Multifamily Claims Examination Support Services

Sources Sought Synopsis The Department of Housing and Urban Development (HUD) is issuing this sources sought synopsis as a means of conducting market research to identify parties having an interest in and the resources to support this requirement for Multifamily Claims Examination Support Services. 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 541211 There is no solicitation at this time. 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; 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: 1) organization name, address, email address, website address, telephone number, and size and type of ownership for the organization; and 2) tailored capability statements addressing the particulars of this effort, with appropriate documentation supporting claims of organizational and staff capability. If significant subcontracting or teaming is anticipated in order to deliver technical capability, organizations should address the administrative and management structure of such arrangements. 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. Submission Instructions: Interested parties who consider themselves qualified to perform the above-listed services are invited to submit a response to this Sources Sought Notice by January 18, 2021 5:00 pm EST. All responses under this Sources Sought Notice must be emailed to Gabriel.G.Wright@hud.gov. Additional information on the required services is listed below. If you have any questions concerning this opportunity, please contact: Gabriel Wright 202 402 4471 Background: The Department of Housing & Urban Development (HUD) provides mortgage insurance protection to HUD approved lending institutions (mortgagees). Under the terms of the contract of insurance between HUD and the mortgagee, the mortgagee may take action to terminate the agreement upon the mortgagors default of the mortgage loan. When the mortgagee is in full compliance with requirements of the National Housing Act (The Act), the Code of Federal Regulations (CFR), applicable mortgagee letters and HUD handbooks relating to the claims process, the mortgagee is entitled to receive multifamily mortgage insurance benefits from HUD. These insurance benefits are obtained through the mortgagees submission of Form HUD-2747, Application for Insurance Benefits (Multifamily) to the Multifamily Claims Branch (MFCB). The MFCB is responsible for providing support services to conduct the in-processing, cataloging, examination, review, and disbursement of funds by auditing multifamily mortgage insurance claims and reconciling invoices and payables. The Office of Multifamily Housing is responsible for the oversight and monitoring of multifamily mortgage insurance funds. Payments of Mortgage insurance benefits, authorized by various sections of the National Housing Act (Act) are made from three (3) insurance funds: (1) the General Insurance Fund authorized by Section 519 of the Act; (2) the Special Risk Insurance Fund authorized by Section 238 of the Act; and (3) the Cooperative Management Housing Insurance Fund authorized by Section 213 of the Act. To this end, HUD makes a concerted effort to ensure that submitted multifamily insurance claims are processed, examined, and paid to the homeowners of record in a cost-effective and timely manner. The MFCB reviews and research data provided in all submitted multifamily insurance claims. The required outcome is to ensure that all submitted claims are processed promptly despite the unpredictable volume of claims received. The support services, are critical to assisting the MFCB in meeting the customer service standards of the Department. General Description of Work: The MFCB seeks a Contractor to provide support services to conduct in-processing, cataloging, examination, review and disbursement of funds by auditing multifamily mortgage insurance claims and reconciling invoices and payables. The contractor shall also conduct work site records management. Detailed descriptions of specific tasks are provided in Section 5. Below are the characteristics of the (insert short description) requirements: The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following: - Code of Federal Regulations (24CFR parts 200 to 499) - Federal Acquisition Regulation (48 CFR) https://www.acquisition.gov/ - HUD Acquisition Regulation - Applicable National Institute of Standards and Technology Guidelines - Applicable Federal Information Processing Standards and Guidelines - Insured Multifamily Mortgagee Servicing and Field Office Handbook 4350.4 - MFCB Desk Procedures The tasks require a set of skill categories based on the following approximate breakdown: 5.1 Election to Assign The contractor shall be prepared to process approximately forty-four (44) ( HUD approved elections annually. A HUD approved election serves as notice of a pending assignment or conveyance that should occur within the next 30 days or within the extended timeframe. 1. The contractor shall create a file folder when MFCB receives an Election to Assign Approval. The mortgagee is required to submit Form HUD-2537 (Application for Partial Settlement), Form HUD-2747 (Application for Insurance Benefits) and Form HUD-1044-D (Payment Information Form) for each Election to Assign Approval. At a minimum these forms and the Election to Assign Approval must be filed in the claim folder. The contractor must process the election immediately upon receipt of the Election to Assign Approval. 2. The contractor shall create the Election to Assign in the system-of-record when the Election to Assign Approval is received and must update the system as other required forms are received 3. In occasional cases that an election is withdrawn, or a withdrawal of election is reinstated, the contractor shall update the occurrence in the system and file the supporting documentation in the folder. 4. The contractor shall scan/image all election documents and create and organize a folder identified the FHA case number and store it in the share drive. Performance Standards a) Standard: Create file folders for 100% of Election to Assign received. AQL: Zero Deviation The reason for zero deviation is because of the time requirements to pay the initial claim settlement within 3 business days of receiving the assignment. Deliverables A001 Status Report A002 44 Election to Assign A003 Claims settlements 5.2 Examine Regular Claim The contractor shall be prepared to examine approximately twenty-eight (28) regular claims annually for insurance benefits. The purpose of the examination is to determine the appropriate amount for payment under FHA multifamily claims guidelines as discussed under objectives, above. The contractor shall examine and audit regular claims, in accordance with the Multifamily Claims Desk Procedures and HUD Handbook 4350.4. 1. Strict adherence to the established guidelines as outlined in The Act, the CFR (24CFR Parts 200 to 499), mortgagee letters, applicable HUD handbooks and Multifamily claims procedures are required in calculating insurance benefits. 2. The examination must be done by two different examiners. The first examiner must do a complete examination of the claim. The second examiner must do a summary review of the claim to ensure accuracy and completeness. 3. Prior to beginning the examination, the contractor must ascertain that all the necessary legal and accounting documents are contained in the claim file received from MFCB. If further information is needed to support or clarify the claim, the contractor may contact the mortgagee or the appropriate HUD field office directly. Contact may be made via telephone, facsimile, or email. The contractor must request that the information be supplied within two workdays. The information will be e-mailed to the contractor directly or to the HUD e-mailbox Multifamilyclaimsbranch@hud. The contractor must document telephone contact with a letter, a copy of which must be placed in the claim file. 4. The contractor shall be responsible for the pickup of pending examination claim files hard copies from MFCB when needed. The contractor must further be responsible for delivery of completed claims examination files to MFCB when needed. Pickup and delivery must be made from and to Room 6254 of the HUD building, 451 7th Street, S.W., Washington, D.C.This requirement will go into effect once the COVID-19 telework protocols are lifted and HUD staff is back working in the HQ Building. 5. The contractor shall prepare a detailed final settlement report, which must include the final settlement form, in addition to letter(s) to the lender; and the HUD MF Notes Servicing Branch of HUD. In addition, the contractor must prepare a file for Multifamily Notes Branch containing copies of Schedule A, mortgage note and modification, regulatory agreement, mortgagees certificate, and escrow agreement. The final settlement report including letters must be prepared in Microsoft Word format compatible with the current HUD Windows operating system. Letters must be prepared on HUD letterhead paper for signature of the Chief, Multifamily Claims Branch. 6. The contractor shall provide a written record in the claim file of all contacts with mortgagees and/or their representatives, field offices, etc. 7. The contractor shall input to the system-of-record all data relating to each claim, through the various stages of the claims process. The input must be accomplished in accordance with the PeopleSoft Job Aids as each event occurs. 8. The contractor shall be provided with appropriate access to the PeopleSoft RM system. 9. Claims will generally be provided to contractor for examination twice a week, as available. 10. The examination of assignment claims must be completed within 30 business days of receipt. The examination of conveyance and coinsurance claims must be completed within 45 business days of receipt. 11. The contractor shall notify the COR and request an extension date in writing of any claims that are not expected to be completed in accordance with the claims review periods outlined above. The contractor must detail the reason(s) for the extension in their request and submit the request five (5) working days prior to the expiration of the claim review period. The COTR must approve/disapprove the extension request in writing. Any claim not processed in accordance with the claim review periods specified, without a written extension from the COTR must be penalized 1% per day of the fixed price per claim for every business day the completed claim has not been returned to HUD past the stated claim review period. In instances where the claim is found to be incomplete or calculated erroneously, as determined by HUD, it will be returned to the contractor to be re-worked at no extra cost to HUD. However, many claims incur additional interest charges to the government daily until paid. In these cases, it may be in the best interest of the government for HUD staff to complete the claim or correct any errors and pay as soon as possible to stop the interest from accruing on the claim. 12. The contractor must scan/image all assignment documents and add them to the folder already created for it in the share drive. Performance Standards Deliverables A003 Claims settlements A004 Status Report A005 28 Regular Claim examinations 5.3 Examine Miscellaneous Claims and Related Items The contractor shall be prepared to examine up to forty- three (43) miscellaneous claims, including hospital and nursing claims, annually for insurance. The purpose of the examination is to determine the appropriate amount for payment under FHA multifamily claims guidelines as discussed under objectives above. The contractor shall examine and audit all miscellaneous claims, including but not limited to hospital and nursing claims, in accordance with the Multifamily Claims Desk Procedures and HUD Handbook 4350.4. 1. Strict adherence to the established guidelines as outlined in The Act, the CFR (24CFR Parts 200 to 499), mortgagee letters, applicable HUD handbooks and Multifamily claims procedures are required in calculating insurance benefits. 2. The examination must be done by two different examiners. The first examiner must do a complete examination of the claim. The second examiner must do a summary review of the claim to ensure accuracy and completeness. 3. Prior to beginning the examination, the contractor must ascertain that all the necessary legal and accounting documents are contained in the claim file received from MFCB. If further information is needed to support or clarify the claim, the contractor may contact the mortgagee or the appropriate HUD field office directly. Contact may be made via telephone, facsimile, or email. The contractor must request that the information be supplied within two workdays. The information will be e-mailed to the contractor directly or to the HUD e-mailbox Multifamilyclaimsbranch@hud. The contractor must document telephone contact with a letter, a copy of which must be placed in the claim file. 4. The contractor shall be responsible for the pickup of pending examination claim files hard copies from MFCB when needed. The contractor must further be responsible for delivery of completed claims examination files to MFCB when needed. Pickup and delivery must be made from and to Room 6254 of the HUD building, 451 7th Street, S.W., Washington, D.C.This requirement will go into effect once the COVID-19 telework protocols are lifted and HUD staff is back working in the HQ Building. 5. The contractor shall prepare a detailed final settlement report, which must include the final settlement form, in addition to letter(s) to the lender; and the HUD MF Notes Servicing Branch of HUD. In addition, the contractor must prepare a file for Multifamily Notes Branch containing copies of Schedule A, mortgage note and modification, regulatory agreement, mortgagees certificate, and escrow agreement. The final settlement report including letters must be prepared in Microsoft Word format compatible with the current HUD Windows operating system. Letters must be prepared on HUD letterhead paper for signature of the Chief, Multifamily Claims Branch. 6. The contractor shall provide a written record in the claim file of all contacts with mortgagees and/or their representatives, field offices, etc. 7. The contractor shall input to the system-of-record all data relating to each claim, through the various stages of the claims process. The input must be accomplished in accordance with the PeopleSoft Job Aids as each event occurs. 8. The contractor shall be provided with appropriate access to the PeopleSoft RM system. 9. Claims will generally be provided to contractor for examination twice a week, as available. 10. The examination of assignment claims must be completed within 30 business days of receipt. The examination of conveyance and coinsurance claims must be completed within 45 business days of receipt. 11. The contractor shall notify the COR and request an extension date in writing of any claims that are not expected to be completed in accordance with the claims review periods outlined above. The contractor must detail the reason(s) for the extension in their request and submit the request five (5) working days prior to the expiration of the claim review period. The COTR must approve/disapprove the extension request in writing. Any claim not processed in accordance with the claim review periods specified, without a written extension from the COTR must be penalized 1% per day of the fixed price per claim for every business day the completed claim has not been returned to HUD past the stated claim review period. In instances where the claim is found to be incomplete or calculated erroneously, as determined by HUD, it will be returned to the contractor to be re-worked at no extra cost to HUD. However, many claims incur additional interest charges to the government daily until paid. In these cases, it may be in the best interest of the government for HUD staff to complete the claim or correct any errors and pay as soon as possible to stop the interest from accruing on the claim. 12. The contractor must scan/image all assignment documents and add them to the folder already created for it in the share drive. The miscellaneous claims must be reviewed and forwarded to MFCB with prepared payment documents so payment can be made within the following established timeframes: Any claim not processed in accordance with the claim review periods specified, without a written extension from the COR must be penalized 1% per day of the fixed price per claim for every business day the completed claim has not been returned to HUD past the stated claim review period. In instances where the claim is found to be incomplete or calculated erroneously, as determined by HUD, it will be returned to the contractor to be re-worked at no extra cost to HUD. However, many claims incur additional interest charges to the government daily until paid. In these cases, it may be in the best interest of the government for HUD staff to complete the claim or correct any errors and pay as soon as possible to stop the interest from accruing on the claim. Partial Settlements Paid within 48 hours of receipt of assignment. Bond Refunder Closing date set by agreement between the parties. Supplemental Examination completed within 15 days of receipt by contractor. Partial Payment of Claims Closing date set by agreement of the parties. Reengineering Closing date set by agreement of the parties. Risk Sharing Examination completes within 15 days (for initial settlement) and 30 days (for final settlement) of receipt by contractor. The contractor must submit quarterly reports via email to the COR and PM of all miscellaneous claims and related items. Performance Standards a) Standard: 43 Miscellaneous claims examined and audited AQL: zero deviation Deliverables A007 43 Miscellaneous Claim files A008 Files and storage equipment for shipment 5.4 Records Management The contractor shall be responsible for the storage, filing, records disposal and maintenance of all multifamily claim files and supporting documentation. Records must be retained in accordance with HUD Handbook 2228.1, Records Disposition Management and standard federal records retention procedures as stipulated in 44 U.S.C. 1503 and 3303a. There are currently over 1,500 claim files in storage, and they occupy (estimated) over 300 cubic feet of space. 1. The contractor shall provide appropriate storage equipment to maintain the stored claim files. Any equipment purchased by the contractor under this task must be the property of the Government (HUD). Claim files are to be stored in a fire and flood retardant storage facility. 2. The contractor shall file examination claim files as received from HUD in numerical sequence by FHA project number for ready access. 3. The contractor shall provide file folders, as appropriate. 4. The contractor shall retrieve files upon request from the Contracting Officer Representative (COR) by next business day. 5. The contractor shall provide for delivery and pickup of files to and from the HUD building, Room 6254. 6. The contractor shall provide staff knowledgeable in storing and maintaining the claim files. 7. The contractor shall purge the files annually of all terminated claims. (MFCB will provide a quarterly list of terminated claims). This must include boxing the files, preparing them for shipment to the Federal Records Center (FRC), indexing the files, and shipment of the files to the FRC. Purging of the files must be done in accordance with HUD Handbook 2228.1, Records Disposition Management Policy. Files must be transferred to the Federal Record Center at least once per fiscal year. The contractor must provide the MFCB with copies of correspondence transferring records to storage. 8. Records in storage that have not already been scanned/imaged and store in the share drive or external hard drive, must be scanned/imaged and a folder created for it to be stored in the external hard drive. The contractor shall create and maintain an accurate inventory of all scanned/imaged claim folders. HUD staff will also perform quality control of scanned/imaged claim folders by randomly sampling folders for review. The quality control shall be performed within 10 business days from the date the folder was scanned/imaged. If any of the documents in the folder is unacceptable (tilted more than 10 degrees) it must be rescanned/imaged at no additional cost to HUD. 9. Upon expiration of the contract, the contractor shall prepare files and storage equipment for shipment. Files must be boxed in FHA Project Number sequence and clearly labeled as to the contents. A detailed master index of all boxes and their files must be created by the contractor. The Contracting Officer Representative (COR) will direct the contractor where to ship the files and storage equipment and by what method of transportation. The contractor must provide boxes for shipment. Files must be transferred from the previous contractor to the new contractor within 30 days after award of the contract. 10. The contractor shall provide a listing of all records as requested and must update the system-of-record of the location of files not in their possession (i.e., Accession numbers for files sent to FRC for storage) and the date the terminated files were destroyed by the FRC. Performance Standards a) Standard: Records Management Inventory Report is accurate. AQL: zero deviation Deliverables A009 Report of all records management activity Contemplated performance metrics: Performance Requirement Summary (PRS) Statements Standards/AQLs Incentive/Remedy 5.1 Election to Assign a) Create file folders for 100% of Election to Assign received. AQL: Zero Deviation The reason for zero deviation is because of the time requirements to pay the initial claim settlement within 3 business days of receiving the assignment. 1% deduction from the associated monthly CLIN price for non-compliance. Statements Standards/AQLs Incentive/Remedy 5.2 Examine Regular Claim a) Regular Claim examined will pass Review AQL: zero deviation b) Examination of assignment claims must be completed within 30 business days of receipt. AQL: zero deviation Zero deviation is assured because all examined claims will be reviewed by MFCB staff and again before claim payment is made. c) Examination of conveyance and coinsurance claims must be completed within 45 business days of receipt. AQL: zero deviation 1% deduction from the associated monthly CLIN price for non-compliance. Statements Standards/AQLs Incentive/Remedy 5.3 Examine Miscellaneous Claims and Related Items a) 43 Miscellaneous claims examined and audited AQL: zero deviation 1% deduction from the associated monthly CLIN price for non-compliance. Statements Standards/AQLs Incentive/Remedy 5.4 Records Management a) Records Management Inventory Report is accurate. AQL: zero deviation 1% deduction from the associated monthly CLIN price for non-compliance. Contemplated dollar value of the project: $1 million to $2 million Contemplated place of performance: Contractor's Site.