REO PWS Draft.pdf

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PERFORMANCE WORK STATEMENT (PWS)

U.S. DEPARTMENT OF VETERANS AFFAIRS (VA)

REAL ESTATE OWNED CONTRACT

1. INTRODUCTION

The Department of Veterans Affairs (VA) Loan Guaranty Service (LGY) administers a home loan program that promotes home ownership among our nation’s Veterans and active-duty personnel. The program provides Federal home loan guarantees on residential property purchased by Veterans and service members. As a byproduct of the guarantee program, VA may become the holder of Real Estate Owned (REO) properties VA procures a Service Provider to manage these assets. Effective June 1, 2017, a re-competed contract was awarded; however, this contract will expire in September 2026.

This Request for Information (RFI) is being issued in anticipation of a solicitation in early

FY2026.

1.1. VA Real Estate Owned (REO) Program

When a VA-guaranteed or VA-financed home loan is terminated, VA usually acquires the property because of foreclosure. Within LGY, the Property Management (PM) operation is responsible for acquisition and disposal of these properties, with the primary goal to achieve the highest possible net return of investment in the shortest amount of time possible. The ability to sell these properties with limited expenses and maximum return on investment requires disciplined and effective steps to assume custody, manage, acquire title, market, and sell the property quickly.

VA staged an Office of Management and Budget (OMB) Circular A-76 competition that resulted in the outsourcing of PM activities through a contract awarded in 2003.

1.2. Contract Administration Oversight

VA Central Office (VACO) Property Management Oversight administers the contract and assists in oversight of the REO. VACO PMO administers contractual, and policy matters and manages oversight activities and daily operations.

PMO has decision-making authority for approving property management expenses, demolitions, and auctioning of properties.

1.3. REO Data

This award entails services provided within the United States (U.S.). The U.S. is defined as the 50 States, Territories and possessions, the District of Columbia (D.C.), the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.

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The Service Provider must be able to provide all services at the same level of service within all geographic locations. VA does not guarantee the volume specified in the following tables.

Table 1 provides the number of VA acquired properties sold in FY24 and their total average sales price, by state, as of 6/30/2025.

Table 2 provides the number of VA acquired properties being managed, by state, as of 6/30/2025.

Table 1: Top Ten VA Acquired Properties Sold with Average Sale Price by State

State - top

FY '25 sales count

Avg sales price

TX 207 $223,865

FL 107 $255,680

LA 74 $131,363

PA 72 $134,176

IL 72 $126,283

GA 70 $244,811

MD 62 $282,018

AL 61 $163,812

MI 61 $158,621

NY 56 $144,462

Grand Total 842 $195,430

*Approximately 21.12% of REO properties assigned are occupied as of the end of June

2025.

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Table 2: Top Ten number of VA Acquired Properties Being Managed by State

State - top

Count - month end

6/30/25 %

TX 586 31.47%

GA 214 11.49%

FL 191 10.26%

AL 190 10.20%

MI 164 8.81%

TN 122 6.55%

AZ 114 6.12%

MO 103 5.53%

VA 91 4.89%

LA 87 4.67%

Grand Total 1862 100.00%

1.4. Program Objectives

VA requires that the Service Provider make prudent and appropriate business decisions that serve the interests of the VA and adhere to the constraints of this procurement and all appropriate laws and regulations. The primary objectives are:

1. Sell VA-acquired properties for the highest possible net return on VA’s investment in the shortest amount of time.

2. Assure efficient processing of loan sales. Currently the VA is not conducting loan sales. If sales become necessary, the VA will issue guidance as required.

3. Improve reporting, information management and security; and

4. Ensure accountability and fiscal responsibility for all activities and protect the interests of the Secretary of Veterans Affairs.

1.5. Purpose and Vision

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The purpose of this acquisition is to engage a Service Provider that must perform the following services in a defined, accurate, timely, measurable, and fiscally responsible manner that protects the interests of the Secretary:

1. REO management and asset disposition.

This performance-based award will incentivize the Service Provider to continually improve performance and allow VA to better measure the Service Provider’s ability to support its objectives. T

1.6. Matters requiring VA prior approval or matters requiring notice to VA for possible referral to DOJ

1. For this contract, the following activities require the Government’s prior approval:

a. Demolition of property.

b. Sale of property where offer was not obtained through normal marketing process, i.e., sale to a tenant

c. Property auctions.

d. Repairs and capital improvements more than VA guidelines.

e. Opinion of title, if applicable.

f. Donation of property.

g. Release of rights (such as mineral release, partial release of security, easement, etc.).

h. Filing legal actions in the name of the Secretary.

i. Proposed settlements or write-offs more than VA guidelines.

j. Preservation expenses that exceed VA guidelines.

k. Legal fees that exceed VA guidelines or more than those that are reasonable and customary in the jurisdiction for same or similar services.

2. Matters Requiring Notice to VA for Possible Referral to DOJ.

The Service Provider must immediately notify the VA National Practice Group (NPG) of any claim filed against the Secretary. The NPG will direct the Service Provider, how to proceed. The NPG, subject to the direction and supervision of the Department of Justice

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(DOJ), has final decision-making authority on whether the DOJ will represent the Secretary.

a. Substantial Legal issues (such as the construction or constitutionality of federal statues, or issues of enforcement or issues that have significance for the government as a whole).

b. Counterclaims involving claims arising under other federal programs.

c. Attempts to file counterclaims as class actions.

d. Any order or judgment adverse to the government is entered in the case.

e. It is necessary to file or respond to a suit where another federal agency would be or is a proper party or has an interest in the property or action; and

f. Any other party files a notice of appeal

2. Applicable Documents

This solicitation incorporates the following documents by reference, with the same force and effect as if they were given in full text. The Service Provider must comply with these documents in performance of this Performance Work Statement (PWS):

a. Privacy Act, 5 United States Code (U.S.C.) §552a.

b. VA Directive 6500, Information Security Program (VA Handbook 6500.6, Contract Security, which is available at: http://www1.va.gov/vapubs ;

c. Veterans Health Administration (VHA) Directive 0710 (Implementation Handbook 0710.01, which are available at: http://www1.va.gov/vapubs and http://www1.va.gov/vhapublications/index.cfm ;

d. Veterans Affairs Acquisition Regulation (VAAR)-852.273-75: Security Requirements for Unclassified Information Technology (IT) Resources (Interim-October 2008); and

Federal Information Security Management Act (FISMA), Appendix III of OMB Circular A- 130.

e. Rights in Data - General, Federal Acquisition Regulation (FAR) 52.227-14(d)(1).

f. VA Directive 6300, Records and Information Management (VA Handbook 6300.1 Records Management Procedure, and all applicable VA Records Control Schedules).

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g. VA Information and Information System Security/Privacy Requirements for IT Contracts, which is available at: http://www.iprm.oit.va.gov:

h. VA Directive 0730, Section 6 (Physical Security).

i. VA Memorandum: IT Oversight & Compliance Information Physical Security Assessments, October 24, 2007.

j. VA Directive 0710, September 10, 2004, which is available at:

http://www1.va.gov/vapubs/viewPublication.asp?Pub_ID=487&FType=2 and

k. Rights in Data and Copyrights, FAR 27.401 Definitions.

l. OMB Circular A-123, Managements Responsibility for Internal Control, appendix D, Compliance with the Federal Financial Management Improvement Act of 1996.

https://www.whitehouse.gov/omb/circulars a123 rev/

m. Provisions required in Service Provider’s contract with fee attorneys, Attachment G.

3. SCOPE OF WORK

The Service Provider must provide all resources necessary to accomplish the requirements described in this PWS. Specifically, the Contactor must provide and manage Real Estate Owned services for the VA. The services must include property management, and loan sale activities as deemed necessary. The Service Provider must continuously update and enhance information made available to the VA, technology and the performance of their overall service delivery, in a manner consistent with industry standards as defined by VA.

4. PERFORMANCE DETAILS

4.1. Performance Period

This contract’s initial period of performance shall be September 30, 2026, through September 30, 2027. This contract shall have four (4) one-year option periods.

4.2. Place of Performance

The work shall normally take place at the Service Provider’s site; however, there may be an occasional meeting at a Government facility. No work at any Government site will take place on Federal holidays or weekends, unless directed by the Contracting Officer

(CO).

4.3. Travel

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VA estimates 4 face to face meetings per year to include several audits. VA expects that half of the meetings will be hosted by the Service Provider, with half hosted by the VA in either Nashville, TN, or Washington, D.C. During transition into this contract after award, it is possible that additional meetings will be required. Service Provider must bear the expense of all their travel. VA will allow Teams meetings in place of face to face at VA discretion.

5. Tasks and Deliverables

The Service Provider, at a minimum, must provide all tasks and deliverables described within this document. The Service Provider must be capable of managing an REO inventory of properties across the U.S. defined as the 50 States, Territories and possessions, D.C., the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands. All deliverables must be submitted to the CO and Contracting Officer’s Technical Representative (COR), or authorized designee, in accordance with the Schedule of Deliverables and must meet the standards set forth in the Quality Control Plan (QCP) (See 5.2). Unless otherwise stipulated, written deliverables must be phrased in plain English. Statistical and other technical terminology must not be used without providing a glossary of terms. The Service Provider must attend a kickoff meeting at the VA facility, tentatively in the Nashville metro area within seven calendar days after contract award. The Service Provider must comply with all applicable VA policies, as well as all local, state, and Federal regulations and laws (e.g., Treasury requirements, Service Members Civil Relief Act (SCRA), throughout the duration of the contract.

The Service Provider at a minimum must provide VA with “preferred customer” and priority status on process improvements, information technology, and reporting requests issued against this solicitation. The Service Provider and the Service Providers fee attorneys at a minimum must provide full-time resources tasked with this program working within the following functions/departments:

a. Account/Relationship Management Staff.

b. all REO pre-marketing, marketing, sales, title, and closing activities; and

c. Supervisory staff for all eviction, and litigation activities.

Administrative functions such as finance, accounting, and reporting are not required to be dedicated.

5.1. Program and Project Management

The Government seeks a Service Provider to provide comprehensive program management that is consistent with best practices.

5.1.1. Program Management

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The Service Provider’s Project Management Plan (PMP) must reflect and include a sub-task structure. This management approach must be detailed in the PMP. The Service Provider’s PMP at a minimum must include:

1. Schedule Management – The development, management, and control of program schedules.

2. Risk Management – The planning, identification, analysis, monitoring, and control of and responses to program risk.

3. Communication Management – The timely and appropriate generation, collection, distribution, storage, retrieval, and disposition of program information.

4. Performance Management – The support of business outcomes, operational metrics, and quality management.

5. Details on its Management (e.g., staffing levels, resources,) and Subcontractor Management Plan (e.g., use of property management vendors, document procurement vendors, fee attorneys, title companies).

6. Business Continuity Plan showing how it shall meet the contract objectives despite interruptions in operations due to natural disaster or other business interruptions; and

7. Change Management Action Plan that identifies current business processes and proposed future processes (As-is/To-be) with strategies to minimize the impact of these changes on the organization, customers, and constituents.

The Service Provider must prepare a quarterly program management status report until such time that the COR, or Authorized Designee, elects to modify this schedule in writing. These reports at a minimum describe the tasks, progress, and accomplishments for the period since the last meeting (activities and deliverables). It is expected that the

Service Provider must maintain adequate communication with the VA and VA’s COR, or

Authorized Designee, accordingly so that issues that arise are transparent to both parties to prevent escalation of outstanding issues.

Deliverables

a. Business Continuity Plan

b. PMP

c. Quarterly Program Management Status Reports

5.1.2. Project Management

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For significant tasks, deliverables, and milestones as defined by the CO/COR/Authorized Designee, the Contractor at a minimum shall:

1. Identify in writing all necessary sub-tasks (if any) by task, together with associate sub-milestone dates.

2. Identify in writing a thorough test plan for any project involving system changes and provide VA a copy of the plan for approval prior to implementation.

3. Have available the meeting minutes of all Government/Contractor meetings via transcripts upon VA request.

4. Generate, collect, distribute, store, retrieve, and dispose of program information. VA will retain all rights to information developed through the program included in the deliverables and otherwise; and

5. Prepare monthly status and progress reports until such time that the CO/COR/Authorized Designee elects to modify this schedule in writing. These reports shall describe the tasks, progress, and accomplishments for the period since the last meeting (activities and deliverables). It is expected that the Service Provider shall keep in communication with the CO/COR/Authorized Designee accordingly so that issues that arise are transparent to both parties to prevent escalation of outstanding issues.

Deliverables

a. Project(s) Level PMP

b. Monthly Project(s) Level Status Report

c. Meeting Minutes

5.2. Quality Control Plan (QCP)

The Service Provider must provide a QCP, which outlines how the Service Provider monitors its performance. This plan at a minimum must:

1. Address tasks within this PWS to include measurable outcomes and definitions of success.

2. Contain controls, procedures, policies, quality control schedules, exception and escalation procedures, officer certifications, authorized signers, as well as plans to mitigate known risks.

3. Address critical aspects of the Service Provider’s offering to VA, including known industry issues (e.g., property flipping, post audit by third party, property valuation and pricing, SCRA, loan modification programs).

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4. Include a training plan for all employees including newly assigned staff as well as subcontractors.

5. Contain a performance plan outlining how the Service Provider encourages high quality performance of both employees and subcontractors.

6. Provide details on the separation of duties between operations and audit/oversight staff.

7. Provide quarterly Internal Control Reports based on VA properties.

8. Ensure audits do not have substantive findings (material weaknesses or significant deficiencies). The Service Provider must provide VA with a written response to all non-substantive findings within one (1) month and resolution within two (2) months from the date of notification.

9. The Service Provider must provide VA with a written response to all substantive findings within two (2) weeks and resolution within four (4) weeks from the date of notification; and

10. Proactively recommend and implement process and technology improvements that positively impact operations

Deliverables

a. QCP

5.3. General Requirements

The Service Provider, as an agent of the Secretary, at a minimum must:

1. Demonstrate the ability to advance no less than $10 million of corporate funds to perform the tasks under this contract prior to appropriate reimbursement from VA.

2. Comply with the requirements of the contract including direction provided by CO, COR, or Authorized Designee concerning all actions involving properties under this contract. Failure to do so may result in financial penalties. These financial penalties may be incurred by failing to protect the Secretary's interest; and

a. Substantive losses (substantive is defined as greater than 5% of the contract sales price or redemption proceeds) to VA on Property Sales or Redemptions that are demonstrably the result of Errors or Omissions including, but not limited to, the following:

i. Closings where substantive insufficient funds are collected from the purchaser.

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ii. Closings where substantive excess costs are charged to VA.

iii. Redemption where substantive inadequate funds were collected.

Errors and Omissions will result in a penalty in the amount of 10% of the initial list price of the property, or in the case of Redemptions 10% of the PM net value. This penalty is in addition to a charge to the Service Provider for the quantifiable loss. Errors and Omissions are not a component of the incentive/disincentive performance measures and are not limited to the dollar threshold therein.

One example would be failure to collect a $5,001 down payment on a VA loan financed at $100,000. In addition to the $5,001 the Service Provider owes to the VA; the penalty would be 10% of the initial list price of the property.

a. Reimburse VA for losses due to unjustified delays in initiating, prosecuting, or delivery of contract requirements including but not limited to:

i. Evictions.

ii. Litigation.

iii. Conveyance.

iv. Title; and

v. Reports.

Losses incurred due to errors and omissions will result in a Bill of Collection or in an offset to invoices for those quantifiable losses plus 10% of the loss.

3. Be responsible for cost due to Service Provider negligence, as defined by VA, including but not limited to, damages due to failure to secure or maintain property, tax penalties, etc.

4. Appear (at Service Provider’s expense) on behalf of VA as a witness regarding these requirements.

5. Keep records satisfactory to VA pertaining to each property. Records and related documentation, including all records involving work performed on VA properties are VA’s property.

6. Provide digital documentation retention for all property sales via a SharePoint type site acceptable to the VA.

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7. Accept VA’s delegation of authority to execute all documents necessary for the management and sales of residential real property acquired by the Secretary of VA according to 38 CFR Parts 36.4345(e) and (f).

8. Provide VA with a quarterly list of employees authorized to sign documents under this contract and sample of their signature.

9. Provide VA with an updated list of phone numbers, addresses, email addresses for all departments and key personnel that regularly interact with VA and customers, including borrowers, offerors, etc. This list must include contacts for sending various types of mail, inquiries, tax bills, closing documents, insurance bills, etc.

10. Maintain and provide, upon request, evidence of acceptable coverage to protect VA’s investments and assets such as, but not limited to, Fidelity Bond Insurance, Errors and Omissions Insurance, etc.

11. Furnish a performance bond (Standard Form 1418) for the protection of the Government in an amount equal to 60% of the original contract price, and a payment bond (Standard Form 1416) in an amount equal to 60% of the original contract price.

The “Original Contract Price” means the award price of the contract, and does not include the price of any options, except those options exercised at the time of contract award.

12. Ensure that the maximum practical opportunities exist in the Service Provider’s Subcontracting Plan for small businesses, especially those owned by Veterans. VA’s current subcontracting goals are as follows:

a. Small Business 17.7%

b. Veteran Owned Small Business 5.0%

c. Service-Disabled Veteran Owned Small Business 3.0%

d. Small Disadvantaged Business (includes Section 8(a)) 5.0%

e. Woman-Owned Small Business 5.0%

f. Historically Underutilized Business (HUB) Zone Small Business 3.0%

13. Ensure that all data and files used in relation to VA properties are auditable by the Government or its designee.

14. Input information upon initiation of any activity for any property into the Service Provider’s Information Management System.

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15. Provide property data files. The current industry standards have been historically inconsistent. The Government seeks new and innovative procedures to ensure the quality and reliability of the physical property data file. The Service Provider must ensure liquidity and marketability of loan sales by:

a. Auditing electronic and paper files for completeness and accuracy

b. Identifying trends concerning documentation or electronic record deficiencies.

16. Ensure financial transactions and accounting events are adequately recorded in accordance with Treasury requirements.

17. Ensure internal financial management processes are subject to Government audit and must comply with all appropriate financial laws, regulations, and requirements (e.g.31 U.S.C. § 3302(b) (cash deposits) and 1 Treasury Financial Manual (TFM) 6- 8030);

18. Ensure all funds are segregated and separate records are maintained related to VA’s properties. Separate accounts and reconciliations must be established and performed for all activities.

19. Ensure all documents are tracked using dated version control.

20. Ensure delivery of policies and standard operating procedures (SOPs) that are clearly documented and followed; and

21. Ensure delivery of end-to-end maps with graduated levels of detail, including a High- Level Functional Map, a Process/Activity Map, and a Detailed Process Map are provided. Steps in lower-level maps must be easily reconciled against higher-level maps and vice versa, and must display the interconnectivity between functions, processes, SOPs, policies, and activities.

22. Generally, VA’s strong preference is to avoid the execution of foreclosures or evictions between Thanksgiving and New Year’s Day. The Service Provider shall conduct the necessary analysis, planning and communication to ensure that any potential exceptions (i.e. extended eviction proceedings, etc.), are identified and escalated to VA.

23. VA and DOJ have established standard contract language (see attachment G) to be incorporated into the agreement by the Service Provider with any fee attorney working on behalf of the Secretary. The agreement entered into between the fee attorney and Service Provider must include provisions stated in Attachment G

Deliverables

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a. Verifiable evidence of ability to advance $10 million

b. Quarterly report listing authorized signers and their titles

c. Contact Information

d. Written evidence of Fidelity Bond Insurance, Errors and Omissions Insurance, and Performance Bonds

e. Physical property files

f. SOPs

g. End-to-end maps

5.4. REO Property Management and Marketing

5.4.1. Obtaining and Securing Property

The Service Provider must perform initial custody actions. The Service Provider must initiate and maintain property records by reconciling and updating property information in a coherent searchable format. As a part of the initial custody actions, the Service Provider at a minimum must:

1. Notify all property stakeholders to ensure:

a. All bills are sent in care of the Service Provider.

b. All Government obligations are timely verified and paid; and

c. No liens, penalties, or fines are placed on the property.

2. Inspect, secure, and maintain access to the property to ensure:

a. Valid, reconcilable data on condition and occupancy of the property are obtained.

b. Public access is restricted by at least re-keying one (1) door and ensuring all entries, exterior doors, and windows are secured.

c. The property, including all outbuildings, are secured in a manner that prevents damage within 72 hours of assignment from VA or vacancy.

d. VA has unrestricted access to the property, including any outbuildings.

e. All hazards that could reasonably cause personal injury are corrected; and

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f. That the property is safe, sound, and sanitary.

3. Obtain flood hazard determination for each property for sales disclosure; and

5.4.2. Acquiring Title

The Service Provider must acquire title. In acquiring the property title, the Service Provider at a minimum must:

1. Collect title documents and obtain NPG’s opinion by:

a. Submitting a complete title package to NPG, if required, in accordance with the schedule that will be provided upon award; and

b. Proactively obtaining NPG’s opinion, if required, to gain marketable title.

2. Re-convey property to original servicer, when required, and:

3. Must incorporate into their process a direct link to VA OGC title review to enhance communication, the title review / approval process and truncate the required timeframe for OGC to either approve or disapprove the title package.

a. Completing re-conveyance within 30 calendar days of receiving the receipt of a negative opinion of title from NPG or upon determination that re-conveyance is necessary.

b. Submitting an REO management invoice for reimbursable expenses; and

c. Documenting property conditions prior to re-conveyance.

5.4.3. Processing Redemptions

The Service Provider must process redemptions on behalf of the VA. The Service Provider at a minimum must:

1. Ensure redemptions are processed error-free and as quickly as local law allows.

2. Ensure that all allowable expenses are collected; and

3. Ensure that no unnecessary expenses are incurred.

5.4.4. Obtaining Possession

The Service Provider must obtain possession on behalf of the VA and at minimum must:

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1. Manage successful eviction of real property and disposition of personal property with lock-out in a timely manner according to state and local laws; and

2. Take all actions in the best interest of the Secretary, using discretion in sensitive cases (e.g., disabled Veterans).

5.4.5. Managing Property

The Service Provider, at a minimum must ensure all properties present an appearance and condition consistent with or better than other properties in the neighborhood by:

1. Maintaining the properties in clean, safe, and sanitary conditions to prevent deterioration and notices of violation.

2. Conducting maintenance and repairs to ensure:

a. All appropriate and required repairs are completed and disclosed in the listing.

b. All repairs are fully warranted for workmanship and comply with state and local ordinances, business practices, and industry standards.

c. All products used in repairs carry full manufacturers’ warranties.

d. No mechanics or other liens are established for repairs on the properties; and

e. Best value for repairs by soliciting multiple, identical repair bids from licensed vendors.

3. Provide a full tax service and a complete tax search within 30 calendar days of assignment to ensure that property taxes are paid to date and that no penalties or interest accrued or duplicate payments are made.

4. Posting signs which give point of contact information.

5. Installation of necessary smoke detectors, and other safety detection devices as required by local, or state laws.

6. In the event of disaster, the VA may require the Service Provider to offer VA properties for rental. In this event, the Service Provider must manage those rentals. The Service Provider must maintain an updated list of habitable properties, as defined by VA that could potentially be used as rental

5.4.6. Marketing and Selling Property

The Service Provider at a minimum must:

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1. Develop a marketing plan. This plan at a minimum must:

a. The methodology must include how the Service Provider values properties, creates price reduction strategies, handles aged assets; and

b. Propose appropriate competitive marketing repairs in addition to those that bring a property to a safe, sound, and sanitary condition. These decisions must be incorporated in the property’s marketing strategy; and

c. Include information concerning unique considerations that impact standard processes, policies, pricing, etc. This includes, but is not limited to, offer acceptance policies, and tenant sales.

2. Conduct market analysis for each property and obtain an initial market value property appraisal upon assignment, conducted by a licensed or certified appraiser from the property’s local market which meets the requirements of federally related transactions.

Including the ability to utilize VA’s Appraisal Management Service (AMS), as related to reading and scoring appraisals. VA requires MISMO `XML v3.0 file format appraisals in concert with the recent Fannie Mae and Freddie Mac announcements to ensure consistency and facilitate efficient data transfer. See:

https://www.fanniemae.com/delivering/uniform-mortgage-data-program/uniform-appraisal-dataset

3. Develop a marketing strategy for each property to ensure that the return on sale of the Secretary’s assets is maximized, while minimizing time on market.

4. Receive, evaluate, and respond to offers and establish a process for offer selection that is easily understood by the public.

5. Provide all closing documentation within seven calendar days of closing in a format provided by VA.

6. The Service Provider must provide a quarterly report for VA of properties listed and sold.

7. Sell to VA-approved homeless providers at discounts.

8. Properties may be marketed and sold for cash prior to receipt of an acceptable title opinion with a quit claim deed or deed without warranty.

Deliverables

a. Marketing Plan

b. Quarterly Report for Federal Asset Sales

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c. Monthly Report on Homeless Provider Inquiries and Sales

5.5 Invoicing Process

The Government is seeking a streamlined, electronic process that allows ease of use and minimal administration for the CO/COR/Authorized Designee to receive and approve invoices. The Service Provider at a minimum must:

1. Advance payments for taxes (including penalty and interest) and other reimbursable expenses.

2. Submit all invoices within 60 calendar days of (but not before) final disposition for REO expenses and date of service completed for all other expenses in a VA-approved electronic format.

3. Ensure that all invoices are substantiated by complete imaged or electronic documentation in support of allowable expenses and fees, including that which is performed by Service Provider or Subcontractors for services that are not included in the flat-fee structure Section B of this solicitation. Documentation must be made available as invoices are received by the Service Provider from Subcontractors.

4. Not make cash payments to Subcontractors or permit them to make cash payments for work done under this contract; and

5.6 Information Management System

The Service Provider must promote, secure Information Exchange between itself, VA, and its Industry Stakeholders.

The Service Provider must provide VA with access to an information management system(s) for the services identified within this PWS. The Service Provider’s system(s) must generate all property data for use by VA including, but not limited to, receivables, accruals, collections, etc., in addition to interfacing with VA systems.

The Service Provider must convert all physical documents to an electronic Portable Data Format (PDF) and Joint Photographic Expert Group (JPEG) files and make the available to VA for viewing at resolution sufficient to view/print. This includes, but is not limited to, property files all data stored in the Service Provider’s systems (e.g., notes, and physical files held by the Service Provider related to VA’s properties, photographs, appraisals, invoices from Service Providers and fee attorneys, as they are received.

The Service Provider’s information management system(s) at a minimum must:

1. Provide authorized VA personnel and systems with real time, 24/7, secured internet, and direct connection access to all production data and records within a timeframe

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2. Enable no less than 100 VA concurrent user access to production systems for VA users. This includes various levels of access ranging from,

a. Read only.

b. Read with the capability of documenting notes (provide approvals, document customers discussions, etc.).

c. Full access, and

d. Administration, allow VA to administer all VA-user access.

3. Ensure that VA employees will not be required to provide sensitive personal data, such as date of birth, social security number, etc., for access to the Service Provider’s system.

4. Provide the capability for VA employees to create on demand, ad hoc reports, at a property level and summary level for any data element captured by the Service Provider for a VA asset. The Servicer Reporting Library for the list of reports the Service Provider at a minimum must provide to the VA.

Transmit and receive real-time data (e.g., daily transfers for property in a format and timeframe directed by the COR, or Authorized Designee, for interfaces to VA systems (e.g., WebLGY, Integrated Financial and Acquisition Management System (IFAMS),

a. Provide the following daily interfaces:

i. REO sales closing information.

ii. REO invoices for expenses incurred.

iii. Property Management Offers; and

iv. Data required for NPG monitoring and compliance reviews.

b. Provide the following monthly interfaces:

i. End of month reports (by the seventh business day of the following month).

ii. REO tax invoices.

iii. Title Scrub Fee invoices; and

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iv. Contract invoices.

6. Incorporate VA’s 12-digit Identification Number in each property record and display it on all major reports/screens. This must serve as a cross-reference and searchable field.

All property level reports must include a field reflecting the 12-digit number for each record; and

7. Deliver an annual Statement on Auditing Standards (SAS) 70 report (or its equivalent). The Service Provider must provide a SAS 70 report (or its equivalent) from third party Service Provider that has proprietary ownership of systems dedicated to this contract to VA or its auditors covering some portion of the current Government Fiscal Year (October-September).

As part of the Service Provider’s information management system(s), the Service Provider at a minimum must:

1. Provide sufficient documentation and training for VA personnel and its authorized agents to access and query VA data; and

2. Establish and maintain a reporting library to provide definitions of all data provided.

3. The contractor shall board all property records, including all data and images available. The contractor shall provide unlimited access to that data to VA employees identified by the COR.

Deliverables

a. Interface solution

b. System Training and Materials/Delivery

5.9 Customer Service to VA, VA Customers, and constituents.

The Service Provider at a minimum must:

1. Electronically document all inquiries and responses so that they are associated with the applicable property records.

2. Provide VA with the ability to search against documented inquiries and responses.

3. Provide an initial response to all routine correspondence within seven (7) calendar days and a final resolution and response within 30 calendar days. Routine correspondence is defined as a single borrower/purchaser inquiry/complaint; and

4. Priority correspondence is defined as any sensitive inquiry originating from Congress, the VA, other Governmental agencies and the media. VA expects that the Service

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Provider must exercise reasonable judgment in identifying these cases. The Service Provider must immediately notify the COR, or Authorized Designee, of sensitive cases to receive guidance on the priority, timeframe, information contained within, and format of the response. The Service Provider must provide VA an initial response within seven

(7) calendar days, and final resolution and response within 14 calendar days.

5. Offshore customer service is prohibited.

Deliverables

a. electronic record of customer inquiries and responses

6. Security

6.1. VA Information and Information System Security/Privacy Requirements

All Service Providers and Service Provider personnel must be subject to the same Federal security and privacy laws, regulations, standards, and VA policies as VA personnel, including the Privacy Act, 5 U.S.C. §552a, regarding information and information system security. Service Providers must follow policies and procedures outlined in VA Directive 6500, Information Security Program, and VA Handbook

6500.6, Contract Security which are available at: http://www1.va.gov/vapubs and its handbooks to ensure appropriate security controls are in place.

6.2. Access to VA Information and VA Information Systems

VA will supply the Service Provider with the minimum logical (technical) and/or physical access to VA information and VA information systems for employees, sub-contractors:

(1) to perform the services specified in the contract, (2) to perform necessary maintenance functions for electronic storage or transmission media necessary for performance of the contract, and (3) for individuals who first satisfy the same conditions, requirements, and restrictions that comparable VA employees must meet to have access to the same type of VA information.

All Service Provider and sub-contractors working with VA Sensitive Information are subject to the same investigative requirements as those of regular VA appointees or employees who have access to the same types of information. The level of background security investigation will be in accordance with VA Directive 0710 dated June 4, 2010, and is available at http://www1.va.gov/vapubs/viewPublication.asp?Pub_ID=487&FType=2.

Service Providers are responsible for screening their employees. The following are VA's approved policy exceptions for meeting VA background screenings/investigative requirements for certain types of Service Provider personnel:

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a. Service Provider personnel not accessing VA information resources, such as personnel hired to maintain the medical facility grounds, construction contracts, utility system Service Providers, etc.

b. Service Provider personnel with limited and intermittent access to equipment connected to networks on which no VA sensitive information resides; and

6.3. VAAR-852.273-75: Security Requirements for Unclassified IT Resources (Interim- October 2008)

The Service Provider and their personnel must be subject to the same Federal laws, regulations, standards, and VA policies as VA personnel, regarding information and information system security. These include, but are not limited to FISMA, Appendix III of OMB Circular A-130, and guidance and standards, available from the Department of Commerce’s National Institute of Standards and Technology (NIST). This also includes the use of common security configurations available from NIST’s Web site at:

http://checklists.nist.gov.

To ensure that appropriate security controls are in place, Service Providers must follow the procedures set forth in “VA Information and Information System Security/Privacy Requirements for IT Contracts” located at the following Web site:

http://www.iprm.oit.va.gov.

6.4. VA Information Custodial Requirements

VA information provided to the Service Provider for either the performance or administration of this contract must only be used for those purposes. No other use is permitted without the CO’s express written authorization. This clause expressly limits the Service Provider’s rights to use data as described in Rights in Data - General, FAR 52.227-14(d)(1). The Government must retain the rights to all data and records produced in the execution or administration of this contract.

Prior to termination or completion of this contract, the Service Provider must not destroy information received from VA or gathered or created by the Service Provider in the course of performing this contract without prior written approval by the CO. A Service Provider destroying data on VA’s behalf must do so accordance with National Archives and Records Administration (NARA) requirements as outlined in VA Directive 6300, Records and Information Management and its Handbook 6300.1 Records Management Procedures, and applicable VA Records Control Schedules. All data and reports must be transferred to VBA upon contract completion in a format specified by VA. The Service Provider must ensure that all data complies with VA’s requirement specifications to assure that VA has the means to access it. The information should be all transactions, for the life of the contract, to include but not limited to comments, notes, repair bids, pictures, and final property closeouts.

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The Service Provider must not make copies of VA information, electronic or otherwise, except as necessary to perform the terms of the agreement or to preserve electronic information stored on Service Provider electronic storage media for restoration in case any electronic equipment or data used by the Service Provider needs to be restored to an operating state.

The Service Provider must not use technologies banned in VA in meeting the requirements of the contract (e.g. Bluetooth-enabled devices).

6.5. Physical Security

If the contract requires taking VA data to a Service Provider site and the data contains Personally Identifiable Information, the Service Provider will provide an independent physical security assessment of their facility to the COR, or Authorized Designee, prior to commencing work. General guidelines for physical security can be found in VA Directive 0730, Section 6 (Physical Security) and VA Memorandum (subj: IT Oversight & Compliance Information Physical Security Assessments) dated October 24, 2007.

6.6. Training

All Service Provider and subcontractor personnel requiring access to VA information and VA information systems must complete the following before being granted access to VA information and networks:

1. Sign and acknowledge understanding of and responsibilities for compliance with the National Rules of Behavior related to access to VA information and information systems.

2. Successfully complete VA Information Security Awareness training and annual refresher training as required.

3. Successfully complete VA Privacy Awareness training and annual refresher training as required; and

4. Successfully complete any additional Cybersecurity or privacy training as required for VA personnel with equivalent information system access.

The Service Provider must provide to the COR, or Authorized Designee, a copy of the training certificates for each applicable employee within one (1) week of the initiation of the contract and annually thereafter, as required. These online courses are located at:

https:/EES-Learning.net.

Failure to complete this mandatory training within the timeframe required will be grounds for suspension or termination of all physical and/or electronic access privileges and removal from work on the contract until such time as the training is completed

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6.7. Service Provider Personnel Security

All contract employees who require access to VA site(s) and/or access to VA local area network (LAN) systems must be the subject of a background investigation and must receive a favorable adjudication from VA Security and Investigations Center (SIC).

These requirements are applicable to all sub-contractor personnel requiring the same National Agency Check with written Inquires (NACI) Background Investigation.

The level of background security investigation will be in accordance with VA Directive 0710 dated June 4, 2010, and is available at:

http://www1.va.gov/vapubs/viewPublication.asp?Pub_ID=487&FType=2.

6.8. Background Investigation

If contract employees require access to VA site(s) and/or access to VA LAN, the level of background investigation required for this effort is NACI.

6.9. Service Provider Responsibilities

The Service Provider must bear the expense of obtaining background investigations or reciprocals of previous investigations held that meet or exceed the required investigation level. The cost of the background investigations is based on the current Office of Personnel Management (OPM) rate at the time the application is processed at OPM. Fiscal Year 2025 rates are as follows: Tier One: $179.00, Tier Two: $415.00, Tier Three: $415.00, Tier Four: $ 4,055.00 and Tyier 5: $ 5,355.00. VA will pay for investigations or reciprocals processed through VA SIC and conducted by the Office of Personnel Management (OPM) in advance; however, the Service Provider must reimburse the full cost of background investigations/reciprocals to VA within 30 calendar days of Bill of Collections received from VA. VA will send up to three (3) plus one (1) final delinquent notice to the Service Provider. If the Service Provider does not adhere to the Bill of Collections, future invoices may be subject to be offset by VA to recoup background investigation/reciprocal costs.

Immediately after contract or task order award, the COR will provide the Service Provider with the following background investigation forms to be completed by the Service Provider and returned to the COR to begin the background investigation process for all contract employees working on the contract who will have access to VA facilities, VA systems, or privacy data:

a. Background Investigation Request Worksheet, VA Form 20-10276

b. Fingerprint Request Form

Upon receipt of the above-stated documents from the COR will submit the background investigation package to the VSC Security Specialist for processing through

25 | P a g e the SIC. Upon notification of favorable fingerprint results, the Service Provider may begin work while the background investigation is ongoing. Thereafter, the Service Provider will receive an email notification from the VSC or SIC identifying the website link that includes detailed instructions regarding completion of the background clearance application process in the Electronic Questionnaires for Investigations Processing (e-QIP) system. E-QIP is an online, Internet accessible system where the Service Provider employee must complete the security questionnaire required for OPM to process the background investigation.

Service Provider employees who have a current favorable background investigation previously conducted by OPM or Defense Security Service (DSS) may be accepted through reciprocation. When a previous clearance is currently held, it does not preclude the vendor from submitting a completed Background Investigation Package as stated above to the COR immediately after contract or task order award for all contract employee who will be working on the contract.

The Service Provider must prescreen all personnel who require access to VA site(s) and/or access to VA LAN systems to ensure they maintain a U.S. citizenship or Alien Registration that authorizes them to work in the U.S. and are able to read, write, speak and understand the English language

Contract performance must not commence before:

· The VSC has confirmed favorable fingerprint results, or

· SIC confirms that it has received the Service Provider’s investigative documents, the documents are complete, and that the investigation information has been released to OPM for scheduling of the background investigation, or

· VSC or the SIC has confirmed that the verified investigation will be reciprocated.

The COR will notify and forward the Service Provider a copy of the Certificate of Investigation when the background investigation has been favorably completed or a Certificate of Eligibility (form 4236) if the investigation has been reciprocated. The

Service Provider, if notified of an unfavorable adjudication by the Government, must withdraw the employee from consideration from working under the contract. Failure to comply with the Service Provider personnel security requirements may result in termination of the contract for default.

The Service Provider must be responsible for the actions of those contract and subcontract employees they provide to perform work for VA. In the event damage arises from work performed by Service Provider personnel, under the auspices of the contract, the Service Provider must be responsible for resources necessary to remedy the incident.

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6.10. Government Responsibilities

After the COR, or Authorized Designee, has received Attachment B form(s) from the Service Provider, SIC will send an email notification to the Service Provider and their POC identifying the website link that includes detailed instructions regarding completion of the background clearance application process and what level of background was requested. SIC will also send reminder notifications to the Service Provider and their POC if the complete package is not submitted by the due date.

Upon receipt of required investigative documents, SIC will review the investigative documents for completion and…