Solicitation 86616025R00002 Mortgagee Compliance Manager MCM 4.0 Amendment 0001 Consolidated Questions and Answers.pdf

4.0 Mortgagee Compliance Manager

Solicitation 86616025R00002 Amendment 0001 Questions and Answers

SOLICITATION SECTION TITLE

Part I - The Schedule

Section A: Solicitation / contract form.

1) Please confirm that offerors should complete and sign the Standard Form 33 and any amendment forms (Standard Form 30 or similar) and include them in their Part II

Business Proposal.

ANSWER: Yes, the offerors should complete and sign the Standard Form 33 and amendment forms and include them in their Part II Business Proposal

Section B: Supplies of services and prices/costs.

2) Payment, page 5. The Government states,” The MCM 4.0 Contractor will take on the risk of higher-than-expected workloads without an increase in the fixed price, while HUD will bear the risk of lower-than-expected workloads without a decrease in the fixed price.”

Question: Some economists are predicting a significant increase in foreclosures in the coming years. Is there consideration for or a mechanism to adjust the price based on significant foreclosure volume increases in the industry?

ANSWER: No.

3) Work volumes under the MCM contract have historically fluctuated significantly, often in direct response to policy changes initiated by HUD or the broader Federal Government, for example, the introduction of new Loss Mitigation Waterfall steps during and following the COVID-19 pandemic. How will HUD account for changes, by the agency itself or the broader Federal Government, in performance if the MCM returns to the pre-

Covid time period MCM activity level?

ANSWER: Thank you for your comment. HUD cannot predict the future with

100% accuracy. It is impossible for HUD to “account” for possible post-award changes during contract performances necessitated by changes by HUD or the broader Federal Government. It is upon the offeror to be knowledgeable about the prevailing trends in its industry and other factors that will impact its ability to perform and how it prices services. Offerors have access to information about the housing market and can make their own informed business judgments about potential future MCM activity levels.

4) In the event of unpredictable circumstances (i.e. new HUD regulations that directly increase foreclosures, etc.), at what level of surge in work volume will HUD allow a pricing restructure?

ANSWER:

None. The contractor shall consider this in their pricing.

5) Work volumes under the MCM contract have historically fluctuated significantly, often in direct response to policy changes initiated by HUD or the broader Federal Government, for example, the introduction of new Loss Mitigation Waterfall steps during and following the COVID-19 pandemic. Will HUD approve contract modifications requested by the Contractor to account for changes due to large fluctuations in workloads, by the agency itself, or by the broader Federal Government, as for example, if the MCM returns to the pre-COVID time period MCM activity level?

ANSWER: No. The vendor shall consider the impact of possible fluctuation, both upward and downward, in its pricing. This is a business judgment decision. HUD cannot agree, prior to contract award, to any contract modifications.

6) Section B.3. Pricing Schedule, page 7. The base period’s start date is listed as June 1, 2025. Is HUD anticipating an award prior to June 1, 2025?

ANSWER: Yes.

7) Given LPTA evaluations are meant for requirements where the agency can comprehensively and clearly describe minimum requirements in terms of performance objectives, measures and standards to determine the acceptability of offers, how does the current evaluation structure align with this requirement where the agency seeks to evaluate an adequate workforce and ensure stability and continuity of the workforce?

ANSWER: Thank you for your comment. Your description of “the current evaluation structure” does not precisely match the evaluation criteria in the

Solicitation. The Contracting Officer has determined that LPTA is appropriate for this requirement.

8) The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for reasons outlined in “Contractor Personnel” (see 4.5). When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.” Fixed Price Unit by month pricing is in direct contradiction with the importance of stability and continuity of the workforce as it allows no staffing flexibility if volumes surge beyond what the Contractor has allocated to staffing levels. HUD MCM service will necessarily be interrupted, especially in the event of a sustained volume increase. Will the Government please price by activity CLIN to ensure appropriate staffing and to reduce risk to performance?

Thank you for your comment. We will not price by activity CLIN. The CLIN structure is as stated in Schedule B.

9) There is no mention of a work distribution system. Does HUD provide work allocation from HRSR or is contractor responsible for creating or purchasing a work management system?

The contractor is not responsible for creating or purchasing a work management system. HUD will allocate the work to the contractor. HUD has a system called

ADAMS/P260. ADAMS/P260 is the only system of record for MCM.

Section C: Description/specifications/statement of work.

10) The solicitation states: “Mortgagees have five (5) business days from the date of denial to submit an extension of time request for reconsideration.” Can HUD please clarify whether this requirement is based on a specific HUD regulation, or if it is a policy established solely for this contract?

ANSWER: This is a requirement of the contract.

11) We note that there are no Acceptable Quality Levels (AQLs) specified for this scope of work, despite one being present in MCM 3.0 and prior. Can HUD please confirm whether it has determined that an AQL for Extension of Time Appeal requests is no longer required under MCM 4.0?

There is no specific AQL for C.5.1.1.1, other than, failure to meet the contract requirements may result in HUD seeking any allowable remedy under the contract and applicable law. The AQLs are as stated in the solicitation.

12) Attachment 2, Appendix A includes data related to HECM over-allowables; however, this scope of work does not appear to be addressed within the solicitation. Can HUD please confirm whether the MCM contractor will be responsible for reviewing reverse mortgage

(HECM) over-allowables under this contract?

ANSWER: HECM mortgages are not a part of this contract. HUD will replace

Attachment 2, Appendix A with an updated document that does not include HECM mortgages.

13) “Mortgagees have five (5) business days from the date of denial to submit an over-allowable appeal request for reconsideration.” Is this based on a HUD regulation?

ANSWER: This is a requirement of the contract.

14) There are no Acceptable Quality Levels (AQLs) defined for this scope of work, despite

AQLs being included for similar tasks under MCM 3.0 and prior. Can HUD please confirm whether it has determined that an AQL for Occupied Conveyance requests is no longer necessary under MCM 4.0?

ANSWER: There is no specific AQL for C.5.1.3, other than, failure to meet the contract requirements may result in HUD seeking any allowable remedy under the contract and applicable law. The AQLs are as stated in the solicitation.

15) There are no AQLs for this scope of work, even when one was present in MCM 3.0 and prior. Please confirm that HUD has determined that an AQL associated with Occupied

Conveyance Appeal Reviews are no longer necessary.

ANSWER: There is no specific AQL for C.5.1.3.1, other than, failure to meet the

16) “Contract employees who engaged in the initial occupied conveyance decision shall not participate in the appeal process other than to provide pertinent information or evidence.

The Contractor shall send a final notice of determination to the occupant and the

Mortgagee within five (5) business days of making their final decision.” This is the only section that contains this language. Please confirm that only occupied conveyance appeals must be reviewed by staff separately than the ones that completed the initial review.

ANSWER: Yes. However, it is a business decision concerning your staffing and how you choose to address appeals.

17) The solicitation states: “Contract employees who engaged in the initial occupied conveyance decision shall not participate in the appeal process other than to provide pertinent information or evidence. The Contractor shall send a final notice of determination to the occupant and the Mortgagee within five (5) business days of making their final decision.” This appears to be the only section that includes this requirement.

Can HUD please confirm that this staffing separation requirement applies exclusively to occupied conveyance appeals, and that such appeals must be reviewed by personnel other than those involved in the initial decision?

ANSWER: Yes. However, it is a business decision concerning your staffing and how you choose to address appeals.

18) There does not appear to be any reference in the solicitation indicating that the MCM contractor is responsible for reviewing appeals related to surchargeable damage— whether for Pre-conveyance or Pre-foreclosure sale scenarios. Can HUD please confirm that the MCM contractor will not be required to perform appeal reviews for these scopes of work?

ANSWER: If it is not stated within the confines of the contract, it is not a requirement.

19) We note that no Acceptable Quality Levels (AQLs) have been specified for this scope of work, even though an AQL was included in MCM 3.0 and prior. Can HUD please confirm whether it has determined that an AQL for Surchargeable Damage Reviews related to Pre-foreclosure sale properties is no longer required under MCM 4.0?

ANSWER: There is no specific AQL for C.5.1.4.1, other than, failure to meet the contract and applicable law. The AQLs are as stated in the solicitation.

20) There are no Acceptable Quality Levels (AQLs) specified for this scope of work, despite such measures being present in MCM 3.0 and earlier. Can HUD please confirm whether it has determined that an AQL for 27011 Part A Claim Reviews, including Hard, Soft, and

Fatal edits, is no longer required under MCM 4.0?

ANSWER: There is no specific AQL for C.5.2.1, other than, failure to meet the

21) The solicitation does not appear to specify a required timeframe for the review of Soft

Edits. Can HUD please confirm whether there is no designated timeframe within which the MCM contractor must complete Soft Edit reviews?

ANSWER: See Solicitation Amendment 1.

22) The solicitation states that the MCM contractor shall develop a cost estimate, using the

HUD provided cost estimator service. Is the MCM expected to physically access the property in order to determine the scope to create a valid cost estimate?

If so, how will that cost be reimbursed or is that at the expense of the contractor?

ANSWER: No. The MCM is not expected to physically access the property in order to determine the scope to create a valid cost estimate. The lender should be providing the necessary information to create a valid cost estimate. If you do not receive the appropriate information, you can reach out to the lender and give them five days to provide the information. After that five-day timeframe, if you do not have the necessary information, the request will be denied.

23) There are no Acceptable Quality Levels (AQLs) identified for this scope of work, despite such metric being present in MCM 3.0 and earlier. Can HUD please confirm whether it has determined that AQLs for 27011 Part A Claim Reviews—including Hard, Soft, and

Fatal edits—are no longer required under MCM 4.0?

ANSWER: There is no specific AQL for C.5.2.2, other than, failure to meet the

24) The CWCOT claim review section does not appear to specify that the Contractor is responsible for reviewing the 27011 claim form for Property and Preservation (P&P) expenses and issuing a demand, as is outlined for other areas such as Appraisal, Surchargeable Damage, Claim Review – Discount, Claim Review – Auction Fee, and

Claim Review – Bid Amount, in alignment with Section 5.2.8 (Administrative

Remedies). Can HUD please confirm whether CWCOT claim reviews are intended to include evaluation of P&P costs for potential administrative remedies?

25) Is there a limit on the number of times a mortgagee can submit their title package to the

MCM?

26) If there is a limit on the number of times a mortgagee can submit their title package to the

MCM, do these fall under the same 45-day window referenced in 5.2.5.3 Title Review –

Title Package not Received?

27) If there is not a limit on the number of times a mortgagee can submit their title package to the MCM, what is the limit that a mortgagee may re-submit their title package (amount or timeframe)

ANSWER: See question 21 above.

28) Do title referrals for reconveyance have an AQL similar to the review of the title packages?

29) Is there an AQL associated with extensions of time in relation to Title Packages OR has

HUD determined that is not necessary?

ANSWER: There is no AQL associated with title extensions of time.

30) The solicitation is silent on reimbursement for costs associated with deed execution, regardless of if the deed in question is related to a conveyance or CWCOT claim. Are costs associated with deed execution/recordation reimbursable?

ANSWER: Please refer to the Solicitation at Section B, B.2 Payment. This is not a cost-reimbursement contract type.

31) There are no Acceptable Quality Levels (AQLs) defined for this scope of work, despite such standards being included under MCM 3.0 and earlier. Can HUD please confirm whether it has determined that an AQL for voluntary deed executions is no longer required under MCM 4.0?

ANSWER: There is no specific AQL for C.2.6, other than, failure to meet the

32) There are no Acceptable Quality Levels (AQLs) specified for this scope of work, despite an AQL being included under MCM 3.0 and prior. Can HUD please confirm whether it has determined that an AQL related to administrative remedies is no longer required under MCM 4.0?

ANSWER: There is no specific AQL for C.5.2.7, other than, failure to meet the

33) Per the PWS, “The Contractor shall notify the Mortgagee by the dates prescribed in the

PWS (see Sections 5.2.1 Part A Claim Review, 5.2.2 Parts B and C Claim Review, 5.2.3

Part D Claim Review, 5.2.4 CWCOT Claim Review, 5.2.5 Title Review, and 5.2.6

Surchargeable Damage – Post Conveyance) of the necessary supporting documentation required to address any monetary damages owed to HUD, or to bring the property into conveyance condition, or to obtain a clear and marketable title. “However, there is no reference to issuing demands for reimbursement based on findings from HUD’s Field

Service Management (FSM) or Asset Management (AM) contractors. Can HUD please confirm whether such demands are no longer required to be issued by the MCM contractor under MCM 4.0?

ANSWER: There has been no change from the previous contract (MCM 3.0).

34) There is no reference to the MCM contractor completing appeal reviews on demands for reimbursement. Please confirm that the MCM contractor is not responsible for reviews of demand appeals.

ANSWER: There has been no change from the previous contract (MCM 3.0).

35) There is no Billing Letter section of this process. Please confirm that the billing letter portion of the reconveyance process has been removed from the MCM Contractors’ responsibilities or that the Intent to Convey will include billing amounts.

ANSWER: There has been no change from the previous contract (MCM 3.0).

36) The solicitation does not include a Billing Letter section as part of the reconveyance process. Can HUD please confirm whether the billing letter requirement has been removed from the MCM contractor’s responsibilities, or whether the Intent to Convey is now expected to include billing amounts in lieu of a separate billing letter?

ANSWER: There has been no change from the previous contract (MCM 3.0).

37) Does the Government have any pain points with the current contractor that can be addressed in our response?

38) It appears by the historical volume data provided; the numbers have remained relatively consistent for default claims over the last five (5) years. Does HUD have any internal data on potential defaults that would significantly change the volume, or impact the operation, as it relates to this contract for the next five (5) years?

ANSWER: Yes, we can provide data trend information (attachment)

39) Period of Performance, page 15, states: “The period of performance shall be for one (1)

Base period of 12 months and four (4) 12-month option periods (if exercised).” This amounts to five years, including the option periods. Is this correct? Or is the full period of performance for five and a half years?

ANSWER: Yes. The full period of performance is intended to be 5 years, consisting of a base period of 12 months, plus four 12-month option years. However, if HUD chooses to exercise the FAR 52.217-8 option (6-month extension), it is possible that the maximum period of performance for this contract could be 5.5 years (if FAR 52.217-8 is exercised and used for the full period of performance).

40) Place of Performance, page 15. The Government states, “The services to be performed under this contract shall be performed at the Contractor's facility.” Question: Is

Contractor permitted to perform some services remotely?

ANSWER: That is the Contractor’s own business decision.

41) Contractor Personnel, page 23, states: “The Contractor shall provide the following: (1) a

Contract Manager ... and (2) An alternate (Alternate CM).” These two positions are designated as Key Personnel, but there are no requirements to include the Key Personnel biographies or resumes. Can you confirm this is correct. If this is incorrect, please indicate where we should include any biographies or resumes.

ANSWER: This is correct, there are no requirements to include the Key Personnel biographies or resumes.

– Does the Government have a preference as to where they would like the place of performance for this contract? Can the Government provide the number of full-time employees on the current contract?

ANSWER: The place of performance for this contract is in the state of Oklahoma.

This information is proprietary in nature and cannot be released to the general public. Each offeror is responsible for determining the personnel needed to perform the required PWS tasks in accordance with the PWS

42) Can HUD please confirm whether the MCM contractor will be responsible for reviewing reverse mortgage (HECM) over-allowables under this contract?

ANSWER: HECM mortgages are not a part of this contract.

43) Are employees working remotely considered part of the workforce located at the

Contractor’s facility?

ANSWER: Yes, employees working remotely are considered part of the workforce located at the contractor's facility.

44) Will the newly awarded contractor have the opportunity to shadow the incumbent contractor during the 60-day transition period?

ANSWER: No, the newly awarded contractor will not have the opportunity to shadow the incumbent contractor during the 60-day transition period.

45) Performance Requirements Summary, pages 44-45. The Government provides timing requirement standards. Question: Are there any standards with respect to the quality of services provided?

ANSWER: The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract.

46) Can the Government provide historical information with respect to the monthly mailings that have been performed under this task?

ANSWER: Yes, we can provide historical information (attachment)

47) Is HUD implementing any updates or changes to its cybersecurity practices or access control requirements for systems of record that contractors should be aware of?

ANSWER: If there are any future changes it will be implemented by amendment of the solicitation or modification to any resulting contract.

48) If HUD is implementing any updates or changes to its cybersecurity practices or access control requirements for systems of record that contractors should be aware of, can the Government please clarify whether these changes will impact onboarding procedures, system access, or ongoing compliance expectations under this contract?

ANSWER: See question 47 above

49) Did HUD’s market research show that small business vendors would be able to keep up with this volume?

ANSWER: The most recent, based on attachment 2, shows a decline in volume, thus the question is unclear

50) With high volumes of customer service activities does HUD expect the contractor to maintain a call center?

ANSWER: There is no call center requirement in the PWS

51) Does HUD anticipate that the volume of pre-conveyance work will return to pre-COVID levels?

ANSWER: The agency has provided Historical Data but cannot determine the precise quantity of services that will be required during the contract period

52) Does HUD anticipate that the conveyance claims/CWCOT claims will return to pre-

COVID levels?

ANSWER: The agency has provided Historical Data but cannot determine the precise quantity of services that will be required during the contract period

53) Are costs associated with deed execution/recordation reimbursable?

ANSWER: Please refer to Section B, B2 Payment of solicitation

54) We note that no Acceptable Quality Levels (AQLs) have been identified for this scope of work, despite such metrics being present in MCM 3.0 and earlier iterations. Can HUD please confirm whether it has intentionally determined that an AQL for Extension of Time requests is no longer required under MCM 4.0?

ANSWER: This is a new requirement, and the AQLs are as stated in the solicitation.

55) Section C.5.2.1.3 Does the HRSR system have a tracking module to determine when the 60-calendar daytime limit has been reached, or will the Contractor need to track these activities separately?

56) Section C.5.2.4.1 Please clarify what correct type of appraisal the Contractor will be confirming?

ANSWER: An appraisal done by a professional realtor. Based on whether the property was occupied or not the Contractor will be determining whether an interior or exterior appraisal is required. If the property is occupied an exterior appraisal will be required.

If the property is found vacant an interior/exterior appraisal will be required.

57) Section C.5.2.4.4 Please indicate how the Contractor would know the correct auction fee?

ANSWER: The Contractor would refer to HUD Handbook 4000.1.

58) Section C.5.2.5.1 Are we to assume that the contractor is responsible for printing and mailing any HRSR system-generated letters and the cost associated with this task?

ANSWER: All notifications are sent to the mortgagees as emails through the P260 portal system. There are email templates in place for this in P260. Occupants are notified through certified letters, which are then scanned into P260 as attachments.

See PWS section 5.1.3.

59) Section C.5.2.5 Can HUD expand on the roles and responsibilities for title resolution?

ANSWER: The Contractor is responsible for reviewing the title to ensure HUD receives clear title. If the Contractor denies the title evidence the Contractor must explain the reasons for the denial. The Contractor shall provide the Mortgagee the remedies to address each title issues.

60) Section C.5.2.5.3 Does the HRSR System provide a report that references this 45-day timeline and if not, how will the Contractor be able to track this item?

ANSWER: The HRSR system is the tracking system

61) Can HUD provide the total annual number of FHA-insured single-family mortgage originations (forward and reverse) for the past 20 years?

ANSWER: HUD will provide the annual number of forward single-family mortgage originations, as HECMs are not a part of this contract. (Program will provide attachment)

62) For planning purposes, can HUD confirm whether the MCM is expected to follow a uniform workflow for all Title II claim types or whether separate workflows should be anticipated based on loan type (e.g., forward vs. HECM)?

ANSWER: That will be the Contractor’s business decision. HECM mortgages are not a part of this contract.

63) 5.2.5. Title Review Can HUD clarify whether the MCM is expected to perform legal-level title validation during the Title Review process (Section 5.2.5), or simply confirm submission and completeness of title packages?

ANSWER: Yes, the MCM is expected to perform legal level title validation during the Title Review Process

64) With the historical and potential volatility of work volumes, complexity of the scopes of work, necessity of industry experienced SMEs/Key Personnel, and resulting difficulties performing the contract, will the Government consider changing the solicitation to Unrestricted/Other than Small?

65) How will the government determine if an offeror is qualified and capable of performing the work with the limited Key Personnel requirements listed in this solicitation?

ANSWER: See section L & M of solicitation

66) If AQLs have been intentionally removed and LPTA remains, is HUD prepared to lose monies in the HUD fund?

ANSWER: This question is unclear as written

67) Is HUD considering making changes to the loss mitigation waterfall?

ANSWER: This question is unclear as written

68) 5.2.7. Administrative Remedies Can HUD provide insight into the typical frequency and triggers for reacquisitions and reconveyances under Section 5.2.7?

– ANSWER: Yes. (Program will provide attachment)

69) 13. Section C5.2.8.1 Please confirm that all these data elements and ad hoc reporting items can be generated from the HRSR system.

ANSWER: Yes, the items can be generated from the HRSR system.

70) 14. Section I – AS-2315.5 -Please confirm if Contractor employees will be provided a

HUD email.

ANSWER: Yes, currently the Contractor will be provided a HUD email. The Contractor will be notified of any changes to this requirement.

71) 15. Section I- AS-2315.16 Please advise how does the contractor deliver security and privacy related documents to HUD's CISO?

ANSWER: Once the contract is awarded, the contractor will be notified of what needs to be provided to HUD as well as the delivery system.

72) To inform our pricing and staffing projections, can HUD confirm whether it anticipates future claim volume to remain consistent a with the historical data provided in Attachment 2 – Appendix A or whether volume is expected to fluctuate based on recent policy, market, or servicing changes?

ANSWER: No. We can not predict the outcome of future volume, at this time there are no policy changes in process.

73) Description/specifications/statement of work. C.1.1 Scope of Work, page 10. The Government states, “The Contractor shall be responsible for pre-conveyance and post-conveyance activities associated with claims, acquisition, and disposition of FHA Single Family insured assets (Conveyed Properties, and Claims Without Conveyance Title (CWCOT).” Based on recent state law in non-judicial states, we cannot foreclose on a federal lien.

ANSWER: The MCM Contractor is not required to complete foreclosures.

74) In many circumstances, HUD has to release the Partial claim or COVID lien in order to get a clear title.

ANSWER: That is not part of the MCM contractor’s job. The lender takes care of anything to clear the lien.

75) The MCM Contractor Question: Is the lien release activity part of this contract or done by another group?

ANSWER: No, the lien release activity is not part of this contract, It is completed by the lender.

76) C.1.2 Background, page 12. The Government states, “HUD is currently using a system called “ADAMS/P260” (sometimes referred to simply as “P260”) as its HRSR.”

Question: Will the Contractor be permitted to utilize a fully compliant claims tracking system other than those identified in the solicitation if the Contractor believes that the alternative system will be more efficient?

ANSWER: No, everything shall be done through the HUD System of Records

ADAMS/P260 (HRSR).

77) C.1.2 Background, page 12. The Government states, “HUD is currently using a system called “ADAMS/P260” (sometimes referred to simply as “P260”) as its HRSR.”

Question: In order to achieve increased quality and efficiency, will the Contractor be permitted to utilize technology, such as Robotic Process Automation (RPA) to supplement the systems listed in the solicitation?

ANSWER: No, everything shall be done through the HUD System of Records

ADAMS/P260.

78) C.5.2.8.3 Ad-Hoc Reports, page 40. The Government states, “Upon COR’s request, the Contractor shall furnish to the COR ad-hoc reports.” Questions: Does the HRSR system have a reporting feature to generate the standard and ad hoc reports? If not, will there be a data export generated that can be used for reporting?

ANSWER: Yes, the ADAMS/P260 does have a reporting feature that generates standard reports and will also provide the data required to construct Ad Hoc Reports

79) C.5.2.9 Document Administration, page 40. The Government states, “The only exception to this rule deals with the Occupied Conveyance documents. All original documents and envelopes shall be maintained in hard copy even after they are scanned into HRSR. These hard copy files shall be stored in a locked file cabinet for one year from the date the final decision of the occupied conveyance is made.” Questions: What is the current volume of the Occupied Conveyance documents that must be stored for a year? Yes (attachment) Will the cabinets be sent with the documents, or will we need to procure our own?

ANSWER: No, the file cabinets will not be sent with the documents. You will need to procure your own cabinets.

80) C.5.2.9 Document Administration, page 40. The Government states, “Current and historical customer service data for fiscal year (FY) 2018 through (FY) 2024 year to date is referenced in Appendix A – MCM Historical Data (Solicitation Attachment 2).”

Attachment 2 (Historical Data) shows a combined amount of documents imaged, emails and phone calls. Question: Is there a breakout of imaging vs. Email/calls?

ANSWER: No, there is not a breakout of imaging vs. Email/calls.

81) C.5.2.9 Document Administration, page 40. The Government states as follows: “Record Retention and Disposition - after upload completion, the Contractor shall securely destroy all documents in accordance with NARA regulations at 36 CFR Chapter XII Subchapter B and the Federal Records Act (44 U.S.C. chps. 21, 29, 31, 33). The only exception to this rule deals with the Occupied Conveyance documents. All original documents and envelopes shall be maintained in hard copy even after they are scanned into HRSR. These hard copy files shall be stored in a locked file cabinet for one year from the date the final decision of the occupied conveyance is made.” Question: With respect to the retained hard copy files that are stored in a locked cabinet for one year, is the Contractor required to house the locked cabinets in a facility that fully complies with NARA, including the facility requirements set forth in Section 1234.10, fire safety requirements in Section 1234.12, and environmental controls in Section 1234.14 of 36 CFR Chapter XII Subchapter B?

ANSWER Yes, the Contractor is required to house the locked files in a facility that fully complies with NARA laws and regulations.

82) Will HUD provide a download API to the winning contractor?

No. HUD will not provide an API download to the winning contractor for this MCM 4.0 requirement.

83) Will HUD provide an upload API to the winning contractor?

ANSWER: See question 33 above.

84) Is AI or RPA allowed in the contractor system that may connect to HUD systems of record?

ANSWER: No.

85) Will a contractor owned system be able to interconnect with HUD systems? If so which system(s)?

ANSWER: No. HUD does not provide interconnection.

86) How will the government determine if an offeror is qualified and capable of performing the work with the limited Key Personnel requirements listed in this solicitation?

ANSWER: See section L & M of solicitation.

87) Will a contractor owned system connected to HUD systems of record be required to comply with FISMA, FedRamp, or other IT security requirements?

ANSWER: There is no need for the Contractor to connect its own system to any HUD system. There is no connection to the HUD system.

88) Will a contractor owned system be required to host its data in the United States?

ANSWER: If the Contractor elects to utilize a Contractor owned system in performance of this Contract, then yes, the Contractor will be required to ensure that this Contractor owned system hosts the data in the United States.

89) Is HUD considering making changes to the loss mitigation waterfall?

ANSWER: Thank you for your comment. We cannot speak on pre-decisional matters, if any.

90) The solicitation states that mortgagees have five (5) business days from the date of denial to submit reconsideration requests for both Extension of Time and Over-Allowable appeals. Can HUD please clarify whether this five-day timeframe is based on a specific HUD regulation?

ANSWER: See question 12 above.

91) The solicitation states that mortgagees have five (5) business days from the date of denial to submit reconsideration requests for both Extension of Time and Over-Allowable appeals. Has this timeframe been established uniquely for the MCM 4.0 contract?

ANSWER: See question 12 above.

Section G: Contract administration data

Section H: Special contract requirements.

92) In Section H.5 Service Contract Award (SCA), RFP page 55 states, “Offerors are to identify and list the prevailing wage determination and classification(s) that will be subject to the Service Contract Act.” Please confirm this list is to be included in the Part

II Business Volume and not in the Pricing Sheet.

ANSWER: It is confirmed that the prevailing wage determination must be included in the Part II Business Proposal Volume.

93) We note that the MCM 4.0 solicitation does not include Acceptable Quality Levels

(AQLs) for several scopes of work that previously had defined AQLs under MCM 3.0 and prior. Specifically, the following areas appear to be excluded from AQL requirements in the current solicitation:

a) Extension of Time Requests

b) Extension of Time Appeals

c) Occupied Conveyance Requests

d) Occupied Conveyance Appeal Reviews

e) Surchargeable Damage Reviews for Pre-Foreclosure Sale Properties

f) 27011 Part A Claim Reviews, including Hard, Soft, and Fatal Edits

g) Voluntary Deed Executions

h) Administrative Remedies

94) Can HUD please confirm whether it has intentionally removed AQLs for these workstreams under MCM 4.0, and whether these tasks are no longer subject to specific performance thresholds? If there are no AQLs for timeliness or quality, then HUD and the taxpayer will inevitably lose money in the HUD fund. Will HUD add AQLs to the requirement?

Thank you for your comment. If you do not see an AQL for a specific section of the

Solicitation’s Section C PWS, then that means there is no specific AQL, other than, failure to meet the contract requirements may result in HUD seeking any allowable remedy under the contract and applicable law. The AQLs are as stated in the solicitation.

Part II - Contract Clauses

Section I: Contract Clauses

95) Is HUD implementing any updates or changes to its cybersecurity practices or access control requirements for systems of record that contractors should be aware of?

No. If there are any future changes needed, they will be implemented by amendment of the solicitation or modification to any resulting contract.

96) If HUD is implementing any updates or changes to its cybersecurity practices or access control requirements for systems of record that contractors should be aware of, can the

Government please clarify whether these changes will impact onboarding procedures, system access, or ongoing compliance expectations under this contract?

See question 95 above.

Part III - List of Documents, Exhibits, and Other Attachments

Section J: List of attachments.

97) According to historical data provided, it appears roughly 180k-200k Preconveyance over-allowable activities are processed each year. According to AQL’s, 100% of submitted

OA’s are to be processed within 10 business days. Did HUD’s market research show that small business vendors would be able to keep up with this volume?

The Market Research showed that small business vendors are capable.

98) Historical data shows 30k+ customer service activities including phone calls and document processing. With high volumes of customer service activities does HUD expect the contractor to maintain a call center?

There is no call center requirement in the PWS.

99) The Historical Data shows a large decrease in conveyance claims and CWCOT claims post COVID, disproportionate to the activities that appear to occur prior to conveyance claim or CWCOT claim based on this solicitation. Does HUD anticipate that the volume of pre-conveyance work will return to pre-COVID levels?

ANSWER:HUD cannot predict the future with 100% accuracy. It is upon the offeror to be knowledgeable about the prevailing trends in its industry and other factors that will impact its ability to perform and how it prices services. Offerors have access to information about the housing market and can make their own informed business judgments about potential future MCM activity levels.

100) The Historical Data shows a large decrease in conveyance claims and CWCOT claims post COVID, disproportionate to the activities that appear to occur prior to conveyance claim or CWCOT claim based on this solicitation. Does HUD anticipate that the conveyance claims/CWCOT claims will return to pre-COVID levels?

See question 99 above.

Part IV – Representations and Instructions

Section K: Representation, certifications, and other statements of offerors or respondents.

101) Section K.3 Please confirm that this is a small business set aside contract?

ANSWER: Yes, this is a total small business set aside.

Section L: Instructions, conditions, and notices to offerors or respondents.

102) Section L9 Please confirm that the Quality Control Plan is 15 pages and not 10 pages, as referenced in Section M.

ANSWER: Confirmed: the Quality Control Plan is 15 pages in section L and section

M.

103) When does the Government anticipate making an award?

ANSWER: The Government anticipates making an award no later than June 2025

104) Section L.1.(c)(1), Instructions to Offerors, “Submission, modification, revision, and withdrawal of proposals,” pages 117-118, states: “Offerors shall ensure that the proposal contains the information in paragraphs (c)(1)(i) and (c)(1)(ii) of this provision.”

In addition to the (c)(1)(i) and (c)(1)(ii) requirements, page 118 continues to include requirements for (c)(1)(iii), (c)(1)(iv), and (c)(1)(v). Please confirm that the proposal should contain information for these requirements as well.

ANSWER: Yes, the proposal should contain the information as instructed by FAR

52.215-1

105) Please define price analysis techniques. Will the Government be using FAR Part

15 price analysis techniques, specifically FAR 15.404-1?

ANSWER: Price Analysis as defined in the solicitation or FAR 15.404-1 Yes, FAR

15.404-1 (b)(2) will be used for Price analysis.

106) Section L.1.(c)(2), Instructions to Offerors, “Submission, modification, revision, and withdrawal of proposals,” page 117, refers to “the first page” of the proposal. Please confirm that the first page is the same as the proposal cover.

ANSWER: Yes, “the first page” of the proposal is the same as the proposal cover.

The page count starts as page 1 as instructed by FAR 52.215-1.

107) Should the unredacted copies of Parts I and II be identical to the originals information?

ANSWER: Yes, redacted as stated in the solicitation.

108) Additionally, Section L.7. Instructions to Offerors, Proposal Format, page 126, calls for the same information as L.1.(c)(2), though as part of the cover letter. Should this same information be included on both the proposal cover and in the cover letter?

ANSWER: Yes, include the same information as specified in the solicitation

109) Given that this is an electronic submission, would the Government consider removing the requirement to submit unredacted copies of Parts I and II? (This question assumes that the unredacted copies of Parts I and II are supposed to be exactly the same as the originals.

ANSWER: No

110) In Section L.1 Instructions to Offerors, item (f)(9), page 120 states, “If a cost realism analysis is performed, cost realism may be considered by the source selection authority in evaluating performance or schedule risk.” Please confirm that a cost realism analysis will be performed to ensure proposed prices are not so low that they cause a performance or schedule risk, and that proposals with unrealistically low prices will be ineligible for award.

ANSWER: This Solicitation is not for a cost -type contract. No cost realism analysis will be performed.

111) Will the Government allow a reduced font size (such as 8 point) for graphics, tables, and charts, so long as they remain legible?

ANSWER: Yes

112) For the past performance responsibility determination offerors shall provide the awarded contract number/task order, Contracting Officers first and last name, and the

Agency for any projects that have a final report documented in the Contractor

Performance Assessment Reporting System (CPARS).” Where would the Government like offerors to provide this information?

ANSWER: See amendment 1

113) Given the complexity of the nature of this work and necessary knowledge of the

Default Mortgage Servicing industry, will the Government consider adding an experience requirement to the contract requirements as well as managerial Key Personnel to allow for effective contract and project management?

ANSWER: No

114) Past Performance, page 127. The Government states, “…All past performance information and references submitted shall be within three years immediately preceding submission of the proposal. If the offeror has more than 3 relevant past performance references, then the offeror shall provide the most recent 3 references…” Question: Can the past performance information submitted by the small business bidder include efforts where the small business acted as a subcontractor, and, if so, would the Government prefer the point of contact for the reference be the bidder’s prime contractor or the

Government COR or Contracting Officer?

ANSWER: Yes, the offeror can submit a Past Performance Effort where the offeror acted as a Subcontractor. The POC for that Effort needs to be the Contracting

Officer, as stated in the Solicitation in Section L at L.8 Past Performance: “offerors shall provide . . . Contracting Officers first and last name.”

115) Past Performance, page 127. The Government states, “…All past performance information and references submitted shall be within three years immediately preceding submission of the proposal. If the offeror has more than 3 relevant past performance references, then the offeror shall provide the most recent 3 references…” Question: If the small business bidder for this effort is acting as the prime contractor for a proposed team, will the Government accept a past performance reference from a proposed subcontractor?

ANSWER: With a proposed subcontractor, there is difficulty in having confidence in the accuracy and reliability of their past performance evaluation due to their self interest in benefiting from a potential award, therefore the agency will not accept references from a biased third party.

116) Section L.1.(f)(10), Instructions to Offerors, “Contract award,” page 121, states:

“A written award or acceptance of proposal mailed or otherwise furnished to the successful offeror within the time specified in the proposal shall result in a binding contract without further action by either party.” Could you please clarify that following acceptance of proposal, HUD would issue a contract to the successful offeror and that the successful offeror would then have the opportunity to review and respond with any questions or clarifications, if appropriate, to the issued contract before it becomes binding?

ANSWER: During the pre-award phase the potential awarded offeror will have the opportunity to review the pending contract.

117) Potential Organizational Conflicts of Interest, pages 121-122, outlines scenarios of a possible OCI on the part of the Offeror. If the Offeror is aware of issues that could possibly be perceived as a potential OCI, then the Offeror would submit an OCI statement outlining the issues and plans to mitigate against them. How should the Offeror submit an OCI statement? Should the Offeror submit the OCI statement at the same time as proposal submission, but as a separate document not included with the proposal? Or should this be submitted as an appendix to the technical proposal, even though the RFP does not call for appendices?

ANSWER: The Offeror should submit an OCI statement at a separate document included in the Book II Business proposal.

118) In Section L.6 Proposal Content, (b), RFP page 123 states, “The number of proposals required is one (1) copy original Parts I and II and two (2) (one redacted/one unredacted) copies of Part I, and (1) one unredacted copy of Part II.” Section L.7

Instructions, Proposal Format, on RFP page 125 states, “Two (2) each electronic or digital copies; one (1) redacted copy and one (1) un-redacted/original version (*see note below) of Part I of the Proposal, and one (1) unredacted electronic or digital copy of Part II of the

Proposal.” Please confirm offerors should submit a total of four files: one (1) unredacted/original version of Part I, one (1) redacted version of Part I, one (1) unredacted/original version of Part II, and one (1) unredacted/original version of the

Pricing Sheet.

ANSWER: Yes, confirmed one (1) unredacted/original version of Part I, one (1) redacted version of Part I, one (1) unredacted/original version of Part II, and one (1) unredacted/original version of the Pricing Sheet.

119) In Section L.6. Proposal Content, (d)(2), page 124 “The offeror shall provide information to support the offeror’s proposed costs or prices as prescribed elsewhere in

Instructions to Offerors for Part II – Business Proposal.” Additionally, Section L.9.

General Instructions (C), page 131, the RFP says, “If the offeror proposes annual cost of living increases, the offeror must support the proposed increases with historical and relevant market index information.” Could HUD please confirm a cost breakdown or cost narrative is not required per L.7 Instructions to Offerors and Section L.9 General

Instructions. If Offerors are required to provide detail in addition to Attachment 6 –

Pricing Sheet, can HUD please include submission details in Section L.7 or L.9.

ANSWER: A cost breakdown is not required, however, if a vendor elects to increase their price per year they are required to explain the cost increase.

120) Given LPTA evaluations are meant for requirements where the agency can comprehensively and clearly describe minimum requirements in terms of performance objectives, measures and standards to determine the acceptability of offers, how does the current evaluation structure align with this requirement where the agency seeks to evaluate “understanding” and a “logical and feasible design”?

ANSWER: At minimum the Offeror shall demonstrate their understanding of the services to be provided, and their strategy and approach to meeting the tasks outlined in the PWS including all procedures to complete the tasks

121) In Section L.6. Proposal Content, (e)(2) “Size limits of Parts I and II” on page 124 mandates the use of 12-point font. Could HUD please confirm that for proposal information such as graphics, charts, tables, and text boxes, we may use a smaller point size as long as it remains legible?

ANSWER: Yes, information such as graphics, charts, tables, and text boxes, may be used in a smaller point size. The font size for graphics, charts, tables, and text boxes cannot be smaller than 5-point font size.

122) In Section L.7 Instructions to Offerors, page 125 states, “page count shall be consecutively numbered starting on the first page of each Volume.” In the same section, page 127 states, “Pages within each volume shall be numbered consecutively starting with "1" including any exhibits, attachments, etc.” Please confirm offerors should number consecutively starting on the title page, and continuing through all sections and appendices, instead of numbering pages consecutively within specific sections (e.g., numbering Part I Section A consecutively 1-35 and Part I Section B consecutively 1-15).

ANSWER: Confirmed, offerors should number consecutively starting on the title page and continuing through all sections and appendices.

123) 15. Section L.7. Instructions to Offerors, Proposal Format, page 125, calls for submission of:

· Two (2) each electronic or digital copies.

· One (1) redacted copy of Part I of the Proposal.

· One (1) un-redacted/original version of Part I of the Proposal.

· One (1) unredacted electronic or digital copy of Part II of the

Proposal.

124) Does the use of the terms “electronic” and “digital” have any meaning beyond the fact that the proposal will be submitted via e-mail?

ANSWER: No, the terms “electronic” and “digital” do not have any meaning beyond the fact that the proposal will be submitted via e-mail.

125) Also, with reference to “Two (2) each electronic or digital copies,” does this mean two proposal copies containing both Parts I and II together?

ANSWER: As instructed 1 (one) unredacted technical proposal. 1 (one) redacted technical proposal. 1 (one) Volume II redacted business proposal. 1 (one) unredacted business proposal.

– In Section L.7 Instructions to Offerors, Proposal Format, page 125 states, “Each copy must contain searchable electronic copies of all documents contained in Part

I or Part II of the proposal, separated by file folder indicating the corresponding

Part…