86614620Q00002 Study of Submetering Utilities Amended Dec 2019.docx

SECTION M – EVALUATION CRITERIA FOR AWARD Study of Sub-metering Utilities in HUD Projects Policy Development and Research 86614620Q00002, Amendment 1

TABLE OF CONTENTS Study of Sub-metering Utilities in HUD Projects Policy Development and Research 86614620Q00002, Amendment 1

Table of Contents Page

PART I - THE SCHEDULE

SECTION B - SUPPLIES OR SERVICES AND PRICE/COSTS

SECTION C - DESCRIPTION/PERFORMANCE WORK STATEMENT 5

SECTION D - PACKAGING AND MARKING 33

SECTION E - INSPECTION AND ACCEPTANCE 34

SECTION F - DELIVERIES OR PERFORMANCE 36

SECTION G - CONTRACT ADMINISTRATION DATA 37

SECTION H - SPECIAL CONTRACT REQUIREMENTS 40

PART II - CONTRACT CLAUSES

SECTION I - CONTRACT CLAUSES 41

PART III - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACHMENTS

SECTION J - LIST OF ATTACHMENTS……………………………………………………………………………56

PART IV – REPRESENTATIONS AND INSTRUCTIONS

SECTION K – REPRESENTATION, CERTIFICATIONS, AND OTHER STATEMENTS OF OFFERORS…57

SECTION L – INSTRUCTIONS, CONDITIONS, AND NOTICES TO OFFERORS…………………………….69

SECTION M – EVALUATION FACTORS FOR AWARD…………………………………………………………74

Page 11 of 59 Section C

SECTION B - SUPPLIES OR SERVICES AND PRICES/COST PART

B.1 CONTRACT DEFINITION

This is a fixed priced contract under the authority of FAR Part 13.5- Program for Certain Commercial Items for performance of the services stated in Section C, Performance Work Statement.

B.2 DESCRIPTION OF SERVICES

The Contractor shall provide all management, supervision, personnel, equipment, materials, supplies, facilities, and other resources necessary to perform, schedule, coordinate, deliver, and assure effective performance of all tasks as defined in Section C.5. More specifically, the Contractor shall: The contractor shall lay a foundation to understand the mechanics, value and effectiveness of shifting the utility cost burden from PH, MF, and RAD projects to tenants through the installation of utility sub-metering systems. Sub-metering is the installation of additional metering devices after the primary utility meter that can measure the amount of a utility consumed by a specific entity.

B.3 CONTRACT LINE ITEM NUMBERS AND PRICES

The quantities of services to be provided during the period are indicated in the tables below.

B.3.1 CONTRACT FIXED UNIT RATES AND TOTAL PRICES

BASE YEAR: Period of Performance: January 15, 2020 thru September 14, 2021

Section C

NSP

NSP

NSP

NSP

NSP

NSP

NSP

TOTAL PRICE

SECTION B – SUPPLIES OR SERVICES AND PRICES/COST Study of Sub-metering Utilities in HUD Projects Policy Development and Research 866146209Q00002, Amendment 1

Page 4 of 78 Section B

SECTION C - DESCRIPTION/SPECIFICATIONS/WORK STATEMENT

Study of Sub-metering Utilities in HUD Projects Vision Statement The vision of this procurement is to understand the mechanics, value, and effectiveness of shifting the utility cost burden from Public Housing (PH), privately owned multifamily assisted housing (MF), and Rental Assistance Demonstration (RAD) projects to tenants through the installation of utility sub-metering systems.

1. General Information

1.1 Introduction

The U.S. Department of Housing and Urban Development (HUD), Office of Policy Development and Research (PD&R) requires a contractor to lay a foundation to understand the mechanics, value and effectiveness of shifting the utility cost burden from PH, MF, and RAD projects to tenants through the installation of utility sub-metering systems. Sub-metering is the installation of additional metering devices after the primary utility meter that can measure the amount of a utility consumed by a specific entity.

In the case of HUD’s housing stock, sub-metering would provide PH, MF, and RAD projects the ability to directly monitor the utility use and assign responsibility of the associated costs to each of their tenant households rather than solely reporting and paying the costs at the project (development), building, or property level. HUD is aware that installing sub-meters may provide multiple benefits (e.g., equipment diagnostics, appropriate allocation of utility charges, providing feedback on utility consumption, and promoting behavior change); however, any resulting utility reductions will be determined by tenant decisions and thus are not guaranteed.[footnoteRef:1],[footnoteRef:2],[footnoteRef:3],[footnoteRef:4] [1: New York State Energy Research and Development Authority (NYSERDA), ‘Submetering for Multifamily Buildings,’ https://www.nyserda.ny.gov/All-Programs/Programs/MPP-Existing-Buildings/Submetering.aspx.] [2: Alliance for Water Efficiency, ‘National Multiple Family Submetering and Allocation Billing Program Study,’ http://www.allianceforwaterefficiency.org/assets/0/28/142/2534/77adbb1c-89d1-4590-be67-587e9af15b80.pdf.] [3: National Science and Technology Council Committee on Technology (2011), ‘Submetering of Building Energy and Water and Usage,’ http://www.allianceforwaterefficiency.org/uploadedFiles/Resource_Center/Library/submetering/NIST-2011-Submetering-of-Energy-and-Water-Use.pdf.] [4: General Services Administration, ‘Submetering Business Case: How to calculate cost-effective solutions in the building context,’ https://www.gsa.gov/cdnstatic/Submetering_Business_Case_How_to_calculate_cost-effective_solutions_in_the_building_context.pdf.]

Bidders must be knowledgeable of the various types of utility metering configurations (i.e., master-metered, directly metered, and sub-metered), applicable policies and guidance, relevant stakeholders, and HUD’s PH, MF, and RAD portfolios in which the utilities are paid by the housing authority or private owner.

The Task Order is intended to address four central research questions:

1. What are the currently available sub-metering systems on the market for residential multifamily buildings? What are the costs of implementing a sub-metering system using these products?

1. What are the applicable federal and state policies and guidance affecting the adoption and use of sub-metering systems in multifamily buildings?

1. Which PH, MF, and RAD projects have transitioned from a PHA-/owner-paid to a tenant-paid utilities structure through the installation of a sub-metering system? For this subset of projects, what local policies and guidance have affected their adoption and use of sub-metering systems? What has this subset of projects learned that can help others with the decision process and implementation?

1. Have sub-metering systems been an effective tool to assist the participants in reducing their utility expenditures?

Under this contract, HUD expects Bidders to propose a method to answer the specified research questions. The PWS specifies HUD’s performance requirements and suggests an approach that a Bidder may wish to incorporate into their strategy when reviewing this solicitation. Although HUD believes that this approach is likely to be effective and feasible, Bidders are encouraged to identify and propose alternatives using additional or alternative data or methodologies that are replicable, statistically valid, and may be generalized to the HUD housing stock.

1.2 Background

In 2016, it is estimated that the total utility expenditures in HUD-assisted and public housing stock is $7.6 billion.[footnoteRef:5] Of this amount, it is estimated that HUD-paid utility expenditures amount to $6.9 billion. This reported amount supports approximately 4.7 million units and has increased by nearly 43 percent since 2005. As illustrated in Table 1, HUD’s utility expenditure portfolio consists of three primary housing programs – Public Housing, privately owned assisted-multifamily housing, and tenant-based Section 8 Housing Choice Vouchers – that all have experienced utility cost increases of at least 20 percent since 2005. [5: The estimated $6.9B in HUD-paid expenditures is based on a prior analysis by HUD’s Office of Policy Development and Research, which concluded that HUD pays for an estimated 76 percent ($3.110B) of utility allowance (UA) expenditures through the Housing Choice Voucher (HCV) program, while the tenants were responsible for the remaining balance ($746M, 24%). Thus, for all annual HCV UA expenditures, it is assumed that HUD only paid 76 percent of the reported amount. For UAs in Public Housing and Multifamily-Assisted Housing, it is assumed that the full cost of the UAs is subsidized by HUD.]

Table 1: HUD’s Annual Utility Expenditure, 2005 – 2016

($ millions) ($ millions) ($ millions) ($ millions) ($ millions) Increase over 2005 (%)

Public Housing

Multifamily-Assisted Housing

Sec. 8 Housing Choice Vouchers

The reported quantities were taken from a collection of Department progress reports[footnoteRef:6],[footnoteRef:7],[footnoteRef:8],[footnoteRef:9] that were submitted to Congress pursuant to Section 154 of the Energy Policy Act of 2005 and illustrate HUD’s annual utility expenditures based upon annual Financial Assessment Subsystem data. In instances when a reported expenditure differed amongst multiple reports, the more conservative (higher) amount was included in the table. [6: U.S. Department of Housing and Urban Development, ‘Promoting Energy Efficiency at HUD at a Time of Change,’ https://www.huduser.gov/Publications/pdf/EnergyEfficiency.pdf.] [7: U.S. Department of Housing and Urban Development, ‘Implementing HUD’s Energy Strategy,’ https://www.hud.gov/sites/documents/DOC_4321.PDF.] [8: U.S. Department of Housing and Urban Development, ‘Affordable Green: Renewing the Federal Commitment to Energy-Efficient, Healthy Housing,’ https://www.hud.gov/sites/documents/OSHCENERGYREPORT2012.PDF.] [9: U.S. Department of Housing and Urban Development, ‘Utility Expenditures in HUD-Assisted Housing – 2016,’ [Working Draft], unpublished. ]

Overview of HUD Housing Programs

Public Housing Program

HUD’s Public Housing[footnoteRef:10] (PH) Program was established under the Housing Act of 1937 to provide safe, decent, and affordable rental housing. As of December 2017, HUD’s Picture of Subsidized Households[footnoteRef:11] illustrates that the Department administers federal aid to approximately 3,000 local Public Housing Authorities (PHAs) to manage and operate low-rent housing for approximately 1.04 million households nationwide. Since 2005, the number of households within the PH program has experienced a minimal decrease of approximately five percent. [10: U.S. Department of Housing and Urban Development, ‘HUD's Public Housing Program,’ http://portal.hud.gov/hudportal/HUD?src=/topics/rental_assistance/phprog. ] [11: U.S. Department of Housing and Urban Development, ‘Picture of Subsidized Households – Public Housing Agency Data (Dec. 2017),‘ https://www.huduser.gov/portal/datasets/pictures/files/PHA_2017.xlsx.]

Multifamily Housing Program

HUD’s Multifamily (MF) Program provides funding in a variety of forms to assist private owners of buildings that are designed to house different families in separate housing units. The Department classifies these properties into three broad categories – Section 202[footnoteRef:12]/811[footnoteRef:13] properties, HUD-insured[footnoteRef:14] (unsubsidized) properties, and HUD-assisted[footnoteRef:15] (subsidized) properties – based upon the type of funding provided. Households that receive a rental subsidy in this program may receive a reimbursement for utility expenses based on unit characteristics and expected use but are responsible for any non-owner paid utility costs above the reimbursed amount. As of December 2017, the MF Program provided federal assistance to approximately 1.42 million households nationwide.11 Since 2005, this quantity has remained relatively steady with an increase of approximately one percent. [12: U.S. Department of Housing and Urban Development, ‘Section 202 Supportive Housing for the Elderly Program,’ http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/progdesc/eld202.] [13: U.S. Department of Housing and Urban Development, ‘Section 811 Supportive Housing for Persons with Disabilities,’ http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/progdesc/disab811.] [14: U.S. Department of Housing and Urban Development, ‘The Federal Housing Administration (FHA),’ http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory.] [15: HUD-assisted (subsidized) properties are either insured under an FHA mortgage insurance program that includes a mortgage interest subsidy or provided with some form of HUD rental assistance.]

Housing Choice Voucher Program

Additionally, under the U.S. Housing Act of 1937, HUD assists approximately 2.5 million households nationwide through the Housing Choice Voucher[footnoteRef:16] (HCV) Program through approximately 2,500 PHAs and other housing agencies.11 Since 2005, the number of households within the HCV program has increased by nearly 40 percent. Similar to the MF properties, households with vouchers may receive a reimbursement for utility expenses based on unit characteristics and expected use but are responsible for any non-owner paid utility costs above the reimbursed amount. Participants residing in HCV properties are not within this study’s scope but are described here for context. [16: U.S. Department of Housing and Urban Development, ‘Housing Choice Vouchers Fact Sheet,’ https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/about/fact_sheet.]

Rental Assistance Demonstration Program

HUD’s Rental Assistance Demonstration[footnoteRef:17] (RAD) Program was established under the Consolidated and Further Continuing Appropriations Act of 2012 to serve as a powerful mechanism to address the capital needs backlog of the nation’s public housing stock. At inception, the program had a statutory limit of 60,000 units; however, Congress has raised the cap on RAD units multiple times and as of March 2018, this cap was raised to 455,000 units.[footnoteRef:18] As of October 1, 2018, RAD has helped the Department preserve 100,994 units of affordable public housing.[footnoteRef:19],[footnoteRef:20] [17: U.S. Department of Housing and Urban Development, ‘Rental Assistance Demonstration,’ http://portal.hud.gov/hudportal/HUD?src=/RAD.] [18: National Low Income Housing Coalition, ‘HUD Issues Two RAD Notices Implementing FY18 Appropriations Act Provisions and Making Additional Changes,’ http://nlihc.org/article/hud-issues-two-rad-notices-implementing-fy18-appropriations-act-provisions-and-making.] [19: RAD Resource Desk, ‘Properties Participating in RAD Program (Oct. 1, 2018),’ http://www.radresource.net/pha_data.cfm.] [20: U.S. Department of Housing and Urban Development, ‘HUD Rental Assistance Demonstration Reaches Historic 100,000 Unit Milestone,’ https://www.hud.gov/press/press_releases_media_advisories/HUD_No_18_103.]

Overview of HUD Utility Expenditures

As described above in Table 1, utility expenditures for the Departments three housing programs can collectively be assigned to two categories – PHA-/owner-paid utilities and utility allowances.

This study will focus only on the portion of the PH, MF, and RAD portfolios in which the utilities are paid by the housing authority or private owner. It is estimated that approximately 52 percent (540,000 units) of the 1.04 million units of public housing, 34 percent (480,000 units) of the 1.42 million units of multifamily housing, and 52 percent [footnoteRef:21] (52,000 preserved units) of the 100 thousand preserved units of RAD projects fall into this category. [21: As of the end of Fiscal Year (FY) 2018, the Department had not published any utility expenditure data explicitly related to RAD projects thus, it is assumed that this portfolio follows a similar trajectory of PHA-/owner-paid utilities as the public housing portfolio.]

From a cost perspective, PHA- and owner-paid utilities are the largest source of federal subsidized utility expenditures in the public housing and multifamily housing programs, respectively.

Dating back to 2005, on average, PHA-paid utilities accounted for approximately 76 percent of annual Public Housing utility expenditures and 22 percent of annual Department-wide utility expenditures. During the same timeframe, owner-paid utilities, on average, accounted for approximately 63 percent of annual Multifamily utility expenditures and 19 percent of annual Department-wide utility expenditures. However, when combined, on average, the two respective housing programs accounted for approximately 70 percent of annual Public Housing and Multifamily utility expenditures and 41 percent of annual Department-wide utility expenditures.

For PHA-/owner-paid utilities, a property’s utility use is measured through a single meter, owned by the local utility, and the burden of paying the utility costs falls on the PHAs and private owners, regardless of the energy-conservation behaviors (or lack thereof) exhibited by the tenants. Tenants residing in master-metered properties are not billed directly for their utility use but instead pay a gross rent that includes a share of the cost of utilities for the property.

Tenants who receive a utility allowance (UA) live in units that are either directly metered or sub-metered. Such tenants are responsible for their own utility bills with the help of the UA, which is a subsidy provided to the tenant by HUD via the PHA or private owner and intended to cover reasonable amounts for utilities, such as: electricity, natural gas, water, and sewage.

In directly metered units, a tenant’s gross rent consists of costs for shelter and utilities. The servicing PHA or private owner provides the tenant a UA to assist in paying for the units anticipated utility expenses. If the tenant’s utility expenses exceed the supplied UA, the tenant is responsible for paying the difference. Under this utility configuration, the installed meter is owned by the local utility and each household has a separate utility account.

In sub-metered units, tenants also receive a UA; however, this payment is used to mark the maximum level of consumption that may be consumed without a surcharge (additional charge). Tenants are charged extra if their consumption exceeds the specified maximum level. Under this type of utility configuration, sub-meters (sometimes referred to as check-meters) are installed for each unit, in addition to the utility-owned master-meter. The installed sub-meters are owned by the PHA or private owner and used to measure individual unit consumption.

The figures below depict the various metering configurations that may be present within a subsidized multifamily housing building.

Figure 1: Master-metered Multifamily Building* Common Area 1 Unit 3 Unit 1 Unit 4 Unit 2 Common Area 2 Master-meter Unit 7 Unit 5 Unit 8 Unit 6

* Building contains one building-wide, utility-owned meter that measures the consumption for all units and common areas. The building owner receives one utility bill, per utility. A tenant’s monthly rent would cover the costs for shelter and a share of the total utilities.

Figure 2: Directly metered Multifamily Building** Common Area 1 Unit 3 Unit 1 Unit 4 Unit 2 Common Area 2 M1

MCA-1

M3 M4 M2

MCA-2

Unit 7 Unit 5 Unit 8 Unit 6 M5 M7 M6 M8

** Building contains direct, utility-owned meters for each unit (MX) and common area (MCA-Y). Each unit and common area (common area bills may be combined) receives an individual bill. A tenant’s monthly rent would cover the costs for shelter and utilities. To assist with paying their utility bills, the tenant would receive a utility allowance (i.e., a subsidy) from HUD.

Figure 3: Sub-metered Multifamily Building*** Common Area 1 Unit 3 Unit 1 Unit 4 Unit 2 Common Area 2 Master-meter

SM3

SM4

SM2

SM1

Unit 7 Unit 5 Unit 8 Unit 6

SMCA-1

SM5

SM7

SM6

SM8

SMCA-2

*** Building contains one building-wide, utility-owned meter and multiple building-owned sub-meters for each unit (SMX) and optional common area (SMCA-Y). The building owner receives one utility bill per utility, but bills each unit for their individual utility consumption. A tenant’s monthly rent would cover the costs for shelter and utilities. In addition, the tenant receives a utility allowance (i.e., a subsidy) from HUD to assist with paying their utility bills; however, this payment marks the maximum level of utility consumption that may be consumed without a surcharge (i.e., additional fee if a tenant’s consumption exceeds the max. level).

Although HUD is cognizant of the multiple types of meter configurations that may be utilized, the Department does not collect data detailing the type and quantity installed within its housing stock. Furthermore, many buildings within the PH, MF, and RAD portfolios may have different metering structures for various utilities. Thus, the provided electricity, natural gas, and water may be directly metered, master-metered, and sub-metered, respectively.

Surcharges of Excessive Consumption of PHA-Paid Utilities

For PHA-paid utilities, a HUD-52722 / Utility Expense Level (UEL) form is used to report annual utility consumption and submitted in support of the housing authority’s annual operating subsidy request (HUD-52723 / Operating Fund Calculation of Operating Subsidy). Line item 19 on the UEL form documents the aggregate amount of charges to tenants for excess utility consumption of a PHA-paid utility but may also include charges to tenants for major appliances not covered by HUD (e.g., air conditioning). To assist with Task 5.1.5 (participant selection), it is anticipated that the awarded Contractor will use HUD administrative datasets to assist in identifying PH projects that may have installed sub-metering systems.

Department’s Largest 20 PH, 20 MF, and 20 RAD Projects by their Respective Unit Counts

Table 2, Table 3, and Table 4 list the Department’s largest 20 PH, 20 MF, and 20 RAD projects, each sorted by their respective number of housing units. The PH subset consists of 362,547 units, MF subset consists of 18,461 units, and RAD subset consists of 10,744 preserved units. From an entity perspective, a large majority (approximately 92 percent) of the displayed projects represent one percent or less of the total number of housing units for their respective portfolio. However, from an aggregate unit perspective, the PH subset accounts for approximately 35 percent of the total number of public housing units (1,040,888 units), MF subset accounts for just over one percent of the total number of multifamily housing units (1,416,184 units), and RAD subset accounts for approximately 11 percent of the total number of preserved RAD units (100,803 units). Tables 2-4 are provided to solely illustrate the unit count quantity and percentage of the largest 20 projects within the respective housing programs.

Table 2: Listing of Largest 20 Public Housing Projects, sorted by number of PH units

Code

Region[footnoteRef:22] [22: U.S. Department of Housing and Urban Development, ‘HUD’s Regions,’ https://www.hud.gov/localoffices/regions.]

Unit Count N (%) Unit Count % of All PH Units (1,040,888 units)

Aggregate

The reported unit count quantities for the individual PHAs and entire PH stock were taken from HUD’s Picture of Subsidized Housing (Dec. 2017).11

Table 3: Listing of Largest 20 Multifamily Projects, sorted by number of MF units

Region22 Unit Count N (%) Unit Count % of All MF Units (1,416,184 units)

Aggregate

The reported unit count quantities for the individual MFs and entire MF stock were taken from HUD’s Picture of Subsidized Housing (Dec. 2017).11 Program Label: † Project Based Section 8 project | Section 236 / Below Market Interest Rate (BMIR) project

Table 4: Listing of Largest 20 Rental Assistance Demonstration Projects, sorted by number of preserved RAD units

Region22 Preserved Unit Count N (%) Unit Count % of All Preserved RAD Units (100,994 units)

Aggregate

The reported preserved unit count quantities for the individual Rental Assistance Demonstration projects and entire RAD housing stock were taken from the RAD Resource Desk (Oct. 1, 2018).11 Type of Conversion: α Project-Based Voucher project | Project-Based Rental Assistance project

Identified PHAs that have Implemented or Indicated the Intent to Install Sub-metering Systems

Table 5 provides an initial list of PHAs that have implemented or indicated the intent to install sub-metering systems. The list is constructed on a HUD regional basis22 and intended to illustrate a diverse mix of PHAs that may be visited in Task 5.1.5.

Table 5: Identified PHAs that have Implemented or Indicated the Intent to Install Sub-metering Systems, sorted by HUD Region

This initial list may be updated or revised during the performance of the executed contract.

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:

· The Contractor shall prepare the data files in SAS or SPSS format (or a format acceptable to the COR). The database files shall include complete documentation. Code or syntax files must be fully documented as well. Sufficient information for replication of the analyses for all reports must be included. The COR) can provide instructions and examples of how to prepare the data documentation.

· No copies of or extracts from the data files, including names, address information or other identifiers will be retained by the Contractor after the completion of this project.

· The data collected under this project belongs to HUD and HUD reserves the right to analyze the data collected for the study and make it available to others for independent analysis. In such circumstances, HUD will acknowledge the Contractors role in collecting the data.

· Original word processing, spreadsheet or other electronic format and as a PDF); deliverables (in both the original and PDF formats); presentations (in the presentation software format); all graphics such as CAD or other drawings (in their native format), and photos taken for the project (in JPG format). These should be organized in some readily apparent system as determined by the contractor and COR.

Added: Any files HUD may provide will be in Excel, SAS, or some delimited (comma, tab, etc) format. Files provided by the Contractor will be in a format agreed upon by the Contractor and COR, in Excel, SAS, or some delimited (comma, tab, etc) format

1.4 Description of Services

HUD is seeking a contractor to lay a foundation to understand the mechanics, value, and effectiveness of shifting the utility cost burden from PH, MF, and RAD projects to tenants through the installation of utility sub-metering systems. The results of this effort are intended to serve as a precursor for an anticipated demonstration effort to provide informed guidance illustrating the feasibility, practicality, and benefits of positioning tenants to respond to the introduction of a sub-metering system. The type of work to be conducted includes:

· Conducting a literature review of applicable federal and state policies and guidance related to utility sub-metering;

· Performing a reconnaissance of currently available sub-metering systems applicable for utilities (e.g., electricity, natural gas, and water utilities) within residential multifamily buildings, and relevant stakeholders (e.g., trade associations, advocacy groups, and public utilities commissions; and industry vendors, consultants, and installation and billing contractors) associated with the field of sub-metering to receive and gather input regarding their experiences with incorporating sub-metering systems;

· Developing data collection instruments that will be used to gather information from a subset (3) of the identified projects that have implemented or indicated the intent to install sub-metering systems;

· Conducting site visits to a subset (3) of the identified projects;

· Producing case studies summarizing the information gained from the performed site visits; and

· Reporting of findings that include policy analysis and recommendations pertaining to utility use and expenditures within the PH, MF, and RAD portfolios in which the utilities are paid by the housing authority or private owner.

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 of 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 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 20 months.

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

N/A

1.9 Special Qualifications

N/A

1.10 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The CO, 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 CO will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor will 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 Washington, DC. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

The contractor shall propose travel cost as part of their quote.

1.13 Transition In

N/A

1.14 Transition Out

N/A

2 Definitions and Acronyms

2.1 Definitions

Business/Work Days - Every official workday of the week which days are between and including Monday to Friday. This does not include public holidays and weekends.

Calendar Day - Any day of the week.

Contractor - A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

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.

Defective Service - A service output that does not meet the standard of performance associated with the Performance Work Statement.

Deliverable - Anything that can be physically delivered but may include non-manufactured things such as meeting minutes or reports.

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.

Management and Work Plan (MWP) – A document that details the resources, including all personnel and their level of effort, the solicited effort, a schedule for delivery of products, and completion of the contract. The MWP shall govern the performance of all work under this contract and include: a detailed outline of specific tasks, approaches, staff and management responsibilities, and allocation of contract resources. The MWP shall also include a timeline identifying start dates, completion dates, and other major milestones for each task and sub-task. Where there are interdependencies among the tasks, the plan shall indicate how each task will provide the necessary input to the others. When appropriate, the MWP must also indicate any other decisions reached at the Post Award/Kickoff Conference.

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 Performance Work Statement for performance-based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Physical Security - Actions that prevent the loss or damage of Government property.

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.

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.

Subcontractor - 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 subcontractor. The Government does not have privity of contract with a subcontractor.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

AQL - Acceptable Quality Level ARAMS - Automated Renewal and Amendment System BAA - Business Area Analysis Study CBT - Computer-Based Training CCB - Change Control Board CCMB - Configuration Change Management Board CMMI - Capability Maturity Model Integration CFO or OCFO - Office of the Chief Financial Officer of HUD CFR - Code of Federal Regulations CIO or OCIO - Office of the Chief Information Officer of HUD CO - Contracting Officer COR - Contracting Officer’s Representative COTS - Commercial Off-the-Shelf CPO - Office of the Chief Procurement Officer of HUD EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion FHA - Federal Housing Administration FY - Fiscal Year GAO - U.S. General Accounting Office GTM - Government Technical Monitor GTR - Government Technical Representative HCV - Housing Choice Voucher HUD - U.S. Department of Housing and Urban Development HUDAR - HUD Acquisition Regulation HUD/ISG - Internet Services Group within the Telecom Processing Division HUD Web - HUDs Intranet Web Site and related WEB pages.

IG or OIG - Inspector General (Office of) IT - Information Technology IV&V - Independent Validation and Verification LOOCS - Line of Credit Control System MF – Multifamily MCA-Y- Metered (Directly) Common Area MX - Metered (Directly) Unit MWP - Management and Work Plan OCPO - Office of the Chief Procurement Officer OIG - Office of Inspector General OMB - Office of Management and Budget PH - Public Housing PHA - Public Housing Authority PL - Public Law PM - Project Manager PD&R - Office of Policy Development and Research PRA - Paperwork Reduction Act POC - Point of Contact POP - Period of Performance PWS - Performance Work Statement PPM - Project Planning and Management QA - Quality Assurance QASP - Quality Assurance Surveillance Plan QCP - Quality Control Plan RAD - Rental Assistance Demonstration RD/DCAP - Research Design/Data Collection and Analysis Plan SMCA-Y - Sub-metered Common Area SMX - Sub-metered Unit SF - Standard Form TBD - To be determined UA - Utility Allowance UEL - Utility Expense Level U.S.C - United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

N/A

3.2 Facilities

N/A

3.3 Equipment

N/A

3.4 Materials

N/A

3.5 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 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 facility.

4.2 Equipment

The contractor shall furnish equipment.

4.3 Material

The contractor shall furnish material.

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.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel. The Contract/Project Manager and alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance, and direction from the COR and CO per HUDAR 2452.237-73, "Conduct of Work and Technical Guidance" and shall be allocated enough hours to the requirement to ensure successful performance. These points of points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

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.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP). The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 Specific Tasks

5.1 The Contractor shall develop a research design/data collection and analysis plan for review and acceptance.

The Contractor shall develop a research design/data collection and analysis plan (RD/DCAP) which will focus on the collection of information that will be used to determine the value and effectiveness of utility sub-metering systems. The RD/DCAP will include: a set of research questions; a process for engaging and maintaining communication with the study’s participants; an overall data collection strategy; the development of a database in which to store and organize all data collected related to this study, and a data analysis plan.

The RD/DCAP must include the following components:

· Refinement of research questions The Contractor shall review the materials and requirements associated with sub-metering within HUD’s PH, MF, and RAD portfolios, prior research described in this solicitation, and any…