Description
OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHTPRE-SOLICITATION NOTICE HUD-OFHEO-2007-0001 The Office of Federal Housing Enterprise Oversight (OFHEO), the oversight agency for Fannie Mae and Freddie Mac, is conducting a two-phase competitive acquisition for the purchase of data (and possibly software) related to losses from operational events. A vendor may provide information in response to this notice on the data, the software or both the data and software. Operational losses include direct and indirect losses associated with the operational risk exposure of a firm including those related to legal liability, reputational setbacks, and compliance and remediation costs where such losses are consequences of operational events. Operational risk is the exposure to loss from inadequate or failed internal processes, people, and systems, or from external events. The data will be used to analyze the losses associated with operational events at financial institutions. In addition, OFHEO intends to develop quantitative approaches for determining the adequacy of capital held against operational risk. Increased understanding of operational loss events and their implications for capital reserves will directly support the conduct of OFHEO?s oversight responsibilities. 1. OFHEO is looking for data that, at a minimum, shall: a. Provide relevant information on the organization suffering the loss such as asset size, type of institution, and major business lines; b. Provide a loss amount using U.S. dollars; c. Provide the loss date; d. Provide the Basel risk category and risk type identifiers; e. Provide the Basel business unit identifiers; f. Cover the financial services industry in the United States; and g. Be available in a format that can be used with a variety of analytical tools. 2. At a minimum, OFHEO requires software with preprogrammed capabilities to: a. Scale loss data from different sources to improve consistency (for example by some measure of an institutions? size or risk exposure); b. Perform a variety of approaches to model economic capital, including the loss distribution approach (LDA); c. Produce a variety of parametric and nonparametric estimates of the probability density and cumulative distributions of the frequency of operational losses; d. Produce a variety of parametric and non parametric estimates of the probability density and cumulative distributions of the severity of operational losses; e. Incorporate scenario analysis; f. Produce analyses of business line and Enterprise level risk exposures and economic capital requirements; and g. Facilitate sensitivity analysis and robustness checks of those analyses. 3. In order to ensure that only those vendors who have the capability of providing the services required, OFHEO is using the procedures at Federal Acquisition Regulation (FAR) part 15.202, ?Advisory Multi-Step Process?. The two-phase approach consists of submission of corporate capability statements and participation in oral presentations (Phase I), and submittal of written technical and cost/price proposals (Phase II): a. Phase I: Interested contractors/vendors will provide limited information in response to subparagraphs 1 and/or 2 above, that should be readily available on the following: I. Corporate Capability Statement: List of services/products commercially available, or that can be available by the contract performance due date, that comply with this pre-solicitation notice. The Corporate Capability Statement shall be no longer than 4 type written pages. II. Past Performance Information: References from at least 3 customers, of which at least 2 will be for contracts that have been completed, one may be on-going. The work must be similar in nature to this requirement. III. Confirmation of the vendor?s availability to participate in Oral Presentations. The oral presentations are an informal discussion between the vendor and the government. It is anticipated that the discussions will assist OFHEO in the development of the final Statement of Need. No discussion of cost will be allowed at this phase a. Oral presentations will be held approximately 4 weeks from the date of this posting. Invitees will be given morning and afternoon options for presentation times. Invitees may participate either on-site at OFHEO, or via telephone; b. Oral presentations will be limited to 2 hours in length; and c. If the vendor?s product is not a fully developed commercial, off-the-shelf product, the vendor?s key personnel (i.e., subject matter expert) responsible for development of the product shall participate in the oral presentations. b. Phase II: OFHEO shall evaluate all responses in accordance with the criteria stated above, and shall advise each respondent in writing either that it will be invited to submit a written technical and cost/price proposal or, based on the information submitted, that it is unlikely to be a viable competitor. OFHEO shall advise respondents considered not to be viable competitors of the general basis for that opinion and state that notwithstanding the advice provided by OFHEO in response to their submissions, they may participate in the resultant acquisition.