Sources Sought Notice - HECM.pdf

Sources Sought Notice

SOURCES SOUGHT NOTICE (SSN)

The Department of Housing and Urban Development (HUD) is issuing this Sources Sought Notice (SSN) as a means of conducting market research to identify parties having an interest in and the resources to support this requirement for a Contractor’s solution to provide business services for the Home Equity Conversion Mortgage (HECM) insurance program. The result of this market research will contribute to determining the method of procurement. The applicable North American Industry Classification System (NAICS) code assigned to this procurement is 518210 – Data Processing, Hosting, and Related Services.

This Sources Sought Notice (SSN) is being issued solely for information and planning purposes, it does not constitute a Request for Proposal (RFP) or a guarantee to issue an RFP in the future.

There is no solicitation at this time and the Government will not accept unsolicited proposals.

This request for capability information does not constitute a request for proposals; Submission of any information in response to this market survey is purely voluntary. Responders are advised that the Government will not reimburse for any information or administrative costs incurred in response to this sources sought notice; all costs associated with responding to this sources sought notice will be solely at the interested parties' expense. Not responding to this sources sought notice does not preclude participation in a future RFP, if one is issued. The government assumes no financial responsibility for any costs incurred.

If your organization has the potential capacity to perform these contract services, please provide the following information in the capability statement:

a. Company name, mailing address, e-mail address, telephone and FAX numbers, website address (if available), and the name, telephone number, and e-mail address of a point of contact having the authority and knowledge to clarify responses with Government representatives.

b. Name, title, telephone number, and e-mail addresses of individuals who can verify the demonstrated capabilities identified in the responses.

c. Business size for NAICS 518210, (size standard $40.0 million) and status, if qualified as an 8(a) firm (must be certified by SBA), Small Disadvantaged Business (must be certified by SBA), Woman-Owned Small Business, HUBZone firm (must be certified by SBA), and/or Service-Disabled Veteran-Owned Small Business (must be listed in the VetBiz Vendor Information Pages).

d. DUNS number, CAGE Code, Tax Identification Number, Unique Entity ID (UEI) and company structure (Corporation, LLC, partnership, joint venture, etc.). Companies also must be registered in the System for Award Management (SAM) at https://www.sam.gov/portal/SAM/#1 to be considered as potential sources.

e. Identification of the firm's GSA Schedule contract(s) by Schedule number and contract number and SINs that are applicable to this potential requirement are also requested.

f. If the company has a government approved accounting system, please identify the agency that approved the system.

g. Responses to Attachment B – HECM Questionnaire

The government will evaluate market information to ascertain potential market capacity to 1) provide services consistent in scope and scale with those described in this notice and otherwise anticipated; 2) secure and apply the full range of corporate financial, human capital, and technical resources required to successfully perform similar requirements; 3) implement a successful project management plan that includes: compliance with program schedules; cost containment; meeting and tracking performance; hiring and retention of personnel and risk mitigation; and 4) provide services under a performance based service acquisition contract.

Based on the responses to this sources sought notice/market research, this requirement may be set-aside for small businesses or procured through full and open competition, and multiple awards may be made. Telephone inquiries will not be accepted or acknowledged, and no feedback or evaluations will be provided to companies regarding their submissions.

The government expects to conduct one-on-one market research sessions in 30-minute intervals to discuss the tasks of the proposed contract and the responses to the questionnaire for Vendors who successfully demonstrate their ability to perform the tasks identified in the draft PWS.

Background: The HECM program enables eligible senior homeowners to convert a portion of their accumulated home equity into available funds without requiring repayment for as long as the borrower complies with the terms of the mortgage.

Borrowers have the option to receive their loan proceeds as a lump-sum payment at closing, a scheduled monthly payment, a line of credit, or a combination of a scheduled payment and line of credit. Borrowers who choose to receive their loan proceeds in any manner except for a lump-sum payment at origination will sign two promissory notes and two mortgages, one set to the originating mortgagee and the second to the Secretary of HUD. HECMs do not have a pre-determined maturity date and remain active as long as all terms of the mortgage are met.

HECMs are originated by FHA-approved mortgagees, and provided all criteria are met, are insured by FHA. This insurance protects mortgagees from covered losses. Mortgagees are required to report information to FHA regarding insured HECMs and must request approval from HUD for some servicing tasks as well as for extensions of time.

Since HECMs do not have a pre-determined maturity date, FHA will accept assignment of qualified HECMs when the loan balance reaches a designated threshold. When HUD accepts assignment of a HECM, HUD assumes all responsibilities for servicing the loan until final disposition.

General Description of Work: The U.S. Department of Housing and Urban Development (HUD), Office of Single Family Housing requires contractor support to provide a business solution that fully supports all functional requirements, processes, steps, and timelines associated with loan origination/production, loan setup, and loan servicing for its HECM loan portfolios and insurance program. Services shall include:

HECM Loan Origination/Projection HECM Loan Setup HECM Loan Servicing HECM Endorsed Loan Servicing HECM Assignment Document Upload and Tracking HECM Assigned Servicing Workflow Management Borrower Portal User Generated Reports Help Desk Services.

Training Instructor led Training Training Material On-line User Manual Project Management, Support, and Reporting.

Management Plan Reporting Data Fixes and Maintenance Interfacing with Other Systems and Data Sources Interface Control Document (ICD) Data Exchange - Internal and External Certification and Accreditation (ATO) Transition-In Transition-Out

Contemplated dollar value of the project: It is anticipated that the dollar value will be between $30 million and $45 million for the base year plus four 12-month option periods for a total of five years.

Contemplated place of performance: Performance will be at the Contractor’s facility.

Submission Instructions: Interested parties who consider themselves qualified to perform the above-listed services are invited to complete the attached questionnaire and submit a capability statement no larger than 5 pages (8.5x11 inches), single spaced, 12pt font. The questionnaire will not be included in the page count of the capability statement. The capability statement shall demonstrate your experience/qualification to successfully perform the tasks identified in the

PWS.

Responses to this announcement will not be returned, nor will there be any ensuing discussions or debriefings of any responses. However, information obtained as a result of this announcement may be reflected in the subsequent solicitation, and HUD, OCPO may contact one or more respondents for clarifications and to enhance the Government’s understanding. This announcement is Government market research and may result in revisions in both its requirements and its acquisition strategy based on industry responses. Questions for this announcement can be submitted no later than Tuesday, November 12, 2024, 2:00 PM Eastern Standard Time for consideration to david.y.kim@hud.gov, with a cc to dwayne.e.gist@hud.gov.

Respondents must submit capability statement and response to questionnaire via email to david.y.kim@hud.gov, with a cc to dwayne.e.gist@hud.gov, no later than Friday, November 29, 2024, 2:00 PM Eastern Standard Time for consideration.

ATTACHMENTS:

Attachment A – HECM PWS Attachment B – HECM Questionnaire Attachment C – HECM Proposed CLIN Structure