Risk Management & Capital Assessment Projections (RMCAP

The NAICS code has change to 541611 Administrative Management and General Management Consulting Services. 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, Women-owned Small Businesses and Economically Disadvantaged Women-owned Small Business (EDWOSB)PWS. The U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA) is to provide risk management, budget, and related policy decisions with respect to Single-Family Mortgage Insurance program. Risk Management & Capital Assessment Projections (RMCAP) purpose is to ensure that the cash flows, net assets, and valuations arising from the mortgage insurance and financial transactions of the Single-Family Mortgage Insurance program and the level, direction, and implications of the risks to the Single-Family Mortgage Insurance program are made clear. Single-Family Mortgage Insurance program includes all FHA loan programs other than multi-family and health care facility programs and may include new single-family programs. Current Single-Family Mortgage Insurance program programs include programs under Titles I and II of the National Housing Act. FHA has employed a variety of financial and statistical models to project its loan performance and cash flow transactions. These models have often used econometric or actuarial techniques. FHA has relied on database systems capable of manipulating the large amount of data related to FHA loan performance. These models are referred to as NPV, ROA, and CSR models. Transactions associated with the FHAs guarantee programs for single-family mortgages are recorded in accounts of the federal government known as the FHA insurance funds. Cash flows on these insurance policies result from both FHAs insurance operations and from transactions mandated by federal credit reform. Aggregate Single-Family Mortgage Insurance program cash flows and balances are reported monthly. Underwriting, servicing and property disposition information on FHA-insured loans and the resulting cash flows and accumulated net assets of the insurance operation reside on multiple systems. The Contractor shall provide risk management statistical models, cash flow and valuations arising from the mortgage insurance and financial transactions support services. These support services shall include: 1. Work, Data, Code and Method Plans 2. Weekly Status Meeting (Tuesday & Thursday) 3. Reports and Analyses 4. Records and Reviews Work, Data, Code and Method Plans The Contractor shall hold twice-weekly status meetings with HUD-designated staff (Tuesday & Thursdays) after contract award. It shall include the following information: Document the proceedings, including a continually updated inventory of past, present, and planned action items with their deadlines and statuses, for circulation to all attendees. Provide an agenda listing all known deliverables for at least the next three months. These meeting minutes shall also serve to inform the creation of regular reports, such as monthly progress reports, to be delivered to HUD-designated staff. The weekly status meeting shall end with a discussion of the agenda for the next meeting. Reports and Analyses Quarterly NPV, ROA and CSR Model, and Major Model Deliverables The Contractor shall provide Quarterly NPV Reports and Major Model Deliverables via email to the COR within 3 business days of the Contractor receiving data (necessary actual data from FHA systems and current economic projection assumptions) for model execution. It shall include the following information: Components of the Reports are described in attachment “Reports Manual”. Inventory of Required Reports. The attachment "Inventory of Required Reports” is a list of reports that expands upon the requirements described. Ad Hoc Analysis The Contractor shall respond to ad hoc assignments at the direction of FHA Risk and are in addition to deliverables specifically described in this document. The Contractor shall address ad hoc analysis as it is identified and requested by FHA. These requests may be generated by individuals external to FHA or be raised during regular discussion of analysis provided by the Contractor. Over the course of the contract, the Contractor can expect to devote, on average, at least one FTE per year for ad hoc assignments. The level of ad hoc work shall ebb and flow. Records and Reviews Knowledge Management System. The Contractor shall establish a "Knowledge Management Tool for efficient and complete retrieval of all deliverables under this contract under technical specifications set by HUD. This tool shall allow for a variety of document searches such as by date, by major topic, and by detailed keywords. The Contractor shall work with FHA to create file-naming conventions that make the characteristics of documents self-evident and easily searched through common interfaces such as Microsoft Windows and OneDrive or other data storage platforms. Replication Packages. For all major model deliverables, The Contractor shall deliver documentation, code, and input and output data that includes a description of all models that shall allow the reader to replicate all model outputs independently on HUD hardware/software platforms. Internal Validation and Verification Report. The Contractor shall employ a formal internal validation and verification process to check on the accuracy of the model. FHA shall provide any mandatory standards for this process. The Contractor shall provide any materials requested by an independent validation and verification contractor employed by FHA. Comparison with Actuarial Review. The Contractor shall review the actuarial review produced by the independent actuary and compare the overall differences in projections for EV, capital ratio, and NPV for Forward and HECM loans. Given that the likely sources of deviations shall be due to differences in the component parts of the NPV of future cash flows, the Contractor shall compare and contrast the following non-exclusive sources of potential differences: 1. For both Forward and HECM Portfolios: MIP revenue, Claim Costs, Claim rates, Prepayment rates, Loss mitigation assumptions, Severity rates, Disposition assumptions, Discount rates, and Macroeconomic inputs such as house price appreciation (HPA) and interest rates. 2. Additionally, for HECM Loans: Termination and Mortality Rates, and Assignment Rates and Lags. 3. Additionally, the Contractor shall review the methodologies employed by the independent actuary from a holistic perspective, and review if the actuarial assumptions and practices adhere to current economic thinking and industry practices. The Contractor shall update this report to incorporate FHAs feedback and revisions. The Contractor shall provide this report in the Base Year and any Option Years. However, be advised that generic capability statements are not sufficient for effective review of respondents’ Response must directly demonstrate the company’s capability, experience, and/or ability to marshal resources to effectively and efficiently perform each of the tasks described above in sufficient level of detail to allow definitive numerical evaluation; 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 the requirement will result in a finding that respondent lacks the capability of performing the work. Responses to this notice shall be limited to ten pages, and must include: 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. Name, title, telephone number, and e-mail addresses of individuals who can verify the demonstrated capabilities identified in the responses. 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). 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 https://www.sam.gov/portal/SAM/#1 to be considered as potential sources. 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. 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 there 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, OCPO may contact one or more respondents for clarifications and to enhance the Government’s understanding. 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 Brenda K Lee at [email protected] no later than April 27, 2020 3:00 PM Eastern Time.