Q A V FINAL NFP-RFP-2010 060812.doc

HCERA /SAFRA – Not-For-Profit (NFP) Servicer Program Solicitation Number: NFP-RFP-2010

Questions and Answers, Posting #5

June 8, 2012

ELIGIBILITY.

Question. If two or more otherwise eligible not-for-profit entities share common ownership, management, or control, will each entity receive a separate allocation of 100,000 borrower accounts?

Answer. No. Two or more otherwise eligible not-for-profit entities that share common ownership, management, or control are eligible for one single allocation of 100,000 borrower accounts.

Question. If an NFP and/or its affiliate hire a third party to perform borrower-specific student loan servicing functions on their behalf, will each entity receive a separate allocation of 100,000 borrower accounts?

Answer. If an NFP and/or its affiliate do not directly perform borrower-specific student loan servicing functions but enter into an arrangement for a third party to perform these functions on their behalf, the NFP and the affiliate will receive one single allocation of 100,000 accounts This allocation may be awarded to either the parent or the affiliate.

Question. If an NFP and its affiliate have an agreement under which the affiliate directly employs a majority of the individuals who perform borrower-specific student loan servicing functions on the loans to be serviced by the NFP and the affiliate for the Department, will each entity receive a separate allocation of 100,000 borrower accounts?

Answer. Yes. If an NFP and its affiliate have an agreement under which the affiliate directly employs the majority of individuals who perform borrower-specific student loan servicing functions on the loans to be serviced by the NFP and the affiliate for the Department, the NFP and the affiliate are each eligible to receive one allocation of 100,000 borrower accounts.

Question. Can the Department clarify who may request reimbursement for start-up costs in a teaming situation, and how they will be reimbursed?

Answer. As provided in solicitation/contract language, incurred start-up costs of up to $300,000 may be reimbursed per entity, provided that they are actual, reasonable, allowable, and allocable costs incurred in meeting the Government’s stated requirements, in accordance with FAR 31.201. In other words, start-up costs are not reimbursed at the team level, but rather, $300,000 may be reimbursed for each individual entity on a team, provided that the requesting entity is eligible and qualified, and that the entity for which reimbursement is requested has actually incurred the start-up costs.

Example #1:

NFP Subcontractors A, B and C would invoice the Prime for actual start-up costs incurred, not-to-exceed $300,000 per entity. Total invoices received from NFP Subcontractors by the Prime would be $700,000. The Prime may then invoice the Department for a total amount of $1,000,000.

Example #2:

NFP Subcontractor B would invoice the Prime for actual start-up costs incurred, not-to-exceed $300,000 per entity. Total invoices received from NFP Subcontractors by the Prime would be $100,000. The Prime may then invoice the Department for a total amount of $400,000.

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