MI_MFH_Manager_2016.docx

- SCHEDULE OF SERVICES AND PRICES

B.1 BACKGROUND

B.1.1 The purpose of the Multi-Family Housing program is to provide adequate, affordable, decent, safe, and sanitary rental units for very low-, low-, and moderate-income households in rural areas. When the title transfers to the Agency, or the Agency determines property is abandoned Rural Development (RD) must manage the real estate owned (REO)/custodial project. The Agency’s objectives in managing and selling its inventory of REO properties include:

(1) Preserving affordable, decent, safe, and sanitary housing for tenants or potential tenants;

(2) Maintaining the value of the housing project;

(3) Protecting the Agency’s financial interests;

(4) Ensuring that the properties comply with state and local code requirements and applicable environmental regulations

(5) Administering its programs fairly and in accordance with both the letter and the spirit of all equal opportunity and fair housing legislation and applicable Executive Orders.

B.1.2 The authority for this agreement is provided under the regulation 7 CFR 3560.102.Project management responsibilities and requirements are detailed in HB-2-3560 MFH Asset Management Handbook. This and other references are available at the USDA RD Regulations and Guidance website. References Federal Acquisition Regulations (FAR) current through FAC 2005-83, effective November 1, 2015.

B.2 REQUIRED SERVICES

B.2.1 Rural Development (RD) in Michigan requires management services of its Multi-Family Housing (MFH) property(ies), per HB02-3560 MFH Asset Management Handbook. The Contractor shall furnish all necessary personnel, materials, and otherwise do all things necessary to perform the required services (as identified in Section C) at the fixed price offered below.

B.3 PERIOD OF PERFORMANCE

B.3.1 This is a multiyear agreement pursuant to 41 USC 254c and performance during each year of the agreement and any options exercised is contingent upon the appropriation of funds. The base performance period is for one year from the date of award. Performance may extend two optional fiscal years or until the property is sold, transferred or contract is terminated, whichever occurs first. As such, this agreement shall be terminated if funds are not available for the continuation of such agreement in any fiscal year covered by this agreement. Options shall be exercised in writing per contract clauses in Section I.

B.4 PRICES/COSTS

B.4.1 PUPM MANAGEMENT FEE. The purpose of the management fee, which is an allowable expense paid from the housing project’s general operating account, is to compensate the management agent for services provided to the project. This is calculated as a per-unit, per-month (PUPM) fee for revenue producing units occupied during a given month. Per Rural Development Handbook-2-3560, Attachment 3-F, the state maximum allowable per PUPM management fee for 2016 is $47.00. The established fees available on Attachment 3-F must be reflected in the proposed budget. For properties with sufficient income, the Agent will pay the management fee from the operating account, as directed by RD.

B.4.2 GROUNDS/MAINTENANCE FEE. Grounds-keeping and general maintenance costs will be paid as a monthly fixed price (sq. yd or sq ft.).

B.4.3 CUSTODIAL/SERVICE FEE. General cleaning, laundry and other tenant services costs will be paid as a monthly fixed price (project units).

B.4.4 SERVICES NORMALLY PAID FROM THE PROJECT INCOME/OPERATING ACCOUNT. The costs of management services related to REO properties will be paid out of income generated by the housing project being managed. If income from the housing project is inadequate to pay for management services, Agency resources may be used to pay for management fees. Reference Handbook 2-3560 Attachment 3-E, and HB-3-3560. Project utilities and services, real estate taxes, and insurance will be reimbursed as outlined in Section C.2.3(6) , and C.2.5(4)..

B.4.5 PRICE TEMPLATE EXAMPLE: Quotes will be requested for the base year (year 0), and 2 option years using the table below. Proposal will include fee quotes per area or per project.

Jul 1-Sep 30 2016

TOTAL AMOUNT

$8,256.00

USDA Rural Development Michigan 2016 MFH Management Agent BPA

MI MFH Manager 2016 Rev. 6/8/2016 11:17:00 AM Page 35 of 43

SECTION C - PERFORMANCE WORK STATEMENT (PWS)

C.1 SERVICES REQUIRED:

C.1.1 The terms and conditions herein are the contractual arrangement and constitute the bona fide contractual agreement and document between the Government (USDA) and the Agent, including consideration and remedies for noncompliance. Performance outside or exceeding this agreement and/or the scope of the contractual agreement, including technical direction incurring additional performance and costs, shall be at the Agent’s own risk. The Government shall not provide reimbursement or compensation for any unauthorized performance or procurement. Unauthorized procurements are those not authorized by the Contracting Officer.

C.2 Upon award of a contract, the Contractor shall perform services for the management of the property. The Contractor will supply the necessary labor, time, attention and effort of the Contractor’s principals and employees regularly engaged in the business of property management to properly discharge the obligations of the Contractor under this contract including supervision of maintenance and operation activities. DETAILED WORK REQUIREMENTS: Project management responsibilities and requirements are detailed in HB-2-3560 MFH Asset Management Handbook. This and other references are available at the USDA RD Regulations and Guidance website http://www.rurdev.usda.gov/Handbooks.html#hb35602.

C.2.1 OVERALL PERFORMANCE STANDARDS FOR ALL REQUIREMENTS. These standards apply to all required services. A Quality Assurance Surveillance Plan is included to describe how government personnel will evaluate and assess Agent performance. This program is established in accordance with FAR 52.246-4, Inspection of Services-Fixed Price (Aug 1996). The Agent shall conduct regular quality control reviews to self-monitor performance according to the accepted Management Plan.

(1) Responsiveness and Customer Service. Agent shall act proactively and cooperates with Government to minimize and manage issues.

(a) The Agent shall ensure that all contact with the public, tenants, and RD employees promote RD’s objectives under this PWS, and result in a high level of customer satisfaction. Customer service includes, but is not limited to: answering questions; resolving complaints; providing property information and status; crafting remedies and solutions, and providing copies of property related documents in a prompt, professional and courteous manner. The Agent shall respond to any general inquiries or requests for information about a property, and refer customers to RD when necessary.

(b) The Agent shall post and maintain regular office hours for the property during the standard work week (Monday through Friday), and include on-call emergency response within a specified time frame as discussed in Section 5.1.3.2 below.

(c) As requested by RD, the Agent shall participate in meetings, conference calls, working sessions and any other discussions relative to the property management process. This shall include, but shall not be limited to, answering questions, addressing processes and performance issues, and advising RD on other concerns.

(2) Business Practices. Agent conducts business practices in compliance with labor, employment, antitrust, consumer protection and environmental laws and Nondiscrimination Policies and practices that would be required of a Borrower/Owner. Agent trains and requires employees and subcontractors to uphold those same standards.

(3) Conscientious Management. Agent cooperates with RD to manage costs and functions in a conscientious manner; helps RD minimize waste and abuse of resources, including funds, people and materials.

C.2.2 PROPERTY ASSIGNMENT/TRANSITION.

(1) Properties will be assigned to the Agent via purchase order(s) issued by the CO. The Agent shall meet with the COR and the Former Agent and cooperate in good faith to develop a detailed protocol for transfer of ongoing contract activities in order to ensure a continuity of service to external customers. Within thirty (30) calendar days of task order acceptance the Agent shall complete an initial property inspection and review property records with the COR and any existing Management Agent. The Agent shall coordinate transition of property with the outgoing staff. The COR will direct the Agent regarding disposition of existing bank accounts. The Agent will submit concerns to RD to be addressed at the Post-Award conference.

(2) During the start-up period the Agent shall complete preparation activities, including but not limited to: attending post award conferences and meetings with RD staff, establishing its physical infrastructure; ensuring that a qualified and trained workforce of employees or Subcontractors is in place; obtaining all licenses, permits, bonds and qualifications, required to transact business in the geographic area; and implementing the information technology and support necessary to fully perform the requirements contained in this PWS.

(3) Review of Agent’s Plans - No later than thirty (30) calendar days after receipt of the Agent’s Quality Control and Property Maintenance Plans, the COR will review these plans and provide comments to the Agent for incorporation in each Plan. No later than thirty (30) calendar days after receipt of the Contingency Plan, the COR will notify the Agent whether RD accepts or rejects each Plan. The Agent shall incorporate RD comments into the Plans and issue revised Plans within ten (10) business days after receipt of the COR’s comments. The Agent shall satisfy the requirements of RD for acceptance of each Plan. These requirements include consistency with the Plans presented as part of the Agent’s proposal and RD’s regulatory and statutory authorities.

(4) Upon expiration or termination of a contract, services may be assigned to the new Offerors beginning the first day following expiration or task order termination. Prior to beginning a transition, the CO will provide the Agent the specific requirements for transition via a bi-lateral modification.

(5) Property Assignment/Transition Performance Standards

(a) Agent conducts adequate review of tenant, financial and physical conditions and executes plan revisions within 30 days of assignment

(b) Agent completes transition activities promptly and assists RD efforts.

C.2.3 FINANCIAL MANAGEMENT. Expenses for properties with insufficient income to maintain accounts will be requisitioned according to Section C.2.6, Purchasing and Subcontracting.

(1) Project Budget. per HB-2-3560 MFH Asset Management Handbook:

(a) Preparation. The Agent shall prepare an original project budget and monthly reports for submission to Rural Development for approval. The budget shall be prepared using the format and categories of Rural Development Form 3560-7, “Multiple Family Housing Project Budget”. Monthly reports shall be due in the Rural Development Servicing Office by the 20th day of the month immediately following the close of the respective reporting period. For each subsequent fiscal year the Agent shall prepare a new budget.

(b) Budget Categories. The budget shall be prepared using the format and categories of Rural Development Form 3560-7, “Multiple Family Housing Project Budget” per HB-2-3560 MFH Asset Management Handbook.

(2) Collection of Rents, Security Deposits and other Receipts. The Contractor will collect when due all rents, charges, and other amounts receivable in connection with the management and operation of the Project per HB-2-3560 MFH Asset Management Handbook

(3) Accounting System. The Agent must develop a systematic method to record the business transactions of the project that appropriately reflects the complexity of project operations. The Agent may be required to implement and use an accounting system as prescribed by Rural Development.

(4) The following accounts will be established as directed by the COR, to manage either REO or Custodial properties:

(a) General Operating Account. This account records all project income and disbursements. Excess project cash held in this account may be combined with other project funds described below in temporary (immediate call) interest bearing accounts when separate bookkeeping records are maintained by individual project accounts. This will usually be a checking account which must be maintained in a financial institution insured by the Federal Government.

(i) Deposits. All income and revenue from the housing project shall, upon receipt, immediately be deposited in the General Operating Account. This will include rent receipts, housing subsidy payments, laundry revenue, or any other project income. The Agent may also, at their discretion at any time, deposit therein other funds which are also to be used for purposes authorized by this section including transfer from the Reserve Account. Housing Assistance Payments received from the Department of Housing and Urban Development (HUD), MSHDA and local housing authorities as well as Rural Development rental assistance payments shall be deemed to be revenue derived from the operation of the project obligations.

(ii) Disbursement. Not later than the 15th of each month, out of the General Operating Account, the Agent shall pay or fund the actual, reasonable and necessary monthly project expenses. Authorized disbursements include real estate tax escrow, and reserve, as applicable. Any balance remaining in the General Operating Account, except as authorized above, may be retained or transferred to the Reserve Account.

(b) Real Estate Tax Escrow Account. (Formerly, the Tax and Insurance Account)

(i) Funds recorded in this account may be deposited in a separate interest bearing account at a federally insured financial institution, as directed by the COR. The Agent will notify the COR if insufficient funds are available to maintain this requirement, or if the cost of insurance may be considered exorbitant. The COR may require Agent to acquire Force Place Insurance.

(ii) If sufficient funds are available, each month after the payment of actual, reasonable, and necessary current operating and maintenance expenses, there shall be transferred from the General Operating Account to the Real Estate Tax Escrow Account an amount equal to one-twelfth of the total anticipated real estate tax for the year. Any interest earned shall be prorated based on the amount held in the escrow account at the time the interest is earned and it shall accrue and be part of the account. Funds in the Real Estate Tax Escrow Account shall be used only as authorized by this section and until so used, shall be held by the Agent in the trust for the Government.

(c) Reserve Account

(i) This account is not required for inventory properties. Funds should be deposited into the General Operating account, or other accounts as required by RD directives.

(ii) For custodial properties, funds recorded in this account may be held at a federally insured financial institution in a separate interest bearing supervised bank account or accounts requiring Rural Development countersignature. Required reserve installments shall be transferred to the Reserve Account as directed by the COR.

(d) Tenant Security Deposit Account. Upon receipt, all tenant security deposit funds collected shall be deposited in a separate account at a federally insured financial institution, and shall be handled according to any State or local laws governing tenant security deposits. All tenant security deposit funds collected shall be recorded in a bookkeeping account that is separate from the project bookkeeping accounts. Funds in the Tenant Security Deposit Account shall only be used for authorized purposes as intended and represented by the project management plan. They shall be held by the Agent in trust for the respective tenants until so used. Any amount in the Tenant Security Deposit Account which is retained by the Agent as a result of lease violations shall be transferred to the General Operating Account and treated as income of the housing. In no case will interest earned on security deposits accrue to the Agent. Any interest earned but not returned to the tenants will accrue to the project’s General Operating Account for disposition as outlined in the management plan.

(5) Taxes, Fees and Assessments. The Agent shall ensure all taxes, assessments, and government fees are paid promptly when due and payable from the Real Estate Tax Escrow account. If RD discontinues this account these items will be submitted to RD through an established purchase order system. The Agent shall also evaluate local property taxes to insure they bear a fair relationship to the project value and appeal, when appropriate. The annual financial statements must include a certification that the property’s real estate taxes have been paid.

(6) Financial Management Performance Standards

(a) The Agent uses an accounting system of adequate complexity to manage required financial accounts, payments, and disbursements.

(b) Finances are managed according to the established budget, and accounts are maintained according to RD direction. Required deposits and payments are timely.

(c) Financial reports are accurate, and submitted to RD by the 20th of the following month in the required format.

(d) Agent shall take necessary action to ensure assessments and tax bills are paid promptly

C.2.4 RENTALS AND LEASING

(1) Rentals. The Contractor will offer for rent and will rent the dwelling units in the Project per HB-2-3560 MFH Asset Management Handbook.

(2) Enforcement of Leases. The Agent will ensure full compliance by each tenant with the terms of the lease per HB-2-3560 MFH Asset Management Handbook.

(a) Immediately upon award of this agreement the Agent will ascertain that each of the current tenants is properly certified and has a current signed lease. Tenants will be certified and will execute leases as necessary or be asked to move from the complex if ineligible.

(b) The Agent will ensure full compliance by each tenant with the terms of the Lease. Voluntary compliance will be emphasized. The Agent, using the services of local social service agencies when available, will counsel tenants and make referrals to community agencies in cases of financial hardship or other circumstances deemed appropriate by the Agent.

(c) Involuntary termination of tenancies should be avoided to the maximum extent consistent with sound management of the Project. In the case of necessary termination, the Agent will follow the procedures of 7 CFR 3560.159 and will notify the Rural Development Area Office before beginning eviction proceedings on behalf of the Government.

(3) Collection of Rents, Security Deposits and other Receipts. The Contractor will collect when due all rents, charges, and other amounts receivable in connection with the management and operation of the Project per HB-2-3560 MFH Asset Management Handbook.

(4) Rentals And Leasing Performance Standards

(a) Agent follows management and marketing procedures in accordance with RD Instruction HB 2-3560. Marketing and outreach activities are within scope of the proposed budget.

(b) Agent effectively manages tenant screening, certification and leases.

(c) Agent provides diligent management of receivables.

C.2.5 MAINTENANCE, REPAIR AND SERVICES. Special attention will be given to preventive maintenance, and to the greatest extent feasible, the services of regular maintenance employees will be used.

(1) Yard Maintenance. The Agent shall oversee the yard maintenance service as follows: Maintain grounds to present a neat well-kept appearance. Trim shrubbery as necessary and maintain lawn surfaces to present a neat appearance, no higher than 4 inches, or per applicable local codes. Trim grass around foundations, fences, trees, etc., as necessary, and remove all clippings in yard. During winter months, keep all public walks clean of snow and ice as would be expected by a prudent homeowner. USDA Rural Development may inspect the work at any time.

(2) Facilities Maintenance/Caretaking. The Agent will maintain and oversee project maintenance in accordance with this Statement of Work and local ordinances, and keep the project in a condition acceptable to Rural Development at all times. This will include, but is not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, energy conservation measures and practices; and such other maintenance work as may be necessary, subject to any limitations imposed by Rural Development in addition to those continued herein. The costs of maintenance and repair will be paid from project income. Minor maintenance totaling less than $1,000 may be accomplished by Agent’s employees, if available. Aggregate requirements over $1,000 requires prior approval.

(3) Major Repairs shall be requested by the Asset Manager. The AM shall submit a purchase requisition for approval to the COR that includes at least two quotes from qualified companies. RD reserves the right to screen companies, or to provide a qualified list to the Agent.

(4) Utilities and Services. Utilities and Services are not part of the Site Services fee. The Agent will make arrangements for water, electricity, gas, fuel oil, sewage and trash disposal, and vermin extermination, as necessary. The Agent will take action to determine if there are unpaid utility charges for the period prior to RD’s acquisition. The Agent shall ensure that RD only pays those costs it is legally obligated to pay.

(a) Service Requests. The Agent will systematically receive and promptly investigate all service requests from tenants, take such action as may be justified, and keep records of the same. Emergency requests will be received and serviced on a twenty-four (24) hour basis. Response times will be established and monitored by the Agent. Serious complaints will be reported to Rural Development after investigation.

(b) Service subcontracts. Subject to Rural Development’s prior written approval, the Agent may subcontract with a qualified third party to do weekly cleaning, vacuuming and trash removal of common areas and collecting and accounting of laundry income, and for repairs beyond the regular capability of regular maintenance employees such as repair of air-conditioning systems, heating systems and locksmith services.

(5) Environmental Compliance. The Agent will advise Rural Development of any cost-effective energy conservation measures adaptable to the project, to ensure it is managed in compliance with applicable environmental laws and regulations, or measures required by agreement terms. The Agent will encourage their use and will assist Rural Development during any installation/initiation of these measures.

(6) Maintenance And Repair Performance Standards

(a) Agent implements effective preventive facilities and grounds maintenance programs to maintain safety and sanitation, minimize repair work, and maintain property value in accordance with RD goals. Maintenance management includes effective service request management.

(b) Agent initiates and/or maintains applicable energy conservation initiatives.

(c) Agent shall take necessary action to ensure availability of utilities and services, and to keep accounts current.

C.2.6 PURCHASING AND SUBCONTRACTING

(1) Purchase Request System. Agent shall establish a requisition/work order tracking system for maintenance and repairs ordered by the Agent. The Agents shall verify the accuracy and validity of all work orders before submission to RD for approval.

(2) Agent Purchase Authority Limit. If sufficient funds are available in the Operating Account, payment for maintenance services not performed by the Agent’s staff will be made by the Agent. The prior written approval of Rural Development will be required for any expenditure which exceeds One Thousand Dollars ($1000.00) in any one instance for labor, materials, or otherwise in connection with maintenance. This limitation is not applicable for recurring expenses (regular bills) within the limits of the operating budget or emergency repairs involving manifest danger to persons or property, or that are required to avoid suspension of any necessary service to the project. In the latter event, the Agent will inform Rural Development of the facts as soon as is feasible.

(3) If sufficient funds are not available in the Operating Account for payment of maintenance and services costs not authorized to be performed by the Agent’s staff, the following guidelines apply:

(a) The Agent must seek approval from Rural Development’s Multi-Family Housing (MFH) Division. Unless the PWS specifically authorizes oral communications, the Agent acknowledges that oral communications do not constitute approval, consent or authorization and if it proceeds without written or electronic approval, it accepts the risk of proceeding.

(b) The procurement request shall be routed to the assigned COR for approval recommendation and to obtain written or verbal approval from the CO, and authorization to proceed.

(c) Items funded by RD shall be included in budget reports.

(4) Purchasing And Subcontracting Performance Standards

(a) Agent maintains a purchase order information system adequate to track purchase requests, approvals, funding and job completion information.

(b) Agent works with RD to ensure that requests are necessary to support the project operating plan.

C.2.7 EMPLOYEE MANAGEMENT

(1) Staffing Plan. Agent will submit a plan which prescribes the number, qualifications, and duties of the personnel to be regularly employed in the direct management of the Project, including a Site Manager, if appropriate, maintenance, bookkeeping, clerical and other managerial employees. All such personnel will be employees of the Agent and not Rural Development, and will be hired, paid, supervised, and discharged by the Agent.

(2) Site employee salaries will be paid by the Agent directly from the project’s General Operating Account. This account will also reimburse the Agent for Workers Compensation, Social Security taxes, and other taxes normally paid by the employer dealing with wages. If there are insufficient funds in the Operating Account, these expenses may be paid by RD. Agent employees who work off-site or in the Agent’s office will be paid directly by the Agent out of the Management fee paid by the project.

(3) Key Personnel. No diversion or replacement of the personnel listed in this clause (Section I.10) shall be made by the Agent without written notice to the Contracting Officer.

(4) Employee Management Performance Standards

(a) Employees are properly trained and certified for the tasks assigned.

(b) Agent ensures applicable Labor Laws are fairly applied to employees and any subcontractors; employees are aware of the applicable laws; required posters, notices and reports are accomplished.

C.2.8 INFORMATION MANAGEMENT AND REPORTS: The Agent will furnish information and reports required by regulations, and as may be requested by Rural Development and/or the Office of Inspector General with respect to the project’s financial, physical, or operational condition. The Agent shall submit reports via the method directed by the COR.

(1) These reports include, but are not limited to the following:

(a) Form RD 3560-8 – Tenant Certification

(b) Form RD 3560-7 – Multiple Family Housing Project Budget (Monthly) by the 20th of the month

(c) Form RD 3560-29 – Notice of Payment Due Report, aka “Project Worksheet” (Monthly)

(d) Form RD 3560-7 – Multiple Family Housing Project Budget (Annually) by October 1st

(e) Form RD 3560-7 – “Year End Actual Income and Expense”, and Form RD 3560-10 – “Year End Balance Sheet” by April 1st

(f) The Contractor will complete and submit actual income and expense information by the 20th of the following month to Rural Development on Form RD 3560-7. The Contractor will complete any additional forms and data prescribed by Rural Development affecting the operation and maintenance of the project.

(2) Government Management Information Systems. Since REO properties are not tracked via the Management Interactive Network Connection (MINC) system, Agent shall submit reports to the CSC representative designated to enter the data into the system. The Agent shall maintain capability to provide reports to the Area Offices in the formats prescribed above, regardless of the submission method.

(3) Agent files. The Agent shall establish and maintain a physical property file that contains all documents and records that pertain to the management process until 3 years after expiration of the contract. Additionally, the Agent shall keep the individual physical files updated. Unless otherwise specified, the Agent shall deliver to RD complete, accurate, legible, and accessible copies of any requested physical files within five (5) days from receipt of a written request from the CO or COR.

(4) Information Safeguards. Neither the Agent nor any of its employees or affiliates will disclose or cause to be disseminated any information relating to the services hereunder to any person not entitled to receive it. Failure to safeguard any sensitive information that may come to the Agent or any person under his/her control in connection with work under this PWS, may subject the Agent or its agents or employees to criminal liability or termination for default.

(5) Information Requests

(a) The Agent shall be familiar with the Freedom of Information Act (FOIA) (Title 5 U.S.C. Section 552) and the Privacy Act (5 U.S.C. § 552a) and will assist RD in responding to requests for information. The Agent shall forward all requests for information that are subject to FOIA or the Privacy Act to their COR within two (2) business days. In the case of a FOIA request that involves costs to the requestor, the Agent shall provide a cost breakdown to the COR.

(b) The Agent shall notify the COR within two (2) business days following receipt of any request for information from an elected or public official and will, no later than two (2) business days of said request, provide written information to assist RD in preparing a response.

(6) Reports Performance Standards

(a) The Agent will complete and submit required monthly financial reports within the timeframes specified in the schedule, in the required format. Financial reports shall include expenses paid or reimbursed by RD.

(b) Agent exhibits responsiveness, submits accurate invoices and submits monthly quality control review report in a timely fashion.

C.3 QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

C.3.1 The QASP specifies the roles, responsibilities and methods of parties responsible for performance and evaluation of performance requirements listed in the PRS.

C.3.2 Roles and Responsibilities.

(1) Contracting Officer (CO): The CO has the sole authority to contractually bind the Government, sign awards, and change contract terms. The CO shall appoint qualified people to inspect and accept services under the contract as Quality Assurance Examiners (QAEs). The CO will resolve any disputes between the Agent and the QAE.

(2) Quality Assurance Examiner (QAE): The QAE is appointed by the CO and represents the CO during inspection and acceptance. The Area Office Contracting Officer’s Representative (COR) will be appointed to perform this function as specified in this agreement.

(3) The Contractor is required to monitor its own employees and may report to RD regarding its quality assurance efforts.

C.3.3 RD Surveillance Activities.

(1) Scheduled property and management inspections

(2) Audits and reviews of reports and financial records

(3) Interaction with Agent and Agent’s employees. RD employees shall not direct the Agent to perform activities not specified in the agreement. RD employees shall not direct Agent’s employees.

C.3.4 Providing Performance Feedback to the CO and Agent.

(1) Documentation of potential performance issues. Written documentation, including email, will be used to investigate potential issues.

(2) Servicing letters and notices. RD notice of issues requiring Agent’s attention and correction, if possible.

(3) Contract performance reporting as required by Federal Acquisition Regulations C.3.5 Remedies.

(1) Discussions with Agent

(2) Housing Program servicing letters and/or notices

(3) Negotiated payment decrease, if included in agreement

(4) Contract termination

(5) Government reporting of civil or criminal violation

(6) Claims and appeals C.3.6 PERFORMANCE REQUIREMENTS SUMMARY (PRS). The reference for performance-based contracting requirements is FAR Subpart 37.6. To ensure that PWS requirements and RD’s objectives are being met, the government will conduct regular quality assurance surveillance. The items identified in the table below are those that the government will evaluate each month to quantify Agents’ performance on these requirements. The table includes information about the frequency of surveillance and any minimum satisfactory rating that the Agent must meet. If no rating is specified, the minimum requirement is 100% compliance or no unresolved discrepancies.

PERFORMANCE REQUIREMENTS SUMMARY (PRS)

AGENT CAPABILITY

C.2.1 OVERALL PERFORMANCE STANDARDS

C.2.2 ROPERTY ASSIGNMENT/TRANSITION

C.2.3 FINANCIAL MANAGEMENT

Agent shall take necessary action to ensure assessments and tax bills are paid promptly

C.2.4 RENTALS AND LEASING

C.2.5 MAINTENANCE, REPAIR AND SERVICES

C.2.6 PURCHASING AND SUBCONTRACTING AUTHORITY

C.2.7 EMPLOYEE MANAGEMENT

C.2.8 INFORMATION MANAGEMENT AND REPORTS

SECTION E - INSPECTION AND ACCEPTANCE

E.1 INSPECTION AND ACCEPTANCE (AGAR 452.246-70) (FEB 1988)

E.1.1 The Contracting Officer or the Contracting Officer’s duly authorized representative will inspect and accept the supplies and/or services to be provided under this agreement. The Agent will make their place of business and all documentation related to this agreement available for inspection by USDA Rural Development employees during normal business hours.

E.1.2 Inspection and acceptance may be performed at each inventory property as well as at USDA Rural Development, 3001 Coolidge, Ste. 200, East Lansing, MI 48823, the USDA Rural Development Area Office and/or the Agent’s place of business.

E.2 In order to facilitate timely, economical and regular inspection and review by USDA Rural Development staff of the Agent’s employees and/or any and all of the Agent’s documentation related to this agreement, the Agent must be able to produce any and all employees working on any subsequent contract as well as any and all documentation related to this agreement within two business days’ notice at either USDA Rural Development Michigan’s headquarters in East Lansing, Michigan or the USDA Rural Development Area Office.

SECTION G - CONTRACT ADMINISTRATION DATA

G.1 CONTRACTING OFFICER (CO)

G.1.1 The CO designated for this requirement is:

Karen D. Cooper, Contract Program Manager Rural Development, U.S. Department of Agriculture 3001 Coolidge Road, Suite 200, East Lansing MI 48823 Phone: 517.324.5203 | Fax: 517.324.2178 | karend.cooper@mi.usda.gov G.1.2 CONTRACTING OFFICER'S AUTHORITY The CO is the only person authorized to approve changes to any of the requirements under this agreement, and notwithstanding any provision contained elsewhere in this agreement the said authority remains solely with the CO. In the event the Agent effects any change at the direction of any person other than the CO, the change will be considered to have been made without authority and no adjustment will be made in the contract price to cover any increase in charges incurred as a result thereof.

G.3 DESIGNATION OF CONTRACTING OFFICER’S REPRESENTATIVE(COR) AND/OR PROJECT LIAISON G.3.1 A COR will be designated for each project from the local Area Office.

G.3.2 COR duties and responsibilities include oversight of the administration of any Reserve Account, Review purchase requests as directed by the CO, on-site approvals of work and other duties assigned by the CO. The COR may not direct the Agent’s employees or subcontractors, or provide any direction unless specifically authorized. The “Designation of COR” letter shall be provided to the Agent.

G.4 SUBMISSION OF INVOICES

G.4.1 Invoices. The Contractor will submit invoices as required to Rural Development. The Monthly Management Fee will be based on a per occupied unit basis. It will be calculated as a per-unit, per-month (PUPM) fee for revenue producing units occupied during a given month. Invoices with supporting documentation shall be submitted along with Form RD 3560-29 (Notice of Payment due Report) no later than the 10th day of the succeeding month. Any pre-approved reimbursable expenses shall be itemized and invoiced separately with supporting documentation. “Proper” invoices will be processed for payment within 30 days of receipt and acceptance of the work by the assigned COR. Incomplete invoices will be returned to the Contractor for correction.

G.4.2 Invoices must contain the following information:

(1) Name and Address of the Agent

(2) Contract (Task Order) number, and project identification

(3) Agent’s invoice number and date

(4) Contact information for administrative questions

(5) Delivery and payment terms are NET 30 unless otherwise stated in the agreement G.4.3 Itemized services with dates, unit and extended prices. Invoice expense items will be listed according to these categories:

SECTION H - SPECIAL CONTRACT REQUIREMENTS

H.1 CONDUCT

H.1.1 During the course of this agreement and subsequent contract, the Agent will maintain the same high standards of honesty, integrity, impartiality, confidentiality of information, and conduct as Government employees are expected to maintain. The Agent will not engage in other employment which is incompatible with the duties of this agreement. The Agent will not, directly or indirectly, engage in financial transactions of any kind of business dealings relying on information obtained through the performance of this agreement.

H.1.2 CONFLICT OF INTEREST. The Agent will not have a direct or indirect financial or other interest that conflicts, or appears to conflict, with its responsibilities and duties under this agreement. The Agent shall not engage in, or permit, any conflict of interest. In addition to any other conflicts of interest prohibited under applicable law, each of the following situations will constitute a conflict of interest.

(1) Kick-backs, Rebates, Referral Fees, Pass Through. The Agent, a management official of the Agent, an immediate family member of a management official of the Agent, or an affiliated entity of the Agent may not directly or indirectly receive any form of payment, income, revenue, compensation, or anything else of value from any person or entity, other than RD or the Agent, for performance of the Agent’s responsibilities under this PWS. The Agent cannot purchase or obtain services from an affiliated entity of the Agent for which RD makes pass-through reimbursement under this PWS.

(2) Prohibition on Pre-Conveyance Preservation and Protection Work. The Field Service Manager or its agent is prohibited from performing both pre- and post-conveyance work on RD Single-Family Insured properties. In the event that a Field Service Manager or its agent performs pre-conveyance work, the fees associated with post-conveyance work are expressly unallowable and will not be paid. The Field Service Manager must obtain written certification on an annual basis from its subcontractors affirming that they do not perform pre-conveyance work on RD Single Family Insured properties.

H.2 RURAL DEVELOPMENT REQUIREMENTS

H.2.1 In performing its duties under this agreement, the Agent will comply with all relevant requirements of Rural Development. Rural Development requirements include preparation of forms and reports in the format of prescribed Rural Development forms.

(1) Compliance With Governmental Orders. The Agent will take such action as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Project, whether imposed by federal, state, county or municipal authority, subject, however, to any stated limitations with respect to repairs. The Agent will notify Rural Development in writing of all notices of such orders or other requirements, within seventy-two (72) hours from the time of their receipt.

(2) Nondiscrimination. In the performance of its obligations under this agreement, the Agent will comply with the provisions of any Federal, State or local law prohibiting discrimination in housing on the grounds of race, color, religion, sex, age, marital status, national origin, or physical or mental disability (applicant must have capacity to execute a legal contract) including Title VI of the Civil Rights Act of 1968, Executive Order 11246, and the Equal Credit Opportunity Act of 1974, as they relate to Rural Development.

(3) Quotes, Discounts, Rebates, Etc. With prior approval of Rural Development, the Agent will obtain contracts, materials, supplies, utilities, and services on the most advantageous terms to the Project, and is authorized to solicit bids, either formal or informal, for those items which can be obtained from more than one source, WITHIN THE LIMITS OF AGENT’S PURCHASE AUTHORITY. The Agent will secure and credit to the project all discounts, rebates or commissions obtainable with respect to purchases, service contracts, and all other transactions on the project’s behalf.

(4) This agreement may be terminated by the mutual consent of the Principal Parties as of the end of any calendar month, provided that at least thirty (30) days advance written notice thereof with reasons given is submitted to Rural Development. This provision may be superseded by actions of the U.S. District Court.

(5) Upon termination of this agreement or any subsequent contract, the Agent will submit to Rural Development, or another designated owner as specified by Rural Development, all project books and records and any financial statements required by Rural Development, along with any keys held by the Agent.

(6) Agent’s Indemnification. Notwithstanding any other provision of this agreement or any obligation of Agent hereunder, it is understood and agreed: (a) that Rural Development has assumed and will maintain its responsibility and obligation through the term of this agreement for the finances and the financial stability of the project; and (b) that the Agent shall have no obligation, responsibility or liability to fund authorized project costs, expenses, or accounts other than those funds generated by the project itself or provided to the project or to the Agent by Rural Development. Moreover, Rural Development hereby indemnifies the Agent and agrees to hold it harmless with respect to project costs, expenses, accounts, liabilities and obligations during the term of this agreement and further agrees to guarantee to the Agent the payment of its compensation under this agreement during the term of this agreement.

(a) The Agent shall be liable for any loss from or injury to any property resulting solely from the Agent’s negligence and/or failure to perform the services provided for herein.

(b) The Agent waives, releases, and discharges the Government from any and all claims, demands, and causes for action for damages to…