SOURCES SOUGHT
D -- Hosting Migration Services; Mortgage Backed Securities (MBS) processing; and Operations and Maintenance in support of the Government Natiional Mortgage Association (Ginnie Mae) - Attachments
- Notice Date
- 4/20/2018
- Notice Type
- Sources Sought
- NAICS
- 541512
— Computer Systems Design Services
- Contracting Office
- General Services Administration, Federal Acquisition Service (FAS), Assisted Acquisitions Services (WQA), 301 7th St SW Rm 6109, Washington, District of Columbia, 20407, United States
- ZIP Code
- 20407
- Solicitation Number
- ID11170052
- Archive Date
- 5/22/2018
- Point of Contact
- Reva K Hutchinson, Phone: (202) 708-1253, Daniel Ray Miller, Phone: 7033287248
- E-Mail Address
-
reva.hutchinson@gsa.gov, daniel.r.miller@gsa.gov
(reva.hutchinson@gsa.gov, daniel.r.miller@gsa.gov)
- Small Business Set-Aside
- N/A
- Description
- Attachment - Table 2 Corporate Experience Attachment - Table 1 Corporate Overview Attachment - Systems, Subsystems and Applications Title: SOURCES SOUGHT NOTICE for Hosting Migration Services; Mortgage Backed Securities (MBS) processing; and Operations and Maintenance in support of the Government National Mortgage Association (Ginnie Mae) I. Introduction THIS IS NOT A SOLICITATION FOR PROPOSALS. THIS IS AN UPDATED SOURCES SOUGHT NOTICE for market research purposes only (reference prior Sources Sought Notice dated 3/2/17, re: #ID11170020). The General Services Administration (GSA) Federal Acquisition Service (FAS) National Capital Region (NCR) is releasing this Sources Sought Notice on behalf of the Government National Mortgage Association (Ginnie Mae). The purpose of this Sources Sought Notice is to assist the Government in identifying sources interested and capable of meeting the Government's requirements on schedule and without introducing undue programmatic risk as compared to performance by an incumbent vendor. This information will be used for market research only. The Government is not obligated to release a future solicitation. II. Background Ginnie Mae is implementing an IT Infrastructure Consolidation (ITIC) Program in support of the Data Center Optimization Initiative (DCOI) to enable Ginnie Mae to improve IT efficiencies, performance, agility, and to reduce overall IT enterprise spending on hardware, software, and operations. As part of this program, Ginnie Mae is transitioning to a new ITIC Provider to host, secure, operate and maintain Ginnie Mae's enterprise-wide IT infrastructure. The ITIC contract was awarded to IBM in May 2017. The ITIC contract provides program management, migration, data center support and hosting services for a two year base period and eight, one year option periods. When the ITIC Program started, Ginnie Mae's IT and telecommunications infrastructure was hosted by two contractors, NaviSite and the Bank of New York Mellon (BNYM). The first phase of the ITIC Program was to migrate the hosting services from NaviSite to the new ITIC Provider (IBM) from May 2017 to May 2018. This is on track to be completed in May 2018. The second phase of the program is the migration of most of the hosting services from BNYM to the new ITIC Provider. Migration planning activities are underway with the migration of hosting services scheduled to begin in 2018. The BNYM hosting migration is currently estimated to take 24 months given the complexity of the work required to virtualize critical legacy systems and applications, upgrade end of life software and conduct parallel processing/testing to ensure the migration is completed successfully. This is a major effort and impacts all aspects of Ginnie Mae's Securitization Platform made up of the critical proprietary applications and systems Ginnie Mae and the Mortgage Backed Securities (MBS) market participants use on a daily basis for issuance and administration of Ginnie Mae's $1.8 trillion MBS portfolio. The Ginnie Mae Securitization Platform is made up of legacy and modernized proprietary applications and systems operated, maintained and hosted by three vendors: Ginnie Mae's PPA/CPTA Contractor (BNYM), Ginnie Mae's MBSOA Contractor (Deloitte) and the new ITIC Provider (IBM). These three key business partners operate in a highly integrated IT infrastructure and business process environment to support Ginnie Mae's enterprise and core capabilities of originating and servicing it $1.8 trillion MBS portfolio for Ginnie Mae's Issuers, Investors and other key stakeholders. BNYM provides Ginnie Mae: • PPA/CPTA services. These services are highly automated and can only be executed through Ginnie Mae's proprietary applications. The Government will not allow for any other applications to perform these core functions. • Application O&M and IT infrastructure hosting/O&M services for these proprietary applications. It is important to note that there are two types of O&M services: 1) application O&M (AO&M) which will always remain with the PPA/CPTA provider, and 2) IT Infrastructure hosting O&M (IO&M) which is migrating to the ITIC. • Migration services. Most of BNYM hosted IT infrastructure/hosting IO&M will be migrated to IBM. As previously noted, this migration effort is slated to take 24 months. This migration work is currently in process. Hosting of IPMS would remain with BNYM. These services are provided under existing contract number R-DU100G-15-C08. The contract was awarded by the Department of Housing and Urban Development (HUD) in January 2015 and is scheduled to end December 31, 2018. III. Description The GSA on behalf of Ginnie Mae is seeking sources that can provide the following services commencing January 1, 2019: (1) complete the in-flight hosting migration of most of Ginnie Mae's systems, applications and software hosted at BNYM to Ginnie Mae's new ITIC Provider; (2) support the Ginnie Mae securitization process, which includes Mortgage Backed Securities (MBS) pool processing, delivery of securities, collection and payment of funds, transfer of Mortgage Servicing Rights (MSRs) and related services; and (3) provide AO&M, IT infrastructure hosting IO&M and software enhancement services for Ginnie Mae's systems and applications. Given the nature of Ginnie Mae's proprietary Securitization Platform and its existing business processes and the required Service Level Agreements (SLAs), the AO&M services cannot be bifurcated from the core Pool Processing Agent and Central Paying and Transfer Agent (PPA/CPTA) services. NAICS Code: 541512 Computer Systems Design Services / 522294 Secondary Market Financing IV. Functional Task Areas The following is a high level overview of the principal services to be performed: A. Migrate BNYM hosted systems and applications to the New ITIC Provider: i. Pre-migration Planning Support: Provide pre-migration support to Ginnie Mae and its ITIC Provider. Assist in determining the technology to be migrated to the ITIC Provider and support the development and preparation of a systems migration plan. ii. Virtualization Analysis Support: Prior to migration, support a virtualization analysis of data center environments to determine which servers have already been virtualized and which have not. iii. Virtualization Support: Support the virtualization of the IT infrastructure. Modify applications to enable the virtualization of the servers as part of the migration. iv. Migration Support: Coordinate with the new ITIC Provider to complete the migration of most of the BNYM's hosted systems, 30+ applications including sub-applications, software and hardware to the new cloud or hosted environment. v. Testing & Parallel Processing: Provide testing, parallel processing; participate in security assessment and authorization, security test and evaluation, and/or other validation services to support the successful migration. vi. HUD's Project Planning and Management: Participate in relevant stages of HUD's project management lifecycle for the migration tasks. B. Support the day-to-day securitization process which includes Pool Processing Agent (PPA), Central Paying and Transfer Agent (CPTA), Platinum Trustee and Multiclass Information Agent services using Ginnie Mae's proprietary Securitization Platform as summarized below: i. Grant and manage access to Ginnie Mae applications via the Ginnie Mae Enterprise Portal and ensure program participants meet MBS program guidelines. ii. Process mortgage pool and loan information documents for issuing securities and for issuing Platinum pools. This includes performing all required pooling prerequisites and subsequent pooling activities to enable the delivery of securities. iii. Receive and process Issuer requests to transfer mortgage servicing rights to other Ginnie Mae Issuers in good standing. This includes ensuring that Issuers have submitted all information using the Pool Transfer System, duly approved and properly executed in accordance with Ginnie Mae program requirements as outlined in the Ginnie Mae MBS Guide. Collect all required servicing transfer fees and forward to Ginnie Mae. iv. Deliver issued pools to Federal Reserve for settlement. v. Maintain a Central Registry of outstanding Ginnie Mae Single Class and Multiclass Securities. Maintain the official security holder record for each MBS issuance in the Ginnie Mae provided electronic on-line system on a real time basis. Maintain and update the Ginnie Mae Central Registry of security holders when securities are transferred or exchanged. vi. Disclose monthly Factor file information for Ginnie Mae newly issued and previously issued securities to the investor community. vii. Act as Ginnie Mae's collection agent for principal and interest (P&I) payable by Issuers for all Ginnie Mae I and II securities and for guaranty fees due to Ginnie Mae for both Ginnie Mae I and II programs. viii. Act as Ginnie Mae's paying agent for Ginnie Mae I and II securities and all emergency payments for Ginnie Mae I securities where the responsible Issuer cannot make payment. ix. Provide O&M, hosting, and software enhancement services for Ginnie Mae's systems and applications. x. Act as the trustee for Platinum MBS. Perform the monthly administration of all Platinum securities, which includes the issuance, delivery of trust receipt and disclosure of factors on Platinum securities. xi. Act as the Ginnie Mae Real Estate Mortgage Investment Conduit (REMIC) information agent for all Ginnie Mae guaranteed Multiclass Securities. Collect and incorporate data obtained from the Trustee based upon the characteristics of the Trust Assets actually delivered to the Trust. Maintain Ginnie Mae's REMIC Automated System Database. xii. Provide program participant training and attend and support Ginnie Mae at conferences relating to PPA/CPTA activities. xiii. Create and maintain records and archives related to PPA/CPTA activities. xiv. Implement and maintain a Disaster Recovery Plan to ensure continuity. xv. Develop and maintain a Continuity of Operations Plan (COOP) to ensure continuity. xvi. Provide support for audits such as Statement on Standards for Attestation Engagements (SSAE) 18 Type II SOC I and SOC II, Right to Audit, Federal Information System Controls Audit Manual (FISCAM), OMB A-123, Office of Inspector General audits and other types of reviews and audit support. C. Applications and Hosting Operations and Maintenance (O&M) i. Provide O&M of Ginnie Mae's MBS securitization platform(s) which includes O&M services for all software, hardware, technical and other resources necessary to support the production of IT systems. ii. Provide hosting services and related IO&M for the Ginnie Mae PPA/CPTA applications while ensuring continuity of PPA/CPTA services during the migration of the BNYM hosted systems and applications to the new ITIC Provider. The Ginnie Mae applications include legacy mainframe applications, modernized portal applications and the full suite of applications and databases supporting the PPA/CPTA services. This includes, both the legacy mainframe and modernized portal Integrated Pool Management System (IPMS) suite of applications and all of the other applications, databases and software including: (a) Enterprise Wide Operational Data Store (EWODS); (b) On Line Transaction Processing (OLTP); (c) Customer Service; (d) Letters of Credit; (e) Public Facing Searchable Databases (Multifamily Database, Platinum Database, and REMIC Database); (f) GinnieNET System; (g) Ginnie Mae Enterprise Portal (GMEP) 1.0; (h) Informatica; (i) MyGinnieMae (GMEP 2.0); (j) Multifamily Pool Delivery Module (MFPDM); (k) Platinum Application; (l) Unclaimed Funds; and (m) SAP Business Objects (BOBJ). Further detail regarding the systems, subsystems and applications is provided as an attachment to this notice. iii. Provide AO&M services for Ginnie Mae applications which include web-based and mainframe based technologies, software and related processes. Support to include updates to production systems from defects ("bug" fixes) as well as changes to accommodate new requirements or minor enhancements to functionality, process improvements, or infrastructure. iv. Support corrective, adaptive and other major enhancements to existing systems as part of Ginnie Mae's modernization initiatives. v. Support security, data architecture, configurations, compliance, operational and technical incident reporting, data plus quality assurance, and help desk activities. V. Programmatic Risks and Schedule The BNYM-hosted PPA/CPTA infrastructure to be migrated is critical to the operation of the United States' secondary mortgage market. Any disruption to the services and data that could occur while migrating the applications could severely impact the orderly operation of Ginnie Mae's entire $1.8 trillion MBS portfolio, from the $43 billion in monthly MBS issuances to $38 billion in Issuer collections that are subsequently paid to investors in monthly principal and interest. Ginnie Mae's provides a Government guarantee that ensures that every MBS is backed by the full faith and credit of the U.S. Government. In the event that there is a funding shortfall, or operational failure, the Government is responsible to make the investor whole. Failure to honor the Government guarantee would put the U.S. Government in default under its full faith and credit obligation. Thus Ginnie Mae's top priority and principal requirement is to successfully migrate to the ITIC with absolutely no impact to ongoing daily MBS operations. The Ginnie Mae Securitization Platform is a unique custom developed platform that does not exist anywhere else in the industry. Ginnie Mae relies upon this platform to support all of its core MBS enterprise functions and business processes. This Securitization Platform is supported by three of Ginnie Mae's key contractors in order to fully operate: the PPA/CPTA Contractor (BNYM), the MBSOA Contractor (Deloitte) and the ITIC Provider (IBM). This highly integrated and interoperable platform is currently undergoing a tremendous amount of change with the completion of the NaviSite hosting migration to IBM and then the in-flight BNYM hosting migration. It is imperative that the BNYM migration activity is executed with an integrated approach given Ginnie Mae's core MBS Operations are supported by these three highly integrated providers today. Each one of these partners' business processes are impacted by the BNYM migration (hosting) which adds additional risks to Ginnie Mae's program, process and operations overall. Thus a negative impact in BNYM's systems/applications could have a cascading negative impact on the MBSOA's monthly operational processes and their ability to meet SLAs. For example, if the BNYM databases and Extract, Transform, Load's (ETL's) do not work correctly, the monthly reported Remaining Principal Balances (RPB's) that impact the determination of the monthly $38 billion in payments to investors and monthly disclosure reporting could be negatively impacted. Any failure to distribute funds accurately and timely will invoke the Government guarantee and will have a significant negative ripple effect on the national and international markets and could lead to a Congressional inquiry. Adding an additional contractor to take on any of these services could dramatically increase the risk to daily operations and would delay the migration schedule. The current BNYM contract had a one year transition-out period given the time it would take for a new contractor to become fully educated on the IT infrastructure, proprietary applications and business processes, establish and transfer services, and perform end to end testing and parallel processing to ensure all PPA/CPTA business functions work as expected before moving to production. Any changes to the current process would introduce an additional 12 month transition from BNYM to the vendor which would result in costly and significant delays. The new contractor would also have to secure a Federal Information Security Management Act (FISMA) compliant Security Assessment and Authorization (SA&A) to demonstrate that the new contractor's security controls are configured properly and meet federal requirements for each system, application or environment to receive an Authority to Operate (ATO). These types of activities include security scanning of the new environment as well as application servers and completing defect remediation. In addition, delays in the migration schedule would have an impact on the IBM contract requirements. This migration represents a high level of risk to Ginnie Mae's securitization business given the risks that are inherent in any hosting migration of this size, scope and complexity. Some of the key activities of the hosting migration are to move interdependent legacy applications and databases that are interwoven and highly dependent on each other from dedicated physical servers to virtualized servers where possible, and upgrade end of life systems and software to current application operating systems and versions. The current application architecture is integrated across geographically dispersed data centers and infrastructure. The migration is not a simple lift and shift of infrastructure. Applications will need to be modified when they are consolidated into a single location. During the application transition, applications will need to be configured to their environments since all environments are unique. These virtualization and modernization efforts will also require unique software development / software code changes in order for the application to be ready to migrate to the ITIC or the applications will not function. The one of a kind nature of these applications requires that the software modifications will need to be performed by BNYM who is the Subject Matter Expert on these applications/systems and performs software modifications for Ginnie Mae today. For many years, BNYM has been responsible for all aspects of developing, hosting, operating, maintaining and using the subject Ginnie Mae Securitization Platform to provide PPA/CPTA services. This has included custom application development, enhancements, and developing and implementing business process to ensure that Ginnie Mae's Securitization Platform support all of Ginnie Mae's MBS programs. A new firm would be responsible for seamlessly taking over this body of work that utilizes the Ginnie Mae Securitization platform, to include such tasks as: - Establishing deep expertise and knowledge of over 30 of Ginnie Mae's proprietary PPA/CPTA applications, supporting sub-applications and IT infrastructure environment. - Establishing a thorough understanding of the end to end MBS securitization business processes that these applications support including the many interfaces and interdependencies with the MBSOA applications and processes. - Establishing systems permissions and access to the Ginnie Mae IT solution currently hosted, operated and maintained by BNYM. BNYM currently owns the underlying software infrastructure (operating systems to include Windows, Active Directory, Solaris, Linux, VMWare and applications to include Business Objects, SFTP, Proxy, DNS, CERT, IIS, and Citrix), including the software and infrastructure that support "Clearing Bank" activities such as the interface with the Federal Reserve System for delivery and payment of MBS, and systems that support the transfer of funds via the Automated Clearing House (ACH). BNYM also owns the mainframe hardware, operating system, and mainframe utilities that support all of the mainframe applications that share the BNYM mainframe, the entire underlying network infrastructure to include switches, routers, firewalls, etc., the utility servers servicing all environments and the servers servicing Informatica, Business Objects and the entire data base infrastructure. - Meeting all security and ATO requirements. - Developing a multi-phase migration plan to ensure the sequential, orderly transfer of hosting responsibilities to IBM. - Successfully migrating and testing all applications and systems to ensure they operate as expected for several months given the critical nature of these applications to Ginnie Mae's guarantee obligations to Issuers and investors. - Successfully migrating the legacy IPMS to the company/business mainframe. The Government believes that taking over the BNYM-hosted solution will require a firm to negotiate an agreement with BNYM to migrate the Ginnie Mae solution to that firm prior to that firm subsequently migrating the solution to the ITIC vendor. In order to transition-in to the contract, the new firm would need BNYM to authorize its access to the underlying software infrastructure described above. The new vendor would also need BNYM to grant access to BNYM proprietary technical data needed to support the contract. From an IT security perspective, it would be unusual for one commercial bank to grant access to another bank's employees to have administrative rights and other systems permissions behind the BNYM IT security perimeter. As a result of a non-BNYM vendor having to incur the expense of such an initial transition, the Government believes that performance by a non-BNYM vendor would be substantially more expensive than performance by BNYM. Following transition to a non-BNYM vendor, the Ginnie Mae IT platform would then have to be seamlessly operated and maintained for uninterrupted use for PPA/CPTA services, while simultaneously migrating the solution to the ITIC vendor. The new vendor would have to coordinate the migration with the ITIC and with Ginnie Mae plus BNYM for migration and ongoing securitization operations. If and when a problem arises in any of the processes supporting Ginnie Mae's securitization platform, the new vendor would have to troubleshoot, determine a solution and implement needed changes by working with BNYM, the ITIC contractor and Ginnie Mae. Problem resolutions need to occur very quickly. BNYM needs control over its applications and services in order to resolve problems timely. A firm without BNYM's years of MBS institutional knowledge as well as subject matter expertise in Ginnie Mae's securitization platform and applications may find it difficult to meet problem resolution performance measures which would negatively impact its contract performance. Note that following hosting migration of the Ginnie Mae IT Platform to the ITIC vendor, the Government plans to compete the PPA/CPTA and O&M services. VI. Questionnaire Complete the following questionnaire as outlined below: a. Responses should be submitted electronically by email only to Reva.hutchinson@gsa.gov and Daniel.r.miller@gsa.gov. Limit marketing material and use the attached questionnaire to provide the requested information (no substitutions, additions, or deletions). b. All responses must maintain one inch margins, 12 point Times New Roman font, and be single spaced. c. Table 1 (attached): Corporate Overview shall be no longer than one double sided page or a total of two single pages in length. d. Table 2 (attached): All Corporate Experience must be performed by the respondent as a Prime contractor. Corporate Experience shall be no longer than three double sided pages or a total of six single sided pages. e. Corporate Capabilities and Approaches shall be no longer than six double sided pages or a total of twelve single sided pages and is further limited below. f. All information submitted shall be UNCLASSIFIED. g. Please respond no later than (2:00 PM) Eastern Time on Monday, May 7, 2018, 2:00 p.m.      Corporate Capabilities and Approaches (no longer than six double sided pages or a total of twelve single sided pages) a. Describe your corporate capabilities as they relate to the holistic and integrated Functional Task Areas listed in Sections II, IV and V, above. b. Describe your company/business unit's experience, if any, with sustaining on-going production operations during virtualization and migration of systems, infrastructure and applications without disrupting daily operations. c. Describe your company/business unit's capability, experience, and methodology for properly staffing a contract similar in size, scope, and complexity as referenced in Sections II, IV and V above. d. Describe how your company/business unit would realistically establish a hosted solution, operate and maintain that solution and migrate that solution to the ITIC vendor within the schedule but without substantially increasing the risk to Ginnie Mae operations as compared to BNYM performance. e. Describe how your company/business unit would realistically obtain operational understanding and technical proficiency with Ginnie Mae's operations, the applications and the intricate software solution within the schedule and without introducing programmatic risk as compared to BNYM performance. f. Describe how your company/business would transition, host and install legacy IPMS to a company/business owned mainframe. g. Describe under what conditions your company/business is positioned to negotiate a mutually agreeable arrangement with the incumbent to grant access to your employees to have administrative rights and other systems permissions behind the BNYM IT security perimeter. h. Describe your company/business unit's capability to take over the inflight migration to the ITIC while simultaneously migrating legacy IPMS to your mainframe and transitioning and performing PPA/CPTA services without interruption to all day to day core MBS business functions. This Sources Sought Notice does NOT constitute a Request for Proposal and is not to be construed as a commitment, implied or otherwise, by the Government that a procurement action will be issued. Response to this Notice is not a request to be added to a bidders list or to receive a copy of a solicitation. No entitlement to payment of direct or indirect costs or charges by the Government will arise as a result of the submission of the requested information. No reimbursement will be made for any costs associated with providing information in response to this announcement and any follow up information requests. Responses to this Notice may be considered in the future determination of an appropriate acquisition strategy for the program. The Government may not respond to any specific questions or comments submitted in response to this Notice or information provided as a result of this request. Any information submitted by respondents as a result of this Notice is strictly voluntary.
- Web Link
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FBO.gov Permalink
(https://www.fbo.gov/notices/95e663e6ef1f51d7465e1a9ad63b5257)
- Place of Performance
- Address: Primary Place of Performance: Contractor Site, Program Office Physical Address:, Government National Mortgage Association (Ginnie Mae), 425 3rd Street, SW, Suite 500, Washington, DC 20024, Washington, District of Columbia, 20024, United States
- Zip Code: 20024
- Zip Code: 20024
- Record
- SN04895906-W 20180422/180420230457-95e663e6ef1f51d7465e1a9ad63b5257 (fbodaily.com)
- Source
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FedBizOpps Link to This Notice
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