Responses to Draft SHNAS RFP Questions 5_26.pdf

DRAFT REQUEST FOR PROPOSAL NO., 12RADA22R0001

RESPONSES TO QUESTIONS DATED 17 MAY 2022

SINGLE FAMILY HOUSING NATIONWIDE APPRAISAL SERVICES (SHNAS)

26 MAY 2022

I. Responses to Offeror’s Questions to the Draft RFP

Question No.

Name of Document Page Number

Section Number

Paragraph Number

Question Response

1 DRAFT

RFP.,12RADA22R00

7 (5 of 69) F.3 452.211-

62-64 The solicitation states in this section the period of performance is 9/1/22 - 8/31/2027. However, the SF1449 indicates a period of performance as 12/19/22 - 12/18/27.

Please clarify the period of performance.

The solicitation PoP under Section F.3 is an administrative oversight. The correct PoP is described in SF1449. An amendment will be issue to correct the PoP date in Section F.

2 DRAFT

RFP.,12RADA22R00

69 (67 of 69) M.5; Subfactor 1.1

2215 - 2216 How will evaluators use Exhibit C and Exhibit D to specifically determine confidence?

See draft RFP, Section M for details on how Exhibits C and D will be evaluated. Responses to Exh C that demonstrate the company has key personnel with a thorough understanding of the appraisal management industry on a nationwide basis for large volume lender(s) AND the business/management experience for this type of effort will receive higher confidence than those who do not. Regarding Exh D: Companies that have demonstrated historical volumes of delivered appraisal reports on a nationwide basis at a volume at least as high as anticipated under this effort will receive higher confidence over companies who do not demonstrate such experience.

3 Attachment 1 - PWS 3 4.1.4 11 What is the typical lot size in each market and will there be acreage properties?

There is no "typical" lot size when a property is located outside of a platted community. Sites must be modest and meet the requirements as outlined in HB-1 3550 Handbook, paragraph 5.4 Modest Sites.

4 Attachment 1 - PWS 3 4.1.4 11 What types of properties will be most common. I.E.

manufactured, modular?

Site-built existing dwellings are more than 90% of our volume.

Newly built homes are approximately 5% and manufactured are less than 1%.

5 Attachment 1 - PWS 3 4.1.4 11 Will hobby farms and working farms be considered for the USDA program?

Working farms are not eligible. Homes that have income producing structures or are actively income producing are not eligible property types. Unused buildings, such as old barns, stables, silos, etc that are not currently used in farming, ranching or income production do not make the property ineligible and are treated as storage buildings for Agency underwriting purposes.

6 Attachment 1 - PWS 3 4.1.4 11 What is the expectation on overall volume, preferably by state?

In accordance with PWS, Section 2.0, current data indicates SFH appraisal requirements for up to 8,000 properties per year nationwide. Exhibit F reflects historical volumes by state. Future volumes by state may vary.

7 PWS A-1 PRS Matrix PRS #1 How will liquidated damages be calculated? In accordance with the Draft RFP, Section F.2 FAR 52.211-11 which states: If the Contractor fails to deliver the supplies or perform the services within the time specified in this contract, the Contractor shall, in place of actual damages, pay to the Government liquidated damages of no more than $50 per calendar day for up to thirty (30) days or until the task order is awarded to another vendor; whichever comes first.

8 PWS A-1 PRS Matrix PRS #1 Will exceptions be granted for extenuating circumstances? See response to question #31.Exceptions are at the Agency's discretion. Force majeure and other limited documented circumstances may be approved. Also, see FAR 52.212-4 (f) Excusable Delays.

9 PWS A-1 PRS Matrix PRS #1 Will USDA consider paying a bonus for superior performance?

A bonus will not be given for early appraisal delivery.

Performance evaluations reflecting superior level of performance can be included in CPARS.

10 SOL 12 H 8 How many contracts does USDA plan to award In accordance with the Draft RFP, Section L.3, FAR 52.233-2, the Government contemplates a multiple award IDIQ, FFP contract resulting from this effort. For purposes of this effort, multiple awards means 2 or more vendors.

11 SOL 12 H 8 Does USDA have a plan for allocating orders and if so will you include in the RFP?

USDA does have a plan for allocating orders. Please refer to Section H.8 Proceduring for Issuing Orders for details.

12 SOL 67 M Subfactor 1.1 Is there a USDA system that can be integrated for orders and delivery of results?

No. The USDA does not have a system that can be use to integrate orders and deliver the results. The orders and delivery results will be handled by the assigned Contracting Officer and Contract Specialist. Please refer to Section H.8 of the DRFP.

13 SOL 60 L Tab f Please confirm the percentage of planned small business subcontracting won't be part of the evaluation for award?

Correct. The percentage of planned small business subcontracting plan won't be part of the evaluation for award. In accordance with the draft PWS and draft QASP PSR #9 the contractor is required to maintain SB subcontracting goal 10% of the time during the period of performance.

14 PWS 7 5 5.0 How will the time required to Phase-in be evaluated? The awardee's Phase-In Plan will be evaluated in accordance with the draft PWS and draft QASP PSR#13.

15 SOL 60 L Tab f Will an awardee be allowed to change subcontractors, (add and remove) after award?

Yes, as long as the change of subcontractors won’t affect the performance objectives in accordance with draft PWS and draft

QASP PSR #1-13.

16 SOL General Is this procurement a recompete of the two existing Appraisal contracts or a new contract all together?

This effort is the follow-on of the current BPA Nationwide Appraisal Services contracts. These contracts will allow USDA to transition away from our current nationwide BPAs for loan origination appraisals upon successful transition and performance of the new awardees.

17 We will need to know if we have to use FHA approved appraisers only or not.

No. The SHNAS Contractor does not need to use FHA approved appraisers. Please refer to draft PWS and draft QASP PSR#10 which requires the contractor to obtain and maintain all appropriate licenses and certifications.

Question No.

Name of Document Page Number

Section Number

Paragraph Number

Question Response

18 Given the current environment and shortage of qualified appraisers, a 30 calendar day turn time may not be possible, especially for rural areas. If 30 days is required, that turn time may be met for additional fees/quotes, but that will be on a case-by-case basis. We did notice that in Appendix A of Document QASP there is a performance threshold of 90% which is more achievable, but still may not be adequate for rural areas due to lack of appraisers.

Awardee is required to meet the turn time identified in the task order at or below the awardee's IDIQ pricing rate for the given state or liquidated damages as provided in response # 7 will apply.

19 Completing the 1004D within 10 calendar days is the goal, however, currently is not always the case. Since these are still completed by appraisers, the current appraiser shortage still applies here.

See response to question #18.

20 In addition, due to the lack of appraisers, oftentimes it is taking longer than 3 business days to assign an appraiser to an order.

Three (3) business days is a requirement for this draft RFP.

21 Regarding collection actions, will we be billing USDA or the homeowner? Will this be a direct pay activity or will USDA be paying us?

The Contractor shall sumbit an invoice for appraisal services on USDA loans in accordance with Section G.3 of the draft RFP.

Invoices shall be billed to USDA and will be paid by USDA.

22 What platform will we be required to integrate with? We have extensive experience and resources to perform efficient integrations with third parties. It would be useful to know which one.

USDA does not have a platform. The Contractor is required to provide a web-based platform in accordance with the draft PWS, Section 4.4. In the future, USDA will have a new application and underwiting system that may or may not integrate with the contractor platform via bilateral modification.

23 With the current business environment and lack of appraisers 3 business days may be difficult.

See response to question #20.

24 Can you define small business and provide additional context to the goal mentioned? Would this RFP be restricted to small businesses only or could other businesses apply also?

In accordance with Section L.11 of the draft RFP, each Large Business Offeror shall provide a Small Business Subcontracting Plan that contains all the elements required by FAR 52.219-9 (ALT II). The USDA has established small business goals to ensure small businesses will have maximum practicable opportunity to participate in performance of USDA contracts. The small business goal for this acquisition is 10% and is a based on the total contract value of all delivery orders awarded under the Offeror’s IDIQ contract over the entire ordering period (each socio-economic category goal is not additive to the small business goal). Small Businesses do not need to provide a SB Subcontracting Plan. This effort will be competed under full and open competition.

25 What type of penalties are there for being late for an appraisal? What happens if we cannot find an appraiser for a particular property?

See reponse to question #7.

26 DRAFT Solicitation 12RADA22R0001.pdf

63 L.14 VOLUME

IV: PRICE

1 The PWS is asking for a web portal support however the price schedule doesn't include a section for that, how is USDA want the pricing for the web portal?

Refer to draft RFP, Section L.14 for Price Volume instructions.

There is no separate price schedule for web portal support. The price per appraisal shall be fully burdened and include any development costs the contractor expects it will need to expend to adapt their current lender portals/interfaces.

27 DRAFT Solicitation 12RADA22R0001.pdf

63 L.14 VOLUME

IV: PRICE

1 The PWS is asking for Program Mamangement support however the price schedule doesn't include a section for that, how is USDA want the pricing for the Program Manangement support be provided?

Refer to draft RFP, Section L.14 for Price Volume instructions.

There is no separate price schedule for program management support. The price per appraisal shall be fully burdened.

28 DRAFT Attachment 1_PWS.docx

2 of 9 4.1.4 Requirements for Appraisers

2 Under this section it states "All work shall be performed by, or under the direct supervision of, licensed appraiser, state certified general or certified residential. Direct supervision means the licensed appraiser, state certified general appraiser or certified residential to supervise, aid in analyzing and writing of the approach to value and perform the inspection of the subject and comparable sales."

Can USDA clarify if the appraisals can be completed by an agent or a appraiser trainee as long as they work under a licensed or certified appraiser? if yes does that apply to 1004, 2055 Exterior, 1004D, 1004C and 1073?

Yes. An agent or appraiser trainee is acceptable when working under the direction of a licensed or certified appraiser whose information and signature are on the report, including forms:

1004, 2055, 1004D, 1004C and 1073.

29 DRAFT Attachment 1_PWS.docx

8 of 9 6.3 Appraisal Reports (D003)

1 Can USDA confirm the Approval of the appraisal report within 7 business days of delivery is final for invoicing?

The Government requires ten (10) business days to review, and the Contractor has five (5) business days to incorporate changes and return to the Government. If no clarifications and/or corrections are needed, acceptance will be provided within ten

(10) business days.

30 DRAFT Attachment 1_PWS.docx

3 of 9 4.1.9 Expected

Timeframes

1 What is the processing time for payments once an invoice is submitted by the contractor? Is a remittance of the payment submitted as well?

Refer to draft RFP, Section G.3 Invoice and Payment Provision.

Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C.3903) and Office of Management and Budget (OMB) prompt payment regulations at 5 CFR Part 1315 in accordance with FAR 52.212-4.

31 DRAFT Attachment 1_PWS.docx

3 of 9 4.1.9 Expected

Timeframes

1 Giving current market condition where demand and supply do not exist with shortage of appraisals. Would USDA reconsider the Liguidated Damages for missed deadlines

In accordance with the draft PWS and draft QASP PSR#1, Performance Threshold states: 90% of the appraisal reports must meet the timeframes in the executed task order or CPARS Past Performance will be impacted. 100% of appraisal reports must meet the timeframes in the executed task order or liquidated damages will be assessed.

32 DRAFT Attachment 1_PWS.docx

6 of 9 4.4.2 Web- Based

Platform

Bullet 3 Can USDA Clarify the situation in which an order is required to be placed on hold? And how delivery timeframe will be impacted by the on hold time?

If an order is placed on hold due to Agency error or buyer/seller requests, the days on hold will not count towards the delivery timeframe due to USDA delay.

II. Summary of Changes to the draft RFP

a. The following changes were made to the draft RFP: (a) Solicitation, and (b) the Performance Work Statement

(PWS).

1. The following changes were made to the Solicitation:

i. Section F.2 titled Liquidated Damages-Supplies, Services, Or Research and Development, is hereby revised (Page 5, Line Number 54) to remove a typographical error as follows, “… pay to the Government liquidated damages of no more than $50 per calendar day for up to thirty (30)…”

ii. Section F.3 titled Period of Performance is hereby revised (Page 5, Line Number 63) to read as follows, “The period of performance of this contract is 12/19/2022 through 12/18/2027…”

iii. Section J.1 is hereby revised (Page 32, Line Number 984) to incorporate the revised Performance Work Statement (PWS) dated 05/25/2022.

iv. The Cover Page and Section J.2 are hereby revised (Page 32, Line Number 987) to incorporate Exhibit F titled USDA SFH Appraisals- Historical Volume by State. This is for Offeror reference and provided for informational purposes only.

v. Section J.2, Exhibit C titled Key Personnel List, Section II titled Key Personnel Information is hereby revised to include resumes.

vi. Section L.6, item number 4 (Page 58, Line Number 1744) is hereby revised to incorporate the new Q&A period which reads as follows, “All questions are due by 7 June 2022, by close of business 5:00PM ET, in the MS Excel format…”

vii. Section M.5, Subfactor 1.2 Program Management, Key Personnel (Page 68, Line Number 2237) is hereby revised to add clarity to the standard as follows, “…Key personnel shall demonstrate a thorough

Question No.

Name of Document Page Number

Section Number

Paragraph Number

Question Response

33 DRAFT Attachment 1_PWS.docx

6 of 9 4.4.2 Web- Based

Platform

Bullet 7 Under this bullet it states that "This information shall be available for download in PDF" Is Excel format acceptable for orders listings and statuses instead of PDF?

Yes. The contractor can provide referenced information in MS Excel or other format as approved by the Contracting Officer Representative. The PWS will be revised to reflect the change.

34 DRAFT Attachment 1_PWS.docx

9 of 9 7.0 DATA

RIGHTS

1 What is the retention policy for all orders data and documents?

In accordance with draft RFP, FAR 52.212-5, The Contractor shall make available at its offices at all reasonable times the records, materials , and other evidence for examination, audit, or reproduction, until 3 years after final payment under this contract or for any shorter period specified in FAR subpart 4.7, Contractor Records Retention, of the other clauses of this contract.

35 DRAFT Attachment 1_PWS.docx

4 of 9 4.2.1 Describing and Reporting the

Observed Condition of

1 How are the supporting documentation provided? Will the documents be itemized and labeled?

This can depend upon the contractors' web-based portal capabilities. Generally files will be attached as .pdf, jpg, doc, img, xls. If the contractors' portal has a labelling feature then staff initiating the orders would be instructed to complete accordingly.

36 Is there an incumbent contractor for this requirement? If so, can you provide us the name of the incumbent contractor and their awarded contract number?

Yes. The incumbents are: JLL which holds BPA number 12RADA20A0004, and Verdi Consulting which holds BPA number 12RADA20A0003.

37 Both Fannie Mae and Freddie Mac have initiated the use or Desktop Appraisals with certain 3rd party data collection employed for aspects of the inspection process

See continuation in reponse #38 and #39.

38 Both of these entities will be employing hybrid inspections for full 1004 appraisals at some point within the next year to reduce the long turn times and reduce the burden of limited appraiser resources especially in rural areas.

See continuation in reponse # 39.

39 Does the USDA anticipate approving a similar process to improve the service levels, especially in those hard-to-serve rural areas?

In accordance with the draft PWS 4.1.5, appraisal reports require an inspection of the property. However, it also provides for both exterior only and desktop appraisals. These report types as well as hybrid forms would be an acceptable alternative to a full 1004 URAR with prior USDA approval when a full 1004 URAR is not available. If hybrid appraisals (and desktops) become fully accepted/utilized within the industry (including GSEs with high LTVs) the Agency may request pricing schedules for these types of appraisals via bilateral modification.

understanding of appraisal management industry on a nationwide basis for large volume lender(s) and the business /management experience for this type of effort.”

2. The following changes were made to the PWS:

i. Under Section 4.1.5 Property Access and Observation is hereby revised (Page 7, Line Number 126-129) to add the following, “…Potential for hybrid or alternative appraisals on a wider scale may be allowable as advances in the appraisal industry occur and upon wider acceptance of such advancements within the lending industry. The Agency may request pricing schedules for hybrid or alternative appraisals via bilateral modification. Alternative valuation methods (AVMs) are only acceptable on a case-by case basis with justification documenting the need and prior written approval from the COR…”

ii. Under Section 4.4.2 titled Web-Based Platform for Initiating Orders, Reviewing Workflow, Coordinating Revisions, Reporting Deliverables, and Submission of Completed Orders (Page 8, Line Number 337-338) is hereby revised as follows, “…This information shall be available for download in MS Excel or other format as approved by the COR…” In addition, a typographical error was found (Page 8, Line Number

341) and corrected as follows, “All data breaches impacting current or previously completed orders must be reported to the Agency COR or CO within one hour of occurrence.”

iii. Under Section 6.3 Appraisal reports is hereby revised (Page 8, Line Number 407-409) as follows, “…The Government requires ten (10) business days to review, and the Contractor has five (5) business days to incorporate changes and return to the Government. If no clarifications and/or corrections are needed, acceptance will be provided within ten (10) business days.”

3. The Exhibits A through E do not count against page limitations set forth in Section L.

4. No other changes have been made to the draft RFP beyond what it is specified herein.