|1. Subcontracting Plans
|2-A. List of Potential Subcontractors
1995 1996 Oct. Nov. Dec. Jan. Feb. Mar. April. | | | | | | | | -------------------------------------------- | Subcontracting | (10/15-12/5)
1. SUBCONTRACTING PLANS
HUD has requested the Due Diligence Contractor to outsource certain services needed to complete the sale. Subcontracted services include electronic imaging, BPOs (broker's price opinions), and credit reports. Each of these services is described in more detail below.
Subcontractors are selected based on proposals submitted by a limited number of firms which exhibit the requisite capabilities to perform the work within necessary time frames and other constraints. The Due Diligence Contractor's primary objective is to award services to the firms that can bring the greatest value to the project, with consideration of price and other factors. In all instances, the Due Diligence Contractor reserves the right to award subcontracts to other than the lowest-cost offeror of services.
All offerors are required to submit an executed confidentially agreement with their proposals. They are given specific requirements that must be addressed in their proposals to enable the Due Diligence Contractor to fairly compare and evaluate proposals. All offerors, for all services, are asked to self-certify that they have not been debarred or are not otherwise prevented from performing work for HUD.
Proposals are evaluated by the staff of the Due Diligence Contractor with appropriate knowledge in the service area. A checklist is used for evaluations to ensure that all critical factors are given appropriate consideration by the evaluation committee. The checklist specifies points to be allocated for each critical factor in the assessment.
Although bidders conferences, interviews, or "best and final" offerors are not contemplated, the subcontracting plans provide for these if the Due Diligence Contractor determines that one or more of these would benefit the proposal process.
For electronic imaging and the credit report provision, it is to the Due Diligence Contractor's advantage to contract exclusively with large firms with a strong reputation in their respective fields because of the large volume of work required for completion in a short time. To provide the necessary BPO reports, a firm with national coverage should be selected due to the diverse geographic area which needs to be covered. The volume and geographically diverse nature of the required products precludes many local or regional firms from being able to perform the service economically and efficiently.
The overall goal of the Due Diligence Contractor's subcontracting plans is to find the best firms for the contracted services through a fair and reasonable process. The sections that follow are designed to accomplish these goals.
B. Potential Subcontractors
The Due Diligence Contractor has developed a list of firms which have stated that they are qualified to perform one or more of the above services and are interested in submitting a proposal for single family nonperforming loan sales. The list consists of firms contacted by the Due Diligence Contractor, firms which themselves contacted the Due Diligence Contractor, and others provided by various sources. The list of firms which actually submitted proposals for each of the required subcontracting disciplines is included in Exhibit 2-A.
C. Proposal Process
The firms are invited to submit proposals by the RFP (Request for Proposal and attachments). The RFP includes:
Other than the statement of work, the RFP is a fairly standard document. The full RFP (including the statement of work requesting BPO services) is included in Exhibit 2-B. The statements of work for the image service and the credit report service are included separately in section 2 of this chapter.
Offerors are given a specified number of days to submit written questions to the Due Diligence Contractor regarding the proposal requirements or process. The Due Diligence Contractor replies to all questions in writing, and provides a copy of all questions and answers to all offerors four or five days before the proposals are due.
Offerors are required to adhere to a strict page limit. This enhances the Due Diligence Contractor's ability to review all proposals in a timely manner. Specific instructions are given for the inclusion of an organizational chart for the project team, the format for descriptions of prior experience (which includes references with phone numbers), and resumes for team members. A specific time and date for proposal submission is also stated in the RFP. The Due Diligence Contractor evaluators adhere strictly to due date, time, and other requirements specified in the RFP to create a level playing field for all offerors.
D. Selection and Award
Proposals submitted are evaluated in the following manner:
If considered necessary and appropriate, the evaluation committee may request interviews with any of the firms under consideration. The committee may also invite selected offerors to submit a best and final offer.
Once a firm has been selected as the winning offeror, that firm is asked to certify that it has not been debarred or in any other way precluded for federal procurement activities. The firm will also be asked to execute a subcontract agreement. The BPO subcontract agreement is included as Exhibit 2-D.
2. SUBCONTRACTING STATEMENTS OF WORK
The statement of work for BPO services is included in the RFP shown in Exhibit 2-B. The statements of work for the other two subcontracted services are also duplicated in this section.
A. Credit Report Service Subcontracting
The following is the statement of work provided in the RFP for credit reports subcontracting:
The engagement consists of the following services:
An "in file" credit report which must include the following information, if available:
The credit reports must be provided by tape with both the project control number and FHA case number included on each report as part of the contract. In addition, a report must be delivered in electronic format containing the project control number, FHA case number, social security number and credit score. Contractor out-of-pocket expenses in connection with these services, including delivery of reports to Washington, DC will not be reimbursed.
B. Image Service Subcontracting
The following is the statement of work in the RFP for electronic imaging subcontracting:
The imaging processing must by a "turnkey" operation and include the following specifications:
1. A network PC imaging system must be developed that can scan, index, and write to optical disk approximately 15,000 loan files in a six- to eight-week period. Scanning resolution must be a minimum of 200 dots per inch. The imaging must be performed at a facility to be provided by the contractor in the Washington, DC metropolitan area and include loan tracking software as well as bar code technology to track every loan file through each stage.
2. Daily reports must be made to the Due Diligence Contractor outlining the status of the imaging process as well as the location of the files in the process.
3. All documents associated with the 15,000 loans are to be scanned into the system and indexed to simplify the retrieval process. The documents are to be filmed in sequence and indexed as follows:
4. The contractor will repair all torn documents, unfold documents, smooth creases and insure a clear image. After the imaging process, the files shall be reconstructed in strict accordance with the manner in which received. It is important that the files be kept in the exact order as received from the Due Diligence Contractor and the integrity of the files be maintained. When filming a two-sided document of a folded document, every effort should be made to return it right side up to the file.
5. The system should be able to electronically retrieve and add to each file, a credit report and a broker's price opinion (which may require one color print), or other additional documents that may be received from other sources.
6. Up to four pool copies for each loan must be loaded into the system prior to investor due diligence.
7. A quality control process must be provided to assure accuracy in indexing and clarity of the images. All images must be checked against the original documents to ensure accuracy in indexing and that all pages are scanned. Contractor will be required to rescan all images which are not 100% accurate, at the Contractor's expense.
8. Contractor shall acknowledge that the Due Diligence Contractor has the right to review, monitor, and evaluate plans, schedules, controls, and interim work product at any or all stages of completion.
9. A 50-user network for loan file review must be established, installed, and maintained at the review site in Washington, DC. All files must be able to be reviewed by 50 investors simultaneously. Retrieval time must be in three seconds or less, and video monitors must include enhancing equipment, and printer capabilities. Personnel must be present on-site to provide training for investors on equipment use and to handle system problems.
10. Files and documents are not to be removed from the document imaging site except with the authority of the Due Diligence contractor.
11. The contractor shall be responsible for furnishing all facilities, supplies and equipment necessary or appropriate for the completion of all services, assignments, projects, or programs to be performed under the Agreement. The 50-user network will be established at the due diligence facility.
12. The contractor must establish a work station at the Department of Housing and Urban Development after the sale for post-sale document retrieval and review by HUD personnel for a period of up to one year.
13. Out-of-pocket expenses will not be reimbursed.
Exhibit 2-A List of Potential Subcontractors
Exhibit 2-B Request for Proposal and Attachments
Exhibit 2-C Proposal Evaluation checklist
Exhibit 2-D Subcontract Agreement