REQUEST FOR INFORMATION (RFI) -- LOAN MONITORING SYSTEM COTS PACKAGES 1. BACKGROUND The Small Business Administration (SBA) is interested in procuring a commercial off the shelf (COTS) loan management system. Through its participating lenders, SBA provides loan guaranties to eligible small businesses. In addition, the SBA's Disaster Assistance Program provides home and business loans to assist disaster victims. The loan management system will support all SBA loan programs, be WEB-enabled, and be robust enough to handle a large portfolio. 2. PACKAGE REQUIREMENTS The SBA's requirements include the following functional areas: receipt of business loan applications, credit scoring, processing of loan applications through decision, automated documentation preparation, risk management, loan servicing of guarantee and direct loans (business and home loans), care and preservation of collateral, payment processing, collections, asset sales, loan liquidation, lender oversight, fraud reduction, data warehousing, and decision support. The SBA is aware that a single system solution may not be available and is also interested in COTS packages that address individual functional areas. (a) Loan Guarantee Application Processing: SBA's lending partners will submit electronic applications via the Internet or remote dial-up. The system should provide remote data entry by lenders and formatted file transfer from lenders who complete applications in their own loan system. SBA loan officers will directly input those applications that are received by mail or fax, and modify any application in the system. An audit trail of all changes to loan applications will be maintained in the system. The system will have the capability to incorporate SBA specific business and processing rules. Applications will be credit-scored and a risk determinant will be assigned to each application. COTS packages should provide additional unspecified data elements for SBA-specific data. SBA personnel will process the application through decision using the system's analytical tools, cash flow analysis, workflow, document preparation, and ad hoc query capabilities. The system will interface with the other SBA systems; i.e., core financial system, lender management system and security system to process real-time and batch transactions. (b) Loan Servicing: SBA personnel will modify, update, query and delete data in the loan portfolio and have electronic access to audit trails of all changes. SBA's lending partners will query their loans in the SBA portfolio and perform unilateral updates and modifications via secure Internet access. The system will perform all of the functions associated with the servicing of loans (guaranteed and direct) i.e. interest calculation, amortization, accruals, discounting, payment processing, etc. Borrowers will access information on their account through Internet queries or audio response systems. The system will incorporate SBA specific business and processing rules. The system will interface with the other SBA systems; i.e., core financial system, lender management system and security to process real-time and batch transactions. (c) Delinquent Debt Collection and Loan Liquidation: The SBA reports delinquent account information to credit bureaus. The Agency contacts debtors to attempt to resolve delinquencies. Delinquencies, which are not resolved, become subject to administrative offset, garnishment and referral to collection agencies. SBA may negotiate a workout with the borrower and modify the terms of the loan. The delinquent debt may be referred for litigation if there is sufficient reason to conclude that referral may result in full or partial recovery. All contact with the debtor and any actions taken in collecting the debt will be documented in the system by SBA personnel. Guarantee lenders may electronically, via secure Internet, file a claim with the Agency as a result of default by the borrower. Claims will be reviewed and processed by SBA and if approved, payment will be made to the lender changing the status of the loan from guaranteed to acquired. SBA will evaluate the delinquent debtor for collection of the debt, foreclose on collateral, negotiate a workout or write-off the delinquent debt. (d) Assets Sales: The SBA will periodically conduct asset sales. Financial advisors may be engaged by the Agency to conduct a portfolio evaluation and make recommendations as to whether to conduct the sale. SBA personnel will review the portfolio to select loans to be sold on the market. Activities will be performed to prepare statistical data for finalizing the terms of the sale and record regulatory approval of the sale. The Agency will offer the borrowers on the loans the option of prepaying the identified loans prior to the sale. Statistical data will be prepared for finalizing the terms or the sale, the sale closing, and the transfer of the proceeds to Treasury. At the time of the sale SBA will transfer title to the purchaser. (e) Lender Oversight: The SBA will monitor the different types of lending partners authorized to provide loans and loan guarantees on behalf of the Agency. A lender databasewith associated security will be the controlling agent that will grant access rights only to those lenders who have signed agreements with the Agency and who have been designated as authorized SBA lending partners. The lender database will also contain policies and guidelines, terms and conditions of the agreements, lender performance standards and program participation criteria. SBA personnel will monitor lender compliance through analysis of loan information, lender information, and lender review information against loan program performance criteria. SBA personnel also perform lender reviews and will log the results of the review in the system. (f) Risk Management: Using a combination of loan information, lender information, lender review information, external economic information, and various risk and econometric models SBA personnel will better understand and therefore better assess the Agency's risks and future risks with a greater degree of accuracy. Several risk models will be developed in conjunction with the lender database. SBA will also collect data from external sources such as the Federal Deposit Insurance Corporation, the Department of Labor, the Federal Reserve Board, and the Bureau of the Census so that risk management models can be constructed to more accurately reflect the entire portfolio. These data sources will become components of a risk-forecasting model that will allow SBA to begin to anticipate potential problems and take action early. (g) Data Warehousing, Executive Information, Decision Support and Fraud Detection: The SBA has an overall requirement to manage loan data and information. One of the key components to SBA's loan management system is a core system where all data is stored in one central location. This data will be accessible to users on an "anytime, any place" basis with appropriate access rights and security. This requires sophisticated systems (executive information and decision support) and a database (data warehousing) that allow SBA employees to perform various data analyses that range from the very simple to the highly sophisticated. Access in the format, time, and place needed empowers the SBA employee to access information at the stroke of a key and simplifies fraud detection. Every employee will be able to perform analysis appropriate with the functional requirements in his/her area. 3. TERMS OF THIS RFI The Government does not presently intend to award a contract, but desires price information and capabilities for planning purposes. Responses to this notice are not offers and cannot be accepted by the Government to form a binding contract. Reference Federal Acquisition (FAR) 15.201. 4. SUBMITTAL REQUIREMENTS Interested firms are invited to identify their capabilities and provide limited price information for planning purposes by no later than April 17, 2000. Submit information to Deborah Woods, Office of Procurement & Grants Mangement. E-MAIL: Deborah.Woods@sba.gov, Deborah.Woods@sba.gov. Posted 03/24/00 (W-SN438035).

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