Questions_and_Answers.pdf

Questions and Answers – OPIC-16-Q-0007

1. Will all of the material (loan agreements, company financial statements, etc.) be in English? If not, in what other languages are or might be the documents?

The material will be in English.

2. Is there a past performance recommendation?

There is not a past performance questionnaire.

3. It is mentioned on page 3 of the Combined Synopsis under Volume 1 Technical Proposal that “Past Performance should also be included” in the technical proposal. Is that referring to including recommendations in the proposal that would be of a normal one or two page letter type format?

Yes, vendors should provide references, any contract awards received, any letters of commendation, etc. that demonstrate evidence of past performance. Provide any other information that will aid in the evaluation of past performance.

4. If the answer to question 3 above is “No,” then what format should vendors use?

See answer above.

5. Has a contractor performed similar work for the government in the past? Yes

6. If available, please provide the incumbent contract number.

The incumbent is PNC Bank National Association, contract number is OPIC-11-C-0056.

7. The Statement of Work mentions the requirement to “maintain a loan covenant tracking system and track covenants for each loan.” Is OPIC expecting the successful firm/team to have a software package to do this or would it be acceptable to do this manually? If there is a requirement, what system would be preferred?

No system is required for covenant tracking.

8. It appears that there is a requirement to have Moody’s Financial Analyst system to spread borrower and guarantor financial statements as mentioned in Section 2 of “Required Duties” in the Statement of Work. Is that correct?

OPIC has the Moody's spread system. Vendors would need to be trained and be granted access by

OPIC.

9. Is it required that the price proposal (Volume II) be submitted on the form 1449, or it acceptable to submit it in written form under the same formatting as Volume I?

Vendors can submit their pricing in written form under the same formatting as Volume I.

10. The solicitation expects 30-60 loans under the contractor's portfolio. In order to provide a fixed price estimate, can you specify how many individuals are needed to cover the portfolio, or is it up to the contractor to determine how many resources are needed?

Roughly 4 full-time individuals are needed, but if the contractor’s solution calls for part-time work, it may take more. Vendors can submit either FFP pricing or Labor Hour pricing.

11. Is it acceptable to provide the price quotation via a price ceiling, followed by a target price? Yes, vendors can submit either FFP pricing or Labor Hour pricing.

12. Does OPIC require individuals for 30-60 loans immediately or will the portfolio build up under the direction of OPIC?

Ramp up is expected fairly quickly.

13. On page 2 of the Statement of Work it states that “a sanitized list of a representative sample of 30 direct loans will be made available…” Can you send that list of loans?

See Attachment 1.

14. How often do the borrowers submit financial statements? Should vendors assume semi-annual statements or are they normally sending management reports?

Some report quarterly.

15. On page 3 of the Combined Synopsis under section 7, in the second paragraph, which starts “Volume 1,” the writer refers to “financial responsibility.” What does this mean?

In accordance with FAR 9.104, responsibility means vendors must:

Have adequate financial resources to perform the contract, or the ability to obtain them (see 9.104- 3(a));

(b) Be able to comply with the required or proposed delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments;

(c) Have a satisfactory performance record (see 9.104-3(b) and subpart 42.15). A prospective contractor shall not be determined responsible or nonresponsible solely on the basis of a lack of relevant performance history, except as provided in 9.104-2;

(d) Have a satisfactory record of integrity and business ethics (for example, see subpart 42.15).

(e) Have the necessary organization, experience, accounting and operational controls, and technical skills, or the ability to obtain them (including, as appropriate, such elements as production control procedures, property control systems, quality assurance measures, and safety programs applicable to materials to be produced or services to be performed by the prospective contractor and subcontractors). (See 9.104-3(a).)

(f) Have the necessary production, construction, and technical equipment and facilities, or the ability to obtain them (see 9.104-3(a)); and https://www.acquisition.gov/far/html/Subpart%209_1.html%23wp1084088 https://www.acquisition.gov/far/html/Subpart%209_1.html%23wp1084088 https://www.acquisition.gov/far/html/Subpart%2042_15.html%23wp1075411 https://www.acquisition.gov/far/html/Subpart%209_1.html%23wp1084085 https://www.acquisition.gov/far/html/Subpart%2042_15.html%23wp1075411

(g) Be otherwise qualified and eligible to receive an award under applicable laws and regulations (see also inverted domestic corporation prohibition at 9.108).

16. On page 3, under Section 7, under paragraph “A” it states “Quotation acceptance period of no less than 120 days.” What does this mean?

Vendor quotes must be valid for at least 120 days.

17. Will all the 30 to 60 loans in the portfolio be non-performing? What will be the range and/or the average risk rating (1-12) of the loans in the portfolio? What will be the range of maturity dates for the 30 to 60 loans in the portfolio?

Mostly performing above 8.

18. If one or more loans in the initial portfolio are paid off or foreclosed, will that loan in the contractor’s portfolio be replaced with another loan? Could loans not initially part of the portfolio at the time when the contract is awarded be added to the portfolio in the course of the five year term of the contract? Yes

19. Confirm whether and to what extent the scope of work and required duties may include involvement by contractor in any legal action to enforce contractual obligations and/or recover judgments and/or foreclose on secured assets in relation to the loans in the portfolio.

Not directly. OPIC has attorneys for that.

20. Confirm that OPIC has or will retain local counsel at its expense to address any local law issues that may come up in connection with any portfolio loan’s monitoring and/or workout. As needed.

21. What are the requirements or conditions for subcontracting portions of the scope of work and required duties?

This requirement is 100% set aside for small business concerns. In accordance with FAR 52.219- 14 Limitations of Subcontracting, the small business prime must perform at least 50% of the work.

22. Are the four one year options exercisable in OPIC’s sole discretion or based on satisfaction of certain requirements or conditions? If the latter, what are the requirements or conditions?

Options are exercised based on OPIC’s discretion, which is based on contractor performance. In accordance with FAR 17.207 Exercise of Options, OPIC will exercise an option after determining the following:

(1) Funds are available;

(2) The requirement covered by the option fulfills an existing Government need;

(3) The exercise of the option is the most advantageous method of fulfilling the Government’s need, price and other factors (see paragraphs (d) and (e) of this section) considered;

(4) The option was synopsized in accordance with Part 5 unless exempted by 5.202(a)(11) or other appropriate exemptions in 5.202;

(5) The contractor is not listed in the System for Award Management Exclusions (see FAR 9.405- 1);

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(6) The contractor’s past performance evaluations on other contract actions have been considered; and

(7) The contractor’s performance on this contract has been acceptable, e.g., received satisfactory ratings.

23. Please clarify the pricing table in the Form SF1449. Is it intended that the "Units" column refer to loans or to a period of time?

The “units” column refers to number of loans.

24. Will OPIC accept alternative fixed pricing structures that provide better economics to OPIC? Yes, Vendors can submit either FFP pricing or Labor Hour pricing.

25. Please clarify OPIC's intentions regarding interaction between the contractor and the borrower.

a. Does OPIC intend for all communication with the borrower to be conducted by a member of PMD? Most substantive communication should include a PMD officer.

b. If not, when would OPIC intend that there be direct communication between the contractor and the borrower? Administrative matters, including follow-up on reporting requirements may not need a PMD officer’s involvement.

26. Task 7 of the Statement of Work, requires the contractor to actively manage a subset of the assets, including the potential to support collection efforts.

a. What is the estimated percentage of assets that would fall into these categories? Estimate 10-20%

a. Can you provide more detail on the type of support that the contractor will be expected to provide for the actively managed assets? Support the PMD asset managers in monitoring active loan portfolio.

b. Can you provide more detail on the type of assistance that the contractor will be required to perform to support collection efforts? It may vary, but monitoring compliance with workout agreements.

27. With respect to the Financial Processing/Clearinghouse requirements - Will the contractor be required to handle and process cash (wires) or will it only need to make recommendations regarding disbursements and payments? No handling of payments.

28. Will the contractor be required to perform site visits to the collateral locations? Not required

29. What is the total loan balance of the anticipated loan pool and average loan balance? Loans range from $5 million to $200 million. Average is $10 million to $20 million.

30. Please provide the current risk rating assigned to the likely loans that will be assigned. Most are above 8.

31. Will the contractor calculate the loan payment amounts due upon resets or is that handled internally by OPIC? Loan payment calculations are handled outside of PMD.

32. Given that the initial loan pool may be between 30 and 60 loans, can the pricing be shown on a scale that varies dependent upon number of loans assigned? Yes

33. How many of the loans to be assigned are expected to require a workout action plan? As an estimate, it may be in the 10-20% range.