Solicitation Number 86616025R00002 Mortgagee Compliance Manager MCM 4.0 Conformed Solicitation Copy Amendment 0001.pdf

SOLICITATION, OFFER AND AWARD

4. TYPE OF SOLICITATION2. CONTRACT NUMBER 3. SOLICITATION NUMBER

7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7)

System (DPAS) - Code of Federal Regulations - at 15 CFR 700.

6. REQUISITION/PURCHASE NUMBER

NOTE: In sealed bid solicitations "offer" and "offeror" mean "bid" and "bidder".

NEGOTIATED (RFP) REQUEST FOR

SEALED BID (IFB) INVITATION FOR BID

5. DATE ISSUED

1. This Contract is a Rated Order under the Defense Priorities and Allocations RATING PAGE OF PAGES

C. E-MAIL ADDRESS

EXT.NUMBERAREA CODE

B. TELEPHONE (NO COLLECT CALLS)A. NAME

10. FOR

INFORMATION

CALL:

CAUTION: LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-1. All offers are subject to all terms and conditions contained in this solicitation.

(Date)(Hour) local timeuntildepository located in copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if hand carried, in the

SOLICITATION

9. Sealed offers in original and

PART IV - REPRESENTATIONS AND INSTRUCTIONS

OTHER STATEMENTS OF OFFERORS

EVALUATION FACTORS FOR AWARD

INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS

REPRESENTATIONS, CERTIFICATIONS AND

LIST OF ATTACHMENTS

CONTRACT CLAUSES

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

I

J

K

L

M SPECIAL CONTRACT REQUIREMENTS

CONTRACT ADMINISTRATION DATA

DELIVERIES OR PERFORMANCE

INSPECTION AND ACCEPTANCE

PACKAGING AND MARKING

DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

SUPPLIES OR SERVICES AND PRICES/COSTS

SOLICITATION/CONTRACT FORM

PART II - CONTRACT CLAUSESPART I - THE SCHEDULE

H

G

F

E

D

C

B

A

SEC. DESCRIPTION PAGE(S) (X) DESCRIPTION SEC. (X)

11. TABLE OF CONTENTS

18. OFFER DATE17. SIGNATURE

SUCH ADDRESS IN SCHEDULE.

IS DIFFERENT FROM ABOVE - ENTER

15C. CHECK IF REMITTANCE ADDRESS

EXTENSIONNUMBERAREA CODE

15B. TELEPHONE NUMBER

(Type or print)AND

ADDRESS

OF

OFFEROR

CODE FACILITY

16. NAME AND TITLE OF PERSON AUTHORIZED TO SIGN OFFER15A. NAME

DATEAMENDMENT NO.DATEAMENDMENT NO.

and related documents numbered and dated):

amendments to the SOLICITATION for offerors

(The offeror acknowledges receipt of

14. ACKNOWLEDGEMENT OF AMENDMENTS

CALENDAR DAYS (%)30 CALENDAR DAYS (%)20 CALENDAR DAYS (%)10 CALENDAR DAYS (%)

(See Section I, Clause No. 52.232.8)

13. DISCOUNT FOR PROMPT PAYMENT

designated point(s), within the time specified in the schedule.

by the offeror) from the date for receipt of offers specified above, to furnish any or all items upon which prices are offered at the price set opposite each item, delivered at the

NOTE: Item 12 does not apply if the solicitation includes the provisions at 52.214-16, Minimum Bid Acceptance Period.

OFFER (Must be fully completed by offeror)

IMPORTANT - Award will be made on this Form, or on Standard Form 26, or by other authorized official written notice.

28. AWARD DATE

(Signature of Contracting Officer)

27. UNITED STATES OF AMERICA

25. PAYMENT WILL BE MADE BYCODE 24. ADMINISTERED BY (If other than Item 7)

ITEM

(4 copies unless otherwise specified)

23. SUBMIT INVOICES TO ADDRESS SHOWN IN

41 U.S.C. 3304 (a) ( 10 U.S.C. 3204 (a) (

22. AUTHORITY FOR USING OTHER THAN FULL AND OPEN COMPETITION UNDER THE

21. ACCOUNTING AND APPROPRIATION20. AMOUNT19. ACCEPTED AS TO ITEMS NUMBERED

AWARD (To be completed by government)

CODE

X

11:00 423

X

X

X

X

X

X

X

X

X

X

X

PAGE(S)

AUTHORIZED FOR LOCAL REPRODUCTION

Previous edition is unusable

STANDARD FORM 33 (REV. 12/2022)

Prescribed by GSA - FAR (48 CFR) 53.214(c)

12. In compliance with the above, the undersigned agrees, if this offer is accepted within _____60_________ calendar days (60 calendar days unless a different period is inserted

PROPOSAL

UNITED STATES CODE AT:

26. NAME OF CONTRACTING OFFICER (Type or print)

Solicitation Number 86616025R00002

4.0 Mortgagee Compliance Manager (MCM)

Conformed Copy Amendment 0001

TABLE OF CONTENTS

SECTION B – Services and Prices/Costs 2 SECTION C – Description/Specifications 8 SECTION D – Packaging and Marking 45 SECTION E – Inspection and Acceptance 46 SECTION F – Deliveries or Performance 47 SECTION G – Contract Administration Data 48 SECTION H – Special Contract Requirements 51 SECTION I – Contract Clauses 56 SECTION J – List of Attachments 98 SECTION K – Representations, Certifications, and Other 99

Statements of Bidders SECTION L – Instruction, Conditions, and Notices to Offerors or Respondents 112 SECTION M –Evaluation Factors for Award 127

SECTION B – SUPPLIES OR SERVICES AND PRICE/COSTS

B.1 CONTRACT DEFINITION – REQUIREMENTS

The U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Office of Single-Family Asset Management (OSFAM), requires Contractor support to provide pre- and post-conveyance activities associated with acquisition, claims, and dispositions of HUD insured assets, to ensure that HUD assets are protected and preserved.

This Solicitation is being accomplished under FAR 15. This is a 100% Total Small Business Set-Aside.

This is a hybrid Fixed-Unit-Rate, Single Award, Requirements Type Contract with Task Order Awards as defined at Subpart 16.504 of the Federal Acquisition Regulation and in Section I, Clause 52.216-22, Indefinite Quantity, herein. Services provided by the Contractor under the contract shall be obtained as stated in HUDAR 2452.216-78, Ordering Procedures. Services or supplies provided by the contractor under this contract shall be secured by the issuance of delivery orders (for supplies) or task orders (for services). Orders shall be placed in accordance with the following clauses: FAR 52.216-18, Ordering; FAR 52.216-19, Order Limitations; and with [] Delivery Ordering Procedures, or [X] Task Ordering Procedures. Task orders will be issued against the contract on an as needed basis.

B.2 CONTRACT TYPE

The contract is Firm-Fixed Price (FFP). The offeror shall propose a firm-fixed price that will be paid in monthly increments for acceptable performance across all MCM 4.0 requirements. MCM

4.0 involves variable workloads across the tasks described in the PWS. The monthly firm-fixed price is consideration for the contractor performing all required tasks within the scope of the PWS for that month. The offeror shall burden its firm-fixed price with all costs of performance under the PWS, including transition in and transition out tasks. The firm-fixed price paid in monthly increments for acceptable performance in the preceding months will be the contractor's total compensation. Such tasks will be assigned through P260. Once assigned, the contractor shall complete the task in accordance with the standards in the PWS. HUD provides the following estimates and historical data to inform the offeror’s proposed pricing. These estimates represent the best data available to HUD, but HUD does not and cannot predict the specific levels of effort necessary to complete all required tasks under MCM 4.0. The MCM 4.0 Contractor will assume the risk of greater than anticipated volume with no increase to the firm-fixed price, while HUD will assume the risk of lower than anticipated volume with no decrease to the firm-fixed price.

B.3 PERIOD OF PERFORMANCE

This contract will consist of one (1) 12-month base year and four (4) 12-month option years, If exercised.

B.4 SERVICES

The Contractor shall provide the services in accordance with the Performance Work Statement (PWS) in Section C of this Solicitation.

B.5 PAYMENT

The monthly firm-fixed price covers the contractor’s completion of all necessary tasks within the PWS for that month. HUD has provided historical estimates (Attachment 2) to assist the offeror with their pricing. These estimates are the best available to HUD, but they cannot guarantee the exact effort needed to finish all tasks under MCM 4.0. The MCM 4.0 Contractor will take on the risk of higher-than-expected workloads without an increase in the Firm-Fixed Price, while HUD will bear the risk of lower-than-expected workloads without a decrease in the Firm-Fixed Price.

2452.232-70 PAYMENT SCHEDULE AND INVOICE SUBMISSION (FIXED–PRICE)

(DEVIATION MAY 2017)

(a) Payment schedule. Payment of the contract price (see Section B of the contract) will be made upon completion and acceptance of all work.

(b) Submission of invoices.

(1) The Contractor shall obtain access and submit invoices to the Department of Treasury Bureau of Fiscal Services’ Invoice Platform Processing System via the Web at URL:

https://fiscal.treasury.gov/ipp/ in accordance with the instructions on the website. To constitute a proper invoice, the invoice must include all items required by the FAR clause at 52.232–25, ‘‘Prompt Payment.’’

(2) To assist the government in making timely payments, the contractor is also requested to include on each invoice the appropriation number shown on the contract award document (e.g., block 14 of the Standard Form (SF) 26, block 21 of the SF– 33, or block 25 of the SF–1449).

(c) Contractor remittance information. The contractor shall provide the payment office with all information required by other payment clauses or other supplemental information (e.g., contracts for commercial services) contained in this contract.

(d) Final invoice payment. The final invoice will not be paid prior to certification by the Contracting Officer that all work has been completed and accepted.

(End of clause)

OPTION PERIOD ONE (1) (DURATION 12 MONTHS)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE

REQUIREMENT

Estimated Quantity

UNIT (S)

FIXED

UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0002

MCM 4.0 Services in accordance with Section C titled Performance Work Statement 12 Months

CLIN 0002AA

Monthly Status Report (PWS section 5.2.8) to include Director’s Report (PWS section 5.2.8.1) MCM CWCOT Report (PWS section 5.2.8.2) and Ad Hoc reports (PWS section 5.2.8.3) 12 Each NSP NSP

CLIN 0002AB

Summary Report Transition-Out Activities 1 Each NSP NSP

OPTION PERIOD ONE (1) TOTAL

B.6 PRICING SCHEDULE

BASE Period (June 1, 2025, Through May 31, 2026)

CONTRACT

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE

REQUIREMENT

Estimated Quantity

UNIT (S)

FIXED

UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0001

MCM 4.0 Services in accordance with Section C titled Performance Work Statement (PWS) 12 Months

CLIN 0001AA

Monthly Status Report (PWS section 5.2.8) to include Director’s Report (PWS section 5.2.8.1) MCM CWCOT Report (PWS section 5.2.8.2) and Ad Hoc reports (PWS section 5.2.8.3) 12 Each NSP NSP

CLIN 0001AB

Summary Report Transition- Out Activities 1 Each NSP NSP

BASE YEAR TOTAL

OPTION PERIOD TWO (2) (DURATION 12 MONTHS)

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE

REQUIREMENT

Estimated Quantity

UNIT (S)

FIXED

UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0003

MCM 4.0 Services in accordance with Section C titled Performance Work Statement 12 Months

CLIN 0003AA

Monthly Status Report (PWS section 5.2.8) to include Director’s Report (PWS section 5.2.8.1) MCM CWCOT Report (PWS section 5.2.8.2) and Ad Hoc reports (PWS section 5.2.8.3) 12 Each NSP NSP

CLIN 0003AB

Summary Report Transition-Out

OPTION PERIOD TWO (2) TOTAL

OPTION PERIOD THREE (3) (Duration 12 MONTHS)

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE

REQUIREMENT

Estimated Quantity

UNIT (S)

FIXED

UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0004

MCM 4.0 Services in accordance with Section C titled Performance Work Statement 12 Months

CLIN 004AA

Monthly Status Report (PWS section 5.2.8) to include Director’s Report (PWS section 5.2.8.1) MCM CWCOT Report (PWS section 5.2.8.2) and Ad Hoc reports (PWS section 5.2.8.3) 12 Each NSP NSP

CLIN

0004AB

Summary Report Transition-Out

OPTION PERIOD THREE (3) TOTAL

OPTION PERIOD FOUR (4) (Duration 12 MONTHS)

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE

REQUIREMENT

Estimated Quantity

UNIT (S)

FIXED

UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0005

MCM 4.0 Services in accordance with Section C titled Performance Work Statement 12 Months

CLIN

0005AA

Monthly Status Report (PWS section 5.2.8) to include Director’s Report (PWS section 5.2.8.1) MCM CWCOT Report (PWS section 5.2.8.2) and Ad Hoc reports (PWS section 5.2.8.3) 12 Each NSP NSP

CLIN

0005AB

Summary Report Transition-Out Activities 1 Each NSP NSP

OPTION PERIOD FOUR (4) TOTAL

BASE AND ALL OPTIONS

FAR Clause 52.217-8 (Duration shall not exceed 6 Months)

LINE ITEM

NUMBER

(CLIN)

SUPPLIES/SERVICE

REQUIREMENT

Estimated Quantity

UNIT (S)

FIXED

UNIT

PRICE

TOTAL

ESTIMATED

EXTENDED

PRICE

CLIN 0006

MCM 4.0 Services in accordance with Section C titled Performance Work Statement 6 Months

CLIN

0006AA

Monthly Status Report (PWS section 5.2.8) to include Director’s Report (PWS section 5.2.8.1) MCM CWCOT Report (PWS section 5.2.8.2) and Ad Hoc reports (PWS section 5.2.8.3) 6 Each NSP NSP

CLIN

0006AB

Summary Report Transition-Out

52.217-8 Duration shall not exceed 6 Months TOTAL

SECTION C – DESCRIPTION SPECIFICATIONS

Performance Work Statement (PWS)

Mortgagee Compliance Manager (MCM) 4.0

Vision Statement

Successfully complete pre and post conveyance activities associated with acquisition, claims, and dispositions of the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Office of Single Family Asset Management (OSFAM) insured assets to ensure that HUD assets are protected and preserved.

1 General Information

1.1 Scope of Work

The Federal Housing Administration (FHA), an organizational unit within the Department of Housing and Urban Development (HUD), administers the Single-Family Mortgage Insurance Program. FHA insures approved lenders against the risk of loss on loans they finance for the purchase, and in some instances, rehabilitation of single-family homes. In the event of a default on an FHA insured loan, the lender acquires title to the property by foreclosure, a deed-in-lieu of foreclosure, or other acquisition method, and then the lender files a claim for insurance benefits and conveys the property to HUD. As a result of acquisitions through the mortgage insurance program and other programs, HUD has a need to manage and sell a sizable inventory of single-family homes in a manner that promotes home ownership, preserves communities, and maximizes return to the FHA insurance funds. HUD is the largest single seller of real estate in the United States. The HUD FHA OSFAM NSC’s office is in Oklahoma City, OK, and its website is https://www.hud.gov/program_offices/housing/sfh/nsc.

The HUD FHA Office of Single Family Asset Management (OSFAM), National Servicing Center (NSC) requires contractor support to provide Mortgagee Compliance Manager (MCM) services. 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). Services include:

Pre-Conveyance Activities Post Conveyance Activities Transition Services

NOTE: Descriptions of particular tasks can be found in Section 5 Specific Tasks Page 24

1.2 Background

HUD administers the Real Estate Owned (REO) disposition program through four Homeownership Centers (HOC) (Solicitation Attachment 1) located in Philadelphia, PA;

Atlanta, GA; Denver, CO; and Santa Ana, CA. Each HOC is responsible for a designated geographic area.

Since 1999, HUD has been outsourcing the disposition of its REO inventory to Management and Marketing (M&M) Contractors. There are three (3) types of M&M Contractors: (1) Mortgagee Compliance Manager (MCM); (2) Field Service Manager (FSM); and (3) Asset Manager (AM).

HUD has developed a disposition structure for the management and marketing of REO inventory that streamlines its operations, capitalizes on the expertise of its potential Contractors, and provides flexibility to meet changing market conditions in the REO industry. The following is a summary of HUD's disposition structure which highlights the purpose and objectives of each M&M Contractor:

Mortgagee Compliance Manager (MCM): The Mortgagee Compliance Manager performs a variety of pre- and post-property conveyance services to ensure that HUD's interests are protected. These services include:

pre-conveyance and post-conveyance activities associated with claims, acquisition, and disposition of FHA Single Family insured assets;

verifying that the mortgagee has protected and preserved delinquent FHA insured property against damages;

completing regulatory and HUD servicing and foreclosure activities;

documenting various information on FHA assets held in the HUD’s REO system of record known as Asset Disposition and Management System/P260

(ADAMS/P260);

reviewing property inspections to ensure the property is in conveyance condition;

assessing provided claim documentation;

resolving conveyance exceptions; and providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities.

Field Service Manager (FSM): Field Service Managers (FSM) provide property maintenance and preservation services consisting of:

verifying pre-conveyance determinations on property conditions, inspecting the property, securing the property, performing cosmetic enhancements/repairs; and providing on-going maintenance. Properties acquired by HUD are assigned to FSMs.

Asset Manager (AM): The AMs are responsible for the marketing and sale of REO property. Multiple AMs are contracted to market HUD-owned properties within their selected contract area within their geographic HOC areas.

Regarding the Mortgagee Compliance Manager (MCM) Contractor, HUD maintains an official public webpage identifying its current MCM Contractor with contact information online at https://www.hud.gov/program_offices/housing/sfh/nsc/mcm. Current and historical conveyance request data for fiscal year (FY) 2018 through FY 2024 year to date is referenced in Appendix A

– MCM Historical Data (Solicitation Attachment 2) . Most MCM pre and post conveyance work is completed using HRSR. However, some work may be initiated or sent via email, fax, or by mail, which requires the scanning and uploading of documents into the HRSR. At the time of the release of the Solicitation for this PWS HUD is currently using a system called “ADAMS/P260” (sometimes referred to simply as “P260”) as its HRSR.”. The current HRSR Portal, which is also referred to as the P260 Portal, is https://www.hudp260.com/. HUD’s current contractor for P260 is Yardi. The Yardi P260 Step Diagram is located in Appendix B•(Solicitation Attachment 3).

1.3 Constraints

The Contractor’s services identified in this PWS shall adhere to all applicable laws, regulations, and policies, standards, and conventions, including but not limited to the laws, regulations, policies, standards, and conventions identified by HUD. The Contractor shall adhere to the constraints listed below”: “If there is a conflict between this Contract’s PWS and any applicable laws, regulations (including HUD Handbook 4000.1), and policies, standards, and conventions, the Contractor shall adhere to the applicable laws, regulations (including HUD Handbook 4000.1), and policies, standards, and conventions. The Contractor shall adhere to the constraints listed below:

Constraint Link Additional information

24 CFR Part 17, HUD

Administrative Claims https://www.ecfr.gov/cur rent/title-24/subtitle- A/part-17?toc=1

24 CFR Part 203, HUD Single Family Mortgage Insurance https://www.ecfr.gov/cur rent/title-24/subtitle- B/chapter-II/subchapter- B/part-203?toc=1

HUD Handbook

4000.1, HUD

FHA Single Family Housing Policy Handbook

HUD Client Information Policy System (HUDCLIPS) webpage listing HUD Housing Handbooks, https://www.hud.gov/pro

Please note, a PDF file of this Handbook is located at HUDCLIPS website and the sections referenced below can be found in the PDF. The sections referenced below are of particular relevance to MCM services.

gram_offices/administrat ion/hudclips/handbooks/ hsgh https://www.hud.gov/pro gram_offices/housing/sf h/handbook_4000-1

HUD FHA OSFAM

Handbook 4000.1 information page, https://www.hud.gov/pro gram_offices/housing/sf h/handbook_4000-1 o HUD Handbook 4000.1 Section II Origination Through Post- Closing/Endorsement Part D Appraiser and Property Requirements for Title II Forward and Reverse Mortgages o HUD Handbook 4000.1 Section III Servicing and Loss Mitigation Part A Title II Insured Housing Programs Forward Mortgages o HUD Handbook 4000.1 Section III Servicing and Loss Mitigation Part B Title II Insured Housing Programs Reverse Mortgages o HUD Handbook 4000.1 Section IV Claims and Disposition Part A Title II Claims o HUD Handbook 4000.1 Section IV Claims and Disposition Part B Title II Disposition o HUD Handbook 4000.1 Section V Quality Control, Oversight, and Compliance Part A Quality Control of Lenders and Mortgagees o HUD Handbook 4000.1 Section V Quality Control, Oversight, and Compliance Part E Enforcement o HUD Handbook 4000.1 Appendix 3.0

– Post-Endorsement Fees and Charges By Location o HUD Handbook 4000.1 Appendix 5.0

– HUD Schedule of Standard Possessory Action and Deed-In-Lieu of Foreclosure Attorney Fees o HUD Handbook 4000.1 Appendix

6.0 – First Legal Actions To Initiate Foreclosure And Reasonable Diligence Time Frames o HUD Handbook 4000.1 Appendix

7.0 – Property Preservation Allowances and Schedules

Section 508 Workforce Investment standards at 29 USC 701 et seq., and 29 USC 794d

Act of 1998, Pub. L.

105-220 (amended Section 508 of the Rehabilitation Act), https://www.govinfo.gov /content/pkg/PLAW- 105publ220/pdf/PLAW- 105publ220.pdf

29 USC 701 et seq., https://uscode.house.gov/ view.xhtml?path=/prelim @title29/chapter16&edit ion=prelim

29 USC 794d, Electronic and Information Technology, https://www.section508.

gov/manage/laws-and-policies/section-508-law/#:~:text=individuals %20with%20disabilities %20who%20are%20me mbers%20of%20the%20 public%20seeking,who% 20are%20not%20individ uals%20with

Records Management laws and regulations

The Federal Records Act, 44 USC Chapters 21, 29, 31, 33, https://uscode.house.gov/ view.xhtml?req=granulei d%3AUSC-prelim-title44&saved=L3ByZW xpbUB0aXRsZTQ0L2N oYXB0ZXIyMQ%3D% 3D%7CZ3JhbnVsZWlk OlVTQy1wcmVsaW0td Gl0bGU0NC1jaGFwdG VyMjE%3D%7C%7C% 7C0%7Cfalse%7Cprelim &edition=prelim

The Contractor shall comply with all applicable records management laws and regulations, as well as National Archives and Records Administration (NARA) records policies, including but not limited to the Federal Records Act (44 USC Chapters. 21, 29, 31, 33), and NARA regulations at 36 CFR Chapter XII Subchapter B. These policies include the preservation of all records created or received, regardless of form (paper, electronic, etc.) or characteristics, mode of transmission (email, fax, etc.), or state of completion (draft, final, etc.).

NARA Regulations at 36 CFR Chapter XII, Subchapter B, https://www.ecfr.gov/cur rent/title-36/chapter- XII/subchapter-B

The Contractor shall gain and maintain access to the following systems:

o FHA Connection o HUD’s REO System of Record

(HSRS)

o Single Family Acquired Asset

Management System (SAMS) o Single Family Insurance System

(SFIS or A-43C) The Contractor shall sign up to the following newsflash to stay abreast of all regulations and policy changes:

o FHA Single Family Housing

Industry News (FHA INFO) email:

FHAINFO@public.govdelivery.c om

Commissioners Adjusted Fair Market Value

(CAFMV)

Proprietary and will only be provided to the contractor after contract award.

1.4 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform the work of a policy, decision making or management nature, i.e., inherently Government functions. All decisions relative to programs supported by the Contractor shall be the sole responsibility of the Government

1.5 Period of Performance

The period of performance shall be for one (1) Base period of 12 months and four (4) 12-month option periods (if exercised).

1.6 Place of Performance

The services to be performed under this contract shall be performed at the Contractor's facility.

1.7 Hours of Operation

The Contractor shall maintain regular office hours (between 8:00 am-4:30 pm) consistent with the awarded HOC jurisdiction time zone, 8 hours a day during the standard work week, and include on-call emergency response.

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.

1.8 Special Qualifications

Not applicable

1.9 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award

1.10 Status Meetings

The Contracting Officer, the Contracting Officer’s Representative (COR) and other Government personnel, as appropriate, may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer may apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor shall apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government.

1.11 Contractor Travel

Travel is not anticipated during the contract period of performance.

1.12 Transition In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 60 calendar day Transition-In period to ensure a smooth transition with the incumbent Contractor.

The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.13 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the 60 calendar day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor contractor is achieved by the end of the new contract Transition-In period.

2 Definitions and Acronyms

In addition to the definitions and acronyms listed below, the definitions and acronyms in HUD Housing Handbook 4000.1 are also applicable to this PWS.

2.1 Definitions

Acquisition - The process through which a real property or mortgage note secured by a real property is conveyed to HUD. Properties and mortgage notes are conveyed (acquired) from a number of sources.

Asset Manager - A HUD Vendor responsible for the marketing of HUD REO properties.

Business/Workdays - Every official workday of the week which are days between and including Monday to Friday. This does not include federal holidays and weekends.

Calendar Day - Any day of the week.

Claims Without Conveyance of Title- A Claim Without Conveyance of Title (CWCOT) is a procedure under which the Mortgagee attempts to secure a third party purchaser for a mortgaged property so that the conveyance to HUD is not required in exchange for mortgage benefits.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

Contracting Officer (CO) - A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officer's Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Conveyance Condition - The standards a property has to meet to be considered ready for conveyance. This includes but is not limited to basic components for habitability and occupancy such as adequate heating and cooling facilities, electrical supply, cooking facilities, hot and cold water supply, sanitary facilities and roof covering.

Cost Estimator Service - A comprehensive industry standard HUD provided cost estimator and valuation service designed to provide repair, replacement, or improvement costs to end users to effectively and efficiently estimate the cost of property preservation and repair. The estimator service contains validated and localized building cost, with web-based access.

Default - When a mortgagor fails to perform under any covenant of the mortgage and the failure continues for thirty days.

Deliverable Anything that can be physically delivered (including electronic deliverables) but may include non-manufactured things such as meeting minutes or reports.

Electronic Transmission A message transmitted electronically in a format displayed on equipment, for example, a personal computer monitor or facsimile machine. The electronic media used to deliver electronic messages displayed on a personal computer monitor includes electronic mail or another method acceptable to HUD.

Fatal Edit Error – Are errors that cause the claim to be rejected. To remedy the fatal error, Mortgagee would need to address the errors if possible and resubmit the claim.

FHA Connection - An Internet-based system that provides FHA business partners and Vendors secure interaction with HUD mainframe systems to perform required reporting and research the origination and servicing history of FHA insured loans.

Field Service Manager - A HUD Vendor responsible for property management, maintenance, and preservation services.

Fiscal Year (FY) - The US government's official accounting year, which begins October 1 of the calendar year and ends on September 30 of the following calendar year.

Government Furnished Property (GFP) - Government-furnished property is property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification.

Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Hard Edit Error – Are errors that suspend the claim, which may be resolved by the submission of information by the Mortgagee.

HUDCLIPS A web-based directory of all of HUD's official policies and directives including notices, Mortgagee Letters, Housing Notices, Handbooks, Code of Federal Regulations and US Codes Titles 12 and 24.

HUD REO System of Record, known as ADAMS/P260- HUDs REO System of Record is an Internet based system that serves as the primary system of record for all REO case management transactions. This system identifies, collects and deposits each delinquent HUD-owned property and tracks the disposition activity from conveyance to sale. The system will also track pre-conveyance activities. This system integrates data from SFIS, FHA Connection, and SAMS Accounting.

Mortgage - A lien on a project to secure construction advances or a permanent loan.

Mortgagee Compliance Manager Vendor responsible for the mortgagee compliance services as defined by HUD.

Mortgagee - The original mortgagee under a mortgage and its successors and assigns, which includes the holders of credit instruments issued under a trust indenture, mortgage, or deed of trust pursuant to which such holders act by and through a trustee therein named.

Mortgagee Neglect - For a mortgage insured on or after January 1, 1977, the failure by a Mortgagee to inspect, or take reasonable action to preserve and protect a property securing an FHA insured mortgage, as required by 24 CFR 203.377. Reasonable action includes initiating foreclosure within the required time frame pursuant to 24 CFR 203.355(b).

Mortgagor - The original borrower under a mortgage and his heirs, executors, administrators and assigns.

Non-Surchargeable Damage - Damage to the property that is not the responsibility of the Mortgagee because it was not caused by Mortgagee Neglect, fire, flood, earthquake, hurricane, tornado, or for condominiums, boiler explosions.

Not Separately Priced (NSP) - the unit price for the NSP line or subline item is included in the unit price of another, related line or subline item.

Occupied-Conveyance - A formal process, through which a Mortgagee receives permission to convey an occupied property to HUD. The term may also be used as a noun to refer to a property conveyed in this manner.

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

Performance Standard - The Contractor's performance level required by the Government.

Performance Work Statement (PWS) - A statement of work for performance-based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Pre Conveyance- Activities associated with a property before it has been conveyed to HUD.

Pre-Foreclosure Sale (PFS) - Also known as a Short Sale, refers to the sale of real estate that generates proceeds that are less than the amount owed on the Property and in which the lien holders agree to release their liens and forgive the deficiency balance on the real estate.

Post Conveyance - Activities associated with a property after it has been conveyed to HUD.

Proposed Rule - Proposed changes to the regulations governing HUD policy as published in the Federal Register.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Control (QC) - All necessary measures taken by the Contractor to assure that the quality of an end product of service shall meet contract requirements.

Real Estate Owned (REO) - An industry term used to describe properties acquired through foreclosure of a mortgage note or deed of trust. Single family properties owned by HUD may be referred to as HUD REO.

Reacquisition - The process by which a Mortgagee conveys to HUD a property that has been previously reconveyed to the Mortgagee.

Re-conveyance - The process of returning a property to a Mortgagee by recording a deed in Mortgagee's name and seeking reimbursement for claims paid plus expenses.

Single Family Acquired Asset Management System (SAMS) - The Single Family Acquired Asset Management System (SAMS) is HUD’s primary system of record for tracking financial and accounting data for properties acquired by HUD.

Single Family Insurance System (SFIS or A-43C) The Single Family Insurance System (SFIS) is a HUD system of record used to maintain the insurance-in-force (IIF) database, which contains accurate and detailed case information on FHA insured single family properties. The Contractor shall access SFIS to verify loan information as deemed necessary to determine insurance status and claims information.

Soft Edit Error - Are errors to the claim that do not stop payment of the claim (claim does not suspend). They may consist of errors that the Mortgagee can fix but does not affect the payment of the claim.

Subcontractor - Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime contractor or a higher tier subcontractor. The Government does not have privity of contract with a subcontractor.

Surchargeable Damage - Damage to the property (1) by fire, flood, earthquake, hurricane, tornado, or for condominiums, boiler explosion; or (2) for mortgages insured on or after January 1, 1977, damage caused by a Mortgagee's failure, as required by 24 CFR 203.377, to inspect or take reasonable action to preserve and protect vacant or abandoned properties.

2.2 Acronyms

Acronym Meaning AM Asset Manager BPO Broker Price Opinion CAFMV Commissioners Adjusted Fair Market Value CFR Code of Federal Regulations CO Contracting Officer COOP Continuity of Operations Plan COR Contracting Officer Representative COS Contract Oversight Specialist CWCOT Claim Without Conveyance of Title DOA Delegation of Authority FHA Federal Housing Administration FOIA Freedom of Information Act FSM Field Service Manager HPIR HUD Property Inspection Report HOA Homeowners Association HRSR HUD REO System of Record HSFDS HUD Single Family Disposition Systems HUD U.S. Department of Housing and Urban Development HUDCLIPS HUD’s Client Information Policy System MCM Mortgagee Compliance Manager NSC National Servicing Center

NSP Not Separately Priced OA Over-allowable OSFAM Office of Single Family Asset Management P&P Preservation and Protection PFS Pre-Foreclosure Sale PRS Performance Requirement Summary PWS Performance Work Statement QA Quality Assurance QC Quality Control QCD Quitclaim Deed QCP Quality Control Plan REO Real Estate Owned SAMS Single Family Acquired Asset Management System SFDMS Single Family Default Monitoring System SFIS or A43C

Single Family Insurance System

3 Government-Furnished Training, Facilities and Equipment

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the Government Services, Facilities, Equipment, Materials and Information described in 3.1 to 3.5 of this PWS.

3.1 Training

After contract award, the Government will provide virtual training to the Contractor’s personnel on the FHA Connection, ADAMS/P260 and SFIS.

3.2 Facilities

Government facilities will not be provided.

3.3 Equipment

Government equipment will not be provided.

3.4 Materials and Information

For the list of materials and information that the Government will provide the Contractor, see HUDAR 2452.227-70, Government Information. The Government will provide the Contractor user access privileges to the SFIS, FHA Connection, HRSR, and SAMS. User access privileges will be granted upon successful completion of required background/security investigations administered by the Government. Copies of required materials will be provided to the Contractor in hard copy or soft copy within 15 days of contract award. All furnished materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period. The following materials will be provided: HRSR Instruction Guidebooks

3.5 Quality Assurance (QA)

The Contractor is solely responsible for ensuring that all performance and deliverables meet all requirements. The Government may perform QA, through any reasonable means, at its discretion.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish all facilities required to perform the services stated within the

PWS.

4.2 Equipment

The Contractor shall furnish all equipment required to perform the services stated within the

PWS.

4.3 Materials

The Contractor shall furnish all materials not provided by the Government that are required to perform the services stated within the PWS.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period of performance.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR upon request or at the end of the contract period.

4.5 Contractor Personnel

The Contractor shall provide the following: (1) a Contract Manager (CM) who shall be responsible for the performance of work; and (2) An alternate (Alternate CM) who shall also be designated to act in the absence of the Contract Manager.

The CM shall be the main point-of-contact. The Alternate CM shall be the alternate point-of-contact.

The CM and Alternate CM are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel”.

The CM and Alternate CM shall have full authority to act on all contract matters relating to daily operations of this contract.

At a minimum, the CM and Alternate CM shall have sufficient technical knowledge of the requirement to understand assignments, guidance, and direction from the COR.

The CM and Alternate CM shall be in the position to actually receive assignment, guidance, and direction from the COR, and also the CO, per HUDAR 2452.237-73, "Conduct of Work and Technical Guidance."

The CM and Alternate CM shall be allocated enough hours to meet the requirement to ensure successful performance. The percentage of effort for the CM shall be 100% dedicated (meaning the individual serving as the CM shall work full-time on this requirement).

The CM and Alternate CM shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions.

The CM shall be available between the hours of 8:00am to 4:30pm Monday through Friday ET, except Federal Holidays or when the Government facility is closed for administrative reasons.

See HUDAR clause 2452.237-70 - Key Personnel in the Key Personnel section of the contract.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees.

Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their workspace area with their name and company affiliation, or at a minimum, "Contractor” after name.

5 Specific Tasks

5.1 Pre-Conveyance Activities

The Contractor shall provide pre-conveyance services for HUD FHA properties. All services shall be provided in accordance with the procedures outlined in HUD Handbook 4000.1, 24 CFR Part 17, and 24 CFR Part 203 as listed in section 1.3 Constraints of the PWS. Services shall include:

Extensions of Time Requests Over-Allowable Requests Occupied Conveyance Surchargeable Damages

The Contractor shall use HRSR to complete all services. HSRS instructions and user guides will be provided as indicated in section 3.4 Materials and Information of the PWS.

5.1.1 Extension of Time Requests

The Contractor shall review and process mortgagee requests for extension of time and CWCOT extension of time requests within five (5) business days following receipt of a request. The day the request is submitted in HRSR counts as the first business day to complete the review. The Contractor shall review the request in HRSR and either approve or deny the extension requests in accordance with the applicable regulations, guidance, and procedures outlined in HUD Handbook 4000.1.

The Contractor shall notify the Mortgagee within five (5) business days from receipt of the request explaining the reasons why the extension request was approved or denied. If the Contractor grants an initial extension of time, and the Mortgagee requires additional time, the Contractor shall review the subsequent extension requests. Extensions shall not be granted for more time than required to complete the actions for conveyance or CWCOT. The Contractor shall process and may approve requests for a total of no more than 90 calendar days for conveyance and 120 calendar days for CWCOT. After the 90 calendar days for conveyance and 120 calendar days for CWCOT have been approved by the Contractor, HRSR automatically sends additional extension requests to the COR for review.

5.1.1.1 Appeal of Extension Denial

The Contractor shall review appeals of extension denial within three (3) business days of receipt of request and make a final determination. The day the request is submitted in HRSR counts as the first business day to complete the review. The Contractor shall notify the Mortgagees explaining why the extension appeal request was approved or denied in accordance with the applicable regulations, guidance, and procedures outlined in HUD Handbook 4000.1.

Mortgagees’ have five (5) business days from the date of denial to submit an extension of time request for reconsideration. If an appeal for extension request is received after the fifth (5) business day, the Contractor shall still process the appeal and make a final determination for extension within three (3) business days of receipt of request.

5.1.2 Over-Allowable Requests

The Contractor shall review and process over-allowable requests for CWCOT and Forward Mortgages. The Contractor shall approve or deny the requested expenses within five (5) business days of receipt of request. The day the request is submitted in HRSR counts as the first business day to complete the review. The Contractor’s notification to the Mortgagee of the approval or denial, within the previously stated time frame, shall explain the reasons why the over-allowable request was approved or denied.

The Contractor shall evaluate all requests for reimbursement to determine if the request is reasonable and justifiable. The Contractor shall determine costs using HUD provided cost estimator service. If the Contractor determines that the expenses are not justified, the Contractor shall deny the request in accordance with applicable regulations, guidance, and procedures outlined in HUD Handbook 4000.1.

Performance Standards:

a) Standard:100% of over-allowable requests for CWCOT, and Forward Mortgages are reviewed and processed within five (5) business days of receipt of request.

AQL: 95% of over-allowable requests for CWCOT and Forward Mortgages are reviewed and processed within five (5) business days.

5.1.2.2 Appeal of Over-Allowable

The Contractor shall review and approve or deny Appeals of Over-Allowable within three (3) business days of receipt of request in accordance with applicable regulations, guidance, and procedures outlined in HUD Handbook 4000.1. The day the appeal is submitted in HRSR counts as the first business day to complete the review. Mortgagees have five (5) business days from the date of denial to submit an over-allowable appeal request for reconsideration. If an appeal for an over-allowable request is received after the fifth business day, the Contractor shall still process the appeal within three (3) business days.

5.1.3 Occupied Conveyance

The Contractor shall process all requests (received by mail or email) for occupied conveyance within 30 calendar days of receipt. The Contractor shall upload into HRSR all documentation including date stamped envelopes for each occupied conveyance request. The requests shall be evaluated in accordance with 24 CFR Part 203.670 Conveyance of Occupied Property through 24 CFR Part 203.680 Approval of Occupancy After Conveyance and HUD Handbook 4000.1 Occupied Conveyance.

The Contractor shall request that the FSM conduct an inspection within 48 hours after receipt of occupied conveyance to determine whether the property is habitable, free of lead-based paint hazards, and free of evidence that a hazardous substance was stored for one year or more, or known to have been released, or disposed of at the property.