Attachment 0001 - Performance Work Statement.doc

86615621Q00002 Attachment 0001

PERFORMANCE WORK STATEMENT (PWS)

CONSTRUCTION INSPECTION SERVICES

07/15/2020 Version 1.0

PERFORMANCE WORK STATEMENT (PWS)

CONSTRUCTION INSPECTION SERVICES

Vision Statement. The vision of this requirement is to obtain Contractor support to provide the Office of Healthcare Programs with on-site inspections of new construction and substantial rehabilitation of residential healthcare facilities.

1. General Information

1.1. Introduction. The Department of Housing and Urban Development, Office of Healthcare Programs (OHP) requires services from a Contractor to conduct on-site inspections of new construction and substantial rehabilitation of residential healthcare facilities.

1.2 Background. The U.S. Department of Housing and Urban Development (HUD) insures financing of the construction of new Office of Healthcare Programs (OHP) projects or the repair or rehabilitation of existing OHP projects, as authorized by several sections of the Housing Act of 1959 (HA), National Housing Act (NHA) and National Affordable Housing Act (NAHA), as listed below:

· Section 232 Nursing Homes, Intermediate Care Facilities, Board and Care, and Assisted-Living Facilities (New Construction, and Substantial Rehabilitation)

· Section 232/223(a)(7) Refinance of Existing FHA Insured Mortgages

· Section 232/223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Nursing Homes and

· Assisted-Living Facilities

· Section 232/241a Supplemental Loans

HUD is required to perform periodic property inspections of Office of Healthcare Programs (OHP) projects throughout the entire construction and/or rehabilitation phase and during the warranty periods.

Also, HUD is required to assist other parties (owner, sponsor, builder, Supervisory Architect, mortgage company, etc.) in utilizing HUD forms and procedures relative to the construction phase of OHP project development.

Historically, HUD staff has performed all necessary construction monitoring and related services. Recently, due to limited staff and increased geographical areas, these functions have been performed by contract inspectors. In the last year HUD performed approximately 650 inspections in the United States.

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

The Contractor shall abide by all applicable regulations, publications, manuals, and policies, and procedures in the performance of this contract and any subsequent revisions, updates, and/or changes. These include but are not limited to the following:

· Publications (handbooks and regulations) that apply to services provided under this contract are listed below:

· 1344.1 REV-1 Federal Labor Standards Compliance in Housing and Community Development Program

· 4232.1 REV-1 Healthcare Mortgage Insurance Program Section 232 of the National Housing Act (or latest revision)

· 4910.1 REV-1 Minimum Property Standards (MPS) for Housing, 1994 Edition

· 24 CFR Part 100.205 Fair Housing Accessibility Guidelines

· FED-STD 795 Uniform Federal Accessibility Guidelines

· Forms, either HUDs or from some other non-federal entity source, are as follows:

· AIA-B108 Owner-Architect Agreement

· AIA-G710 Architects Supplemental Instructions (ASIs)

· AIA-G711 Architects Field Report

· HUD-5372 Construction Progress Schedule

· HUD-91071-ORCF Escrow Agreement for Offsite and/or Offsite Construction

· HUD-91124-ORCF Design Architects Certification

· HUD-92328-ORCF Contractors and /or Mortgagors Cost Breakdown - Schedule of Values

· HUD-92408-ORCF Amendment to Document AIA-B108

· HUD-92412-ORCF Working Capital Escrow Agreement

· HUD-92485-ORCF Permission to Occupy Project Mortgages

· HUD-11 Record of Employee Wage Interviews

· HUD-92437-ORCF Request for Construction Changes (Change Order Form)

· HUD-92442-ORCF Construction Contract

· HUD-92448-ORCF Contractors Requisition (AKA Builders Requisition)

· HUD-92464-ORCF Request for Approval of Advance of Escrow Funds

· HUD-95379-ORCF HUD Representative Trip Report

1.4 Description of Services. The Contractor shall provide the services of a Construction Inspector who, as HUDs Representative, will conduct required inspections and perform construction inspection tasks. The Contractors work products shall provide HUD with the data necessary to make informed decisions regarding the construction phase of the HUD Section 232 mortgage insurance underwriting program.

1.5 Non-Personal Services. The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services or give the perception of personal services. If the Contractor feels any action constitutes, or are perceived to constitute personal services, it shall be the Contractors responsibility to notify the Contracting Officer immediately. These services shall not be used to perform work of a policy, decision making or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance. The period of performance reads as follows:

· Base Year: March 1, 2021 – February 28, 2022 (Includes a 30-day transition in period)

· Option Year One: 1, 2022 – February 28, 2023

· Option Year Two: March 1, 2023 – February 29, 2024

· Option Year Three: March 1, 2024 – February 28, 2025

· Option Year Four: March 1, 2025 – February 28, 2026 (Includes a 30-day transition out period)

1.7 Place of Performance. The services to be performed shall be performed at the assigned construction job sites in the United States.

1.8 Hours of Operation. The Contractor shall be able to provide service from 8:00 AM to 4:30 PM, local time (where project is located), Monday through Friday, except for recognized Federal holidays. Case-by-case exceptions will be authorized in advance by the COR.

1.9 Special Qualifications. The Contractor is responsible for ensuring the contract manager, alternate contract manager 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 HUD handbooks, specifically those listed in Section 2.3.1 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 relative to the construction phase of the residential care facility project development. The Contractor/Project Manager shall possess three years of recent experience in managing and overseeing employees who perform construction inspection activities, or a total of five years of experience in overseeing employees performing a combination of residential care facility, and commercial construction inspections, with a minimum of one of those five years being residential care facilities. The contract manager and alternate must also have at least three years of satisfactory experience in performing construction inspections which demonstrate the knowledge and experience listed below for inspectors.

1.10 Post Award/Kickoff Conference. The Contractor shall attend any post award conference convened by the contracting activity office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within 10 business days after award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within 10 days after award. Post award conference may be held via teleconference.

1.11 Status Meetings. The Contracting Officer Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to review Contractor performance, requirement status, etc. At these meetings, the COR will apprise the Contractor of how the Government views the Contractors performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings are included in the fixed price contract line item (CLIN). Status Meeting may be held via teleconference.

1.12 Contractor Travel. HUD will not reimburse the Contractor for travel. Travel shall be included in the fixed price line item (per inspection). The Contractor shall provide all necessary travel in the performance of the PWS.

1.13 Transition In. The Contractor recognizes that the services under this PWS are vital to the Government and must be continued without interruption and that upon contract expiration, a successor; either the Government or another Contractor may continue them. In order to ensure a smooth transition of services at the beginning and end of contract performance, the Contractor shall provide a Transition-In and a Transition-Out Plan. The Transition-In Plan shall be provided with the Contractors proposal. The Transition-Out Plan shall be provided 120 business days before contract expiration.

The Contractor shall furnish Transition-In and/or Transition-Out Plan as required by the solicitation. 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.

The Contractor shall submit their Transition-In Plan with their proposal. The transition in plan shall include a description of the transition activities to be carried out and a timeline for the implementation and completion of all transition-in activities. As a successor, the Contractor shall have sufficient personnel on board to the Government, during the 30-day Transition-In period to ensure a smooth transition with the incumbent Contractor. The 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 Contractor shall become familiar with the requirements to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor. The Transition-In Plan shall be submitted with the Contractors proposal.

1.14 Transition Out. To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board, during the 30-day Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent inspector and successor inspector shall together visit preselected projects under construction in order to introduce the successor inspector to the Owner, Architect and 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 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.

The Draft Transition-Out Plan shall be submitted 120 days before contract expiration and the Final Transition-Out Plan shall be provided 60 days before contract expiration.

2. Definitions and Acronyms

2.1 Definitions

· Acceptable Quality Level (AQL) Contractors performance level required by the Government. This is also known as the Performance Standard.

· Application - Exhibits that are submitted by a sponsor or the 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 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 Contractors role is discussed.

· Business/Workdays - Every official workday of the week which are days between and including Monday to Friday. This does not include public 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 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 Architects administration of the contract between the builder and project sponsor/owner in the construction of any OHP project. HUD construction inspection tasks, to be performed by the Contractor as HUDs 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 Departments interest.

· Construction Manager (HUD CM) the HUD employee in the Office of Healthcare Programs who is responsible for the proper performance of all functions relating to inspection. The Construction Manager keeps informed of the general progress of the work on all projects during the construction stage and guarantee period and is familiar with any problems involved. The HUD CM is also a designated SCOR and is appointed in writing by the Government.

· Contract Administration - the monitoring of the performance of the Contractor by the COR, SCOR and CO 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 the authority to enter, 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 Officers Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer (CO) to perform contract administration activities regarding technical issues. This individual has authority to provide technical direction 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 authority to change the terms and conditions of the contract.

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

· Fair Housing Accessibility Guidelines (FHAG) - 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 owners/sponsors construction contract is 100 percent 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 Contractor signs the final HUD-95379-ORCF, HUD Representative Trip Report, provided that the trip report is subsequently accepted by the SCOR.

· Government Furnished Property (GFP) - Property in the possession of, 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 Inspection Procedures - Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1. Required reporting via the HUD-95379-ORCF, HUD Representative Trip Report, is to be completed for each inspection per instructions included on the form.

· 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.

· 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 which normally occurs prior to the commencement of construction. The legal documents, loan forms, 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 and identified by the Contractor at final completion of the work.

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

· ORCF Office of Residential Care Facilities. The division within the Office of Healthcare Programs which administers the Section 232, Residential Care Facilities program.

· Performance Assessment - a planned and systematic pattern of all government actions to provide confidence that adequate technical requirements are established, products and services conform to established technical requirements, and satisfactory performance is achieved.

· Pre-Closing Conference - the meeting HUD will conduct, if necessary, with the lender, owner/sponsor, builder, Contractor, accountants, and others to assist in reaching the projects final closing in a timely manner.

· Pre-Construction Conference (PCC) - the meeting attended by the Contractor; builder; builders subcontractors (if possible); Supervisory Architect; owner/sponsor; consultants (if any); mortgage company and HUD ORCF staff to discuss the construction contract documents and applicable HUD requirements. Required for every project and must precede the initial start of construction.

· 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 contracts quality requirements.

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

· Quality Control - All necessary measures taken by the Contractor to assure that the quality of a 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.

· Special Purpose Inspections (SPIs) - the type of physical inspection performed on existing OHP subsidized or unsubsidized projects to either determine the scope and cost of repairs needed to bring the project to a decent, safe, and sanitary condition in accordance with 24 CFR Part 5, Subpart G; to inspect major repair items; to inspect progress being made under Management Improvement and Operating (MIO) Plans; to investigate complaints HUD has received concerning the property’s physical condition; or any other inspection assigned to the inspector.

· 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 PDF letter to the Contractor.

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

· Subordinate Contracting Officers Representative (SCOR) - An employee of the U.S. Government appointed by the Contracting Officer (CO) to perform contract administration activities regarding technical issues. This individual has authority to provide technical direction 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 authority to change the terms and conditions of the contract.

· 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.

2.2 Acronyms

· AIA American Institute of Architects

· AST Alaska Standard Time (U.S.)

· AQL - Acceptable Quality Level

· ASI Architects Supplemental Instructions

· CDR Contract Deliverable Requirement

· CFR - Chief Information Security Officer

· CIO or OCIO Office of the Chief Procurement Officer of HUD

· CLIN- Contract Line Item Number

· CO - Contracting Officer

· COR Contracting Officer Representative

· CPARS Contractor Performance Assessment Reports System

· CPO - Office of the Chief Procurement Officer

· 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 Regulation

· FHA - Fair Housing Accessibility

· FHAG - Fair Housing Accessibility Guidelines

· FY - Fiscal Year

· GAO - U.S. Government Accountability Office

· HUD - U.S. Department of Housing and Urban Development

· HUDAR - HUD Acquisition Regulation

· HUD CM - HUD Construction Manager

· HUD/ISG - HUD Internet Services Group within the Telecom Processing Division

· HUDATWORK HUDs Intranet Website and related web pages

· HUD Web - HUDs Intranet Website and related web pages

· IAW - In Accordance With

· IG or OIG - Inspector General (Office of)

· IPT - Integrated Project Team

· IRS - Internal Revenue Service

· ISP - Information Strategy Plan

· ISSO - Information System Security Officer

· IT - Information Technology

· ITaaS - Information Technology as a Service

· IV&V - Independent Validation and Verification

· LAN - Local Area Network

· LO - Lot

· LOA - Level of Assurance

· MO - Month

· MST Mountain Standard Time (U.S.)

· NSF - Non-Sufficient Funds (also referred to as Insufficient Funds)

· OCI - Organizational Conflict of Interest

· OIG - Office of Inspector General

· OMB - Office of Management and Budget

· OHP - Office of Healthcare Programs

· ORCF - Office of Residential Care Facility

· PAR - Performance and Accountability Report

· PD - Project Description

· PDF - Portable Document Format

· PI - Private Information

· PII - Personal Identifiable Information

· PM - Project Manager

· POA&M - Plan of Action & Milestones

· POC- Point of Contact

· PRS - Performance Requirements Summary

· PST- Pacific Standard Time (U.S.)

· PWS - Performance Work Statement

· QA - Quality Assurance

· QASP - Quality Assurance Surveillance Plan

· QCP - Quality Control Plan

· SCOR - Subordinate Contracting Officers Representative

· SF- Standard Form

· SORN - System of Records Notification

· U.S.C. - United States Code

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

3.1 Government 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.

3.2 Facilities. Workspace at the construction site for HUD personnel and the Contractor (as HUDs Representative), will be provided by the Builder. 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 by the COR/SCOR to do so.

3.3 Equipment. No government equipment will be provided.

3.4 Materials. The Contractor shall furnish all materials required to perform the work under this contract.

3.4.1. Construction Related Documents. After the Contractor has been assigned a project, the SCOR will provide to the Contractor copies of construction related documents which the Contractor needs to perform construction inspection tasks for the assigned HUD OHP projects. Construction related documents forwarded to the Contractor, as determined by the COR/SCOR are as follows:

3.4.1.1 Project Description

3.4.1.2 HUD Inspection Set of the HUD-approved plans and specifications

3.4.1.3 Construction contract between the builder and the owner/sponsor

3.4.1.4 Supervisory Architects Contract, AIA Document B108 with HUD Amendment

3.4.1.5 Drawings, specifications, and contract pertaining to offsite improvements

3.4.1.6 Escrow Agreement for Offsite Facilities

3.4.1.7 Construction Progress Schedule

3.4.1.8 Escrow Agreement for Demolition

3.4.1.9 Project Capital Needs Assessment (PCNA)

3.4.1.10 Additional pertinent documents

3.4.1.11 Section 232/223(f) and 232/223(a)7 Related Documents. The SCOR shall provide the following documents to the Contractor, as applicable, as reference documents in performing the inspections of critical or non-critical repairs:

3.4.1.12 Project Description

3.4.1.13 Firm Commitment, or Escrow Agreement

3.4.1.14 List of required repairs (Project Capital Needs Assessment (PCNA))

3.4.1.15 Specifications and drawings (if provided by the owner)

3.4.1.16 Schedules of Values (required only for projects with repairs delayed after endorsement)

3.4.1.17 Progress Schedule (required only for projects with repairs delayed after endorsement)

3.4.1.18 Schedule of Delayed or Interrupted Occupancy or Income (required only for projects with repairs delayed until after endorsement)

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

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

4.1 Facilities. The Contractor shall furnish all facilities and shall ensure compliance with Federal Information Systems Security standards and policies.

4.2 Equipment. The Contractor shall furnish all necessary equipment, hardware, computers, desks, telephones, copiers, and other appropriate office equipment necessary to meet the requirements set forth in this PWS.

4.3 Material. The Contractor shall furnish all necessary training material, software and software licenses and other appropriate office materials necessary to meet the requirements set forth in this PWS.

4.4 Contractor Responsibilities. The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs), or persons identified during the Pre-Construction Conference. Names of authorized personnel shall be provided to the Contractor by the Government, in writing and updated as necessary throughout the contract period.

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

4.5 Contractor Personnel. The Contractor shall provide a 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 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 requirement and be in the position to actually receive assignment, 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 8:00am to 4:30pm, Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.5.1 Employees. 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 is 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.

4.5.2.1 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 contract manager and alternate contract manager shall be considered Key Personnel. The Contractor shall not substitute inspectors or Key Personnel without prior approval of the Contracting Officer.

4.5.2.2 The Contractor Manager, and all inspectors shall possess (3) three 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 contract manager and alternate manager does not have to be within the last 6 years; only the experience in managing and overseeing as indicated above. Satisfactory experience is defined as three years of recent residential care facility construction inspection activities or five years of experience in a combination of residential care facility, and commercial construction inspections, with a minimum of one of those five years being residential care facilities. Specific projects where residential care facility experience was obtained will be listed with references 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 handbook 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; Fair Housing Act, Fair Housing Accessibility Guidelines, Americans with Disability Act Title III & 504 (UFAS or Deeming Notice for use of ADA until UFAS is updated). The complexity of some projects may mandate that they be assigned to an inspector whose background indicates the ability to perform those inspections.

4.5.2.3 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 and SCOR / HUD CM 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.

4.5.2.4 The Contractor shall not employ or subcontract with any person who is a current or former civilian employee of the U.S. Government if the employment of that person would create a conflict of interest, an appearance of any conflict, or otherwise conflict with Department restrictions. The HUD Office of Counsel must approve employment of any person who is a current or former civilian employee of the U.S. Government.

4.5.2.5 When the Contract Manager or Alternate Contract Manager performs the role of inspector, the person who actually performs the inspection must sign the HUD Representative Trip Report Form HUD-95372-ORCF in the block for "HUD Representative. The Contract Inspectors Contract Manager, who does not perform the inspection but is responsible for the quality control, will sign as the "Contract Manager. This procedure will facilitate in providing an adequate quality assurance review of the report. Note that the SCOR / HUD CM will only sign the 100% Final Trip Report as the HUD Construction Manager, only on the page where the HUD CM signature is required by Section II, Production, Chapter 10 of HUD Handbook 4232.1 REV-1.

4.6 Identification of Contractor Employees. All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government or construction site 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 as a minimum, "Contractor after name.

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

4.7.1 Quality Control Plan. The Contractor shall develop, a QCP to be submitted with their proposal. The final QCP shall be reviewed, approved by the SCOR/COR, and submitted to the SCOR/COR within 5 business days after post award conference. The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractors methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractors methodology for resolving problems identified by the Government during reviews conducted in accordance with its QSAP.

The QCP shall also provide the Contractors methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system.

The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Governments QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5. Specific Tasks

5.1 General Overview. The Contractor shall provide construction contractor inspection services to provide HUD with the data necessary to make informed decision regarding the construction phase of the HUD Section 232 mortgage insurance underwriting program.

Performance Standards

a) Standard: The Contractor shall deliver CDRs that are acceptable to HUD.

AQL: Zero deviation from the standard

Deliverables A001 Construction Start Letters (CDR 1) A002 HUD Representative Trip Report, HUD-95379-ORCF (CDR 2) A003 Contractor’s Requisition, HUD-92448-ORCF (CDR 3) A004 Final Construction Record (CDR 4)

5.2 Detailed Task Description

5.2.1 Task 1: Construction Inspections – Project Monitoring

Performance Standards

a) Standard: The Contractor shall deliver CDR 1, CDR 2, and CDR 3 that are acceptable to HUD.

AQL: Zero deviation from the standard

b) Standard: The Contractor shall deliver CDR 1 within 5 business days of receipt from the Builder.

AQL: Zero deviation from the standard

c) Standard: The Contractor shall deliver CDR 2 within 5 business days of the inspection.

AQL: Zero deviation from the standard

d) Standard: The Contractor shall deliver CDR 3 within 5 business days of the inspection.

AQL: Zero deviation from the standard

Deliverables A001 Construction Start Letters (CDR 1) A002 HUD Representative Trip Report, HUD-95379-ORCF (CDR 2) A003 Contractor’s Requisition, HUD-92448-ORCF (CDR 3)

5.2.1.1 Pre-Construction Activities. The project Lender will be responsible for setting up and conducting the HUD Pre-construction meeting. SCOR will provide the Contractor with the Project Description prior to the HUD Pre-construction conference. The Contractor shall attend, the HUD Pre-construction conference, and afterwards submit summary meeting notes and list of attendees as well as the name and contact info of the inspector who will be assigned to the project on a HUD Representative Trip Report (HUD-95379-ORCF) (A002) (photos not required) to the SCOR within five (5) business days of the conference. SCOR will provide materials related to the assignment of projects (under construction, under warranty, or new/rehabilitation projects or repairs) to Contractor and Contractor shall confirm the initial review of the Contract document-plans and specifications, etc., prior to field inspections as part of the Pre-construction Conference Trip Report. The Contractor shall attend the Supervisory Architects/Builders Pre-construction meeting in the field, should one be held, and submit a HUD Representative Trip Report (HUD-95379-ORCF) (A002). This meeting will typically occur during the Contractors first trip to the project site.

5.2.1.2 Monthly construction inspections/site-visits/site-meetings for construction projects under Section 232. The Contractor shall visit the job-site and inspect the project at a frequency determined by OHP or other frequency as directed by the SCOR/COR to evaluate, observe, and report on construction progress and actual conditions on the job-site, construction activity and construction inspection tasks described at paragraph 5.1.1.3, below. The Contractor shall schedule the monthly inspection to coincide with the monthly submission of the HUD-92448-ORCF (A003).

The Contractor shall establish a day and time for their inspections at the HUD Preconstruction Conference with the Builder and Supervisory Architect and commit to a consistent day and time each month for the monthly inspection, for example, the fourth Thursday of each month at 1:00 PM.

5.2.1.3 Construction Start Letters (A001). The Contractor shall ensure that the builder documents the start dates of the "initial and "permanent construction via appropriate letters from the builder to the Contractor. The Contractor shall forward the construction start letter(s) received from the builder to the SCOR/ HUD CM within five (5) business days of receipt.

5.2.1.4 Construction Progress Inspections. See Section II, Production, Chapter 10 of Handbook 4232.1 REV-1 for detailed instructions. During the on-site inspection, the Contractor shall maintain a role as observer and provider of technical information as HUDs Representative, through interaction with sponsor/owner, owners, consultant, builder, builder’s representatives, Supervisory Architect, and lender. The Contractor shall report the results of all inspections, meetings, issues discussed, and conclusions reached on the HUD-95379-ORCF, HUD Representative Trip Report (A002). The Contractor shall:

5.2.1.4.1. Attend and participate in monthly job-site meetings with one inspection coinciding with the monthly review of the HUD-92448-ORCF (A003). The Contractor shall sign the requisition as HUDs representative, and provide copies to the SCOR. During this inspection the Contractor shall confirm actual progress of each building trade, evaluate the Supervisory Architect and builder’s administration, services and organization, and assist the builder with HUD requirements.

5.2.1.4.2. Observe and report on construction activities of on-site and off-site construction.

5.2.1.4.3. Observe and report on construction progress to evaluate the builders and Supervisory Architects performance. The Contractor shall report the number of workers and trades on site during the inspection.

5.2.1.4.4. Evaluate conformance with builder’s progress schedule.

5.2.1.4.5. Report whether the completed construction is in conformance with the approved contract documents

5.2.1.4.6. Report whether the materials stored on-site are properly stored and invoiced.

5.2.1.4.7. Report whether the Contractors Requisition for Payment is reasonable.

5.2.1.4.8. Discuss and report on:

· All issues included in the construction contract.

· Status of progress of work subject to pending or previously approved change orders. For multi-building projects report on the progress of each building, site work, off-site work, stored materials, and accessory buildings/features. For single building projects report on the progress of each floor or wing, site work, off-site work, stored materials, and accessory buildings/features.

· All non-compliance in the execution of the contracts, including the builders, Supervisory Architects, and construction contract.

· Labor and Equal Employment Opportunity compliance.

5.2.1.4.9. Apprise the major participants (builder, Supervisory Architect, owner, sponsor, consultant, and lender) of observed deficiencies and problem areas in the progress of the work and clarify HUD procedures applicable to the issues raised relative to the construction phase of project development. The Contractor shall refer issues which cannot be settled on site to the SCOR.

5.2.1.4.10. Discuss any findings, particularly any adverse findings, with the Supervisory Architect at the job site, or by phone if the Supervisory Architect is not present when the inspection is made, and report findings in the Trip Report.

5.2.1.4.11. After 80 percent project completion, the Contractor shall discuss the following with the jobsite participants:

· Definition of Final Completion of Work per the builder and owner’s construction contract.

· The owner (in all cases) and builder (when required) should meet with HUDs financial analyst, respectively, before 90 percent project completion to review cost certification submission requirements.

· HUD may conduct a pre final closing meeting. If a meeting is held, the Contractor shall explain and describe to all parties any observations that may delay or prevent HUD final closing.

5.2.1.4.12. Re-inspect or provide additional or more frequent inspections when directed by the SCOR/COR.

5.2.1.4.13. Meet at the project site or local HUD office with the COR/SCOR or designee to resolve project issues, receive updated training and assist and cooperate with any HUD official conducting an on-site review of the project construction and/or construction contract administration for the purpose of assessing performance or other areas of concern.

5.2.1.5 HUD-95379-ORCF (A002). The Contractor shall record the results of all inspections, meetings, issues discussed, and conclusions reached on the HUD-95379-ORCF, HUD Representative Trip Report (A002). The contractor shall follow the instructions contained in Section II, Production, Chapter 10 of Handbooks 4232.1 REV-1 and the HUD-95379-ORCF (A002) form instruction sheets. The HUD-95379-ORCF (A002) shall be a comprehensive report that includes all pertinent information the Contractor obtains while conducting an on-site inspection. The Contractor shall sign any submitted HUD-95379-ORCF (A002) in the "HUD Representative signature block. The Contractor shall submit the HUD-95379-ORCF (A002) to the SCOR/HUD CM within five (5) business days of each inspection.

For the purpose of completing the blocks at the top of the HUD-95379-ORCF (A002), "Scheduled Progress shall be according to the approved HUD- 5372 Construction Progress Schedule, and shall be measured from the date of Initial Endorsement/Closing and expressed as a percentage as reflected on the builders progress schedule. Actual Progress shall be calculated based upon actual construction completed by all trades working on the project and expressed in terms of percent complete. If an extension to the completion date is granted through a change order, the Contractor shall request another HUD-5372 Construction Progress Schedule from the Builder showing the new adjusted construction schedule, and the Contractor shall adjust the "Scheduled Progress block at the top of the HUD-95379-ORCF (A002) to reflect the new percentage based on the new approved Construction Progress Schedule.

On the HUD-95379-ORCF (A002) the Contractor shall:

5.2.1.5.1. Evaluate and report on the builder’s organization, operations, and supervision.

5.2.1.5.2. Evaluate and report on the Supervisory Architects administration of the construction contract and services in accordance with Section II, Production, Chapter 10 of Handbook 4232.1 REV-1.