A17021-J02_SOW-170310_revised_3.27.17.pdf

A17021, Attachment J.02

A17021, ATTACHMENT J.02

STATEMENT OF WORK

REAL PROPERTY

TABLE OF CONTENTS

C.1 GENERAL INFORMATION

C.1.1 Background

C.1.1.1 TFF and TEOAF

C.1.1.2 OFAC

C.1.1.3 Types of Forfeiture

C.1.1.4 Types of Custody

C.1.2 Objective

C.1.3 Management and Administration

C.1.3.1 Organizational Chart

C.1.3.2 Personnel Requirements

C.1.3.3 Training

C.1.3.4 Contract-Specific Training

C.1.3.5 Plans and Programs

C.1.3.6 Contractor Interfaces

C.1.4 Performance

C.1.4.1 Performance Standards

C.1.4.2 Quality Assurance

C.1.5 Risk Management

C.1.5.1 RM Plan

C.1.5.2 RM Report

C.1.5.3 Quality Control Program

C.1.5.4 Adverse Incidents

C.1.5.5 Disaster Recovery (DR) and Continuity of Operations (COOP)

C.1.6 Security Program

C.1.6.1 Security Clearances

C.1.6.2 Citizenship Requirements

C.1.6.3 Accounting for and Records of Employees

C.1.6.4 Access to Property

C.1.7 Information Assurance Security Requirements/Plan

C.1.7.1 General

C.1.7.2 IT System Security

C.1.8 Agency Directives, Policies, Regulations, Forms and Publications

C.2 GOVERNMENT-FURNISHED PROPERTY AND SERVICES

C.2.1 General

C.2.2 Accountability and Inventory Management

C.2.2.1 Initial Inventory of Government-Furnished Property

C.2.2.2 Annual Inventory

C.2.2.3 Receiving Reports

C.2.2.4 Property Shortages and Damages

C.2.2.5 Final Inventory

C.2.3 Government-Furnished Forms

C.2.4 Government-Furnished Materials and Supplies

C.2.5 Government-Furnished Facilities

C.2.6 Government-Furnished Equipment

C.2.6.1 General

C.2.6.2 SEACATS

C.2.6.3 Contractor Support for Government-Furnished Systems

C.2.6.4 Repair versus Replacement of GFE

C.2.6.5 Equipment Manuals

C.2.6.6 Return of GFE to the Government

C.2.6.7 Moving of GFE

C.2.7 Government-Furnished Services

C.2.7.1 Computer Help Desk

C.2.7.2 T-1 Lines

C.2.7.3 Training

C.2.8 Travel

C.3 CONTRACTOR-FURNISHED PROPERTY AND SERVICES

C.3.1 General

C.3.2 Contractor-Furnished Systems

C.3.2.1 Correspondence Control and Storage System

C.3.2.2 Accounting and Finance System

C.3.2.3 Asset Management Information System (AMIS)

C.3.3 Contractor-Furnished Equipment

C.3.3.1 Telecommunications Equipment

C.3.3.2 Computers and Peripherals

C.3.4 Contractor-Furnished Supplies and Materials

C.3.5 Contractor-Furnished Services

C.3.5.1 Mail, Delivery and Transportation Services

C.3.5.2 Clerical Support

C.3.6 Contractor-Furnished Facilities

C.4 SPECIFIC REQUIREMENTS

C.4.1 Contractor Operations

C.4.1.1 Administrative Tasks

C.4.1.2 Office Listings and Hours of Operation

C.4.1.3 Operational Procedures

C.4.1.4 Identification of Prime contract Staffing to Government

C.4.1.5 Vendors and Subcontractors

C.4.2 Pre-Seizure Analyses

C.4.2.1 Mandatory Pre-Seizure/Seizure Services

C.4.2.2 Optional Pre-Seizure Services

C.4.2.3 Completion of the Pre-Seizure Package

C.4.3 Services Relating to Post and Walk

C.4.4 Consignment

C.4.4.1 Receipt and Transfer

C.4.4.2 Documentation of Conditions

C.4.4.3 Securing the Property and Initial Maintenance Services

C.4.5 Property management and Maintenance

C.4.5.1 Implementation of Maintenance

C.4.5.2 Completed Work Reporting

C.4.6 General Operating Requirements

C.4.6.1 Seizure Transaction Accountability

C.4.6.2 Physical Access to Real Property

C.4.6.3 Recording of the Final Order of Forfeiture

C.4.6.4 Payment of Liens, Mortgages and Taxes

C.4.6.5 Deeds of Trust

C.4.7 Operation of Commercial Businesses

C.4.7.1 Business Plan Update

C.4.7.2 Fiscal Quarterly Reporting

C.4.7.3 Set-up Operating Accounting Structure for Income and Expenditures

C.4.8 Tenant Recruitment

C.4.9 Rental Management

C.4.10 Develop Cost Estimates

C.4.11 Real Property Disposition

C.4.11.1 Interlocutory Sales

C.4.11.2 Remittance

C.4.11.3 Retention by TFF Law Enforcement Agencies

C.4.11.4 Transfer to Other Federal, State, or Local Agencies

C.4.11.5 Donations

C.4.11.6 Marketing and Sales

C.4.11.7 Procedures and Methods for Marketing and Selling Real Property

C.4.11.8 Provide Closing Services

C.4.12 Automated Systems

C.4.12.1 SEACATS

C.4.12.1 Contractor Cost Reporting

C.4.13 Accounting and Financing

C.4.13.1 Accounting and Financing Standards

C.4.13.2 Accounting Requirements

C.4.13.3 Accounting for Non-Routine Types of Real Property Dispositions

C.4.13.4 Accepting Payment

C.4.13.5 Terms of Payment

C.4.13.6 Documenting Sales

C.4.13.7 Transfer of Funds to the Department of the Treasury

C.4.13.8 Relinquished Sale Deposits

C.4.13.9 Final Revenue/Expense Sale Report

C.4.13.10 Shortages/Overages of Collections

C.4.14 Program Reviews

C.4.14.1 Reports

C.4.14.2 Types of Reports

C.4.15 Annual Inspection

C.4.16 Transition/Phase-In Contractor Interactions

C.4.16.1 Transition/Phase-In Period

C.4.16.2 Transition/Phase-In Plan

C.4.16.3 Transition/Phase-In Period Access

C.4.16.4 Transition/Phase-In Schedule

C.4.16.5 Contractor Operations

C.4.16.6 Government Property

C.4.16.7 Transfer of Government-Furnished Property

C.4.16.8 Joint Inventory and Transfer of Real Property

C.4.17 Future Transition/Phase-Out Requirements

C.4.17.1 Transition/Phase-Out Period

C.4.17.2 Transition/Phase-Out Plan

C.4.18 Deliverable Data

C.4.18.1 Report of Deliverables

C.4.18.2 Monthly Management Reports

STORAGE, MANAGEMENT, MAINTENANCE AND DISPOSAL OF SEIZED

AND BLOCKED REAL PROPERTY

C.1 GENERAL INFORMATION

The terms of the contract are designed to support (a) the seizure and forfeiture program for the Treasury Executive Office for Asset Forfeiture (TEOAF)1 and (b) blocked real property. The contract will support the United States (U.S.) Department of the Treasury (Treasury) and components within the Department of Homeland Security (DHS) that participate in the Treasury Forfeiture Fund (TFF), as well as the Office of Foreign Assets Control (OFAC) by providing services for the receipt, possession, custody, management and disposition of seized, blocked, or forfeited real property. The Contractor shall provide all services, materials, supplies, supervision, labor and equipment, except that specified herein as Government-furnished, to perform such functions.

C.1.1 BACKGROUND

C.1.1.1 TFF and TEOAF

The mission of the TFF is to affirmatively influence the consistent and strategic use of asset forfeiture by participating agencies to disrupt and dismantle criminal enterprises. The TFF is administered by TEOAF.

The continued high-impact performance of the TFF reflects the ongoing hard work of the TFF’s participating law enforcement agencies as well as TEOAF’s emphasis on major case initiatives, asset forfeiture program training, and a focused approach regarding a performance measure that gauges revenue from high-impact cases. It is TEOAF’s view that the greatest damage to criminal enterprise can be achieved through large forfeitures;

hence it has set a target level of seventy-five percent (75%) of its forfeitures to be high impact forfeitures.

The TFF was established in 1992 as the successor to what was then the Customs Forfeiture Fund. The TFF continues, in its capacity as a successful multi-departmental fund, representing the interests of law enforcement components of the Treasury and DHS.

It is the receipt account for the deposit of non-tax forfeitures made by various participating agencies.

Internal Revenue Service - Criminal Investigation Division (IRS-CI)

U.S. Immigration and Customs Enforcement (ICE)

U.S. Secret Service (USSS)

The creation of the TFF brought together all then-Treasury law enforcement agencies.

Although some bureaus were subsequently transferred to DHS by the Homeland Security Act of 2002 (Public Law No. 107-296), they remain participants of the TFF.

Effective law enforcement actions against criminal enterprises, from drug cartels to terrorist organizations, require depriving criminals of enabling assets and profits that support or stem from their existence. The TFF is funded by the forfeited assets of criminal enterprises.

The TFF is a “special receipt account” (i.e., a resource account that provides funding to

1 This program is the TFF.

participating law enforcement agencies to enhance their capabilities to conduct successful investigations and forfeitures).

TEOAF, through the provision of leadership, guidance and stewardship, works to maximize the impact of forfeitures performed by the participating agencies. As the administrator of the TFF, TEOAF performs the following functions:

Promotes the use of proceeds from asset forfeitures to fund programs and activities aimed at disruption and dismantling criminal infrastructures, in particular major case initiatives and activities enhancing forfeiture capabilities;

Manages TFF revenues to cover the costs of seizure and forfeiture;

Trains law enforcement personnel of the participating agencies in various aspects of asset forfeiture;

Promotes cooperation among Federal, State and local law enforcement agencies through funding of expenses including equitable sharing, as well as the development of task forces;

Promotes financial stability and vitality of the TFF;

Develops policies consistent with Federal law, and provides legal advice regarding the interpretation of such laws and policies;

Coordinates TFF policy among the participating agencies;

Through the precepts of risk management, identifies and initiates action to address program risks; and

TEOAF personnel serve as the designated Contracting Officer’s Representative (COR) for this and similar contracts dealing with seized or forfeited property.

TEOAF staff will review and provide comment on the Contractor’s risk management plans, procedures and investigations on behalf of the TFF.

C.1.1.2 OFAC

OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. OFAC acts under Presidential national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under U.S. jurisdiction. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope and involve close cooperation with allied governments.

C.1.1.3 Types of Forfeiture

There are three types of forfeiture available to the Government: (1) criminal forfeiture; (2) civil forfeiture; and (3) administrative forfeiture. Criminal and civil forfeitures require a ruling by a Federal judge, while administrative forfeitures can be effectuated outside of court system by an investigative seizing agency.

A criminal forfeiture action is directed against a wrongdoer who either used property in a criminal manner or obtained property as the result of committing a crime. A criminal forfeiture is imposed as part of the wrongdoer’s punishment following a conviction. If there is no conviction, there can be no criminal forfeiture. The case caption in such a forfeiture would read, for example, “United States v. John Doe.”

A civil forfeiture, on the other hand, is action directed against property itself. The case caption would read, for example, “United States v. 40 Acres of Real Property Located at 24 Locust Lane.” Known as an in rem proceeding, a civil forfeiture is a legal action directed solely against the property based on a legal finding that the property itself was used in an illegal manner. In rem proceedings may take place whether or not criminal charges are ever brought against a wrongdoer and whether or not, if charges are brought, there is a conviction.

Both types of judicial forfeitures (criminal and civil) are intended to confiscate property used or acquired in violation of the law. While the procedures involved in these two types of forfeiture actions are very different, since one involves deprivation of a person’s liberty and the other does not, the results are, in many respects, the same. Both civil and criminal forfeitures transfer rights, title and interest of forfeited property to the U.S. after any claims made by parties with a purported interest in the property are addressed in accordance with law.

Administrative proceedings are conducted by the seizing agency, and like criminal and civil forfeitures, are intended to confiscate property used or acquired in violation of the law.

They occur when a forfeiture is not contested and when the property value does not exceed $500,000. However, there are limitations on the use of administrative forfeiture even when a property owner does not contest forfeiture and the value of the property does not exceed $500,000. Most notably, real property of any value can never be forfeited administratively.

Forfeiture of any real property always requires a ruling by a Federal judge pursuant to a judicial procedure, whether criminal or civil in nature. .

C.1.1.4 Types of Custody

Property subject to civil forfeiture is generally taken into custody by an investigative agency pursuant to a seizure warrant, or a warrant of arrest in rem. In a criminal forfeiture action, property subject to forfeiture may be seized pursuant to a criminal seizure warrant, or upon entry of a preliminary order of forfeiture. There are four types of custody, but the Contractor shall be tasked under the contract to take custody from the investigative agency only for Types A, B and C.

a) Regular Custody: The Contractor shall take physical possession of real property, provide secure storage for real property, perform necessary maintenance on real property, control access to real property and dispose of real property as instructed by the Designated Agency Representative (DAR).

b) Administrative Custody: A seizure where custody is retained by the seizing agency, but the Contractor is required to perform services as directed by the DAR.

c) Custody Pending Inventory: When directed by the seizing agent, the Contractor will take custody of certain property without conducting an inventory until the seizing agency arranges for a joint inventory at a later date. This must be documented on the appropriate chain of custody form by the seizing agent.

d) Agency Custody: The seizing agency retains physical custody of real property.

The Contractor will not be tasked to provide custody under this type.

C.1.2 OBJECTIVE

The objective of this SOW is to describe the requirements of Treasury and DHS for nationwide services for the receipt, possession, custody, management and disposition of seized, blocked, or forfeited Residential and commercial real estate property, operating businesses, and vacant land (real property) on behalf of TEOAF, the agencies participating in

TFF, or OFAC when the seizing or blocking agency determines that Contractor services for such property will be in the agency's best interest. Any and all such real property when the seizing or blocking agency determines that Contractor services for such property will be in the agency’s best interest shall hereinafter be referred to as “Real Property.” The primary mission of the contract is to support the law enforcement operations of the affected agencies.

The Contractor shall make every effort to comply with the provisions of the SOW in the most cost effective manner possible. For all work performed under cost reimbursable contract Line Item Numbers (CLINs), the Contractor shall seek to minimize the expenses associated with the management of Real Property and maximize the revenue received through the public sale of these Real Properties.

The Contractor shall provide the services in all fifty (50) states and the District of Columbia (DC), as well as all U.S. territories, and on an occasional basis at the express written direction of the Government, similar nationwide services for specifically identified Real Property that may be located internationally (i.e., outside the fifty (50) United States, DC, and all U.S.

territories).

While the Government has the unilateral right to manage and dispose of some real property itself, the Contractor shall provide the services set forth in this SOW for all TFF and OFAC real property workload requirements to the extent the seizing or blocking agency does not decide to exercise its unilateral right to manage and dispose of the real property itself. With regard to any such Real Property, fulfilling the requirements of the contract includes, but is not limited to:

Analyzing real property when directed by the seizing or blocking agency. This may include an analysis of real property prior to a seizure or blocking action for the purpose of evaluating the costs and benefits of the real property and may include, but is not limited to: property evaluation, appraisal, lien and title search and report, net equity and cost benefit analysis, photographing and/or videotaping, property inventory, monitoring and/or oversight of posted property and/or the identification of environmental concerns.

Receiving , taking custody of, securing, storing, inventorying, preserving, maintaining, managing, advertising, repairing, modifying, refurbishing, upgrading and/or disposing (e.g., remitting, retaining, transferring, donating, or selling) of seized, forfeited, and/or blocked real property.

Reviewing Appraised Value (APV).

Determining liens.

Clearing title.

Facilitating quick sales as deemed appropriate.

Determining Fair Market Value.

Capturing, recording, reporting and updating all seizure data and related costs regarding the above Real Property activities using the following DHS Customs and Border Protection (CBP)-owned and Contractor-operated automated systems: Seized Asset and Case Tracking System (SEACATS) and/or any other new consolidated automated system; and the Contractor’s Government-approved accounting system.

There is no Government-Furnished automated system specifically for tracking the same information for OFAC’s blocked property items. The Contractor shall maintain the same types of data and records for blocked property using a MicroSoft (MS) Excel spreadsheet or other Contracting Officer (CO) -approved software program.

Delivering and maintaining a document control system to assist in automating, controlling, referencing, filing and retrieving correspondence between the Contractor's office and the Government.

Identifying, recording, reporting and updating all seizure revenue, costs and related data pertaining to the above activities using the designated Government system of record for the contract, which requires all persons with access to such system to favorably pass a full field five (5) year employment background investigation and possess an appropriate level of Public Trust Certification from CBP.

Tracking both direct and indirect costs to the seizure or blocking action line item and developing and implementing the Contractor’s Government-approved system for allocation of all indirect costs based on the seizure or blocking action line items held in inventory during the billing period.

Meeting the risk management requirements in accordance with the Contractor’s CO-approved Risk Management Plan.

Implementing required tasks in a manner designed to maximize the quality of service and sale revenue, and minimize costs and Real Property deterioration.

Conducting internal and external audit(s) of a. through h. above, to include program operations and financial management.

C.1.3 MANAGEMENT AND ADMINISTRATION

The Contractor shall provide timely and responsive services and technical excellence and perform under the direction of the CO. The CO will designate specific technical representatives, henceforth designated as the Contracting Officer’s Representative (COR) at the TEOAF level and DAR at TFF participating agencies (customer agencies) level. As approved by the CO, customer agencies may delegate contract oversight and technical work approval authorities to specific DAR personnel. A listing of required submittals is provided in Attachment J.05 Reports and Deliverables List.

C.1.3.1 Organizational Chart

The Contractor shall submit an initial set of organization charts at the mid-point of the transition/phase-in period to the CO and COR. During the final work week of the transition/phase-in period, the Contractor shall submit to the CO and COR an updated chart depicting the detailed organization finalized for the performance of this SOW when the base period begins the next week. The chart shall contain the names, work addresses and telephone numbers of the supervisory and management individuals with authority to:

represent the Contractor before the Government in all matters arising under this SOW, resolve problems and respond to emergencies. The chart shall also identify an updated list of CO-approved key personnel responsible for performing the requirements contained in Section C.4. The Contractor shall keep the chart current, accurate and complete, and shall notify the CO and COR in writing within seven (7) business days prior to any personnel or organizational changes. Notwithstanding the foregoing, nothing contained in this subsection shall relieve the Contractor of the obligations contained in the Addition/Substitution of Key Personnel clause in Section G of the contract. The Contractor shall distribute an updated list of CO-approved key personnel to the COR and seizing agency liaisons within three (3) business days of receipt of each contract modification incorporating changes to the key personnel. (RDL 1.3-001)

C.1.3.2 Personnel Requirements

The Contractor shall furnish fully trained and qualified managerial, supervisory, technical, administrative, clerical and other individuals, sufficient in number and qualifications to fully support and accomplish all work.

C.1.3.2.1 Standards

Project personnel (which include the Contractor’s employees, subcontractors, and any other individuals performing work under the contract, and shall hereinafter be referred to as “Project Personnel”) must obtain and maintain in good standing all certifications and licenses applicable to the work and site location assigned to them, as required by the state and local governments. Required certifications and licenses include:

Business Licenses HVAC-R Certification Broker’s License Real Estate Agent License Appraiser’s License General Contractor’s License Electrical Contractor’s License Plumbing Contractor’s License Locksmith Licenses Pest Control Licenses

The Contractor shall maintain the certifications, licenses, renewals, and qualifications of all Project Personnel throughout each performance period to ensure that all Project Personnel are appropriately certified, licensed, trained, and qualified when performing any work under this SOW. No Project Personnel shall be assigned to a task to which the individual is no longer certified, licensed, trained, or qualified to perform. The Contractor shall verify the Project Personnel have the required certifications and licenses prior to performing any work under the contract for which such certification, licenses, training or qualifications are required and shall take reasonable steps necessary to ensure they are current at all times.

Project Personnel operating Government computers on a Government network shall be certified and re-certified on an annual basis under the Automated Security Training Program established in accordance with a CBP information technology security program related to the use of SEACATS.

C.1.3.2.2 Qualification Requirement Waiver Request

During contract administration, and under certain circumstances, the Government reserves the right to waive, in writing, specific qualification requirements for any given individual performing work under the SOW if issuing a waiver is determined to be in the best interest of the Government. The issuance of written waivers will not be a routine practice and will be individual and event specific. In each case, a waiver request shall be submitted by the Contractor to the CO, along with the résumé for the individual for whom the waiver is being requested, giving a description of and full justification for the proposed waiver. The waiver request package shall include a synopsis of recruitment efforts leading up to the request, including a complete list of the pool of candidates from which the subject individual was selected. The waiver request will be reviewed and approved by the CO; however, the CO may delegate the approval authority to the COR.

Regardless, only the CO, or the COR when the CO has delegated such authority in writing to the COR, may provide a written waiver of specific qualification requirements.

Any and all waivers must be in writing; verbal waivers are null and void. If the waiver is granted, the position description is not changed, but the individual person granted the waiver is authorized to work under that specific title with all the duties and benefits conferred upon it. Any training required by the waiver must be completed within sixty

(60) business days of the date of the waiver was issued. The waiver is not transferable to another labor category or individual.

C.1.3.2.3 Conduct of Project Personnel

The Government reserves the right to require the Contractor to reassign or remove from the contract any Project Personnel (regardless of his/her employer) deemed incompetent, careless, unsuitable, or otherwise objectionable, or whose continued use under the contract is deemed contrary to the best interests of the Government. Such removal of Project Personnel does not relieve the Contractor from the requirement to timely perform contract tasks in accordance with specified performance standards. The Contractor shall be responsible for the performance and conduct of Project Personnel at all times. The Project Personnel shall only conduct business covered by the contract during periods paid for by the Government, and shall not conduct any other business (commercial or personal) on Government owned, leased, seized, or blocked, or forfeited premises or use Government supplies, information and equipment for any purpose other than performance of the contract.

C.1.3.3 Training

The Contractor shall provide trained, experienced Project Personnel to perform the work required under the contract, and shall continuously monitor, manage and control the work performed by such individuals. The Contractor shall make its best effort to retain well-performing individuals who have gained work experience and performed well under the contract and to minimize turnover of individuals performing the contract.

The Contractor shall train Project Personnel and verify that all such individuals are able to satisfactorily perform their duties under the contract. The Contractor shall provide Project Personnel that fully meet the qualifications required under each labor category pursuant to this SOW, and shall ensure that the Project Personnel’s training remains current with industry standards so they remain fully qualified to perform the work they are performing under the contract. The Contractor shall bear the cost of ensuring that the Project Personnel meet the requirements under each labor category of the contract. The Government will not reimburse the Contractor for the cost of any basic qualifying training of Project Personnel.

Prior to commencing work under this SOW, each Project Personnel shall have received all training required for the functions to be performed, and shall possess a level of knowledge necessary for safety and a reasonable degree of efficiency. Project Personnel shall obtain and maintain all certifications, inspections and licenses necessary or appropriate to perform work contained in this SOW that is assigned to them. (See Section C.1.3.2.1 above.)

During the first twenty (20) business days of the transition/phase-in period, the Contractor shall develop and submit to the CO and COR an initial training roster and training program that demonstrates that all Project Personnel will be trained to at least the minimum standards required by the Government under the contract before or during the transition/phase-in period. (RDL 1.3-003) Upon request during subsequent performance periods, the Contractor shall furnish the COR with formal documentation of the training provided to Project Personnel, including testing tools for determining whether individual Project Personnel have achieved required competence levels.

C.1.3.4 Contract-Specific Training

In addition to job-specific or professional training, the Contractor shall ensure the Project Personnel performing work under the contract are trained on "contract-specific" issues such as Treasury ethics, standards of conduct, individual conflicts of interest, confidentiality requirements, security requirements, understanding of the function of reporting, and the importance of quality control and quality assurance. In addition, any project personnel that are managers shall be educated in the terms and conditions of the contract. Except where specifically approved by the COR, the cost of training Project Personnel shall not be reimbursable by the Government.

C.1.3.5 Plans and Programs

C.1.3.5.1 Contractor’s Management Plan

The Contractor shall develop and submit to the CO an updated version of the Management Plan submitted with its proposal. The updated Management Plan shall be submitted to the CO for concurrence no later than twenty (20) business days after the start of the transition/phase-in period. (RDL 1.3-004) The Contractor shall perform the contract in accordance with the CO-approved Management Plan. The Contractor must obtain prior written approval by the CO for any changes to the Management Plan. The Management Plan shall include summaries of Standard Operating Procedures (SOP) for each management and functional area covered under the contract keyed to this SOW.

C.1.3.5.2 Contractor’s Subcontractor Management and Administration Plan

The Contractor shall develop and submit to the CO a complete Contractor’s Subcontractor Management and Administration Plan consistent with the applicable narrative summary previously submitted with its proposal. Such Subcontractor Management and Administration Plan shall be submitted to the CO for concurrence no later than twenty (20) business days after the start of the transition/phase-in period. This plan shall address in full the Contractor’s Subcontractor Management and Administration program. (RDL 1.3-005)

The Contractor’s Subcontractor Management and Administration Plan shall include, but not be limited to, a list of all then current or proposed subcontractors (at any tier) that are performing or anticipated to perform work under the contract; the Contractor’s process for ensuring competition in subcontracting; the Contractor’s mechanism for tracking and ensuring completeness and timeliness of subcontractor and vendor cost submissions; the Contractor’s internal cost data reviews and internal validation of cost data provided by subcontractors; the Contractor’s rejection and acceptance protocols for subcontractor and vendor invoices; the Contractor’s pre-approval mechanisms for subcontractors incurring non-recurring or unique contract costs; and process to comply with FAR 52.244- 2 with Alternate I.

The Contractor shall perform the contract in accordance with the CO-approved Subcontractor Management and Administration Plan. The Contractor must obtain prior written approval by the CO for any changes to the overall Subcontractor Management and Administration Plan. The Contractor shall update the applicable sections and lists in the Subcontractor Management and Administration Plan whenever a major subcontractor2 is added and submit it to the CO and COR for approval not less than ten

(10) business days prior to the beginning of such subcontractor’s anticipated performance of any work under the contract.

In order to maintain up-to-date TEOAF records and for security review purposes, the Contractor shall submit a letter to the CO and COR of each new non-major subcontractor proposed by the Contractor during the period of performance of the contract. This letter of introduction for the proposed subcontractor shall include at least one (1) business reference, a description of capabilities and capacities, security system details and their proposed rate for the real property management related service for which they are being proposed, not less than ten (10) business days prior to the subcontractor’s proposed work under the contract.

C.1.3.5.3 Standard Operating Procedures

The Contractor shall develop and submit to the CO complete SOPs for each management and functional area covered under the contract consistent with the applicable narrative summaries previously submitted with its proposal. Such SOPs shall be finalized upon review and comment by the CO. The complete SOPs (RDL 1.3-006) shall be submitted to the CO for concurrence no later than twenty (20) business days after the start of the transition/phase-in period. Each functional area SOP shall be identified by the applicable SOW paragraph. SOPs shall describe in detail the procedures for each area and cover such items as quality control, work assignments, approval authorities, workflow, functional relationships and any other information needed to ensure efficient and uniform performance. The Contractor shall perform the contract in accordance with the CO-approved SOPs. The Contractor must obtain prior approval by the CO, in writing, for any changes to such SOPs. The Contractor shall provide CO-approved SOP revisions to all Contractor staff and to customers within ten (10) business days of receipt of CO approval.

C.1.3.6 Contractor Interfaces

Other contractors may be performing services related to, but not under, the contract.

Examples include contractors who provide audit, quality assurance, information technology systems installation or repair, or transportation of seized or blocked general property from the Real Property location for the Government. The Government will facilitate initial contact between contractors performing work on behalf of the Government under other contracts and the Contractor performing work under the contract when coordination or contact between such parties is needed, but the Contractor shall provide all further required coordination with other contractors for any task specified in the contract that relates to or affects any other contracted work.

C.1.4 PERFORMANCE

C.1.4.1 Performance Standards

The Contractor shall ensure that all work performed under the contract meets the specifications as (a) set forth in the Performance Requirements Summary (PRS) provided in Attachment J.04 or (b) described herein.

2 For purposes of this paragraph, “major subcontractor” shall mean any subcontractor or consultant (at any tier) for which the estimated value of the subcontract or contractual agreement exceeds $100,000 over the total period of performance (including any options) of the contract.

C.1.4.2 Quality Assurance

The CO, COR, DARs, other Government personnel and contracted Quality Assurance Evaluators (QAEs) may perform inspections or other procedures to evaluate the Contractor’s compliance with the contract terms throughout any and all performance periods. Evaluation will be based on the Contractor’s compliance with the requirements as set forth herein or in the PRS (Attachment J.04). Typical procedures that the Government may use to determine quality include, but are not limited to, random sampling, planned sampling, incidental inspections, and investigating customer complaints.

C.1.4.2.1 Onsite Inspections by the Government

The COR is responsible for directing oversight inspections of the Contractor's Real Property management operations under the contract and its facilities (e.g., headquarters (HQ), maintenance shops, etc.) operated directly or through subcontractors for compliance with the SOW and the Contractor's own operational procedures and handbooks. The Contractor will be notified telephonically prior to the inspection. The notification will include the following information:

The names and title of the inspection official(s);

The Contractor, subcontractors and vendors facilities to be inspected; and

The date of the visit.

The Contractor shall ensure that all Government persons involved in conducting an evaluation inspection, or those claiming to be, present to the Contractor’s representative the following: (1) a Disposition Order signed by the CO, COR, or designated DAR of a participating seizing or blocking agency; and/or (2) valid picture identification. The Contractor shall ensure that all individuals involved with any such evaluation inspection sign-in on the appropriate access log for each facility visited.

The results of the oversight performance inspections will be provided by the CO to the Contractor within five (5) business days after completion of the oversight performance inspection.

C.1.4.2.2 Contract Discrepancy Reports (CDR)

The Government will record surveillance inspections and issue a CDR to the Contractor when the Contractor’s performance is unsatisfactory as defined by the PRS. The Contractor shall reply in writing to the COR and CO within ten (10) business days from the date the CDR was received, giving the reasons for the unsatisfactory performance, corrective action(s) taken and procedures to preclude recurrence. (RDL 1.4-001)

C.1.4.2.3 Participation in Government Quality Assurance

The Contractor shall participate in Government quality assurance programs and provide support to the Government’s quality assurance staff (e.g., data collection and inventories).

C.1.4.2.4 Government Inventory

The Chief Financial Officers (CFO) Act of 1990 requires the preparation of annual audited financial statements. Therefore, Treasury is mandated to conduct an annual reconciliation inventory of seized assets in the custody of the Contractor. The auditor selected and contracted for by the Treasury Office of Inspector General (OIG) will oversee the inventory process. However, both the actual paper files verification of real property inventory and the validation of such inventory shall be performed by the Contractor.

Oversight and random inspections will be performed by TEOAF, TFF participating agencies, Treasury OIG, OFAC and/or the independent auditor selected by the Treasury OIG. Their right to enter the Contractor, subcontractor, and vendor premises will be established by a letter from the CO. The letter will also notify the Contractor of the date(s) of the annual Real Property inventory(ies) and due date(s) of the documentation of the overall inventory reconciliation.

C.1.4.2.5 Property Review Meetings

The Contractor’s Project Manager shall meet monthly with the CO and the COR to review each property managed. (See Section G of the contract for full description of the role of the Project Manager.) These meetings will be held in the Washington, DC area. Real Property review meeting topics shall include, but are not limited to, review, and analyses of property conditions and management problems, title clearance issues, status of dispositions, etc. At these meetings, the Government and the Contractor will discuss potential or actual problems. The Contractor shall take appropriate actions to resolve outstanding issues. The Contractor shall take minutes during each meeting, and shall provide a copy to the COR and CO within two (2) business days of such a meeting.

(RDL 1.4-002)

C.1.4.2.6 Technical Issues/Performance Meetings

The Contractor’s Project Manager shall meet with the CO and the COR to review contract performance quarterly. These meetings will be held in the Washington, DC area.

Performance evaluation meeting topics shall include, but are not limited to, review and analyses of key performance indicators, analyses of process deficiencies, problem discussion and resolution and reinforcement of quality and timely performance of contract requirements. At these meetings, the Government and the Contractor will discuss the Contractor’s performance as viewed by the Government, using the PRS and this SOW as a guide, and potential or actual problems. The Contractor shall take appropriate actions to resolve outstanding issues. The Contractor shall take minutes during each performance evaluation meeting, and shall provide a copy to the COR and CO within two

(2) business days of such a meeting. (RDL 1.4-003)

C.1.4.2.7 Agency Interest

The Contractor’s Project Manager (or alternate) shall personally contact the CO or COR, by phone the next business day of events or occurrences or having learned of an event within the scope of the contract that negatively affect satisfactory performance of the contract. In addition, the Contractor shall follow up, via e-mail, with a detailed written report to the CO and COR within two (2) business days of the discovery of the events or occurrences. (RDL 1.4-005)

C.1.5 RISK MANAGEMENT

The Contractor shall successfully implement an effective Risk Management (RM) program to minimize or eliminate losses that can result from a lack of control over risk events (e.g., loss, damage and theft). The Government has defined RM, adverse incidents and adverse conditions in Attachment Number J.03. RM encompasses, but is not limited to, the areas of security and loss prevention, including the safety of individuals and the Contractor’s program of self inspection through a comprehensive quality control program. The Contractor shall ensure that all these elements are addressed in its RM Plan and administered through its RM program.

C.1.5.1 RM Plan

The Contractor shall develop and submit to the CO within twenty (20) business days after the start of the transition period for approval a complete RM Plan consistent with the narrative RM summary previously submitted with its proposal. The Contractor shall perform work under the contract in accordance with the CO-approved RM Plan. The Contractor shall address all comments received from the Government on the RM Plan when revising it (RDL 1.5-001) for distribution to its Project Personnel. The Contractor, thereafter, must obtain prior written approval by the CO for any changes to such RM Plan.

The RM Plan and proposed actions, processes and policies shall apply to the Contractor, Contractor staff, agents of the Contractor, subcontractors and subcontractor staff used for performance of work under the contract. The Contractor shall:

1) Describe the performance challenges that the Contractor expects to confront and the nature and magnitude of the risks that will arise out of those challenges;

2) Describe specific, contingent and critical events and alternative outcomes that could prevent satisfaction of the requirements and state the probability of their occurrence;

3) Describe specific, important decisions that the Contractor and the Government will have to make to fulfill the requirements of the contract; and

4) Include the Contractor’s updated Quality Control Program and Plan (see Section C.1.5.3 below), Project Personnel security clearance process (see Section C.1.6.1 below), Information Assurance Security Requirements Plan (see Section C.1.7 below) and Disaster Recovery and Continuity of Operations Plans (see Section C.1.5.5 below), including a data systems recovery plan, contingency data and communications operations plan, securing or movement of Government-furnished property after a disaster to sourcing replacement equipment and short-term labor plans, off-site storage of critical inventory plans and cost data back-up plans.

The Contractor shall provide a complete RM Plan to the CO and the COR no later than twenty (20) business days after the start of the transition/phase-in period, and then annually thereafter, for approval. The RM Plan is a living document that must be updated annually or more often as conditions change or as new threats are identified. The Contractor shall distribute any updated RM Plan that has been approved by the CO to all Project Personnel within five (5) business days of receipt of CO approval of the updated RM Plan. (See Section C.1.6 below for the Security Program and Plan requirements to be incorporated into the overall RM process under the contract.)

C.1.5.2 RM Report

On a quarterly basis, the Contractor shall prepare and distribute the RM Report to the CO and COR describing the status of the RM program. (RDL 1.5-002) The RM Report shall be distributed within five (5) business days of the end of each quarter. The report shall identify the type of risk, the assessment and the strategy for minimizing or eliminating the risk.

C.1.5.3 Quality Control Program

The Contractor is responsible for the quality of all products and services provided to the Government under the contract, to include those products and services provided by Contractor staff, agents of the Contractor, subcontractors or subcontractor staff (at any tier).

The Contractor shall re-perform work that does not meet contract requirements, unless otherwise directed by the COR. Re-performance of work shall not constitute an excusable cause to miss any timeliness standards or deadlines. The Contractor shall absorb the cost of any required rework, and such rework shall not be charged back to, or reimbursed by, the Government.

C.1.5.3.1 Quality Control Plan

The Contractor shall develop and implement a proactive Quality Control Plan (QCP) that describes the internal staffing, procedures and programs that the Contractor shall use to ensure that the services/products being provided meet the quality, quantity, timeliness, responsiveness, customer satisfaction and other requirements of the SOW and the PRS.

The Contractor shall develop and submit to the CO for approval a complete QCP consistent with the applicable narrative summary previously submitted with its proposal.

The Contractor shall submit such QCP to the CO and COR during the transition/phase-in period as an appendix to the updated RM Plan. Any subsequently proposed changes to the QCP shall be approved by the CO prior to their implementation. The CO will review any proposed changes and respond back to the Contractor with approval, rejection, and/or comments no later than five (5) business days after receipt. Once the CO has approved the QCP, the Contractor’s CO-approved QCP will be incorporated in full and made a part of the contract via modification.

The QCP shall include, but is not limited to, the following: (1) type of quality control (QC) inspections to be performed; (2) areas to be inspected; and (3) the methods to be used to identify deficiencies in the quality of services performed before the level of performance becomes unsatisfactory. (RDL 1.5-003) The QCP shall also describe how continuous quality improvement shall be attained, with an emphasis on deficiency prevention over deficiency detection. The QCP shall contain procedures to ensure that unsatisfactory performance is not repeated and shall be addressed and corrected in no more than seven (7) business days. (This shall include steps for implementing changes resulting from deficiencies reported in CDRs). Although not exhaustive, the QCP shall address and include the following areas designed to reduce or manage risk:

A process for preventing, identifying and resolving conflicts of interest and appearances of impropriety in the performance of this SOW, in accordance with the Standards of Ethical Conduct (5 United States Code (U.S.C.) Part 2635).

A description of the Contractor’s QC system. The system shall cover all services and specify work to be inspected on a scheduled or unscheduled basis, the proposed frequency of each type of inspection, the position(s) and qualifications for individuals performing the QC inspections, and the extent of their authority.

Assurance that the Contractor’s designated employee(s) or Project Personnel responsible for QC is/are directly accountable to the Contractor’s top management.

Procedures of written and verbal communication with the Government regarding performance of the contract.

At a minimum, specific surveillance procedures for each contract service identified in the SOW. These surveillance procedures shall identify who will perform the surveillance, the frequency, the method, listing of items under surveillance and corrective actions that will be taken to correct Contractor identified deficiencies.

A customer complaint system that solicits customer feedback, logs and validates all negative feedback (e.g., complaints), identifies how validated complaints were addressed and informs the customer of the corrections made. At a minimum, the customer complaint system shall contain procedures for the customer to file complaints with the Contractor, forms to be utilized by the customers, procedures for investigating the complaint and feedback to the customer and the Government on the results and actions taken on the complaint. The Contractor shall investigate all complaints and provide a written explanation of the results of the investigation and any resulting corrective action plan to the COR within ten (10) business days of each complaint. (RDL 1.5-004)

Maintain records of all Contractor QC inspections, both scheduled and unscheduled, inspection results, dates and details of corrective actions taken. The Contractor shall submit an electronic copy of the monthly QC inspections with the invoice for payment each month, along with a summary of defects observed and corrected. (RDL 1.5-005) This file, using software approved by the CO and COR, shall become the property of the Government. The complete library of QC inspection electronic files, organized by month and year, shall be made available to the COR upon request, but at least within fifteen (15) business days following completion of each period of performance (i.e., following completion of the transition/phase-in period, following completion of the base period, following completion of Option Period 1, etc.) and/or termination of the contract. Files shall be maintained by the Contractor throughout the period of performance of the contract, and shall be made available to the CO or designated representative(s).

The Contractor shall retain QC files for not less than one (1) year after completion or termination of the contract.

Provisions for performing an annual self-inspection of all services and activities performed under the contract utilizing the appropriate sections of the PRS as the benchmark of…