MODIFICATION
R -- SINGLE FAMILY POST CLAIM REVIEWS
- Notice Date
- 5/28/2015
- Notice Type
- Modification/Amendment
- NAICS
- 541219
— Other Accounting Services
- Contracting Office
- Department of Housing and Urban Development, OCPO, Office of Policy and Systems, Community Service/Housing Support Div, 451 7th Street SW, Washington, District of Columbia, 20410, United States
- ZIP Code
- 20410
- Solicitation Number
- HUD-2015-H-017
- Point of Contact
- Diane-Toledo-Gaskins, Phone: 202 402 4140, Diane-Toledo-Gaskins, Phone: 202 402 4140
- E-Mail Address
-
Diane.E.Toledo-Gaskins@hud.gov, Diane.E.Toledo-Gaskins@hud.gov
(Diane.E.Toledo-Gaskins@hud.gov, Diane.E.Toledo-Gaskins@hud.gov)
- Small Business Set-Aside
- N/A
- Description
- The Source Sought has been extended to June 3rd 2015 at 2:00 p.m. This is a SOURCES SOUGHT NOTICE to determine the availability and capability of qualified small businesses (including certified 8(a), Small Disadvantaged, HUBZone firms; veteran and service-disabled veteran-owned small businesses, and women-owned small businesses) to provide Single Family Post Claim Reviews. The Department of Housing and 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 mortgagor's default of the mortgage loan contract. When all requirements of the National Housing Act, Code of Federal Regulations, and applicable instructions (Mortgagee Letters, Handbooks, Single Family Claims instructions, etc.) required by the contract of insurance have been performed, the mortgagee is entitled to receive single family mortgage insurance benefits from HUD. These insurance benefits are obtained by the mortgagee's submission of a claim application, Single Family Application for Insurance Benefits, Form HUD-27011, to the Department's Single Family Claims Branch. The Office of the Assistant Secretary for Housing - Federal Housing Commissioner oversees all Federal Housing Administration (FHA) programs and operations. Within FHA, there are two offices directly involved in the submission, review, and payment of claims to mortgagees. These are the: (1) Office of the Deputy Assistant Secretary for Finance and Budget and (2) Office of the Deputy Assistant Secretary for Single Family Housing. The Single Family Claims Branch (SFCB) is located in the Single Family Post Insurance Division (SFPID), Office of Financial Services (OFS) under the Office of the Deputy Assistant Secretary for Finance and Budget. The Comptroller performs servicing and accounting functions for all FHA programs. The Office of Single Family Housing is responsible for establishing policies and procedures that mortgagees must follow in servicing FHA Single Family insured mortgages and for monitoring all aspects of mortgage servicing. To ensure compliance, these offices share responsibility for performing compliance and servicing reviews of mortgagees. The Office of Single Family Housing is also responsible for providing technical assistance to all mortgagees who participate in Single Family Mortgage Insurance Programs, and it acts as a liaison between mortgagees, local HUD Offices, the Office of the General Counsel, Single Family Asset Management, Office of Lender Activities and OFS in establishing and maintaining policies and procedures which protect the HUD/FHA Insurance Fund. BACKGROUND HUD pays claims based on the Form HUD-27011 submitted by mortgagees and the certification that the claims are true and correct. The instructions for preparing and submitting the Form HUD-27011 are included in Handbook 4330.4 REV-1, FHA Single Family Insurance Claims, issued September 23, 1994, and subsequent updates via Mortgagee Letters. Mortgagees are required to maintain a review file with complete records to support all claim submissions as noted in 24 CFR. The automated claims system, A43-C, is used by HUD to ensure that a claim submission passes the established control parameters and edits before generating a payment to the mortgagee. This process depends largely upon the accuracy and reliability of data submitted by FHA-approved mortgagees. In FY 2014, 595,270 claim transactions were paid, totaling over $28.3 billion. The majority of claims are processed and paid through A43-C without further intervention. However, if the claim does not pass the established control edits, the system will suspend the claim without generating a payment until the mortgagee corrects the claim data or provides supporting documentation. Certain mortgagee and/or data entry errors that the system cannot readily identify could result in incorrect claim payments. Since HUD pays claims automatically based on the mortgagee's certification, HUD reserves the right to perform post claim reviews on all claim files to ensure mortgagee integrity and accuracy, and to protect itself against over claimed amounts disbursed from the FHA Insurance Fund. In addition to the responsibility for reviewing all claims that fail system edits, HUD is responsible for processing claim adjustments (supplemental claims) and claim withdrawals, maintaining subsidiary records to account for billings and receivables, and disbursing claim settlements. The objective is to conduct Single Family post claim reviews in order to protect the FHA Insurance Fund by providing Post-Claim Review Activities and Technical Support. The post claim reviews shall be conducted in accordance with the Generally Accepted Government Auditing Standards (GAGAS) "Yellow Book" published by GAO to ensure that mortgagees are in compliance with government accounting standards and regulations. The services shall be adhere to the rules, regulations, laws, standards and conventions identified by HUD as well as within the Federal Government. HUD policy is published in: (1) HUD Handbook 4330.4 - FHA Single Family Insurance Claims http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4330.4 (2) Accelerated Claims Disposition (ACD/601) Desk Guide (3) Mortgagee Letters See Attachment 1 (4) CFR Part 203 http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr203_main_02.tpl (5) CFR Part 206 http://www.ecfr.gov/cgi-bin/text-idx?SID=8656aaea362a338453884455d6d49edc&tpl=/ecfrbrowse/Title24/24cfr206_main_02.tpl The Period of Performance shall be for one (1) Base Year of 12 months and four (4) 12-month Option Years. The government anticipates travel related to this requirement. TASKS Post-Claim Reviews: The Government requires approximately 40 post claim reviews to be done annually on claims paid through the Claims automated system (A43C) or manually. Also, to verify the expense amounts claimed for reimbursement, determine the validity of those amounts, and if the allowable items are in compliance with HUD's program procedures, parameters and fee schedules. The Sampling Listing of Lender Locations and Size (Attachment 2) lists the city, state and review size of a sample of the reviews to be performed. The actual number of reviews to be performed and the corresponding review size will be contingent on the number of claims submitted by mortgagees during the review period. HUD cannot predict which companies will file claims nor how many will be filed during any given period. HUD reserves the right to substitute mortgagees. Most reviews consist of a notification letter, an initial report, a follow-up report, and a final report or close out letter. The exceptions will be lenders where the findings amounts are above the maximum threshold HUD considers acceptable. In the case of exceptions, HUD reserves the right to require an expanded review by reviewing an expanded list of cases statistically selected for review. Technical Support: On an on-going basis within the context of post claim reviews, it is required to: 1) provide technical support by making recommendations for modifications to current and proposed policies, practices, procedures, instructions, and claim forms as a result of changes to the Single Family Mortgage Insurance Program; 2) provide information to HUD staff on any of the above changes and recommendations; 3) conduct analyses and apprise HUD staff of problems identified during the post claim reviews regarding the practices of mortgagees; and 4) assist HUD by providing information relating to questioned procedures or billings resulting from claim reviews (e.g., administrative reviews, congressional inquiries, litigation, etc.). Statistical Sampling Plan: It is required to adopt a commonly accepted statistical audit sampling methodology to perform substantive tests on the population of single family claims paid in the prior 3 years by selected servicers. The audit sampling methodology will estimate the proportion of claims which are not adequately documented to FHA's standards. The methodology will have two sets of design parameters: 95% and 90% reliability and 5% and 10% precision. It is required to have an audit sampling methodology which will: (1) accept a list of claims paid; (2) select the sample of claims to be reviewed for the selected reliability and precision; (3) accept, document, and process the results of the review; and, (4) extrapolate sample results to the entire population to determine the amount of overpayment for all claims paid to the respective servicer during the review period. It is required to demonstrate the proposed statistical sampling methodology to be used along with its reliability and precision. It is prudent that the calculation is beyond reproach before HUD employs it. The calculation must be retested on a regular basis to maintain the public trust. It is required to be able to explain and defend its methodology to lenders audited and must be able to defend dollar findings in any report against legal challenges. When the number of paid claims in the universe is too small for sound sampling methods, all paid claims, or a sample of all paid claims, shall be reviewed and the amounts billed will be based on actual findings without extrapolation. At HUD's direction, specific paid claims shall be reviewed separately from claims selected by random sampling. When findings are noted in these directed reviews, the dollar value of these findings will be added to extrapolated findings to determine the total amount billed. HUD reserves the right to verify any or all extrapolations. Review/Audit Plan: Thirty (30) days prior to the date of the first review, and anytime requested thereafter, it is required to prepare an Audit Plan outlining their methodology for conducting the review. The plan must address the method to be used to verify the validity of the cost components of the claims as well as the adherence to HUD policies with respect to time requirements, reporting requirements, loss mitigation offer requirements, supporting documents, etc. Court Appeals: It is required to assist HUD by providing information or supporting documentation if a post claim review appeal results in a legal case. For example: if the mortgagee brings a lawsuit to contest the findings, it is required to provide the citations relating to the items being contested; or if the mortgagee brings a suit protesting HUD's method for selecting claim files, and it is required to explain the process used. Specific Tasks Post Claim Reviews and Technical Support It is required to develop, on a quarterly basis, a plan to conduct 10 post claim reviews of claims paid to mortgagees. The reviews determine whether mortgagees have complied with HUD's regulations for submitting accurate claim applications for insurance benefits and have maintained case files with supporting documentation as required. The focus is to detect over claimed amounts. Because of the annual volume of paid claim transactions, the Contractor must use statistical sampling as the preferred method for conducting reviews. For the purpose of this task, HUD anticipates that at the time, the following determination of review size will be used to establish the appropriate statistical criteria. The number of claims to be reviewed will be based on a 95 percent confidence level, with a confidence interval no greater than 5 percent. The schedule for approval showing the number of claim files to be reviewed to attain the desired 95 percent confidence level/5 percent confidence interval is based on the review sizes. Note that findings identified in the directed sampling will not be extrapolated but will be included as hard dollars in the monetary findings. 2. Review Requirements It is required to provide recommendations relating to HUD guidelines based on mortgagees' issues or questions encountered in complying with HUD regulations, or as a result of findings in separate audits similar in nature due to confusion over HUD regulations. It is required to contact mortgagees to arrange on-site reviews. It is required to develop a chronological plan of mortgagees to be reviewed on a quarterly basis (see Attachment 2). Based on the plan, HUD will provide the Contractor, upon request, with system-generated reports displaying the names of the mortgagees to be reviewed, the number of claims submitted since the last review period, the FHA case number of each claim, the mortgage servicing number, and other related information. It is required to select Category D and E cases to review based on judgmental sampling rather than statistical sampling. These review sizes are too small to achieve a valid statistical projection of over claimed amounts; judgmental sampling allows for the potential to use problem indicators as the basis for selecting cases to be reviewed. It is required to pick up incoming documentation on a daily basis. Mortgagees send the incoming documentation to the HUD to be logged in, and HUD forwards it to the required source to be reviewed. It is required to review all Mortgagee Letters related to Single Family Claims issued by HUD to in order to be knowledgeable of new claim requirements. Annual Reviews It is required to conduct on an annual basis approximately 40 post claim reviews. The reviews must be conducted in accordance with the approved sampling and post claim review plans. Conduct of Reviews It is required to reviews by gathering, reviewing, and analyzing claims data for each mortgagee. Entrance and Exit Conferences must be held for each on-site review to assure agreement on and understanding of procedures and factual data, and to discuss findings and conclusions. Deficiencies must be thoroughly discussed with the mortgagee with recommendations and technical assistance provided to correct the problems noted. The Auditor-in-Charge (Senior Accountant or Senior Auditor) must conduct the Exit Conference. The Project Director must ensure that all reviews are conducted in accordance with professional standards and may, as needed, attend via telephone conference call. Interested small business offerors are encouraged to respond to this notice. However, be advised that generic capability statements are not sufficient for effective review of the respondents' capacity and capability to perform the specific work as required. Response must directly demonstrate the company's capability, experience, and/or ability to marshal resources to effectively and efficiently perform the tasks described above in sufficient level of detail to allow definitive review of the capability statement and evidence that the contractor can satisfy the minimum requirements listed above in compliance with FAR 52.219-14 ("Limitations of Subcontracting"). Failure to definitively address each of these requirements will result in a finding that respondent lacks capability to perform the work. Responses to this notice shall be limited to ten pages, and must include: 1.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. 2. Name, title, telephone number, and e-mail addresses of individuals who can verify the demonstrated capabilities identified in the responses. 3.Business size for NAICS XXXX (size standard $ or number of employees) 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). 4.DUNS number, CAGE Code, Tax Identification Number, and company structure (Corporation, LLC, partnership, joint venture, etc.). Companies also must be registered in the System for Award Management (SAM, at www.sam.gov) to be considered as potential sources. 5. 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. 6. If the company has a Government approved accounting system, please identify the agency that approved the system. Please submit copies of any documentation such as letters or certificates to indicate the firm's status (see item #3, above) Teaming arrangements are acceptable, and the information required above on the company responding to this announcement, should also be provided for each entity expected to be teammates of the respondent for performance of this work. To the maximum extent possible, please submit non-proprietary information. Any proprietary information submitted should be identified as such and will be properly protected from disclosure. This notice is for PLANNING PURPOSES ONLY, and does not constitute an INVITATION FOR BIDS, A REQUEST FOR PROPOSALS, A SOLICITATION, AND A REQUEST FOR QUOTES, or an indication the Government will contract for the items contained in this announcement. This request is not to be construed as a commitment on the part of the Government to award a contract, nor does the Government intend to pay for any information submitted as a result of this request. The Government will not reimburse respondents for any cost associated with submission of the information being requested or reimburse expenses incurred to interested parties for responses to this announcement. RESPONSES TO THIS ANNOUNCEMENT WILL NOT BE RETURNED, NOR 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 may contact one or more respondents for clarifications and to enhance the Government understands. This announcement is Government market research, and may result in revisions in both its requirements and its acquisition strategy based on industry responses. RESPONDENTS MUST SUBMIT CAPABILITY STATEMENT VIA E-MAIL to Diane Toledo-Gaskins at Diane.E.Toledo-Gaskins@hud.gov no later than May 29, 2015at 12:00 p.m. Eastern Time for consideration.
- Web Link
-
FBO.gov Permalink
(https://www.fbo.gov/notices/f75fdc9dd9d75b1cc24c42071f443944)
- Place of Performance
- Address: 451 7th Street, Washington, District of Columbia, 20410, United States
- Zip Code: 20410
- Zip Code: 20410
- Record
- SN03744770-W 20150530/150529035308-f75fdc9dd9d75b1cc24c42071f443944 (fbodaily.com)
- Source
-
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