Source of Sought HECM.pdf

Sources Sought Synopsis

SOURCE OF SOUGHT

The Department of Housing and Urban Development (HUD) is issuing this Source of Sought as a means of conducting market research to identify parties having an interest in and the resources to support this requirement for a Contractor’s solution to provide business services for the Home

Equity Conversion Mortgage (HECM) Accounting Business System. The result of this market research will contribute to determining the method of procurement. The applicable North

American Industry Classification System (NAICS) code assigned to this procurement is 541219

Other Accounting Services.

This Source of Sought is being issued solely for information and planning purposes, it does not constitute a Request for Proposal (RFP) or a guarantee to issue an RFP in the future. There is no solicitation at this time and the Government will not accept unsolicited proposals. This request for capability information does not constitute a request for proposals; Submission of any information in response to this market survey is purely voluntary. Responders are advised that the Government will not reimburse for any information or administrative costs incurred in response to this source of sought; all costs associated with responding to this source of sought will be solely at the interested parties' expense. Not responding to this source of sought does not preclude participation in a future RFP, if one is issued. The government assumes no financial responsibility for any costs incurred.

If your organization has the potential capacity to perform these contract services, please provide the following information in the capability statement:

a. Company name, mailing address, e-mail address, telephone and FAX numbers, website address (if available), and the name, telephone number, and e-mail address of a point of contact having the authority and knowledge to clarify responses with Government representatives.

b. Name, title, telephone number, and e-mail addresses of individuals who can verify the demonstrated capabilities identified in the responses.

c. Business size for NAICS 518210, (size standard $40.0 million) and status, if qualified as an 8(a) firm (must be certified by SBA), Small Disadvantaged Business (must be certified by SBA), Woman-Owned Small Business, HUBZone firm (must be certified by SBA), and/or Service-Disabled Veteran-Owned Small Business (must be listed in the VetBiz

Vendor Information Pages).

d. DUNS number, CAGE Code, Tax Identification Number, Unique Entity ID (UEI) and company structure (Corporation, LLC, partnership, joint venture, etc.). Companies also must be registered in the System for Award Management (SAM) at https://www.sam.gov/portal/SAM/#1 to be considered as potential sources.

e. Identification of the firm's GSA Schedule contract(s) by Schedule number and contract number and SINs that are applicable to this potential requirement are also requested.

f. If the company has a government approved accounting system, please identify the agency that approved the system.

The government will evaluate market information to ascertain potential market capacity to 1) provide services consistent in scope and scale with those described in this notice and otherwise anticipated; 2) secure and apply the full range of corporate financial, human capital, and technical resources required to successfully perform similar requirements; 3) implement a successful project management plan that includes: compliance with program schedules; cost containment; meeting and tracking performance; hiring and retention of personnel and risk mitigation; and 4) provide services under a performance based service acquisition contract.

Based on the responses to this sources of sought notice/market research, this requirement may be set-aside for small businesses or procured through full and open competition, and multiple awards may be made. Telephone inquiries will not be accepted or acknowledged, and no feedback or evaluations will be provided to companies regarding their submissions.

The government expects to conduct one-on-one market research sessions in 30-minute intervals to discuss the tasks of the proposed contract and the responses to the questionnaire for Vendors who successfully demonstrate their ability to perform the tasks identified in the draft PWS.

Submission Instructions: Interested parties who consider themselves qualified to perform the above-listed services are invited to complete the attached questionnaire and submit a capability statement no larger than 5 pages (8.5x11 inches), single spaced, 12pt font. The questionnaire will not be included in the page count of the capability statement. The capability statement shall demonstrate your experience/qualification to successfully perform the tasks identified in the

PWS.

Responses to this announcement will not be returned, nor will there be any ensuing discussions or debriefings of any responses. However, information obtained as a result of this announcement may be reflected in the subsequent solicitation, and HUD, OCPO may contact one or more respondents for clarifications and to enhance the Government’s understanding. This announcement is Government market research and may result in revisions in both its requirements and its acquisition strategy based on industry responses. Respondents must submit questions via email to timothy.a.danowski@hud.gov and Dwayne.e.gist@hud.gov no later than

November 12, 2024, 2:00 PM Eastern Time for consideration. It is estimated the questions will be posted by November 18, 2024, 2:00 PM Eastern Time and the Source of Sought will also close at this time. Capability statements are due via email to timothy.a.danowski@hud.gov and

Dwayne.e.gist@hud.gov not later than November 29, 2024.

Background: The HECM program enables eligible senior homeowners to convert a portion of their accumulated home equity into available funds without requiring repayment for as long as the borrower complies with the terms of the mortgage.

Borrowers have the option to receive their loan proceeds as a lump-sum payment at closing, a scheduled monthly payment, a line of credit, or a combination of a scheduled payment and line mailto:timothy.a.danowski@hud.gov mailto:Dwayne.e.gist@hud.gov mailto:timothy.a.danowski@hud.gov mailto:Dwayne.e.gist@hud.gov of credit. Borrowers who choose to receive their loan proceeds in any manner except for a lump-sum payment at origination will sign two promissory notes and two mortgages, one set to the originating mortgagee and the second to the Secretary of HUD. HECMs do not have a pre-determined maturity date and remain active as long as all terms of the mortgage are met.

HECMs are originated by FHA-approved mortgagees, and provided all criteria are met, are insured by FHA. This insurance protects mortgagees from covered losses. Mortgagees are required to report information to FHA regarding insured HECMs and must request approval from HUD for some servicing tasks as well as for extensions of time.

Since HECMs do not have a pre-determined maturity date, FHA will accept assignment of qualified HECMs when the loan balance reaches a designated threshold. When HUD accepts assignment of a HECM, HUD assumes all responsibilities for servicing the loan until final disposition.

This will be a new contract based on current award 86615324C00012. The current contract encompasses both accounting and business services and was formally procured as a sole source bridge. The proposed new contract will only include the accounting business service module.

Historically this service used a small business set aside strategy under NAICS code 541249;

however, the program is open to other NAICS codes and acquisition strategies, if more appropriate. The program is also open to questions and input into the draft PWS as we intend to develop a rigorous project.

General Description of Work:

• Development of an Accounting Business System

• Help desk support and training

• Certification and Accreditation (ATO)

• Testing

Contemplated performance metrics:

Please see attached Performance Work Statement (PWS).

Contemplated report requirements:

Please see PWS Section 6 for deliverables.

Contemplated dollar value of the project:

It is anticipated the dollar value will be between $7M and $8M for the base year plus 4, 12-month option periods, if exercised.

Contemplated place of performance:

The performance will be at the Contractor’s facility.