Atch 1 - CIS PWS 2027-2032 FINAL 09032026.docx

Performance Work Statement (PWS) Construction Inspection Services 09/03/2026

Table of Contents

5.1 Task 1: Application Phase Inspections (Site Visits) - Section 223(f)……………………………22

Performance Work Statement (PWS) Construction Inspection Services Vision Statement

The purpose of the program is to conduct construction inspections and tasks related to construction inspections and assist HUD in the review of the construction/rehabilitation of the construction project. The specific objective of this contract is to support HUD's Agency Priority Goal to utilize housing as a platform for improving quality of life by: conducting construction inspections and performing construction inspection tasks (e.g. reviewing change orders, Contractor's Requisition (HUD-92448), construction schedules, requests for permission to occupy etc.), thereby assisting HUD in the review of the construction/rehabilitation of a project, to approve the release of loan funds, provide customer service and manage construction period risk.

1 General Information

1.1 Scope of Work

This requirement is for conducting onsite inspections of new construction and substantial rehabilitation of multifamily housing projects and performing various inspection tasks for the U.S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing. These services will provide HUD with the field/site data necessary to make informed decisions regarding the construction/rehabilitation phase of HUD multifamily mortgage insurance underwriting and capital advance programs.

1.2 Background

The U.S. Department of Housing and Urban Development (HUD) provides funding for, or insures the financing for construction of new Multifamily Housing (MFH) projects or the repair or rehabilitation of existing MF projects, as authorized by several sections of the Housing Act of 1959 (HA), the National Housing Act (NHA) and the National Affordable Housing Act (NAHA), as listed below:

Section 207(M) - Manufactured Home Parks Section 213 - Cooperatives Units Section 221(d)(3) and (4) - (MFTDP) Multifamily Rental Housing for Moderate-Income Families Section 202 - (CAV) Supportive Housing for the Elderly Program Section 811 - (IAC) Supportive Housing for Person with Disabilities Section 220 - Rental Housing for Urban Renewal and Concentrated Development Areas Section 223(f) - Purchase or Refinance Existing Multifamily Rental Housing

Section 231 - Rental Housing for the Elderly Section 241(a) - Supplemental Program for rehabilitation/additions to projects which have an insured FHA first mortgage

HUD is required to perform periodic property inspections of MFH projects throughout the entire construction and/or rehabilitation phase. Also, HUD is required to assist other parties (owner, sponsor, builder, supervisory architect, lender, etc.) in utilizing HUD forms and procedures relative to the construction phase of MFH project development.

1.3 Constraints

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

Contractors must maintain updated knowledge of policy, handbooks, guides, forms, CFR, to include:

Multifamily Accelerated Processing (MAP) Guide, revised March 24, 2021 Applicable forms are as follows:

AIA-B108 - Owner-Architect Agreement AIA-G710 - Architect's Supplemental Instructions (ASIs) AIA-G711 - Architect's Field Report HUD-2328 - Contractor's and/or Mortgagor's Cost Breakdown - Schedules of Values HUD-5372 - Construction Progress Schedule HUD-92485 - Permission to Occupy Project Mortgages HUD-11 - Record of Employee Interview HUD-92437 - Request for Construction Changes (Change Order Form) HUD-92448 - Builder's Requisition HUD-92464 - Request for Approval of Advance of Escrow Funds HUD-95379 - HUD Representative's Trip Report HUD-92013 - Application for Multifamily Housing Project website for HUD forms: http://hud.gov/hudclips

1.4 Non-Personal Services

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

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

1.5 Period of Performance

The period of performance shall be five years as follows: Base Year, Option Year One, Option Year Two, Option Year Three and Option Year Four.

1.6 Place of Performance

The services to be performed under this contract must be performed at the construction sites located in the following regions.

Northeast Region:

Which includes the following 13 states: New York, Pennsylvania, New Jersey, Rhode Island, Maryland, Connecticut, Massachusetts, Virginia, West Virginia, New Hampshire, Vermont, Delaware, Maine and Washington D.C.

Southeast Region:

Which includes the following 8 states: Georgia, Kentucky, Tennessee, North Carolina, South Carolina, Florida, Mississippi, Alabama, and the Commonwealth of Puerto Rico.

Midwest Region:

Which includes the following 6 states: Illinois, Michigan, Ohio, Indiana, Wisconsin, and Minnesota.

Southwest Region:

Which includes the following 9 states: Texas, New Mexico, Oklahoma, Louisiana, Arkansas, Missouri, Iowa, Nebraska, and Kansas.

West Region:

Which includes the following 14 states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming.

1.7 Hours of Operation

The Contractor is responsible for providing services between the hours of 7:00am - 6:00pm per time zone where the property is located, Monday thru Friday except for federal holidays or when the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. The Government reserves the right to change the hours of operation or restrict contractor access. Government agencies will not be available during scheduled holidays, inclement weather, weekends, and after duty hours.

The Contractor shall maintain an adequate workforce for the uninterrupted performance of all tasks defined within the contract when the Government facility is not closed for the above reasons. When hiring personnel, the Contractor shall keep in mind that the stability and continuity of the workforce is essential.

1.8 Special Qualifications

The Contractor is responsible for ensuring the Project Manager, alternate and inspectors are thoroughly familiar with all HUD programs and procedures as they apply to the duties of the HUD representative (also called HUD Inspector) in the MAP Guide and that they remain abreast of all changes to applicable handbooks, publications, and forms. As the HUD representative on the project site, the Contractor shall be responsible for assisting other parties (owner, sponsor, builder, supervisory architect, mortgage company/lender, etc.) in utilizing HUD forms and procedures related to the construction phase of multifamily project development.

The Project Manager and alternate shall possess three (3) years of recent experience in managing and overseeing employees who perform multifamily construction inspection activities, or a total of five (5) years of experience in overseeing employees performing a combination of multifamily and commercial construction inspections, with a minimum of one of those five years being multifamily projects. The Project Manager and alternate must also have at least three (3) years of satisfactory experience in performing construction inspections which demonstrate the knowledge and experience listed below for inspectors.

1.9 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5 and HUD Acquisition Regulation (HUDAR) clause 2452.237-79 – Post Award Conference.

1.10 Status Meetings

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

1.11 Contractor Travel

HUD will not reimburse the Contractor for travel for construction inspection services. The Contractor must provide all necessary travel in the performance of this PWS.

1.12 Transition Period

The Contractor recognizes that the services under this PWS are vital to the Government and must be continued without interruption. Upon contract expiration of the incumbent’s contract, a successor; another Contractor (or the Government) may continue these services. The incumbent contractor shall visit agreed upon properties with the successor contractor as directed by the CO/COR/SCOR. The successor Contractor shall provide a Transition-In and a Transition-Out Plan. The Transition-In Plan shall be provided with the Contractor's Proposal. The Transition-Out Plan shall be provided 120 days after the contract award. The Contractor shall, upon the CO's written notice, furnish Transition-In and/or Transition-Out services as required. The Contractor shall provide sufficient experienced personnel during the Transition period to ensure that the services called for by this PWS are maintained at the required level of proficiency. The Contractor shall participate in transition meetings with the Government as required.

1.12.1 Transition-In

The Contractor shall, upon the Contracting Officers written notice, furnish transition-in services as required. As a successor, the Contractor shall have sufficient personnel available, at no additional cost to the Government, during the sixty (60) days (as needed to make the transition) transition-in period to ensure a smooth transition with the incumbent Contractor. The successor Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to a program is minimized. During the transition-in period, the successor Contractor shall visit preselected project sites in construction with the incumbent Contractor to become familiar with the requirements in order to commence full performance of services by the end of the contract transition-in period.

Note: Transition-In is not required on any project where the successor Contractor is the incumbent Contractor.

1.12.2 Transition-Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the incumbent Contractor shall have sufficient personnel available, at no additional cost to the Government, during the sixty (60) day (as needed to make the transition) transition-out period. The incumbent Contractor shall visit preselected project sites in construction with the successor Contractor to ensure a smooth transition with the successor Contractor during the transition-out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor contractor is achieved by the end of the new contract transition-in period.

Note: Transition-out is not required on any project where the incumbent Contractor is the successor Contractor.

1.13 During the Transition-In and Transition-Out Periods

The incumbent inspector shall ensure a smooth transition with the successor inspector prior to the completion of the contract. The incumbent inspector and successor inspector shall together visit preselected projects under construction as listed on the task orders for inspections, in order to introduce the successor inspector to the Owner, Supervisory Architect and General Contractor; become familiar with the stage of construction, progress of the work and construction schedule of the project; review any issues with the builders organization, operations and supervision, or the architects supervision or services; discuss any delays, disputes, claims or non-compliances and any adjustments to payment requests; identify the location of the posted Wage Decision and posters; and confirm meeting dates, including time and location. The incumbent shall aid the successor in the development of plans, procedures, and methods for the assumption of all on-going work and shall provide the HUD Inspectors plans, specifications and files to the successor in a timely manner as part of this transition.

2 Definitions and Acronyms

2.1 Definitions

Acceptable Quality Level (AQL) - Contractor’s performance level required by the Government.

This is also known as the Performance Standard.

Application - Exhibits that are submitted by sponsor/owner/mortgagee of record to a HUD Office to request issuance of a processing letter (Early Commencement, Early Start, or Firm Commitment).

Architect or Supervisory Architect - The architect providing services to the sponsor/owner/mortgagee under the terms of the AIA-B108, Owner-Architect Agreement.

Builder - The General Contractor hired by the sponsor/owner to construct the project under the terms of the construction contract and in accordance with contract documents. The term "builder" is used in this PWS to avoid confusion when the Contractor's role is discussed.

Builders Initial Start Letter - This letter, written on the Builder’s letterhead, provides the date of the initial construction start, it is used for recording and reporting purposes, and is the "start of construction" as used in connection with labor standards and prevailing wage requirements. Start of Construction is defined as the beginning of initial site clearance and preparation, provided these activities are pursued diligently and are followed, without appreciable delay, by other construction activities. This can be a separate letter or combined with the Builders Permanent Start Letter. Reference the MAP Guide. Note that the HUD Closing is the Notice-To-Proceed (NTP).

Builders Permanent Start Letter - This letter, written on the Builder’s letterhead, provides the date recorded as the start of permanent construction, it is used for the purpose of determining the earning of the inspection fee, and will correspond to the first day that permanent on-site building elements were put into place, such as footings and/or foundations, pilings, utility lines, etc. This can be a separate letter or combined with the Builders Initial Start Letter. Reference the MAP Guide. Note that the HUD Closing is the Notice-To-Proceed (NTP).

Business Day - Every official day of the week which are days between and including Monday to Friday. This does not include federal holidays and weekends.

Calendar Day - Any day of the week.

Certificate of Occupancy - a certificate allowing occupancy issued by a local Government building department for a structure or structures for which a building permit has been issued.

Code of Federal Regulations - is the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government.

Construction Contract - the construction contract applicable to the particular project for which HUD is providing mortgage insurance and which HUD requires (typically a contract between the builder and project owner or sponsor).

Construction Contract Administration - the Supervisory Architect's administration of the contract between the builder and project sponsor/owner in the construction of any MFH project. HUD construction inspection tasks, to be performed by the Contractor as HUD's Representative, are defined in this contract.

Construction Inspection Services - monitoring the construction and performing construction inspection tasks and related functions for the purpose of protecting the Department's interest.

Construction Analyst - (HUD CA) the HUD employee in the Office of Multifamily Housing (MFH) Programs who is responsible for the proper performance of all functions relating to MFH construction administration and inspections in order to manage HUD’s construction risk. The Construction Analyst keeps informed of the general progress of the work on all projects during the construction stage and is familiar with any problems involved. The HUD CA is typically also a designated SCOR and is appointed in writing by the Government.

Construction Period - stated period of time during which a property is undergoing construction or substantial rehabilitation. This period typically extends from the issuance of a Notice to Proceed from the owner to the issuance of a certification of completion.

Contract Administration - the monitoring of the performance of the Contractor by the COR/SCOR and Contracting Officer relative to the tasks performed under this contract.

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

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

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

Days - calendar days, unless otherwise specified as business days.

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

Deliverable - Items that are required under the Contract and provided either physically or electronically by the Contractor to HUD.

Fair Housing Accessibility Guidelines (FHAG) - Technical guidance on how to comply with the specific accessibility requirements of the Fair Housing Amendments Act of 1988.

Federal Acquisition Regulation (FAR) - is the principal set of rules in the Federal Acquisition Regulation governing the acquisition process by which the government purchases (acquires) goods and services.

FHAG - Fair Housing Accessibility Guidelines. Technical guidance on how to comply with the specific accessibility requirements of the Fair Housing Amendments Act of 1988.

Final Closing - the final completion of all HUD project development forms, procedures, terms, and conditions per HUD legal and programmatic requirements. This occurs after completion of project construction and cost certification.

Final Completion of the Work (Individual Project Completion) - the time when all work under the construction contract is 100% complete, except work items beyond the builder's control which are accepted as delayed items of completion. It is formalized as of the date the Contract Inspector signs the final Trip Report, HUD-95379, provided that the trip report is subsequently accepted by the COR/SCOR.

General Contractor – the builder hired by the sponsor/owner to construct the project under the terms of the construction contract and in accordance with contract documents. The term "builder" is used in this PWS to avoid confusion when the Contractor's role is discussed.

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

HUD - The U.S. Department of Housing and Urban Development. The terms "Department of Housing and Urban Development," "Department," "HUD," and "Government" shall be synonymous and may be used interchangeably in this contract.

HUD Capital Advance Program - A program whereby HUD provides direct funding for construction, acquisition, or rehabilitation of a housing project for elderly or disabled persons.

HUD Inspection Procedures - The MAP Guide. Required reporting via HUD-95379, HUD Representative Trip Report, is to be completed for each inspection per the MAP Guide. Form can be accessed at: http://hud.gov/hudclips

HUD-Insured Program - A program where HUD provides mortgage insurance to the mortgagee for construction, acquisition (with or without repairs), or rehabilitation of a housing project.

HUDAR - prescribes the Department's procurement policies and procedures under the FAR System.

Inherently Governmental Functions - Activities that require either the exercise of discretion in applying Government authority, or the making of value judgments in making decisions for the Government.

Initial Endorsement/Closing - The initial endorsement of a HUD project for loan insurance or the completion of all documents necessary for a capital advance, which normally occurs prior to the commencement of construction. The legal documents, loan forms, capital advance documents, construction contract, and other required instruments are signed at this meeting.

Item(s) of Delayed Completion - construction-related work items beyond the builder's control to complete at final completion of the work as determined by the COR/SCOR.

Latent Defect(s) - defective or non-conforming work item(s) not observed during construction and identified by the owner's architect and the Contractor at either the 9-month or 12-month warranty inspection.

Off Site Construction - defined as improvements to property immediately adjacent to the property that is secured by the insured loan and integral to the completion of the proposed project; (e.g., utilities, paving/access roads etc.)

Performance Requirements Summary (PRS) - A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met (and optionally, any maximum payment for meeting the acceptable quality level (AQL) and any deduction from payment for not meeting the AQL).

Performance Standard - The Contractor's performance level required by the Government. This is also known as the Acceptable Quality Level (AQL).

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

Pre-Closing Conference - The meeting HUD will conduct, if necessary, with the lender, owner/sponsor, builder, CI, accountants, and others to assist in reaching the project's final closing in a timely manner.

Pre-Construction Conference (PCC) - The meeting attended by the contractor: builder; builder's subcontractors (if possible); Supervisory Architect; owner/sponsor; consultants (if any); mortgage company (if applicable); and HUD MFH staff to discuss the construction contract documents and applicable HUD requirements. Required for every project and should precede the initial start of construction (if possible).

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

Program Manager (PM) - An individual designated by the Contracting Officer to assist in providing technical direction and monitoring performance under the contract.

Project - the land or leasehold and existing or proposed improvements described in an application for mortgage insurance.

Project Capital Needs Assessment (PCNA) - Document containing estimates of critical and non-critical repair costs and the initial and monthly deposits to the replacement reserve.

Quality Assurance (QA) - Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contract’s quality requirements.

Quality Assurance Surveillance Plan (QASP) - A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractor's performance in meeting critical performance standards identified in the contract.

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

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

Sponsor/Owner/Mortgagor - The individual or entity planning the project whose name appears on the Construction Contract and other applicable project documents.

Start(s) of Construction - "Initial Start of Construction" is defined as the beginning date of the initial site preparation. This date is used in connection with the Labor Standards and prevailing wage requirements when the construction contract work commences with initial site clearance or other preliminary site work for proposed construction projects. The "Start of Permanent Construction" is defined as the first day that permanent on-site building elements were put in place (footings, foundations, pilings, utility lines, etc., but not excavation, forms or trenching, including demolition of portions of the existing building for substantial rehabilitation projects). Builder documents "initial" and "permanent" construction start dates via appropriate correspondence to the Contractor.

Subcontractor - Any person, other than the General Contractor (Builder), who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a contract or a subcontract entered into in connection with such General Contractor, and any person who offers to furnish or furnishes general supplies to the General Contractor or a higher tier subcontractor. The Government does not have a contract with a subcontractor.

Subject Matter Expert (SME) - The Subject Matter Expert (SME) in Multifamily Housing Production supports the Contracting Officers Representative (COR) in technical and programmatic matters (not contract matters) associated with the administration of the inspection contract to help assure that the inspection services meet the MFH Program requirements and are provided accurately and in accordance with the government contract. The Subject Matter Expert (SME) is also referred to as the SCOR.

Subordinate Contracting Officers Representative (SCOR) - An employee of the U.S. Government appointed by the Contracting Officer to assist in providing technical direction and monitoring performance under the contract. This individual is also the SME in the MFH program area.

Temporary Certificate of Occupancy - A certificate issued by a local Government building department for a structure or structures for which a building permit has been issued (allows early occupancy and prior to issuance of Certificate of Occupancy).

UFAS - Uniform Federal Accessibility Standards - Presents uniform standards for the design, construction, and alteration of buildings so that persons with disabilities will have ready access to and use of them in accordance with the Architectural Barriers Act, 42 U.S.C. 4151-4157.

Work Week - Monday through Friday, unless specified otherwise.

2.2 Acronyms

ADA - American with Disabilities Act

AIA - American Institute of Architects AQL - Acceptable Quality Level ASI - Architect's Supplemental Instructions CDR - Contract Deliverable Requirement CFR - Code of Federal Regulations CI - Construction Inspector CIO or OCIO - Office of the Chief Information Officer of HUD CLIN - Contract Line Item Number CO - Contracting Officer COR - Contracting Officer’s Representative CPARS - Contractor Performance Assessment Reports System CR - Change Request CS – Contract Specialist CST – Central Standard Time (U.S.)

EAC - Estimate at Completion EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion FAR – Federal Acquisition Regulations FHA – Federal Housing Act FHAG - Fair Housing Accessibility Guidelines GAO – Government Accountability Office GFP - Government Furnished Property HUD - U.S. Department of Housing and Urban Development HUDAR - HUD Acquisition Regulation IG or OIG – Office of Inspector General IT - Information Technology MAP Guide - Multifamily Accelerated Processing Guide MFH – Multifamily Housing MST – Mountain Standard Time (U.S.)

OCPO - Office of the Chief Procurement Officer OHP - Overhead and Profit OIG - Office of Inspector General OMB - Office of Management and Budget PCC - Pre-Construction Conference PCNA - Project Capital Needs Assessment PD - Project Description PDF- Portable Document Format PM - Project Manager POC - Point of Contact PRS - Performance Requirement Summary PST - Pacific Standard Time (U.S.)

PTO – Permission to Occupy PWS- Performance Work Statement QA - Quality Assurance QASP - Quality Assurance Surveillance Plan QC - Quality Control QCP - Quality Control Plan SCOR - Subordinate Contracting Officer’s Representative SF - Standard Form SME - Subject Matter Expert (also known as SCOR) UFAS - Uniform Federal Accessibility Standards USC - United States Code 3 Government-Furnished Property and Services The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

Government services will not be provided.

3.2 Facilities

Workspace at the construction site for HUD personnel and the Contractor (as HUD's representative), will be provided by the Builder (General Contractor). The Contractor has the right of entry and free access to assigned construction sites and to inspect all work and materials, equipment and fixtures furnished, installed, or stored in and about the project at all normal working times during construction. The Contractor shall immediately notify the COR/SCOR if it is denied such right of entry and free access. The Contractor shall not attempt to resolve any dispute regarding entry and free access unless specifically instructed do so by the COR/SCOR.

3.3 Equipment

Government equipment will not be provided.

3.4 Materials and Information

After the Contractor has been assigned a project, the COR/SCOR (sometimes with assistance from the Lender) will provide to the Contractor copies of construction related documents which the Contractor needs to perform construction inspection tasks for the assigned HUD projects. Construction related documents forwarded to the Contractor are as follows for New Construction or Substantial Rehabilitation:

· "HUD Inspection Set" of the HUD-approved plans and specifications

· Construction contract between the builder and the owner/sponsor

· Supervisory Architect's Contract, AIA Document B108 with HUD Amendment

· Drawings, specifications, and contract pertaining to offsite improvements

· Escrow Agreement for Offsite Facilities

· Builder's Construction Schedule

· Escrow Agreement (if any other)

· Project Capital Needs Assessment (PCNA)

· Additional pertinent documents Section 223(f) Level 2 & 3 Related Documents. The COR/SCOR (sometimes with assistance from the Lender) shall provide the following documents to the Contractor as reference documents for performing the inspections of critical or non-critical required repairs:

· Firm Commitment, or Escrow Agreement (for Repair Escrow, Completion Assurance Escrow, and Relocation Escrow if applicable).

· List of required repairs (including the Project Capital Needs Assessment (PCNA))

· Specifications and drawings (if Architect involved and required by HUD)

· Schedules of Values

· Progress Schedule

· Schedule of Delayed or Interrupted Occupancy or Income

· Relocation Plan and Schedule (to be coordinated with Builders Construction Schedule)

· Contact Sheet

· Owner-Architect Agreement (when Architect required)

· Construction Contract (when General Contractor required)

· Builders Construction Schedule (to be coordinated with the Relocation Schedule)

· Relocation Consultant and Liaison Contracts (as applicable)

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

3.4.1 Projects to Be Inspected

Each Task Order will have a Work Order issued and updated as needed by the COR/SCOR, which will indicate the projects and number of inspections authorized. For each project requiring inspections, the COR/SCOR will provide further direction to the Contractor by email through a PD information sheet that indicates details such as the project name, type, size, location, type of construction, lender and development team contact information, and the estimated construction duration.

3.5 Quality Assurance (QA)

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

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

4.1 Facilities

The Contractor shall furnish all facilities required to perform the services identified within the PWS except the workspace at the construction site for HUD personnel and the Contractor (as HUD's representative), which will be provided by the Builder (General Contractor).

4.2 Equipment

The Contractor shall furnish all equipment required to perform the services identified within the PWS.

4.3 Materials

The Contractor shall furnish all materials required to perform the services identified within the PWS except the Contractor copies of construction related documents which the Contractor needs to perform construction inspection tasks for the assigned HUD projects.

4.4 Contractor Responsibilities

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

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

4.5 Contractor Personnel

See HUDAR clause 2452.237-70 – Key Personnel in the Key Personnel section of the contract.

The Contractor shall provide a Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR clause 2452.237-70, "Key Personnel."

The Project Manager or alternate shall have full authority to act on all contract matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirements and be in the position to receive assignments, guidance, and direction from the COR/SCOR, and CO per HUDAR 2452.237-73, "Conduct of Work and Technical Guidance" and shall be allocated enough hours to the requirement to ensure successful performance.

These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Project Manager or alternate shall be available between the hours of 7:00am to 6:00pm, per time zone where the project(s) is located, Monday through Friday, except for Federal Holidays or when the Government facility is closed for administrative reasons.

4.5.1 Contractor Personnel – Qualifications

The Contractor shall recruit, hire, train and supervise qualified employees. The Contracting Officer shall have the authority to restrict the assignment of any individual as an employee under the contract or any subcontracts that are identified as unqualified, or a potential threat to the health, safety, security, and general well-being, mission of the Department or its staff, or whom HUD may determine has any actual or potential conflict of interest.

The Contractor shall certify to the Contracting Officer that the inspectors meet the below stated minimum qualifications/experience with the submission of the technical proposal. An additional certification shall be provided seven (7) business days after hiring a new inspector;

but, in any event, prior to any inspector performing inspections. The Contractor shall not substitute inspectors without prior approval of the COR/SCOR.

The Contractor must submit resumes (3 page limit) and copies of any licenses, registrations, trainings, and certifications to support an inspector qualifications for award and when proposing additions of any new inspector to the contract. The Contractor shall provide sufficient time for the government to review and approve an inspector and any key personnel changes in order to prevent endangering performance of any inspection project.

The Project Manager, alternate, and all inspectors shall possess three (3) years of satisfactory construction inspection experience related to the specific inspection tasks required by this contract. The inspection experience for the inspectors must be recent (within the past six (6) years). The inspection experience for the Project Manager and alternate does not have to be within the last six (6) years; only the experience in managing and overseeing as indicated above.

Satisfactory experience is defined as three (3) years of recent multifamily construction activities or five (5) years of experience in a combination of multifamily, single family, and commercial construction inspections with a minimum of one of those five (5) years being multifamily. Specific projects where multifamily experience was obtained must be listed to include the project name, address, number of units, time on project, and inspection role along with references of who can confirm the experience. Inspection experience shall cover all activities and phases of a construction project, and not just a single activity or discipline. The experience shall demonstrate a record of performing acceptable construction inspections and related construction contract administration tasks as required by this contract. The experience shall clearly demonstrate the inspector's knowledge of and familiarity with construction, construction inspection, and construction administration. The experience shall also demonstrate knowledge of national building codes and standards, current standard construction methods and procedures, HUD regulations and MAP Guide requirements sufficient to identify compliance by the owner, builder, and the supervisory architect. The experience shall clearly demonstrate the inspector's knowledge of and familiarity with Federal Accessibility Standards such as the Fair Housing Act (FHA), Fair Housing Accessibility Guidelines (FHAG), Americans with Disability Act (ADA), and Uniform Federal Accessibility Standards (UFAS). The complexity of some projects may mandate that they be assigned to an inspector whose background indicates the ability to perform those inspections.

4.5.1.2 Assigned Inspector

When the Contractor has assigned an inspector to a project, that inspector shall continue to conduct all inspections at the property through final completion of construction phase. If it becomes necessary to substitute an inspector assigned to a project, the Contractor shall inform the COR/SCOR at least seven (7) business days prior to the scheduled inspection that another inspector from the approved list is to be assigned. A substitute must have the background requirements necessary for any substitution on complex projects as discussed above.

The contract inspector who performs the inspection must sign the HUD Trip Report, HUD-95379, in the block for "HUD Representative”. The Project Manager, who does not perform the inspection but is responsible for the quality control, will sign as the "Construction Manager”. This procedure will facilitate providing an adequate quality assurance review of the report.

When the Project Manager or alternate performs the role of inspector, the person who actually performs the inspection must sign as the “HUD Representative” on the HUD Trip Report, HUD 95379, in the block for "HUD Representative”. The party who does not perform the inspection will sign as the "Construction Manager”. This procedure will facilitate providing an adequate quality assurance review of the report.

Note: The SCOR or designee will only sign the 100% Final Trip Report as the HUD Construction Manager, only on the page where the HUD CM signature is required.

4.6 Identification of Contractor Employees

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

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

5 Specific Tasks The contractor shall provide construction inspection services to HUD with the field/site data necessary to make informed decisions regarding the construction phase of the MFH projects.

The specific tasks include:

5.1 Application Phase Inspections (Site Visits) – Section 223(f)

5.2 Pre-Construction Conference

5.3 New Construction and Substantial Rehab

5.4 Section 223(f) Repairs

5.5 Guarantee/Warranty Inspections

5.6 Administrative Tasks

5.1 Task 1: Application Phase Inspections (Site Visits) – Section 223(f)

Performance Standard

a) Standard: 95% of HUD-95379 with photos and required documents received deficiency free within five (5) business days of inspection AQL: 5% deviation Deliverables A007 HUD-95379, HUD Representative's Trip Report

5.1.1 Required Site Visit

The Contractor shall perform a site visit of projects under HUD consideration for funding under Section 223(f) only when directed by the SCOR, through the COR. Site Visits may be attended by the Owner, Architect, Builder, Property Manager, Consultants, and any other necessary parties.

5.1.2 Scheduling Site Visits

Site Visits shall be scheduled to occur within 2 weeks (14 calendar days) of notification by the SCOR, through the COR. The Contractor shall coordinate the site visit with the property owner listed on the Project Description provided by the SCOR. In coordinating the site visit, the Contractor shall request that the property manager notify residents several days in advance that their units might be entered into and inspected.

The Contractor has 5 calendar days from request receipt to confirm they can schedule the requested Site Visit within the 2 week period. If unable to schedule the Site Visit within the required 2 week period, the Contractor shall notify the SCOR (via email) within 6 calendar days of request receipt. The SCOR will coordinate with their Production Staff as to whether to continue with the Site Visit or cancel the request.

5.1.3. Site Visit Requirements

HUD will provide a list of repairs or items of concern requiring review by the contract inspector. The Contractor shall complete a Trip Report, HUD-95379, for each Site Visit, including photos to clearly document the status of requested repairs or items of concern on the HUD provided list are complete. Any repairs in non-compliance must have a photo. Each photo shall provide a description. To document accessibility compliance requirements, photos with measuring tape are especially helpful.

For each site visit, there should be a minimum of ten (10) photos to provide HUD with a comprehensive visual overview of the project.

5.2 Task 2: Pre-Construction Conference

Performance Standard

a) Standard: 95% of HUD-95379 (photos not required) and required documents received deficiency free within five (5) business days of the conference AQL: 5% deviation Deliverables A007 HUD-95379, HUD Representative's Trip Report

5.2.1 New Construction and Substantial Rehabilitation Pre-Construction Conference

When directed by the SCOR, the Contractor shall conduct the HUD Pre-Construction Conference before closing (or as per the SCOR instructions) and afterwards submit summary meeting notes and list of attendees on a HUD Representative's Trip Report, HUD-95379, (photos not required) to the SCOR within five (5) business days of the conference.

The Contractor shall initiate coordination of the Pre-Construction Conference with the SCOR, if needed, within ten (10) business days of receipt of the email transmitting the materials related to the assignment of projects (under construction, under warranty, or new/rehabilitation projects or repairs).

5.2.2 HUD 223(f) Pre-Construction Conference

When directed by the SCOR, the Contractor shall conduct the Pre-Construction Conference before closing (or as per the SCOR instructions). The Contractor shall schedule this conference with the Lender, proposing the date and time via email. The Lender will confirm attendance with the Owner, Supervisory Architect, Builder, Property Manager, and any other consultants as appropriate to the project. The SCOR will confirm the appropriate HUD staff including the Asset Management Account Executive and Production Underwriter (Note: Office of Davis Bacon Labor Standards (DBLS) staff are not included on 223(f) Pre-Construction Conference since DBLS requirements do not apply to this loan type). The Contractor or HUD staff will email all parties the agenda for the 223(f) Pre-Construction Conference. The agenda includes reviewing the contact sheet, required repairs (scope and costs), schedule of work, relocation plan and schedule if applicable, HUD inspections, escrow releases, changes to the work and repair period deadline. The Contractor will record these discussions on the HUD Representative Trip Report, HUD-95379, (photos not required) to the SCOR within five (5) business days of the conference.

5.3 Task 3: Construction Project Monitoring Tasks for New…