TOTAL Scorecard Development and Performance

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(s) 541990 and the Small Business Standard is $15M, PSC Code R611for TOTAL Scorecard Development and Performance and is issuing this Request For Information (RFI) in order to solicit responses from capable sources and capability statements to ensure sufficient competition exists to meet the government's requirements. The Government may consider any appropriate set asides for this requirement depending on the available sources. Teaming arrangements and joint ventures will be considered for any subsequent procurement based on the Government's market research, provided that the prime contract is awarded to an applicable small business and that small businesses provide 50% or more of the contractual effort. Please review the Performance Work Statement (PWS) and provide your feedback to virgil.m.rogers@hud.gov, cathy.j.baker@hud.gov, Leroy.H.White@hud.gov Please call 817-978-5407 if there are questions. BACKGROUND The TOTAL (Technology Open to Approved Lenders) Mortgage Scorecard is a statistically derived decision engine maintained by HUD that works in conjunction with outside Automated Underwriting Systems (AUS) platforms to identify FHA loan applications that in addition to the AUS review must pass a manual borrower credit underwriting review prior to acceptance for FHA insurance. HUD's confidential TOTAL scorecard was developed under contract and has been employed in the FHA credit underwriting process since May 2004. The scorecard was built using confidential FHA borrower credit data (procured through other contracts) that was paired with corresponding electronically collected loan application data and related to subsequent loan performance data. Subsequent contracts have provided for performance evaluations, updates, and re-estimation of the confidential mortgage scorecard algorithms as new data and experience have become available. This contract would provide for further rounds of performance evaluations, updates, and re-estimation of the confidential scorecard algorithms using FHA data and performance experience. GENERAL DESCRIPTION OF WORK Purpose and Scope The purpose of this requirement is to obtain contractor services to provide for further rounds of performance evaluations, updates, and re-estimation of the confidential scorecard algorithms using FHA data and performance experience from loans insured. This requirement includes the following services in support of this project: 1. Development of the data files and sample design, for example, adding new credit and performance history data for FHA borrowers as it is made available to existing credit history analysis data files, ensuring consistent definitions and treatment of credit history and borrower-co-borrower classifications across all years and data files; 2. Assist HUD in obtaining and maintaining archive credit history data for FHA loans to support this and other related work. 3. Apply tests of continuing performance of the TOTAL scorecard to updated data files and apply relevant results to refinements of scorecard re-estimation; 4. Re-estimate alternative versions of the TOTAL scorecard inclusive of varying summary and specific consumer credit metrics (FICO versions, Vantage, tradeline attributes, etc.) with an aim to identify superior models; 5. Perform comparative analysis of fair lending impacts with performance tradeoffs of alternative scorecard models; 6. Perform work in support of scorecard adjustments and implementation of revised scorecard algorithms. 7. Conduct scorecard diagnostic analyses using scorecard algorithms and methods in response to GTR inquiries related to scorecard performance. Tasks - Securing Archive Credit Files - The contractor shall assist HUD in obtaining and maintaining archive credit history data for FHA loans to support this and other related work. Activities may include but are not limited to the coordination with credit bureaus, preparation of files, and quality assurance of delivered files. Credit data and summary scores for this review will be provided through separate contract. - Scorecard Performance Review -The contractor shall apply tests of continuing performance of the TOTAL scorecard to updated data files and apply relevant results to refinements of scorecard re-estimation. - Examine Challenger Scorecards and Alternative Specifications - Re-estimate alternative versions and of the TOTAL scorecard inclusive of varying summary and specific consumer credit metrics (FICO versions, Vantage, tradeline attributes, etc.) with an aim to identify superior models. Conduct performance comparisons of the alternative models developed above in both as-estimated and possible implementation forms. - Fair Lending Impacts with Performance Tradeoffs - The contractor shall perform comparative analyses of fair lending impacts of the current scorecard and as identified challenger scorecards and alternative specifications. The contractor will document performance tradeoffs across models and include analysis in the final report. - Special Projects - Implementation, Update, and Support - Conduct scorecard related analyses using scorecard algorithms and methods in support of FHA, GAO or OMB inquiries, FHA actuarial analyses, effects of substituting new-gen or vantage credit scores for standard FICO scores, and other scorecard related issues not identified in items in previous tasks in response to GTR inquiries. - Scorecard Data Files and Documentation- The contractor will assemble and prepare all data files and data documentation necessary to support scorecard validation and re-estimation work and put it into a format and portable media acceptable to HUD. This task with delivery to HUD must be completed within 12 months of award. Contemplated Performance Metrics - The contractor shall deliver the management work plan for the task order within four weeks of award. - The contractor shall provide to HUD monthly progress reports with a summary of each task in the contract on a monthly basis to which monthly invoicing may be scaled. - The monthly summaries shall be submitted by the fifth of each month and include overall progress of the work and specific progress made on each task made in the preceding month, including a discussion of work performed and any unforeseen occurrences. - The contractor shall also provide an up-to-date summary of the planned and actual spending by month and by task in each update. The contractor shall deliver a draft interim report, draft final report, and final report in agreement with the management work plan. The GTR will review all submitted reports for quality and performance and provide comments/feedback to be addressed by the contractor. 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 whether the acquisition is set-aside for small business or in establishing small business subcontracting goals. 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. Whether you have had unequal access to any information relevant to the acquisition that could provide an unfair competitive advantage. 8. 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; 1) Contract name; 2) Contracting Agency POC with contact information; 3) Yearly contract value; 4) Whether your firm was the prime or a subcontractor; 5) Period of performance; 6) 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: virgil.m.rogers@hud.gov; and Leroy.H.White@hud.gov. The e-mail shall contain the following subject line: Response to Sources Sought Notice - Scorecard 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. 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 CST on DATE February 7, 2017, attention POC Virgil Rogers. Late responses will not be considered. No awards will be made from this sources sought. No solicitation is available at this time. All responses will be analyzed in order to determine the appropriate small business set aside for the future acquisition.