Atch 2 - Construction Inspection Services QASP 05122026 - FINAL.docx

Quality Assurance Surveillance Plan (QASP) 05/12/2026

Quality Assurance Surveillance Plan (QASP)

Construction Inspection Services 1 Vision

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 Introduction

This Quality Assurance Surveillance Plan (QASP) is pursuant to the requirements listed in the Performance Work Statement (PWS) entitled Construction Inspection Services. This plan sets forth the procedures and guidelines the U. S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing will use in ensuring the required performance standards or service levels are achieved by the Contractor.

1.1 Purpose

1.1.1 The purpose of the QASP is to describe the systematic methods used to monitor performance and to identify the required documentation and the resources to be employed. The QASP provides a means for evaluating whether the Contractor is meeting the performance standards/quality levels identified in the PWS and the Contractor's Quality Control Plan (QCP), and to ensure that the Government pays only for the level of services received.

1.1.2 This QASP defines the roles and responsibilities of all members of the Integrated Project Team (IPT), identifies the performance objectives, defines the methodologies used to monitor and evaluate the Contractor's performance, describes quality assurance documentation requirements, and describes the analysis of quality assurance monitoring results.

1.2 Performance Management Approach

1.2.1 The PWS structures the acquisition around "what service or quality level is required", as opposed to "how the Contractor should perform the work" (i.e., results, not compliance). This QASP will define the performance management approach taken by the Office of Multifamily Housing to monitor and manage the Contractor's performance to ensure the expected outcomes or performance objectives communicated in the PWS are achieved. Performance management rests on developing a capability to review and analyze information generated through performance assessment. The ability to make decisions based on the analysis of performance data is the cornerstone of performance management; this analysis yields information that indicates whether expected outcomes for the project are being achieved by the Contractor.

1.2.2 Performance management represents a significant shift from the more traditional Quality Assurance (QA) concepts in several ways. Performance management focuses on assessing whether outcomes are being achieved and to what extent. This approach migrates away from scrutiny of compliance with the processes and practices used to achieve the outcome. A performance-based approach enables the Contractor to play a large role in how the work is performed, as long as the proposed processes are within the stated constraints. The only exceptions to process reviews are those required by law (federal, state, and local) and compelling business situations, such as safety and health. A "results focus" provides the Contractor flexibility to continuously improve and innovate over the course of the contract as long as the critical outcomes expected are being achieved and/or the desired performance levels are being met.

1.3 Performance Management Strategy

1.3.1 The Contractor is responsible for the quality of all work performed. The Contractor measures that quality through the Contractor's own Quality Control (QC) program. QC is work output, not workers, and therefore includes all work performed under this contract regardless of whether the work is performed by Contractor employees or by subcontractors. The Contractor's QCP will set forth the staffing and procedures for self-inspecting the quality, timeliness, responsiveness, customer satisfaction, and other performance requirements in the PWS. The Contractor will develop and implement a performance management system with processes to assess and report its performance to the designated government representative. This QASP enables the Government to take advantage of the Contractor's QC program.

1.3.2 The Government representative(s) will monitor performance and review performance reports furnished by the Contractor to determine how the Contractor is performing against communicated performance objectives. The Contractor will be responsible for making required changes in processes and practices to ensure performance is managed effectively.

2 Roles and Responsibilities

The following personnel shall oversee and coordinate surveillance activities.

2.1 The Contracting Officer

The Contracting Officer (CO) is responsible for monitoring contract compliance, contract administration, and cost control and for resolving any differences between the observations documented by the Contracting Officers Representative (COR ) and the Contractor. The CO will designate one full-time COR as the government authority for performance management. The number of additional representatives serving as technical inspectors depends on the complexity of the services measured, as well as the Contractor's performance, and must be identified and designated by the CO.

2.2 The Contacting Officer Representative (COR)

The COR is designated in writing by the CO to act as his or her authorized representative to assist in administering a contract. COR limitations are contained in the written appointment letter. The COR is responsible for technical administration of the project and ensures proper government surveillance of the Contractor's performance. The COR is not empowered to make any contractual commitments or to authorize any contractual changes on the Government's behalf. Any changes that the Contractor deems may affect contract price, terms, or conditions, shall be referred to the CO for action. Government surveillance may occur under the inspection of services clause for any service relating to the contract.

2.3 The Subordinate Contacting Officer Representative (SCOR)

The SCOR is designated in writing by the CO to act as his or her authorized representative to assist in administering a contract. SCOR limitations are contained in the written appointment letter. The SCOR is responsible for technical administration of the project and ensures proper government surveillance of the Contractor's performance. The SCOR is not empowered to make any contractual commitments or to authorize any contractual changes on the Government's behalf. Any changes that the Contractor deems may affect contract price, terms, or conditions, shall be referred to the CO for action. The SCOR will have the responsibility for completing QA monitoring forms used to document the inspection and evaluation of the Contractor's work performance. Government surveillance may occur under the inspection of services clause for any service relating to the contract.

3 Identification of Required Performance Standards/Quality Levels

The required performance standards and/or quality levels are included in the PWS and in Appendix 1, "Surveillance Matrix". If the Contractor meets the required service or performance level, it will be paid the monthly amount agreed on in the contract.

The SCOR Deliverable Review Checklist shall serve as the primary inspection tool for evaluating compliance with PWS requirements and determining whether deliverables are considered deficiency free under the PRS standards.

A deliverable is considered deficiency free when all applicable checklist items are satisfactorily met, including completeness, accuracy, required documentation, and compliance with HUD guidance (MAP Guide, forms, and contract requirements).

4 Methodologies To Monitor Performance

4.1 Surveillance Techniques

In an effort to minimize the performance management burden, simplified surveillance methods shall be used by the Government to evaluate Contractor performance when appropriate. The primary methods of surveillance are:

· 100% Inspection of the Deliverables - each month by the SCOR

4.2 Customer Feedback

The Contractor is expected to establish and maintain professional communication between its employees and customers. The primary objective of this communication is customer satisfaction. Customer satisfaction is the most significant external indicator of the success and effectiveness of all services provided and can be measured through customer complaints.

Performance management drives the Contractor to be customer focused through initially and internally addressing customer complaints and investigating the issues and/or problems. The customer always has the option to communicate complaints to the CO and/or COR as opposed to the Contractor.

Customer complaints, to be considered valid, must set forth clearly and in writing the detailed nature of the complaint, must be signed, and must be forwarded to the COR. Customer feedback may also be obtained either from the results of formal customer satisfaction surveys or from random customer complaints.

4.3 Acceptable Quality Levels

The Acceptable Quality Levels (AQLs) included in Appendix 1, "Surveillance Matrix", for Contractor performance are structured to allow the Contractor to manage how the work is performed. For certain critical activities such as those involving Construction Inspection Services, the desired performance level is established at 100 percent. Other levels of performance are keyed to the relative importance of the task to the overall mission performance.

5 Quality Assurance Documentation

5.1 The Performance Management Feedback Loop

The performance management feedback loop begins with the communication of expected outcomes. Performance standards are expressed in the PWS and are assessed using the performance monitoring techniques.

5.2 Monitoring Forms

The Government's QA surveillance, accomplished by the SCOR, may be reported using the following monitoring forms. The forms, when completed, will document the Government's assessment of the Contractor's performance under the contract to ensure that the required results are being achieved. The COR will retain a copy of all completed QA surveillance forms.

6 Analysis of Quality Assurance Assessment

6.1 Determining Performance

The Government will use the monitoring methods cited to determine whether the performance standards/service levels/AQLs have been met. If the Contractor has not met the minimum requirements, it may be asked to develop a corrective action plan to show how and by what date it intends to bring performance up to the required levels.

6.2 Reviews and Resolution

6.2.1 The COR may require the Contractor's Project Manager, or a designated alternate, to discuss with the CO, PM and/or other Government IPT personnel as deemed necessary to review performance evaluation. The COR will define a frequency of in-depth reviews with the Contractor, including appropriate self-assessments by the Contractor; however, if the need arises, the Contractor will meet with the COR/SCOR as often as required or per the Contractor's request. The agenda of the reviews may include but are not limited to:

· Monthly performance assessment

· Data and trend analysis,

· Issues and concerns of both parties,

· Projected outlook for upcoming months and progress against expected trends, including a corrective action plan analysis,

· Recommendations for improved efficiency and/or effectiveness,

· Training by the Government

6.2.2 The CO and COR must coordinate and communicate with the Contractor to resolve issues and concerns regarding marginal or unacceptable performance.

6.2.3 The COR and Contractor should jointly formulate tactical and long-term courses of action. Decisions regarding changes to metrics, thresholds, or service levels should be clearly documented. Changes to service levels, procedures, and metrics will be incorporated as a contract modification at the discretion of the CO.

6.4 Surveillance Matrix

The Surveillance Matrix (Appendix 1) is the list of performance objectives and standards that must be performed by the Contractor. This matrix details the method of surveillance the SCOR will use to validate and inspect these performance elements. Inspection of each element will be documented in the SCOR file.

Performance objectives define the desired outcomes. Performance standards define the level of service required under the contract to successfully meet the performance objective. The inspection methodology defines how, when, and what will be assessed in measuring performance. The Government performs surveillance, using this QASP, to determine the quality of the Contractor's performance as it relates to the performance element standards. The Performance Requirement Summary (PRS) should be used to form the foundation of the COR/SCOR inspection checklist. In evaluating the quality of contractor’s performance, the following performance ratings may be used.

Performance Rating Criteria

Appendix 1 - Surveillance Matrix

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

Deliverables:

A007 HUD-95379, HUD Representative's Trip Report

a) 95% of HUD-95379 with photos and required documents received deficiency free within five (5) business days of inspection AQL: 5% deviation

What: HUD-95379 with photos and required documents How: upon receipt by SCOR or HUD MF Production Staff familiar with the deliverables within five (5) business days of inspection Frequency: every inspection Who: SCOR or HUD MF Production Staff familiar with the deliverables Incentive: 2% incentive of the invoice total amount if greater than 98% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection AND 3% disincentive of the invoice total amount if less than 95% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection Standard(s): a

5.2 Task 2: Pre-Construction Conference

Deliverables:

A007 HUD-95379, HUD Representative's Trip Report

a) 95% of HUD-95379 with no photos and required documents received deficiency free within five (5) business days of inspection AQL: 5% deviation

What: HUD-95379 with no photos and required documents How: upon receipt by SCOR or HUD MF Production Staff familiar with the deliverables within five (5) business days of inspection Frequency: every inspection Who: SCOR or HUD MF Production Staff familiar with the deliverables Incentive: 2% incentive of the invoice total amount if greater than 98% of HUD-95379 with no photos and required documents are received deficiency free within five (5) business days of inspection AND 3% disincentive of the invoice total amount if less than 95% of HUD-95379 with no photos and required documents are received within five (5) business days of inspection

5.3 Task 3: New Construction and Substantial Rehab

Deliverables:

A007 HUD-95379, HUD Representative's Trip Report

a) 95% of HUD-95379 with photos and required documents received deficiency free within five (5) business days of inspection AQL: 5% deviation

What: HUD-95379 with photos and required documents How: upon receipt by SCOR or HUD MF Production Staff familiar with the deliverables within five (5) business days of inspection Frequency: every inspection Who: SCOR or HUD MF Production Staff familiar with the deliverables Incentive: 2% incentive of the invoice total amount if greater than 98% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection AND 3% disincentive of the invoice total amount if less than 95% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection

5.4 Task 4: Section 223(f) Repairs

Deliverables:

A007 HUD-95379, HUD Representative's Trip Report

a) 95% of HUD-95379 with photos and required documents received deficiency free within five (5) business days of inspection AQL: 5% deviation

What: HUD-95379 with photos and required documents How: upon receipt by SCOR or HUD MF Production Staff familiar with the deliverables within five (5) business days of inspection Frequency: every inspection Who: SCOR or HUD MF Production Staff familiar with the deliverables Incentive: 2% incentive of the invoice total amount if greater than 98% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection AND 3% disincentive of the invoice total amount if less than 95% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection

5.5 Task 5: Guarantee/Warranty Inspections

Deliverables:

A007 HUD-95379, HUD Representative's Trip Report

a) 95% of HUD-95379 with photos and required documents received deficiency free within five (5) business days of inspection AQL: 5% deviation

What: HUD-95379 with photos and required documents How: upon receipt by SCOR or HUD MF Production Staff familiar with the deliverables within five (5) business days of inspection Frequency: every inspection Who: SCOR or HUD MF Production Staff familiar with the deliverables Incentive: 2% incentive of the invoice total amount if greater than 98% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection AND 3% disincentive of the invoice total amount if less than 95% of HUD-95379 with photos and required documents are received deficiency free within five (5) business days of inspection

QUALITY ASSURANCE PLAN CHECKLIST

The SCOR will evaluate the Contractor’s performance on all inspections to determine if the contract standards are met via the following:

1. Review of Trip Report (HUD-95379) generated and submitted to HUD by the Contractor in accordance with the attached checklist.

2. Review of forms and documents related to construction inspection tasks submitted by the Contractor as to proper completion per HUD Handbooks and regulations.

3. Review of Contractor’s performance in the field on a random basis by site visits to multifamily projects under construction or in warranty period. Site visits may be unannounced or may coincide with the scheduled monthly inspection.

4. The Contractor shall attend training sessions, as scheduled by the SCOR, during the term of this contract. Such training sessions will occur as the SCOR deems necessary for the purpose of addressing programmatic and technical issues.

When HUD observes defective performance during quality assurance reviews, the SCOR will request the Contractor’s Program Manager to respond to the deficiency. The Contractor shall respond to the deficiencies in writing within seven (7) business days of receipt. If the Contractor agrees with the deficiencies, the SCOR determines what corrective action is required. The Contractor shall comply with the requirements of the specific task. If the deficiency is disputed, the Contractor’s Program Manager shall attempt to resolve the issue with the SCOR. If a disagreement remains, it must be elevated to the Contract Officer for a decision. HUD reserves the right to take corrective actions under the terms and conditions of the contract relating to continually defective performance.

The regional HUD office may conduct performance meetings on a monthly basis with the COR/SCOR, Contract Officer and Contractor. The Contractor’s Program Manager shall attend these meetings. These meetings will normally be held virtually (i.e. Microsoft TEAMS, Zoom, etc.). If performance warrants, the COR/SCOR, and Contract Officer may determine to have meetings more or less frequently.

CHECKLIST

CONSTRUCTION INSPECTION SERVICES CONTRACT

SCOR DELIVERABLE REVIEW CHECKLIST

· Trip Report (HUD-95379) received within five (5) business days of inspection.

· Cover Sheet included for deliverable review.

· Provide informative photographs depicting construction status across the property and include concise captions. Provide a minimum of 10 photographs during site work and 15 photographs or more when building improvements begin.

· Scheduled and Actual Progress Dates are accurate.

· All parties in attendance noted on Trip Report.

· Contractor submitted a signed Contractor’s Requisition (HUD-92448) as HUD’s representative.

· Contractor reported whether the Contractor’s Requisition (HUD-92448) is reasonable as described in MAP Guide.

· Payment for on-site stored materials is documented per the requirements of the MAP Guide

· Contractor evaluated the Supervisory Architect’s services and administration.

· Contractor evaluated the Builder’s organization, operations and supervision.

· Contractor reported the number of workers and trades on-site during inspection,

· Contractor reported whether the completed construction is in conformance with the approved contract documents.

· Contractor conducted wage interviews, with a minimum of two (2) per inspection. If unable to conduct, reason noted in Trip Report.

· Contractor submitted copies of Change Orders (HUD-92437) provided at inspections and provided comments. All Change Orders are noted in Section 3 of the Trip Report with a brief description and status.

· Contractor submitted any signed Request for Approval of Advance of Escrow Funds (HUD-92464) as HUD’s representative.

· Contractor submitted Permission to Occupy (HUD-92485) signed as HUD’s representative along with AIA-G703 and local occupancy certificate. Permission to Occupy notes building number(s) and number of units.

· Contractor submitted final Construction Record.

· Copy of Supervisory Architect’s Trip Report included as attachment. If not provided, comment in report that identifies reason for not being included.

· Contactor has added any conditions of occupancy noted by Authority Having Jurisdiction

· Retainage Reduction shown on Draw Requests are in line with HUD approved Retainage Percentages.

· Construction Start Letter(s) submitted and includes the Builder’s Initial Letter and Permanent Start Letter. Letters include the initial start date (when Builder mobilized on-site) and the permanent start date (when improvements are permanently installed on-site).