RFQ FHF-22-Q-0024 - Questions and Answers.pdf

Questions and Answers for Solicitation Number: RFQ# FHF-22-Q-0024

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QUESTION ANSWER

RFQ Step 1 Is there a preferred format for the Corporate Experience Submission (e.g., Word, PPT)

No, there is no preferred format for the Corporate Experience submission.

RFQ Step 4 The price quotation specifies labor categories, hours required, and labor rates to be specified by vendor using Attachment C as a template – however, Attachment C explicitly instructs vendors not to modify the hours required (quantity column) – can you confirm that the vendor can modify the “Quantity” column to reflect the proposed resources required per the

SOW?

No. The vendor should not modify the “Quantity” column to reflect the proposed resources required per the SOW. The labor categories and labor hours specified in the pricing template are provided for evaluation purposes only. Once the contract is awarded, the amount of labor hours ordered may be different from the quantities specified in the pricing template.

Attachment A – Statement of Work

3.0 Scope of Work What will be the involvement

of the GSEs (Fannie Mae and Freddie Mac) in the development of the supervisory stress testing capital model?

No, FHFA does not plan to involve the GSEs in the development of the supervisory stress testing capital model.

Attachment A – Statement of Work

3.0 Scope of Work Does the FHFA have an

internal goal or estimate of when the Supervisory Capital Stress Testing framework needs to be operational?

FHFA expects the contractor to advise on the timeline for operationalizing the Supervisory Capital Stress Testing framework. However, FHFA’s current goal is to debut the framework in

FY2023/FY2024.

Attachment A – Statement of Work

3.0 Scope of Work What team / resources is the

FHFA planning to dedicate to this effort?

At a minimum, FHFA will dedicate resources from the Division of Housing Mission and Goals, Office of Capital Policy.

Attachment A – Statement of Work

3.0 Scope of Work It is specified that the vendor

needs to provide recommendations on the overall design of the capital stress test model (including specification of major components) – can you further clarify the degree of input and specification required for model design?

FHFA expects the contractor to identify major modules, and their respective inputs and outputs.

In addition, the contractor is not expected to specify hyper-granular calculations and software design documents.

Attachment A – Statement of Work

3.0 Scope of Work It is specified that the vendor

needs to provide recommendations on the overall design of the capital stress test model (including specification of major components) – is there a known list of items that qualify as “major components” and what is the expectation for line items that do not fall into this bucket / category – should approaches be specified for these items as well?

FHFA expects the contractor to provide recommendations for non-major components. However, FHFA will prioritize major components of the Supervisory Capital Stress Test Program.

There is no known list of major components.

8 Attachment C - Price Quotation Worksheet

Option Year 1- 4 Can you provide more guidance on the support

No, not currently.

required from the vendor for option years 1 – 4 that should form the basis for the pricing estimate?

General N/A Is there an incumbent contractor for this requirement?

No.

General N/A Does the government anticipate awarding a firm fixed price contract?

No. FHFA anticipates the award of a labor hour contract.

RFQ Page 1 What is the purpose of the FHFA’s supervisory capital stress testing program? Is the purpose similar to other banking regulatory agencies?

The purpose is similar to banking agencies, including identification of an Enterprise-specific stress capital buffer.

RFQ Page 1 What is the expected output of the supervisory capital stress testing program?

Stress capital buffer for the Enterprise Regulatory Capital Framework and an internal supervisory capital stress testing model.

RFQ Page 1 To what extent does the FHFA have existing macroeconomic forecasting capabilities and models? If inexistence, to what extent does the FHFA intend to leverage these models?

FHFA has proprietary mortgage analytics platforms for forecasting prepayments, delinquency, and loss on mortgage exposures.

RFQ Page 1 What data does the FHFA have in order to specify the model (e.g. time period, frequency, granularity)?

FHFA has proprietary data sufficient for estimating Enterprise cash flows.

RFQ Page 1 How frequently does the FHFA intend to execute its supervisory capital stress testing program?

The stress capital buffer will be evaluated annually. FHFA also intends to conduct ad hoc stress testing analyses.

RFQ Page 1 Is this specifically a credit stress or will operational risk be considered? What databases or models does FHFA maintain to support operational risk stress testing?

Primarily, FHFA’s supervisory capital stress testing program will focus on credit risk and market risk.

FHFA maintains proprietary information on Enterprise operational risk events.

RFQ Page 1 Does climate change need to be considered as part of the capital stress?

Not initially. However, climate change may be incorporated in the future.