QA_504_RFP_8_13_2014.docx

1. QUESTION - Please confirm that the NAICS code reference to Offices of Certified Public Accountants (541211) is not intended to preclude small businesses with relevant specialized modeling, analytics, and risk management expertise from responding as a prime. Would the Government consider changing the NAICS code on this solicitation to encourage greater competition among other types of small businesses with relevant specialized expertise?

ANSWER – This procurement is set aside for competition among small business concerns. The prime contractor must submit a self-certification that it is a small business concern for the NAICS code assigned to this procurement, which is NAICS code 541211. FIRMS THAT DO NOT HAVE THE NAICS CODE 541211 ARE NOT PRECLUDED FROM PROVIDING A PROPOSAL NOR FROM BEING SELECTED FOR AN AWARD

2. How many awards will be given on this solicitation?

ANSWER – one award will be given on this solicitation.

3. What is geographic distribution of the 265 CDCs?

ANSWER

There is at least 1 CDC in each State. California has the largest number of CDCs nationally with 25 CDCs based in the state, followed by Texas with 20 CDCs, Ohio with 16 CDCs, Georgia with 13 CDCs, Pennsylvania and Missouri each with 11 CDCs, and North Carolina with 10 CDCs. The remaining states have less than 10 CDCs each and the overall average number of CDCs per state is 5. If you look at distribution of CDCs by East versus West (“East” defined as SBA Regions 1-5 and “West” defined as SBA Regions 6-10), the East region has approximately 46% of the CDCs and the West region has approximately 54% of the CDCs.

4. Without a definition of how hours or more specific definitions of the services to be provided, how will SBA be able to evaluate the reasonability of the pricing provided?

ANSWER

Please see the Solicitation for clarification on proposed pricing. SBA will determine whether the proposed pricing is reasonable based on a comparison with its Independent Government Cost Estimate 5a. What will SBA do if the selected Contractor says its pricing for a specific type of assistance reflected certain assumptions which are different from those of SBA and are not clearly laid out in the RFP?

ANSWER

Typically assumptions are not taken into consideration when making an award. Award is based on a best value determination and realism compared to the competition, government independent cost estimate and other variables.

5b. One contractor could have much higher hourly rates but submit a low bid based on assumptions reflecting very limited requirements of what would be required while another contractor with lower hourly rates could submit a higher price for a CLIN assuming a higher level of requirements.

Typically, assumptions are not taken into consideration when making an award. Award is based on a best value determination and realism compared to the competition, government independent cost estimate and other variables.

5c. What happens when SBA then issues a task order with much more explicit and time consuming requirements that were not clear in the RFP? Is the SBA required to use the Contractor with the higher hourly rates? Does this not encourage unreasonably low bids that in fact do not reflect the likely price of the assistance to be provided?

ANSWER

SBA has requested either per unit pricing or fixed labor rates and categories for all of the tasks listed in the IDIQ contract. Offerors are required to submit their proposal for the first task order along with their proposal for the IDIQ contract. For tasks based on labor/hour pricing, SBA will negotiate a fixed price level of effort based on the proposed labor categories and rates included with the vendor’s IDIQ proposal.

6. Please clarify what work SBA expects to be done using SBA facilities and equipment and if it must be done at SBA’s offices in Washington, DC. Please clarify what security clearances will be needed and how long it typically takes SBA to process those clearances. Will SBA adjust its schedule of deliverables to incorporate a reasonable amount of time to obtain those clearances?

ANSWER

Upon award of the Contract and Task Order, items in Task 1 will be performed on site at SBA facilities.

In addition, the production of the Lender Profile Assessments (aka CDC Profile Assessments) will be done using SBA facilities. Other Tasks and necessary meetings will require primarily Contractor Facilities for performance; however some lender reviews, Technical Assistance, as well as necessary conduct and attendance at meetings will require attendance at the SBA facilities. This contract will involve routine interface between Contractor and SBA personnel.

Standard Clearances for Public Trust level engagements will be needed and these typically take 30 to 60 days to complete. SBA may adjust its deliverables schedule in some cases to allow these clearances to be obtained.

7. Many of the deliverables required within the first 30 days following contract award would appear to require access to SBA data yet security clearance is needed to access those systems. Is this same level of clearance needed to access SBA data as to access SBA systems? If so, can SBA provide some expected time for obtaining those clearances? If data can be provided without a security clearance, please describe how that information will be made available. Presumably, the data will be needed to proceed with any PAR, PTR, or PFR reviews. Will SBA adjust its deliverable dates to reflect the time required to obtain security clearances?

ANSWER

Standard Clearances for Public Trust level engagements will be needed and these typically take 30 to 60 days to complete. This is the same level of clearance needed to access SBA data as to access SBA Systems. SBA can provide some CDC data without a completion of the background investigation when that information does not contain Personally Identifiable Information (PII) or Business Indentifiable Information (BII). SBA may adjust its deliverables schedule in some cases to allow these clearances to be obtained.

8. 7.0 How quickly can Contractor employees be expected to obtain clearance? It appears that there are several tasks that must be done in the first 30 days of the contract or less that require access to SBA’s systems, or at least to SBA generated information. How will task due date deadlines be affected by the time it requires for clearances to be obtained?

ANSWER

Standard Clearances for Public Trust level engagements will be needed and these typically take 30 to 60 days to complete. SBA may adjust its deliverables schedule in some cases to allow these clearances to be obtained.

9. 7.0 Could more than 3 people be approved and cleared to work in SBA offices to provide for cross-training and/or backup functions to be performed there?

ANSWER

Yes, more than 3 people may be approved and cleared to work in SBA offices in order to provide for cross-training and/or backup functions. However, due to space limitations, we will only be able to accommodate 3 persons working in SBA offices at any one date in time. Also, for consistency purposes, the ideal proposal would be able to avoid excessive rotation of staff which might reduce the efficiency of the 504 Oversight Team due to staff resources possibly being diverted to training of new contractor staff.

10. 8.3 First paragraph QCP/QAP says Draft is due at post award meeting or 10 days after award and Final is due 30 days after post award conference. However, Deliverable on next page says Draft is due with proposal and Final is due 7 days after post award conference – Which is it?

ANSWER

Deliverable should read “draft is due at post award or 10 days after award and Final is due 30 days after post award conference.” See paragraph 7 in the Amended RFP.

11. 9.1 Deliverable - When will SBA provide Contractor with a list of CDCs with Delegated Authorities requiring review on a monthly basis (i.e. how soon before 3 months in advance of Delegated Authority expiration date?)

ANSWER

This information will be provided on or about the time of the post-award meeting.

12 9.1 “The Contractor shall perform a SMART Delegated-CDC Authority portfolio review and analysis of all CDCs with delegated authority” Is this simply determining the expiration dates of delegated authority status?

ANSWER

No. This is completing the analysis associated with the decision regarding the CDC’s delegated authority renewal request.

13. 9.1 There are no metrics related to the “technical assistance” to be provided for the tasks related to each of the three bullet points. How will SBA be able to evaluate the Contractor’s ability to provide this “technical assistance” at a price level that is appropriate for the level of expertise that is required?

Technical assistance requires multiple tasks be performed that include the bullets listed in in paragraph 9.0. This paragraph has been amended to include additional details and task that will or maybe required to accomplish this task over the period of performance. The offeror’s proposal should include the labor categories and hours estimated to accomplish this work. This will be reviewed to determine if the offeror understands the requirement as detailed in the PWS. The offerors proposal should detail how they came up calculated their monthly price. Technical assistance should reflect discussion and coordination with the key personnel and project management team. Cost for advisory and technical assistance may be allocated in the CLIN monthly cost and/or imputed across the fixed cost items. SBA wishes to be able to consult, meet with and converse on aspects of performance, improvement of, efficiencies and conduct of the engagement with the Contractor to assure best practice execution and value to the SBA.

14. 9.2. Task 1: Technical Assistance – CLINS 0001, etc. – Many of the tasks in this section are very vaguely defined as to the likely scope. In fact, the second line for Task 1 says, “The tasks shall include at a minimum:” which by definition means SBA can require almost anything of the Contractor. How will SBA be able to compare the different proposals it receives when they could be based on significantly different assumptions about the extent of this work?

SBA has defined the type of work it anticipates as part of Task 1 in the amended solicitation. SBA intends to evaluate the proposals in accordance with the evaluation information provided in the solicitation.

15. 9.2 Task 1A – Section on Delegated Lender Authority Review Assessments contains the language, “to include but not limited to” which is leaves the Contractor with an open-ended, undefined level of responsibility. What are some of the other potential research items that might be required? Please provide a more detailed description of all the requirements the Contractor is expected to meet in providing one of the Assessments.

ANSWER

It is anticipated that the offeror has read the relevant SBA regulations and SOPs to be familiar with SBA processes and procedures for delegated lending. Please see the amended solicitation for more information on the work expected under Task 1A.

16. 9.1 1.B: Delegated and non-delegated CDC Oversight Technical Assistance – Virtually every one of the tasks listed could require anywhere from 10 to 50 hours per month or require hundreds of hours on a one time basis. How will SBA evaluate the quality and reasonability of the Contractor’s ability to provide this assistance? And, what assurance does the Contractor have that this is not an open-ended requirement with no limit on what can be requested of the Contractor?

ANSWER

SBA will evaluate proposals received in accordance with the evaluation information contained in the amended solicitation.

17. 9.2 Task 2 – SAR Reviews (CLIN 0002, etc.,) – The Contractor is supposed to provide a draft PAR review within 2 days of receipt of a work order from the Technical Monitor. Does the SBA already have the lender’s latest strategic plan and organizational chart, latest policies and procedures, latest audits, and latest independent loan reviews? If not, it seems highly unlikely for the Contractor to be able to obtain these documents within 2 days, much less read them and incorporate their content into a full and meaningful narrative.

This section also mentions reviewing information from the lender’s files. What information would be expected to be reviewed? How many files? This process would also seem to be highly likely to require more than 2 days to complete.

Does the SBA really expect the SAR reviews to be completed within 2 days of receiving the work order from the Technical Monitor?

ANSWER–

A Lender Profile Assessment (LPA) (aka CDC Profile Assessment) is provided in all cases. The Contractor will have two days from the work (order) assignment from the Technical Monitor to populate, analyze and complete the LPA (aka CDC Profile Assessment) and a SAR work plan. Within two weeks from receipt of the work (order) assignment the Contractor must prepare the Draft SMART Analytical Review Report and Risk Assessment Cover Letter with a (draft) Risk Assessment Memorandum if required for referral for a target or full risk-based review and deliver it to the Technical Monitor via a designated Virtual Data Room. The Contractor must also prepare and include with the Draft SMART Analytical Review Report an Executive Summary that must include all identifying findings, weaknesses, corrective actions, and recommendations.

18. How often does SBA expect supplemental SAR reports to be required? Are supplemental SAR reports subject to additional compensation, e.g., if SBA requests a supplemental SAR report is the Contractor allowed to bill it as a separate SAR report?

ANSWER

ANSWER - SBA cannot at this time estimate how many supplement SAR reports will be required. These will be issued via a separate Task Order. Yes, the Contractor may bill a supplemental SAR report as a separate SAR report.

19. Exactly what public federal regulatory information is the Contractor expected to retrieve and evaluate?

ANSWER

The vast majority of CDCs have non-profit status with the Internal Revenue Service (IRS) and most of those CDCs are required to file a Form 990 with the IRS annually. The public can access Form 990s filed by CDCs via free subscription services from firms such as “The Foundation Center” and “GuideStar”. In addition to the Form 990s for most CDCs, all CDCs are required to submit Annual Reports to the SBA within 180 days after the end of their fiscal year. Most CDCs are required to included audited financial statements as part of their Annual Report submission (any CDC with $20 million in 504 loans outstanding must have their financial statements audited). SBA intends to provide the contractor with access to these Annual Report filings.

20. 9.2 Who determines which CDCs will get SMART reviews? For staff planning purposes, will there be advance notice to Contractor to assign SAR prior to work order assignment?

ANSWER

SBA will consult with Contractor regarding composition of review schedule. However, it is SBA that has the ultimate responsibility for selecting which CDCs receive a SMART review. For staff planning purposes, SBA will prepare an annual work plan; however, that plan is subject to change and not considered the final product regarding required work assignments.

21. 9.3 Who prepares the loan sampling plan referred to in deliverable? 30 days seems short if review requires travel (particularly to take advantage of 2 week advance purchase airfares).

ANSWER

The Contractor will prepare the loan sample, based on the SBA-approved Pre Review Plan. Section 9.3 states that the Contractor will have 30 days from the scheduled review start date to complete and prepare a Draft STR for submission to the TM for review.

22. 9.3 Task 3 – SMART Targeted Review (CLIN 0003, etc.) – How many benchmarks are expected to be reviewed for each STR? These factors will greatly impact the pricing related to this CLIN.

ANSWER

Presently, there are 12 metrics that are being “benchmarked” in the SMART protocol. SBA, in consultation with the contractor, would decide which of the SMART components (Solvency, Management and Board Governance, Asset Quality and Servicing, Regulatory Compliance, and Technical Issues and Mission) related to these failing benchmarks might require further review through a STR. SBA would not expect to utilize a STR in cases when a particular CDC fails a significant number of its benchmarks. In such cases, it might be more appropriate to conduct a SMART Full Review.

23. 9.4 Task 4 – SMART Full Review (CLIN 0004, etc.) – How many elements are there in a standard Full Review? Are there adjustments made in compensation if Lender is not able to provide required loan files or other documentation while Contractor is on site and is incurring cost for personnel on site?

ANSWER

Exhibit 2 to the RFP is a template which is intended to be used for SMART Full Reviews. The template includes the various items that should be covered in the SMART Full Review. In addition, the SMART Full Review will typically address all of the benchmark elements. It will require the Contractor to establish a loan sample, and a Pre Plan to outline the Review program. It will include a site visitation, but not necessarily or solely for loan reviews (SBA prefers the use of Virtual Data Room), but and/or for management and personnel interviews, process and internal controls reviews. Typically a full review may include, but is not necessarily limited to the review of 60 files. 30 of these files are reviewed by SBA field counsel and SBA servicing center staff who participate with contractor staff during the SMART Full Review. SBA field counsel and SBA servicing center staff will provide the contractor with a write-up on their loan-specific findings to be incorporated by the contractor into the SMART Full Review Report.

Yes, there may be provision for additional files to be reviewed or follow up documentation. However, utilizing the Virtual Data Room, the Contractor should be requesting information to be uploaded and reviewed prior to the site visit, to be as efficient as possible. In the event a lender is unresponsive, unprepared or untimely, the design of this Contract provides for additional CLIN Tasks including for additional loan reviews.

The Contractor will have 30 to 45 days from the scheduled review start date to complete and prepare a Draft Full Review Report for submission to the TM. The final Full Review Report will be due 5 days after receipt of comments from the TM. Typically, delivery of a Full Review Report should not exceed 60 days.

24. 9.5 Task 5 – Specialty Review (CLIN 0005, etc.) – The pricing for a Specialty Review is set as a fixed fee but the potential scope of work is extremely broad. The “fraud and forensic accounting analysis” that may be required could be very costly. How will SBA evaluate the pricing it receives for this CLIN since it involves a very large number of subjective assumptions? Please provide more requirements (details) for a Specialty Review.

ANSWER

This is to be priced at a level of effort based on labor categories – this is stated in attachment 1 (Pricing Sheet).

25. 9.6 Task 6 – Partial Loan File Review (CLIN 0006, etc.) –Should the Contractor assume these will be virtual review or will they require on-site effort? Contractor personnel who are traveling are not available to perform other functions so it may be helpful to develop two cost levels for on-site and virtual reviews. Are these only used in conjunction with SAR, STR, and SFT reviews? For Tasks 5-9, are there any formats available for reports to be delivered?

ANSWER

SBA anticipates that the majority of the partial loan file review work will be conducted virtually. The primary factor that would affect the location of the file review work is the CDC’s ability to provide SBA with complete electronic loan records. SBA will not accept two cost levels for on-site and virtual partial loan file review work. SBA will, however, reimburse contractor for any travel expenses (must be in compliance with Federal travel rules) associated with contractor travel to the CDC’s place of business for any file review.

26. 9.7 Task 7: Full Loan File Review (Ad Hoc) (CLIN 0007, etc.) – Should the Contractor assume that the reviews will be virtual or on-site? How many Full Loan File Reviews – Ad Hoc are expected to be performed annually?

ANSWER

SBA anticipates that the majority of Full Loan File Reviews will be conducted virtually. The primary factor that would affect the location of the file review work is the CDC’s ability to provide SBA with complete electronic loan records.

27. 9.8 Task 8: How many reviews are expected to be performed annually for Task #8?

ANSWER

We anticipate that most reviews under Task 8 would be associated with reviews being conducted under Task 2 (SMART Analytical Reviews). That being said, we anticipate the need for 5 to 15 reviews under Task #8 annually.

28. 9.9 Task 9: How many reviews are expected to be performed annually for Task #9? (Agreed upon procedures)

ANSWER

See pricing sheet – quantity of reviews will be determined as needed.

29. 9.9 Task 9: Agreed Upon Procedures Review (CLIN 0009, etc.) – What type of audit/assessment submitted by the lender is the Contractor expected to review? How much will the level of work vary with the size of the lender? What is the average size of the lender to be reviewed? What metrics should the Contractor use in determining how much work is likely to be required on an average basis since this is a fixed fee for each AUP?

ANSWER

The median CDC portfolio size is approximately $38 million. There are approximately 30 CDCs with 504 loan portfolios in excess of $300 million and those large CDCs skew the average CDC portfolio size, which is approximately $97 million. We have not estimated the average size of the lenders to be reviewed under Task 9. This information is not available at the IDIQ level -- it will be made available at the task order level.

30. 9.10 Task 10: Can the SBA provide a complete description of the existing systems other than those listed that need to be integrated into the MWTS?

Please see section 9.10 of the solicitation.

31. Does Task 10 also include the development of the Virtual Data Room capabilities required by the proposal? If not, where should these costs be included in the Contractor’s pricing?

SBA does not seek the development of a virtual data room.

32. 9.10 Task 10C: Corrective Actions Tracking System (CATS) – Is this the correct deliverable for this item? If not, can you please provide the correct Deliverable?

ANSWER

Please see section9.10 of the amended solicitation. Access is expected to a CATS, DLAMS, and PDMS providing the functionalities and capabilities described in the amended solicitation.

33. 9.11 There is no Item 9.11 in the proposal. Is it correct that this is a typo since there is no gap in the numbering of the tasks?

ANSWER

There is no typo – the RFP states that 9.11 is “intentionally left blank”.

34. 9.13 Task 12: Biannual Analysis of the Oversight Program and Process (CLIN 0012, etc.) – Does Biannual mean Semi-annual, or twice per year for this task?

ANSWER

Biannual means twice per year.

35. 9.14 Please differentiate between random and objective sampling

ANSWER

A random sample is a subset of a statistical population in which each member of the subset has an equal probability of being selected. An objective sample takes a random sample from specific sub-groups.

36. 9.14 Task 13D – Weekly/Monthly Report - “provide…on all Regulated Institutions that have been reviewed.” Is this reviewed since inception of contract, last 12 months, and last 6 months? Please clarify.

Please refer to 13D in Solicitation. No further clarification necessary.

37. 9.17 Task 16: Asset Marketing Advisory and Due Diligence Services (CLIN 0014, etc.) – Is this requirement intended to procure technical advice on asset marketing and due diligence services or to acquire actual asset marketing and due diligence services including due diligence, imaging and indexing, valuation, pooling and assistance in asset sales? Is an internet marketing the only type of marketing tool for which technical advice is to be supplied? Does the contractor have to provide an internet marketing platform? If details of the required technical assistance are to be provided at task order level, how can a Contractor provide meaningful pricing for this CLIN without knowing what exactly is required?

ANSWER

Additional details will be provided at the task order level. Pricing will be based on labor categories in award IDIQ contract levels of effort will be defined in individual task orders. See RFP Amendment.

38. 9.18 Task 17: Enforcement Support, etc. (CLIN 0015, etc.) – Our firm has assisted SBA on 504 enforcement matters in the past and FDIC on bank takeovers and assisted Ginnie Mae is taking over failed issuers. We are extremely knowledgeable about the potential range of time, cost, and expertise needed to provide the services requested. Can SBA provide some sort of metrics for how many hours of assistance might be needed? Otherwise, how will SBA be able to measure the credibility of the pricing provided?

ANSWER

Additional details will be provided at the task order level. Pricing will be based on labor categories in award IDIQ contract levels of effort will be defined in individual task orders. See RFP Amendment.

39. 16. Place of Performance – SBA says the Contractor shall have a full-time working staff presence at SBA headquarters and a local Washington, DC office. Will any SBA data be allowed to be accessible at the Local Washington, DC office of the awardee? What does it mean the Contractor may be allowed to telework periodically in Kansas City, MO and Citrus Heights, CA? If the Contractor had full time reviewers located in MO or CA would they be allowed to work at the SBA offices at those sites on a full-time basis?

ANSWER

Please see Paragraph 16 of original RFP states place of performance.

40. TASK ORDER 0001 -The Solicitation requires the development of numerous systems, processes, capabilities, etc. Generally, the cost of these items would be expected to be amortized over a much larger number of reviews and other deliverables. There are fully understandable large up front, hopefully one-time costs for developing the capability of integrating various data sources into a project database; developing acceptable report formats; creating work paper and other document retention protocols; and the capability to provide other deliverables. Does the SBA expect the Contractor to include all such start up pricing in CLIN 0001 for Task Order 0001? Or, should the pricing reflect the volume of work and full range of tasks expected to be delivered under an ongoing long term contract (always subject to performing well)?

ANSWER

Please see revised section 6 of Part II of the amended solicitation.

41. Proposed volume of work in Task 0001 is less than full ongoing work load is projected to be. Therefore, the project management costs such as allocation of project manager and other senior staff time; higher hourly rates for professional staff for a project with a limited duration and scope; and other costs will be skewed by limited scope of Task 0001. Should Contractor price the reviews as a stand-alone project or provide rates reflective of a long term project (of course, always subject to providing a quality work product on time)?

ANSWER

Please see revised section 6 of Part II of the amended solicitation.

42. What is the proposed schedule for completing the reviews listed in Task Order 0001? What is the start date and when is the completion date?

ANSWER

The period of performance for Task Order 0001 is twelve months from award.

43. Should the cost of Task 10, the one- time MTWS integration and development process, be included in the CLIN 0001 section of the pricing for Task Order 0001?

ANSWER

See pricing sheet and CLIN 0010 in both the original & amended RFP and Task Order 0001.

44. 9.1 Task 1A: The variability between 30 and 80 reviews annually is a significant factor in terms of pricing Task 1 on an annual basis. Can you refine this number or will SBA provide funding for each lender for which Technical Assistance is provided over a maximum?

ANSWER

At this time, we are unable to provide additional refinement of quantity of annual reviews.

45. Is all of Exhibit 1 considered an LPA or is an LPA a subset of the information in Exhibit 1? If it is a subset, then what portion of Exhibit 1 constitutes an LPA?

ANSWER – Yes, Exhibit 1 is considered an LPA.

46. On page 15 of the Solicitation, the second item is Data Analysis-Regulatory. Is Financial Ability to Operate a subjective decision to be made by the Contractor or are there set benchmarks to be used in this analysis? In the same section, what are the Financial Indicators to be reviewed?

ANSWER – there are 3 metrics that SBA is benchmarking under the Solvency section of SMART. Solvency is tied to a CDC’s financial ability to operate (this is also related to Regulatory Compliance as CDC’s are required to have the financial ability to operate). The 3 metrics being benchmarked for Solvency are: 1) 12 month default rate, 2) 5 year default rate, and 3) 5 year net cumulative yield. In addition to these three metrics, we expect the contractor to analyze the CDC’s overall financial condition by analyzing the CDC’s financial statements and 504 loan portfolio (considering the CDC’s net asset position, change in net asset position, working capital). Some qualitative factors that go into the assessment of a CDC’s solvency are reserves for future operations and liquidity risk. 47.

On page 15 under SMART Delegated – Lender CDC Authority Renewal CDC Portfolio Analysis, the third paragraph states, “Much of the Data . . .” Which Data components are not available through SBA data and systems or through SBA access to CDC regulatory and financial information?

ANSWER

This information will be provided at time of award.

48. On page 15, the last item begins “-Entering select financial and operational information from each CDC’s Annual Report into a database…” What information is to be entered into the database?

ANSWER

There are approximately 100 data elements from the CDC’s Annual Report and Form 990 that must be entered into the database for each CDC.

49. On page 16, the Contractor is asked to assist with a wide range of items, and we understand that many of the items listed are asking for process and overall program technical assistance which are understandably difficult to quantify. However, can you provide more specific direction as to the quantity or level of effort expected for those tasks involving individual institutions such as the analysis of and evaluation of CDC financial statements and annual reports; preparation of individual CDC Profile Assessments, etc.?

ANSWER – See answer to question #48.

50. 9.2 Task 2: SMART Analytical Review. Under the Deliverable section, the Contractor is required to provide an LPA and a SAR work plan in 2 days. Is the LPA is expected to include information not available in SBA data sources that requires outreach to the Lender to obtain? Exhibit 1 appears to indicate an LPA (called a CDC Profile Assessment in the Exhibit 1 material but called an LPA elsewhere in the Solicitation) requires a great deal of outreach and analysis that would be very difficult to complete in 2 days. Please be more explicit about what is required within 2 days as the deliverable under this task.

ANSWER

A Lender Profile Assessment (aka CDC Profile Assessment) is provided in all cases. The Contractor will have two days from the work (order) assignment from the Technical Monitor to populate, analyze and complete the LPA and a SAR work plan. Within two weeks from receipt of the work (order) assignment the Contractor must prepare the Draft SMART Analytical Review Report and Risk Assessment Cover Letter with a (draft) Risk Assessment Memorandum if required for referral for a target or full risk based review and deliver it to the Technical Monitor via a designated Virtual Data Room. The Contractor must also prepare and include with the Draft SMART Analytical Review Report an Executive Summary that must include all identifying findings, weaknesses, corrective actions, and recommendations.

The list of Deliverables on page 52 of the Solicitation appears to be mis-matched for Task 10 in Section 9.0. Please provide an adjusted chart of Deliverables ANSWER: ITEMS ADJUSTED IN THE CHART OF DELIVERABLES ARE LISTED BELOW IN TRACK CHANGE MODE:.

9.7

9.8

9.8

9.9 The draft within twenty (20) days from the issuance of the Risk Assessment Memo.

The final - within (5) days of comments from COR or TM

COR, TM, CO

9.10

How many different sources of information will the Contractor are expected to incorporate into its work?

There are numerous sources of information that must be incorporated into the contractor’s work. Most of these information sources are referenced in the RFP. The sources of information include, but are not limited to, information that is contained in the CDC’s Annual Report, data that is provided to SBA by the SBA’s Central Servicing Agent which collects 504 borrower payments on a monthly basis, information from SBA’s Commercial Loan Processing Center, SBA’s Commercial Loan Servicing Centers, SBA District Offices (including from SBA field counsel), from SBA’s Office of Financial Assistance, SBA’s Office of General Counsel, and SBA’s Office of Credit Risk Management. In addition, certain review work will require the contractor to utilize CDC-provided information which may be obtained prior to review work by SBA’s Office of Credit Risk Management or other CDC-provided information that will be obtained directly from CDCs by the contractor.

51. Can you please list all the SBA systems with which the Contractor is expected to deal while compiling information needed to carry out its duties under this contract?

ANSWER

SBA expects that the contractor will utilize SBA’ Partner Information System (PIMS), which contains delegated authority, LEA and Multi-State authorities. Contract personnel will also access SBA computer folders which contain copies of previous CDC Risk Based Review Reports and copies of CDC Annual Reports. SBA expects that contractor will utilize SBA’s Loan and Lender Monitoring System in order to obtain loan-level detail on CDC portfolios. Contractors may also access other SBA information systems in order to provide services under this contract.

52. Can you describe the frequency with which those systems will need to be accessed on a regular basis?

ANSWER

Unable to provide this information at this time.

53. On page 23 of the Solicitation, the Deliverable section under Task 10C does not seem to fit there? Is that the correct deliverable for that item?

ANSWER

Correct, rather than state “The Draft Security Plan”, the Deliverable under Task 10A, 10B, and 10C should read “Management and Tracking System Plan is due 30 days after post award. Final Management and Tracking System plan is due ten days after receipt of edits from the COR. All of the systems should be in place within 30 days of contract award.”

54. Does SBA have a breakdown of the primary collateral types for 504 loans, e.g., how many are real estate?

ANSWER - 504 loan proceeds are limited to financing fixed assets such as commercial real estate or equipment. The primary collateral under the 504 program is a second lien on commercial real estate and/or equipment/fixtures, behind the lien held by the Third Party Lender. The majority of 504 loans are for real estate construction or acquisition, so those loans must be secured with commercial real estate.

55. Could the QC Plan and Transition In/Out Plans be excluded from the page count in Part I? Alternatively, could the page count be increased from 45 to 65 pages?

ANSWER - No.

56. P. 29 and 30 RFP, regarding Tasks 15, 16, 17, 20, and 22: are these to be priced by providing labor categories and rates? These are not shown on the matrix included in Attachment 1. If these are to be priced with labor categories and rates, does SBA have a preferred format for this information?

ANSWER

This is corrected on Amended RFP.

56. Can Offeror add additional labor categories besides the key ones identified by SBA?

ANSWER - Yes

57. How many anticipated users are estimated to utilize the Workflow and Tracking Systems, including SBA personnel and lenders?

ANSWER

Approximately six SBA personnel in addition to the number of CDCs receiving onsite and offsite reviews each year (including ALP & PCLP Delegated Authority Reviews), which is estimated to range from 70 to 175 CDCs. Any contractors accessing the Workflow and Tracking system would be in addition to that number.

58. Regarding p. 12, “Contractor shall implement a workpaper retention client management service. The Contractor must ensure that SBA has access to all workpapers even when this contract has ended.”: Is it acceptable to provide SBA electronic files at the conclusion of the contract of all of the above?

ANSWER

Contractor must ensure that the SBA has access to all reports, correspondence, documents and work papers within one day of any SBA request at any time during the contract performance period. Electronic files are acceptable, however, they must be readily accessible (ie, readable) by SBA using standard Microsoft Office software.

59. Regarding 16-Place of Performance, p.43: How much space will be provided by SBA at their DC facility for contractor utilization and what equipment will be provided? Will space be provided for contractor usage at other SBA facilities? If so, which ones and how much space will be provided and what equipment will be provided?

ANSWER

Space for up to 3 contractors may be provided at SBA’s Washington, DC Headquarter’s facility. In addition to providing SBA, SBA will provide Contractors with daily access to a desk-top computer and access to computer printers and copy machines for routine contract work.

60. Will SBA consider extending the due date to allow adequate time to prepare a response to the RFP?

ANSWER - No.

61. How many personnel under the incumbent contract provide these services currently?

ANSWER - The incumbent’s contract does not call for the identical types of services listed in the RFP, , so a comparative number of personnel is not available.

62. RFP p.73: The due date is shown as 12 am MDT on August 20, 2014. Should the time be 12:00 pm?

ANSWER - YES THIS IS BEING CORRECTED TO READ AUGUST 20,2014 12 PM MDT.

63. RFP p.77: Relevant Prior Experience: Would SBA consider changing the page limits to 2 to 3 pages/prior experience and allow 2 references per Prime and each subcontractor, to allow adequate space for prime and subcontractors to describe their relevant prior experiences? In addition, since Offeror is required to describe subcontractor work effort and criticality and why subcontractor experience is relevant, could 2 additional pages be allowed to complete that requirement?

ANSWER – Page Numbers remain unchanged. Requirements remain unchanged.

64. Completion of SF1449, a number of the CLINs provide a minimum and maximum number of units. Are we to merely provide the unit price in the SF1449 or if the pricing is to be computed for an amount, which number of units should be utilized?

ANSWER – Pricing shall be completed on attachment 1 for the base IDIQ and Pricing shall be submitted for the first task order in similar format as attachment 4. The numbers on the SF 1449 are estimates. The only minimum and maximum are listed in the solicitation at Paragraph 2. When filling out the SF 1449, the unit price is satisfactory.

65. Attachment #1 - IDIQ Pricing Sheet states that CLIN0011 should be stated on sheet 2 of the attachment for labor categories and rates, however Sheet 2 does not include a section for CLIN0011. Can the CO please clarify?

ANSWER

See Amended Attachment 1.

66. Please confirm that per unit pricing should not be provided for Task 9 in Attachment #1 – IDIQ Pricing Sheet.

Yes, see Original and Amended Attachment 1.

67. Can the CO please clarify which CLINS are required to be priced within Attachment #3 for Task Order 1? The listed CLINS through Attachment 3 conflict as follows:

Pricing Schedule identifies CLINS 0001, 0002, 0003, 0004, 0010, and 0011.

Purpose section identifies CLINS 0001, 0002, 0003, 0004 and 0004 (It says 0004 twice, should it say 0014 instead?)

The detailed descriptions of the task order identifies CLINS 0001, 0002, 0003, 0010, and 0011.

If CLIN 0004 is within the scope of Task Order 1, can the CO please confirm that its description aligns with Task 4 within Section 9.4?

ANSWER

See Amended Attachment 3.

68. Part II – IDIQ Pricing Schedule, Section 6 – Labor Rates and Attachment 1 - IDIQ Pricing Sheet indicates Task 8 should be priced on a per unit pricing; however, Attachment 1 – Sheet 2 also includes Task 8 to be priced based on Negotiated Labor Categories and Rates. Can the CO please clarify how to price Task 8?

ANSWER

See Amended Attachment 1.

69. Part II – IDIQ Pricing Schedule, Section 6 – Labor Rates and Attachment 1 - IDIQ Pricing Sheet indicates Task 8 should be priced on a per unit pricing; however, Attachment 1 – Sheet 2 also includes Task 8 to be priced based on Negotiated Labor Categories and Rates. Can the CO please clarify how to price Task 8?

ANSWER

See amended Attachment 1.

70. The Solicitation nor Attachment 1 provides guidance on how to price Task 15 (CLIN0013) and Task 20 (CLIN0016). Can the CO please clarify how and where these tasks should be priced?

ANSWER

See Amended Attachment 1.

71. In the Task 13 and 14 descriptions the RFP states that Tasks 13 and 14 are associated with Tasks 2, 3, 4, 6, 7, 8, and 11. However, based on our understanding, Task 11 would not require the items within Tasks 13 and 14. Can the CO please clarify?

ANSWER

Task 11, which is the Analysis of the Delegated Lender Process, is not associated with Tasks 13. However, Task 14 contains the Oversight Review Reports Requirements. For Task 11, Contractors will need to provide an in-depth analysis of the Delegated Lender Authority review process identifying strengths and weaknesses and providing recommendations on ways to streamline the process and implement efficiencies in accordance with guidelines set forth in Task 14.

72. For the key personnel experience requirements, will an advanced degree or certification be considered as a substitute for a year of experience?

ANSWER

No. See Section 11 – Staffing in Original and Amended RFP.

73. The RFP states that "a Team of three will be required" for the Review and Audit Team Managers. Please confirm that the SBA will require three Review and Audit Team Managers.

ANSWER

There is only one 504 Review and Audit Team Manager Required. See Amended RFP.

74. Please confirm the quantities that should be used when completing the SF1449?

ANSWER

Complete Amended Attachment 1 and sign SF1449 (pricing does not need to be included on SF1449).

75. Please clarify the following instructions in Section 60.6, “Complete Attachment 1 – Pricing Schedule, Return the SF1449 signed by with no totals added 3”.

ANSWER

See section 60.6 in Amended RFP.

Answers to RFP 504 Questions Page | 11