Performance Work Statement Summary: Independent Model Validation (IMV)

This is a Performance Work Statement for independent model validation and analytical support services for the U.S. Department of Housing and Urban Development's Federal Housing Administration, issued in July 2026 with a base period of 12 months plus four optional 12-month extension periods. The contractor shall provide independent validation of financial and actuarial models supporting the Single Family Mortgage Insurance Fund (MMIF) and Commercial mortgage insurance portfolios, including Multifamily, Section 232, and Section 242 programs. The work encompasses three primary tasks: Task A validates Single Family Forward and HECM models used for financial reporting, budget formulation, and risk analysis; Task B validates Commercial models including behavioral, claim transition, stochastic simulation, and cash flow models; and Task C develops and maintains an independent Integrated Commercial Challenger Framework for benchmarking and comparative analysis of production models. The contractor must deliver monthly status reports and annual validation reports with comprehensive documentation, financial benchmarking analysis, reconciliation tables, sensitivity testing, and executive briefing materials. All work shall be performed at the contractor's facility during normal Government business hours (8:00 a.m. to 5:00 p.m. Eastern Time, Monday through Friday, excluding federal holidays).

The contractor must provide a multidisciplinary team demonstrating expertise in quantitative modeling, mortgage finance, credit risk analytics, statistics, econometrics, actuarial applications, data engineering, programming (SAS, Python, R, SQL), cloud computing platforms (AWS, Azure, GCP), and subject matter expertise specific to mortgage and housing finance. Personnel must maintain organizational independence from production model development and avoid actual or perceived conflicts of interest. The contractor shall furnish all facilities, equipment, software, and materials required for performance. Government shall provide baseline data, documentation, and information necessary for validation activities. All deliverables must conform to Section 508 accessibility standards for ICT and electronic content. Quality standards specify 100% inspection with 0% acceptable quality level deviation for all required deliverable elements, with performance-based remedies including invoice reductions for late delivery.