opc23287d.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE PAGE OF

PAGES

1 79

2. AMENDMENT/MOIFICATION NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQUEST NO. 5. PROJECT NO. (If applicable) A0004 June 26, 2008 N/A

6. ISSUED BY CODE 7. ADMINISTERED BY (If other than Item 6) CODE U.S. Department of Housing and Urban Development (HUD) Office of the Chief Procurement Officer 451 Seventh Street, SW Room 5266 Washington, DC 20410

Katharina Washington, Contract Specialist Office: (202) 402-3240

Email: Katharina.Washington@hud.gov

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State, and ZIP Code) (√) 9A. AMENDMENT OF SOLICITATION NO.

X R-OPC-23287

Potential Offeror 9B. DATED (SEE ITEM 11) May 2, 2008

10A. MODIFICATION OF CONTRACT/ORDER NO.

CODE FACILITY CODE 10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

X The numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of offers is extended X is not extended Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a) By completing Items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or, (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE RECEIVED AT THE

PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If, by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPRIATION DATA (If required) Not Applicable

13. THIS ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS,

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

(√) A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN

ITEM

10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation data, etc.)

AS SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103.(b) .

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority

IMPORTANT: Contractor is not is required to sign this document and return copies to the issuing office.

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

The purpose of this amendment is to publish responses to some questions presented by potential offers, to publish the Pre- Proposal Conference transcript, to make changes to Section C, to incorporate FAR 52.237-3 by reference, and to notify that the proposal due date is subject to change.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15A. NAME AND TITLE OF SIGNER (Type or print) 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print) Dana Y. Long

CONTRACTING OFFICER

15B. CONTRACTOR/OFFEROR 15C. DATE SIGNED 16B. UNITED STATES OF AMERICA 16C. DATE SIGNED

(Signature of person authorized to sign)

BY

(Signature of Contracting Officer)

NSN 7540-01-152-8070

PREVIOUS EDITION UNUSABLE

30-105 STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA

FAR (48 CFR) 53.243

R-OPC-23287

Amendment No. A0004

1. The closing date referenced in Amendment 2, states that “Proposals must be submitted no later than

July 7, 2008 at 12:00 Noon local time…” You are hereby notified that this date is subject to change.

2. Attachment 1 is to publish responses to ninety-one (91) questions presented by potential offerors.

3. Attachment 2 is to publish the transcript of the Pre-Proposal conference.

4. Change Section C.3.06.01 to read, “Item 0002 and if exercised Option Items 0102 and 0202.”

5. Change Section C.3.06.04 to read, “Item 0002 and if exercised Option Items 0102 and 0202.”

6. Change Section C.3.08.03 to read, “Item 0006 and if exercised Option Items 0106 and 0206.”

7. Change Section C.3.11.01 to read, “Items 0008 and 0009 and if exercised Option Items 0108, 0208, 0109 and 0209.”

8. Change Section C.3.14 to read, “Item 0012AA, 0012AB and if exercised Option Items 0112AA, 0112AB and 0212AA, 0212AB.”

9. Change Section C 3.15.02(a) to read, “…Provide all hardware, software and connectivity required to perform the service, including T-1 lines to transmit the services…..”

10. Section I – Incorporate FAR 52.237-3, Continuity of Services (JAN 1991) by reference.

A0004 to Solicitation Number R-OPC-23287 Questions and Answers

No. Section Question Response

1 B

Schedule B, CLIN XX05 refers to a manual process for certifications? Is there a CLIN for GinnieNET certifications?

No, the electronic certification process using GinnieNET is to be included in the unit costs per pool. See Section C.3.03.01 for a description of this process.

2 B.5.02 Does the 19,000,000 that is referenced in CLINs 0006 include both active and inactive security positions?

No, the figure represents active security positions.

3 B.5.02

For each of the Items that list an "Estimated Quantity" in Schedule B, what were the actual monthly quantities for each of the most recent 12 months?

See Attachment 1 for monthly quantity breakdown.

4 B.5.02.0002AC

Please clarify Base Period volume estimate for Blank Certificates. The information provided indicates 1,000 packages of 1,000 certificates.

Blank certificates are currently ordered in unit packages of 1000.

5 B.5.02.0003

Please clarify Base Period Help Desk description.

Estimate reflects assistance provided by the Contractor to the Issuer in order to resolve pooling discrepancies. Cost is per unit (pool), and is irrespective of the number of errors resolved per pool.

6 B.5.02.0005 Please clarify Base Period Manual Process of Certificates description.

Section B.5.02 refers to manual pool certification. Manual certification typically refers to the physical processing of pool documents by the Contractor.

7 B.5.02.0009AB

Please differentiate volume estimates for Ginnie Mae II P&I guarantee fee, collections and payments.

On a monthly basis, Ginnie Mae collects P&I payments and Guaranty Fees, via wire transfer, on all GNMA II pools. Pool volume estimates would be the same.

8 B.5.02.007

Does the volume noted in the Certificate Transfer represent physical transfer or both physical and uncertificated?

The volume represents physical transfer only.

9 C.2.03

Please clarify the following: this section indicates funds for payment of commitment fees do not flow through CPTA, but indicates IPMS system tracks timely payment. (See section 3.03)

Commitment fees, not to be confused with Guaranty Fees, are directly wired to Ginnie Mae by the Issuer. The Ginnie Mae Finance Office will provide information to the Contractor on the commitment fees collected. The Contractor shall input the information into IPMS and perform a daily reconciliation that proper fees have been collected based on commitment amounts requested.

10 C.3 Are there any functions referenced in the RFP that are not performed by the incumbent?

Functions performed by other Ginnie Mae Contractors are indicated in the RFP.

1 of 9 6/26/20083:21 PM

No. Section Question Response

11 C.3.06 Are we required to create or print a certificate for the book entry for the federal issue position?

No, all positions held in book entry form do not have a corresponding physical certificate.

12 C.3.06.01

Please clarify the following discrepancy between Sections B.5 and C.3: in Section 3.06.01, the task references CLIN 201;

however; there is no CLIN 201 listed in Section B.5

Section 3.06.01 has an incorrect reference.

CLIN 0201 should be CLIN 0102

13 C.3.06.03

The tax id number printed on the certificate is a violation of privacy regulations; would Ginnie Mae consider removing the requirement?

Ginnie Mae will amend this requirement to ensure the privacy of all physical certificate holders.

14 C.3.06.04

Please clarify the following discrepancy between Section B.5 and C.3: in Section C.3.06.04, the task references CLINs 101 and 201; however, these CLINS are not listed in Section B.5.

Section 3.06.04 has an incorrect reference.

Option Item CLIN 0101 and 0201 should be CLIN 0102 and 0202.

15 C.3.06.04

Are physical securities delivered to the Depository or via a transaction with the Depository?

No. Physical Certificates are only used for positions held outside of the Depository.

Security positions are transmitted to the Depository electronically.

16 C.3.08

Describe How transfer turnaround, written inquiry turnaround and lost holder are tracked today?

All transfer turnaround, written inquiry turnaround and lost holder are tracked by the incumbent's propriety system.

17 C.3.08.03

Please clarify the following discrepancy related to Section B.5: in Section 3.08.03, the CLINs for option years (105 and 205) do not correspond to base year CLIN (0006).

The reference is incorrect and should be changed to option years 0106 and 0206.

18 C.3.09 How is the transfer fee defined? Please see the MBS Guide, Chapter 6-2.

19 C.3.09

What is the information that needs to be held in electronic format upon destruction of the certificates?

All data information about the certificate must be maintained electronically. Physical certificates are archived until such time as Ginnie Mae instructs the Contractor to destroy said documents.

20 C.3.09.01 Please confirm if any services are required for transfers between two book entry positions.

No services are required for transfers between two book entry positions.

21 C.3.09.02

Are transfers within the Fed Book Entry System required to be reported to the Issuer if the global book entry position remains unchanged?

No, they are not.

22 C.3.09.02

(b) Has the incumbent destroyed cancelled and voided certificates held by it that have cancellation dates more than six years prior to their destruction?

Yes, at Ginnie Mae's direction.

2 of 9 6/26/20083:21 PM

No. Section Question Response

23 C.3.09.05

Is there a standard form of indemnification required by Ginnie Mae?

No; however, Ginnie Mae maintains standard letters of indemnification for registered holders who have lost their physical certificate.

24 C.3.09.05

When issuing a replacement certificate for a lost, stolen or destroyed certificate, does the HUD 11705 form need to be delivered to Ginnie Mae?

No, HUD Form 11705 is a pooling document.

25 C.3.09.05 If a certificate is reported lost by the issuer or a certificate holder, must the GTR be notified?

No, only if the Contractor loses the certificate does the GTR need to be immediately notified.

26 C.3.09.05

If physical presentment is not required for final distributions, what are the requirements to follow through on the security to obtain a cancelled certificate?

Physical presentment is required for final payment of certificated securities.

27 C.3.09.06 Are there specific insurance requirements or is it simply whatever is customary per industry standard?

See Section A of C.3.09.06 of the RFP for specific guidelines.

28 C.3.10.05 How many subscribers are currently receiving monthly tapes?

There are two current subscribers. Sector Inc.

is not considered a subscriber.

29 C.3.10.06

What is the size of the distribution list and how is the information currently disseminated?

The distribution list is currently three (including Sector Inc.). The Sector tape is distributed electronically, the other two are by USPS.

30 C.3.10.06 Please confirm that the fees identified are retained by the Contractor.

Yes, the fees are retained by the Contractor.

31 C.3.10.09 Please provide a sample of the Monthly Exception Report by Issuer?

A sample of the Monthly Exception Report is located in the Ginnie Mae Reading Room in an IPMS Report Binder Book No.12.

32 C.3.11

Section C.3.11.01(b) says that the Contractor shall “Act as Ginnie Mae's paying agent for: . .

. All emergency payments for Ginnie Mae I or Ginnie Mae II securities where the responsible Issuer cannot make payment”. Section C.3.11.09 covers emergency payments only with respect to Ginnie Mae I securities.

Section C.3.11.10, relating to remittance advices also refers only to "the Ginnie Mae I MBS Emergency Payment Process". Section C.3.11.11(a) also refers only to the requirement to "Make emergency payments on Ginnie Mae I securities if an Issuer is unable to make a payment." Is the Contractor responsible for making emergency payments on both Ginnie Mae I and Ginnie Mae II MBS?

If so, please clarify the requirements in the

RFP.

The Contractor is, by definition, Ginnie Mae's Paying Agent for the MBS II Program.

Furthermore, In the event that an Issuer in the Ginnie Mae I MBS Program is unable to make their payment obligation to investors, Ginnie Mae may direct the Contractor to make that payment in order to fulfill its full faith and credit guaranty. Ginnie Mae's Office of Finance would wire funds to the Contractor for distribution to registered holders.

3 of 9 6/26/20083:21 PM

No. Section Question Response

33 C.3.11 Is the FRB of NY the originator (as defined by the NACHA rule) of the ACH debit for Ginnie Mae I?

Yes, they are the originator of the ACH, based on payment information provided to the Offeror.

34 C.3.11(c) What GFP systems is used to prepare tax reporting for all Ginnie Mae II pools?

Pool Reporting System and Tax Reporting Software

35 C.3.11(c) How many Ginnie Mae II pools are currently outstanding?

Approximately 115,000.

36 C.3.11.01

Please clarify the following discrepancy related to Section B.5: in Section 3.11.01, the CLINs for option years are listed as "108, 208, 209, and 209". Should this list read "108, 208, 109, and 209"?

Yes, it should read 108, 208,109, and 209.

37 C.3.11.01

If there are emergency payments for Ginnie Mae II MBS, is the Contractor required to advance its own funds to make those payments? If so, is there a dollar limit on the amount? When and how will the Contractor be reimbursed?

The Contractor is the paying agent for all Ginnie Mae II MBS. Therefore, emergency payments do not apply. If a shortfall occurs, Ginnie Mae will reimburse the contractor on the payment date.

38 C.3.11.03 Are the P&I debits aggregated for each Issuer or separate debits for each pool?

The debits are aggregated by Issuer. Details on the payment are included in the precollection notice.

39 C.3.11.05 What is the historical volume of ACH rejects? An average of five (5) annually.

40 C.3.11.07

How does the task of providing ACH information to the FRBNY relate to Item 0008 (RPB Factor Processing)?

The relationship is direct. The RPB information is used to calculate the amount of payment due security holders that is collected from the Issuer via ACH.

41 C.3.11.07 What is the system/application used to print P&I investor checks?

IPMS

42 C.3.11.07 Volume of P&I Checks issued to the investors?

There are approximately 2500 MBS II checks.

43 C.3.11.07

Are checks printed on check stock (i.e. pre-printed with ABA/DDA/Check#) or is ABA/DDA/check number assigned and printed on safety paper at time of printing?

Checks are laser printed on safety paper.

44 C.3.11.07

Regarding Ginnie Mae II Wires to the Fed, are they sent individually at the Pool level? If not, please clarify.

Wires are not sent individually at the pool level, but are sent by several wires (limited field of ACH size). Pre-collection notices are sent to the Issuer and provide pool-level detail that is summed to arrive at the total amount to be debited.

45 C.3.11.07

What information is required to accompany the wire?

No additional information accompanies the wire from the Contractor to the Depository.

Details on payments are provided to the Fed via factor information.

46 C.3.11.07 What is the estimated volume of lost holders? There are approximately 80,000 security holders with unclaimed funds.

4 of 9 6/26/20083:21 PM

No. Section Question Response

47 C.3.11.07 Regarding Ginnie Mae I flow, what information is required to be provided to FRBNY and how?

ACH file?

Factors and payment information related to ACH are sent by bulk transmission.

48 C.3.11.08

Does IPMS calculate the guaranty fee due to Ginnie Mae based on the prior month's RPB reported by the Issuer for each pool? Does it aggregate it at the issuer level and by program type?

Yes, IPMS makes the calculation. They are aggregated at the Issuer level and pool level but not by program type.

49 C.3.11.08

Does IPMS calculate the guaranty fees that are due to Ginnie Mae based on the prior month's RPBs reported by the issuer? Are they aggregated for each pool by the program type and issuer?

Yes, IPMS makes the calculation. They are aggregated at the Issuer level and pool level but not by program type.

50 C.3.11.08 How do the Guaranty Fees work for the multiclass pools?

Fees are calculated by the Contractor at pool origination.

51 C.3.11.08 What system(s) is(are) the issuer records extracted from?

Pool Reporting System (PRS)

52 C.3.11.08 If there is an Issuer transfer of responsibilities, what is the cut off date each month?

See MBS Guide, Chapter 6

53 C.3.11.08

What detail if any is sent to Ginnie Mae for backup on the Guaranty Fee?

A reconciliation report is sent to Ginnie Mae's MBS Administration Agent and Ginnie Mae's Office of Finance containing information on amount of guarantee fees collected from each Issuer.

54 C.3.11.08

How good are the Issuers in having funds available in their central P&I a/c?

Issuer's are very good at having funds available. Good Funds availability is a requirement of the Ginnie Mae MBS Program.

On occasion; however, good funds are not available and contingency plans must be implemented. The Issuer will be required to wire the funds directly to the Fed or the Contractor, as appropriate.

55 C.3.11.08

Which areas own this process? The Contractor collects guaranty fees from the Issuer accounts and wires the funds to Ginnie Mae's Office of Finance. The Contractor has to have their own ACH process.

56 C.3.11.08

Are there other fees that the CPTA may need to oversee (e.g. Transfer of Issuer Responsibility)?

Fees include, among others, certificate transfer fee, transfer of mortgage servicing rights fee, Platinum fee, and the Guaranty Fee.

57 C.3.11.08b What system is the source of the prior month's RPB report?

Pool Reporting System (PRS)

5 of 9 6/26/20083:21 PM

No. Section Question Response

58 C.3.11.09

Section C.3.11.09, referring only to emergency payments on Ginnie Mae I MBS, says that "the Contractor shall make payments using Ginnie Mae funds. How and when does the Contractor obtain those "Ginnie Mae funds"?

Ginnie Mae wires the funds to the contractor one business day prior to distribution to registered holders.

59 C.3.11.09b Please confirm that payment under this section is to be made using Ginnie Mae funds.

Yes. The Contractor receives funds via wire transfer from Ginnie Mae's Office of Finance.

60 C.3.11.10

What is the volume of uncashed checks? There are approximately 185,000 records in the unclaimed funds database, which typically include multiple uncashed checks to the same investor.

61 C.3.11.10

Are the specific requirements (searches, number of mailings, timing of mailing, response timeframe) relating to locating holders of uncashed checks. What are considered "suitable efforts"?

The Contractor is responsible for all Unclaimed Funds activities for the MBS II Program. As such, the Contractor should make efforts, suitable to Ginnie Mae, that will resolve unclaimed funds issues in a timely manner.

For example, the Contractor shall follow-up on outstanding unclaimed funds when an Investor submits a physical security for final payment.

For the MBS I program, however, the Contractor only maintains the tracking database, and works with the MBS I Issuer community to resolve their unclaimed funds issues. Unclaimed funds are forwarded by Issuers to Ginnie Mae, pursuant to instructions outlined in the MBS Guide, which are in turn wired to Ginnie Mae for safekeeping until such time as the Issuer can locate the registered holder/beneficiary.

62 C.3.11.10

Please provide details to comply with Remittance Advice requirements (e.g., if payment made via check vs. wire, Ginnie Mae I vs. Ginnie Mae II). Does this need to be a separate document or can it be incorporated into check?

There is no wire, payment is by check for both certificated Ginnie Mae 1 and II. It does not need to be a separate document and can be incorporated into the check stub.

63 C.3.11.11

There is a reference to the factor/tax data website; please confirm that this website is the property of Ginnie Mae and not an incumbent proprietary system?

Yes, it is the property of Ginnie Mae.

64 C.3.11.12 Should the two references to "MBS Administration Contractor" read "MBS Administration Agent"?

Yes

65 C.3.11.12 To whom do we need to report SCRA payments?

Contractor is responsible for SCRA payment distribution to the appropriate Issuer.

6 of 9 6/26/20083:21 PM

No. Section Question Response

66 C.3.11.12

Who is Ginnie Mae's MBS Administration Contractor and how do they provide information on these payment amounts due?

Please confirm whether these payments are recorded on the "system" maintained by BONY and what, if any, tax reporting ramifications exist

Deloitte & Touche is currently Ginnie Mae's MBSAA Contractor. The CPTA Contractor, merely disburses the funds related to making SCRA payments to issuers. As such, the Contractor receives disbursement information from the MBSAA and forwards the proper payment to the appropriate Issuer. These funds transfers occur each quarter, typically on the 7th calendar day of the month. Ginnie Mae's Office of Finance wires funds to the CPTA Contractor for timely distribution.

67 C.3.11.14 Should the reference to "Data Collection and Analysis Contractor" read "MBS Administration Agent"?

Yes

68 C.3.12 How many LPAs exist? 31

69 C.3.12 How often and what is the volume of platinum issue requests that are withdrawn prior to the 9AM settlement requirement?

This is very rare. Less than one request each quarter.

70 C.3.12 Will the LPA accounts move to new contractor?

Yes

71 C.3.13 Are Platinum Pools issued under a Platinum Trust Agreement Grantor Trust?

Yes

72 C.3.13 What system performs analysis to calculate the deferred Platinum Guaranty Fees?

An Excel Spreadsheet is maintained by the Contractor.

73 C.3.14

Please clarify the following discrepancy related to Section B.5: in Section 3.14, the referenced CLINs include 112AB twice. Should one of these be 212AB?

The reference is incorrect and the second reference should be 0212AB.

74 C.3.14l Please clarify who is to pay the cost of Ginnie Mae's toll free 800 line.

The contractor pays for Ginnie Mae's toll free 800 line.

75 C.3.15.01c

The section references destruction of MBS certificates after 7 years. Section C.3..09.02 references destruction of certificates after 6 years. Is this consistent?

No. Current SEC guidelines suggest destruction after six years. Ginnie Mae will determine if cancelled certificates are destroyed after six years.

76 C.3.15.02a Please explain the use of the word "transit". "Transit" is a typographical error. The correct word should be "transmit".

77 C.3.16 Please provide a copy of the most recent SAS 70.

This is unavailable for public distribution.

7 of 9 6/26/20083:21 PM

No. Section Question Response

78 C.3.16

How far in advance of the period to be covered by SAS 70 testing would Ginnie Mae order a SAS 70 audit from the contractor and notify the contractor of whether the review would be a Type I or a Type II?

The contractor will be notified no-later-then the end of February of each year as to whether or not Ginnie Mae intends to exercise the SAS No. 70 Type I or Type II option. The exercise of a SAS No. 70 Type II option will require the review of six months of operations.

79 C.3.16

The RFP indicates that each SAS 70 audit including follow up work shall be completed by August 30th of the year ordered. What is the period ending of each of the SAS 70 audits to be performed?

A SAS No. 70 Type II will require the review of six months of operations (January through end of June).

80 H.4

HUD intends to amend the solicitation with a detailed list of additional hardware and software being provided to support this contract as GFP – as the result of the BPI initiative. When will the detailed list of hardware and software provided?

The proposed list of GFP was posted as Amendment 3, dated 30, May, 2008.

81 H.4

Please provide a listing of the number of staff describing roles and responsibilities that are directly or indirectly used to support each of the GIFITSA.

The incumbent's current staffing requirements are proprietary.

82 H.4

What is the general nature of the information contained in the 7,849 plus cartons located at off-site storage facilities?

The secure off-site facility primarily holds archived records of the following: cancelled certificates, manual pool processing documents, and critical pooling / payment reports etc.

83 H.4

Will the contractor be responsible for verifying and validating the contents of the 7,849 plus cartons located at the off-site storage facilities? If so, will a manifest of carton contents be provided?

Yes, the new Contractor will be responsible for verifying that they have received the contents from the Incumbent. The Contractor can use statistical methods in accordance with AICPA Standard No. 39 to verify the contents of the archived material. An inventory of all documents archived at the secure offsite facility is currently maintained by the Incumbent for Ginnie Mae. Upon contract award, the Contractor will receive the current inventory list.

84 L.12.3

What are the FTEs associated with each of the listed processes?

Ginnie Mae doesn't mandate FTEs per process or function. Such business decisions are determined by the Contractor.

85 L.12.3

What are the functions/titles for each management position (prime and subs) and reporting/communication chain for the listed key processes?

Ginnie Mae doesn't mandate functions/titles for key processes.

86 L.12.3 Should the reference at the end of the first sentence of this section be to "12.3(2)"?

Yes

8 of 9 6/26/20083:21 PM

No. Section Question Response

87 L.13.2

The section says "Contractor", not "Offeror".

Is that correct?

The words are used interchangeably. The Contractor will be responsible for providing the function described.

How much has Ginnie Mae paid to the incumbent Contractor for FP and FFP items each month, during each year of the current contract?

The information requested in this question is either proprietary or for Official Government Use only.

How much has Ginnie Mae paid to the incumbent Contractor for labor under T&M items each month, during each year of the current contract?

The information requested in this question is either proprietary or for Official Government Use only.

How much has Ginnie Mae paid to the incumbent Contractor each month for ODC under T&M items, during each year of the current contract?

The information requested in this question is either proprietary or for Official Government Use only.

For how many labor hours has Ginnie Mae been billed by incumbent Contractor under T&M items each month, during each year of the current contract?

The information requested in this question is either proprietary or for Official Government Use only.

9 of 9 6/26/20083:21 PM

68 #REF! 5/30/2008 5/30/2008 C.3.11.15 How are the Monthly Trigger Holders Recon and Factor Edits Error Log provided to the

PPA/CPT

A? Can you provide a copy?

Please provide a sample of the informatio n contained in this log.

Both reports relate to the factor edits and are provided to the Contractor by the Depository . See Attachmen t 2 for sample file.

Attachment 2 - R-OPC-23287 PreProposal Conference Transcript.txt

1 UNITED STATES

2 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

4 PPA/CPTA

5 PREPROPOSAL CONFERENCE

8 The above-entitled matter came before the

9 U.S. Department of Housing and Urban Development, on

10 Wednesday, May 14, 2008, commencing at 10:00 a.m., 11 at 451 7th Street, S.W., Suite A, Washington, D.C.

12 20410.

21 REPORTED BY: KENNETH NORRIS

1 APPEARANCES:

3 GINNIE MAE ATTENDEES:

4 MICHAEL FRENZ, Executive Vice President

5 THOMAS WEAKLAND, Sr. Vice President, Office

6 Of Program Operations

7 DANA LONG, Contracting Officer, Office of

8 Procurements and Contracts

9 DEBORAH HOLMES, Chief Information Officer

10 CAROL VILSAK, Program Operations

11 COREY COWARD, Capital Markets

12 DEBORAH HOLMES, Vice President/CIO

13 Information Management Division

1 P R O C E E D I N G S

2 MS. OWENS: Again, I'm Cheryl Owens and

3 welcome to our preproposal conference. I have already

4 gone through the administrative guidelines which I

5 will repeat for the official record. I welcome you to

6 the preproposal conference of the PPA/CPTA contract.

7 Cheryl Owens, City management operations.

8 Administratively, I remind those who may not

9 have heard it, you are restricted to just for the

10 first floor of this building with your badges. There

11 is the Star Bucks next door, the cafeteria at the end

12 of the building and the L'Enfant Plaza eatery if you

13 want to go there for lunch, but if you return back to

14 the building, you have to go to the front of the

15 building and come back in.

16 There is no eating or drinking in this room

17 but we will be taking appropriate breaks and you can

18 have refreshments outside in a little bit.

19 I, again, apologize for being late but with

20 that we're going to get started. I would like to

21 introduce you to Michael Frenz, the Executive Vice

1 President of Ginnie Mae. Thank you.

2 MR. FRENZ: Thank you, Cheryl.

3 Good morning, everyone, welcome to the

4 preproposal conference contract. I'm pleased you've

5 come here this morning to hear about our request for

6 the proposals to the contract. Because Ginnie Mae has

7 only 56 employees who deal with contracts, including

8 our add officer providing oversight and guidance, in

9 this contract, which provides transactional and back

10 conference support for our mortgage back secure

11 authorization programs is one of the most important

12 contracts at Ginnie Mae. For that reason, we devoted

13 considerable resources and staff time to insuring you

14 get the information you need to put together

15 outstanding proposals.

16 I'm now going to turn it over to Tom

17 Weakland, head of the Ginnie Mae office of officiating

18 the contract. Tom will be guiding you throughout

19 today's session with the able assistance of Dana Long

20 and other colleague from Ginnie Mae. Enjoy the day

21 and good luck to all of you.

1 MR. WEAKLAND: Thank you, Michael.

2 Before we get started, I would like

3 personally want to thank each of you for your interest

4 in this procurement effort.

5 We have a lot of material to cover today

6 so -- but before we get into the presentation, I want

7 to, you know, at least point out the different people

8 that will be providing presentations today.

9 Dana Long, who has already been introduced, 10 who is our HUD procurement Officer.

11 Carol Vilsak -- Carol? She is from the

12 office of program operations.

13 We also have Corey Coward who is a

14 multi-class area.

15 And we have Deborah Holmes, our vice

16 president, CIO of Ginnie Mae.

17 And as you know, we have set aside a day and

18 a half for the presentation. Now, tomorrow's session

19 it was originally planned for here. It will be held

20 over at Hawthorn Plaza. It will start at 9 o'clock

21 tomorrow. Hawthorne Plaza, if you don't know where it

1 is, is right behind the HUD building and it is in the

2 L'Enfant Plaza new unique ballroom, 304.

3 Now, I want to talk a little bit about what

4 we're going to cover here today then I'm going to let

5 them go at it.

6 What we're going to start off with today is

7 Dana Long, contracting Officer. She's going to cover

8 all the grounds. Once she gets through with that, 9 then Carol Vilsak will come up and talk about the

10 various key functions. 13 of the key functions of the

11 statement of work. As you know, the statement of work

12 is about 74 pages. That I section c and there is a

13 lot of material in there but we're only going to be

14 covering the key areas, key functions the contractor

15 will be required to perform. The workers will be

16 required to perform.

17 Then following Carol will be Corey Coward.

18 Corey will be talking about the Platinum trustee

19 responsibilities as well as funding information.

20 Following that, Deborah Holmes will cover

21 information technology part which is when you look at

1 the State arm is an important part of the work that

2 will be performed for us, business operations and

3 phone system of the work for us.

4 Then we're then going to go take you back to

5 Dana and then Dana is going to cover sections of --

6 what was is it, Dana?

7 MS. LONG: D through F.

8 MR. WEAKLAND: D through F of the

9 solicitation. And then in the afternoon we'll have

10 a -- we're going to have Jumedia Buchner from New York

11 to go through an overview of our business processes.

12 And there are handouts over here on the

13 table of that presentation. If you don't have one, 14 you would want to get one before Jumedia does her

15 presentation.

16 That pretty much concludes my remarks. So

17 I'm now going to turn it over to Dana.

18 MS. LONG: Thank you, Tom.

19 Good morning, everyone. I'd like to also

20 welcome you to our preproposal conference. I know

21 that you have taken a lot of time and expended a lot

1 of money for this conference. So I would like to, 2 again, give you my appreciation. And I hope that you

3 take the information and that it will be worth while

4 for you.

5 As Tom has said, we do have handouts on the

6 table that goes over the system overview. We will

7 also be providing you with information from our

8 reading room. We do have a reading room, and we will

9 be providing a CD-ROM on that also. So I wanted to

10 let you know about that.

11 As far as questions that you may have, we

12 have five-by-eight cards. And I'll go into how we're

13 going to address your questions. I want to let you

14 know that we do have those available for you to write

15 your question.

16 Before we get started again, I wanted to let

17 you know the ground rules of this conference. If you

18 hear anything that conflicts with the request for

19 proposal that we have posted on the Internet, the

20 information on the request for proposal takes

21 precedence over anything that you hear. Do not rely

1 on any information that would conflict to prepare your

2 parole.

3 Secondly, we will be providing a posting of

4 this conference. We actually have a person that

5 provides a transcript. We will be transcribing that.

6 And you feel free to take notes. But if you miss

7 something, we will make sure that information is

8 posted on the Internet for your information in case

9 you missed something.

10 We will not be taking substantive questions.

11 That's why the cards will be provided to you. If

12 there are questions that we can answer, we will answer

13 them. If not, we will say please put your question on

14 a cards, and we will provide the questions and the

15 answers on the Internet for everyone to see, just to

16 make sure there is no misunderstanding.

17 And when I talk about the web, I'm talking

18 about the federal web site and also the HUD web site

19 that we have that has the same information.

20 And again, it will follow the same rules

21 that we have for any questions that you might have

1 after the conference. You e-mail them to us, to the

2 contracting office. You can provide them in writing, 3 and we will also answer you back in writing.

4 And, additionally, a word of caution. The

5 Ginnie Mae staff and the HUD staff have been cautioned

6 not to answer any questions. So please do not ask

7 them any questions. Okay?

8 Does anyone have any need right now?

9 Okay. First I would like to take a look

10 at -- take a look at the R & D process and how we will

11 be doing this. The reading room is now open. There

12 are instructions in the request proposal that talks

13 about how you will be gaining access to the reading

14 room. It's by -- it's available during normal

15 business hours. We're not going to be doing it during

16 the weekends or Federal holidays. It is on a first

17 come, first serve basis. And we ask that you feel

18 free to take notes, but we ask that you do not bring

19 recording electronic devices. And we will also be

20 giving you sensitive information. So avoid --

21 MS. HOLMES: It's by appointment.

1 MS. LONG: Oh, thank you. It is by

2 appointment. So first come first serve. But if you

3 e-mail, be patient, follow the instructions that are

4 in the -- in the requested proposal.

5 Also there will be CD-ROM available for you.

6 And we have a limited number, so we ask that you not

7 have people come and ask for them that belong to the

8 same company. So please adhere to that.

9 The proposals are due the 17th of June at

10 noon, as of right now. We do have an in and out. We

11 have 133 pages of solicitation. It is very large.

12 Plus we have amendments to change certain dates. So I

13 caution you to make sure you pay attention to the

14 proposal receipt dates, because we will be going

15 through them very thoroughly and be making a single

16 award. And doing this we're going to be using the

17 best value methodology. So it would not be awarded --

18 so not necessarily awarded to the lowest price or the

19 highest technically acceptable.

20 Keep in mind that this procurement is full

21 and open. We are using far part 15. So familiarize

1 yourself with the Federal acquisition regulation as it

2 pertains to the full and open. This is for all that

3 are -- if you look at the first page of the -- not the

4 request for proposal but the cover page -- we actually

5 have a restriction for the type of folks that we're

6 looking for. And you'll see that on the first page.

7 So make sure that you read that over. Read the

8 solicitation in its entirety. There are no partial or

9 total set asides on the procurement, and the bids on

10 contract can be a large or a small bid.

11 We also provide for bidding in section B.

12 And that is to be filled out and completed in its

13 entirety. Anything that is omitted will be deemed

14 nonresponsive. It is not where you choose part of it.

15 It has to be in its entirety.

16 Okay. Also look at section M of the

17 solicitation. It talks about how we're going to be

18 evaluating the proposals.

19 Section L talks about what we -- about your

20 instructions. And section L talks about the

21 evaluations and how we're going to be evaluating your

1 proposals.

2 I cannot overemphasize the importance of

3 reading section M and the solicitation in its

4 entirety.

5 Once you've submitted an offer and it comes

6 in at the time that it's supposed to on the 17th of

7 June, as it is right now, you would not be allowed to

8 amend your proposal. So we're asking for your best

9 work.

10 Once you -- I want to go over the process of

11 how we're going to look over your proposals. Once the

12 17th of June or whatever the date has been established

13 for the proposals to be received, we're going to make

14 sure the proposal that you provide conforms with the

15 requirements that we have outlined in the

16 solicitation.

17 One of the things that you'll notice is that

18 we ask for the technical and your price proposal to be

19 segregated, to be separate. Once we make sure that

20 your proposal conforms to the requirements of the

21 solicitation, then we will take the technical portion

1 and give it to the technical evaluation panel for

2 their evaluation. Once they complete their

3 evaluation, they will be given the price proposal that

4 you have provided.

5 Once that has been done, we will make an

6 assessment whether further discussions will be

7 necessary. We may award on the authorization you

8 provide at that time. So what I will caution you is

9 to not think that you have another opportunity to

10 revise your proposal. So we may award on initial

11 proposals.

12 We will perform our analysis and find the

13 best value for the government. And if necessary make

14 the award. And we will notify those that have not

15 received an award or have not been considered who make

16 notification as appropriate in the solicitation.

17 What I -- again, please make sure that you

18 read the solicitation in its entirety. If you find a

19 problem or an argument or anything of that nature, 20 please make sure that you e-mail me or the contracting

21 officer that has been identified.

1 The first thing I would like to do is to

2 talk about section B of the solicitation which talks

3 about your suppliers -- excuse me -- your services and

4 your prices and your thoughts.

5 Now, this may be different from the previous

6 or the current contract that we're under because we're

7 under a that's the delivery and that's the quantity

8 type of contract. That is the way it's outlined for

9 the solicitation. And I urge you to be familiar with

10 far part 16 that talks about delivery in excess

11 quantities.

12 As you will see on the section B, you'll be

13 given the opportunity to put prices in for the

14 different line items. And that is to be completed in

15 its entirety. You have line items that are firm based

16 price and you have line items that are fixed price.

17 In looking at the estimated quantity, that's exactly

18 what it is. It is an estimated quantity. It is not a

19 guarantee. The only guarantee we have is the $1

20 million minimum guarantee. There is no maximum

21 guarantee. This is based on historical data that may

1 fluctuate. So I want to let you know that this

2 information provided as far as the quantity are not a

3 guarantee. The government will order, based on the

4 prices that are provided, to the awarded offer.

5 So make sure that you fill out section B.5

6 and they have the corresponding date. For example, 7 the 10N, if applicable, is September 1st, 2008, 8 through the 31st of January, 2009. And if you look at

9 the base period after the transition, it is for

10 three years.

11 The subsequent option year -- that's exactly

12 what it is -- an option year, are for one year. So

13 you have a total of five years and then with the

14 addition of the transition ends, five years and

15 six months.

16 After you go past the B.5, you also will be

17 provided information for the labor categories that

18 will be selected for subsequent pack orders. We have

19 also had the base period in three years. And a

20 subsequent option period that is one based. And what

21 we ask you to do is to complete, based on the

1 estimated hours, we ask you to complete the rates for

2 each one of those labor categories. And there is a

3 description of the labor categories after you complete

4 it. When you go further, it is on paragraph -- after

5 B.6, they actually have a description of each of the

6 labor categories after option period 2.

7 So, for example, on the senior professional

8 staff, it talks about the features of that particular

9 label category. If you call it something else, at

10 least you know what we're looking for when we're

11 talking about easy and professional staff.

12 And that concludes the information that I

13 have for you on section B, which is the pricing

14 information. And what I'm going to do is I'm going to

15 turn it over to Carol Vilsak from the program

16 operations to discuss B section C, which is the actual

17 statement of work.

18 MS. VILSAK: Good morning. James is doing

19 the slides. I have section C, which highlights some

20 key functions. I am Carol Vilsak. I worked for

21 program operations. And some of the functions that

1 were discussed -- and most them or actually all of

2 them are functions that program operations works very

3 closely with as does capital markets. Ordinarily Tom

4 would be following me to discuss some of our

5 multiclass highlights and Ms. Holmes from information

6 management division will discuss systems.

7 Okay.

8 Let's begin.

9 The first few slides are just simply

10 overviews. We tried to break this down into

11 functionality by pool processing agents. Each of

12 these bullets will be discussed individually. The

13 databases, commitment authority, the full prosecutor

14 security, insurance warnings, transfers of mortgage

15 services, and pool certification process.

16 Next we'll be discussing CPTA, central

17 paying and transfer agent functions. And it will be

18 these bullet points, which we will discuss

19 individually. Maintain central registry on

20 outstanding single class and multiclass securities.

21 Process requests for transfers of MBS certificates.

1 Collection and dissemination of MBS pool data. And

2 finally, at least under this heading today, is the

3 contractor is going to act as Ginnie Mae's collection

4 and paying agents. Okay.

5 We also have some additional functions we

6 would like to discuss here today. First is tax

7 reporting, then the annual SAS 70 audit, if needed, 8 and finally some special requirements that are needed

9 for the Servicemembers' Civil Relief Act.

10 And that would be my portion of it.

11 We will then pass it over to Corey Coward

12 from capital markets who will discuss certain

13 important multiclass functions which are part of this

14 and the REMIC information agent. And you're not

15 speaking on that? Really? Well, that's a first.

16 So let's get started. I'll try to speak a

17 little louder.

18 The first is the pool processing agents.

19 Number one is the maintenance of the Ginnie Mae

20 database of master agreements and form HUD 11702.

21 Essentially what happens here is the contractors are

1 processing, updating, and maintaining critical issuing

2 documents. And those are right at the forefront of

3 the process of the master agreements and the

4 resolution of the board of directors. And attending

5 that is a list of all the authorized signatures. So

6 those are maintained in a database at that contractor.

7 And of course they inform us regularly of updates to

8 them.

9 The second key process is commitment parties

10 and pool number requests. Now, in this function, the

11 contractor processes equipment authority requests and

12 if the issue involves a request of block pool numbers, 13 they are assigned, as well, to the issuer. The

14 contract or insured that the issuer sent is the

15 appropriate commitment authority fees. Then wire

16 transfer to Ginnie Mae's office of finance.

17 Once that is completed, integrated pool

18 management is updated. The Ginnie Mae account

19 executive approves the request for commitment

20 authority, updates IPMS. And from there the system is

21 set to allow each user to use the commitment authority

1 purchased to pool MBS.

2 Also, the final paragraph. I do think it is

3 important to note on the last one, James, just to make

4 sure. IPMS is our integrated pool management system, 5 and that's the system that tracks and monitors

6 commitment authority availability. So those are very

7 key components of the pool processing IMPS function

8 for commitment authority.

9 Now, for 3, for pool processing and security

10 issuance. GinnieNET. Most of our pools are processed

11 electronically through GinnieNET. It is a web-based

12 application and -- however, there are a small number

13 of pools that are made to be processed manually. And

14 the contractor is responsible for processing the

15 manual paper pools. Those are typically Multifamily

16 pools.

17 We also have, of course, a new product, the

18 RMS which is the reverse market securitization

19 acronym. Of course, typical production processes are

20 the same. However, you know, as we are aware the

21 forward market and the reverse market have significant

1 differences in certainly the payment functions, 2 special bidding, single class forward market and

3 unscheduled bidding for the reverse market.

4 Now, once a pool is transmitted from the

5 issuer, the contractor sets aside the issuer's pool

6 number which they did submit. They draw down the

7 available commitment value balance by an amount equal

8 to the value of the pool transmitted. And after

9 pooling, the contractor forms various edits on the

10 loan collateral submitted and works with the issuers

11 to resolve pooling issues.

12 There are hard edits and soft edits in that, 13 and the issuer will get those warnings and work with

14 the contractor to resolve them so the pool can be

15 transmitted successfully.

16 Next line.

17 Then contractor is responsible for insuring

18 that all pools, loan packages and pooled

19 participations meet Ginnie Mae's pooling requirements.

20 And really, that's just a sort of a recap of the fact

21 that all the pools transmitted must pass successfully

1 through the edit process.

2 At that point, the pool is initially

3 certified. What that means is the pool goes through

4 Ginnie Mae. After the edit, then it is transmitted to

5 the -- the issuer is assigned documents, custodian for

6 the pool. So it's initially certified, contractor

7 verifies that the issuer does have a sufficient

8 commitment authority balance available. The pool

9 number that was submitted with the pool at the

10 transmission through Ginnie Mae or manual is indeed

11 one of the pool numbers assigned by the contractor to

12 that issuer's ID. And then again all the pooling

13 requirements have been met.

14 The next -- this is a small but important

15 piece. The contractor is responsible for purchasing

16 blocks of CUSIPs, as I believe the person mentioned

17 before. And once the pool is successfully

18 transmitted, the contractor applies a CUSIP to each

19 pool and loan package for contracting purposes. And

20 then once all these pieces have been successfully met, 21 the contractor prepares the pools for security

1 issuance and for delivery to the depository. And of

2 course our depository at the moment is the Federal

3 Reserve Bank in New York.

4 Okay. To continue on the pool processing, 5 for the MBS program only, the contractor is required

6 to create and, upon request, distribute prospectuses

7 to interested parties. And that's the Ginnie Mae II

8 program. There is also a Ginnie Mae help desk that is

9 staffed by the contractor at the contractor's primary

10 location, and that contractor help desk, the Ginnie

11 Mae help desk is a 1-800 number that serves to assist

12 with issuer-related questions. They can assist with

13 pooling…