ATTACHMENT_2_Task_Order_0001_2016.05.23.docx

ATTACHMENT #2

TASK ORDER 0001

Pricing Schedule for Task Order 0001

TOTAL TASK ORDER PRICE

PRICING PROPOSAL -NOTE: FOR YOUR PRICE PROPOSAL PROVIDE BACK-UP DOCUMENTS THAT DETAIL THE LABOR CATEGORIES AND HOURS PROPOSED FOR EACH TASK THAT HAS A UNIT RATE. FOR TASK ORDER 0001 PROVIDE SAME DETAILS FOR THE TOTAL PRICE FOR THIS TASK ORDER AND EACH TASK

Period of Performance:

Twelve months from award

Purpose:

Contractor shall provide the necessary services to complete the following CLIN 0001

CLIN 0001

The Contractor will be required to provide SBA with technical assistance in the assessment of SBA Supervised Lenders’ overall financial condition as well as 7(a) loan program performance and compliance, using information submitted by lenders, and other data provided and maintained by SBA in the data room warehouse. SBA anticipates that this technical assistance shall be provided either onsite at SBA’s Washington DC Office or at the Contractor’s office located in the DC Metro Area (as defined), in coordination with SBA Staff. Technical assistance will be needed for three primary types of activities:

• Technical assistance in the review and assessment needed for the award of Delegated Authority, the authority given to SBA lenders which allows them to make final credit decisions.

• Technical assistance in the review and assessment of Quarterly and Annual Reports submitted by SBA Supervised Lenders, including maintaining administrative records of documents received and reviewed, as well as a warehouse of lender submissions and review documents.

• Technical assistance in analytical and administrative work needed in preparation for and management of examinations and reviews of all types, as well as analysis and maintenance of data on the entire SBA Supervised Lender portfolio.

Technical assistance will require collaboration and communication with all key personnel and the project management team, as well as SBA. Cost for technical assistance may be allocated to this CLIN as a monthly cost, or it may be imputed across the fixed cost items. SBA wishes to engage with the Contractor on a regular basis in order to ensure that work is done efficiently, that work meets SBA quality standards, and that process used and work produced offers the best value to SBA.

Task 1A: PARRiS and Community Advantage Delegated-Lender Reviews Technical Assistance - It is estimated that each year 8 standard delegated authority reviews and 4 Community Advantage delegated authority reviews will be required.

The Contractor shall provide technical assistance in the review, assessment, and processing of PARRiS Delegated Lender Authority Nominations and Renewals, and Community Advantage Delegated Lender Nominations and Renewals. The coordination of the PARRiS Delegated Lender Authority Review process will be conducted under a separate contract. The coordination of the Community Advantage Delegated Authority process will be a requirement of this Contract, specified in the Community Advantage section below.

a) The PARRiS Delegated Lender Authority Review Assessment process is as follows:

i) Each month, SBA will provide the Contractor a list of all SBA Supervised Lenders requesting nomination for new delegated authorities, and a list of lenders whose delegated authorities will expire three months in the future. The delegated authorities include the following types:

a. Preferred Lending Program (PLP)

b. SBAExpress

c. Export Express

d. PLP-EWCP

ii) The Contractor will perform an analysis of SBA Supervised Lender performance and compliance, as well as a review of required certifications provided by the lender. The financial information to be reviewed includes the quarterly and annual reports submitted by the lender. The data elements to be reviewed are available from SBA’s data warehouse, and include but are not limited to the following:

a. Lender Portal data

· Risk Rating

· Average SBPS score

· Predictive Purchase Rating

· 6 Month Liquidation Rate

· Gross Delinquency Rate

· Gross Past Due Rate

· Last 12 Month Purchase Rate

· Early Default Rate

· Dollar Weighted Average FSS

· 6 month Net Flow

· Percentage of PLP Loans

· Percentage of SBAExpress Loans

b. Lender Profile Assessment (LPA) data:

· SBA portfolio balance sheet

· Disbursal activity

· Size of loans

· Length of time loans remain in liquidation

· Early defaults

· Payment of guarantee fees

· Payment of lender review fees

· Compliance with 1502 reporting requirements

· Use of delivery methods

· Results of prior examinations or reviews

These data elements may be amended from time to time.

iii) The Contractor will complete a report of an analysis for each lender assigned, in a format to be specified by SBA, no later than 30 days after each list of lenders to be reviewed is submitted to the Contractor.

b) The Community Advantage Delegated Lender Authority Review Assessment process is as follows:

i) The Contractor will develop, with the assistance of SBA, a tracking log in Excel for Community Advantage delegated lender review activities. Community Advantage has only one type of delegated authority, as described in the Community Advantage Participant Guide, included as EXHIBIT 4.

ii) For Community Advantage lenders requesting delegated authority, within ten days of the receipt of a request from SBA, the Contractor will perform an evaluation of the applicant’s organizational, financial and operational strengths, as well as an evaluation of the applicant’s knowledge of SBA Loan Program Requirements. This knowledge will be assessed by reviewing Community Advantage loan applications submitted to the 7(a) Loan Guaranty Processing Center. In addition, the Community Advantage lender’s compliance with Community Advantage program requirements will be reviewed. The Contractor will prepare a decision memo that covers all relevant factors in a format to be specified by SBA, with a recommendation for approval or denial, and a justification for this recommendation.

iii) For Community Advantage lenders whose delegated authority is due to expire in three months, the Contractor will perform an analysis of performance and compliance under the Community Advantage program no later than two months before the expiration date. The Contractor will prepare a decision memo that covers all relevant factors in a format to be specified by SBA, with a recommendation for approval or denial, and a justification for this recommendation.

iv) The Contractor will complete and submit to the COR the delegated authority decision memos, as well as approval/denial letters to lenders, and the SBA 750CA Addendum (which is a pdf fillable form), no later than 10 days after the submission of a request for initial delegated authority, and no later than 60 days prior to expiration of any existing CA delegated authority.

Deliverable: The Contractor shall be responsible for creating and maintaining a CA delegated authority activity tracking log. The Contractor shall prepare the PARRiS Delegated Authority and CA Delegated Authority decision memos, and deliver the decision memos to the COR. The Contractor shall also prepare the related Letters and Agreements after SBA approval. This is an on-going task with the schedule for the Contractor not set in advance.

Task 1B: Certification of Capital Compliance, Quarterly Financial Condition, and Annual Report Reviews –It is estimated that each year 115 annual reviews and reviews for capital compliance will be required, and 115 quarterly financial condition reviews per quarter will be required. These estimates include reviews of reports from Community Advantage lenders.

The Contractor will be responsible for tracking receipt of lender reports and ensuring all reports are appropriately filed in the Virtual Data Room, following up with lenders that have not submitted reports or that have submitted incomplete reports, providing periodic summaries of lenders that have not submitted reports, and providing a written analysis of each report received in a format agreed upon with SBA. Required activities will include the following:

a) Within 10 days after award of the Contract, SBA will provide to the Contractor a list of all SBA Supervised Lenders by type (SBLCs, NFRLs, and CA Lenders). SBA will provide the Contractor access to SBA Supervised Lender communications containing Certification of Capital Compliance, Quarterly Financial Condition and Annual Reports. Within 20 days after receipt of the lists, the Contractor will develop, with the assistance of SBA, separate tracking logs (in Excel or Access) for each SBA Supervised Lender type (SBLCs, NFRLs, and CA Lenders), and place these tracking logs on SBA’s shared drive. These tracking logs will contain the name of the lender and FIRS#, and additional information required by SBA. This list shall be updated by the Contractor as changes to the SBA Supervised Lender portfolio occur.

Deliverable: Separate Tracking Logs for each SBA Supervised Lender type within 20 days after receipt of lists from SBA and updates as needed.

b) The Contractor will log all received reports, and place copies of these reports in the appropriate file in the Virtual Data Room or other specified site within five (5) days of receipt of each report. This activity will be conducted by Financial Analyst employees of the Contractor located at SBA’s Washington DC office.

Deliverable: Contractor will maintain updated logs by logging all received reports within five (5) days of receipt of each report, and placing copies of the reports on the relevant SBA SharePoint site.

c) The Contractor will perform an analysis of each report submitted by lenders within twenty (20) days after receipt, including spreading the financials, analyzing financial viability, analyzing compliance with capital and program-specific requirements, and identifying material changes in management, operations, and/or financial condition.

Deliverable: An analysis of lender reports received from lenders within twenty (20) days after the receipt of each report.

d) SBA and the Contractor will jointly develop a standard review report form, and the Contractor will execute the analysis and review, and complete the review document in the required format. The Contractor will save the review documents in the appropriate lender folder in the Virtual Data Room or other specified site.

Deliverable: An agreed upon standard review report format within 30 days after the award of the contract.

e) Contractor shall deliver to SBA a list of SBA Supervised Lenders that have not submitted reports.

Deliverable: A list of lenders that have not submitted reports, with due dates, five (5) days after the end of each month.

Task 1C: Lender Oversight Technical Assistance

Lender Oversight Technical Assistance includes the following work at a minimum;

a) Preparing individual 7(a) Lender Profile Assessments;

b) Preparing standard reports on the entire SBA Supervised Lender portfolio each quarter, and on demand, as requested by SBA;

c) Developing individual SBA Supervised Lenders’ Examinations and Review plans;

d) Tracking examination and review activities;

e) Updating and maintaining repository for examination and review work papers;

f) Assisting in the maintenance of the corrective action database.

Deliverable: The Contractor shall provide a monthly report on the technical assistance provided. A report is due five days after the end of the month unless further defined at the Task Order level.

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