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Questions & Answers SBA Solicitation SBAHQ-12-R-0006 Central Servicing Agent for the 503/504 Loan Programs
| 1. To assist in determining staffing, what is the average number of customer service calls received on a monthly basis? |
| 1. Monthly an average of 2,296 inquiries |
| 2. To assist in determining staffing, does anyone – other than the Certified Development Companies (CDC’s) – call the customer service center? |
| 2. Yes - SBA Centers, District Offices, pool originators, and SBA staff |
| 3. To assist in determining staffing, what is the delinquency rate of the portfolio over the past 12 months? |
| 3 |
| Month |
| Delinquency Rate |
| Last 12 Mnth Charge-Off Rate |
| Liquidation Rate |
| Last 12 Mnth Purchase Rate (Default Rate) |
| 201009 |
| 3.63% |
| 2.34% |
| 8.29% |
| 6.25% |
| 201109 |
| 2.69% |
| 3.19% |
| 9.70% |
| 2.75% |
| 201203 |
| 2.57% |
| 3.61% |
| 9.30% |
| 2.33% |
| 4. To assist in determining staffing, how many new loans have been added in the past 12 months? |
| 4. |
| MAY |
| 313,818,000 |
| 586 |
7,640
| 5. To assist in determining staffing, how many loans have been paid-off over the past 12 months? |
| 5. |
| May-11 |
| 241 |
| 6. To assist in determining staffing, what are the late fees collected over the past 12 months? |
| 6. The CSA system records late fees collected, but it does not record aggregate late fees. |
| 7. To assist in determining staffing, will SBA provide a trended portfolio report covering the past 5 years as part of the answers to these questions? |
| 7. |
| Fiscal Year End Month |
| Active Loans |
| Gross Active Balance |
| APPVFY |
| MAJPGM |
| Approved Loans |
| Approved Dollars |
| 200709 |
| 46,821 |
| $ 18,829,639,038 |
| 2007 |
| 504 |
| 10,669 |
| $6,313,826,000 |
| 200809 |
| 51,112 |
| $ 21,442,924,699 |
| 2008 |
| 504 |
| 8,883 |
| $5,289,790,000 |
| 200909 |
| 53,417 |
| $ 22,789,535,873 |
| 2009 |
| 504 |
| 6,608 |
| $3,834,263,000 |
| 201009 |
| 55,143 |
| $ 23,269,832,255 |
| 2010 |
| 504 |
| 7,833 |
| $4,433,308,000 |
| 201109 |
| 56,891 |
| $ 23,860,047,188 |
| 2011 |
| 504 |
| 7,983 |
| $4,845,119,000 |
| 8. To assist in determining staffing, will SBA provide its projection on future anticipated volume as part of the answers to these questions? |
| 8. No, SBA will not provide its projection on future anticipated volume. |
| 9. To assist in determining staffing, what is the loss rate history over the past two years? | | |
| 9. | Month |
| Delinquency Rate | | |
| Last 12 Mnth Charge-Off Rate | | |
| Liquidation Rate | | |
| Last 12 Mnth Purchase Rate (Default Rate) | | |
| 201009 |
| 3.63% |
| 2.34% |
| 8.29% |
| 6.25% |
| 201109 |
| 2.69% |
| 3.19% |
| 9.70% |
| 2.75% |
| 201203 |
| 2.57% |
| 3.61% |
| 9.30% |
| 2.33% |
| 10. To assist in determining staffing, what is the liquidation rate over the past two years? |
| 10. |
| Month |
| Delinquency Rate |
| Last 12 Mnth Charge-Off Rate |
| Liquidation Rate |
| Last 12 Mnth Purchase Rate (Default Rate) |
| 201009 |
| 3.63% |
| 2.34% |
| 8.29% |
| 6.25% |
| 201109 |
| 2.69% |
| 3.19% |
| 9.70% |
| 2.75% |
| 201203 |
| 2.57% |
| 3.61% |
| 9.30% |
| 2.33% |
| 11. To assist in determining staffing, what is the default rate over the past two years? |
| 11. |
| Month |
| Delinquency Rate |
| Last 12 Mnth Charge-Off Rate |
| Liquidation Rate |
| Last 12 Mnth Purchase Rate (Default Rate) |
| 201009 |
| 3.63% |
| 2.34% |
| 8.29% |
| 6.25% |
| 201109 |
| 2.69% |
| 3.19% |
| 9.70% |
| 2.75% |
| 201203 |
| 2.57% |
| 3.61% |
| 9.30% |
| 2.33% |
| 12. To assist in determining staffing, what is the average prepayment rate over the past two years? |
| 12. |
| May-11 |
| 241 |
| 13. To assist in determining staffing, what is the current staffing broken up between cash processing and customer services at the current contractor’s offices where this work is now performed? |
| 13. This information is considers to be proprietary. |
| 14. Will SBA provide sample reports and/or layout specifications for those reports lists on Attachment 6 to the Statement of Work (SOW) – and, if so, when will they be provided? |
| 14. The funding reports, the late fee reports and status of portfolio reports are all part of the CSA system. The reports submitted via FTP are all data field. |
| 15. The contract mentions Demand Deposit Accounts (DDA’s) and Trust Accounts being required for the deposit account. Is it correct if a contractor defines a Trust account as an account held at a bank or trust company? Further, if the awardee who is the Central Servicing Agent (CSA) is a bank capable of holding the deposit accounts, would it be acceptable is that CSA (a bank) establishes bank accounts within its own institution (either interest bearing or not, as required) and not use a separate Trust Company? Does that business process meet the SOW expectations? |
| 15. Yes |
| 16. Referring to the SOW, page 5, Section C-1 - Fund Accounts – will the SBA provide a chart of accounts and/or a sample example of the flow of funds through the various accounts required for a typical Debenture Pool for both 503 and 504 scenarios, and, if so, when? |
| 16. Yes, SBA is providing a bank statement of the trust account, see attached. |
| 17. Referring to the SOW, page 5, C-1A-#1 - Master Reserve Account (MRA) - will SBA provide any examples of the types of investments required by the SBA in the various Accounts established under this contract, and, if so, when? |
| 17. MRA funds are currently invested in obligations of the United States Government and short term repurchase agreements with approved counterparties. These repurchase agreements are 102% collateralized by collateral acceptable to SBA. At time of award SBA will discuss the investment requirements. |
| 18. Referring to the SOW, page 6, C-1C – #1 - Establishment of 503 Demand Deposit Accounts (DDA), 504 DDA and Interest Bearing Trust Deposit Account - can the SBA confirm that the reference to “cutoff time” on payments received into the Master Deposit Accounts relates to checks received by the CSA but does not include payments drafted from the borrower’s bank account? |
| 18. Yes. |
| 19. Referring to the SOW, page 9, C-2A-#6 - Review of Sale Documents - will you provide a more detailed description of the purpose and use of the ETRAN system? How will it be integrated into the CSA and when will that happen? Alternatively, are there additional reference materials that can be made available, such as a recorded online demo of the ETRAN system, and, if so, when can the reference materials be made available? |
| 19. Yes, see attached copy |
| 20. Referring to the SOW, page 15, C-3B-#2 - Debenture Payment - will the SBA provide a sample report of the existing schedule in use regarding the Guaranty Advance Payments made by the CSA and provided to the trustee for relevant Debentures? If so, when will the same report be provided? |
| 20. Yes, see attached copy |
| 21. Referring to the SOW, page 19, C-3D-#6.5 – Waivers - can waivers of late fees by the CDC’s be received electronically to satisfy the requirement that such be made in writing/ Can the copy of the action that CSA is to send to the Servicing Center and the CDC be handled electronically as well? |
| 21. Yes |
| 22. Referring to the SOW, page 22, C-3G-#1 - Investment Allocation, will SBA provide an example scenario of short and long term maturities in securities referenced in this section? If so, when will the scenario be provided? |
| 22. After contract has been awarded SBA will discuss short and long term maturities in the securities. |
| 23. Referring to the SOW, page 24, C-3H- First Lien Position 504 Loan Pools (FMLP) - what is the current volume of the FMLP Portfolio? |
| 23. 93 Pools for a total of $396,190,537.37 total number of loans 351. |
| 24. Referring to the SOW, page 28, C-4-#1 – General Requirements - how amenable is the SBA to converting from the existing SBA systems to a consolidated, feature-rich system that would require the purchase and on-going licensing of third party software by the CSA? |
| 24. This is a NO COST contract. SBA is amenable to converting from the existing SBA systems to a consolidated, feature-rich system as long as it is NO COST to the government. |
| 25. SBA provide a Software Architecture Document (SAD) detailing mainframe, PC desktop, web environment, and reporting components? If so, when? |
| 25. No |
| 26. Referring to the SOW, page 28, C-4-#1 – General Requirements - are there any functional requirements contained in this solicitation that are not in the existing system? If so, what SOW sections pertain to those requirements? |
| 26. No. |
| 27. Referring to the SOW, page 28, C-4-#3 – System Availability – will SBA provide any pre-defined or allowable maintenance windows for performing any regular system maintenance functions? If so, when will those maintenance windows be provided? |
| 27. Yes, 30 days prior to maintenance. |
| 28. Referring to the SOW, page 28, C-4-#5 – CSA System Duties – will SBA provide information related to the current location of any hard copy paper files being retained by the current CSA? If so, when will that information be provided? |
| 28. The only hard copy paper files that the CSA retains is the debenture documents (SBA Form 1504, 1504, 1506) |
| 29. Referring to the SOW, page 28, C-4-#5 – CSA System Duties – what communication protocols are supported by SBA computer systems and what are the purposes of each protocol? Does a diagram of the communication protocols exist and can it be provided? |
| 29. There is no diagram of communication protocols currently. System is web base. |
| 30. Referring to the SOW, page 31, C-5-#6 – Management and Improvements of LAMP - what functionalities and capabilities are currently being fulfilled by the LAMP system? |
| 30. LAMP is currently a portfolio management system which the CSA will update and maintain. |
| 31. Referring to the SOW, page 31, C-5-#6 – Management and Improvements of LAMP – what hardware and software does the LAMP system need to be built/run on? |
| 31. Web base. |
| 32. Please confirm the page limitations for the Management Approach. On page 52 of Addendum 1, a 5-page limitation is stated, while on page 58 of the same document, no page limitation is indicated for the Management Approach. |
| 32. The Management Approach has no page limitations. Page 52 is in error. |
| 33. Please confirm the page limitations for the Business Approach. On page 52 of of Addendum 1, a 15-page limitation is stated, while on page 59 of the same document, no page limitation is indicated for the Business Approach. |
| 33. The Business Approach has no page limitations. Page 52 is in error. |
| 34. Referring to the SOW, page 33, C-8-#7 - CSA User Committee – The National Association of Development Companies (NADCO) has a CSA User committee with whom the agency consults. Are there any recommendations from that committee that the agency is currently considering which would require changes in the CSA’s responsibilities? |
| 34. No, recommendations offered by the User Committee have been accessed and considered were it was appropriate. |
| 35. In what form are loan closing documents transmitted to the CSA? Are they submitted electronically? |
| 35. No, Overnight mail currently. |
| 36. If a loan is deferred, who is responsible for determining the new amount to be paid to catch up with the payment schedule? |
| 36. The CSA will be responsible for determining the new amount to be paid to catch up with the payment schedule. |
| 37. How is the CDC servicing fee remitted to SBA established? If it is changed, how quickly will the CSA be required to implement such change? |
| 37. SBA does not anticipate any changes to the CDC servicing fee. If changes may be required SBA will consult with the CSA agree on a mutual timeline. |
| 38. What are the number and balance amount of FMLPs outstanding? |
| 38. 93 Pools for a total of $396,190,537.37 total number of loans 351. |
| 39. If the offeror for the CSA contract is a bank, can it nominate its own bank to perform trust services for this contract? |
| 39. Yes. |
| 40. What is the volume of customer support requests? Is there currently an Interactive Voice Response (IVR)system? If so, is the IVR owned by the SBA so that it can be transferred if a new contractor is the awardee? |
| 40. No, SBA does not recommend an IVR. |
| 41. Referring to the SOW, page 25, C-3H#5.2 - Underlying Loans within Pool Data – it states that the CSA is to collect and maintain data on the underlying loans on a daily basis through a “web service or as instructed by the SBA.” Can the SBA provide detailed background information on the current processes and technology used to collect the loan data on a daily basis from the lenders? |
| 41. The data collected is done at the time the debenture funds. CSA enters data (as stated C-3H#5.2) onto the CSA system. |
| 42. Referring to the SOW, page 33, C-8-#6 - Insertion of Information into Mailings – are mailings hardcopy delivered by USPS or similar, or can they be electronic mailings? |
| 42. Currently there are no mailings done by the CSA other than the IRS form W-9, 1098 and 1099 statement. SBA may have a need in the future insertion of information into mailings and at such time CSA will be required to execute. |
| 43. Referring to the SOW, page 31, C-5-#6 – Management and Improvements of LAMP – this section states that the CSA is to update and maintain the LAMP system. Could SBA provide the details for this requirement or documentation describing this systems application software and/or hardware? |
| 43. Request will be provided upon award. System is web base an hosted by the CSA. |
| 44. If required, who bears the cost of modifications to the LAMP system? Can SBA provide historical information for the time, materials, and costs for maintaining and enhancing this system? Is there a dollar threshold up to which the CSA would absorb the cost? |
| 44.This is a NO COST contract as such cost is bear by the CSA |
| 45. Referring to the SOW, page 25, C-3H#5.2 - Underlying Loans within Pool Data – this section refers to a Loan Accounting System (LAS). Please describe LAS functionality as it pertains to the engagement, and state whether the CSA is responsible for maintain this functionality. If the CSA is responsible for maintaining the LAS functionality, can SBA provide historical information for the time, materials, and costs for maintaining and enhancing this system? Is there a dollar threshold up to which the CSA would absorb this cost? |
| 45. LAS is an SBA system, the CSA is not responsible for the system. The information collected from the CSA will be transferred to LAS. |
| 46. There is limited data available regarding the systems used by the current CSA. Would a detailed systems manual be provided to a successor CSA to ensure an orderly transfer of the system code to the successor? |
| 46. Yes. |
| 47. If a successor CSA is the awardee, will the transfer of systems from the incumbent CSA to the successor CSA be the computer software only, and will supporting hardware remain with the incumbent CSA? |
| 47. The new CSA will receive the software only. |
| 48. Are there any pending enhancements required to support FMLPs currently incorporated or contemplated in the CSA’s systems? |
| 48. No |
| 49. Referring to the SOW, page 28, C-4-#2 - System Costs – this section states that the CSA will absorb all costs for all upgrades/enhancements for the CSA system. Can SBA provide historical information for the time, materials, and costs for maintaining and enhancing this system? Is there a dollar threshold up to which the CSA would absorb the cost? |
| 49. SBA does not have historical information for the time materials and cost for maintaining and enhancing the CSA system. The CSA has always absorbed the cost. |
| 50. Referring to the SOW, page 28, C-4-#5 – CSA System Duties – this section appears incomplete. Are these fields related to the FMLP program? If so, what are the CSA’s duties? |
| 50. The FMLP is part of the CSA system. |
| 51. Are there any planned enhancements the SBA is looking to add to the CSA system, CDC online, and LAMP during the term of the contract? According to the current CSA contract, the contractor was able to charge a fee for modifications made to the CSA system to support FMLP servicing; would future significant system modification requests also be eligible for additional fees? |
| 51. The FMLP was not within scope of the current contract as such a new a new scope was created and modifications made. If there is a need that is not within scope a new contract may be issued. |
| 52. It is understood that the SBA is able to log into the CSA Mainframe system which is often referred to as “green screens” and the technical language is CICS. Please confirm whether the system truly has an online/CICS aspect, since the user manual provided didn’t have any reference to it. |
| 52. Not Applicable. |
| 53. Where is the system architecture (hardware, etc.) currently housed – ie. within incumbent, third party, SBA? |
| 53. Within the incumbent. |
| 54. How and what is the method used to transfer data and/or files between the CSA Mainframe and the CDC Online system? Please explain the frequency of such a transfer and whether batch or a real-time continuous method is used. |
| 54. FTP. |
| 55. Please provide incident metrics relating to each system, which would include volume and frequency of incidents. Furthermore, what are the staffing requirements per system to support the overall CSA platform? What technical expertise and skills are required by the staff to support the overall function? |
| 55. This is proprietary |
| 56. Please provide complete inventory of software and hardware requirements and those making up the existing platform, which should include, but not be limited to, database servers, web servers, required software installations and versions, etc. – and for each hardware and software requirement, confirm what will be transferred from the incumbent CSA to any new CSA. |
| 56. CSA system will be transferred to the awardee. |
| 57. Please confirm the database platform used for the CSA Mainframe system, such as DB3 or IMS databases, and whether the system leverages VSAM files. If not, what data management access methods are being used to support the system? |
| 57. All CSA Mainframe data in support of the SBA 504 System resides in a combination of VSAM and Sequential (flat) files. |
| 58. Please provide system and architecture diagrams of existing platform which would include, but not be limited to, CDC Online, CSA Mainframe, LAMP, LAS, PMQD, etc. Are there any internal or external systems or services which the existing platform interfaces with? Are there any batch jobs or applications that are required which support existing implementation? |
| 58. Yes, there are intended batch jobs required. |
| 59. What are the storage requirements of existing production platform, which would include, but not be limited to, database storage requirements and file space requirements? |
| 59. The current environment exists within a shared DASD Pool. It is estimated that the CSA 504 information requires 45,000 cylinders (CYLs) to support the Production environment. |
| 60. Referring to the SOW, page 28, C-4 - System Requirements and Addendum 1, page 12, H-13 Security Requirements – it is stated that all contracts for new acquisitions will require IPv6. What is driving the requirements for the use of Internet Protocol Version 6 (IPv6)? |
| 60. Federal IT security standards. |
| 61. Referring to SOW, page 28, C-4-#3 – System Availability – This section implies that the recovery time objective is 48 hours. What is the recovery point object – or, in other words, what is the tolerance for data lost (eg. 5 minutes, 1 hours, 10 hours, 1 day, etc.)? |
| 61. Zero data loss. |
| 62. Referring to Addendum 1, page C-4-#3 – System Availability, paragraph a. General – It states that a Systems Security Plan (SSP) is required. Is there a specific format required and is there a template that can be provided to the contractor to develop the SSP? |
| 62. Yes, will provide upon award. |
| 63. Referring to Addendum 1, page 12, H-13 Security Requirements – the termination section states that staff is required to surrender any government identification and property. Is there any property that an employee must surrender other than that which is already covered under typical termination policies? |
| 63. In case it is not covered under typical termination policies. |
| 64. Referring to addendum 1, page 12, H-13 Security Requirements and SOW, page 35, C-10 – Miscellaneous Contractual Requirements, is the Computer Security Awareness Training (CSAT) a specific set of government training classes or is it a general term that describes this type of training? |
| 64. This training required by SBA and administered by SBA. |
| 65. Is there a current web hosting provider contract separate from the CSA contract? If so, who is the contractor? If not and if the SBA expects the CSA contractor to subcontract with a web hosting provider, does SBA expect such a subcontract to be negotiated post-offer or to be included with the offer? |
| 65. No. Should be included with the offer. |
| 66. With respect to phase-in, phase-out plans – if a contractor other than the incumbent is awarded this contract, how will SBA ensure that the incumbent will cooperate with regard to the conversion of the system and processes and selected personnel to the successor CSA? |
| 66. SBA will be responsible ensuring compliance with contract. |
| 67. With respect to phase-in, phase-out plans and referring to the SOW, page 30, C-4-#8 - System Development and Implementation – it is indicated that the CSA shall assume responsibility and possession, test, and implement the system upon completion of a 120-day phase-in period. In addition, in Addendum 1, page 22, H – 19 Continuity of Services , addressees the transition of the “to be” awarded contract at its contract expiration with the third paragraph indicating that 50% of the existing loan portfolio, as well as related servicing functions, will be transferred to the successor within the first 60 days of the phase-in-phase-out period. Is SBA expecting the same for the contract award under this solicitation – that is, will the existing CSA transfer the existing system and 50% of the portfolio within 60 days after contract award? If so, this conflicts with the 120-day phase-in period mentions in the SOW, paragraph c-4-#8. Please resolve the conflict. |
| 67. The 120 days is the maximum number of days in the phase out period for the old CSA contractor and 120 days for the new CSA contractor to be fully and independently operational. The 60 day is a timeline to ensure proper transition between the contractors and allow the new CSA to begin receiving income from 50% of the portfolio. Technically the new and the old CSA contractor will be running parallel. |
| 68. With respect to phase-in, phase-out plans, and development and implementation – will the incumbent be participating (eg. run parallel for test and reconciliation purposes) if there is a transition to a new CSA? If so, to what extent will the incumbent be participating? |
| 68. Yes. The incumbent will be participation in the transition and SBA will be responsible for compliance with the contract. |
| 69. With respect to phase-in, phase-out plans, is the SBA looking to make improvements, systems changes, enhancements to the IT infrastructure during the transfer of IT and related components in order to increase performance and efficiency apart from operation workflow tasks? If so, should offerors include an estimate of the their fixed priced costs in the pricing schedule? |
| 69. This is a NO COST contract. It will be up to the vendors to improve performance and efficiency as part of the proposals. |
| 70. With respect to phase-in, phase-out plans, is SBA considering making operational improvements to the IT infrastructure during the transfer process that would impact operational workflow tasks, including reports and reporting? |
| 70. No |
| 71. With respect to fees and pricing, there are certain fees apart from the CSA fee that the current/incumbent CSA receives for management of funds. Are those “certain fees” a part of the CSA contract and what is the dollar value of those “certain fees?” In what circumstances and for which accounts are these additional “certain fees” received by the current/incumbent CSA? |
| 71. The management of funds for the MRA has been added to the pricing table. |
| 72. With respect to fees and pricing, the pricing schedule calls for a monthly servicing fee for each contract period. Are startup costs for offerors to be included in this fee? If so, will SBA consider in its evaluation of price proposals that all offerors, other than the incumbent, are required to incur start-up costs which may make their pricing less competitive than the incumbent’s pricing? Has the SBA considered having these costs broken out separately in the RFP response? |
| 72. NO. SBA owns the CSA system as such it does not believe there would be a competitive advantage in the incumbent pricing. |
| 73. With respect to fees and pricing, and referring to the SOW, page 36, C-10-#5 – Transition – The SOW indicated that “Contractor agrees to cooperate and assist in all transitions required by this contract at no additional cost to the Government.” Does the contract contain budget/funds for this transfer? What portion of the cost is expected to be borne by the awardee? |
| 73. No. The 120 days is the maximum number of days in the phase out period for the old CSA contractor and 120 days for the new CSA contractor to be fully and independently operational. The 60 day is a timeline to ensure proper transition between the contractors and allow the new CSA to begin receiving income from 50% of the portfolio. Technically the new and the old CSA contractor will be running parallel. |
| 74. If a small business were used as a subcontractor by the CSA to support specific CSA duties (for example IT support services), does the small business need to be registered under NAICS code 523991, or may the small business be registered under the code that best aligns with the services it provides |
| 74. The awardee must be registered for the NAICS code used for this acquisition. The Government will not have a contractual relationship with any subcontractor and will not require any NAICS code registration. |
| 75. How was the $200 million bonding requirement determined? |
| 75. This has always been the requirement. It was based on the complexity and risk of the program. |
| 76. Will SBA furnish any and all current/historical reports of the following audit-related reports – SOC 1 Audit, SSAE No. 16, SAS 70 Type II, FISMA, NIST reports? |
| 76. Upon award. |
| 77. Are there any internal IT audit reports SBA can furnish and that offerors should be aware of that are related to the systems requirements, architecture, processing, etc. and that relate to the contract currently in effect? |
| 77. No, all audits are available online on the SBA Inspectors General web page. |
| 78. Referring to the SOW, page 35, C-10-#1 – Security Requirements – will SBA incur the costs related to contractor employee security clearances – either at the beginning or through the term of the contract? Note that Addendum 1, page 15, H-13 Security Requirements, paragraph d. Contractor Background Investigations, indicates that Contractor will reimburse SBA for the cost security clearances, but the SOW is silent on this matter. |
| 78. It was not on the SOW because it was part of the H-13 Clause. CSA will reimburse SBA for the cost of the security clearances. |
| 79. Referring to Addendum 1, page 20, H-14 Participation in Training Programs – can these programs be held electronically via WebEx or similar channel/medium or must the CSA representative be physically present at the location where training is held? |
| 79. There will be some training that will require physical presence and SBA will expect the CSA to be there. |
| 80. Referring to SOW, page 33, C-8-#7 - CSA User Committee - it is mentioned that the CSA shall participate in SBA and User Committee meetings to identify areas where changes can be made to improve the efficiency and effectiveness of the “systems and procedures.” Will SBA consider adding another CLIN for time and materials for this type of additional work that SBA may be contemplating? It is “our experience” that a time and materials CLIN provides the client with great flexibility to enhance and improve operations without the need for cumbersome “equitable adjustment” negotiations. The time and materials CLIN should have a ceiling for each of the base and option periods, with task orders to be negotiated between SBA and the CSA, based on labor rates to be submitted by all offerors. |
| 80. No. This is a NO COST contract. |
| 81. Will SBA be holding a bidders conference for this procurement? |
| 81. No, the SBA will not be holding a bidders conference for this procurement. |
| 82. Referring to Attachment 3 to the SOW, the CSA User Manual – please explain this sentence in more date: “Central Servicing Agent (CSA) Fee. The CSA fee is 0.100%. This fee does not go directly to COLSON since COLSON’s incomes is determined by the CSA contract with the SBA.” |
| 82. The Maximum allow fee for the CSA contract is 0.100%. If the CSA proposal is under the 0.100% the differences is posted to the subsidy rate. |
| 83. Referring to Attachment 3 to the SOW, the CSA User Manual – it states, “Making payments on loans when the loan is accelerated – Colson is currently developing a website module to provide information on loan payments for loans that have been accelerated. Subsequent versions of this manual will contain more information on the new CC Online web features.” Is this CDC Online function being performed today? |
| 83. Yes. |
| 84. Referring to Attachment 3 to the SOW, the CSA User Manual – the CSA User Manual is dated from 2009. Have any additional enhancements been made to the CDC Online website since that time? If so, please provide details. |
| 84. Yes, the above. |
| 85. Referring to Attachment 6 to the SOW, List of Current Reports from CSA – is it expected that all listed reports will be delivered via the same methods currently used – or will they all be delivered via the website in the future? |
| 85. Methods of delivery may change and will be discussed at the time. |
| 86. Are all databases, interfaces, transmissions, IVR’s and reports in place today by the current CSA provider going to be transitioned over to a new CSA, if so awarded? If so, can SBA provide a listing of all databases, interfaces, transmissions, reporting, and IVR’s? If not, does the development of all listing functionality need to be created by the new CSA within 120 days following award? |
| 86. Yes, will be provided upon award. |
| 87. Which requirements within the SOW are enhancements to the existing processes utilized today? |
| 87. No enhancements, some minor changes. |
| 88. Will the current CSA allow for consultation during the transition period of a new CSA receives the award? Will such consultation be allowed at any time after the transition period? |
| 88. Yes, the current CSA will be available for consultation during the transition period for a maximum of 120 days. |
| 89. Does the LAMP system house both the Trust and Loan side of the accounting activities? Can another Trust system be utilized for the accounting activities separate from LAMP? |
| 89. The LAMP is portfolio management information system. The CSA system holds the loan accounting information. Yes, another trust system can be used for the accounting activities. |
| 90. Does the LAMP system handle all loan accounting activities such as interest accrual, late fee charges, servicing fees charges, and such? |
| 90. No. The CSA system does. |
| 91. Is it a correct assumption that when the “trustee” is called out in the SOW that the trustee is not in fact the CSA? Does the trustee function move with to the new CSA, if the a new CSA is the awardee? |
| 91. The CSA is not the trustee and the function will not move to the CSA. |
| 92. Do the CDC’s have to have 1 sign-on access to the Web? Put another way, can the CDC’s have several web accesses to view both the loan side and the Trust side? |
| 92. The CDC currently has a 1 sign-on access to the CSA system. There is no trust data to view. |
| 93. Are all reporting documents in place today coming directly from LAMP or are they coming from another reporting system? If they are coming from another reporting system will that reporting tool be provided to any new CSA or is any new CSA responsible for developing these reports? Are the reports currently being provided standard reports that need to be mirrored by any new CSA or can a new CSA change the information/format in the reports? |
| 93. No. Not all the reporting comes directly from LAMP. Some of the reporting comes from the CSA system that will be transferred to the new contractor. The new CSA can make changes to the system as approved by SBA to improve reports. |
| 94. Please provide a list of permitted investments and/or investment restrictions. Also, please provide average Trust account balances and current investment holdings in the various Trust and DDA accounts. |
| 94. MRA funds are currently invested in obligations of the United States Government and short term repurchase agreements with approved counterparties. These repurchase agreements are 102% collateralized by collateral acceptable to SBA. |
| 95. Is the CSA responsible for any collateral related responsibilities? For example, is there any perfection, maintenance, or release related activities required? If so, what are the reporting requirements for the collateral related responsibilities? |
| 95. No, the CSA is not responsible for collateral related responsibilities. |
| 96. What type of collateral secures these loans? |
| 96. Not applicable |
| 97. Can the collateral be managed through a 3rd party vendor software system? |
| 97. Not applicable |
| 98. Is the CSA responsible for monitoring insurance on the project? If so, what information is required for appropriate monitoring? |
| 98. Not applicable |
| 99. Are there assets secured by the Uniform Commercial Code (UCC) that are taken as collateral for these loans? If so, who is responsible for the continuation of filings along with the expenses? |
| 99. The CDC is responsible. The CSA is not responsible for assets. |
| 100. Who is responsible for documenting and perfecting assumptions? |
| 100. CDC and SBA |
| 101. Is the CSA responsible for the preparation of any legal documentation for the loans the CSA services – such as original promissory notes, collateral documents, and such? |
| 101. No. |
| 102. Is the CSA responsible for obtaining any due diligence reports for the loans its services – such as appraisals, environmental reports, flood certificates, property searches, and such? |
| 102. No. |
| 103. Is the CSA responsible for any post-closing review of original legal documentation for the loans the CSA services? |
| 103. No. |
| 104. Is the CSA responsible for the citing/tracking of any document exceptions for the loans the CSA services? |
| 104. No. |
| 105. Is the CSA responsible for retention/control of collateral/servicing files, or is that maintained by another entity? |
| 105. It’s maintained by SBA. |
| 106. Can an offeror get a tape of all loans relating to this program and all fields associated with all loans? |
| 106. No. |
| 107. How firm is the 120 day system development and implementation period? |
| 107. Firm. |
| 108. Does the existing customer service tracking system currently being utilized get transferred over to any new CSA? Put another way, will any new CSA be required to develop its own customer servicing tracking system? |
| 108. No the customer service tracking system does not get transferred. That is the current CSA’s system. The new CSA will be required to have a customer service tracking system. |
| 109. Is the LAMP system set up to invoice? Does it interact with ACH customers? |
| 109. No, LAMP does not invoice or interact with ACH functions. |
| 110. Referring to the SOW, page 9, C-2A-#5 – Delinquent Loans – does the LAMP system handle all delinquency requirements? |
| 110. LAMP reports portfolio status based on loan status. |
| 111. Referring to the SOW, page 9, C-2A-#5 – Delinquent Loans – does the LAMP system calculate a loan re-amortization? If not, what is utilized today by the current CSA and will that tool that is being utilized by transferred to any new CSA? |
| 111. No, LAMP does not calculate amortization schedules. The CSA system does. |
| 112. Referring to the SOW, page 9, C-2A-#6 - Review of Sale Documents – is LAMP connected to ETRAN now? Put another way, is any new CSA required to build a link? |
| 112. LAMP is not connected to ETRAN. No, a new CSA is not required to built a link. |
| 113. Does the CSA send closing packages to the SBA via image? Is image currently being used? If so, will that imaging platform be transitioned over to any new CSA? If image is not required, what is the means currently being used? |
| 113. The CSA does not send closing documents to SBA. Closing documents are sent to the CSA from the CDC. There is no imaging platform. |
| 114. Referring to the SOW, page 11, C-2B-#2 - 504 Debenture Pool – is the LAMP system currently set up to electronically notify the CSA and fiscal Selling Agent? If not what is the means of electronic notification, such as email? |
| 114. No, LAMP is not currently set up to electronically notify the CSA and fiscal selling agent of the debenture pool. Sent through FTP. |
| 115. Referring to the SOW, page 11, C-2B-#3 - Determination of Fees and Note Payment Amount – is the determination of fees and note payment amounts coming from the LAMP system or does it come from an internally used CSA system? |
| 115. Fees and note payments are determined by the CSA system. |
| 116. Referring to the SOW, page 12, C-2B-#4 - Post-Debenture Tasks – What is the delivery source by the current CSA of post-debenture tasks? If the delivery source is electronic, what is used and will that electronic source (means) be transitioned to any new CSA? |
| 116. The post debenture accounting source is SBA and it can be viewed on the |
| 117. Referring to the SOW, page 12, C-2B-#5 - Loan Amortization Schedules for Debentures – it states that amortizations shall be posted to the secure CSA system. Is this system something the CSA needs to develop or will that system be transitioned to any new CSA? |
| 117. The CSA system will be transferred to the CSA. |
| 118. Referring to the SOW, page 12, C-2B-#6 - Termination of Servicing – Does this refer to something that a CSA will need to develop or is this an existing tool that will be transferred to any new CSA? |
| 118. No development required. |
| 119. Referring to Addendum 1, page 52 – other than the Technical Approach, do any of the other required section (Personnel Approach, Management Approach, Business Approach) have the 12-point font, double-spacing, and one side only paging requirements? |
| 119. Yes – all documents should be in 12-point font and printed on one-side only. However, none of the documents need to be double spaced. Single spacing is acceptable for all documents. |
| 120. Referring to Addendum 1, page 54 - please define “After-Hours Support Plan.” What would SBA like to see as part of that plan? |
| 120. Hours of business required for all time Zones of the USA. |
| 121. Referring to Addendum 1, page 8, H-1 Bonding and Insurance Requirements – it states: “The Central Servicing Agent (CSA) agrees to carry a fidelity bond or similar insurance (“the bond”) in an amount of at least $200 million.” Is that amount for the fidelity bond ($200 Million) accurate, or is it a typo? |
| 121. It is accurate. |
| 122. Referring to Addendum 1, page 52 – The Technical Approach and Personnel Approach are both labeled #2. Are both to be included in the same answer? |
| 122. You have found a typo. The Technical Approach and Personnel Approach are separate volumes. With the re-numbering, there will be 8 parts total. |
| 123. Referring to Addendum 1, page 52 – Does the 12-point and double-spaced requirement apply only to the first item 2, both items 2’s or to all approaches. |
| 123. The 12-point font requirement and printing on a single side apply to all volumes and documents. The double spacing is changed to allow single spacing of all documents. |
| 124. Referring to Addendum 1, page 15, H-13 Security Requirements – The clause indicates that the Contractor will reimburse SBA the total cost for each background investigation and states that the “FY2012 cost is $752.” Does that amount represent the cost of each investigation or the total cost? |
| 124. The amount stated is for each background investigation. The amount stated is the current amount. The awardee will be responsible for reimbursing the SBA for the actual costs of the background investigation and this cost should be built into Contractor’s fully loaded rates. |
| 125. Referring to the SOW – there is a statement that the current system (which is owned by the SBA) was developed by the current CSA and is considered mission critical. Will the SBA consider proposals that include the upgrade and replacement of this system over the term of the contract? |
| 125. This is a NO COST contract and no additional funds will be allocated. SBA will welcome efficiencies in the current CSA system at no additional cost. |
| 126. Referring to the SOW – it mentions ACH (Automated Clearing House) a number of times in conjunction with payments. What percentage of the 503/504 loans are paid via ACH? |
| 126. 96% of payments are debited through ACH. |
| 127. Referring to the SOW – does the borrower or the CSA initiate the ACH payment? |
| 127. The CSA initiates the ACH payment. The ACH authorization is part of the funding documentation. |
| 128. Referring to the SOW, page 3 and Attachment 1 to the SOW, page – there is a conflict between the two documents as to the maximum debenture amount for any one project. The SOW states it is $5 Million and the Attachment 1 (Terms of the 504 Program) indicates that it is $1 Million. Please resolve the difference between the two documents. |
| 128. $5 Million is the maximum debenture amount. |
| 129. Referring to Addendum 3, The Pricing Schedule. There appears to be a discrepancy between the fees included in the pricing matrix and the fees for similar categories of loans in Attachment 3 to the SOW (Central Servicing Agent User Manual) and also in the Servicing Agent Agreement (Attachment 2 to the SOW). Attachments 2 and 3 appear to indicate that there may be .1% (10 basis points) available to the CSA, but the pricing matrix (The Pricing Schedule) includes a substantially smaller fee as available to the CSA. Please clarify. |
| 129. There is a maximum allowable fee to the CSA of 0.100% or 10 basis points. |
130. For the 504 Program portfolio, what is the average of the following:
· Currency Rate
· Delinquency Rate
· Default Rate
· Liquidation Rate
· Loss Rate
130. See question 3.
131. Quote from the RFP - “The CSA software and technical data was developed by the current CSA to meet the needs of the SBA 503/504 Loan Programs and the FMLP, but is the property of the SBA and will be transferred to the Contractor upon a mutually agreed upon timeframe.”
Does this mean the software and hardware will be transferred to the new contractor (new CSA) to be used for processing in the current state? Will the software be validated to verify complete and current versions are distributed?
131. Yes, the CSA system is property of the SBA and will be transferred to the new CSA. Only the software will be transferred to the new CSA. Yes, the software will be validated.
132. System Availability- Is there a known peak time for system usage? Is there a known non-peak but still cannot be in maintenance mode timing for the system usage?
o Example:
Peak - 9AMEST – 6PMEST M-F Non-Peak but still processing - 6AMEST to Midnight EST daily Maintenance - Midnight EST to 6AM EST daily
132. That is correct.
133. Management and improvement of LAMP- Is there any documentation for LAMP as per system diagrams, documents of the software, etc.? Is there a known schedule of changes?
133. No. There are no system diagrams, documentation of the software and there is no known schedule of changes for LAMP.
| 134. C-2, if loans have deficiencies, what is the notification/guarantee claim process |
| 134. During the creation of the debenture process, the CSA will contact CDC. |
| 135. C-2, what is the volume/monthly of non-ACH transactions (# of transactions)? |
| 135. 96% of payments are debited through ACH. |
| 136. C-2, are the debentures physically held by the CSA, or are they a book entry? |
| 136. Yes, the debentures certificates are physically held by the Trustee. |
| 137. C-4-#5 (bullet #5), reference to "maintaining an existing communication link between the CSA and SBA computer systems." Can you provide more detail regarding the communication link? |
| 137. Web service and FTP availability. |
138. C-4-#7, is the web-based system SBA-owned? Is the LAMP system SBA-owned? What is the difference between the two?
138. Yes, the CSA and LAMP System are owned by SBA. See above questions
| 139. C-5-#2, what is the volume of customer service inquiries? |
| 139. Monthly an average of 2,296 inquiries |
140. C-5-#2, what is the volume of physical mailings?
140. Un able to determine. Inquiries come in different forms
141. C-6-#1, does the SBA system that would be managed by the CSA handle the tax reporting described in this section or is this a responsibility of the CSA to complete on its own?
141. All of the data for the borrower interest paid annual statements resides on the CSA System, but the CSA System does not automatically create the annual statements. In other words, there is no automated process for the production of the annual statements.
| 142. Attachment 4, what is the database methodology? Is it a mainframe or PC/Web Environment? |
| 142. All CSA Mainframe data in support of the SBA 504 System resides in a combination of VSAM and Sequential (flat) files. |
| 143. Referring to Clause H – 19, Continuity of Services, when does the 120 days transition period begin? |
| 143. The 120 days transition period begins with the first day of the performance period for the base year – not with the contract award. |
Questions and Answers – Solicitation SBAHQ-12-R-0006 - Central Servicing Agent for the 503/504 Loan Programs Page 31 of 31