Rent Comparability Studies

THIS IS A SOURCES SOUGHT NOTICE ONLY. This is not a request for offers, quotes or proposals. This notice does not represent a commitment by the Government to issue a solicitation or award a contract. This is a market research tool only to determine the capability of potential sources. The Department of Housing and Urban Development (HUD) is contemplating establishing a contract under NAICS Code 531320 - (Offices of Real Estate Appraisers), and the Small Business Standard is $7Million, PSC Code 411 - Professional Real Estate Appraisers, for Rent Comparability Studies BACKGROUND This is a new requirement. The area covered are the States of Massachusetts, Maine, Rhode Island, Vermont and Connecticut. Mark Up to Market (MU2M) Program A. Background and Objectives Section 8 laws and administrative procedures require HUD obtain and review Rent Comparability Studies (RCSs) when initially renewing most Section 8 contracts and when processing Mark-up-to-Market (MU2M) rent increases using the Operating Cost Adjustment Factors (OCAF). The market rents resulting from these studies determine the rents owners can receive and, hence, greatly influence whether an owner will renew and continue providing project-based assisted housing or opt-out of the Section 8 contract and convert to unassisted, market rent housing. The market rents set in these studies also drive HUD's outlays for Section 8 project-based subsidy. Owners hire an appraiser and submit a Rent Comparability Study to HUD. However, in the MU2M cases, HUD must directly contract for a third-party Rent Comparability Study. HUD is required to purchase a study when the owner elects to mark rents up to market under Option 1 of HUD's current Section 8 Renewal Policy Guide. This request seeks appraisers to prepare Rent Comparability Studies, according to the Section 8 Renewal Policy Guide, on these MU2M cases. B. Scope of Services 1. The contractor shall prepare Rent Comparability Studies for Section 8 contracts identified by the Government Technical Representative or Contracting Officer's Technical Representative. The contractor shall prepare the study in accordance with the procedures set forth in Chapter 9 of the HUD Section 8 Renewal Policy Guide (the HUD Guide). The Guide can be found at http://www.hud.gov/offices/hsg/mfh/exp/guide/s8renew.pdf 2. The contractor shall furnish all personnel, material, supplies, equipment, transportation and facilities necessary to provide the services required by this contract. C. Tasks Required in Preparing a Rent Comparability Studies The contractor shall comply with the most current Uniform Standards of Professional Appraisal Practice (USPAP) in the manner discussed in Chapter 9 of the Section 8 Renewal Policy Guide. The contractor shall perform the tasks as required in Chapter 9 of the guide. These tasks include, but are not limited to: 1. Analyzing the subject Section 8 property - identifying unit types the RCS must cover and classifying unit types as primary or secondary - inspecting the subject Section 8 property and its surrounding neighborhood; - photographing the subject and comparables; - assessing the project's condition, appeal and other characteristics; and - identifying any non-shelter services in elderly/disabled units and determining which services are provided by the project and which are accessed through outside agencies. 2. Selecting comparables. For each primary unit type, the contractor must try to locate five comparable units that meet the six conditions in Chapter 9. If the contractor cannot locate five properties that meet all six conditions, the contractor shall select comparables in accordance with the guidance set forth in that same chapter. Appraisers must justify using fewer than five comparables, rent restricted units, units outside of subject's market area or units significantly dissimilar to the subject (e.g., different number of bedrooms, structure type or level of services). 3. Collecting and documenting data on comparables. The contractor must collect data as required by Chapter 9, of the HUD Guide and document the data as required by that section of the HUD Guide. For each primary unit type, the contractor must prepare a Comparable Property Profile and a Rent Comparability Grid (HUD 92273-S8) as set forth in Chapter 9, and the appropriate Appendix of that chapter. The profile must contain at least the information required by the appendix of that chapter in the HUD Guide. The contractor must prepare the Rent Grid in accordance with the instructions in the appendix. The appraiser should use HUD's Excel form to prepare the Grid, unless the GTR agrees to another method of completing the Grid. 4. Computing an adjusted rent for each primary unit type as directed in Chapter 9 of the HUD Guide. The contractor must take care to comply with that chapter's direction on non-shelter services. 5. Using the adjusted rents to derive a market rent for each unit type as directed in Chapter 9 of the Guide 6. Preparing the report in the format required by the HUD Guide. The report must comply with the appropriate section and appendix of the HUD Guide. Narratives required in the report must be concise but contain enough information that a person not familiar with the properties and market areas involved can understand how the appraiser arrived at his/her conclusions. It is strongly suggested that the appraiser use the Rent Comparability Study sample enclosed in the appendix of Chapter 9 of the Guide as a model for their report. D. Who Can/Can't Perform The Work Requested. 1. The Rent Comparability Studies must be prepared by, or under the direction of, a Certified General Appraiser who meets all of the qualifications listed in Chapter 9 of the Guide. The appraiser must sign and take full responsibility for the report, but appraisal assistants may contribute to any of the tasks if: 1) the assistant is employed by the same firm as the appraiser, and 2) the report identifies the roles the assistant appraiser performed. 2. The contractor shall not employ or subcontract with any person who is a current or former civilian employee of the U.S. Government if the employment of that person would create a conflict of interest, an appearance of any conflict, or otherwise conflict with Federal or HUD ethics rules. The contractor shall be responsible for resolving any actual or appearance of a conflict of interest and shall not rely on HUD to resolve the issue through reassignment of workload or any other means. 3. Key personnel who will be performing the rent comparability studies shall be listed and a copy of their license will be submitted with the quote package. 4. Special training or education of proposed personnel is to be included in the quote package. E. Deliverables and Schedule Requirements Within 20 business days of receipt of HUD's Rent Comparability Study order or within any alternate agreed upon time by the Government Technical Representative (GTR) or Contracting Officer Technical Representative, the contractor shall submit two sets of the following, in hard copy, to the GTR. The GTR for this action is ________TBD. The telephone number is ___________TBD. The GTR's email address is ___________TBD. Each of these materials must meet the applicable requirements of Chapter 9 of the Guide. If the GTR requests it, the contractor must submit the Rent Comp Grid in Excel on disk or via email. At a minimum, the deliverable must contain the elements set forth in the appropriate section of Chapter 9 of the Guide: 1. Appraiser's Transmittal Letter 2. Scope of Work 3. Description of Subject Property (including color photographs) 4. Identification of the Subject's Market Area 5. Description of Neighborhood 6. Narrative Describing Selection of Comparables 7. Locator map for Subject and Comparables 8. Rent Comparability Grid (HUD 92273-S8) for Each Primary Unit Type 9. Narrative explaining adjustments and market rent conclusions (one set of explanations for each Rent Grid) 10. Comparable Property Profile for each Comparable (including a color photograph) 11. Appraiser's Certification 12. Appraiser's License (only if relying upon temporary license) F. Reserved G. Disclosure of information. Except as specifically authorized elsewhere in this contract or as directed by the GTR or Contracting Officer, the contractor shall not disclose any information about the conditions or management of properties to any party. H. Reserved. II "As Rehabilitated" Rent Comparability Studies for HUD Mark Up to Market (MU2M) Program A. Background and Objectives Same as I.A. above. If the owner will be doing rehabilitation on the property, a copy of the proposed rehabilitation will be provided at the time of assignment. B. Scope of Services As indicated in I.B. above. C. Tasks Required in Preparing a Rent Comparability Study As indicated in I.C. above, but to include an estimate of "Market Rent" as of the date of the study, taking into consideration the rehabilitation planned for the property. The proposed scope of work will be provided. D. Who Can/Can't Perform. The Work Requested Same as I.D. above E. Deliverables and Schedule Requirements Same as I.E. above F. Payment Information Same as E.F. above G. Disclosure of information Same as I.G. above H. Professional Liability Insurance Same as I.H. above III Reserved. DEFINITIONS WHAT IS SAM? The System for Award Management (SAM) is the Official U.S. Government system that consolidated the capabilities of CCR, ORCA, and EPLS. There is NO fee to register for this site. Entities may register at no cost directly from www.sam.gov . User guides and webinars are available under the Help tab. GENERAL DESCRIPTION OF WORK Please see above that the tasks require a set of skill: CONTEMPLATED PERFORMANCE METRICS Contemplated performance metrics: TBD The proposed is Performance Based Contract (PBS) CONTEMPLATED REPORT REQUIREMENTS See above the types of reports contemplated here. CONTEMPLATED MAGNITUDE OF THE PROJECT The potential dollar range of the contemplated requirement here: $2M for five years.) CONTEMPLATED PLACE OF PERFORMANCE The potential place of performance of the contemplated requirement: Contractor locale.) RESPONSE REQUESTED This synopsis is a market research tool being used to determine the availability and capability of potential sources prior to determining the method of acquisition and whether the government will proceed with this acquisition. The Government will not pay for any information solicited. If a contract is ultimately pursued, responses to this synopsis will be used to aid in determining the strategy. All qualified firms are encouraged to respond. The capability statement shall address, at a minimum, the following for the past three years: 1. Name and address of company and or companies (if there is a teaming arrangement or joint venture); 2. Technical expertise relevant to the requirement; 3. Technical approach relevant of the requirement (1 to 2 paragraphs); 4. Management approach relevant to the requirement (1 to 2 paragraph); 5. Corporate experience relevant to the requirement (1 to 2 paragraph); 6. Indicate if you are a small business or any other socio-economic categories that apply to your firm under the designated NAICS code; 7. Relevant past performance. Your capability statement needs to include a list of three customers (Government/non-Government) within the past three (3) years highlighting similar work in nature, scope, complexity, and difficulty and a brief description of the scope of work. Your submission for relevant past performance must include for each customer: - Contract name; - Contracting Agency or Department, POC and contact information; - Yearly contract value (in $); - Whether your firm was the prime or a subcontractor; - Period of performance; - Description of work and how it relates to the requirements. Interested firms responding to this market survey must provide a capability statement demonstrating their experience, skills and capability to fulfill the Governments requirements for the above. The capability statement shall be in sufficient enough detail, but not exceed _10_ pages TOTAL, so that the Government can determine the experience and capability of your firm to provide the requirements above. Please specify one primary and one alternate Point of Contact (POC) within your firm, including telephone numbers and email addresses in case clarifications of your submission are needed. Only electronic copies of capability statements will be accepted and should be emailed to: alfredo.valentin@hud.gov . The e-mail shall contain the following subject line: Response to Sources Sought Notice - Rent Comparability Studies for the HUD New England Office Requirement. The Government may use the responses received to determine whether to proceed with the acquisition as a set-aside, or in the absence of a least two small business responses to this notice, may determine to proceed with a full and open competition under FAR Parts 12/15. This decision and whether to proceed with the acquisition is at the sole discretion of the Government. All interested contractors should submit their capability statements by TIME: 12:00 Noon ___ on DATE: Friday, 02/28/2014, Attention POC Alfredo Valentin. Late responses will not be considered.