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SBAHQ-13-R-0002
Questions and Answers Fiscal Transfer Agent – Secondary Market – SBA-Guaranteed 7(a) Loans
| 1-Reference the Performance-Based Statement of Work (SOW), page 16, C-5. Loan Administration and Reporting, Item I which states, “The Contractor shall implement a solution to enable the loan purchasing process.” Can more information be provided? What is the future vision for this requirement? |
| 1-The SBA envisions working with a Contractor to implement a substantive procedure with IT support that streamlines the loan purchasing process in an efficient, accurate manner, and meets the requirements in the SOW. No additional information is available at this time, other than the details provided in the SOW, which is performance-based. Contractor’s technical proposal should address its solution for performing this work. |
| 2-Reference the SOW, pages 14 – 16, C-5, Loan Administration and Reporting. What is the future vision for this requirement? |
| 2-The SBA envisions working with a Contractor that performs the SOW tasks in an exceptional manner. No additional information is available at this time, other than the details provided in the SOW. Contractor’s technical proposal should address its solution for loan administration and reporting to meet the outlined requirements in the SOW. |
| 3-Does SBA anticipate implementing 800-53 Rev 4? If so, when? |
| 3-The SBA is seeking a Contractor willing and able to work with the SBA in meeting Federal information system security and privacy requirements as they evolve – and in making the necessary underlying investment to accomplish the overall goal of maintaining information in a secure environment that guards the privacy of the concerned parties. Contractor’s technical proposal should address this matter as specifically as possible. |
| 4-Does the SBA have a designated SAOP/CPO (senior organization official) with entity-wide responsibility for information privacy issues? |
| 4-The responsibility for Agency information systems security resides with the SBA Chief Security Information Officer. |
5- Reference the SOW, page 3, C3.Overview, which states, “details the new functionality that the system is expected to provide which includes:
· Eligibility
· Proposal
· Underwriting
· Credit Review
· Closing
· Commitment Packaging
· Document Management” Has the SBA made policy decisions as to what lender population will be targeted to utilize this new functionality? Will it be mandatory for specific program participants? If so, when?
5-The SBA has not made these decisions. The SBA is interested in Contractor’s proposal for meeting these requirements. Contractor should note that this SOW is performance-based, The SBA is interested in how a contractor would propose to meet the requirements of the SOW.
The Contractor should address its vision for functionality in its technical proposal.
| 6-Reference the SOW, page 7, C-4.5, Market Execution of Guaranteed Individual Certificates, which describes the Form 1086 as an “integral part of the secondary market program.” If a conflict exists between the SOW and the SBA Form 1086, which document takes precedent at this time? |
| 6-If a contractor sees a conflict between the SBA Form 1086 and the requirements of the SOW, the contractor should point out these perceived conflicts in its Technical Proposal, along with its recommended solution. The Form 1086 is a securities agreement, and shall have precedence over the task requirements contained in this SOW. Identified conflicts and recommended solutions in contractor’s Technical Proposal will be evaluated by the SBA and will be dealt with on a case-by-case basis upon Contract award. |
| 7-Reference the SOW, page 8, section h, which states “one business day” requirements for contractor actions. However, SOW, page 25, 11.0, PERFORMANCE-BASED CONTRACT ADMINISTRATION, has a 2 business day response requirement for Task 2 and a 1 business day response requirement for Task 3. Are the AQL’s for these two tasks accidentally reversed? Are the AQL’s for these two tasks correct? |
| 7-The AQL for Task 2 refers to Lender and Investor general inquiries. The AQL for Task 2 does not refer to standards for processing payment modification requests on those loans sold in the secondary market. |
The AQL for Task 3 in the SOW performance-based administration table addresses payment processing modifications. This provision of the SOW provides performance metrics for both the delivery of the request to the Registered Holder and the communication back to the Lender.
| 8-Reference the SOW, page 13, C-4.9 The SBA Master Reserve, section h, Transfer of Funds Collected by the Contractor Ultimately Paid to SBA, paragraph v, Secondary Market Guarantee Fee. Does the SBA have immediate plans to institute a secondary market guarantee fee? If so, what are the fee parameters? |
| 8-All permitted fees that Contractor shall be allowed to charge are outlined in the Pricing Schedule. Contractor shall be prepared to develop a fee remittance account system that includes a Secondary Market Guarantee Fee (SMG). This SMG fee inures to the benefit of the SBA. Fee parameters will be provided upon further instruction from SBA after award. Contractor’s Technical Proposal should include this possibility. The Pool Assembler (Investor) would pay any such SMG fee. |
| 9-Reference the SOW, pages 11-13, C-4.9 The SBA Master Reserve Fund. The Annual Service Fee is not listed. However, the SOW, page 16, C-5 Loan Administration and Reporting, q, states that “the contractor shall be required to remit all fees that accompany submitted loan reports and that inure to the SBA as required by the Miscellaneous Receipts Act.” Note also that Attachment J-2, Schedule of SBA Fees Collected by FTA, defines the Annual Service Fee as being bound by the Miscellaneous Receipts Act. Please clarify if the current payout schedule for the Annual Service Fee remains unchanged to afford lenders opportunities to correct monthly loan reports. |
| 9-The Miscellaneous Receipts Act controls this matter. Contractor should propose a system in its technical proposal that allows for corrections and adjustments as necessary, while complying with the Miscellaneous Receipts Act. |
| 10-Reference the SOW, page 14, Section C-5 Loan Administration and Reporting, c, which provides that the full-time staff in place at SBA Headquarters will provide “Representation before government audit and examinations.” Please define the scope of the representation that is to be provided. |
| 10-The setting, nature, and purpose of audits and examinations can vary widely in the Government setting. Contractor should provide in its technical proposal the nature and quality of the support it is prepared to provide the SBA. Contractor should bear in mind that this SOW is performance-based. |
| 11-Reference SOW, page 14, C-5 Loan Administration and Reporting, paragraph c, which provides the functions to be performed by the full-time staff at the SBA headquarters in Washington, D.C. Also reference SOW, page 20, Section 4.0 Deliverables, which defines the full-time staff size and requirements. Is it SBA’s intent that the HQ presence performs operational processing of SBA Form 1502s and loan reconciliations, or rather provides full-time support for SBA Loan Program employees? In addition to the office space, office furniture, and computer equipment, will SBA implement a call center as necessary? |
| 11-The SOW is performance-based. The basic requirements connected to the full-time staff are defined. Any additional resources that the Contractor will provide to perform the work should be identified in its technical proposal. The SBA will not implement a call center. |
12-Reference the SOW, page 15, C-5 Loan Administration and Reporting, e, xix. Reference also the SOW, page 18, C-7 Document Management, paragraph 11. Do these requirements refer to all documents for all loans new and historic, or new loans commencing with a new system?
12-Contractor’s Technical Proposal should propose how it will handle document capture for SBA loans made prior to the award of this contract.
| 13-Reference the SOW, page 17, C-6 Lender Financing and Loan Securitization, C-6.1, c. Can you further define the stated process? Is the Fiscal Transfer Agent (FTA) also required to handle payment processing on the securitized unguaranteed portions? |
| 13-Contractor should detail in its Technical Proposal how it visualizes performing the work. The process is defined from the SBA’s point-of-view in the performance-based SOW. Please refer to the revised Pricing Schedule for fee compensation to the FTA for servicing payment receipt and distribution of interests from securitized SBA loans. |
| 14- Reference SOW, page 17, C-6 Lender Financing and Loan Securitization, C-6.1, d. Please provide the data elements required for the SBA loan pool securitization statements and the desired calculation to compute pool loss experience. |
| 14-The SOW is performance-based. Contractor’s proposal should identify the details necessary for the Contractor to successfully perform this requirement. |
| 15-Reference SOW, page 18, C-7 Document Management, 11, which states, “The System will be scalable to support holding an average size of 500kb per loan at 2000 loans per year.” It is our understanding that this number is small compared to both new loan originations and secondary market settlements. Please identify the source of the “2000 loans per year” estimate. |
| 15-The source of this estimate is SBA management. This SOW is performance-based. Contractor shall provide in its Technical Proposal its best solution for performing the tasks in the SOW. Further clarification will be provided if it becomes available. |
| 16-Reference the SOW, page 18, C-8 Technology, 1. Please define further the relevant accounts SBA is referencing in this requirement. |
| 16-In its proposal, Contractor should define the relevant accounts as it envisions the work. This SOW is performance-based. |
| 17-Reference the SOW, page 19, C-8 Technology, 19 and 21. Please further define the distinction between the processes requiring Level of Assurance 2 or above, and 3 or 4. |
| 17-Using industry standards, the Contractor should spell-out in its technical proposal the highest level of assurances it is capable of providing. |
| 18-Reference the SOW, page 20, 4.0 Deliverables, 1. Define “an electronic payment receipts and disbursements system” and explain how it would specifically interface with SBA’s systems. |
| 18-Contractor’s technical proposal should define and detail the process as contractor envisions it when it performs the required tasks. The SOW is performance-based. The contractor’s proposal should clearly describe its vision of the system solution. |
| 19-Reference the SOW, page 21, 8.0 Security Requirements, 3, which states, “the Government shall assume the cost of all background investigations.” However, in contradiction, it later states in this same section that “SBA policy is to perform background investigations on all such personnel at Contractor’s expense.” Please clarify. |
| 19-The Government will assume the cost of all background investigations – as the policy cannot currently be implemented in an efficient manner. |
| 20-Reference the Contract Clauses, page 12, H-7 Security Requirements, which states that the cost of background checks will be paid by the Government. Is this true? |
| 20-The Government will pay the cost of required security checks for Contractor’s personnel for this Contract. |
| 21-Reference the SOW, page 23, 9.0 PLACE OF PERFORMANCE, 2. Should the provided chart be used just for technology resources? |
| 21-The staff chart in the SOW is removed. |
| 22-Reference the Contract Clauses, page 1, Section A, which references the contract form as SF33. However, Section L references an SF1447, and an SF1447 is attached to the Solicitation. Please clarify. |
| 22-The provided SF1447 should be used with the paper submission. Section A of the Contract Clauses is corrected. |
23-Reference Section L Instructions, Conditions, and Notices to Offerors. The Technical Approach and the Work Plan contain duplicate requirements. Example 1: (1) Technical Approach, “Contractor shall explain how systems will be established for planning and control of all activities” and (2) Work Plan, “Explain how systems will be established for planning and control of all contractual activities.” Example 2: (1) Technical Approach, “Contractor shall explain how contract deliverables will be tracked, and how data exchange will be established to facilitate technical direction and prioritization of work” and (2) Work Plan, “Explain how contract deliverables will be tracked and how data exchange will be established to facilitate technical direction and prioritization of work.”
Is it SBA’s intent that Offeror’s response should be duplicated in multiple sections of the proposal?
23-The SBA does not consider these examples to be duplicative. Contractor should address all requirements as completely as possible in its Technical Proposal.
| 24-Reference CLIN 0001, Pricing Schedule, which identifies that a monthly rebate of the FTA float income is payable to SBA and states that “float income does not include income generated from fees.” CLIN 0001 goes on to state that “the SBA rebate is applied to the Contractor’s total fees for the previous month to determine the amount of the monthly rebate.” In addition, the One-time Application for Pool Formation Fee from CLIN 0003 states that “this fee is not included in the calculations for the SBA Rebate.” Please itemize all income elements that should be affected by the Monthly SBA Rebate. |
| 24-The SBA rebate amount is computed only against float income earned by the contractor. |
| 25-Reference CLIN 0001, Pricing Schedule, which identifies that a monthly rebate of the FTA float income is payable to SBA and that “float income does not include income generated from fees.” However, the SBA rebate pricing chart requires a firm fixed SBA Rebate Amount in U.S. dollars. If income generated from fees is not included in the float income used to calculate the rebate amount, how can a firm fixed dollar amount be calculated without knowing total funds floated each month? Can Offerors respond with a percentage of float income that will be rebated to SBA? |
| 25-Refer to the Revised Pricing Schedule. |
The offered rebate amount should be stated in U.S. dollars.
| 26-Reference CLIN 0002, Pricing Schedule. This CLIN does not list a transfer recording fee for an originator or a re-occurring servicing fee for an originator. Is the Contractor authorized to collect a fee of .02% on Originator strips that are created in the secondary market off of Individual Guaranteed Loan Interests, i.e. strips taken on non-pooled loans? |
| 26-The contractor is limited to charging a recording fee and transfer fee only on the interest-only strips that are derived from pooled loans. |
| 27-Reference CLIN 0002 and CLIN 0003, Pricing Schedule. The maximum value allowed for a re-occurring servicing fee as .0015%. Is that correct, or should it be .15%? |
| 27- The Pricing Schedule is corrected to read .15%. |
| 28-Reference CLIN 0003, Pricing Schedule. The maximum value allowed for a Transfer Recording Fee (for an Originator) is .0002%. Is that correct, or should it be .02%? |
| 28-The Pricing Schedule is corrected to read .02%. |
| 29-Reference CLIN 0003, Pricing Schedule, which lists a Transfer Recording Fee (for an Originator). Would this be more aptly described as “A re-occurring Servicing Fee (for an originator)?” Is Contractor authorized to collect a separate Transfer Recording Fee (for an Originator under CLIN 0002 and CLIN 0003 – or are originator transfers covered under A Transfer Recording Fee (for a Transferee)? |
| 29-The Pricing Schedule is revised to allow these two described fees as follows: |
“The Transfer Recording Fee (for an Originator)” is now renamed “Servicing Fee from Originator Fee Interest.” This fee represents the servicing income that inures to the Contractor for pool loan payment distributions allocated to originator fee interests. It is a reoccurring monthly fee to the extent the originator fee interest remains outstanding.
See revised Pricing Schedule.
| 30-Reference CLIN 0003, Pricing Schedule, which states the following under A Re-occurring Servicing Fee category: “It is understood that the Contractor cannot charge a fee on the Guaranteed Interest in a pool, and also on an individual Guaranteed Interest.” Understanding that a Contractor may not double charge for the same period of services, is the Contractor authorized to retain a different re-occurring servicing fee for CLIN 0002 versus CLIN 0003? |
| 30-Servicing Fees available under CLIN 0002 are applicable only to individual guaranteed interests. |
Servicing Fees available under CLIN 0003 are applicable only with pooled loan interests.
Servicing fee differences may vary and are based on the contractor’s proposal.
| 31-Reference CLIN 0002 and CLIN 0003, Pricing Schedule, which list the maximum value allowed for A Re-occurring Servicing Fee as .0015%. Is this correct or should it for .15%? |
| 31-The Pricing Schedule is revised to .15%. |
| 32-Reference CLIN 0003, Pricing Schedule, which lists the maximum value allowed for a Transfer Recording Fee (for an Originator) as .0002%. Is this correct or should it be .02%? |
| 32-The fee is being renamed to “Servicing Fee from Originator Fee Interest.” The Pricing Schedule is revised to .02%. |
| 33-Reference CLIN 0003, Pricing Schedule, which lists a Transfer Recording Fee (for an Originator) “that is more aptly described as “A re-occurring Servicing Fee (for an Originator).” Is Contractor authorized to collect a separate Transfer Recording Fee (for an Originator) or are Originator transfers covered under A Transfer Recording Fee (for a Transferee)? |
| 33-Please refer to the answer to question 29. |
| 34-Reference CLIN 0003, Pricing Schedule. Under the A re-occurring Servicing Fee category it states: “It is understood that the Contractor cannot charge a fee on the Guaranteed Interest.” Understanding that a contractor may not double charge for the same period of services, is the Contractor authorized to retain a different re-occurring servicing fee for CLIN 0002 versus CLIN 0003? |
| 34-Please refer to the answer to question 30. |
| 35-Referencing the Contract Clauses, are Key Personnel exempt positions? |
| 35-This Contract is subject to the Service Contract Act of 1965. However, usually professional positions are exempt from the associated Wage Determination, if certain criteria are met. |
| 36-Referencing the Contract Clauses, are there any flow down provisions for the subcontractor in addition to the Security Requirements? |
| 36-Yes, a number of the clauses in Section I flow down to subcontractors as well. |
| 37-Referencing the Contract Clauses, Section I, are there any other applicable FAR clauses incorporated by reference? |
| 37-All clauses and provisions that are incorporated by reference are so marked in the Clauses and Provisions. |
| 38-Referencing the Contract Clauses, which is the applicable Wage Determination and for which location? |
| 38-The most current wage determinations can be found at http://www.wdol.gov/ . The determinations that will be applicable for this contract are the determinations for the Washington, DC area, and for any county where the Contractor performs work under this Contract. |
| 39- Referencing the Contract clauses, the Health and Welfare rate increased to $3.81 an hour effective June 19, 2013. Is this increase applicable to this contract? |
| 39-The wage determination in effect at the time of the contract award affects this contract. |
| 40-Referencing the Contract clauses, page 22 and 23, FAR clause 52.222-42 mentions the employee class as General Services, Steps 3-12. Can you please specify the occupational Code and Title applicable as there is no Occupational Title as “General Class.” |
| 40-Greater detail is not available. |
| 41-Reference the Business Approach volume of the Technical Proposal, pages 54 – 56 of the Clauses and Provisions. The tabs are (1) Audited Financial Statements, (2) Description of Costs and Profits, (3) Business Capacity, (4) Financial Disclosures, and (5) Conflict of Interest Disclosures. However, the following text does not match. Please clarify. |
| 41-These pages are revised so that the tabs match the text. Please review this section prior to submitting your offer. |
Refer to revised Clauses and Provisions on tabs to be contained in the Business Approach of the Technical Proposal.
| 42-Is an extension contemplated for the proposal submission. |
| 42-No extension of the proposal due date or time is contemplated. The due date and time are July 24, 2013 at 5 p.m., Mountain Time. |
| 43-Can the NAICS code 523991 that is listed in the announcement be satisfied by a member of a team proposing on the work, rather than the prime? |
| 43-SBA’s legal relationship is with the prime contractor only. SBA expects the prime to have a germane role in performing the tasks defined in the contract. Subcontracting and teaming arrangements are allowed, and will be evaluated as part of the Technical Proposal as stated in Section M of the Clauses and Provisions. |
| 44-Describe the basis by which the contractor begins to earn revenue in the execution of the contract. Does revenue begin to accrue immediately at the start of the period of performance based upon the rates/fees established in the pricing schedule? Does the contractor pay the rebate in the first month of the period of performance, or at some other period? |
| 44-The new contract contemplates a transition from a previous contract that currently handles this work. FTA functions will transfer to the new contract when the new contract has in place the necessary functionality. In addition, previous loans will also transfer to the new contract when the necessary preparatory work is complete. Fees and rebates will not transfer to the new contract immediately upon award. |
45-Provide the following number of actions the current vendor provided in the last fiscal year (related to each item in CLIN 0004 of the Pricing Schedule:
· Document Review and Set-Ups of Related Multi-Party Agreement
· Note Processing
· Transfer Fee from one Financing Group to Another
· Loan Modification Processing and Receipt Generation
· Additional Rate Modification Processing
· Position Activity Report
· Facsimile, Photocopy, or Scanning Processing 45-The SBA does not have these statistics available. In any case, the past may not predict the future for the tasks stated in the SOW, which are driven by the condition and health of the Secondary Market.
| 46-Please provide the total amount in late fees collected by the incumbent vendor in each of the past five Fiscal Years. |
| 46-The SBA is not able to provide this information. |
| 47-Can any fees, beyond those already described in the Pricing Schedule, be charged to any users for SBA One functionality? |
| 47-No. |
| 48-Please provide the average number of servicing related phone calls and the average number of servicing emails received by the FTA on a daily basis. |
| 48-The SBA is not able to provide this information. |
| 49-Please describe SBA’s expectation of ownership of SBA One functionality software and related items – is it outright ownership, unlimited license, or limited license. |
| 49-The SBA will own the IT systems developed by the contractor to perform this contract. Contractor will provide sufficient documentation to support meaningful ownership. |
50-Attachment J was helpful in providing the number and dollar of recent FY secondary market metrics. Can the SBA also provide the following data:
· number of certificate transfers recorded in each of the last five Fiscal Years;
· number and amount of all individual guaranteed interests (guaranteed interest portfolio size) outstanding currently – or as of a recent date;
· number and amount of all pooled guaranteed interest (portfolio size) currently – or as of a recent date;
· number of lenders that submitted 1502 reporting last month – or as of a recent date;
· number of lenders that submitted 1502 reporting through the SBA FTA’s “1502 Connection” service last month – or as of a recent date; and
· number of lenders currently using each component of ETRAN (origination, servicing, post servicing, and GPTS)?
50-The SBA is not able to provide the requested information.
| 51-Will the SBA allow the contractor to engage in offering the 7(a) marketplace additional services, at a cost to those users/customers, for functions that are outside the scope of the contract but can be offered principally because of the unique benefit derived from having access to information/data as the FTA contractor? |
| 51-The SBA would need to approve the various concepts and pricing of any such additional services related to this contract and the 7(a) program. Please include a description of proposed additional services and pricing as an option in the technical proposal. Such optional services and pricing will be evaluated as part of the Technical Proposal. |
| 52-Do any materials for the oral presentation need to be submitted to the SBA at the time of proposal submittal? |
| 52-No. Section L and M of the Solicitation Provisions have been clarified to state that the oral presentation is a possibility, but may be cancelled by the SBA. Award may take place without discussions, negotiations, or oral presentations. |
| 53-Will contractors be required to also submit a Phase-Out Plan as part of the Technical Approach? |
| 53-Yes. Page 50 of the Contract Clauses and Solicitation Provisions states, “Contractor shall discuss its plan for transition at the beginning of the contract and at the end of the contract.” |
| 54-Since the RFP did not provide a Standard Form 33, should the Contractor use a generic one. |
| 54-Use the provided SF-1447. |
| 55-In its proposal can Contractor use smaller font for tables and graphics as long as it is legible. |
| 55-Font that is 12-point is preferred. Each reviewer on the evaluation committee will decide what is readable for that person’s review if the font is smaller than 12-point. However, do not submit text in any format that is smaller than 9-point font. |
| 56-The SOW provides: “The Contractor shall carry and maintain fidelity bond or similar insurance in the form of a standard Financial Institutions Bond Insurance policy or its equivalent. The policy shall provide the SBA with a minimum coverage amount of $250,000,000.” Can this requirement be satisfied with a policy held by the financial institution supporting the contractor’s team? |
| 56-Yes. Contractor’s technical proposal should provide all relevant details. |
| 57-The SOW provides: “(1) At its own expense, Contractor shall engage an independent certified public accountant to perform an opinion audit of its financial statements for each fiscal year. This annual financial audit shall be released to SBA upon issuance by the Contractor’s auditors. (2) At its own expense, Contractor shall also engage an independent certified public accountant to perform periodic SSAE-16 assessments of its fiscal transfer agent options. These reports shall be sent to the SBA immediately, as completed.” If the awardee is a privately held organization that is not otherwise legally required to conduct or disclose such audits, can this requirement be waived? Alternatively, can this requirement be satisfied with other documentation, including but not limited to, the audit reports of the financial institution supporting the contractor’s team. |
| 57-This audit requirement is firm – due to the public and financial nature of this work. |
If the financial institution is a subcontractor of the FTA contractor, then the audit of the financial institution will be a component of the required audit – and will, most likely, be the most important component of the contractor’s audit. Both the prime and any subcontractor are subject to periodic SSAE-16 assessments of their operations.
| 58-As to technology upgrade – in the last five years, what effort has the SBA and the incumbent Fiscal Transfer Agent (FTA) engaged in to upgrade the technology platform underlying payments and reporting, especially around Forms 1502 and 1086? Please include reference to any ongoing work in progress. |
| 58-Contractor should focus only on lender loan reporting processes and references to Forms 1502 and 1086 as contained in the SOW. Contractor must be willing to make the technology investment required to perform the SOW tasks in an exceptional manner. |
| 59-As to technology licensing – many software vendors, including small businesses serving the SBA 7(a) lending space, should be willing to provide an irrevocable license, for a fee, but may be hesitant to grant full ownership rights to their technology to the SBA. Moreover, certain vendors are offering cloud-based solutions which offer use rights that differ from perpetual use rights common with software installed on-premises. What are SBA’s intentions in this regard? |
| 59-Bearing in mind that the SBA will own the developed IT systems supporting this FTA contract at the end of this contract, and that documentation supporting this ownership must be kept current by the contractor and provided to the SBA COR, the contractor should propose a total solution, indicating the ownership rights it is willing and able to provide for the components for its overall solution. |
| 60-As to the Fiscal Transfer Agent Location – with a portion of the FTA team situated in SBA HQ, does SBA have a preference for the location of the remaining FTA employees? Furthermore, does the SBA have a preference for how many total locations the FTA houses its options in? Is the SBA prepared to address any technology connectivity issues that may arise for the FTA’s employees situated with the SBA? |
| 60-Please refer to the SOW tasks and requirements for direction as to where specific functions shall be performed by the Contractor staff. The SBA would like to see all relevant information relating to the contractor’s proposal for performing the work detailed in its Technical Proposal, including proposed locations. The SBA will cooperate on any technology connectivity issues, but the primary responsibility rests with the Contractor and should be addressed in its proposal. |
| 61-As to portfolio growth – is the SBA approaching a limit on the available amount of government guarantee available for use with approved loans? What are the SBA’s expectations for growth of the guaranteed portfolio? |
| 61-The funding for the 7(a) loan program is controlled by Congressional authorization and appropriation. This two-part question cannot be addressed with any certainty at this time. |
| 62-As to software vendors, does the SBA prefer the prime contractor making the offer to enter into a partnership with a software vendor or vendors prior to submitting an offer, or does the SBA prefer the vendors to remain “common carriers,” offering solutions to any winning awardee? |
| 62-Contractor’s Technical Proposal should address in detail its recommendations and vision for performing this work. This SOW is performance-based. |
| 63-As to Know-Your-Customer, what, if any, is the current KYC process performed by the FTA and/or the SBA on 7(a) lenders and 7(a) borrowers? Does the FTA have KYC and/or AML responsibilities? |
| 63-The SBA does not have enough information to answer these questions. |
| 64-As to Lender Performance, does SBA have data on historical payment performance of lenders in paying the servicing fee? If so, please provide the information to assist offerors in the response assessment. |
| 64-This data is not available. |
| 65-As to existing staff, please provide a listing of various processing groups in operations supporting the SBA at the incumbent FTA and the respective headcount for the 7(a) program that the incumbent contractor provides. |
| 65-This SOW is performance-based. Contractor should address such details in its technical proposal. |
| 66-As to current technology, can the SBA provide details regarding the versions of technology being used by the incumbent, including the count of technology components (e.g., number of programs, lines of code, number of jobs, etc.), the data structures and sizes (e.g., databases, files, number of records, storage sizes, etc.) and the number/types/methods of internal and external interfaces? |
| 66-The SBA is unable to provide these details. The SBA is looking for a total solution to its performance-based SOW. |
| 67-Does the SBA have an internal transition plan or a draft of such a plan, in the event that an offeror is selected other than the incumbent FTA? Given the size of the SBA program (lenders and borrowers) and the age of the systems and technology platform of the incumbent FTA, is six months sufficient to transfer the FTA role? Can the SBA describe further the outcome of the transition? Is the outcome simply a move of the existing system from one FTA to the next? Or, does SBA expect to see provision of new capabilities as a deliverable of the transition? |
| 67-Contractor’s transition plan – at both the beginning and end of the contract – should be a part of Contractor’s Technical Proposal. No internal plan or draft of such a plan currently exists. The current contract does require the current contractor to assist and cooperate in any such transition. Contractor’s proposal should detail its vision for the transition. |
| 68-As to document custody, is there a “standard” bi-party document custodian contract/template that all lenders are required to execute with the FTA? Do SBA Lenders currently provide formatted electronic loan data to the FTA/document Custodian, in addition to providing original loan closing documents? |
| 68-Refer to Attachment J-10, Section J, Clauses and Provisions. |
| 69-As to document security – do SBA documents need to be segregated physically in a secure vault? Are there security and safekeeping requirements levied on the FTA/Document Custodian? Can a new FTA assume the current document storage arrangement (e.g. Iron Mountain) and not move the stored/archived documents? |
| 69-The SBA is interested in contractor’s capabilities and recommended solutions related to the general topic of these questions. |
| 70-As to document imaging, is there a subset of core documents that would be required to be imaged and made available? |
| 70-The SBA does not have an answer to this question. The SBA would be interested in contractor’s proposal on this subject as it relates to the tasks and deliverables described in the SOW. |
| 71-As to document management, can you clarify Section C-7, ll (SOW)? It seems to imply that there are only 2,000 7(a) loans issued per year. Is that number correct? It also indicates that data on each loan must only be retained for 7 years. Please clarify as well that the retention is 7 years from loan issuance, or 7 years from loan maturity. |
| 71-The numbers given in this section are a minimum indication only, and do not reflect correct current numbers. |
Each loan shall be retained for 7 years. The current SBA understanding is that retention must be for 7 years from the last transaction date.
| 72-As to collateral review, do the files and documents coming from the incumbent FTA need to be reviewed? If so, at whose expense? |
| 72-Collateral review in the SOW is limited to loans originated after contract award. |
| 73-As to collateral reporting, does the FTA/Document Custodian currently prepare any specific collateral status reports, including document deficiencies and data exceptions identified in the review of the collateral that may require Lender resolutions? Are documents and data standards currently imposed on all SBA Lenders to help make document review and collateral handling processes more efficient? |
| 73-Collateral reporting is not a function of the current FTA contract. |
The SBA does not have an answer to this second question. The SBA would be interested in contractor’s proposal on this subject as it relates to the tasks and deliverables described in the SOW.
| 74-As for Investment Advisor, is there a current investment adviser to the FTA, for any funds held by it? How is the investment adviser compensated – by the FTA or by the SBA directly? Does the FTA have discretion to select an investment advisor for the funds it holds on behalf of the SBA? |
| 74-Refer to the performance-based SOW, C-4.9, page 11, for the answers. |
| 75-As for Proposal Instructions – Section L – sub-tab 3 in the Proposal Instructions Personnel Approach (part 2 of the Technical Proposal) has no overall page limitation, but internal 5-page limits. Please clarify, what is an internal page limit? How many pages may we use for the Personnel Approach? |
| 75-Contractors may use as many pages for the Personnel Approach as needed, but shall limit the parts labeled that have an internal page limit to no more than the number of pages stated. |
| 76-Will existing licenses of any third-party vendor software (e.g., report writing software) be transferable to the awarded Contractor, or should the awarded contractor assume that it must re-acquire licenses of that software? |
| 76-Contractor’s proposed solution should identify the types of software licenses it will need to perform according to the requirements in the SOW. No existing licenses are expected to be transferred. |
| 77-Will the new contractor/contract inherit the responsibility for maintaining existing paper documentation? If so, what is the volume (say, as measured in bankers boxes), current location(s) and expectations as to storage and document maintenance? |
| 77-Contractor’s proposed solution should be contained in its proposal. Storage should be adequate to support a sales function that has been in effect for over 30 years. The SBA is unable to provide the requested information. |
| 78-Can you provide the expectations as to the storage and document maintenance for any hard copy paper created incidental to FTA functions during the term of the upcoming contract? |
| 78-See Answer No. 77. |
| 79-Referring to SOW, 8.0, 7 – please elaborate what is meant by “Solutions shall be sustainable on various infrastructure platforms?” |
| 79-This SOW is performance-based. Contractor should address such details in its Technical Proposal. |
| 80-Can you clarify the tabs in the Business Approach? The first paragraph describing the Business Approach (page 54, clauses and provisions) does not match the tabs indicated in the descriptive paragraph following. |
| 80-See answer no. 41. |
| 81-How long is the Continuity of Services – Transitioning Period with the incumbent contractor? |
| 81-No formal cut-off date currently exists for the transition period. The current contract ends 07/31/2013. A six-month extension is being negotiated. |
| 82-What is the average number of customer service calls received on a monthly basis? |
| 82-The SBA cannot provide this information. |
| 83-The SOW, C.1, states that contractor will develop and implement an electronic loan origination and document management system. Is the contractor responsible for business requirements, design requirements, integrations, unit testing, and user acceptance testing for these systems? |
| 83-The contractor is responsible for developing a total solution to this performance-based SOW. |
| 84-Referring to the SOW, C.1 – will the SBA provide a dedicated team of resources from its business and technology groups to collaborate with the FTA on the development of the electronic loan origination and document management system? |
| 84-A Contracting Officer (CO) and Contracting Officer Representative (COR) will be assigned to this contract. The SBA does not have a “dedicated” team of resources to collaborate. SBA resources will be available, on an as-needed basis – especially for system design development, testing, and implementation reviews. |
| 85-Referring to the SOW, C-1 – is the contractor expected to make on-going enhancements to the electronic loan origination and document management system systems, and if so, can SBA estimate the number of work hours annually expected for enhancements? Will SBA compensate the FTA for significant enhancements due to on-going SOP/program change through the term of the contract? |
| 85-The SBA is unable to provide this estimate. |
No other compensation is foreseen – other than what is provided in the Pricing Schedule.
Contractor’s proposal should focus on system interfaces with SBA’s loan database management system. Please refer to the performance-based SOW, particularly C-3.
| 86-Referring to the SOW, C.1 – to clarify, the Contractor will be responsible for the receipt and recordation of small business borrower payments representing guaranteed interests of SBA loans that been “sold” by lenders in the secondary market only, correct? As it reads currently, it does not indicate sold loans. |
| 86-Incorrect. Please refer to the SOW, C-1, paragraph 2. |
| 87-Referring to the SOW, C-1 and C-3, should these sections also indicate the Contractor’s duties for the collection of loan status information from lenders and the collection of SBA’s ongoing guaranty fee currently processed via SBA Form 1502? |
| 87-Refer to C-5 of this performance-based SOW for direction on contractor responsibilities tied to lender loan reporting and fee remittance. |
| 88-Referring to the SOW, C-3, Figure 1, states that 7(a)/504 Fiscal Transfer Agent collects fees and reports status on bank services 7a/504 loans, should 504 be removed from this box? |
| 88-Yes, the reference to 504 loans is removed in the revised figure 1. |
| 89-Referring to the SOW, C-3, Figure 1, “Loan Lender Monitoring Systems (L/LMS) Lender Portfolio Management Risk Management SAS/MS-Access” – can you provide specimens and/or do they exist currently? |
| 89-No specimens can be provided. |
| 90-The SOW, C-3, implies SBA owns the systems built. Since the Contractor is going to pay for the systems from its revenue from the contract, may the Contractor also retain the systems for its use after the contract expires, as well as transfer a copy of the systems to the SBA? |
| 90-See answer No. 49. At the end of the contract the Contractor will not retain any ownership rights. |
| 91-The SOW, C-4.1, refers to the systems to operate the existing fiscal and transfer agent contract. Will ALL the current FTA systems (mainframe, websites, client-server systems and databases) be available to transfer to the successor Contractor? Can a list and a detailed description of those systems be provided for the purpose of estimating the conversion effort? |
| 91-The existing systems should not be viewed as a resource for the new contract. A list with detailed descriptions cannot be provided. |
| 92-Reference the SOW, C-4.1. Does the SBA currently own the FTA’s systems? In the 2007 RFP, it is indicated that the SBA did not own these systems, and, therefore, the successor contractor would need to negotiate a price for them from the incumbent FTA. However, the RFP went on to say that the systems under the 2007 contract procurement would be owned by SBA, with the exception of the computer hardware. Please clarify, |
| 92-While the SBA does own the current FTA systems, the contractor should not look to past solutions, but rather to the performance-based SOW. The contractor should provide a total and complete response to the tasks and requirements stated in the SOW. See also Attachment J-1, page 2, for the specific definition of “system.” |
| 93-Reference the SOW, C-4.1. What is the expected scope of the “full suite of data analytics?” Will users need to manipulate/customize data and generate reports? |
| 93-These questions should be answered in contractor’s technical proposal, and be responsive to the requirements and tasks outlined in the performance-based SOW. |
| 94-The SOW, C-4.1 states the contractor will have, at the time of contract assumption, a website platform for the full suite of data analytics. Is the contract assumption at the end of the phase-in period – i.e., the system go-live date? Does the incumbent FTA have this website platform available for conversion to the successor to meet this requirement, or is the contractor expected to build and implement this on the system go-live date? |
| 94-The SBA expects the contractor to meet the requirements in C-4.1 at the end of the phase-in period. Contractor should expect to modify and upgrade the existing website platform. |
| 95-Reference the SOW, C-4.1. If the Contractor is to provide the requested investment information, what protections are put in place to limit the Contractor’s liability in the case of investment loss? |
| 95-No protections will be put in place. Contractor will assume liability for any unauthorized release of investment information concerning an investment loss. |
| 96-Reference the SOW, C-4.3. What is the unit cost of re-ordering certificates for individual guaranteed portions, pools, and confirmation of originator fees? |
| 96-The SBA is not able to provide this information. |
| 97-Reference the SOW, C-4.3. What are the printing requirements for certificates – font name, font size, and so forth? |
| 97-The SBA is not able to provide this information. See attachments in Section J of the clauses and provisions for examples. |
| 98-The SOW, C-4.3, mentions “certificates” that need to be prepared, authenticated and delivered. What role will the application play in this? Will the incumbent FTA systems be available for transfer to the successor to produce these certificates? |
| 98-The SBA is unable to provide this information. The SBA will provide the successful contractor further information on this matter upon award. |
| 99-Reference the SOW, C-4.5. Will the FTA’s systems and websites (e.g., Settlements Express and the mainframe) currently operated by the incumbent be available for transfer to the Contractor to perform this function upon completion of the phase-in period? |
| 99-There will be a transition period, but the contractor should not rely on the incumbent’s resources in preparing its technical proposal. The SBA does expect a System transfer during the phase-in/transition period. |
| 100-Reference the SOW, C-4.5(l). Please clarify if the website described in this section is to be delivered within 60 days of contract award or “the plan” for delivery of the website is to be delivered within 60 days of contract award? |
| 100-The performance-based SOW states, “The Contractor shall work with the COR in the phase-in period of this contract on the components of this website, and shall provide all development, testing and implementation of the application as scheduled out by the Contractor to the COR within 60 days of the contract award.” The SBA has no further clarification. |
| 101-Reference the SOW, C-4.5(l). Where is the data for the website coming from? The RFP notes that the contractor has to have a site working within 60 days of contract award. If the data comes from other systems to be converted on a different schedule, how can the contractor meet the 60 day proposed delivery of the website? |
| 101-Contractor should address these matters in its technical proposal to the extent contractor judges the subject matter to be relevant. The SOW is performance-based. |
| 102-Reference the SOW, C-4.5(1). What is the delivery mechanism for monthly sales settlement report – download from a website, online only, emailed? |
| 102-Contractor should address this matter in its technical proposal to the extent contractor judges the subject matter to be relevant. The SOW is performance-based. |
| 103-Reference the SOW, C-4.6. Will the FTA and websites (e.g. PSU Online and Greenbook and the mainframe) currently operated by the incumbent be available for transfer to the Contractor to perform this function upon completion of the phase-in period? |
| 103-See answer no. 99. |
| 104-Reference the SOW, C-4.6(e). Are these reports regarding GIC sale activity currently produced by the FTA’s system and, therefore, available for generation from those systems when the systems are converted to the Contractor? |
| 104-See answer no. 99. |
| 105-Reference the SOW, C-4.6(e). What is the delivery mechanism for listed reports – download from a website, online only, emailed? |
| 105-Contractor should address this matter in its technical proposal. The SOW is performance-based. |
| 106-Reference the SOW, C-4.7. Should the fees in the Pricing Schedule include re-occurring Servicing Fees and Transfer fees for originator fee certificates? |
| 106-See answer no. 29. |
| 107-Reference the SOW, C-4.8(a). Are these reports regarding secondary market pool reporting and data analytics currently produced by the FTA’s web-based system, and, therefore, available for generation from that system when the systems are converted to the Contractor? |
| 107-See answer no. 99. |
| 108-Reference the SOW, C-4(b). Will the FTA’s systems and websites (e.g., LoanList and the mainframe) currently operated by the incumbent be available for transfer to the Contractor to perform this function upon completion of the phase-in period? |
| 108-See answer no. 99. |
| 109-Reference the SOW, C-4.8(b). Where is the data for the website coming from? The RFP notes that the contractor shall have a site working within 60 days of contract award. If the data comes from other systems to be converted on a different schedule, how can the contractor meet the to-day proposed delivery of this website? |
| 109-See answer no. 101. |
| 110-Reference the SOW, C-4.9. Is there an investment policy available for the Master Reserve Fund? What are the permitted investments and duration of the portfolio? Is there a maximum maturity for the different assets classes? |
| 110-There is a policy. These functions are a responsibility of the investment advisor, not of the successful contractor. |
| 111-Reference the SOW, C-4.9. Provide the outstanding balance of the Master Reserve Fund (MRF). |
| 111-The SBA is not able to provide this information. |
| 112-Reference the SOW, C-4.9. Provide an approximate value of inflows to and outflows from the MRF monthly. |
| 112-The SBA is not able to provide this information. |
| 113-Reference the SOW, C-4.9(g). Are the existing FTA systems capable of providing the required level of accounting indicated in the SOW? |
| 113-The contractor’s Technical Proposal should address the required level of accounting indicated in the performance-based SOW for the systems the Contractor proposes. The existing functions in the FTA systems are not relevant for purposes of contractor’s response to the SOW. |
| 114-Reference the SOW, C-4.9(h)(v). Describe what the Secondary Market Guarantee Fee is, and if this fee is currently charges? Is the fee extracted from the flow of funds to pool investors, or is this fee charged separately from the flow of funds? |
| 114-See answer no. 8. |
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