Attachment_J-2_Quality_Assurance_and_Surveillance_Plan.pdf

Attachment J-2 RFP Number: 69319519R000003

J-2 Quality Assurance Surveillance Plan (QASP) Capital Investment Grant Program

Introduction This Quality Assurance Surveillance Plan (QASP) provides a systematic method to evaluate performance for the stated contract. This QASP explains the following:

• What will be monitored.

• How monitoring will take place.

• Who will conduct the monitoring.

• How monitoring efforts and results will be documented.

This QASP does not detail how the contractor accomplishes the work. Rather, the QASP is created with the premise that the contractor is responsible for management and quality control actions to meet the terms of the contract. It is the Government’s responsibility to be objective, fair, and consistent in evaluating performance. In addition, the QASP should recognize that unforeseen and uncontrollable situations may occur.

This QASP is a “living document” and the Government may review and revise it on a regular basis. However, the Government shall coordinate changes with the contractor.

Updates shall ensure that the QASP remains a valid, useful, and enforceable document.

Copies of the original QASP and revisions shall be provided to the contractor and Government officials implementing surveillance activities.

The following FAR clauses will apply:

52.246-4 Inspection of Services – Fixed-Price, 52.246-6 Inspection of Services – Time-and-Material and Labor-Hour

In addition, all other applicable terms and conditions as stated in the base Indefinite Delivery-Indefinite Quantity (IDIQ) contract shall apply for ensuring quality control of the work performed.

1.0 Objectives

The contractor(s) shall provide support conducting detailed Financial Capacity Assessments (FCAs) and Financial Assessments (FA) for projects seeking Section 5309 funds. FCAs and FAs entail a review of the financial condition and capacity of the project sponsoring agency and the level and stability of local financial commitment to the project. The FCA and FA also consider the project sponsor’s system-wide financial capacity, assessing future operating and infrastructure maintenance needs, as well as ongoing “state of good repair” needs for rehabilitation and replacement of capital assets.

1.1 This QASP has been developed and designed by the Contracting Officer’s Representative (COR) within the Office of Planning and Environment, Office of Capital Project Development, for the overall conduct, implementation and deliverables associated with the Capital Investment Grants (CIG) Program Contract.

This surveillance plan is program specific and is designed to provide monitoring, inspecting and reporting of all contractor operations and deliverables as associated with the above-noted program.

The following work requirements shall represent the basis for the Performance Requirements. The documents referenced below provide detailed instructions to the financial contractors for preparing the work products required for each CLIN.

a. CLIN 0001- Financial Assessments

• Guidelines and Standards for Assessing Local Financial Commitment of Proposed Capital Investment Grants Projects. This document provides guidance to FTA’s financial contractors on how to develop a Financial Assessment of a proposed project seeking funding from the CIG program. Available on FTA’s website at:

https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/funding/grant-programs/capital-investments/115631/guidelines-and-standards-assessing-local-financial-commitment-september-2017.pdf.

• Financial Assessment Template. This document provides a standard format for financial contractors to follow when performing a financial assessment. FTA updates it annually and sends it to financial contractors in advance of submittals for the Annual Report on Funding Recommendations. Available at Appendix 1.

b. CLIN 0002 & 0003 - Detailed Financial Capacity Assessments & Refreshes

Financial Contractors' Guide for Conducting Financial Capacity Assessments. This document provides guidance on how to perform FCAs for the CIG Program. The guide assumes that the Financial Contractor and/or other users are professionals with financial analysis experience and knowledge of financing large transit capital infrastructure projects and the operation and maintenance of transit systems, as well as applicable Federal regulations, policy, and guidance. The purposes of the guide are to: explain FTA’s expectations and best practices for Financial Contractors when performing their work; and ensure consistency in the scope and quality of assessments performed. Available on FTA;s website at: https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/funding/grant-programs/capital-investments/115626/financial-contractor-guide-conducting-financial-capacity-assessments-cig-program-september- 2017.pdf.

In addition to the guidance documents described above, the following documents provide guidance and instructions on the overall CIG program. Financial contractors must have a thorough understanding of these documents, and contractors’ work products must demonstrate thorough understanding of these documents.

• 49 CFR Part 611, Final Rule for Major Capital Investment Projects (January 2013). This document is the regulation for the CIG program, and it describes the evaluation and rating process for New and Small Starts projects. Available on FTA’s website at https://www.gpo.gov/fdsys/pkg/FR-2013-01-09/pdf/2012-31540.pdf.

• Final Interim Policy Guidance, Federal Transit Administration Capital Investment Grants Program (June 2016). The policy guidance describes project eligibility, the steps in the process, and the evaluation and rating process for New Starts, Small Starts, and Core Capacity projects. Available on FTA’s website at:

https://www.transit.dot.gov/funding/grant-programs/capital-investments/final-capital-investment-grant-program-interim-policy.

• Guidance for Transit Financial Plans (June 2000) – This guidance outlines what a financial plan from a project sponsor should contain.

Available on FTA’s website at:

https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/funding/fundin g-finance-resources/options-financing-public-transportation/115376/guidance-transit-financial-plans.pdf.

• Reporting Instructions for New Starts, Small Starts and Core Capacity projects: FTA publishes Reporting Instructions each year to inform sponsors of proposed CIG projects of the information they must provide to FTA for project evaluation and rating. The Reporting Instructions contain the Local Financial Commitment Checklist, which must be submitted every time a project sponsor submits a financial plan to FTA. Available on FTA’s website at:

https://www.transit.dot.gov/funding/grant-programs/capital-investments/how-apply.

1.2 The method of inspection will be 100% inspection of all deliverables produced by the financial contractors, as well as scheduled and unscheduled observations as needed.

1.3 The objective of this Surveillance Plan is to evaluate the contractor’s performance in the conduct and implementation of the Capital Investment Grants Program financial reviews.

https://www.gpo.gov/fdsys/pkg/FR-2013-01-09/pdf/2012-31540.pdf https://www.transit.dot.gov/funding/grant-programs/capital-investments/final-capital-investment-grant-program-interim-policy https://www.transit.dot.gov/funding/grant-programs/capital-investments/final-capital-investment-grant-program-interim-policy

2.0 Surveillance Plan

2.1 This Surveillance Plan consists of 100% inspection of all deliverables produced by the financial contractors, as well as scheduled and unscheduled observations of work (as needed) as methods of inspection.

2.2. The preferred method of surveillance is 100% inspection of reports during the contract duration, or as otherwise deemed necessary by the COR. The COR and/or the lead reviewer will review the financial reports submitted to FTA for each Contract Line Item Number (CLIN) detailed above. FTA will review the financial reports to ensure they adhere to all requirements, instructions, and formats described in the guidance documents in Section 1.1. Typically, a draft is submitted to FTA and once an inspection has been performed FTA will provide comments to the contractor. Only once FTA is satisfied with the quality and content of the report, will FTA request a final version from the contractor. Specific timeframes for initial submission and any required revisions for the CLIN employed will be used as an additional measure of performance.

2.3 100% inspection is the method used to evaluate the financial contractor’s reports as required by the contract. Using this method of inspection, all parts of the contract are monitored for evaluation. Failure to follow the guidance, instructions, and formats described in the documents referenced in Section 1.1 would have an adverse impact on the overall implementation of the Capital Investment Grants Program.

2.4 Scheduled Observations will be inspections previously scheduled and coordinated with the contractor’s project manager and/or lead reviewer. Scheduled Observations shall include, but not be limited to the following:

a. Monthly Progress Reports (see Appendix 2 for format).

b. Special Assignments (TBD by COR)

c. Spot check inspections of the underlying financial plans submitted by CIG project sponsors. The financial plans submitted by CIG project sponsors form the basis for the contractor’s evaluation and analysis. Thus, the COR and/or the lead reviewer will spot check the information, data and analysis in the financial contractor’s reports by reviewing selected sections of the underlying financial plans. Failure to accurately describe the project sponsor’s financial plan, or unexplained discrepancies between the financial plan and the financial contractor’s report would have an adverse impact on the overall implementation of the Capital Investment Grants Program.

2.5 Unscheduled Observations shall be conducted by the COR at his/her discretion on an as needed basis under Tightened inspection level, detailed below. Observations shall include, but not be limited to, interviews with the financial contractors to determine whether the financial contractor can demonstrate knowledge of the guidance documents included in Section 1.1.

Discrepancies noted during the course of the surveillance, even if not of sufficient degree to render the service unsatisfactory for the purpose of payment deductions or non-payment, shall require corrective action by the contractor as noted by the COR or his/her designee in an agreed upon timeframe between the vendor and government.

Further, the COR shall notify the contractor’s project manager of the Deficiency as soon as is feasible and request immediate corrective and/or remedial action. If the noted deficiency is not corrected and/or adequately addressed as deemed appropriate by the COR, the COR shall notify the Contracting Officer, in writing, for immediate disposition.

2.6 Monthly surveillance documentation and reports prepared by the COR, if applicable, shall be maintained in the COR file. The COR file shall also contain a copy of the applicable contract, all contract amendments and modifications, surveillance reports, appropriate forms, etc., and other documentation as required by the Contracting Officer.

3.0 Inspection Levels

3.1 The Surveillance Plan is designed for 2 levels of inspection, Normal and Tightened.

These levels are only pertinent to the 100% inspection method of surveillance. Upon initialization of the contract, the Normal level of inspection will be used. If the contractor performs well over the first year of the contract and there are no discrepancies identified in the spot check inspections described in Section 2.4, the COR will keep the inspection level at Normal.

3.2 Tightened inspection will be instituted when the following occurs: (1) the 100 percent inspection of contractor deliverables demonstrates the contractor’s failure to follow the guidance, instructions, and formats described in the documents referenced in Section 1.1; or (2) the spot check inspections described in Section 2.4 demonstrate the contractor’s failure to accurately describe the project sponsor’s financial plan, or unexplained discrepancies between the financial plan and the financial contractor’s report. Changing from Normal to Tightened inspection levels shall have the Contracting Officer’s approval.

4.0 Surveillance Forms

4.1 This Quality Assurance Surveillance Plan shall not employ the use of individually designed sampling guides for the requirements noted on the Performance Requirements Summary (PRS). Monthly, visual inspections and analysis of the monthly requirements shall suffice as the noted surveillance method. This process shall entail, but not be limited to the following:

a. 100% inspection of all Financial Assessments,

b. 100% inspection of all Financial Capacity Assessments,

c. Scheduled review of Monthly Progress Reports, and

d. 100% inspection of all Special Assignments.

4.2. These quality assurances, and requisite following up and/or deficiency notices to the

Contracting Officer will further substantiate the government’s position should the government seek monetary deduction from the contractor in event of poor performance.

5.0 Government Roles and Responsibilities

5.1 The following personnel shall oversee and coordinate surveillance activities:

a. Contracting Officer (CO) - The CO shall ensure performance of all necessary actions for effective contracting, ensure compliance with the contract terms, and shall safeguard the interests of the United States in the contractual relationship.

The CO shall also assure that the contractor receives impartial, fair, and equitable treatment under this contract. The CO is ultimately responsible for the final determination of the adequacy of the contractor’s performance.

Assigned CO: Stephanie Cooke-Nwadibia Organization or Agency: Federal Transit Administration Telephone number: 202-366-7072 Email address: Stephanie.Cooke-Nwadibia@dot.gov

b. Contract Specialist (CS) - The CS acts as an acquisition consultant and serves as liaison between the U.S. DOT Federal Transit Administration, Office of Acquisition Management (FTA-TAD) and the Office of Planning and Environment (TPE).

Assigned CS: Deldridge Berry Telephone number: 202-366-3903 Email address: Deldridge.Berry.ctr@dot.gov

c. Contracting Officer’s Representative (COR) - The COR is responsible for technical administration of the contract and shall assure proper Government surveillance of the contractor’s performance. The COR shall keep a quality assurance file. The file should be retained at least for the life of the contract to ensure transition of information to another COR in case the current COR is no longer with the program or FTA etc. At the conclusion of the contract or when requested by the CO, the COR shall provide documentation to the CO. The COR is not empowered to make any contractual commitments or to authorize any contractual changes on the Government’s behalf. The contractor shall refer any changes they deem may affect contract price, terms, or conditions to the CO for action.

Assigned COR: TBD

Telephone number: TBD Email address: TBD

6.0 Contractor Representatives:

The following employees of the contractor serve as the contractor’s Program Manager for this contract.

a. Program Manager:

Telephone number:

Email address:

7.0 Contract Deficiency Report

7.1 If the noted observations are such that the number of defects and/or deficiencies exceed the Acceptable Quality Level (AQL), the month’s services will be considered unsatisfactory for the particular requirement under surveillance. If government action or lack of action caused the unsatisfactory performance, the defects will not be counted. A memorandum will be prepared by the COR providing an explanation of the government’s action and submitted with the monthly report to the Contracting Officer.

7.2 Unsatisfactory contract performance shall be immediately reported to the Contracting

Officer utilizing contract analysis of the requirements as the basis for unsatisfactory performance. The contractor will be provided reasonable opportunity and recourse to substantiate and/or deny the deficiency and note corrective/remedial actions that will serve to remedy the cited deficiency(ies) and how a reoccurrence will be avoided in the future. In addition, the contractor shall submit a plan of action to address and correct the deficiencies.

If unsatisfactory performance occurs in an area based on the COR’s sampling, observation or other critical review, the contractor will be notified accordingly and asked to remedy the noted deficiency within a particular timeframe. A record of this occurrence shall be maintained in the COR file and the Contracting Officer shall be immediately notified.