Attachment_5.2_Operations_Cost_Model_Narrative_dated_3-17-19.pdf

FEMA

HOUSING INSPECTION SERVICES (HIS)

FY2019

Solicitation #: 70FB7019R00000008

Operations Cost Model Narrative

Attachment 5.2

March 17th, 2019

PROCUREMENT SENSITIVE

NOTE: The following Attachments have been made available for this solicitation:

Attachment 1 is the Performance Work Statement (PWS) Attachment 2 is the Performance Requirements Summary (PRS) which contains the Selected Service

Performance Areas (SSPAs) Attachment 3 contains the Technical Exhibits

TABLE OF CONTENTS

A. Attachment 5.1 OPERATIONS COST MODEL

Operations Recurring Cost Reimbursement and Disaster Specific Costs ModelError! Bookmark not defined.

A. Attachment 5.1 Operations Cost Model

The Contractor’s operational structure, methodologies and business practices shall detail components justifying their response to any size/type disaster and/or multiple disaster declarations to meet contract requirements.

Operations are defined within Paragraph 7 (Definitions) of the Performance Work Statement (PWS) and correlate to distinctive Contract Line Item Numbers (CLIN) within the contract. The cost disclosed by the Contractor for applicable CLINS will be used as the “Recurring Cost Benchmark” once accepted by the government. Recurring cost are standard categories of cost required by the contractor for specified services and readiness activities during and across each established contract period of performance. For example, allowable and allocable cost incurred for rent or lease of facilities on an annual basis; will be considered recurring cost for that period of performance. The summary of the costs proposed for “Recurring Cost” based on the requirements of each line item during the specified period of performance, shall be annotated on the “blue” colored tabs in Attachment 5.1 (Operations Cost Model) only.

Operations required by the PWS will also consist of “Disaster Specific Cost”. Disaster Specific Cost are cost associated with an offerors response and contract performance activities for each disaster related task order proposal request issued. These “Disaster Specific Cost” shall be derived from the techniques and methodologies an offeror proposes to employ in responding to the 13 Disaster Scenarios depicted in Attachments 4(a), 4(b), 4(c), 4(d), and 4(e). For example, fixed priced inspections to be provided in response to a declared disaster are “Disaster Specific Cost” for that disaster. Allowable and allocable reimbursable cost for facilities, equipment, labor, and travel in response to a declared disaster are “Disaster Specific Cost”. The summary of the costs proposed for “Disaster Specific Cost” based on the 13 Scenario Responses, shall be annotated on the “yellow” colored tabs in Attachment 5.1 (Operations Cost Model) only. The summary cost of the “Disaster Specific Cost” will be evaluated by the government and included in the offerors overall cost proposed for contract award value consideration only. These “Disaster Specific Cost” will not serve as pre-priced disaster line items. The task order proposal request (TOPR) process instituted for each disaster response will be evaluated at the task order level to determine actual line item obligation amounts for that event.

Instructional Information

Excel worksheets are provided for offerors to disclose cost/price per the Performance Work Statement requirements and the contract line items annotated in Attachment 5.1 (Operations Cost Model)

Attachment 5.1 (Operations Cost Model) contains 13 tabs:

Worksheet instructions tab Summary tab containing all formulas to calculate the proposed cost/price per Section M of the request for proposal Blue colored tabs for line items categorized as “Recurring Cost

Benchmark” Yellow colored tabs for line items categorized as “Disaster Specify

Cost”

Operations Phase In/Phase Out (Cost Reimbursement) CLIN 0001 and 5001 (PWS Paragraph 4.2) Offerors shall propose all costs associated with its technical approach to providing continuity of services in accordance with FAR Clause 52.237-3 Continuity of Services. The Contractor shall be reimbursed for all reasonable phase-in, phase-out costs (i.e., costs incurred within the agreed period after contract expiration that result from phase-in, phase-out operations) and a fee (profit) not to exceed a pro rata portion of the fee (profit) under this contract. Offerors shall propose the quantity of hours, total direct labor hours, labor fringe, labor overhead, and rate/price per hour for the following cost items as applicable when requested by the Contracting Officer.

In developing the technical approach offers are required to propose to:

Furnish phase-in training Furnish phase-in, phase-out services for up to 90 days after the contract expires Negotiate in good faith a plan with a successor to determine the nature and extent of phase-in, phase-out services required Specify a training program and a date for transferring responsibilities for each division of work described in the plan Allow as many personnel as practicable to remain on the job to help the successor maintain the continuity and consistency of the services required by this contract Disclose necessary personnel records and allow the successor to conduct on-site interviews with these employees

CLIN 0001AA-Facilities Lease o The Contractor’s operation facility shall be described in the proposal and include the cost and square footage to be rented/purchased for the geographic area of the location.

Cost reimbursement items shall be identified on Attachment 5.1 (Operations Cost Model) spreadsheet in the applicable CLIN categories. Cost reasonableness will be conducted during proposal review.

CLIN 0001AB-Cost of Equipment o Equipment means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.

CLIN 0001AC-Cost of Supplies o Supplies means all property except land or interest in land. This line item does not include equipment, materials, real property, special test equipment or special tooling.

CLIN 0001AD-Warehouse Operations o Contractor shall provide a description of warehouse systems to support operations for the phase in/phase out period. Cost reasonableness will be conducted during proposal review.

CLIN 0001AE-Direct Labor Operations o If more than one job function is assigned to an individual, the percentage of time dedicated for each job function shall be disclosed to include shared cost. Staffing of human resources would include, however, but not be limited to: work assigners, supervisors, training staff, quality and production staff, mid and higher level managers and security managers as contained within the Contractor’s proposal. Cost reasonableness will be conducted during proposal review.

CLIN 0001AF-Project Management o The task and responsibility of planning, procurement and execution of these housing inspection services requirements within the defined PWS and PRS requirements.

Project management is the responsibility of a project manager. Project Management does not participate directly in the activities that produce the end result, but rather strives to maintain the progress, mutual interaction and tasks of various parties in such a way that reduces the risk of overall failure, maximizes benefits, and minimizes costs.

Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for this line item.

CLIN 0001AG-Quality Management o Quality Management is the task and responsibility of monitoring, measuring, analyzing, controlling, and improving processes; reducing product variation;

measuring/verifying product conformity; establishing mechanisms for field product performance feedback; and implementing an effective root-cause analysis and corrective and preventative action system. Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for this line item.

CLIN 0001AH-Training o Contractor shall implement mandatory and Contracting Officer Representative (COR) approved training programs and documents. Training content areas must include:

Individual Assistance Program, FEMA Repair Program, Customer Service, Security Awareness and Privacy Awareness. Training costs shall be identified on the cost model.

CLIN 0001AJ-Equipment Management o Task Order performance indicates the ability to transfer equipment, deploy staff and overcoming obstacles in order to accomplish the work required. The Contractor shall perform physical inventories of FEMA-owned property, reconcile discrepancies, and certify the results of Government Equipment in their custody by June 30 of each year.

Contractors must provide detailed annual reports listing model numbers, barcodes, serial numbers and operable status of such property by June 30 of each year. FEMA form 61-18 must accompany this report. Equipment (i.e. tablets, cameras and maintenance agreements) quantities and specifications shall meet or exceed FEMA standards to execute inspection contract requirements. Hardware used to conduct the inspections must meet specific technical specifications prior to use. To validate, Contractor records will be obtained and assessed during continual FEMA audits.

Equipment costs shall be identified on the cost model spreadsheet.

CLIN 0001AK-Information Technology o The Contractor is responsible for maintaining continuity of operations that will meet all FEMA’s requirements during normal operations and disaster events. Contractor shall disclose expenses for landlines, cell phones, smart phones, external data connections, T-1 lines, licensing costs, servers, routers, firewalls, data storage, maintenance, (etc. as approved by FEMA). The Contractor shall have contingencies in place to be able to perform inspections of residences via electronic means at the damaged residence. The Contractor shall use Government Furnished Equipment and/or Contractor Acquired Property (includes CAP software) in addition to Government Furnished data plans and software. The Contractor shall provide mobile communication systems such as Broadband Access Cards or other mobile communication devices to include optional methods of communicating data from the field to FEMA if broadband systems are not available. IT and Communications costs shall be identified on the cost model spreadsheet. Cost reasonableness will be conducted during proposal review and at the beginning of each option period.

CLIN 0001AL- Materials o Materials are considered property that may be consumed or expended during the performance of this contract. Material costs shall include cost for raw materials, parts, and components whether purchased or manufactured by the contractor

CLIN 0001AM- Travel Expenses o FEMA approved travel in accordance with Federal Travel Regulations guidelines

Other direct cost travel does not include inspector travel time or idle time once checked in at a disaster location or moving to and from while performing inspections within the disaster designated area. Travel incurred while in the disaster area shall be covered in the fixed price inspection cost along with any inspector idle time.

*If an offerors approach will require costs categories or cost centers not itemized in the list above, offerors shall submit those costs not listed with specific details supporting the salient characteristics of the work to be performed and the performance requirements they support.

*No cost incurred for the same purpose should be proposed as direct cost and as indirect cost (i.e., overhead, fringe benefits, and G&A).

Inspections (CLIN 0002)(PWS Paragraph 4.1.1, 4.4.2, 4.4.3, 4.4.4, 4.4.5, 4.4.6,4.4.7, 4.4.8, 4.4.9, 4.4.10, and 4.4.11)

Inspections costs will be Fixed Price. The Contractor is to disclose the composition and cost breakdown of the fixed costs to provide inspections in accordance with the PWS requirements. The contractor shall pre-authorize and pay all inspector travel expenses incurred to and from the disaster location as other direct cost. This does not include contractor travel time or idle time once checked in at a disaster location or moving to and from while performing inspections within the disaster designated area. Travel incurred while in the disaster area shall be covered in the fixed price inspection cost along with any inspector idle time. Offerors shall annotate the inspector wage rate per inspection, fringe benefits applied, overhead, profit and general and administrative cost for this item that total the proposed unit price per inspection.

Applicable Inspector wage per inspection subject to Service Contract Labor Standards Wage Determination No.: 200-0127 Revision No.: 31, dated 11/19/2018

Applicable Fringe Benefits Applicable Overhead Rate Applicable Profit Percentage Applicable General and Administrative Cost

Operations Cost Reimbursement Recurring and Disaster Specific (CLIN 0003)(PWS Paragraph 4.3.1, 4.3.2, 4.3.3, 4.3.4, 4.3.5, 4.3.6, 4.3.7, 4.3.8)

CLIN 0003 shall be proposed for Recurring and Disaster Specific Cost. Recurring cost are standard categories of cost required by the contractor for specified services and readiness activities during and across each established contract period of performance. For example, allowable and allocable cost incurred for rent or lease of facilities on an annual basis; will be considered recurring cost for that period of performance. The summary of the costs proposed for “Recurring Cost” based on the requirements of this line item during the specified period of performance, shall be annotated on the “blue” colored tabs in Attachment 5.1 (Operations Cost Model) only. Recurring cost proposed under this line item will be considered “Recurring Cost Benchmark” cost for total award value consideration.

Disaster Specific Cost are cost associated with an offerors response and contract performance activities for each disaster related task order proposal request issued. These “Disaster Specific Cost” shall be derived from the techniques and methodologies an offeror proposes to employ in responding to the 13 Disaster Scenarios depicted in Attachments 4(a), 4(b), 4(c), 4(d), and 4(e). For example, fixed priced inspections to be provided in response to a declared disaster are “Disaster Specific Cost” for that disaster. Allowable and allocable reimbursable cost for facilities, equipment, labor, and travel in response to a declared disaster are “Disaster Specific Cost”. The summary of the costs proposed for “Disaster Specific Cost” based on the 13 Scenario Responses, shall be annotated on the “yellow” colored tabs in Attachment 5.1 (Operations Cost Model) only. The summary cost of the “Disaster Specific Cost” will be evaluated by the government and included in the offerors overall cost proposed for contract award value consideration only. These “Disaster Specific Cost” will not serve as pre-priced disaster line items. The task order proposal request (TOPR) process instituted for each disaster response will be evaluated at the task order level to determine actual line item obligation amounts for that event. Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for the following cost items as applicable.

CLIN 0003AA-Facilities Lease o The Contractor’s operation facility shall be described in the proposal and include the cost and square footage to be rented/purchased for the geographic area of the location.

Recurring cost reimbursement and disaster specific facility costs shall be identified on the cost model spreadsheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option period.

CLIN 0003AB-Cost of Equipment o Equipment means a tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling.

CLIN 0003AC-Cost of Supplies o Supplies means all property except land or interest in land. This line item does not include equipment, materials, real property, special test equipment or special tooling

CLIN 0003AD-Warehouse Operations o Contractor shall provide a description of warehouse systems to support operations and inspection services. Recurring cost reimbursement and disaster specific costs for warehouse facility costs shall be identified on the cost model spreadsheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option period.

CLIN 0003AE-Direct Labor Operations o If more than one job function is assigned to an individual, the percentage of time dedicated for each job function shall be disclosed to include shared cost. Staffing of human resources would include, however, but not be limited to: work assigners, supervisors, training staff, quality and production staff, mid and higher level managers and security managers as contained within the Contractor’s proposal. Recurring cost for labor and disaster specific labor costs shall be identified on the cost model spreadsheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option period. Validation will occur when proposals are accepted and verified during FEMA audits.

CLIN 0003AF-Project Management o The task and responsibility of planning, procurement and execution of these housing inspection services requirements within the defined PWS and PRS requirements.

Project management is the responsibility of a project manager. Project Management does not participate directly in the activities that produce the end result, but rather strives to maintain the progress, mutual interaction and tasks of various parties in such a way that reduces the risk of overall failure, maximizes benefits, and minimizes costs.

Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for this line item.

CLIN 0003AG-Quality Management o Quality Management is the task and responsibility of monitoring, measuring, analyzing, controlling, and improving processes; reducing product variation;

measuring/verifying product conformity; establishing mechanisms for field product performance feedback; and implementing an effective root-cause analysis and corrective and preventative action system. Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for this line item.

CLIN 0003AH-Training o Contractor shall implement mandatory and COR approved training programs and documents. Training content areas must include: Individual Assistance Program, FEMA Repair Program, Customer Service, Security Awareness and Privacy

Awareness. Recurring cost labor and disaster specific costs for Training shall be identified on the cost model spreadsheet in one or both CLIN categories. .

o Cost reasonableness will be conducted during proposal review and at the beginning of each option period.

CLIN 0003AJ-Equipment Management o Task Order performance indicates the ability to transfer equipment, deploy staff and overcoming obstacles in order to accomplish the work required. The Contractor shall perform physical inventories of FEMA-owned property, reconcile discrepancies, and certify the results of Government Equipment in their custody by June 30 of each year.

Contractors must provide detailed annual reports listing model numbers, barcodes, serial numbers and operable status of such property by June 30 of each year. FEMA form 61-18 must accompany this report. Equipment (i.e. tablets, cameras and maintenance agreements) quantities and specifications shall meet or exceed FEMA standards to execute inspection contract requirements. Hardware used to conduct the inspections must meet specific technical specifications prior to use. To validate, Contractor records will be obtained and assessed during continual FEMA audits.

Recurring equipment cost and disaster specific equipment costs shall be identified on the cost model spreadsheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option period.

CLIN 0003AK-Information Technology o The Contractor is responsible for maintaining continuity of operations that will meet all FEMA’s requirements during normal operations and disaster events. Contractor shall disclose expenses for landlines, cell phones, smart phones, external data connections, T-1 lines, licensing costs, servers, routers, firewalls, data storage, maintenance, (etc. as approved by FEMA). The Contractor shall have contingencies in place to be able to perform inspections of residences via electronic means at the damaged residence. The Contractor shall use Government Furnished Equipment and/or Contractor Acquired Property (includes CAP software) in addition to Government Furnished data plans and software. The Contractor shall provide mobile communication systems such as Broadband Access Cards or other mobile communication devices to include optional methods of communicating data from the field to FEMA if broadband systems are not available. Recurring cost and disaster specific costs for IT and Communications shall be identified on the cost model spreadsheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option period.

CLIN 0003AL- Materials o Materials are considered property that may be consumed or expended during the performance of this contract. Material costs shall include cost for raw materials, parts, and components whether purchased or manufactured by the contractor.

CLIN 0003AM- Travel Expenses o FEMA approved travel in accordance with Federal Travel Regulations guidelines

Other direct cost travel does not include inspector travel time or idle time once checked in at a disaster location or moving to and from while performing inspections within the disaster designated area. Travel incurred while in the disaster area shall be covered in the fixed price inspection cost along with any inspector idle time.

CLIN 0003AN- Disaster Specific Contractor Acquired Property o Property means all tangible property, both real and personal acquired by the contractor in performance of disaster related response activities.

CLIN 0003AP- Inspector/Contractor Personnel Adjudication (Recurring and Disaster) (PWS Paragraph 1.3.5, 2.3.2, 2.3.2.1, 4.3.5, 4.3.6) o CLIN 0003AQ shall be proposed for Recurring and Disaster Specific Cost. This line item is established to enable cost accounting and invoicing of allocable and allowable cost elements for payment in support of recurring and just in time hiring adjudication events for all contractor personnel. Recurring cost for this CLIN shall be specific to the work and processes required to adjudicate contractor personnel and inspectors for or during non-disaster related tasks. Disaster Specific Cost for this CLIN shall be specific to the work and processes required to adjudicate contractor personnel and inspectors for disaster specific or surge related tasks. Offerors shall price line items applicable to all required tasks and labor categories proposed to meet the PWS and PRS performance requirements. Offerors shall propose the quantity of total direct labor hours, labor fringe, labor overhead, General and Administrative, and rate/price per hour for the cost items as applicable.

*If an offerors approach will require costs categories or cost centers not itemized in the list above, offerors shall submit those costs not listed with specific details supporting the salient characteristics of the work to be performed and the performance requirements they support.

*No cost incurred for the same purpose should be proposed as direct cost and as indirect cost (i.e., overhead, fringe benefits, and G&A).

Partnering Cost Reimbursement (CLIN 0004)(PWS Paragraph 4.5.3)

This element represents recurring costs only, not disaster related costs. There will be two levels of partnering, (1) Management, and (2) Operational. The Management level will focus on those issues which are of concern to senior management within both organizations. The Operational level will focus on those issues relevant to the day to day operations of performing inspection services.

Procedures shall be adopted by the Government and contractor at the beginning of performance to develop cooperative teams that identify common goals and objectives to achieve contract requirements. Costs are reimbursable and shared with the Government. Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for the following cost items as applicable.

CLIN 0004AA-Contractor Proposed Labor Category CLIN 0004AB-Contractor Proposed Labor Category

Technical Assistance (Labor Hour) Disaster Specific Only (CLIN 0005)(PWS Paragraph 4.8)

When services are needed, the Government will forward to the Contractor the Performance Work Statement and a Request for Proposal (RFP). Refer to Attachment #(TBD), Department Of Labor Wage Determinations distributed with each technical assistance request for labor rate tasking categories applicable to the technical assistance task cost line items. Offerors shall propose the total direct labor hours, labor fringe, labor overhead, and rate/price per hour for the following cost items as applicable. The hourly rate shall include wages, overhead, general and administrative expense, and profit.

CLIN 0005AA-Generalist Labor Category CLIN 0005AB-Generalist Labor Category

*If an offerors approach will require other direct costs categories not itemized in the list above, offerors shall submit those costs not listed with specific details supporting the salient characteristics of the item to be proposed and the performance requirements they support.

*No cost incurred for the same purpose should be proposed as direct cost and as indirect cost (i.e., overhead, fringe benefits, and G&A).

Defense Base Act Cost Reimbursement Disaster Specific (CLIN 0006)(PWS Paragraph 4.3.9)

This line item is established to enable the requirements of contract clause 52.228-3 Worker’s Compensation Insurance (Defense Base Act) and the Department of Labor (DOL) benefits requirements. This line item will not be evaluated for award purposes during the base contract award determination. Offerors shall not propose cost for this line item at this time. However; as applicable, cost proposal evaluation of this line item will be required at the task order proposal level. Per these clause requirements, FEMA and the contractor will use this line item to establish reimbursable costs to provide workers’ compensation insurance enabling payment of disability compensation and medical benefits to covered employees and death benefits to their eligible survivors; for employees working outside the United States. These reimbursable costs for Defense Base Act insurance are based on total payroll (labor) only and not contract price points. The reimbursable costs will be established at the line item level on each task order applicable to these conditions and in accordance with Paragraph 4.3.9 of the Performance Work Statement. As an example, applicable workers compensation benefits for employees working on the Common Wealth of Puerto Rico for 180 days under a specific task order, will be established at issuance of the task order; to meet the requirements of the clause.

*“No cost incurred for the same purpose shall be proposed as direct cost and as indirect cost (i.e., overhead, fringe benefits, and G&A).”