SOL-OAA-15-000018_Q A_Amendment__1.pdf

AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT 1. CONTRACT ID CODE

2. AMENDMENT/MODIFICAITON NO. 3. EFFECTIVE DATE 4. REQUISITION/PURCHASE REQ. NO. 5. PROJECT NO. (If applicble)

7. ADMINISTERED BY (If other than Item 6) CODE

STANDARD FORM 30 (REV. 10-83)

Prescribed by GSA FAR (48 CFR) 53.243

FACILITY CODE

9A. AMENDMENT OF SOLICIATION NO.

9B. DATED (SEE ITEM 11)

10A. MODIFICATION OF CONTRACT/ORDER NO.

10B. DATED (SEE ITEM 13)

11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS

The above numbered solicitation is amended as set forth in Item 14. The hour and date specified for receipt of Offers is extended, is not extended.

Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended, by one of the following methods:

(a)By completing items 8 and 15, and returning copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer submitted;

or (c) By separate letter or telegram which includes a reference to the solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment your desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified.

12. ACCOUNTING AND APPROPIRATION DATA (If required)

13. THIS ITEM ONLY APPLIES TO MODIFICATION OF CONTRACTS/ORDERS.

IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.

CHECK ONE A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER

NO. IN ITEM 10A.

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc. ) SET FORTH IN ITEM 14, PURSUANT TO THE AUTHORITY OF FAR 43.103(b).

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:

D. OTHER (Specify type of modification and authority)

E. IMPORTANT: Contractor is not, is required to sign this document and return copies to the issuing office.

Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.

15C. DATE SIGNED

15A. NAME AND TITLE OF SIGNER (Type or print)

16C. DATE SIGNED

16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

14. DESCRIPTION OF AMENDMENT/MODIFICATION ( Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

PAGE OF PAGES

6. ISSUED BY CODE

8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code) (X)

CODE

15B. CONTRACTOR/OFFEROR

(Signature of person authorized to sign)

16B. UNITED STATES OF AMERICA

(Signature of Contracting Officer)

NSN 7540-01-152-8070

Previous edition unusable

SBU: CONTRACT QUESTIONS RESPONSE dtd 12-29-2014. Request for Proposal (RFP) No. SOL-OAA-14-000161 Loan Management Services

1. Has a contractor performed similar work to this for the government in the past? If available, please provide the incumbent contract number.

Response: Yes. AID-OAA-10-C-00032

2. If you are unable to provide a contract number, is it safe to assume this is a new requirement for the government?

Response: This is not a new requirement.

3. Is there any requirement regarding a rating, such as Fitch Rating, for a financial institution providing services under this RFP?

Response: The contractor requirements include the ability to perform the proposed statement of work as outlined in Section C of the Proposal, and to agree to the terms and conditions, and contract clauses stated in Sections D through I of the Proposal.

4. Is this RFP exclusive for U.S. organizations? Would it be possible to include in a bidding team an European institution?

Response: RFP is for U.S. organizations only.

5. Can you please disclose the commercial bank or banks in Washington D.C. which currently provides the services sought in the RFP? (Specifically, the one cited for Direct Loans on page 10 and subsidiary and its commercial holder of HG Loans cited on page 11.)

Response: PNC Midland Loan Services(Washington D.C.)

6. Are there additional services sought in this RFP that the current commercial bank contracted does not currently provide (ie does this RFP include additional items in the SOW)?

Response: The proposed statement of work is substantially similar to services currently provided.

7. Is any contractor currently providing fiscal management reporting for the DCA guarantee portfolio program, and if so, can you name them?

Response: PNC Midland Loan Services(Washington D.C.) is providing Guarantee Fee Collection services.

8. Does the interactive reporting tool referenced on pages 17 and 18 currently exist? If so, will the contractor be able to purchase and own this tool (website)? If not, will USAID allow the costs for building and maintaining such a tool to be built into the budget?

Response: 14. Financial Data: The contractor shall demonstrate/provide USAID with all financial information from records maintained by the offeror necessary to prepare financial statements and other reports on the status of the loans. Upon award, The data specification, provided by USAID, shall be furnished on an agreed upon scheduled work plan and using an electronic format that allows the contractor/agency to maintain related general ledger accounts and subsidiary accounts on a current basis. Specifically, the contractor shall provide the financial data that is:

• Maintained in accordance with current Federal Credit accounting statues, standards, regulations;

• Detailed transactional based and identifiable to specific loans;

• In a format to allow interfacing into the agency’s financial management system

(Momentum Financials).

9. Please confirm that on page 19 it states that the proposal must include a website link which will demonstrate the ability to provide interactive loan accounting and management. If this is required, please provide further specifications as to what will be tested so that an offeror can build sufficient example data into the tool.

Response: Website (see page 19): The offeror shall be required to demonstrate/provide sample account information to USAID Washington Office, USAID regional controllers and borrowers through an interactive modular drop down menu on-line web based system allowing the user to select the parameters. The Contractor shall provide web based reporting that allows access to deliverables required of the contractor by the USAID Washington Office and USAID regional controllers and provide a report database that allows access to deliverables required of the contractor by the USAID Washington Office and USAID regional controllers. The contractor shall provide adequate security to deny unauthorized users access to the website.

10. Please confirm that all documents in Section K must be signed and submitted as part of the proposal.

Response: K.4 SIGNATURE By signature hereon, or on an offer incorporating these Representations, Certifications, and Other Statements of Offerors, the offeror certifies that they are accurate, current, and complete, and that the offeror is aware of the penalty prescribed in 18 U.S.C. 1001 for making false statements in offers.

11. Please confirm that the fees estimated for PTA activities and Escrow accounts are not incorporated into the 5 year, $11M budget ceiling.

Response: Receipt of fee payments(page 19): The contractor shall daily determine the fee payments received by wire from participating lenders, using the Cash Link System, and compare these with the amounts due. If no payment is received by the due date or the amount received is different from that appearing in the NPD, the contractor shall notify the participating lender and USAID designated representatives within five days and request payment of any amounts still owing.

12. What systems are currently used for loan management? This will assist in scoping the data transfer effort.

Response: Proprietary system is currently used for loan management.

13. With regard to the data transfer, how much historical data and of what types is expected to be transferred to the contractor’s system? For example, will historical data be aggregated in some way such as monthly or annually?

Response: Historical data is aggregated monthly, quarterly and annually from inception to current date.

14. Are there requirements for archiving data from the old systems?

Response: Archiving data from old systems according to internal agency protocol standards(Automated Directives System)

15. Throughout the RFP each type of loan is clearly demarcated with the number of loans to be managed and number of loans outstanding. However on page 13, the number of loans to be serviced is referenced as 821. Can you please provide a breakdown of these loans by type from the total of 821 so that we may budget staff accordingly.

Response: Breakdown of loans(821) is by worldwide geographical Region(Latin America, Europe, Asia, Africa)

16. Is it required that the B4 Labor Category matrices be included in the cost proposal, or can the offeror submit a complete Excel based budget without these matrices?

Response: It is required that the B4 Labor Category matrices be included in the cost proposal in the offeror’s word document response(and excel as backup only).

17. Can maintenance and licensing costs for the loan accounting software be included in the budget (these are specific costs that are unique to each “customer” in a software program and would be those generated only for the USAID account).

Response: Yes if only generated for the USAID account.

18. Will USAID allow us to charge back wire fees to USAID for wires going to USAID from the contractor?

Response: Yes but only if the language in the legal agreements permits ‘chargeback’ and charged by another entity.

19. Approximately how many loans have to be reconciled for loan balance discrepancies for each annual loan balance verification? How many Offices of the Ministry are contacted and how many are unresponsive?

Response: All loans have to be reconciled.

20. Is there a formal list of contract activities USAID would expect to be audited? Which loans and/or loan guarantees require the verification process?

Response: The activities to be performed for USAID by the contractor under this scope of work are widely varied and the degree of expertise and experienced personnel needed is very high for all loans. This is necessary to insure that the agency’s credit programs are effectively administered and that financial reporting on the activities involved meets the high standards required for audited financial statements. This section includes both overall requirements and specific loan-type requirements.

21. Who will perform the annual loan balance verification process in April 2015 -- the incumbent or the new contractor if one is selected, as the due date is falling within the conversion period?

Response: The offeror is expected to perform the annual loan balance verification. Additional time will be provided if necessary.

22. "DCA provides partial guarantees (usually 50%) in the form of loan portfolio guarantees (LPG's), loan guarantees (LG's), portable guarantees (PG's) and bond guarantees (BG's)." Does contractor have any contract obligations for PG's and BG's?

Response: Offeror is responsible for fee collection and applicable reporting(see report deliverables)

23. “The DCA portfolio can be expected to add approximately 30-40 new guarantee portfolios in each fiscal year with 200 projects during the life of the contract.” How is the contractor notified of new guaranteed and projects and in what format - electronic file or via loan documents? What is the turn around time for setting up the new loan once received?

Response: Offeror/contractor will be notified electronically and the monthly meeting ‘minutes’ of the contractor will include reference to new accounts(pdf file format) in time to setup the accounts for fee collection.

24. How is information in notice sent from USAID to contractor? Is contractor required to "shadow" the payment receipt process on the loan accounting system for loan guarantees to generate notices identical to what is does for Direct Loan process? If not, where is contact information for guaranteed lenders stored?

Response: 4.3 Receipt of Loan Repayments: Payments on the loans in the USAID direct loan portfolio are normally made by wire transfer to the U.S. Treasury accounts at the Federal Reserve Bank of New York. Occasionally, payment is made by other means. The contractor shall daily determine the payments received by wire, using the Treasury’s Collections Information Repository (replacing Cash Link II system (backup)) as the primary supporting documentation_, and compare these with the amounts due. If the amount received by wire or otherwise, is different from that appearing in the NPD, the Contractor shall ascertain the reason for the difference, if possible, notify the borrower and designated Contracting Officer’s Representative (COR) of the difference within 5 days after receipt of payment, and request payment of any amounts still owed. If no payment is received by the due date, the Contractor shall notify the borrower and USAID designated representatives within 5 days of after the due date.

25. What system is used for notifying field personnel of past due amounts and will it transfer to a successor contractor? Is system documentation available for review? If a system needs to be developed, are there current procedures that can be used as a basis for identifying the requirements and size of the system?

Response: Notice of Payment Due is a Proprietary system. Offeror/contractor will provide system.

26. "The contractor shall not be required to undertake collection activities directly with borrowers except for notification of payments due, payments past due and methods of calculation of amounts due and past due." Later in the RFP it references contacting borrowers for missing/unreconciled payments.

What is the obligation of the contractor once we have notified the borrower and USAID of non-payment by the borrower?

Response: The Contractor is required to provide a 45-day notice of potential default and the 620(q) so that Brooke Amendment restrictions be provided to all appropriate USAID Officials.

The Contractor is required to provide a separate report(deliverable) which identifies the countries which should be considered as having 620(q) and Brooke Amendment restrictions should be produced and provided to all appropriate USAID officials.

The Contractor is required to provide the USAID Loan Management Team this information for the monthly Section 620(q) and Brooke Amendment report (‘Interagency Report’).

27. "The contractor shall be responsible for the accurate and timely production of notices of amounts due and past due" Must current payment and past due notices reside in the same notice? Would Past Due payments on notices be a sum (grand total) of payments due would each past due payment be listed separately s with detail (accruals)? For how long are past due notices sent?

Response: Notice of Payment Due shall list the portion of the payment which represents principal, interest, past due amounts, penalties and fees. The notices shall be sent at least 60 days prior to the due date of payments.

DCA Loan Guarantees: The contractor shall notify participating lenders of the amount of fees due to USAID at least 30 days prior to the date such fees are due. USAID will provide information to the contractor necessary to prepare NPD’s within 35 days of the due date of payments. The contractor will not be responsible for the accuracy or timeliness of the information provided to it by USAID for this purpose.

28. "The Contractor is required to provide a 45-day notice of potential default and the 620(q) and Brooke Amendment restrictions be provided to all appropriate USAID Officials." Are loan notices generated after loan is placed into default? Who is ultimately responsible for officially deeming a loan defaulted?

Response: The Contractor is required to provide a 45-day notice of potential default(before loan is in default) and the 620(q) and Brooke Amendment restrictions be provided to all appropriate USAID Officials.

The Contractor is required to provide a separate report which identifies the countries which should be considered as having 620(q) and Brooke Amendment restrictions should be produced and provided to all appropriate USAID officials. The Contractor is required to provide the USAID Loan Management Team this information for the internal monthly Section 620(q) and Brooke Amendment Report (‘Interagency Report’).

29. "Typically, in such cases, a series of defaulted payments is rescheduled to reflect a later maturity date than the original loan." Is there a new amortization schedule provided on rescheduling? Is a new loan number assigned? Does the new loan need to link back to the original loan?

Response: Yes a new amortization schedule will be provided on rescheduling and yes, a new loan number assigned which is linked back to the original loan.

30. How many accounts and what is held in escrow for HG refinanced guaranteed loans currently?

Response: There are 19 HG refinanced guaranteed loans currently. Escrow amounts vary.

31. Where are escrow accounts opened - at the FRBNY or at the contractor's bank? What are permissible investments for escrow cash balances? Are escrow balances ever held as cash deposits on the contractor's balance sheet?

Response: Escrow accounts and permissible investments(if any) are opened according to the language stated in the legal agreement.

32. Can a sample escrow agreement be provided?

Response: NO samples can be provided.

33. To whom are escrow amounts disbursed to and who authorizes the disbursements? Who is making the deposit of funds in the escrow?

Response: Escrow amounts(if applicable) are disbursed according to the legal agreements.

34. How much does a typical escrow account earn, such that a prospective contractor can determine its fee of 1.25% of the earnings. With interest rates so low, is the contractor entitled to any other compensation other than a onetime setup fee and a portion of the interest earnings?

Response: No. For performing these duties, the contractor shall receive the following fees (paid by borrower to Escrow Agent): Upon the signing of each Escrow Agent Agreement and the opening of each escrow account, a setup fee of $1,000, and A fee equal to 1.25% of all earnings on the investment of escrowed funds, to be collected at the end of each month for earnings received during the month.

35. "The purpose of this link is to demonstrate interactive website capability for users to access their loan account." Who would be accessing each loan account -- lenders and borrowers? What level of detail do they require about their loan? Is the offeror expected to provide the link to its current website in the RFP?

Response: Borrowers will access each of their own loan accounts and the offeror is expected to provide the link to its current website in the RFP for demonstration purposes.

36. How often are Notifications to Participating Lenders sent on each loan? If fees are not received or not received in full, how does the contractor notify USAID or the lender – via email, letter or other means?

Response: Electronic Notice of Payment Due shall list the portion of the payment which represents principal, interest, past due amounts, penalties and fees. The notices shall be sent at least 60 days prior to the due date of payments.

37. "What is the current file format for exchanging data between the contractor and USAID? What is the current schedule for the data exchange? What is the size of the file being transmitted? How is the data secured in transit? What is the median, minimum and maximum file size for the exchange?

Response: Proprietary software. Activity reports shall note any unusual activity levels and any difficulties encountered under the contract, along with recommendations to improve performance. Contractor shall also be prepared to provide on a reasonable basis ad hoc reports to supplement those reports in attachment ‘A’ (deliverables) as required by USAID to meet internal and external requirements for credit portfolio information.

38. for ledger transactions

Response: Proprietary software. The Contractor shall be responsible for any costs (to include pre-approved carryover from the Contract Officer) associated with providing, maintaining and developing software to implement an integrated international financial transaction loan accounting system and account for financial loan operations that impact the general ledger in compliance with sound business systems rules

40. for financial transaction data"

Response: Proprietary software. The Contractor shall be responsible for any costs (to include pre-approved carryover from the Contract Officer) associated with providing, maintaining and developing software to implement an integrated international financial transaction loan accounting system and account for financial loan operations that impact the general ledger in compliance with sound business systems rules

41. What is the format of the financial data that is exchanged with the Fiscal Agents? What is the frequency of the data exchange? What is the size of the file in the exchange? What is the median, minimum and maximum file size for the exchange?

Response: Proprietary software. The Contractor shall be responsible for any costs (to include pre-approved carryover from the Contract Officer) associated with providing, maintaining and developing software to implement an integrated international financial transaction loan accounting system and account for financial loan operations that impact the general ledger in compliance with sound business systems rules. Offeror needs only to demonstrate its capability to ‘data exchange’. Specifications Details will be provides upon award.

42. What is the current FISMA classification of the data maintained by the contractor?

Response: 5.3 Financial Management Financial Integrity Act (FMFIA Compliance: The contractor will comply with OMB Memoranda M-14-04; Instructions for meeting the agency's annual reporting requirements under the Federal Information Security Management Act of 2002 (FISMA) (Title III, Pub. L. No. 107-347) to include reporting instructions on the agency's privacy management program.

43. Can samples of the reports in Attachment 1 - Reports Listing be provided in order to price the CLIN 0002 of the RFP?

Response: No samples.

44. “The contractor is responsible for investing of collected balances.” Which collected balances is this referring to? What is the average daily balance of funds invested? What is the monthly maximum amount of balances? What investment vehicles are used for investment?

Response: A. General Requirements: The task and deliverables below are required for all loan and loan guarantee types. 3.1. Fund Transfer Requirements: The contractor must possess the capability to process large foreign and domestic money transfers via SWIFT and the Federal Reserve, and perform receiving and disbursing activities related to its loan, loan guarantee and portfolio guarantee programs, including the maintenance as appropriate for deposit and escrow accounts, the provision of required collateral, the investing of collected balances, and the maintenance of financial records related to these activities.

45. "Including the maintenance of appropriate deposit and escrow accounts, the provision of required collateral, the investing of collected balances," For which programs will the contractor be receiving/disbursing funds within its own Bank? Is this limited to loan guarantees where the contractor is the PTA and Escrow Agent?

Response: Offeror must refer to the language provided in the legal agreements.

46. "There are two methods of sending electronic funds." Is this referring to the borrowers and lenders sending funds to USAID's FRBNY or to the contractor? The wording of this section is unclear.

Response: There are two methods of sending electronic funds – 1) Fedwire and 2) SWIFT (Society for Worldwide Interbank Financial Telecommunication). Contractor must confirm which method will be used in order to give the borrower proper instructions. Regardless of fund transfer method chosen, the contractor must ensure that any bank and/or transaction fees incurred are properly charged to the payee and not to USAID.

47. "b. Approximate date that you will send funds to USAID" -- who is "you" referring to -- the contractor or the borrower?

Response: 2. Loan Accounting and Collections: The contractor must manage a large portfolio of loans, and loan guarantees, involving a large number of foreign borrowers and guaranteed parties in developing countries. With respect to loans, the organization's loan administration resources must include the capacity to service approximately 821 loans, to establish and maintain computerized transactional-based accounting records for each loan on a current basis and related loan histories, and to issue accurate and timely notices of payment due to each borrower.

48. How does the contractor represent the USAID paid portion of the borrower's payments in the Loan Accounting System? Will these be reflected as past due amounts and tracked as defaulted payments? If a borrower pays the past due funds after USAID has covered the noteholder payment, how is that reflected? Are funds wired back to USAID?

Response: IF Housing Guarantee loan borrower fails to make a payment on time or a payment is less than the amount owed to noteholders, the contractor shall request funds from USAID sufficient enough to make the requested payments to the noteholders and make the necessary accounting entries to record the amounts due USAID. Funds are wired back to USAID.

49. "projected annual collections and estimated potential USAID payments for the following fiscal year" Who sets the projected interest rate on non-fixed rate loans to make the projection?

Response: Contractor provides the project interest on non-fixed rate loans.

50. How are claimed funds sent to the fiscal agent(s) and by whom - contractor or USAID?

Response: Contractor.

51 “Guaranteed loans are, with few exceptions, denominated and repayable in U.S. dollars.” What currencies pertain to the few exceptions?

Response: Foreign currencies vary, depending on the language of the legal agreement.

52. Section II-B.8 referenced does not exist in this RFP

Response: Section II-B.8 was deleted.

53. "amortization of principal and interest" What are the various types of amortization payments? How do prepayments and defaults affect the amortization schedules? What are the volumes of prepayments over the last 5 years?

Response: Volume of prepayment is relative small with no amortization schedule required for prepayment since loan is fully repaid.

54. In an instance where contractor is tracking loan payments in a 'shadow' role on a guarantee, how are payments made from borrower to lender validated and processed by contractor? (ie, can contractor receive automatic delivery of files from lenders to validate payments?)

How will related loan histories be maintained if a successor contractor assumes the portfolio as historical loan data is not customarily converted into the new Contractor's system?

Response: Historical loan data has been scanned electronically for some of the older loans.

55. Do you mean the system must be in place before charging fees under the contract?

Response: Yes.

56. What are pre-approved carry over costs from CO?

Response: 3.A.6 During the transition period, the prospective contractor will be provided with detailed historical data, balances and transactions of USAID loan and loan guarantee program. Any conversion and data migration costs should be incorporated in the price proposal. The Contractor shall be responsible for any costs (to include pre-approved carryover from the Contract Officer) associated with providing, maintaining and developing software to implement an integrated international financial transaction loan accounting system and account for financial loan operations that impact the general ledger in compliance with sound business systems rules.

57. On page 13 there's reference to "specific document retention requirements for each portfolio type are listed in Section B", there appears to be no reference in Section B to retention requirements. Could you please clarify?

Response: See 3.A.4. page 14. Contractor Requirements: Maintenance of Documents: The contractor shall handle the filing, storage, retrieval and protection of original documents and other records relating to its credit programs in accordance with ADS 502 and Contracting Officer/Contracting Officer Representative guidance.

58. How many physical loan document packages need to be maintained in Contractor's vault? How large on average (in inches) is each physical document file? How often are files retrieved by USAID?

How quickly must each document be available for retrieval?

Response: All physical loans are maintained by the contractor as stated in the Section ‘C’(SOW). Electronically files were scanned and maintained by the current contractor.

59. "USAID generates and receives a variety of documents and records necessary for the continuing management of the programs. These include but are not limited to loan agreements, rescheduling agreements, note holder lists, borrower lists, loan histories, and accounting records. The records shall be maintained as electronic documents to the greatest extent possible." Which documents does USAID need to access electronically?

Response: USAID needs to access electronically all current loans.

60. How many documents are available online through the website? How will those documents be transferred from incumbent and in what file formats?

Response: ALL loans stated in Section ‘C’(SOW) are available(pdf file format (text files for data) on line and can be transferred by current electronic media.

61. How will changes to loan agreements/terms be delivered to the contractor? Will it be electronic and/or via these files? Mentions in Section 3.1, A.11 that contractor runs an analysis, gets approval from USAID and then books on rescheduling. How are new loans transmitted to the contractor?

Response: Contractor will have ‘Read only Access’ to agency Credit Mgmt. system for Changes to the DCA loan agreements and will be notified via email by USAID.

62. Who are the Fiscal Agents for Sovereign Loans? Does data reported by Fiscal Agents and Loan Guarantors needs to be recorded in Loan Accounting System?

Response: 4.0 Sovereign Direct Loans: The Contractor shall coordinate with the Fiscal Agent for loan data and maintain loan files and record of amounts due, amounts collected, and provide monthly financial reports of the portfolio to USAID designated representatives.

63. Page 20 states Soverign Direct Loans; should this read Sovereign Guarantee Loans?

Response: Sovereign Direct Loans.

64. Loan guarantees and DCA refers to disbursement of funds (assume this means fees). What funds are disbursed and whom? It states elsewhere in the RFP that the contractor is verifying receipt of fees in CashLink. Does the contractor ever take possession of these fees into its own Bank?

Response: No.

65. What is the number of documents or boxes stored in an Iron Moutain type facility? Who pays the monthly storage costs? Is the Contractor expected to move these files and/or take ownership of any existing storage contract?

Response: Contractor pays the monthly storage costs and is expected to take possession of existing documents. MSED guarantee expired loans/files have been shredded per agency government guidelines. Remaining boxes are non-loan type records.

66. What is imaged document format (TIFF, JPG, other)? How many images exist? Are the images indexed for searching? Is there manifest of all documents? What is the retention schedule for both imaged and physical documents? Are imaged documents acceptable for review by the outside auditor?

Response: Imaged agency documents in Adobe PDF file format.

67. In instances where the contractor takes possession of funds as the PTA, are any countries or entities sending or receiving funds on the high risk country list, Office of Financial Assets Control (OFAC) lists and/or countries with sanctions? If do, how is OFAC requirements handled?

Response: No countries are currently on the OFAC list. Contractor reviews list for potential OFAC countries.

68. Are there OFAC issued licenses on any of the OFAC high risk countries or entities that can be provided by USAID to the Contractor when its needs to take physical possession of funds or disburse funds?

Response: USAID does not have issued licenses and disclaims dealing with any high risk countries.

69. The number of HG loans covered by paying agent agreements states 188, but section 2.1 states there are 95 remaining, and 5.4 states 140. What is the actual number of HG loans covered by paying agent agreements?

Response: Program Loan Guarantees: 2.1 Urban and Environmental –Housing Guarantee (HG) Credit Program: USAID has had about 190 loan guarantees on HG loans, of which approximately 65 have been repaid and some written off. Of the remaining, 95 current outstanding balances are around $ 750 million.

70. Does the $200K in annual PTA fees count toward the $11 million contract cap?

Response: Yes.

72. Today, is the loan accounting system used in any way for paying agent services, or is activity conducted on the trust/bondholder payment system of the contractor?

Response: 1.activity is conducted on the trust/bondholder payment system of the contractor.

73. What are the "other specific" loans referenced and how many are there?

Response: “other specific loans” that are not subject to such agreements (separate fiscal agency agreements). Sovereign Loan Guarantees – Sovereign guarantees are specifically authorized by Congress and administered by USAID. Once Congress has authorized the use of a sovereign guarantee, an interagency committee has met to structure the guarantee and agree on terms and conditions. That group has been coordinated by the State Department with active participation of USAID, Treasury, and OMB. These loans are serviced by various financial institutions acting as the Fiscal Agent under separate agreements (see below under 2.2.1 to 2.2.6).

74. Do you require maintenance of historical PTA records generated by the incumbent? Or does the contractor maintain data from transition date forward?

Response: The existing PTA contracts will be transferred to the contractor at the beginning of the contract period. Also it is the intent of USAID that the contractor shall be the sole organization to perform paying and transfer agency duties for USAID and borrowers during the period of the contract, which would include any new loans closed.

75. What is the turn around time, in days, from paying and transfer agent receipt of borrower funds to payment date to noteholders?

Response: Normally, there will be sufficient time between the due dates for receipt of payments to the noteholders for necessary funds to be obtained from USAID. In order to maintain the marketability of guaranteed loans, it is important that noteholders be paid on time and in full.

76. Is there any tax reporting required of the PTA (e.g., payment of interest to Noteholders)?

Response: Since federal tax laws change each year, the contractor will determine any tax reporting requirements(payment of interest to noteholder).

77. Is the contractor sending a "Payment Due Notification to Borrowers" for DCA Guarantees -- the section heading implies such however thought this is a lender responsibility?

Response: Yes. Contractor send Payment Due Notification to Borrowers for DCA Guarantee and provide status report(see Appendix ‘A’(deliverables).

78. How many communications are sent annually via telex?

Response: Payment Due: The notice of payment due (NPD) shall be in English and shall include instructions for wire transfer of funds. The notices shall be sent directly to borrowers, participating lenders, or as instructed by USAID designated representative using either facsimile transmission, telex, or e-mail.

79. For notices, are current and past due amounts indicated on one notice or multiple notices? Do we stop sending notices after a certain number of payments are past due?

Response: Current and past due amounts indicated on one notice with follow-up notices

80. What types of penalties are imposed -- late fees only?

Response: Late fees only.

81. Are DCA NPD's provided to the lender for fees only, that is, it is the lender's responsibility to send NPD to the borrower for P&I payments?

Response: Contractor provides DCA NPD's to the lender for fees only.

82. Does the program manager need to work from the contractor's Wash DC office full-time? Section 5.5 indicates the Wash DC office can be staffed with contractor employees with sufficient authority to respond promptly to agency request, so would other key contractor personnel besides the program manager qualify?

Response: Yes, program manager, who determines personnel, needs to work from the contractor's Wash DC office full-time.

83. Personnel Qualification -- Expert knowledge of database manipulation -- what does this entail?

Response: M.2.1.3 Factor One: Offeror’s relevant experience as it relates specifically to database management of the subsidiary ledger data transfer to the USAID Phoenix Accounting System of all financial transactions used for internal reporting requirements to OMB and Congress.

84. Are the qualifications requested able be covered across multiple persons assigned to the contract?

Response: The Offeror’s Key Personnel indicates ability to meet or exceed management support/services specified in the SOW.

85. Please provide details of all countries with outstanding loans by program type/loan (direct, guaranteed and restructured) and the currency in which the loans are paid.

Response: Direct Loans: USAID manages a portfolio of approximately 330 loans with outstanding balances around $15.5 billion, which were made by the agency to borrowers in approximately 30 countries under various foreign assistance programs dating back to the 1960's.

With a few exceptions, no direct loans have been made by the agency since the mid-1980.

86. How many people support the existing contract and what types of positions?

Response: As stated in the RFP, the Program Manager will determine staffing requirements.

87. Should a fee be quoted separately for transition in and a transition out, or does U.S. AID want the two fees combined?

Response: 3.A.1 Regardless of fund transfer method chosen, the contractor must ensure that any bank and/or transaction fees incurred are properly charged to the payee and not to USAID.

88. For rescheduled HG loans, is the Contractor billing the borrower directly and is payment made to the FRBNY? How does the payment from USAID to the lender for the original payment amount plus the payment from the borrower facilitated -- through a disbursement from the FRBNY account?

Response: The contractor shall perform all the calculations associated with rescheduling activities, and cooperate with Loan Management in reporting to the State Department by providing the required reports. The contractor shall provide Loan Management with an analysis of rescheduled loans based on the Paris Club minutes and recommendations for adjustments to the loan system.

Loan Management shall review, and after making any required changes, the contractor shall post the loan system

89. For wires sent directly to the FRBNY, what is the percentage that is paid on time and accurately? Are the wires identified by loan identifiers for easier reconciliation? How many wires were received on your highest volume days?

Response: Section ‘C’. Fund Transfer Requirements: The contractor must possess the capability to process large foreign and domestic money transfers via SWIFT and the Federal Reserve, and perform receiving and disbursing activities related to its loan, loan guarantee and portfolio guarantee programs, including the maintenance of appropriate deposit and escrow accounts, the provision of required collateral, the investing of collected balances, and the maintenance of financial records related to these activities.

90. How many accounts exist at the FRBNY that the contractor need to reconcile with? Do the fee payments come into another account at the FRBNY, separate from the direct loan repayment account?

Response: The activities to be performed for USAID by the contractor under this scope of work are widely varied and the degree of expertise and experienced personnel needed is very high.

This is necessary to insure that the agency’s credit programs are effectively administered and that financial reporting on the activities involved meets the high standards required for audited financial statements.

91. Does Cash Link allow for automatic real time delivery of transactional information to third parties?

How frequently do you have to contact Fed for more information regarding a wire?

Response: Receipt of Loan Repayments: Payments on the loans in the USAID direct loan portfolio are normally made by wire transfer to the U.S. Treasury accounts at the Federal Reserve Bank of New York. Occasionally, payment is made by other means.

92. How many payments are received via the Fed wire vs SWIFT? Is there a delay in the SWIFT process applying transactions to accounts from high risk countries?

Response: The contractor shall daily determine the payments received by wire, using the Treasury’s Collections Information Repository (replacing Cash Link II system (backup)) as the primary supporting documentation_, and compare these with the amounts due.

93. Receipt of payment via wire into the FRBNY. Is the contractor required to move the monies into custodial or escrow accounts at its own bank or are all wire transactions processed by the contractor done through the FRBNY account?

Response: Loan guarantees and loan portfolio guarantees, each have somewhat different requirements that the contractor shall meet while certain requirements are common to all programs.

The Contractor shall notify borrowers and participating lenders of amounts due. The notice of payment due (NPD) shall be in English and shall include instructions for wire transfer of funds. The notices shall be sent directly to borrowers, participating lenders, or as instructed by USAID.

94. Is it possible to get an electronic file from Treasury’s Collections Info Repository (formerly Cash Link II) system daily?

Response: The contractor shall daily determine the payments received by wire, using the Treasury’s Collections Information Repository (replacing Cash Link II system (backup)) as the primary supporting documentation.

95. What does "other means" of payment entail? Will these payments also be visible via the Cash Link system? (e.g., ACH, Check, Swift)

Response: Occasionally, payment is made by other means. The contractor shall daily determine the payments received by wire, using the Treasury’s Collections Information Repository (replacing Cash Link II system (backup)) as the primary supporting documentation

95. How does contractor get notified of lender receipt of funds on guaranteed loans that have not been sold to noteholders (that is, not covered by PTA agreements)?

Response: Sovereign Loans. These loans are serviced by various financial institutions acting as the Fiscal Agent under separate agreements (see 2.2.1 to 2.2.6 of Section ‘C’, SOW).

97. “The services include providing potential purchasers of notes evidencing interests in the loans with copies of documents, canceling old notes of sellers, issuing new notes to buyers, and maintaining related records of ownership.” When this is not done through DTC, does the contractor need to issue physical certificates? What is the volume of physical certificates? How many transfers occur monthly?

Response: It is the intent of USAID that the contractor shall also perform these functions for some loan guarantees through the Deposit Trust Corporation, and for any new issues, when possible.

Registration and Transfer of Securities: The contractor must act as registrar, paying and transfer agent (functions as Paying and Transfer Agent, in connection with a Housing Guaranty borrowing, are performed by the corporate trust department of a commercial bank designated by USAID), and/or fiscal agent for issuers of securities. The contractor shall perform these services under contract to guaranteed loan borrowers. The services include providing potential purchasers of notes evidencing interests in the loans with copies of documents, canceling old notes of sellers, issuing new notes to buyers, and maintaining related records of ownership. It is the intent of USAID that the contractor shall also perform these functions for some loan guarantees through the Deposit Trust Corporation, and for any new issues, when possible.

98. Are Paying Agent functions on page 13 only done for the HG program? Can any existing HG loans (not currently covered by a PTA agreement) be sold by the lender in the future?

Response: Introduction(page 11): The paying and transfer agent (PTA) requirements are distinguished between guarantees where the contractor is the PTA from those where it is not.

99. Can the registration of these securities used the Contractor's existing (custodian) name or does a separate entity have to be registered at DTC?

Response: Paying and Transfer Agent: The contractor shall perform the duties of Paying and Transfer Agent (PTA) for both the covered and non-covered guaranteed loans.

100. How many computerized records need to be converted from the incumbent to a new contractor?

Response: The number of computerized records equals the number of loans/loan guarantees indicated in the SOW.

101. "provide a report database that allows access to deliverables required of the contractor" Will the report database be housed on the contractor's website? Or internally at the contractor? Will there be a transition of the existing historical report database that can continue to be leveraged?

Response: The report database will be housed on the contractor's website using existing historical report database not subject to proprietary rights.

102. Please describe the most common requests for data under the “ad hoc” designation. Does the current contractor have a set of reports that are run on a schedule to fulfill most of these types of requests?

Response: Requests for data are specific and discussed during contractor monthly meeting with the USAID COR and/or subject matter expert.

103. U.S. AID indicated the current contractor’s system will not be transitioned. Therefore can you provide more detailed specifications for the system's functionality a successor must provide in order to determine if upgrades/enhancements are required for the successor's system? If the bidder's system needs to be modified, can that be done post-award but prior to the 30 day conversion period?

Response: No. The contractor is expected to provide its own system subject to pre-award demonstration.

104. How long will a successor contractor have to develop the Attachment 1 reports that are custom to USAID's portfolio (30 days from take over or 30 days from report requirements being delivered)?

Response: 30 days from take over.

105. "During the transition period, the prospective contractor will be provided with detailed historical data, balances and transactions of USAID loan and loan guarantee program." In what format will it be provided and how soon after contract award? Will there be an opportunity pre-transition to analyze and test this data set?

Response: During the 30-day transition period, the prospective contractor will be provided with detailed historical data, balances and transactions of USAID loan and loan guarantee program.

Any conversion and data migration costs should be incorporated in the price proposal.

106. Can historical data records for active, restructured and terminated loans be transferred to an archive database or imaged documents, rather than to the loan accounting system, at time of transition? Typically the outstanding loan balances for active loans and other pertinent info is a "snapshot" at the time conversion and used by the new system as a starting point/baseline, and historical data is not converted to the loan accounting system.

Response: No, the prospective contractor will be provided with detailed historical data, balances and transactions of USAID loan and loan guarantee program.

107. In order to determine the magnitude of the conversion, please provide a list of all data that will need to be transferred. Please include a description of each data file: this would include a file layout, the size of the file, how many records, the number of files to be transferred, and the storage platform the data is currently stored on.

Response: The Contractor shall be responsible for any costs (to include pre-approved carryover from the Contract Officer) associated with providing, maintaining and developing software to implement an integrated international financial transaction loan accounting system and account for financial loan operations that impact the general ledger in compliance with sound business systems rules.

108. When does the 30 day transition period start -- at contract award or after transition preparation (such as discovery and parallel processing) is complete?

Response: At contract award.

109. Have all loans been reconciled for payments through the current period as well as any reporting to the general ledger? If not, how many unreconciled transactions and/or payments outstanding and for how many loans? Will the incumbent contractor be responsible for completing this reconciliation?

Response: All loans have been reconciled(Contractor trial…