than one Bill of Lading may be issued for a move, for example an UAB and HHG shipment.

Negative Equity: Shall mean a situation in which the market value of a mortgaged asset is below the amount of the loan or mortgage taken against it, also called deficit equity.

Off-List Supplier: Shall mean a relocation homesale service supplier such as appraiser, real estate agent or inspector that is not in the Contractor’s network of authorized suppliers.

Offer Period (or Acceptance Period): Shall mean the period of time between the date Contractor extends the written offer to the employee and the expiration date of the offer; typically 60 days but may be up to 90 days as specified by task order or Blanket Purchase Agreement between the ordering agency and Contractor.

Prepayment Penalty: Shall mean a monetary penalty imposed by a lender on a borrower who pays a loan off within a specific time parameter of the origination of the loan (typically specified in mortgage loan instrument). Prepayment penalty expenses are reimbursable under the FTR §302-11.200(f)(7) as stated below:

“Charge for prepayment of a mortgage or other security instrument in connection with the sale of the residence at the old official station to the extent the terms in the mortgage or other security instrument provide for this charge. This prepayment penalty is also reimbursable when the mortgage or other security instrument does not specifically provide for prepayment, provided this penalty is customarily charged by the lender, but in that case the reimbursement may not exceed 3 months’ interest on the loan balance;”

Contractor may not charge for a prepayment penalty unless the penalty is not specified by mortgage or security instrument but is customarily charged, and in these instances, the Contractor must absorb the first three (3) months of said penalty, charging the employee only what is in excess of three (3) months.

Professional Books, Papers, and Equipment (PBP&E): Shall mean those items which the employee uses in the performance of official duties. If identified and approved, these items are not charged against the member’s authorized weight allowance.

Reevaluation Process: Shall mean an opportunity afforded to the employee to contest the Appraised Value Offer made by the Contractor by providing additional objective information to be evaluated by the original appraisers which could result in a higher, equal, or lower offer for the employee's home.

Relocation Services Company (RSC): Shall mean a third party provider of relocation services where relocation services are purchased by the government. Also known as Contractor.

Short Sale: A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.

Special Handling Transactions: Shall mean eligible homes otherwise permitted under the FTR but which are determined by the Contractor and the agency to be either especially difficult to sell or where the property value is especially difficult to determine. Prior agreement between the Contractor and agency would be required before a property would be handled in this manner. This determination and agreement should be made BEFORE the Contractor extends an offer to the employee. If a Contractor refers a home for Special Handling per the criteria described in this SOW and the agency does not agree, the agency may pull the home from the homesale program and reimburse the Contractor for actual expenses incurred to date for appraisals and/or inspections up to limits specified in this Statement of Work or as specified in a BPA or task order. For purposes other than fee (SINs 653-5) Special Handling Transactions will be handled in the same manner as properties handled under the homesale Service (SIN 653-1) and in accordance with the agency’s relocation program. Agency BPAs and task orders should specify criteria and processes for referring homes for Special Handling Transactions.

Title: Shall mean any interest held by the employee in the home. For purposes of the homesale Services portion of this contract, "title” shall mean any interest in real estate that is marketable and insurable under applicable state law.

In addition to fee simple interests, "title" includes rights held under land contracts, recorded long-term ground leases with a minimum 50 years remaining on the time of the lease. For the purpose of the relocation programs, the title shall be clear and marketable in accordance to standard and acceptable real estate practice, as determined by a title search performed by the Contractor.

Vacate Date: Shall mean the date by which the employee or employee’s Tenant must vacate and deliver the home in broom clean condition (see definition of broom clean condition).

Work Days: Shall mean Monday thru Friday, exclusive of Federal holidays, aka business days.

SIN 653-1 – EMPLOYEE RELOCATION SERVICES - HOMESALE SERVICES

SIN Description Employee Relocation Services – Homesale Services, Open to All Sources: This SIN is for coordination and integration of relocation-related homesale assistance and includes homesale services (appraised, amended value, and amend-from-zero sales) and home marketing assistance (working with the real estate agent to provide real estate advice to the transferee, develop a marketing strategy, recommend repairs or improvements). An offer on this SIN must include an offer on SINs 653-4 and 653-5 for additional and customized services.

1. Pricing

GSA seeks pricing based on commercial practices to the extent practicable, factoring into consideration that indemnification allowed under commercial programs is not applicable to Federal fixed percentage rate homesale programs. GSA recognizes that Contractor acts as a service integrator and utilizes a network of independent service providers to deliver many of the services described within the Statement of Work. In connection with its use of these independent service providers, Contractor collects referral fees, marketing fees, service fees and volume discounts from such suppliers. These referral fees, marketing fees, service fees and volume discounts are negotiated with suppliers based on the overall volume of business that the Contractor refers to these suppliers from across its client base and, in some cases, services that Contractor performs to facilitate the supplier’s delivery process (e.g., providing software for reporting). Via the Schedule, GSA offers pricing options that enable Contractor to factor revenue from suppliers into the pricing extended to the Government. To verify the extent to which such supplier revenues are factored into pricing, GSA may request Contractor to supply information relating to its supplier network revenue arrangements as part of the evaluation process.

Pricing Option 1: Full Choice Homesale with Mortgage Payoff – Includes the following elements:

Employee has choice of real estate agent in both old and new locations;

Employee may have listed home previously via a “For Sale by Owner” or other listing arrangement;

Appraisals are performed upon Authorization;

Employee will select from a list of Contractor approved Designated Certified Appraisers provided by Contractor, or present for consideration an "off-list" appraiser(s) that is qualified using Contractors same qualification standards, to perform a relocation appraisal. Contractor shall have up to 10 work days to approve or disapprove the employee's requested appraiser(s). If a requested appraiser is not allowed, the Contractor must notify the agency with an explanation;

Appraised Value Offer Period is for a period of 60 days, but may be increased up to 90 days by the ordering agency

Employee may accept Appraised Value Offer at any time during offer period;

Mortgage Payoff and title transfer to Contractor is required within 31 calendar days of acquiring a property via an appraised value transaction. For Amended Value and Amend-from-Zero transactions, Contractor is required to pay-off the mortgage and transfer title within 60 calendar days of acquiring the property or upon the closing with the outside buyer, whichever is sooner. Should the Amended Value Sale or Amend-from-Zero Sale fall through before the 60 calendar days, the Relocation Contractor shall immediately pay off the mortgage loan(s) and take title.

Employee has the option to work with an approved real estate service provider in the new location selected by the Contractor. If the employee declines to work with a real estate service provider referred by the Contractor, the employee may not be eligible for other destination services, indicated below, depending on the terms of the agreement between the ordering agency and Contractor.

Employee mortgage counseling for new home purchase not required; and

Employee has choice of mortgage supplier.

Pricing Option 2: Full Choice Homesale Delayed Mortgage Payoff - Includes the following elements:

Employee has choice of real estate agent in old and new location;

Employee may have listed home previously via a “For Sale by Owner” or other listing arrangement;

Appraisals are performed upon Authorization;

Employee will select from a list of Contractor approved Designated Certified Appraisers provided by Contractor, or present for consideration an "off-list" appraiser that is qualified using Contractors same qualification standards, to perform a relocation appraisal. Contractor shall have up to 10 work days to approve or disapprove the employee's requested appraiser(s). If a requested appraiser is not allowed, the Contractor must notify the agency with an explanation.

Appraised Value Offer Period is for a period of 60 calendar days, but may be increased up to 90 days by the ordering agency;

Employee may accept Appraised Value Offer at any time during Offer Period;

Employee has the option to work with an approved real estate service provider in the new location selected by the Contractor. If the employee declines to work with a real estate service provider referred by the Contractor, the employee may not be eligible for other destination services, indicated below, depending on the terms of the agreement between the ordering agency and Contractor.

Employee mortgage counseling for new home purchase not required;

Employee has choice of mortgage supplier; and

Mortgage Payoff is not required at time of acquisition; however, the Contractor is required to take title within a maximum of 150 calendar days from acquiring the property (unless another time frame is agreed upon by task order or BPA); and comply with provisions outlined under Mortgage Servicing. For Amended Value and Amend-from-Zero transactions, Contractor is required to transfer title within a maximum of 150 calendar days of acquiring the property (unless another time frame is agreed upon by task order or BPA); or upon the closing with the outside buyer, whichever is sooner.

Pricing Option 3: Managed Homesale with Mortgage Payoff – Includes the following elements:

Employee is REQUIRED to use a Contractor recommended real estate agent in BOTH old and new locations (if employee opts to purchase in the destination area within six (6) months of closing on the home in the origin location);

Home must NOT have been listed previously by the employee with another agent or as a “For Sale by Owner” within the last six (6) months unless the Contractor waives this requirement;

Appraisals may be delayed for up to 30 days from date of Authorization. Pricing provided in the grid below, however, should assume appraisals are not delayed; discount from the maximum fixed percentage rate, if any, should be specified in the appropriate section below;

Employee will select from a list of Contractor approved Designated Certified Appraisers provided by Contractor, or present for consideration an "off-list" appraiser that is qualified using Contractors same qualification standards, to perform a relocation appraisal. Contractor shall have up to 10 work days to approve or disapprove the employee's requested appraiser(s). If a requested appraiser is not allowed, the Contractor must notify the agency with an explanation;

The employee list price must be capped at 105% of the average of two Broker Market Analysis’s most likely sales price until employee receives the Appraised Value offer. Within two days of receiving the Appraised Value offer, the list price must be capped at 105% of the Appraised Value offer. The only exception is for employees requesting a reevaluation of appraisal(s). Once the reevaluation request is received back from appraiser(s), the list price must be capped at the Appraised Value offer;

Mandatory Marketing Period will be a minimum of 60 calendar days prior to acceptance of Appraised Value Offer; and

Appraised Value Offer Period is for a period of 60 calendar days, but may be increased up to 90 days by the ordering agency;

All buyer offers received by employee must be presented to Contractor and upon agreement between Contractor and agency, the Contractor has the right to accept buyer offers lower than Appraised Value Offer (in which case, employee may accept the Contractor’s Appraised Value Offer and the Contractor may charge the ordering agency fees at the contracted Amended Value rates as agreed upon in the BPA or task order);

Employee mortgage counseling for new home purchase required;

Employee has choice of mortgage supplier; and

Mortgage Payoff and title transfer to Contractor is required within 31 calendar days of acquiring a property via an appraised value transaction. For Amended Value and Amend-from-Zero transactions, Contractor is required to pay-off the mortgage and transfer title within 60 calendar days of acquiring the property or upon the closing with the outside buyer, whichever is sooner. Should the Amended Value Sale or Amend-from-Zero Sale fall through before the 60 calendar days, the Contractor shall immediately pay off the mortgage loan(s) and take title.

Pricing Option 4: Managed Homesale Delayed Mortgage Payoff - Includes the following elements:

Employee is REQUIRED to use a Contractor recommended real estate agent in BOTH old and new locations (if employee opts to purchase in the destination area within six (6) months of closing on the home in the origin location);

Home must NOT have been listed previously by the employee with another agent or as a “For Sale by Owner” within the last six (6) months unless the Contractor waives this requirement;

Appraisals may be delayed for up to 30 days from date of Authorization. Pricing provided in the grid below, however, should assume appraisals are not delayed; discount from the maximum fixed percentage rate, if any, should be specified in the appropriate section below;

Employee will select from a list of Contractor approved Designated Certified Appraisers provided by Contractor, or present for consideration an "off-list" appraiser that is qualified using Contractors same qualification standards, to perform a relocation appraisal. Contractor shall have up to 10 work days to approve or disapprove the employee's requested appraiser(s). If a requested appraiser is not allowed, the Contractor must notify the agency with an explanation.

The employee list price must be capped at 105% of the average of two Broker Market Analysis’s most likely sales price, until they receive the Appraised Value offer.