Q and A.pdf

Questions and Answers for Solicitation Number: FHF20Q0077

# QUESTION RESPONSE

Is the AVM being requested expected to be a dual purpose (i.e., used for both single and multifamily dwellings) or just a multifamily AVM?

The AVM being requested will be used only for multifamily. Because the focus is on the technology and its risks rather than the valuations, multifamily provides an opportunity to compare the model to the richer datasets we have for multifamily housing.

Please elaborate on the intended use of the licensed/selected AVM and the underlying model and performance information. Is it for research and educational purposes only or is the intended application to collect information to build FHFA AVM models and analytics?

This contract is for research and educational purposes. FHFA has no current plans to build its own AVM.

Will the findings be used for risk management, compliance investigations, regulatory, and/or enforcement actions against the regulated entities?

While our focus is on understanding the technology for risk management, the contract does not limit the purposes of FHFA’s usage. If you wish to impose limits, you may include them in your license or Assumptions and Exceptions.

The Performance Work Statement for AVM states that FHFA anticipates up to 5 types of analyses per year. Please elaborate on the timeline of these analyses (e.g. one analysis each quarter)?

This is a new requirement for the agency;

therefore, we do not know the timeline, we just anticipate requiring up to 5 analyses throughout the year. The timelines will be negotiated with the vendor as the analyses are defined.

Does FHFA intend to share the information about the selected AVM, the underlying model and performance data, analyses and findings with anyone outside of the FHFA?

No. However, FHFA may publicly release discussion papers or analyses that present our findings without revealing details of the AVM. It is recommended that vendors include requested limits in their license or in their Assumptions and Exceptions.

The Performance Work Statement states that FHFA may request in-person training sessions. Given the current environment and risks related to Covid-19, what is the likelihood that an in-person meeting will be required by FHFA? If an in-person meeting is required, what type of accommodations and measures will be implemented by FHFA to reduce the risk of transmission?

Section 4.3 states training “may take place in-person or via online meeting platforms”;

This RFQ includes option years, therefore in-person training may occur in the out-years.

In section 4.2 (Ad Hoc Data Analysis Services), two examples of the requested analysis are provided.

The second example – “Comparisons of technologies used in the AVM to the technologies of other valuation models” – can more information on “other valuation models” be provided and what would the depth of the comparison be? Are there other examples of analysis that can be shared?

Comparisons to technologies used in other AVM would require either the vendor or FHFA to provide information on other models.

In section 4.3 (Education and Training Services), for the statement “FHFA may specify datasets and variations of the model’s parameters for these purposes.” – can more information regarding the “datasets” and “variation to the model parameters” be provided? What parameters may be considered?

For example, FHFA may request that the vendor apply their AVM to situations other than current real market conditions, including artificial market stress.

What is the current extent of FHFA’s use of commercial AVM (e.g. in-house AVM, vendor provided/supported AVM?)

This question is not being answered, as the FHFA’s current use of AVM is not the subject of this contract.

What multifamily housing property type is of greatest interest/concern to FHFA?

There is no specific property type FHFA has more interest than another.

Will FHFA consider an extension to allow for sufficient time to fully consider the responses to the questions and requirements? We respectfully request a one week extension.

Responses are being provided the same day questions were due, 8/10; therefore, no extension shall be provided at this time.

Will a vendor/service provider be selected at the conclusion of this RFQ process? Has FHFA committed funding to this project? If yes, please provide a range of anticipated funding

Yes, an award will be made at the conclusion of this process, funds have been committed, but the amount cannot be released.

How many labor hours of person to person interaction (vendor representatives with FHFA staff) are anticipated (per month, per year)?

Please provide a range.

This is a new requirement for the agency; therefore, we are looking to the industry to inform us of the expected hours need based on the requirements and hence the pricing worksheet having a Not-to-Exceed ceiling for the labor-hour work.

What mix of fixed fee and labor hours is envisioned for this project?

The pricing Worksheet specifies this information; Section I is Fixed Price and Section II is Labor Hour.

Please provide additional guidance on the cells to be populated in the price sheet (specifically cells B7, D3:D4, F3:F4, H3:H4, J3:J4, L3:L4). What does the $88,000 represent? Are only the “yellow” boxes to be populated (what reads from cell B7)?

B7 is for you to fill out with the Labor Categories and Rates you believe is required to meet contract requirements. The yellow cells of Section I require you to provide the firm fixed unit price for that CLIN (A3 or A4). FHFA has corrected

Attachment B to change the $88,000 in the Not-to-Exceeds to $58,000 which represents the Government’s maximum amount expected for the Labor-Hour work.

What loan volume (e.g., a GSE or FHLB portfolio) does FHFA anticipate running the multifamily AVM on, and at what frequency (e.g., monthly), during the term of this engagement?

This is a new requirement for the agency and the focus is on understanding the technology;

therefore, we have not predetermined the loan volume or frequency for running the model.

Please include any recommendations you have in your technical response.