HAPNSS_DRAFT_RFP_86546A18R00001_-__12-12-17.docx

SECTION M INSTRUCTIONS TO OFFERORS NATIONAL PBCA SERVICES

Multi-Family Housing 86546A18R00001

SOURCES SOUGHT MARKET RESEARCH DRAFT SOLICITATION

Housing Assistance Payments (HAP) Contract National Support Services (HAPNSS) (Formerly known as Performance-Based Contract Administrator (PBCA) Program)

SOLICITATION NO: 86546A18R00001

The Draft Solicitation is revised to change the due date for comments and questions. Responses are due on Tuesday, January 02, 2018 at 3:00 pm CST to HAPNSS@hud.gov.

TABLE OF CONTENTS HAP CONTRACT REGIONAL SUPPORT SERVICES

Multi-Family Housing 86546A18R00002

TABLE OF CONTENTS HAP CONTRACT NATIONAL SUPPORT SERVICES

Multi-Family Housing 86546A18R00001

Table of Contents Page

PART I - THE SCHEDULE

SECTION A - SOLICITATION/CONTRACT FORM

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS 6

SECTION C – PERFORMANCE WORK STATEMENT 9

SECTION D - PACKAGING AND MARKING 30

SECTION E - INSPECTION AND ACCEPTANCE 31

SECTION F - DELIVERIES OR PERFORMANCE 32

SECTION G - CONTRACT ADMINISTRATION DATA 33

SECTION H - SPECIAL CONTRACT REQUIREMENTS 36

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES 39

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS…………………………………………………….….…55

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K – REPRESENTATIONS, CERTIFICATIONS…………………………….…….…..56

SECTION L – INSTRUCTIONS, CONDITIONS & NOTICES TO OFFERORS/RESPONDENTS……………………………………………………………………

SECTION M – EVALUATION FACTORS FOR AWARD………………………………………..70

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICES

B.1 This is a single-award Indefinite Delivery/Indefinite Quantity (IDIQ) Fixed-Price (Fixed Unit Rate) contract with a base and four (4) option periods. Each period has a twelve (12) month period of performance. The period of performance for this entire contract to include option years is TBD 2018 – TBD 2023. Task orders to be placed under this contract will be fixed unit rate.

B.2 CONTRACT DESCRIPTION

The Contractor shall provide Housing Assistance Payments (HAP) Contract National Support Services as outlined in Section C. The services are for Region (inserted upon award, Sub-Region (inserted upon award).Orders shall be placed in accordance with the following clauses 52.216-18, Ordering; 52.216-19, Order Limitations; and HUDAR 2452.216-78, Task Ordering Procedures.

B.3 CONTRACT UNIT AND TOTAL PRICES

BASE YEAR

2018- 2019

Qty (Estimated) Unit Price Total Estimated Price

IDIQ

HAP Contract Rent Adjustment

(PWS 5.3 – 5.3.4)

(PWS 5.4 – 5.5.2)

OPTION PERIOD 1

2019 - 2020

Qty (Estimated) Unit Price Total Estimated Price

IDIQ

HAP Contract Rent Adjustment

(PWS 5.3 – 5.3.4)

(PWS 5.4 – 5.5.2)

OPTION YEAR 2

2020 - 2021

Qty (Estimated) Unit Price Total Estimated Price

IDIQ

HAP Contract Rent Adjustment

(PWS 5.3 – 5.3.4)

(PWS 5.4 – 5.5.2)

OPTION YEAR THREE

2021 – 2022

Qty (Estimated) Unit Price Total Estimated Price

IDIQ

HAP Contract Rent Adjustment

(PWS 5.3 – 5.3.4)

(PWS 5.4 – 5.5.2)

OPTION YEAR FOUR

2022 - 2023

Qty (Estimated) Unit Price Total Estimated Price

IDIQ

HAP Contract Rent Adjustment

(PWS 5.3 – 5.3.4)

(PWS 5.4 – 5.5.2)

TRANSITION – OUT OPTION

(PWS 6.2)

SECTION B – SUPPLIES OR SERVICES HAP CONTRACT NATIONAL SUPPORT SERVICES

Multi-Family Housing 86546A18R00001

SECTION C – PERFORMANCE WORK STATEMENT

Performance Work Statement (PWS) Housing Assistance Payments (HAP) Contract National Support Services

SECTION C – PERFORMANCE WORK STATEMENT HAP CONTRACT NATIONAL SUPPORT SERVICES

Multi-Family Housing 86546A18R00001

Vision Statement

Renew HAP contracts and adjust contract rents as appropriate in a consistent and timely manner. Improve the oversight and evaluation of the portfolio of properties under HAP contracts.

1.0 General Information

1.1 Introduction

The Department of Housing and Urban Development (HUD) / Office of Multifamily Housing Programs (MFH) has a requirement for HAP Contract support services. Services include renewing HAP contracts, adjusting HAP contract rents, and performing risk assessments on assigned portfolios of properties.

1.2 Background

Under the Section 8 Project-Based Rental Assistance (PBRA) program, HUD/OMH provides monthly rental assistance payments on behalf of 1.2 million households throughout the United States.

HUD currently engages Performance-Based Contract Administrators (PBCAs) through 53 Annual Contribution Contracts (ACCs) to perform the day-to-day monitoring and oversight of approximately 90% of Housing Assistance Payments (HAP) contracts, which govern the legal relationship between the PBCA, which serves as contract administrator under the existing ACCs, and owners of Section 8 projects (owners). Upon expiration or termination of the existing 53 ACCs, HUD will become the contract administrator for all HAP contracts in MFHs portfolio. Thus, HUD is now seeking to obtain HAP Contract support services using competitive contracts processes to assist HUD in the administration of approximately 17,000 HAP contracts.

From the inception of the PBCA program in 1999, HUD has relied on PBCAs, acting under ACCs with HUD, to provide the day-to-day monitoring and oversight of roughly 90% of these contracts. Under this model, the legal rights and responsibilities of PBCAs are established in an ACC. Between 1999 and 2011, HUD executed 53 separate ACCs with public housing agencies, as defined in section 3(b)(6)(A) of the 1937 Act (including State Finance Agencies), each with state-wide jurisdiction over the State or other jurisdiction (i.e., the District of Columbia, Puerto Rico, and the United States Virgin Islands) for which it serves as HUD’s PBCA.

HAP Contract support services require interaction with the following secured HUD systems:

· TRACS - Tenant Rental Assistance Certification System

· iREMS - Integrated Real Estate Management System

· EIV - Enterprise Income Verification System

· LaserFiche Cloud storage system for MFH scanned records.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

· Section 8 Renewal Policy Guide http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/mfhsec8

· HUD Handbook 4350.1 Multifamily Asset Management and Project Servicing http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4350.1

· 24 CFR Housing and Urban Development https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title24/24tab_02.tpl

· Utility Analysis Methodology Notice http://portal.hud.gov/hudportal/documents/huddoc?id=15-04hsgn.pdf

· HUD Handbook 4381.5 The Management Agent Handbook http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4381.5

· FMRs https://www.huduser.gov/portal/datasets/fmr.html

· Housing Notice 99-36 Annual Adjustment Factor Rent Increase http://portal.hud.gov/hudportal/documents/huddoc?id=99-36hsgn.doc>

· The United States Housing Act of 1937 http://archives.financialservices.house.gov/banking/usha1937.pdf

· Multifamily Assisted Housing Reform and Affordability Act (MAHRA) https://www.hud.gov/offices/hsg/omhar/readingrm/mahra.pdf

· Memorandum of Understanding Regarding Housing Assistance to Low-Income Households Between HUD and USDA https://www.rd.usda.gov/files/ex2000LLL.pdf

· Section 8 Project-Based Rent Adjustment Using the Annual Adjustment Factor http://portal.hud.gov/hudportal/documents/huddoc?id=02-10h.doc

1.4 Description of Services

HUD MFH seeks to obtain the following HAP Contract Support Services:

· Provide HAP Contract portfolio analysis and risk reporting,

· Renew HAP Contracts, processing Owner opt-outs, processing terminations, expirations, combinations, bifurcations, and assumptions,

· Review and adjust contract rents and utility analysis.

The Contractor shall provide HAP Contract support services for the Covered Units in the Service Area(s) assigned. HUD will assign to the Contractor existing HAP contracts for Covered Units in the Service Area(s) assigned. The Contractor agrees to accept all such assignments by HUD for the purpose of providing support services for such HAP contracts in accordance with the PWS.

Upon assignment by HUD, the Contractor shall immediately commence support services for the HAP contract in accordance with the terms and conditions stated within the PWS. HUD retains the right to withdraw such assignments at HUD’s sole discretion.

Detailed descriptions of specific tasks are provided in Section 5 Specific Tasks and Deliverables.

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are in the nature of personal services, or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for one base period of 12 months and four 12-month option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at the Contractor's facility.

1.8 Hours of Operation

The Contractor shall ensure that personnel are available to interface with owners and HUD offices covering six time zones from the East Coast to Hawaii. This may require a limited number of contractor personnel to work outside of the Contractor’s core hours in the time zone of the Contractor’s location.

The Contractor shall at all times maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.9 Special Qualifications

Contractor appraisers reviewing Rent Comparability Studies (RCS) shall be certified by the state in which the subject property is located.

1.10 Post Award/Kickoff Conference

See HUDAR clause 2452.237-79 POST AWARD CONFERENCE in Section I.

1.11 Status Meetings

The Contracting Officer, Contracting Officer’s Government Technical Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer and COR will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor shall apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of the Contractor’s location. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

2.0 Definitions and Acronyms

2.1 Definitions

ACCEPTABLE QUALITY LEVEL (AQL). The minimum required performance level for each Performance-Based Task.

BUSINESS / WORK DAYS. Every official work day of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

CLOSE OF BUSINESS. Contractor’s regularly scheduled closing time.

CONTINGENCY PLAN. Contractor's plan to respond to any threat or emergency that may interrupt essential Contractor functions and that the Contractor has tested and determined it to be sound and effective.

CONTINGENCY PLAN REVIEW and VALIDATION. An annual review and validation by the Contractor that its Contingency Plan documentation is accurate, complete and current and that all employees and applicable sub-contractors have been trained and all backup plans and systems have been tested.

CONTRACT ADMINISTRATION OVERSIGHT MONITOR (CAOM). Employees within the MFH / HUD, who conduct administrative, monitoring, and oversight functions related to the Contractor’s compliance with and performance of the contract.

CONTRACTING OFFICER (CO). A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

CONTRACTING OFFICERS REPRESENTATIVE (COR). An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities regarding technical issues. This individual has authority to provide technical direction to the Contractor if direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

CONTRACTOR. The supplier or vendor responsible for providing HAP contract support services stated within this PWS.

COVERED UNITS. Dwelling units assisted under a Section 8 HAP Contract in a multifamily housing project located in the Service Area.

DAYS. Unless otherwise stipulated refers to calendar days.

DISASTER PLAN. Contractor's plan to respond to any threat or emergency that may interrupt essential Contractor functions and that the Contractor has tested and determined it to be sound and effective.

DISASTER PLAN CERTIFICATION. An annual certification by the Contractor that its Disaster Plan documentation is up-to-date, all employees and applicable sub-contractors have been trained and all backup plans and systems have been tested.

FAIR MARKET RENTS (FMR). The rents established by HUD, as required under section 8(c) (1) of the United States Housing Act of 1937, for units of varying sizes (by number of bedrooms) that must be paid in the market area to rent privately owned, existing, decent, safe, and sanitary rental housing of modest (non-luxury) nature with suitable amenities.

FAIR MARKET RENT AREA. The area for which HUD has established an FMR.

FISCAL YEAR END (FYE). 11:59 p.m. local time - 30 September.

GOVERNMENT FURNISHED PROPERTY(GFP). Government-furnished property means property in the possession of, or directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes Contractor-acquired property if the Contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP Contract). A Project based HAP contract authorized under Section 8 of the United States Housing Act of 1937 (but not including any such contract authorized under section 8(o)(13) or under former section 8(e)(2) of such Act) including any renewal of such contract, as authorized under the Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA).

INDEPENDENT AUDITOR (IA). An auditor who meets the auditor qualifications of Government Auditing Standards, including the qualifications relating to independence and continuing professional education. Additionally, the audit organization is to meet the quality control standards of Government Auditing Standards.

MULTIFAMILY ASSISTED HOUSING REFORM AND AFFORDABILITY ACT OF1997, AS AMENDED (MAHRA). The statute authorizing the renewal of HAP Contracts for Project-based assistance under Section 8 of the United States Housing Act of 1937 upon termination or expiration of such contracts (42 U.S.C. section 1437f note).

OWNER. Any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, having the legal right to lease or sublease dwelling units.

PERFORMANCE-BASED CONTRACT ADMINISTRATOR (PBCA). The entity that previously performed contract administration of HAP contracts under a Performance-Based ACC. The contractors will perform a similar function as the PBCAs under the scope of this PWS.

PERFORMANCE REQUIREMENTS SUMMARY(PRS). A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met.

PERFORMANCE STANDARD. The Contractor's performance level required by the Government.

PERFORMANCE WORK STATEMENT (PWS) - A statement of work for performance based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

PROJECT. A property consisting of more than 4 dwelling units that is covered in whole or in part by a HAP contract and is under a single property identification number in HUD systems.

QUALITY ASSURANCE (QA). Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

QUALITY ASSURANCE SURVEILLANCE PLAN(QASP). A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

QUALITY CONTROL (QC). All necessary measures taken by the Contractor to assure that the quality of an end- product of service shall meet contract requirements.

RENT COMPARABILITY STUDY. A rent study conducted in accordance with section 524(a)(5) of MAHRA and the applicable provisions of the Section 8 Renewal Policy Guidebook (currently located in Chapter Nine).

SECTION 8. Section 8 of the United States Housing Act of 1937, as amended (42 U.S.C. section 1437f).

SERVICE AREA. The region in which the Contractor provides services under the HAP Contract support services contract.

SERVICE CONTRACT. A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

STATE. One of the fifty (50) United States, the District of Columbia, the United States Virgin Islands, or the Commonwealth of Puerto Rico.

SUB-CONTRACTOR. Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into in connection with such prime contract, and any person who offers to furnish or furnishes general supplies to the prime Contractor or a higher tier sub-contractor.

UNITED STATES HOUSING ACT OF 1937, AS AMENDED (1937 Act). The statute in which the Section 8 program and related requirements are codified (42 U.S.C. section 1437).

WORK WEEK. Monday through Friday, unless specified otherwise.

2.2 Acronyms

AAF - Annual Adjustment Factor ACC - Annual Contributions Contract AQL - Acceptable Quality Level CO - Contracting Officer CAOM - Contract Administration Oversight Monitor COB - Close of Business COR - Contracting Officer Representative FAR - Federal Acquisition Regulation FISMA Federal Information Security Act FMR - Fair Market Rents FOCC – Field Office CAOM Counterpart FYE - Fiscal Year End HAP - Housing Assistance Payment HUD - Department of Housing and Urban Development iREMS - Integrated Real Estate Management System MAHRA - Multifamily Assisted Housing Reform and Affordability Act of 1997 O/A - Property owner / management agent OCAF - Operation Cost Adjustment Factor OCI - Organizational Conflict of Interest OSHA - Occupational Safety and Health Act PBCA - Performance Based Contract Administrator PBRA - Section 8 Project-Based Rental Assistance PD&R Policy Development and Research PHA - Public Housing Agency PWS - Performance Work Statement QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan RCS - Rent Comparability Study RHIIP - Rental Housing Integrity Improvement Project TRACS - Tenant Rental Assistance Certification System

3.0 Government Services

The Government will provide the Contractor user access privileges to the various HUD systems (iREMS, TRACS, EIV) required to perform the services stated within this PWS. User access privileges will be granted upon successful completion of background/security investigations administered by the Government.

3.1 Facilities

No Government facilities will be provided.

3.2 Equipment

No Government equipment will be provided.

3.3 Materials

The Government will provide the Contractor with all HAP contracts under the Contractor’s jurisdiction, records of previous rent increases under that contract, and other supporting documentation during the Transition-In period or within 10 days of HAP Contract assignment if outside of the Transition-In period.

Copies of required materials may be provided to the Contractor in hard copy or soft copy. All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

3.4 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level.

4.0 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish the facilities necessary to meet the requirements stated within this PWS.

4.2 Equipment

The Contractor shall furnish any equipment necessary to meet the requirements stated within this PWS.

4.3 Material

N/A

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR at the end of the contract term or at the request of the Government.

4.5 Contractor Personnel

See Sections G.3, G.4, G.5.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees.

Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or at a minimum, "Contractor" after name.

5.0 Specific Tasks

5.1 Portfolio Analysis, Risk Assessment and Reporting

For requirements under this task, the Contractor shall provide HUD with evaluation and analyses of HAP Contract data across the entire MFH portfolio consisting of over 17,000 properties. The Contractor shall collect and aggregate data from HUD systems to provide visibility and insight into the health of the housing portfolio. This data may include, but is not limited to, physical inspection scores, risk rating, etc.

The Contractor shall work with HUD to identify additional data needs, and analyze data provided by the COR to aid in program execution. The Contractor shall also identify external sources of data that are relevant to the Section 8 program, query those data sources, and merge with HUD provided data. The Contractor shall collect and present data in a format allowing HUD to understand and manipulate data. The Contractor shall also present forecasts and conclusions derived from the data.

5.1.1 Special Portfolio Analysis

The Contractor shall on a quarterly basis undertake a Special Portfolio Analysis (SPA) on a particular topic as assigned by the COR. The SPA shall include an in-depth analysis on the assigned topic and include conclusions and forecasts regarding the assigned topic. The Contractor shall analyze the extent to which changes or trends may indicate increasing or decreasing risks to HUD, contractor, projects, owners, and/or tenants. The Contractor shall provide the SPA to the COR via email no later than 60 days after topic assignment.

Deliverables A001 Special Portfolio Analysis (SPA)

5.1.2 Portfolio Risk Assessment Report

Quarterly, the Contractor shall submit a Portfolio Risk Assessment Report (PRAR) via email to the COR no later than 15 days after the end of each quarter.

The PRAR shall provide data on and discuss the following:

· HAP Contract Renewals and Terminations,

· Notification of owner intent to opt-out of HAP Contract,

· HAP Contracts due to expire within the next 90 days,

· HAP Contracts within 30 days of expiration or expired-renewal requests not received,

· HAP Contracts Expired Renewal Requests sent to HUD,

· HAP Contracts Rent Increases Due within 30 days of contract anniversary,

· HAP Contract Rent Increases Past Due of contract anniversary.

· HAP Contract Rent Increases Past Due as a Result of a Pending or Missing Utility Analysis.

Deliverables A002 Portfolio Risk Assessment Report (PRAR)

5.2 HAP Contract Administration Support

The Contractor shall begin taking the necessary steps to prepare for HAP contract renewal as specified in the Section 8 Renewal Policy Guide no later than 150 days prior to the expiration of each assigned HAP Contract. The Contractor shall contact an O/A within 120 days of HAP Contract expiration to inform the O/A of the necessary steps that must be performed in order to renew the HAP Contract. The Contractor shall follow-up with the O/A within 105 days of HAP Contract expiration if the O/A does not begin the process of renewing the HAP contract or express their intent to opt-out. In cases where owners elect to opt-out, combine or bifurcate contracts, or transfer the property to another owner, the Contractor shall facilitate the completion of these transactions in accordance with HUD regulations and requirements.

5.2.1 HAP Contract Opt-Out Support

The Contractor shall verify that an owner who intends to opt-out of a HAP contract provided tenants with a notification letter at least one year prior to the expiration of the HAP contract and that the letter met statutory and administrative requirements. The Contractor shall retain a copy of this letter.

In the event the owner submits a 120-day notification of intent to opt-out, the Contractor shall:

· Inform the COR by close of next business day after notice by the owner that the owner has expressed their intent to opt-out of the HAP Contract,

· Reiterate options to owner for renewing HAP contract and potential advantages of renewal,

· Verify that the owner has complied with all notification requirements for the HAP Contract and current law and HUD guidance on opt-outs.

5.2.2 HAP Contract Long-Term Renewal Processing

The Contractor shall process long-term renewal requests from O/As. The Contractor shall process and renew these requests as described in the Section 8 Renewal Policy Guide. The Contractor shall verify that owners with expiring HAP Contracts provide notifications to tenants and HUD in accordance with HUD guidelines. The Contractor shall inform O/As of the RCS expiration date and the need to obtain a new RCS for HAP contract renewal one year prior to the RCS reaching its expiration date, as provided in HUD systems.

The Contractor shall, upon request of the owner to renew the HAP contract, verify the owner’s eligibility for the selected HAP contract renewal option. The Contractor shall evaluate owner’s rent adjustment requests and supporting RCS, if required, to ensure the RCS utilizes industry standard methods using state appraisers certified in the relevant jurisdiction and was performed within the appropriate timeframe per HUD requirements.

The Contractor shall evaluate the RCS, if necessary, prepare the HAP contract as specified in the Section 8 Renewal Policy Guide and mail it to the owner for execution within 60 days of the owner’s renewal request. A copy shall be e-mailed to the COR on the day of execution. The 60 days allowed for completing this requirement does not include those days in which the Contractor is unable to proceed while waiting for information or documentation from HUD. The counting period shall resume on the day the information is received from HUD, regardless of time of receipt.

The Contractor shall inform the COR via email within three business days of receipt of the owner executed HAP contract. Within two business days of receipt of confirmation from the COR of funding for renewal, the Contractor shall mail a hardcopy of the owner executed HAP contract to HUD to be fully executed.

Within five (5) business days after receipt from HUD of a fully executed HAP contract, mail a copy of the HAP contract to the owner, upload the document to LaserFiche and retain a copy for the Contractor’s files, unless otherwise specified by the COR.

5.2.3 HAP Contract Short-Term Renewal Processing

In certain circumstances a short-term HAP contract renewal may be required in order to avoid a lapse in the HAP contract. The Contractor shall track cases in which a long-term renewal may not be completed by the expiration of the HAP contract. In such cases, the Contractor shall inform the COR via email no less than 30 days prior to the expiration of the HAP contract. Upon direction of the COR the Contractor shall process a short-term HAP contract renewal to allow additional time to process a long-term HAP contract renewal. The length of this short-term renewal shall be determined by the COR based on the information provided by the Contractor.

5.2.4 Support for Other HAP Contract Changes

The Contractor shall provide as-needed (for no more than five (5) percent of assigned properties per year) processing services and analysis for other types of HAP contract changes to include:

· Data entry support for Transferring Budget Authority of a Project-Based Section 8 Housing Assistance Payments Contract under Section 8(bb)(1) of the United States Housing Act of 1937.

· HAP Contract bifurcations, combinations, and terminations as requested by the COR.

Performance Standards

a) Standard: 100% review and verification of owner compliance with requirements for opting-out of a HAP Contract.

AQL: Zero deviation.

b) Standard: 100% of HAP Contract long-term renewals are processed and sent to the owner within 60 days of owner renewal request.

AQL: Zero deviation.

Deliverables A003 Opt-Out Notification A004 Notification of Owner Executed HAP Contract A005 Owner Executed HAP Contract A006 Short-Term Renewal Notification A007 Short-Term HAP Contract Renewal

5.3 HAP Contract Rent Adjustment

HAP Contract increases may fall under a variety of methods, including Budget-Based, Annual Adjustment Factor (AAF), Operation Cost Adjustment Factor (OCAF), and Special Adjustments options. If applicable, the Contractor shall analyze adjustments of the owner utility allowance schedule.

5.3.1 Operating Cost Adjustment Factors (OCAF)

The Contractor shall notify the O/A of the automatically generated OCAF (Auto-OCAF) rent adjustment within 120 days of the contract anniversary date for eligible contracts, and provide a copy of the rent increase that will result. The Contractor shall process the rent increase as requested by the O/A, if eligible, in accordable with the terms of the HAP Contract.

For HAP Contracts ineligible for an Auto-OCAF, the Contractor shall request from the O/A the submission of necessary forms for a manual OCAF within 120 days of the contract anniversary date. Upon receipt of the complete package for requesting an OCAF from the O/A, the Contractor shall perform the following tasks within 30 days of receipt of the submitted proposed rent increase from the O/A:

· Analyze adjustments of the owner utility allowance schedule, if applicable,

· Validate the property’s rent adjustment and RCS per HUD guidelines,

· Document contract rent increases on Form HUD-92458,

· Upon conclusion of proposed rent increase review, provide written notification which shall include the date of O/A submission, the Contractor’s determination, and a copy of the completed Form HUD-92458 to the O/A within 3 business days and copy the COR on this correspondence,

· Inform the owner of changes in the balance and required contribution to the R4R account, if necessary,

· Enter data into iREMS and upload a copy of the rent schedule and O/A request to LaserFiche within 5 business days of executed rent adjustment.

5.3.2 Budget-Based Rent Adjustments

Where applicable, the budget-based rent adjustment method requires an owner to submit an operating budget and supporting documentation for the Contractor to review. The rent adjustment may require HUD approval. The Contractor shall determine budget-based adjustments of contract rent by performing the following tasks:

· Verify accurate, timely completion and submission of the adjusted rent schedule by the owner,

· If the submitted proposed rent increase is less than 5%, evaluate the following factors within 30 days of receipt from O/A to determine reasonableness per guidance in HUD Handbook 4350.1, Multifamily Asset Management and Project Servicing or, if applicable, the Memorandum of Agreement with Rural Housing:

· the operating budget and supporting documentation for a rent adjustment

· adjustments of the owner utility allowance schedule, if applicable

· adjustment to the monthly reserve for replacement deposit if the HAP Contract requires the owner to maintain a reserve for replacement.

· Submit proposed rent increases (greater than (five) 5%) to the COR via email for review within 3 days of receipt from the O/A,

· Document contract rent increases on Form HUD-92458,

· Upon conclusion of proposed rent increase review, provide written notification which shall include the date of O/A submission, the Contractor’s determination, and a copy of the completed Form HUD-92458 to the O/A within 3 business days and copy the COR on this correspondence,

· Enter data into iREMS and upload a copy of the rent schedule to LaserFiche within 5 business days of executed rent adjustment.

5.3.3 Annual Adjustment Factors (AAF)

Under an AAF rent adjustment, the Contractor shall apply the most recent AAF to current contract rents. AAFs are published annually in the Federal Register. The Contractor shall perform the following tasks:

· Evaluate the following factors within 30 days of receipt from O/A:

· Apply formula in Housing Notice 2002-10 AAF Rent Increase

· Analyze adjustments of the owner utility allowance schedule, if applicable,

· Analyze adjustment to the reserve for replacement (if the HAP Contract requires the owner to maintain a reserve for replacement), and recommend action to HUD,

· Evaluate owner’s rent adjustment requests and supporting RCS using state appraisers certified in the relevant jurisdiction, if necessary,

· Document contract rent increases on a rent schedule (Form HUD-92458),

· Upon conclusion of proposed rent increase review, provide written notification which shall include the date of O/A submission, the Contractor’s determination, and a copy of the completed Form HUD-92458 to the O/A within 3 business days and copy the COR on this correspondence,

· Enter data into iREMS and upload a copy of the rent schedule to LaserFiche within 5 business days of executed rent adjustment.

5.3.4 Process Rent Appeals to Adjust HAP Contract Rents

The O/A shall have the opportunity to submit additional information or supporting documentation to the Contractor in the event the O/A disagrees with the rent adjustment determination. If the O/A elects to submit this additional information and the submitted rent adjustment is less than 5%, the Contractor shall review the rent adjustment determination and ensure it is a complete and accurate assessment of the property, and shall adjust the rent adjustment if necessary. Rent adjustments of greater than 5% shall be reviewed only by HUD through the final appeal process.

The Contractor shall conduct this review of the rent adjustment determination and send a letter to the O/A within 30 days of receipt of additional information. The letter shall include the date of O/A submission, detailed language describing the results of the review and language explaining how the O/A can request a final appeal to the HUD within 15 days of the transmittal date of the Contractor’s letter if the O/A wishes to do so. The Contractor shall copy the COR on this letter.

If HUD receives an appeal, HUD will contact the Contractor and request documentation. The Contractor shall submit the requested documentation via email to the COR within 5 business days of the request. Decisions rendered by HUD will be final and will not be subject to further appeal. If a different determination is made through the final appeal process, the Contractor shall update iREMS and upload an updated Form HUD-92458 to LaserFiche within 5 business days of notification from the COR.

Performance Standards

a) Standard: Evaluate rent adjustment requests within 30 days of receipt from O/A.

AQL: 5-day deviation from standard.

Deliverables A008 Proposed Rent Increases (Greater than 5%) A009 Appeal Documentation

5.4 Reporting

The Contractor shall submit reports, certification, and financial statements as identified below.

5.4.1 Annual Financial Statement

The Contractor shall submit via email to the COR an independently audited Annual Financial Statement no later than sixty (60) days after the Contractor’s fiscal year end. If there are audit findings in the financial statement that require corrective actions, the Contractor shall provide the COR a proposed plan of corrective actions no later than 5 days after audit findings. The Contractor shall implement corrective actions within 60 days unless the plan identifies impediments to implementation within the 60 days and provide a target completion date that is approved by the COR.

Deliverables A010 Annual Financial Statement A011 Annual Financial Statement Corrective Action Plan

5.4.2 Monthly Status Reports

The Contractor shall submit a Monthly Status Report to the COR by the tenth (10th) business day of each month for the previous month’s activities. The Monthly Status Report shall contain a detailed description of:

· Actual accomplishments for the month and year-to-date compared to the Annual Work Plan for the same period,

· Instances where the actual performance of tasks is below the AQL and actions taken to improve performance, and changes, if any, to the QCP to ensure performance is maintained at or above the AQL,

· Major accomplishments, success stories, etc.

· Noteworthy meetings,

· Pending issues,

· Hot Topics, (i.e. natural disasters, emergencies at the property, high rate of opt-outs, unresolved rent adjustments, etc.).

Deliverables A012 Monthly Status Report

5.5 Plans

The Contractor shall submit the following Plans:

5.5.1 Contingency Plan

The Contractor shall submit to the COR via email a Preliminary Contingency Plan within 5 business days of contract award that details how the Contractor shall continue to perform all tasks within this PWS in the event of various adverse situations that may arise. Within 10 business days of receiving feedback from the COR on the Preliminary Contingency Plan, the Contractor shall submit a Final Contingency Plan to the COR via email.

The Contractor shall notify the COR via email within two business hours of any incident that disrupts the Contractor’s performance under the contract, and shall provide an update within one (1) business day following such incident even if normal operations have resumed. The update shall state the nature of the incident, the extent of its impact on the Contractor’s operations, what actions have been initiated in response to the incident, and the expected date of the resumption of normal operations.

If the Contractor determines, at any time during or following an incident, that it is unable to comply with any provision of the contract and/or fully perform any task, the Contractor shall notify COR of its determination within two business hours of determination.

The Contingency Plan, at a minimum, shall cover the following topics:

· Subcontractor default.

· Recovery from a serious natural disaster that affects the Contractor’s ongoing operations.

· A strategy for fielding a high volume of issues arising as a result of a natural disaster affecting multiple properties/residents simultaneously.

· Incident Response Staff: The names, titles, incident response authority and responsibilities, and contact information for those staff primarily responsible for responding to adverse situations.

· Communication Back-up Plans and Systems:

· Procedures and methods of notifying and updating owners, and residents regarding changes in service procedures and the resumption of routine operations.

· Procedures and methods of notifying in the event of an incident, updating HUD regarding changes in service procedures until the resumption of routine operations, the performance status of each task or, if any task is not being fully performed, actions being taken to restore full performance of each task.

· Operating and Management Back-Up Plans and Systems: Procedures to relocate functions and staff to alternative office locations and/or telework sites; ensuring access to IT systems; maintaining internal and external communication systems (telephone, fax, email); and maintaining supervisory, accounting, financial, and human resource functions.

· Information Technology (IT) Back-up Plans and Systems: Procedures to maintain IT staff support and ensure operability, data protection and system security.

· Preparedness: Plan to provide annual training for employees and, if applicable, subcontractor employees, and annual testing of back-up plans and systems.

Within 60 days of the exercise of each option period, the Contractor shall review the Contingency Plan and determine if changes or updates are required. If changes are required, the Contract shall submit a revised Contingency Plan within 60 days of the exercise of the exercised option year. If the Contractor concludes upon review of the Contingency Plan that changes are not required, the Contractor shall submit a memorandum via email confirming the review of the Contingency Plan occurred and that the Contingency Plan is accurate, complete, and current.

A013 Preliminary Contingency Plan A014 Final Contingency Plan A015 Incident Notification A016 Incident Update A017 Updated Contingency Plan A018 Contingency Plan Review and Validation

5.5.2 Management Plan and Project Schedule

The Contractor shall be required to brief the Management Plan and the Project Schedule that was submitted with the Contractor’s proposal at the post award conference. The Contractor shall submit a revised Final Management Plan and Project Schedule to the COR no later than 10 business days after the post-award conference for review and approval.

A. The Management Plan shall be clear, concise, and demonstrate that it will result in meeting the objectives and requirements contained within the Performance Work Statement.

B. The Management Plan shall identify the following:

C, Project Schedule

The project schedule shall demonstrate a clear understanding of the required operations and HUD requirements with realistic timeframes for performing all tasks and subtasks, meetings, and deliverables.

Any modifications / changes to the Management Plan/Project Schedule during the period of performance shall be provided to the COR for review no later than 10 business days prior to effective date of the change. The Management Plan shall be subject to the Government’s review and approval.

Within 60 days of the exercise of each option period, the Contractor shall review the Management Plan/Project Schedule to determine if changes are required. If changes are required the Contractor shall submit a revised Management Plan/Project Schedule before the 61st day of the exercised option period. If changes are not required, the Contractor shall submit a letter via email declaring that the existing Management Plan/Project Schedule is accurate, complete, and current before the 61st day of the exercised option period.

A019 Final Management Plan / Project Schedule A020 Updated Management Plan / Project Schedule

6.1 Transition-In

The new Contractor shall have sufficient personnel on board during the 90-day Transition-In period to ensure a smooth transition with the incumbent. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall begin to take responsibility for and implement the requirements, and gradually take on tasks in order to commence full performance of services by the end of the contract Transition-In period.

The Contractor shall be required to brief the Transition-In Plan that was submitted with the proposal at the post award conference. The Contractor shall submit a revised Final Transition-In Plan within 5 business days after the post-award conference to the COR via email for review and approval. The Contractor shall develop and implement procedures to ensure a smooth transition of the duties under this PWS with no interruption of performance.

During the Transition-In period, the Contractor shall obtain access to HUD systems for performing the tasks in this PWS for all personnel who require access to the system to perform their duties in accordance with HUDAR 2452.239-70 ACCESS TO HUD SYSTEMS (DEVIATION MAY 2017). Once this access is obtained, the Contractor shall familiarize itself with the structure of and fields present in HUD systems that the Contractor shall work with under the task described in this PWS. The Contractor shall review the information available in HUD systems regarding the HAP Contracts assigned to the Contractor under this contract.

The Contractor shall establish a physical infrastructure, retain qualified staff and obtain the necessary information technology applications to perform the tasks required in this PWS.