PWS.pdf

Export-Import Bank On Behalf Of

Office of Board Authorized Finance Asset Management Division

To Provide Loan Recovery Assistance

PERFORMANCE WORK STATEMENT (PWS)

January 21, 2021

1.0 INTRODUCTION

EXIM Bank seeks to contract for loan recovery assistance from a recovery firm principally collecting balances of certain paid claims under its credit guarantee and insurance programs.

The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary to perform loan recovery services of an EXIM Bank defaulted debt of Claim nos. I200475 & I200549 / Industrializadora de Productos Agricolas de la Cuenca del Papaloapan SA de CV (IPACPA) in Mexico as defined in this Performance Work Statement except for those items specified as Government furnished property and services.

2.0 BACKGROUND

(a) The Export-Import Bank of the United States (“EXIM Bank”) supports the financing of U.S.

goods and services. It assumes credit and country risks the private sector is unable or unwilling to accept. In covering these risks EXIM Bank pays on claims related to insurance policies and guarantees. Upon payment of the claim it becomes the responsibility of the Asset Recovery Group (“ARG”) within the Asset Management Division of EXIM Bank (“AMD”) to seek repayment from the debtor and/or guarantors.

(b) Throughout this document the term “recovery officer(s)” will be used. For the purposes of this document, recovery officer(s) refers to the International Recovery Officers, Working Capital Officers, and Managing Director – Recoveries; within ARG.

3.0 SCOPE

The contractor shall provide collection services and servicing of defaulted loans which may include borrower negotiations, restructuring, and workout agreements. The Contractor shall provide the following but not limited to provide loan recovery services, institute legal proceedings, provide credit restructuring services and take such other actions required to effect recovery for EXIM Bank.

4.0 OBJECTIVES (NATURE OF WORK)

To recover a s s e t s , institute legal proceedings and/or provide credit restructuring related to the claim(s), involving the d e b t o r and guarantor(s).

5.0 APPLICABLE DIRECTIVES

1. EXIM Bank’s AMD procedures

2. Industry practices as observed by peer institutions including Federal

Agencies, foreign ECAs, and multilateral development banks

6.0 GOVERNMENT FURNISHED INFORMATION OR PROPERTY

EXIM Bank will notify Contractor by email from the COR as to the specifics of each case to be recovered.

7.0 SPECIFIC REQUIREMENTS/TASKS

Task Introduction:

Contractors shall analyze the specifics of the case, consider recovery strategies and implement actions based on the potential recoveries and risks with the aim of maximizing collections on behalf of the EXIM Bank.

Contractor will instruct debtor to remit recovered funds directly to EXIM designated accounts.

In the event the Contractor receives directly recovered funds, the Contractor shall remit the funds in their entirety (without deduction of expenses or collection fee) promptly to EXIM’s designated account.

EXIM reserves the right to cease work on case in the event that:

1. EXIM determines the Contractor’s work is unsatisfactory

2. The Contractor requests release from the Case

3. It is determined to be in the best interest of the Government

Task 1 – The Contractor shall provide Case Analysis/Due Diligence:

a. The Government shall send a copy of the collection claim file via email.

b. The Contractor shall perform due diligence and analyze the specifics of the case, consider recovery strategies and recommend actions based on the potential recoveries and risks with the aim of maximizing collections on behalf of EXIM Bank.

c. The Contractor shall ensure there is no conflict of interest between the firm and the debtor. If so, Contractor shall immediately make EXIM Bank aware of this conflict within 5 business days via email. No work shall be completed by vendors where a conflict of interest is present.

d. The Contractor shall conduct a preliminary research /evaluation of the case, including, but not limited to, asset search, credit analysis and legal actions registered against the obligor.

e. The Contractor shall submit invoicing for this Task 1 effort no earlier than submission of due diligence report. Compensation for this is the negotiated fee.

Task 2 – The Contractor shall recover Defaulted Debt per Contingency Fee Basis

a. The Contractor shall attempt extrajudicial collection of the debt within 10 business days of the Recovery Officer’s authorization to proceed and report the results of such attempts to the Recoveries Group, Asset Management Division.

b. The Contractor shall provide a written brief (preferably in English) via email to EXIM Bank’s COR on a frequent basis, at a minimum on a quarterly basis for active cases. The reports should discuss the life cycle of the cases and enable the COR to understand the particular situations surrounding the progress of the case. The COR will also monitor the work of the Contractor through periodic site trips.

c. The Contractor shall provide a Collected Funds report not later than fifteen (15) calendar days after notifying COR notification of incoming funds and identify fee to be received based on percentage of all monies actually collected in accordance with the Assignment email.

d. Contractor understands compensation for Task 2 services is limited to the negotiated contingency fee percentage. No expenses will be reimbursed unless approved by COR.

These expenses are to be determined on a case by case basis.

Task 3 – The Contractor shall conduct Litigation

a. Prior to taking legal action and incurring related costs, the Contractor shall request and obtain in writing the approval from the Recoveries Group, Asset Management Division and EXIM Bank’s Office of the General Counsel through the Litigation Request Form.

Once authorized, the Contractor shall file legal proceedings against the Debtor [and the Guarantors].

b. The Contractor shall provide a break-down of anticipated work/cost on a Litigation Request Form. The Government will review the Form to determine the acceptability of request/cost. Once the Contractor is authorized by EXIM Bank to pursue litigation against a debtor, work of this nature can be completed by the Contractor.

c. Contractor understands compensation for Task 3 services is divided in two sections: 1.

Legal expenses, approved in advance; 2. Negotiated contingency fee percentage applied to the total amount collected. (See Task 2 paragraph d.)

d. Contractor understands EXIM may direct that litigation be commenced soon after assignment of case if deemed to be in the best interest of the Government.

8.0 CONTRACTOR QUALIFICATIONS

a. Work is to be completed in Mexico and Contractor shall have experience in: locating assets, in particular hidden assets if any, and embargoing (placing liens) and executing upon such assets; drafting / negotiating restructuring agreements appropriate for debtors of the type in this matter, and litigating the collection matter at all levels of courts through the debtor’s country.

b. The Contractor shall be a law firm registered/licensed in the Mexico Bar Association to practice law in Mexico. Any subcontracted effort must also be registered/licensed in the Mexico Republic Bar Association.

c. The Contractor shall have experience handling collection matters of this sort on behalf of foreign entities, and especially foreign government entities such as EXIM Bank (Contractor shall provide documentation noting relevant experience with foreign government entities). This requirement is to ensure Contractor is able to understand legal risks that may be raised during representation of the foreign government entity. These risks include the risk of counter-suits, referrals for criminal prosecution, withholding tax questions, and the ability to communicate in the local language.

9.0 DELIVERABLES

Deliverable Item PWS Section Due Date Format/ Quantities

Project Task Log

Project Task Log, Para a.

Once every other month

Electronic, (In English)

Conflict of Interest notification

Task 1 Para b.

Within 5 business days of identifying conflict

Email

Written Brief for active Cases Task 2 Para b. Quarterly on active cases Email

Collected Funds report Task 2 Para c.

Fifteen days from COR notification in terms of incoming funds

Written report

Litigation Request Form with break-down of anticipated work/cost

Task 3 Para b.

Upon determined litigation is required

Written Document

10.0 PERFORMANCE REQUIREMENT SUMMARY (PRS)

Task or Deliverable

Performance Standard

Acceptable Quality Level

(AQL)

Surveillan ce Method

Performance Rating Incentives/Dis incentives

Task 1:

Case Analysis/Du e Diligence

Timeliness, complete and thorough record

100% Compliance with

Surveillan ce by

EXIM

Bank

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Positive or negative CPARS rating keeping, good communicatio n.

Mexico Law, thoroughness and accuracy.

Regular and ad-hoc meetings between contractor and Government as needed

COR will be performed as the Event occurs.

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

Unsatisfactory (less than 90%).

Conflict of Interest notification

Complete, accurate and timely

100% accuracy.

All deliverables as described in the PWS and specified in the approved Schedule of Deliverables

Surveillan ce by

EXIM

Bank COR will be performed as the Event occurs.

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

Positive or

CPARS rating

Task 2:

Recovery of Defaulted Principal/Co ntingency

Timeliness, complete and thorough record keeping, good communicatio n.

100% Compliance with Mexico Law, thoroughness and accuracy.

Regular and ad-hoc meetings between contractor and Government as needed

Surveillan ce by

EXIM

Bank COR will be performed as the Event occurs.

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

Written Brief for active Cases

Complete, accurate and timely

All cases accounted for

100% accuracy.

All deliverables as described in the PWS and specified in the approved Schedule of Deliverables

Surveillan ce by

EXIM

Bank COR will be performed as the Event occurs.

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

CPARS rating

Collected Funds report

Complete, accurate and timely

Accurate accounting of expenses.

100% accuracy.

All deliverables as described in the PWS and specified in the approved Schedule of Deliverables

Surveillan ce by

EXIM

Bank COR via portfolio monitorin g of existing outstandin g claims as well as site visits.

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

CPARS rating

Unrecovered cases might be recalled back to EXIM Bank’s portfolio and Contractor instructed to “Cease and Desist” from any further recovery efforts.

Task 3:

Provide Litigation

Timeliness, complete and thorough record keeping, good communicatio n.

100% Compliance with Mexico Law, thoroughness and accuracy.

Surveillan ce by

EXIM

Bank COR will be performed

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Regular and ad-hoc meetings between contractor and Government as needed as the Event occurs.

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

Litigation Request Form with break-down of anticipated work/cost

Complete, accurate and timely

Clear breakdown of projected expenses.

100% accuracy.

All deliverables as described in the PWS and specified in the approved Schedule of Deliverables

Surveillan ce by

EXIM

Bank COR will be performed as the Event occurs.

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

CPARS rating

Business Relations

Professional and respectful of all parties

Regular and ad-hoc meetings between contractor and Government

Semi- Annual Performan ce Evaluation

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%

Managemen t of Key Personnel

Appropriate credentials for the work involved Attends scheduled meetings if needed

Available for ad-hoc meetings as necessary for contractual concerns

Regular and ad-hoc meetings between contractor and Government as needed

Semi- Annual Performan ce Evaluation

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Exceptional (greater than 99%)

Very Good (between 98% and 96%);

Satisfactory (between 93% and 95%)

Marginal (between 91% and 93%