DRAFT Statement of Work.docx

ATTACHMENT A:

STATEMENT OF WORK (SOW)

FOR

RESIDENTIAL AND COMMERCIAL STRUCTURED FINANCE TRANSACTIONS SYSTEM AND WHOLE LOANS

CREDIT RISK MODELING APPLICATIONS

1.0 BACKGROUND

The Federal Housing Finance Agency (FHFA) was created by the Housing and Economic Recovery Act of 2008 to regulate and supervise Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. It combined three organizations, the Office of Federal Housing Enterprise Oversight, the Federal Housing Finance Board, and a group from the Department of Housing and Urban Development, which collectively had previously regulated these government-sponsored enterprises. These institutions play critical roles in supporting our nation’s housing finance system. Fannie Mae and Freddie Mac guarantee mortgage-backed securities (MBS) and hold mortgages and MBS for investment. The Federal Home Loan Banks lend money to banks and other financial institutions using mortgages as collateral and invest in mortgage-related assets. In 2008, FHFA placed Fannie Mae and Freddie Mac in conservatorships, where they remain.

2.0 SCOPE

FHFA requires a fully integrated system for credit risk modeling of structured finance transactions such as residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), residential and multifamily agency credit risk transfer (CRT) securities, and stand-alone credit risk modeling applications for residential and commercial mortgage loans (Whole Loans). This requires purchasing a license for a comprehensive and streamlined system that provides a robust and flexible platform for performing credit risk modeling and cashflow analytics for each of the aforementioned structured finance transactions. Further, stand-alone whole loan applications should be integrated into the structured finance system. The structured finance system must be provided by a single vendor to ensure it seamlessly automates and integrates the following thirteen items into a single system:

1) loan level data underlying securitized residential and commercial mortgage loan transactions,

2) residential mortgage loan applications including loan level default, prepayment, and loss severity risk models to calculate loan level cashflows and credit losses,

3) commercial mortgage loan applications including loan level default and loss severity risk models that can incorporate prepayment assumptions to calculate loan level cashflows and credit losses,

4) modeling of private mortgage insurance for residential loans,

5) a yield curve model,

6) forward-looking macro-economic scenarios that are an input to the loan level risk models,

7) a cashflow waterfall engine and deal library for structured finance transactions such as residential mortgage-backed securities, commercial mortgage-backed securities, and residential and multifamily agency credit risk transfer securities, used to facilitate the calculation of loan pool, deal, and bond/CUSIP level cashflows and credit losses,

8) a facility to model cashflow waterfalls for privately held (non-public) structured finance transactions involving pools of residential mortgage loans,

9) capability for calculating bond/CUSIP level cashflows, credit losses, and other credit analytics for structured finance transactions,

10) tranche credit valuation capability for calculating tranche level cashflows, credit losses, and other credit analytics for privately held (non-public) structured finance transactions,

11) an automated facility to calibrate the output of default and prepayment risk models for residential mortgage loans to the realized mortgage performance data for the related pool/deal when model projections deviate significantly from the recent performance as was the case following the last recession,

12) capability to model modified residential mortgage loans, and

13) Monte-Carlo simulation of forward looking macro-economic paths capable of calculating CUSIP level probability distribution of credit losses for structured finance transactions.

The FHFA required structured finance system must provide seamlessly integrated capabilities for the aforementioned thirteen items as well as stand-alone credit risk modeling applications for residential and commercial whole loans. Functionality should extend to the following products:

1) residential mortgage-backed securities and privately held (non-public) transactions,

2) commercial mortgage-backed securities,

3) Agency (Fannie Mae and Freddie Mac) residential and multifamily credit risk transfer (CRT) securities,

4) residential mortgage loans (agency and non-agency), and

5) commercial mortgage loans.

3.0 OBJECTIVES

FHFA seeks to acquire a credit risk modeling system for structured finance transactions such as RMBS, CMBS, residential and multifamily agency CRT securities, and stand-alone credit risk modeling applications for residential and commercial Whole Loans. FHFA seeks a comprehensive and streamlined credit risk modeling system that uses FHFA provided CUSIP numbers or ticker symbols to calculate loan, pool, deal, and tranche level cashflows and credit losses for RMBS, CMBS, and CRT securities. Additionally, FHFA seeks stand-alone credit risk modeling applications that use FHFA provided proprietary loan level data for residential and commercial Whole Loans to calculate loan and portfolio level default, prepayment, and loss severity along with estimates of cashflows and credit losses.

This credit risk modeling functionality is essential to inform and enhance the research conducted by FHFA in support of the regulation and supervision of its Regulated Entities. FHFA will use this platform for proprietary analysis.

4.0 TASKS

In order to meet FHFA statutory responsibility to ensure that the Regulated Entities remain safe and sound, FHFA has a requirement for credit risk modeling of structured finance transactions (RMBS, CMBS and CRT) and residential and commercial whole loans with the following minimum features.

4.1. Structured finance system for RMBS, CMBS, and CRT

a. The structured finance system must automate and integrate into a single desktop system each of the thirteen items identified in Section 2.0 (Scope).

b. For modeling RMBS, CMBS, and CRT the only user input required by the structured finance system from FHFA should be CUSIPs or ticker symbols.

c. Modeling of privately held (non-public) transactions would require FHFA supplied (proprietary) full descriptions of the allocation of cashflows and credit enhancement details along with the loan level data (no personally identifiable information) for the loan pools underlying such transactions.

d. The Contractor must provide a structured finance system to include:

1) all relevant models,

2) calibration algorithms (as relevant),

3) loan level data for structured finance transactions,

4) loan modification data for structured finance transactions (as relevant),

5) a cashflow waterfall engine and deal library,

6) realized performance data required for calibration algorithms,

7) simulation of forward looking macro-economic paths,

8) Moody’s Analytics macroeconomic scenarios,

9) U.S. Federal Reserve CCAR macroeconomic scenarios,

10) the capability to input forward looking MSA/CBSA, state, and national level custom macroeconomic scenarios (as relevant),

11) the capability to model the credit risk underlying a variety of residential loan types including fixed rate loans, ARMs, hybrid ARMs, interest-only loans, negative amortization loans, first and second liens, home equity loans, HELOCs, prime, alt-A, and subprime loans,

12) econometric models to simulate national, state, and MSA/CBSA level economic variables such as unemployment rate and home prices that are inputs to the loan level risk models (as relevant),

13) the capability to model credit risk underlying loans backed by each of the five major commercial property types as: apartments/multifamily, hotel/lodging, industrial, office, and retail,

14) the local-, regional-, state-, and national-level current and forecasted property and capital market conditions for each of the five major commercial property types, as appropriate,

15) econometric models for conversion of forward-looking macroeconomic scenarios into commercial real estate market risk factors for each of the five major commercial property types listed above,

16) credit valuation (present value) capability for RMBS CMBS, and CRT,

17) all output under a single scenario and multiple scenarios using a built in and fully automated mechanism such as with the execution of a macro that requires no intermediate user action,

18) the probability distribution of credit losses for a single CUSIP and for a portfolio of CUSIPs using a built in and fully automated Monte-Carlo simulation mechanism such as with the execution of a macro that requires no intermediate user action, and

19) credit losses corresponding to user specified percentiles of the probability distribution of losses using a built in and fully automated mechanism such as with the execution of a macro that requires no intermediate user action.

e. The output from the structured finance system must include comprehensive information within the following categories:

1) Bond/CUSIP and underlying loan pool information,

2) monthly performance history (such as CDR, CPR, and loss severity) for the loan pool underlying a bond/CUSIP,

3) bond/CUSIP level projected future cashflows and credit losses; value and other analytics,

4) bond/CUSIP level monthly future projected cashflows and losses,

5) monthly future projected cashflows and losses for the loan pool underlying a bond/CUSIP,

6) monthly future projected performance vectors for the loan pool underlying a bond/CUSIP,

7) monthly future projected cashflows and losses for the deal (all loan pools).

f. The output from the Monte Carlo simulation must include the following at the CUSIP and portfolio level:

1) future projected loss and credit valuation under each macroeconomic path, mean loss, standard deviation of loss, percentiles of the loss distribution, minimum loss, maximum loss, median loss, total principal received by investor, and total cash received by investor.

g. The vendor shall provide user manuals and any other technical documents, including technical/white papers and validation papers, necessary to efficiently and conveniently run and reasonably support the application process.

4.2. Residential Whole Loan Application

a. The residential whole loan application must automate and integrate into a single system each of the following fifteen items:

1) loan-level data,

2) a facility for loan level data cleaning that automatically substitutes missing or bad data in user portfolio with industry overrides,

3) forward looking MSA/CBSA-, state-, and national-level macroeconomic scenarios,

4) a yield curve model,

5) econometric models to simulate national, state, and MSA/CBSA level economic variables such as unemployment rate and home prices that are inputs to the loan level risk models,

6) loan level default, prepayment, and loss severity risk models to cover fixed rate loans, ARMs, hybrid ARMs, interest-only loans, negative amortization loans, first and second liens, home equity loans, HELOCs, prime, alt-A, and subprime loans,

7) loan level private mortgage insurance,

8) loan valuation capability for calculating loan level cashflows, loan value, credit losses, and other credit analytics,

9) capability to calibrate the output of default, prepayment, and loss severity risk models for residential mortgage loans to the realized mortgage performance data,

10) capability to model modified residential mortgage loans,

11) a Monte-Carlo simulation of forward looking macro-economic paths capable of calculating loan and portfolio level probability distribution of credit losses,

12) capability to evaluate the relative risk contribution of various loan-level factors to probability of default, probability of prepayment, loss-given-default and expected loss and find out the major drivers of the four risk metrics at the loan and portfolio,

13) capability to calculate loan level expected (CECL) losses consistent with FASB guidelines,

14) capability to model residential mortgage loans indexed to SOFR (Secured Overnight Financing Rate and other indices), and

15) capability to input forward looking macroeconomic scenarios including SOFR index, among other indices.

b. The Contractor must provide a residential whole loan application that includes:

1) current and historical fixed and floating market interest rates,

2) Moody’s Analytics macroeconomic scenarios,

3) U.S. Federal Reserve CCAR macroeconomic scenarios,

4) capability to produce cashflows and credit losses under FHFA input forward looking MSA/CBSA, state, and national level macroeconomic scenarios,

5) loan and portfolio level projected future cashflows, performance history (such as CDR, CPR, and loss severity), and credit losses at the monthly frequency,

6) all output under a single scenario and multiple scenarios using a built in and fully automated mechanism with or without the execution of a macro,

7) probability distribution of credit losses for a single loan and for a portfolio of loans using a built in and fully automated Monte-Carlo simulation with or without the execution of a macro,

8) credit losses corresponding to user specified percentiles of the probability distribution using a built in and fully automated Monte-Carlo simulation with or without the execution of a macro, and

9) a means to input default, prepayment, and loss severity assumptions, modify model projected performance, and flexibility of modifying other vendor assumptions.

c. The output from the residential whole loan application for each scenario and Monte Carlo simulation must include comprehensive information including:

1) a summary for the loans including stratification tables for underlying variables such as FICO score, loan-to-value ratio (LTV), LTV for second lien, combined LTV, delinquency status, debt-to-income ratio (DTI), loan term/maturity, documentation level, occupancy type, loan size, property type, and loan purpose,

2) a pool/portfolio level summary including total loan balance, average loan balance, total number of loans, weighted average (WA) FICO score, WA LTV, WA combined LTV, WA coupon/rate, WA gross margin, WA DTI, WA original term, WA interest only (IO) term, WA life/maturity, % fixed rate, % ARM, % full documentation, % prime, % subprime, % first lien, % interest only, % negative amortization, % balloon, % HELOC, and % modified,

3) loan and portfolio level output including default, prepayment, loss severity, expected loss, original LTV and CLTV, original appraisal amount, updated LTV and CLTV, FICO score, current balance, maximum draw down amount (for lines of credit), price, MSA/CBSA, state, lien position, original term/maturity, amortization term, IO term, documentation level, coupon rate, and loan purpose,

4) projected future performance (such as CDR, CPR, and loss severity), and

5) probability distribution of losses along with mean, standard distribution, and percentiles from Monte Carlo simulation.

d. The Contractor shall provide user manuals and any other technical documents necessary to efficiently and conveniently run the application.

4.3. Commercial Whole Loan Application

a. The commercial whole loan application must automate and integrate into a single system each of the eleven items identified below:

1) loan-level data,

2) local-, regional-, state-, and national-level current and forecasted property and capital market conditions, as appropriate,

3) forward-looking macroeconomic commercial real estate (CRE) market scenarios,

4) conversion of forward-looking macroeconomic scenarios into CRE market risk factors for each of the five property types (apartments/multifamily, hotel/lodging, industrial, office, and retail),

5) default and loss severity risk models for both permanent and new construction loans,

6) term and maturity default and loss severity risk models,

7) market cycle neutral and market cycle adjusted default and loss severity risk models,

8) structural loss severity model,

9) facility to incorporate tenant credit ratings,

10) facility to define a custom rating scale based on calculated probability of default and expected loss, and

11) facility to determine the relative contribution of the explanatory variables (risk factors).

b. The CRE credit risk modeling platform shall provide:

1) probability of default (quarterly, cumulative, at loan maturity),

2) loss given default (quarterly, cumulative, at loan maturity),

3) expected loss (quarterly, cumulative, at loan maturity),

4) probability distribution of loss,

5) loan-level and portfolio-level cash flows and credit losses,

6) stress testing and sensitivity analysis,

7) Federal Reserve CCAR and other Contractor-specified macroeconomic scenarios that serve as an input into loan-level default and loss severity risk models,

8) a means to input user specified macroeconomic and CRE market scenarios,

9) models to calculate and simulate property net operating income (NOI) and property value that are used as inputs into loan-to-value ratio (LTV) and debt service coverage ratio (DSCR) at the loan-level, based on forward-looking macroeconomic scenarios, and as inputs into the loan level default and loss severity risk models,

10) a means to input prepayment assumptions, and

11) quick and efficient calculation of risk metrics such as projections of cash flows, default rates, loss severity, and loss rates for portfolios of CRE mortgage loans, delivering ready-to-use output on risk metrics.

c. The CRE credit risk modeling platform shall provide the ability to generate multiple loss paths. The functionality should include the following:

1) pre-defined stochastic macroeconomic paths,

2) the ability to run macroeconomic paths through the CRE credit risk model, and

3) the ability to generate quarterly PD, LGD and expected loss measures for all loans along each path provided.

d. The Contractor shall provide user manuals and any other technical documents necessary to efficiently and conveniently run the CRE platform.

e. The default and loss severity risk models underlying the CRE platform must have been sufficiently tested in a production environment, to include full model development/methodology, validation and back-testing documentation which shall be made available to FHFA.

4.4. Structure Finance Transactions System and Residential Whole Loans Credit Risk Modeling Application Maintenance Requirements.

a. The Contractor shall provide regular updates for:

1) MSA/CBSA-, state-, and national-level standard macroeconomic scenarios (https://www.economy.com/products/alternative-scenarios/standard-scenarios) from Moody’s Analytics,

2) Federal Reserve CCAR macroeconomic scenarios, including interest rate data (e.g. SOFR, US Treasuries and swap points along the yield curve).

3) local-, regional-, state-, and national-level current and forecasted property and capital market conditions for each of the major MSA/CBSA areas.

4) econometric models to simulate national, state, and MSA/CBSA level economic variables such as unemployment rate and home prices that are inputs to the residential loan level risk models,

5) econometric models for conversion of forward-looking macroeconomic scenarios into commercial real estate market risk factors for each of the five major commercial property types listed above,

6) default, prepayment, and loss severity risk models, validation and back-testing documentation for default, prepayment, and loss severity risk models,

7) user manuals and any technical documents necessary to efficiently and conveniently run the Structure Finance Transactions System and Residential Whole Loans Credit Risk Modeling applications, understand the methodology and results, and interpret the results, and

8) help with modeling of privately held (non-public) structured finance transactions if FHFA is unable to model such transactions. Currently, there are five different types of structures that will result in different waterfall files. In future, new structures may be created requiring modeling help from the vendor.

4.5. CRE Platform Maintenance Requirements.

a. The Contractor shall provide regular updates for:

1) local-, regional-, state-, and national-level current and forecasted property and capital market conditions, for each of the five major commercial real estate markets (apartments/multifamily, hotel/lodging, industrial, office, and retail), as appropriate,

2) Federal Reserve CCAR and other Contractor specified macroeconomic scenarios,

3) conversion of forward-looking macroeconomic scenarios into CRE market risk factors for each of the five property types (apartments/multifamily, hotel/lodging, industrial, office, and retail),

4) default and loss severity risk models, validation and back-testing documentation for default and loss severity risk models,

5) user manuals and any technical documents necessary to efficiently and conveniently run the CRE platform, and

4.6. Information Technology Requirements for Structure Finance Transactions System and Whole Loans Credit Risk Modeling Application

a. The System must have a robust graphical user interface (GUI) for the purpose of ad hoc analysis and viewing input and output data.

b. The System must provide a means to run portfolios of RMBS, CMBS, CRT, and whole loans in batches (e.g., a Platform batch or portfolio upload or via a Microsoft Excel workbook and macro).

c. The System should provide full functionality by either being a cloud-based service or installing the software on a MS Windows or Red Hat Linux server, a secured networked PC, or through web access to a vendor website.

d. The server solution must abide by the FHFA Information Security standards and policies for server hardening which include:

1) Operating Systems hardening according to Microsoft Secure Configuration Standards

e. If the full functionality is only available through installing the software on a PC, the Platform must be compatible with Windows 10, configured as per Microsoft Secure Configuration standards.

f. The server solution must support operation from Amazon Web Services (AWS) under an infrastructure as a Service (IaaS) model.

g. For PC-based installation, the platform must support remote access via Windows Terminal Server and Citrix.

h. Web connectivity between FHFA and the vendor, including all cloud-based solutions, must meet the technical requirements defined in Section 9, as well as requirements defined in clause 6.208d.

i. If the full functionality is only available through web access to a vendor website, the System must be compatible with recent versions of Microsoft or Google Chrome web browsers.

4.7. Support Services

a. The System vendor must offer a range of no-charge support options, for example: web-based discussion forums and; web-based Frequently Asked Questions; email; Web-Ex; telephone.

b. On an ad hoc basis, the System contractor shall answer FHFA staff members’ questions related to the platform’s data, model, validation, and back-testing as well as troubleshooting issues. Acknowledgement must be provided within two business days and resolution must be provided within five business days.

4.8. User Training

a. Training for FHFA staff must be provided on an on-going basis during all purchase order periods and included in the price of licensing.

b. Training options must include web-based, classroom, and on-site (i.e., at FHFA) options.

5.0 DELIVERABLES

5.1. The Contractor shall provide a written (in electronic format) and up-to-date user’s manual and any other technical documents necessary to efficiently and conveniently run the Platform, understand the methodology and results, and interpret the results within two business days after the purchase order award.

5.2. The Contractor shall deliver a fully functional Platform within five business days after the purchase order award. The mode of delivery shall correspond to the type of installation. For PC and network-based platforms, the Contractor shall provide access to download software from its website and help in installation and troubleshooting. For web-based platforms, the Contractor shall provide login credentials for all users through email and help in troubleshooting.

5.3. The Contractor shall provide user training as described in Section 4.8 above within five business days after the purchase order award.

5.4. The Contractor shall provide up-to-date model development/methodology documentation for default and loss severity risk models underlying the platform as well as the model validation and back-testing documentation within two business days after the purchase order award. This documentation shall include documentation on conversion of forward-looking macroeconomic scenarios.

5.5 The Contractor shall provide support services as needed by FHFA users and as described in Section 4.7 above.

5.6 The Contractor shall provide regular Platform updates as described in Section 4.3 above.

5.7 In addition, for any written deliverables, the contractor must ensure they are in an electronic format (e-documents)—either in a Microsoft Office product format (Word/ PowerPoint/ Project/ Excel) or an Adobe Acrobat PDF format and are in compliance pursuant to Section 508 of the Rehabilitation Act of 1973, as amended (29 USC 794d), and its implementing standards and guidelines (36 CFR Part 1194).

6.0 GOVERNMENT-FURNISHED PROPERTY

FHFA will not furnish government property for the Contractor to fulfill the requirements of this purchase order. However, if the Contractor visits FHFA Headquarters (400 7th Street, SW, Washington, D.C. 20219) for training and related purposes, FHFA may furnish temporary access to desks, chairs, office space, internet access, network-access, and other common office furnishings.

7.0 PLACE OF PERFORMANCE

Work will be performed primarily at the Contractor’s site. On occasion, training may be provided at FHFA Headquarters (400 7th Street, SW, Washington, D.C. 20219).

8.0 PHYSICAL SECURITY

Primarily, the Contractor will not work at FHFA Headquarters. The Contractor may visit FHFA Headquarters for training and related sessions on a temporary basis. In these events, the FHFA Contracting Officer Representative will coordinate visitor access and escorting duties.

9.0 ADDITIONAL INFORMATION TECHNOLOGY SECURITY REQUIREMENTS

9.1 Requirements for solutions that may be COTS or externally hosted cloud solutions.

a. The solution supports encryption of data at rest and data in transit using FIPS 140- 2 approved algorithms.

b. The solution implements role-based access control to allow for a least privilege access model.

c. The solution audits user-activity and allows FHFA privileged users to view audit reports.

d. The solution supports single-sign on using FHFA’s system login credentials via Security Assertion Markup Language (SAML) 2.0 and function in a “Service Provider” or “Relying Party” type role where FHFA serves as the Identity Provider.

f. The solution supports the termination of user sessions after 15 minutes of inactivity or a time period to be defined by FHFA, however, any processing shall not be impacted by the session timeout requirement. For example, if a user executes analysis tasks that require processing time over the specified session termination timeout, the processing will continue in the application. The user will then be able to authenticate to the system to download the analysis.

9.2 Additional requirements for COTS hardware or software supporting networked information technology:

a. The solution shall be capable of transmitting, receiving, processing, forwarding and storing digital information utilizing system packets that are formatted in accordance with commercial standards of Internet Protocol (IP) version 6 (IPv6) as set forth in the USGv6 Profile (NIST Special Publication 500-267) and corresponding declarations of conformance defined in the USGv6 Test program.

b. The solution shall also maintain interoperability with IPv4 systems and provide the same level of performance and reliability capabilities.

9.3 Additional requirements for externally hosted cloud solutions:

a. The solution undergoes periodic penetration testing and the vendor tracks and reports on the remediation of identified vulnerabilities.

b. All data in use and at rest, and data backups/storage must reside within the U.S..

c. Only authorized contractor personnel (including subcontractor personnel) with appropriate background investigations and authorization shall access FHFA data and backups.

d. The solution provides an exit/transition strategy that avoids vendor lock-in and it.

1) Ensures that FHFA is able to retrieve all data placed in the cloud environment in a timely manner,

2) Can be executed quickly to ensure continuity of service,

3) Transfers all FHFA data to the Government in a predefined format,

4) Maintains, backs up, and secures the data until it is returned, and

5) Transfers all data without additional charge to the Government.

10.0 LICENSE AGREEMENT MINIMUM REQUIREMENTS

The license agreement for the Structure Finance Transactions System and Whole Loans Credit Risk Modeling Applications, at a minimum, must include and/or conform to the following requirements:

10.1 At the termination or expiration of the license agreement, FHFA shall have the right to maintain and use indefinitely print or electronic copies of its reports, presentations, or other content created in accordance with the license agreement.

10.2 Authorized end users may be from multiple divisions across FHFA and may concurrently access and use the tool from their official duty stations or via remote access when such end users are conducting business for the benefit of FHFA. Vendor is responsible for concurrent license enforcement.

10.3 FHFA does not permit compliance audits; however, the license agreement may require that FHFA will provide written assurance of its compliance or other alternative agreed to in writing by the Contracting Officer.

10.4 The license agreement shall not include an indemnification of the Contractor by FHFA.

10.5 The license agreement shall be governed by, and construed in accordance with, the federal laws of the United States of America.

10.6 The Contractor shall represent and warrant that it makes commercially reasonable efforts to ensure that the software, data, or product as applicable is free of any viruses, worms, Trojan horses, malware, and/or other malicious code.

10.7 The license agreement shall not include terms that authorize assignment of the task order except in accordance with Federal Acquisition Regulation Subpart 42.12.

10.8 Contractor shall acknowledge and agree that if there is a conflict between the terms and conditions of the license agreement and those of the task order, the task order governs.

10.9 The license agreement shall permit FHFA to use the system for official Government purposes, including but not limited to reports, presentations, graphs, public releases, other publications, and examination of the regulated entities.

10.10 The license agreement may acknowledge that FHFA is a federal government agency and is exempt, by law, from the payment and collection of sales taxes.

11.0 INFORMATION TECHNOLOGY ACCESSIBILITY (SECTION 508)

Section 508 of the Rehabilitation Act, as amended by the Workforce Investment Act of 1998 (P.L. 105-220) requires that when Federal agencies develop, procure, maintain, or use information and communication technology (ICT), it shall be accessible to people with disabilities. Federal employees and members of the public who have disabilities must have access to, and use of, information and data that is comparable to people without disabilities. As such, the following requirements apply to this solicitation:

1) Products, platforms and services delivered as part of this work statement that are ICT, or contain ICT, must conform to the Revised 508 Standards, which are located at 36 C.F.R. § 1194.1 & Apps. A, C & D, and available at https://www.access-board.gov/guidelines-and-standards/communications-and-it/about-the-ict-refresh/final-rule/text-of-the-standards-and-guidelines.

2) E102 / 702.10 – Web Content Accessibility Guidelines (WCAG) success criteria level A & AA are incorporated as a requirement. The referenced WCAG criteria is available at http://www.w3.org/TR/WCAG20/.

3) E202 – No General Exceptions Authorized by FHFA.

The following items are identified as containing ICT: Web Portal, Software Application, Manuals, Guides, and Training Materials Applicable Functional Performance Criteria: All functional performance criteria apply when using an alternative design or technology that achieves substantially equivalent or greater accessibility and usability by individuals with disabilities than would be provided by conformance to one or more of the requirements in Chapters 4-6 of the Revised 508 Standards, or when Chapters 4-6 do not address one or more functions of ICT.

Applicable requirements for software and Web products:

· E207 – WCAG Level A & AA Success Criteria

· E302 – Functional Performance Criteria

· E502 – Interoperability with Assistive Technology

· E503 – Application

Applicable requirements for electronic documents and/or support services:

· E205 – WCAG Level A & AA Success Criteria

· E302 – Functional Performance Criteria

· E602 – Support Documentation

· E603 – Support Services

12.0 PERIOD OF PERFORMANCE

The period of performance will be for one (1) twelve-month base period and four (4) twelve-month option periods.