Attch 1_PWS.doc

PERFORMANCE WORK STATEMENT

Relocation Management Services November 1, 2011 Solicitation No.: HSSS01-12-R-0007

31.

INTRODUCTION

32.

MISSION

33.

BACKGROUND

33.

PURPOSE

44.

GUIDANCE

45.

DEFINITIONS

56.

EMPLOYEE ELIGIBILITY

67.

CANCELLATION OF TRANSACTION

68.

DESCRIPTION OF SERVICES

6A. HOME MARKETING ASSISTANCE

7B. HOME SALE SERVICES

7B.1: Definitions of Eligibility

11B.2: Utilizing Home Sale Services

14B.3: Appraisals

17B.4: Appraised Value Sales (Guaranteed Home Sale Option)

20B.5: Reserved

20B.6: Amended Value Sales

21B.7: Amended-From-Zero Sales

22B.8: Closing Only Option

22B.9: Equity Payment

22B.10: Equity Deficit

23B.11: Equity Advance

23B.12: Completion of Home Sale Services

24B.13: Cancellation of Transaction

24B.14: Customer Service Satisfaction Survey.

24C. DESTINATION AREA SERVICES

24C.1: Buyer's Assistance

25C.2: Rental Assistance

26D. PROPERTY MANAGEMENT SERVICES

26E. HOUSEHOLD GOODS MOVE MANAGEMENT

27F. OTHER RELATED SERVICES

27F.1: Monthly Status Reports

28F.2: Data Communications Capabilities

28F.3: Program Materials

29F.4: Correspondence/Records Retention

DOCUMENT AND DATA DELIVERY SCHEDULE AND MEETINGS.

29A. Documentation and Data.

29B. Meetings.

3110.

SPECIFIC OBJECTIVES TO BE ACCOMPLISHED BY THE CONTRACTOR.

31A. PERFORMANCE REQUIREMENTS SUMMARY (PRS).

32B. PERFORMANCE-BASED RATE ADJUSTMENT

1.

INTRODUCTION

The United States Secret Service (USSS) has a need for contractor relocation management services that will assist the USSS in the transferring of agents within the continental United States, Alaska, Hawaii, Puerto Rico and Guam. This contract also provides services to Agencies or Bureaus authorized to use the relocations services under this contract.

2.

MISSION

The USSS is mandated by statute and executive order to carry out two significant missions: protection and criminal investigations. The USSS protects the President and Vice President, their families, heads of state, and other designated individuals; investigates threats against these protectees; protects the White House, Vice President’s Residence, Foreign Missions, and other buildings within Washington, D.C.; and plans and implements security designs for designated National Special Security Events. The USSS also investigates violations of laws relating to counterfeiting of obligations and securities of the United States 3.

BACKGROUND

The USSS has an ongoing need for relocation management services in order to facilitate the relocation of USSS employees, and to ease the personal and financial burden which can be associated with relocation. The USSS transfers employees in support of the overall USSS mission and based on the needs of the USSS. It is expected that there will be up to 100 transferees that will utilize the home sale service provided through the relocation management services contract each year. The USSS requires home relocation services to be provided within the continental United States, Alaska, Hawaii, Puerto Rico and Guam.

3.

PURPOSE

A. The Code of Federal Regulations (CFR), Federal Travel Regulation, (41 CFR 302) – Relocation Allowances authorizes agencies to contract for relocation management services. Relocation management services are intended to facilitate the relocation of Government employees, and to ease the personal and financial burden which can be associated with relocation. The purpose of this contract is to obtain relocation services that provide transferring employees of the USSS and other Agencies with the following services:

1. home marketing assistance;

2. home sale services;

3. guaranteed home sale option;

4. appraised value sale option;

5. amended value (and amended from zero) options;

6. closing only option; property management services;

7. home finding assistance for buyers and rental assistance.

The contractor shall provide additional services such as expense processing if available. The USSS and each participating Agency may select the individual services required for their respective Agencies.

B. Approximately 100 USSS employees are expected to utilize home sale services annually; as a result, the USSS has an ongoing need for relocation management services in order to facilitate the relocation of USSS employees, and to ease the personal and financial burden which can be associated with relocation. The USSS requires home relocation services to be provided within the continental United States, Alaska, Hawaii, Puerto Rico and Guam. In addition, the contractor shall provide for household goods move management services.

C. The USSS, and each participating agency, may select any or all of the various services offered for individual service. Agencies/agencys authorized to utilize contract include the following:

1. United States Secret Service

2. Federal Law Enforcement Training Center

3. Internal Revenue Service

4.

GUIDANCE

The references listed provide the statutory, regulatory and policy-related framework for the contract that will be awarded. Offerors shall be familiar with this statutory and regulatory guidance.

Federal Acquisition Regulations (FAR): 31.205-35 -- Relocation Costs.

Code of Federal Regulations (CFR): 41 CFR 302 – Relocation Allowances

5.

DEFINITIONS

Agency – The USSS or one of the participating Agencys.

Best Efforts - Very high standard of execution, failure to achieve which may be excusable on demonstration that failure occurred despite one's dedicated and sustained efforts.

Bona Fide Offer - 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. The offer must not contain any contingencies except the following:

a. Specific inspections only when required under Section 8.B.1.4i, 8.B.1.4.i(i), 8.B.1.4.i(ii), 8.B.1.4j, 8.B.1.7 and 8.B.3.3(b)(5)(iv), by virtue of the appraisals; and home inspection.

b. The provision that the purchaser must qualify for financing under terms or conditions generally prevailing in the marketplace at the time the offer is made.

c. Those providing that the seller must convey marketable and insurable title.

Contracting Officer (CO) - Individual at the USSS authorized and warranted to issue this contract and to make subsequent modification(s). The CO has the authority to make a determination on all matters of dispute regarding this contract.

Contracting Officer’s Representative (COR) – Individual authorized and warranted by the USSS Contracting Officer to represent the USSS and Agencies in the day to day management of this contract. Each participating Government agency will designate a COR to represent his/her Agency in the day to day management of this contract.

Designated Certified Appraiser - An individual who is current with the education requirements and meets all other requirements of applicable law to practice as an appraiser and/or be certified in states and/or localities that have certification and/or licensing requirements for appraisers.

Electronic Commerce - The ability to conduct business transactions electronically utilizing the World Wide Web. For the purpose of this contract Electronic Commerce will require all transactions to utilize Secure Socket Layer (SSL) technology as more fully stated in 8.E.2.1.

Fair Market Price - 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, fair market price shall be deemed to 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 law ordinances and codes.

Federal Travel Regulation (FTR) - The FTR (41 CFR 301 and 304) is issued by the Administrator of General Services under the applicable authorities reflected at the beginning of each part of the regulation, and is the primary regulation for use by Federal agencies to govern travel, transportation, and relocation allowances for Federal civilian employees and certain new appointees.

Government - Each federal Agency participating under this contract and the USSS, which is the Agency entering into this contract for the Government.

Home - The actual residence owned and occupied by the employee at the time he/she was first definitely informed by a competent authority within the Agency of a change in official post of Duty. This definition is more fully developed in the "Home Sale Services" Section 8.B.1, "Definitions of Eligibility." The residence must be the place from which the employee regularly commutes to and from work daily when the employee was first notified of the relocation unless the home qualifies for direct reimbursement under some other provision of the FTR.

Home that is not Insurable - A home that does not meet applicable industry criteria for the issuance of a standard form homeowners insurance policy 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.

Home that Cannot be Financed - A home that does not meet applicable industry criteria for a mortgage loan, as determined by a reputable institutional lender, e.g., bank, savings and loan or mortgage company authorized to conduct business in the area. 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."

Household Goods – means personal effects and property used or to be used in a dwelling. This definition shall not be construed to include property moving from a factory or store except such property as a householder has purchased with intent to use for personal use in his/her dwelling.

Mobile/Manufactured Home – A home designed with a frame for moving from one location to another. The basic design is the determining factor. Modifications that may have been made to the structure after it was assembled or moved to a specific location are not relevant. Applicable state and local laws addressing the definition of mobile homes shall be given great weight in the interpretation of the contract.

Reevaluation Process - An opportunity afforded to the employee to contest the offer made by the contractor and to provide additional information that could be used to result in a higher offer for the employee's home.

Title - All interest held by the employee in the home. For purposes of the home sale 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. (Warranty deed does not constitute title transfer.)

Working Days - Monday through Friday, exclusive of Federal holidays.

6.

EMPLOYEE ELIGIBILITY

Determination of an employee's eligibility to participate in the program is solely the responsibility of the Agency and shall not be subject to dispute.

Eligible employees may use any or all of these services or seek service from other sources (such as brokers in the new location) as they desire. However, employees, upon authorization into the program by his/her Agency, may not use both the home sale services and property management services.

Employees whose residences are ineligible for home sale services and employees who do not have a residence to sell are eligible for all other services under this contract.

7.

CANCELLATION OF TRANSACTION

The Government reserves the right to cancel an employee’s relocation and no fees will be paid to the contractor for such cancellation. If the employee’s relocation is canceled, only direct costs incurred by the contractor pursuant to this contract which are reimbursable under the FTR will be paid by the Government. Upon notification by the Government of such cancellation, the contractor may bill for interest charged in accordance with the Prompt Payment Act.

8.

DESCRIPTION OF SERVICES

The following is a detailed description of the various relocation and support services being requested. The description and procedures listed are how the program currently works. Enhancements to the program, efficiencies in the process or other cost saving measures are welcomed and encouraged.

A: HOME MARKETING ASSISTANCE

A.1: The contractor shall provide assistance to an employee who wishes to sell his/her home at the old duty station either independent of or in conjunction with the home sale service if requested. Marketing assistance shall include:

a. Pre-counseling services

b. Development of a marketing strategy, suggested list price and probable selling price and terms;

c. Recommendations for repairs or improvements to enhance salability;

d. Recommendation of a listing broker, if requested;

e. Advice on managing and working with a broker;

f. Advice on negotiating with potential buyers and evaluation of offers;

g. Provision of toll-free 800 telephone lines that may be used by employees to facilitate the above services; and

h. The contractor shall incorporate any outside offer received by the employee into the guaranteed home sale program. If the employee has elected to use marketing assistance, marketing assistance will continue through the entire guaranteed home sale process, including the appraisal period and the SIXTY (60) day acceptance period following the telephonic offer to purchase.

A.2: Marketing strategies, recommendations and advice furnished by the contractor to the employee shall be provided in writing to the employee once per week via Mail, facsimile or electronic mail depending on the employee’s preference.

A.3: The contractor shall advise the employee that a listing agreement with a real estate broker shall include an “exclusion clause” as follows:

EXCLUSION CLAUSE

It is understood and agreed that regardless of whether or not an offer is presented by a ready, willing and able buyer;

(1) No commission or compensation shall be earned by, or due and payable to broker(s) until sale of the property has been consummated between seller(s) and a buyer, the deed delivered to the buyer and the purchase price delivered to the seller(s), and

(2) The seller(s) reserve the right to sell the property to ___________(Name of contractor ) or ____________(Name of any other party to be covered by this exclusion clause) (individually or collectively a “Named Prospective Purchaser”) at any time. Upon execution of a Named Prospective Purchaser and me (us) of an Agreement of Sale with respect to the property, the listing agreement shall immediately terminate without obligation on my (our) part of any Named Prospective Purchaser to either pay a commission or to continue this listing.

It is understood and agreed that this Listing Addendum (Exclusion Clause) is incorporated by reference in and becomes a part of the Listing Agreement for all purposes.

A.4: Upon request by the employee and verification that the property has been listed on the Multiple Listing Service (MLS), the contractor shall enter the employee in the Marketing Assistance Program.

A.5: Upon completion of program employees will receive a survey issued by the Government, and based upon this survey, the contractor will receive a performance rating as described in the Performance Requirements Summary.

B: HOME SALE SERVICES

B.1: Definitions of Eligibility

B.1.1: To be eligible for participation under this contract the employee's interest in the home must be reflected by a property title held in one of the following manners:

a. In the name of the employee alone.

b. In the joint name of the employee and one or more members of his/her immediate family.

c. Solely in the name of one or more members of the employee's immediate family as defined in paragraph B.1.2 below.

d. In the joint name of the employee and a separate unrelated joint owner when pro rata reimbursement could be authorized under 41 CFR 302-6, if the employee sold the residence under the direct reimbursement method. Such eligibility is subject to the conditions as defined in paragraph 8.B.1.3 below. In the name of a separate accommodation party or parties as defined in 41CFR 302-6. The USSS and each participating Agency will make a determination on whether or not to avail themselves to the conditions as set forth in 8.B.1.3.

B.1.2: Members of an employee's immediate family are as follows:

a. Spouse, excluding divorced or legally separated spouse. Changes in marital status may affect eligibility.

b. Children of the employee or employee's spouse who are unmarried and under 21 years of age or who, regardless of age, are physically or mentally incapable of self-support. The term "children" shall include natural offspring, stepchildren, adopted children, grandchildren, legal minor wards or other dependent children who are under legal guardianship of the employee or employee's spouse.

c. Dependent brothers and sisters (including step and legally adoptive brothers and sisters) of the employee or employee's spouse who are unmarried and under 21 years of age or who, regardless of age, are physically or mentally incapable of self-support.

d. Dependent parents (including step and legally adoptive parents) of the employee or employee's spouse.

B.1.3: If a home would be subject to pro rata reimbursement under 41 CFR 302-6 were the employee to sell the residence under the direct reimbursement method, the employee will be eligible for home sale services only if all owners satisfy the Government and the contractor of their willingness and ability to pay their proportional shares of the contract cost directly to the contractor. The proportions shall be determined under rules governing reimbursement of residence transaction expenses contained in 41 CFR 302-6.

B.1.4: The following properties are not eligible for the Home Sale Services portion of the contract:

a. Mobile/Manufactured homes (whether or not affixed to real property owned by the employee).

b. Cooperatives as defined by Internal Revenue Service Code Section 216.

c. Houseboats.

d. Homes not insurable under normal rates and terms.

e. Homes that cannot meet guidelines for Conventional or Government-insured or guaranteed financing.

f. Homes on which construction has not been completed.

g. Dwellings containing more than one unit.

h. Homes with land in excess of that which reasonably relates to the residence site. See 8.B.1.5.b.

i. Homes that do not comply with federal, state and local codes/regulations provided, however, that such homes may be eligible if the conditions are correctable in accordance with procedures in the "Appraisals" and "Amended Value Sales" sections shown elsewhere in this statement of work. Such conditions include, but are not limited to:

(i) Homes that are not adequately serviced by potable water or sanitary waste facilities, as defined by the applicable state and local standards for water and sanitary waste services.

(ii) Homes that do not comply with other applicable state or local codes, such as building, health and fire codes, provided conditions resulting in such noncompliance are documented in accordance with said state or local codes, unless such defects are corrected and approved by proper authorities to meet code requirements.

j. Homes that have been determined to be contaminated by toxic or hazardous substances, such as Urea Formaldehyde Foam Insulation (UFFI) or radon gas, friable asbestos insulation, lead paint and other hazardous or health threatening substances such as seepage by leaking underground storage tanks and toxic waste sites, if such contamination cannot be corrected, provided that such determination has been made pursuant to inspections performed in accordance with the standards and all applicable laws.

(i) Before any inspections for possible contamination by toxic or hazardous substances are conducted, the employee shall be informed of the nature of the inspections that will be performed, applicable local, state and/or federal standards that must be met and the employee shall give permission to conduct said inspections. Within TWO (2) working days prior to such inspections, the employee may request that the contractor use a fully qualified inspector of the employee’s choice, provided that the inspector selected by the employee meets the requirements specified in paragraph 8.B.1.7 below.

B.1.5: Other exclusions and restrictions are as follows:

a. If the employee has rented the home to a tenant(s), and the home is occupied at the time of the transfer, the tenant(s) must vacate the home prior to the employee's acceptance of the contractor's offer. Note: To be eligible for home sale, the home must be the home from which the employee, upon notification of transfer, is commuting to/from daily or in the case of an employee returning from an overseas duty location, is being assigned to a new post of duty other than the post of duty from which the employee was stationed before the overseas assignment. The appropriate Agency COR shall advise the contractor of the eligibility of an employee should questions arise. This restriction applies both to appraised value sales and to amended value sales. (Refer to Section 5 for the definition of Home and Section 8.B.1.8, Vacating Date.)

b. If the employee sells land in excess of that which reasonably relates to the residence site, the Government will pay only the proportional share of the contract price that reasonably relates to the residence site. The Agency will determine the amount of land that reasonably relates to the residence site, based on Agency policy, the nature of the property in question and the prevailing conditions in the market for such property in the area. The Agency may require the contractor to provide a Brokers Market Analysis and/or an appraisal(s) to assist in determining the proportion of excess land.

B.1.6: The employee will not be eligible for provisions of this contract if the contractor cannot reach settlement with the employee within the timeframes established in 41 CFR 302-6 for reimbursement of residence transaction expenses.

B.1.7: Inspections

a. The contractor may order inspection of major components for homes authorized to participate in the home sale service to validate a home’s eligibility for the home sale service and to expedite the offer process.

b. Major components are defined as roof (flashing and skylights); structure (including foundation, bearing walls, joints/trusses, piers/posts, retaining walls, attic roof framing, decks/balcony, porch, and chimney); plumbing systems (water supply lines, plumbing waste lines, and water heater); pool and spas; mechanical systems (heating, cooling, and electrical); wood destroying organisms; moisture/suspected fungal growth; well; septic system; underground fuel storage tanks; and suspected asbestos. If the property is identified as having Exterior Insulation and Finishing Systems (EFIS) or synthetic stucco, the contractor may inspect and test to verify proper installation and/or moisture damage. Additional inspection or tests may be necessary to verify the actual condition of a major component.

c. The initial inspection of major components may be ordered at the same time appraisals are ordered if the Broker Market Analyses, or the employee Homeowner Disclosure Form, indicates possible major property condition defects. In addition, if an appraiser comments on the appraisal report that property inspections are recommended, the contractor will order the specific inspections recommended. In cases where a further specialized inspection is recommended per the specific inspection performed, the employee will have the option of allowing the contractor to order said inspection, or the employee may order the inspection with inspectors of their choosing (specialized inspections are those specified in 8.B.1.4.i. and 8.B.1.4.j). If the employee selects a choice inspector, the inspector must meet the requirements specified in 8.B.1.7.e.(i) – (viii) below. An employee choice inspector, qualified by the contractor, must agree to provide information required by the contractor to facilitate the contractor's placing of the order and payment for services.

d. The instructions to the inspector(s) shall specify that the report should only reference the condition of major components and may not reference cosmetic items. If an appraiser calls for or recommends a General Home Inspection, the contractor will order a Major Component Inspection (MCA).

e. An inspector performing an inspection under this contract shall:

(i) Have no present or future interest in the subject property nor have a relationship that would affect an independent judgment while performing the inspection;

(ii) Not be a Government employee and not be related to the employee, employee’s real estate broker, or the contractor by blood or marriage;

(iii) Not have a relationship with the employee or the contractor (personal or business) that would affect the objectivity and/or independence of the inspection;

(iv) Not have inspected the subject property within the prior TWELVE (12) months;

(v) Have the ability to perform the service in a timely fashion in an effort to enable the contractor to meet the contracts timeframes;

(vi) Not base his/her fee on a percentage of the appraised value of the property or have said fee contingent on the sale of the property;

(vii) Meet all local, state, and federal licensing and certification requirements; and

(viii) Be properly licensed to inspect and test conditions related to the existence of toxic substances.

f. If an inspection reveals a condition that may make a home ineligible for the home sale program, the contractor shall notify the COR and employee and provide copies of the inspection report. The inspection report must include a detailed description and photographs of the area or condition affecting eligibility. The contractor shall specify in writing which items must be repaired in order to correct the eligibility condition. The contractor may not require repair of an item based on life expectancy alone if the item continues to perform as originally intended. Life expectancy may be considered by the appraisers in the valuation process, at the discretion of the appraiser.

g. If a dispute occurs, and reasonable grounds exist to question the decision of the independent inspector as to ineligibility, the applicable COR shall make the final determination of employee eligibility.

h. Offers may be contingent offers only if those repairs and inspections required under Section 8.B.1.4.i–j and 8.B.1.7 have not been completed. If the condition is not correctable or if the employee elects not to correct it, the home shall be ineligible for the home sale services of this contract. Conversely, if the condition(s) is corrected by the employee and a satisfactory re-inspection report(s) is obtained, the contractor shall be required to accept the home on an as is basis. Employees have THIRTY (30) calendar days to completely correct all conditions. The THIRTY (30) days may be waived with the concurrence of the applicable COR and the designated representative of the contractor.

i. If inspections reveal conditions that make a house ineligible for the home sale service, the contractor shall determine if the condition can be corrected and if a binding repair cost can be obtained from a qualified repair contractor. If the condition can be corrected within a reasonable period, not to exceed THIRTY (30) calendar days from the date an employee receives the appraised value offer, and a binding repair cost can be obtained, the offer may be made contingent in accordance with Section 8.B.4.1.a, Appraised Value Sales. If the conditions require remediation of toxic hazardous substances, or if a binding repair cost cannot be obtained, the contractor shall notify the employee and the appropriate COR of the condition. The employee will have FIVE (5) calendar days to elect one of the following:

(i) Delay receipt of the appraised value offer for up to THIRTY (30) calendar days of receiving verbal notice from the contractor of the ineligible condition, and correct the condition within the THIRTY (30) calendar day period. The contractor shall provide the employee with estimated repair costs in accordance with Section 8.B.4.1.b; or

(ii) Receive the appraised value offer contingent upon completion of the repairs by a qualified repair contractor. The contingency will require the employee to complete the repairs within THIRTY (30) calendar days of receipt of the appraised value offer.

B.1.8: Vacating Date.

In all cases in which the contractor will acquire the employee property, once the employee has accepted the contractor's offer, a vacating date shall be established. If the employee is the occupant they may remain in the house during this period. The vacating date shall be no later than FORTY-FIVE (45) calendar days from the date of acceptance. This date may be extended in exceptional cases when approved in advance by the contractor and the COR. However, the employee shall be charged prorated fees during the vacate period for taxes and the regular mortgage payment. If the property is occupied by a renter(s), the renter(s) must vacate prior to the employee's acceptance of the offer. Note: The employee shall maintain the property in substantially the same condition as when appraised and shall pay all maintenance, utility, insurance, mortgage and related costs for the property during the timeframe between the employee's acceptance of the contractor's offer and the date the employee vacates the property. A representative of the contractor may inspect the property within THREE (3) calendar days of vacating to identify damage or the need for debris removal.

B.1.9: Disputes under Completion of Home Sale Services.

Any disputes that cannot be resolved between the contractor and the COR will be referred to the Contracting Officer for final resolution. However, the contractor is still required to provide other services to the employee as specified in this performance work statement.

B.2: Utilizing Home Sale Services

B.2.1: Upon request by the employee and verification by the contractor that the property has been listed on the MLS, the contractor shall enter the employee in the Marketing Assistance Program.

Normally, in cases where an employee independently markets his/her home in accordance with his/her Agency procedures, the employee will be required to enter into a written listing agreement with a licensed real estate broker and such listing agreements shall contain the exclusion clause set forth in this Statement of Work. The COR should confirm with the employee that a listing agreement, including the exclusion clause, is in place before placing an order for home sale services. In exceptional circumstances, the COR may authorize the performance of home sale services by the contractor without a written listing agreement being in force. Such exceptional circumstances may include, but are not limited to, the inability of the employee to list the home with a broker acceptable to him/her within the prescribed time period or the demonstrated capacity and willingness on the part of the employee to market the home on a "For Sale By Owner" basis if acceptable to the employee’s Agency.

B.2.2: Initial Contact With Employee

a. Within ONE (1) working day of notification from the COR or designee of the COR, of an eligible employee's relocation, the contractor will contact the employee and describe the relocation program as approved under the contract. At the initial contact, the employee shall be given the contractor's toll-free 800-telephone number, any additional means of contact and an appropriate point of contact. In addition, the contractor shall:

(i) Advise the employee that if he/she elects to use the home sale services provided under this contract, he/she will be required to sign and return a disclosure statement prior to the contractor's presentation of any appraised value offer of the property. However, the absence of a disclosure statement is not sufficient cause for delay of timely ordering and scheduling of appraisals and inspections.

(ii) Confirm that the employee has been advised by the COR that he/she may not use the home sale services until the employee independently markets the home if applicable, under the employing Agency's internal procedures.

(iii) Advise the employee that if he/she elects to use the home sale services, he/she may, prior to the appraisals being performed, gather and submit information concerning the home, such as comparable sales and listing information, which the employee reasonably feels will affect the value at the home. This information will be furnished in writing by the employee to the appraiser(s).

b. The COR may require additional specific items of information to be included in the contractor's telephone notification to relocating employees of that Agency. If the contractor is unable to reach the employee, the file shall be documented to that effect, and the contractor shall continue to attempt to contact the employee in an expeditious manner. Failure to contact the employee within FIVE (5) working days shall be reported to the cognizant COR.

B.2.3: Distribution of Relocation Information - Within THREE (3) working days of the initial contact with the employee, the contractor will transmit to the employee a summary of the initial contact and provide the employee with copies of all publications pertaining to the relocation program services applicable to that employee. The Government desires "user friendly" web sites, brochures and literature that provide accurate guidance and instructions to user Agency/employees/Relocation Service Coordinators as stated in Section 8.E.3.

a.

Copies of these publications and/or electronic access shall be provided, upon request, to the COR at no additional cost.

b.

Information to be provided to the employee shall be in a PDF format and shall include copies of any disclosure statement(s) required by local, state, or Federal law. In the alternative, if no disclosure statements are required under local, state or Federal law, the contractor must furnish a standard form disclosure statement developed by the contractor for use under this contract. The employee shall be advised that copies of any signed and completed disclosure statement(s) must be provided by the employee to the contractor. Information to be provided shall include a description of the Employee Relocation Council (ERC) appraisal process, title search and inspection procedures the contractor will use pursuant to the "Appraisals", "Appraised Value Sales", "Amended Value Sales" and "Amended from Zero Sales" sections below.

B.2.4: Buyer Value Option (BVO)

The Buyer Value Option (BVO) home sale program focuses on aggressive home marketing to produce employee-generated sales. The BVO program eliminates the home appraisal process and concentrates on complete, ongoing marketing assistance to help employees receive fair market value for their homes. When a bona fide buyer is found, the contractor purchases the home, pays the employee based on the BVO offer, re-lists it, contracts with a purchaser and closes the sale. The Agency saves on tax gross-up expenses on home selling costs that are incurred with direct reimbursement to employee.

The BVO gives employees the opportunity to have more input marketing their homes and usually increases their desire to work toward the sale of the home. In addition, the contractor shall structure the program properly so that the employee obtains the significant tax savings on home selling costs that the program offers. The contractor will accept any bona fide outside offer received by the employee into the BVO Program.

a.

The contractor will provide Home Marketing Assistance to all employees who are authorized and elect to use the Buyer Value Option (“BVO”) service for the sale of their eligible principal residence at the old duty station. The BVO program will provide the employee with the ability to transfer the property to the contractor after the employee obtains an offer from a buyer.

b.

At no time will appraisals be ordered on a BVO authorization, unless the contractor receives an additional authorization for Home Sale Services from the Agency. If such authorization occurs, the transaction will cease to be a BVO, but will instead become a Home Sale Services Transaction (i.e., appraised/amended value) and the employee will no longer be eligible for the BVO. In the event that the employee indicates that he/she is eligible for Home Sale Services without the contractor’s receipt of the employee’s authorization, the contractor will immediately notify the applicable COR.

c.

Negotiating Strategy - Once an employee receives an offer on his/her home, the contractor will provide information to the employee concerning how to negotiate an offer effectively. This information includes evaluating contingencies and providing aid in determining if the buyer is bona fide and whether the offer is to the employee's best advantage and has a reasonable chance of closing.

d.

Incorporation of Outside Offer into the Buyer Value Option - Once the contractor deems the offer bona fide, the employee will again be instructed regarding the guidelines and procedures of the BVO program. Any bona fide outside offer (as determined by the contractor in its exercise of reasonable discretion) received by the employee will be accepted into the BVO Program. The contractor will closely monitor the progress of the resale and closing, as well as provide ongoing counseling to the employee as needed.

e.

After execution of the contract between the employee and the contractor, the contractor will acquire the property from the employee. Upon receipt of the employee's properly signed and notarized BVO documents, Deed to the Property, and other documents included in the BVO Offer Package, the contractor will, generally within ONE (1) working day, execute the Home Sale Agreement. The purchase of properties under the BVO Program and subsequent resale by the contractor are handled in a similar manner to the Amended Sales Programs.

f.

Commission to Selling Agent - Upon the employee's acceptance of the BVO and contractor's receipt of all properly signed, complete and notarized documents, the contractor will enter into a separate listing agreement with the employee’s real estate broker for the purposes of the resale, contracting with an outside buyer and closing of the BVO. Upon the successful closing of the BVO sale, the contractor will pay the broker's real estate commission not to exceed the going rate in the locality where the property is located. Excess commission or “selling bonuses,” if any, will be deducted from the employee’s equity.

g.

BVO Billing - The contractor will bill the Agency for the BVO sales fee in effect on the date the contractor acquires the property based upon the contract sales price of the home.

h.

The contractor will make a good faith effort to consummate such BVO Offer contract with the outside buyer. Should the outside buyer fail to close at no fault of the contractor and the property is subsequently sold to a different buyer, the contractor will notify the Agency and the transaction will revert to a Guaranteed Offer Sale and the property will then be treated as a Regular Sale for the purposes of payment to the contractor. The contractor will bill the Agency the Guaranteed Offer Fee based upon the BVO Offer price.

i.

Maintenance and Carrying Costs - The contractor will advise the employee that he/she will be responsible for maintaining the property in substantially the same condition as at the time of the outside offer contract and payment of all maintenance, utility, insurance, mortgage and related costs for the property until time of vacating, or acquisition date, whichever is later.

j.

Take Title - Upon Acquisition of the property from the employee, the contractor will only take title in those instances where required based on the contractor’s determination.

k.

BVO Equity Disbursement - Upon Acquisition, the contractor will prepare a Statement of Equity, prorating all debits and credits applicable to the property through the Vacate Date or Acquisition Date, whichever is later. The contractor will disburse ONE HUNDRED PERCENT (100%) of the equity within FIVE (5) working days of Acquisition by certified check, wire transfer or cashier’s check. The employee's equity will be calculated utilizing the FTR to establish guidelines for reimbursable expenses. The employee will be responsible for maintaining the property until the Vacate Date or Acquisition Date, whichever is later.

l.

Deficits - In cases where the outstanding mortgage balance(s) and encumbrances exceed the BVO Offer, the contractor will calculate the estimated deficit to the Acquisition Date or Vacate Date, whichever is later, and notify the employee immediately. The employee must pay the contractor the deficit via certified check or cashier's check at the time of the employee's acceptance. The contractor will not complete Acquisition of the property until such additional deficit funds owed by the employee are received by the contractor.

m.

Vacating the Property - Once the employee has accepted the BVO, a Vacate Date will be established not to exceed FORTY-FIVE (45) calendar days from the date of the employee's acceptance (but in no event later than the closing date in an outside sale). If the property is occupied by a tenant(s), the tenant(s) must vacate prior to the employee’s acceptance of the offer.

n.

Indemnification - The contractor will gain possession of and become the sole beneficial owner of the home as of the Acquisition Date or the employee's Vacate Date, whichever is later, and will bear all the burdens of ownership, including all mortgage payments and all expenses related to maintaining, insuring and disposing of the home, while the property is in the contractor's possession. The Agency shall not be liable for any damage, loss, act of God or any other occurrence subsequent to the Acquisition Date by the contractor. The employee shall not be liable for any damage, loss, act of God or other cost or expense from the date of Acquisition by the contractor or the employee's Vacate Date, whichever is later, unless due to an act or omission by the employee or loss or damage is a result of a latent defect which has been misrepresented or omitted from disclosure by the employee or due to any misrepresentation or fraud by the employee.

o.

Mortgage Procedures - The contractor will pay off any mortgage or other obligation secured by the employee's home, within THIRTY (30) working days after Acquisition Date.

p.

Mortgage Assumption - In situations where the employee has accepted a BVO based upon the ability to assume the employee's mortgage, the contractor will not indemnify the employee from liability in the event that a third-party purchaser assumes the mortgage and subsequently defaults on the mortgage. The contractor will require the employee to sign a release to acknowledge the employee's understanding of this provision. In the event the sale to the outside buyer subsequently fails to go to settlement, and the BVO reverts to a Regular Sale, the contractor will begin procedures to pay off the mortgage and seek a formal release of the employee from the mortgage.

q.

Escrow Refund Procedures - The contractor will not credit the employee with the mortgage escrow at the time of the equity disbursement. Upon payoff of the mortgage, the contractor will instruct the mortgagor to send any outstanding escrow refund directly to the employee.

r.

Invoicing and Liability - The date of acquisition of the property represents both the completion of the BVO and Marketing Assistance Services, as well as the date for contract billing purposes unless the outside offer falls through. The Agency and/or the employee shall not be liable for any errors or omissions that are attributable to the contractor, unless due to any misrepresentation or fraud by the employee.

B.3: Appraisals

B.3.1: Selection of Appraisers - Within TWO (2) working days of receipt of the written order for services, the contractor shall provide the following information to the employee: a description of the appraisal process, an overview of the appraiser’s procedures for determining “as is” value and a complete written list of qualified, certified appraisers. The contractor shall provide a minimum of SIX (6) qualified appraiser names to the employee. Should SIX (6) qualified appraisers not be available the appropriate agency COR shall be notified.

If the contractor is unable to contact the employee within FIVE (5) working days of the receipt of the order, the contractor will notify the cognizant COR to discuss efforts that have been made to contact the employee, to request assistance in contacting the employee and to possibly adjust the schedule of future actions to reflect the delay. The COR may make appropriate schedule adjustments if convinced of the good faith efforts on the part of the contractor to contact the employee. If the property is located in a rural area that is not served by the appraisers on its listing, the contractor must notify the COR for approval of the selection of the appraiser.

B.3.2: Standards for Appraisers - An appraiser performing an appraisal under this contract shall:

a. Conduct the appraisal in accordance with the ERC Standards of Professional Practice and Conduct.

b. Derive his/her income primarily from single-family residential appraising (not from commercial appraising and not from acting as a broker).

c. Be familiar with market conditions in the area where the subject property is located.

d. Recent experience and proven past performance in most probable sales price appraising for relocation firms or corporations.

1. Proven past performance of the appraiser(s) is defined for the purpose of this contract as completing THREE (3) ERC appraisals within the past year.

2. To be maintained on the contractor’s list of approved appraisers the appraiser shall maintain a ratio of appraised value of a home to the final sale price of the home appraised of FIVE PERCENT (5%). The average shall be calculated using, at a minimum, the most recent THREE (3) ERC appraisals conducted within ONE (1) year and MLS, or comparable service/sale data.

3. Should an appraiser not be available in a particular geographic area that meets the requirement in 8.B.3.2.a-d, the appropriate COR shall be contacted. The COR shall be presented with all available options for selection of an appraiser in the particular instance.

e. Have access to current local market data through a multiple listing service or if a multiple listing service is non-existent in the area, other cooperative service.

f. Have no present or future interest in the subject property nor have a relationship that would affect an independent judgment in determining anticipated sales price.

g. Not be a Government employee and not be related to the employee, employee’s real estate broker or the contractor by blood or marriage.

h. Not have a relationship with the employee, employee’s real estate broker or the contractor (personal or business) that would affect the objectivity and/or independence of the appraisal.

i. Not have appraised the subject property within the prior SIX (6) months.

j. Have knowledge and experience in using the ERC appraisal form and standards.

k. Have the ability to perform the service in an accurate and timely manner in an effort to enable the contractor to meet the contract's timeframes.

l. Not base his/her fee on a percentage of the appraised value of the property or have said fee contingent on the sale of the property.

m. Be accredited to do appraisals in the required area.

n. Be a member in “good standing” of one of the following appraiser organizations and otherwise meet federal and state licensing requirements: The Appraisal Institute, National Association of Independent Fee Appraisers, American Association of Certified Appraisers, Inc., American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, National Association of Master Appraisers, National Association Real Estate Appraising, National Association of Fee Appraisers, National Association of Review Appraisers and Mortgage Underwriters, National Association of Real Estate Appraisers, or Relocation Appraiser’s Consortium. The Government reserves the right to modify the list of appraisal organizations.

o. Performance of an appraisal shall be accomplished by a qualified appraiser only. No portion of an appraisal shall be performed by an individual who does not meet the required standards of a qualified appraiser under Section 8.B.3.2.

p. Within THIRTY (30) calendar days of contract award, the contractor shall provide to the COR a definition of what a member in good standing is for each of the professional organizations listed in 8.B.3.2.n, as defined by the specific professional organizations.

B.3.3: Procedures

a. The employee may request that the contractor use a fully qualified appraiser as stated in 8.B.3.2, of the employee's choice who is not on the list provided by the contractor. If the appraiser selected by the employee meets all requirements for appraisers as established under the contract, the contractor must approve the employee's selection of appraiser.

1.

Employee’s participating in the Relocation Program shall be advised in writing by the contractor that verbal contact with an appraiser by the employee or others representing the employee after the employees home has been appraised without approval from the cognizant COR and the authorized representative of the contractor, will result in the employee being declared ineligible for continuance in the Agency’s relocation program. The appraiser shall be provided the contact telephone number of the contractor’s representative should this occur.

2.

The contractor shall recommend…