Attachment 1 Performance Work Statement (PWS)DAPIA 14 Feb 24_TS _20231113 DER - Revised 20240215.pdf

Performance Work Statement (PWS)

MANUFACTURED HOUSING DESIGN

APPROVAL PRIMARY INSPECTION

AGENCY MONITORING AND INSPECTION

11/13/2023

Version 1.0

Vision Statement

1 General Information

1.1 Scope of Work

1.2 Background

1.3 Constraints

1.4 Non-Personal Services

1.5 Period of Performance

1.6 Place of Performance

1.7 Hours of Operation

1.8 Special Qualifications

1.9 Post Award/Kickoff Conference

1.10 Status Meetings

1.11 Contractor Travel

1.12 Transition In

1.13 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials and Information

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Materials

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

5 Specific Tasks

5.1 Management and Administration

5.2 Design Review Monitoring

5.3 Ancillary Services

5.4 Transition Out

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria ........................................................ Error! Bookmark not defined.

7 Related Documents .......................................................... Error! Bookmark not defined.

8 Performance Requirements Summary .............................. Error! Bookmark not defined.

Performance Work Statement (PWS)

MANUFACTURED HOUSING DESIGN APPROVAL PRIMARY

INSPECTION AGENCY MONITORING AND INSPECTION

Vision Statement

To successfully ensure compliance with the National Manufactured Housing Construction and Safety Act of 1974 (amended by the Manufactured Housing Improvement Act of 2000) and monitor the activities of all private design approval and state agencies approved by HUD in accordance with all standards and regulations.

1 General Information

1.1 Scope of Work

The Department of Housing & Urban Development (HUD), Office of Manufactured Housing Programs (OMHP) requires contractor support to assist with performing all monitoring responsibilities outlined in the MHCSS Act. Monitoring activities include inspections and assessments of the private and state agents who are responsible for inspections, and oversight of the manufacturer’s adherence to their quality assurance programs of manufactured housing (Design Approval Primary Inspection Agency functions) as well as enforcement of notification and correction campaigns and related recordkeeping pursuant to Subpart I of the regulations.

Detailed descriptions of specific tasks are provided in Section 5 - Specific Tasks and Deliverables

1.2 Background

The National Manufactured Housing Construction and Safety Standards Act of 1974 (the Act), implemented in June 1976, established the framework for HUD’s development and implementation of the federally preemptive manufactured housing construction program. The Act, as amended by the Manufactured Housing Improvement Act of 2000 sets forth authority for HUD to develop and enforce federal manufactured housing construction and safety standards.

Through HUD’s manufactured housing program, unsubsidized affordable housing is available for many families who might otherwise not be able to afford home ownership. Approximately eight (8) million manufactured homes have been built under HUDs Manufactured Housing Construction and Safety Standards Program since 1976. About 50 companies produce manufactured housing in 146 plants (production lines) with current production of about 100,000 floors per federal fiscal year.

HUD administers the program, supported by agreements with thirty-five (35) State Administrative Agencies (SAAs) and various Contractors. In addition to 35 SAAs and HUDs Contractors, there are currently six (6) Design Approval Primary Inspection Agencies (DAPIAs) and twelve (12) Manufactured Housing In-Plant Primary Inspection Agency (IPIA), both public and private, approved by HUD to conduct design reviews and in-plant surveillance, respectively.

Eight (8) of the thirteen (13) active HUD-approved agencies are units of State government and the remaining five (5) are private for-profit corporations.

Each manufacturer must obtain the services of a DAPIA. The DAPIA is responsible for ensuring that designs conform to the requirements of the Standards and incorporate acceptable engineering practices. All designs and design changes must be approved by a manufacturer’s DAPIA that also approves each plant’s quality assurance manual.

Each manufacturer must also obtain the services of an IPIA. The IPIA must determine that the plants under its purview are capable of producing homes in conformance with the Standards on a continual basis and issue a certification. After the certification, the IPIA is responsible to monitor the implementation and effectiveness of the manufacturer’s quality control program through surveillance and inspections of each home at some stage of production. If the IPIA is satisfied, it may issue the HUD-required certification labels that are attached to each section of each home upon completion. Combined, the IPIAs certify and provide ongoing surveillance at all active manufacturing plants.

Each SAA with manufacturers in state have responsibilities to approve and monitor manufacturer systems for compliance with 24 CFR Part 3283 Subpart I in addition to responsibilities for handling consumer complaints. Each SAA without manufacturers in state have responsibilities for handling consumer complaints (i.e., forwarding complaints to the manufacturer and to the SAA in the state of manufacturer, and or HUD if there is no SAA).

The Contractor is responsible to audit IPIA performance and SAA performance with an outcome of each assessment resulting in a determination as to whether the IPIA and SAA is fulfilling all the regulatory responsibilities and is meeting HUDs expectations.

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:

HUD generally implements the monitoring portion of its program through the following Statute and regulations:

• The National Manufactured Housing Construction and Safety Standards Act of 1974 (the Act), implemented in June 1976, and the 2000 amendments are located on HUDs website: https://portal.hud.gov/hudportal/documents/huddoc?id=uscode2012ti.pdf.

• 24 CFR 3280, Manufactured Housing Construction and Safety Standards (the Standards), which is a nationally preemptive set of standards for the design and construction of these homes (commonly known in this industry as the HUD Code) eCFR :: 24 CFR Part 3280 -- Manufactured Home Construction and Safety Standards; and

• 24 CFR 3282, Manufactured Home Procedural and Enforcement Regulations (the Regulations), which generally govern the enforcement of the HUD Code eCFR :: 24 CFR Part 3282 -- Manufactured Home Procedural and Enforcement Regulations.

The list of DAPIAs, IPIAs and SAAs, see HUD website with the following links:

Inspection Agencies: List of IPIAs and DAPIA's - HUD | HUD.gov / U.S. Department of Housing and Urban Development (HUD) https://www.ecfr.gov/current/title-24/subtitle-B/chapter-XX/part-3280 https://www.ecfr.gov/current/title-24/subtitle-B/chapter-XX/part-3280 https://www.ecfr.gov/current/title-24/subtitle-B/chapter-XX/part-3282 https://www.ecfr.gov/current/title-24/subtitle-B/chapter-XX/part-3282 https://www.hud.gov/program_offices/housing/rmra/mhs/csp/mhsid https://www.hud.gov/program_offices/housing/rmra/mhs/csp/mhsid

State Administrative Agencies (How and Where to File a Complaint) | HUD.gov / U.S.

Department of Housing and Urban Development (HUD)

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 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.

1.5 Period of Performance

The Period of Performance shall be for one (1) Base Period of 12 months and four (4) 12-month option periods.

1.6 Place of Performance

The services to be performed under this contract shall be performed at the Contractor’s facility.

1.7 Hours of Operation

Not applicable.

1.8 Special Qualifications

The Contractor is responsible for ensuring all employees conducting system analysis and compliance assurance possess and maintain current professional certification in accordance with ASTM E-541 during the execution of this contract. The monitoring party conducting DAPIA reviews at DAPIA headquarters visits must be led by a licensed professional engineer or registered architect.

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 (eCFR :: 48 CFR Part 42 Subpart 42.5 -- Postaward Orientation (FAR Part 42 Subpart 42.5)) and HUD Acquisition Regulation (HUDAR) clause 2452.237-79 - Post Award Conference (HUDAR | HUD.gov / U.S.

Department of Housing and Urban Development (HUD)).

1.10 Status Meetings

The Contracting Officer, Contracting Officers Representative (COR), 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 https://www.hud.gov/program_offices/housing/rmra/mhs/csp/mhssaa https://www.hud.gov/program_offices/housing/rmra/mhs/csp/mhssaa https://www.ecfr.gov/current/title-48/chapter-1/subchapter-G/part-42/subpart-42.5 https://www.ecfr.gov/current/title-48/chapter-1/subchapter-G/part-42/subpart-42.5 https://www.hud.gov/program_offices/cpo/hudar#part_2452.2 https://www.hud.gov/program_offices/cpo/hudar#part_2452.2

Contractor of how the Government views the Contractor's 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 shall be at no additional cost to the Government. Post Award Conference and subsequent meetings may be held via teleconference at the Contracting Officer's discretion.

1.11 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46 (eCFR :: 48 CFR Part 31 -- Contract Cost Principles and Procedures (FAR Part 31)).

1.12 Transition In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 90-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 the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order 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.

1.13 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 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.

2 Definitions and Acronyms

2.1 Definitions

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.

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.

https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-31?toc=1 https://www.ecfr.gov/current/title-48/chapter-1/subchapter-E/part-31?toc=1

Contracting Officer (CO) - A person with 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 Officer's Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities in regard to technical issues. This individual has authority to provide technical direction to the Contractor as long as 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.

Deliverable - Anything that can be physically delivered but may include non-manufactured things such as meeting minutes or reports.

Manufacturer - Any person engaged in manufacturing or assembling manufactured homes, including any person engaged in importing manufactured homes for resale.

Manufactured Home - A structure, transportable in one or more sections, which in the traveling mode is 8 body feet or more in width or 40 body feet or more in length or which when erected on-site is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained in the structure.

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.

Performance Standard - The Contractor's performance level required by the Government.

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

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

Primary Inspection Agency (PIA) - A State/or private organization that has been accepted by the Secretary in accordance with the requirement of subpart H of 24 CFR 3282.

In Plant Production Inspection PIA (IPIA) - An agency that evaluates the ability of manufactured home manufacturing plants to follow approved quality control procedures and provides ongoing surveillance of the manufacturing process. Organizations may act as one or both of these types.

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 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 of service shall meet contract requirements.

State Administrative Agency (SAA) - An agency of a State which has been approved or conditionally approved to carry out the State plan for enforcement of the standards pursuant to section 623 of the Act, 42 U.S.C. 5422, and subpart G of 24 CFR 3282.

State plan application - An application of any State organization which is submitted to the

Secretary for approval as a State Administrative Agency under subpart G of 24 CFR 3282.

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 in connection with 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.

2.2 Acronyms

AC - Alternative Construction

ASQ - American Society for Quality

ASTM – American Society for Testing and Materials

AQL - Acceptable Quality Level

CFR - Code of Federal Regulations

CO - Contracting Officer

COR - Contracting Officer's Representative

CCI - Computer Coded Items

CPO - Chief Procurement Officer of HUD (Office of)

CQA - Certified Quality Auditor

CQE - Certified Quality Engineer

DAPIA - Design Approval Primary Inspection Agency

EST - Eastern Standard Time (U.S.)

https://www.govinfo.gov/link/uscode/42/5422

FAR – Full Acceptance Report

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

HUDAR - HUD Acquisition Regulation

IPIA - In-Plant Primary Inspection Agency

IPR - IPIA Performance Review

MHCC – Manufactured Housing Consensus Committee

OCPO - Office of the Chief Procurement Officer

PM - Project Manager

POC - Point of Contact

POCA - Plan of Corrective Action

QA - Quality Assurance

QAM - Quality Assurance Manual

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

QSI - Quality System Issues

RRR - Routine Representative Reviews

SAA - State Administrative Agency

SC – Site Construction

SMA - SAA Monitoring Assessment

STI - Standards Training and Inspection

TBD - To be determined

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 the terms and conditions of this contract.

3.1 Government Services

No government services will be provided.

3.2 Facilities

No government facilities will be provided.

3.3 Equipment

The Government will not provide equipment.

3.4 Materials and Information

The Government will provide electronic access to HUD Standards, Regulations, and other information pertaining to oversight, monitoring and enforcement of manufactured home production and design, including historical operating procedures. All materials will remain the property of the Government and will be returned to the SCOR upon request or at the end of the contract period.

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 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.

4.2 Equipment

The Contractor shall furnish all equipment.

4.3 Materials

The Contractor shall furnish all materials.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (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.

4.5 Contractor Personnel

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

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 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

5.1 Management and Administration

5.1.1 Transition-In Plan

The Contractor shall provide a Transition Plan. The plan will assist the Department, at the end of the contract, in assuming or overseeing the transfer of all files maintained by the Contractor.

The plan shall include the proposed schedule and key steps for transition. At a minimum, the proposed schedule and key steps of the transition plan shall include, but are not limited to:

• Meeting with current Contractor, new Contractor, and HUD staff to discuss background, history, project status, operational rules;

• Transition of appropriate paper records, files, data and related hard copy data;

• Transition of appropriate electronic file and data;

• Meeting with current Contractor, New Contractor, and HUD staff to finalize transition, and close out any other outstanding items.

Within six weeks of contract award, the Contractor shall provide HUD with a Transition Plan outlining the specific transition steps to be taken, the materials to be transferred, and the schedule for transfer.

HUD will review the Transition-In plan and discuss any concerns with the Contractor.

Performance Standards

a) Standard: Transition-In plan due within six weeks after contract award.

AQL: Zero deviation

Deliverables

A001 Transition Plan

5.1.2 Management Work Plan

The Contractor shall provide a management work plan that addresses each of the required activities of this scope of work. The plan shall address all activities and shall contain timelines, deliverable due dates, and a summary of key personnel responsible for delivery. The Contractor shall ensure that its plan addresses resources necessary to deliver data and reports that are easy to follow and well organized. The Contractors capacity shall include design, editing, and graphics support. The plans shall specify proposed manufacturer design and quality assurance packages to be reviewed as well as the specifics of what the contractor proposes to review.

Generally, the specifics proposed are chosen from a complete list of Design Attributes for all design areas. Staff utilized under the contract may be located to suit the Contractors’ business needs, but all of the Contractor’s staff, including remote staff, must have access to any Contractor-maintained computer system used to maintain contract data. Due to the nature of the requirement, the Contractor shall expect changes in the industry that may occur during the course of performance. These variables may include:

• The number of plants and production totals of manufactured homes;

• The type and numbers of post-design or post-production problems experienced in the field;

• The frequency and extent of natural disasters;

• Number of agencies requiring monitoring and inspection; and

• Special factory, retailer, transport, installation, or site inspection issue.

The completion of these task activities may require travel in the continental United States as well as Alaska, Hawaii, Mexico, Canada, or the US territories.

A plan shall be submitted within 10 business days of contract award. HUD will review the plan and discuss any concerns with the Contractor. If applicable, a plan for each option period shall be submitted at least 30 business days prior to the expiration of each option period, except for the last option period.

Note: Annual plans shall be treated as living documents that may need to be updated and resubmitted for HUD’s approval, as needed throughout a contract year.

Performance Standards

a) Standard: Management Work Plan submitted within 10 business days of contract award.

AQL: Zero deviation

A002 Management Work Plan

5.1.3 Monitoring Procedures

The Contractor shall prepare uniform procedures and checklists to be followed by its project resources for all activities addressed in the PWS. Prior to beginning the performance evaluation of DAPIAs, the Contractor shall implement monitoring procedures approved by HUD. The monitoring procedures shall address processes and methods to assess DAPIA performance evaluations through:

• Review of plan of corrective action and items noted as needing improvement in the previous DAPIA Performance Review,

• Review of the design and quality assurance manuals of selected design packages by Contractor and HUD personnel,

• DAPIA action and proactive achievement on new issues,

• Communication of design review findings to the DAPIA, HUD, and manufacturers,

• Headquarters and branch office visits to the DAPIA; and,

• Forwarding of the DAPIA Performance Review (DPR) report to SCOR/COR,

• Performance Assessment Follow Up,

• Execution of Ancillary Services,

• Any proposed forms and data collection instruments, and

• Draft mechanism for monthly reporting

The Contractor shall also develop and implement a comprehensive checklist of design review and quality assurance elements, also known as Design Attributes, that can be evaluated to ensure compliance with the Manufactured Home Construction and Safety Standards (24 CFR 3280) and Procedural and Enforcement Regulations (24 CFR 3282). The Contractor shall verify conformance with the standards and regulations through review of Design Attribute areas including:

• quality assurance manual

• floor plans

• structural

• mechanical

• plumbing

• electrical

• heating

• thermal protection

• installation drawings

• specifications

• engineering calculations

• test reports, and

• other related information

The Contractor shall provide to the Department information necessary to fulfill any new requirements for data collection, along with the form or information collection instrument to meet those requirements. These are subject to HUD approval and may be subject to approval from the Office of Management and Budget (OMB).

The draft monitoring procedures must be submitted within 20 business days of contract award.

After completion of HUD’s review of the draft procedures, the Contractor shall forward final procedures to HUD within 20 business days of receiving HUD comments. The Contractor shall review and update the procedures and checklists at least annually and provide an opportunity for the DAPIAs to review and comment on any major revisions to the procedures and organize necessary teleconferences or meetings to discuss revisions. All comments received are to be evaluated by the Contractor and necessary modifications shall be recommended to HUD.

Copies of the HUD-approved procedures and guidelines are to be provided to the DAPIAs, upon request.

Performance Standards

a) Standard: Submit final monitoring procedures within 20 business days after receiving HUD’s comments.

AQL: Zero Deviation

A003 Monitoring Procedures

5.1.4 Contract Status Meetings

The Contractor shall be readily accessible to the CO, COR, PM, SCOR, and other appropriate HUD personnel for scheduled monthly meetings (TBD) at HUD Headquarters in Washington, D.C., and also for any impromptu meetings that shall arise to brief the Department on contract activities, progress, and special issues. Some meetings may require in-person attendance.

Consequently, phone, email communications, and video conferencing for some meetings will not be acceptable.

The purpose of these meetings is to brief the Department on contract activities, progress, and special issues and encourage clear and concise communications between HUD and the Contractor in making swift decisions and taking timely actions. Certain decisions regarding safety or legal issues raised by stakeholders often must be made on short notice. (Examples of stakeholders include manufacturers, suppliers, retailers, installers, Primary Inspection Agencies, State Administrative Agencies, representatives of the Manufactured Home Consensus Committee, Federal and State Governmental entities, consumers, and members of the public.)

Some issues may require joint review of designs, plans, audit information, or similar data.

The Contractor shall provide a calendar of proposed monthly meeting dates within 30 calendar days of contract award.

Performance Standards

a) Standard: Attend Monthly Contract Status Meetings & provide a calendar of proposed monthly meetings within 30 calendar days of contract award.

A004 Calendar of Proposed Monthly Meetings

5.1.5 Monthly Activity Report

Monthly, the Contractor shall provide a report on current data collected for all tasks in this PWS and is due five business days before the monthly contract status meeting. The report is to be provided in written and electronic formats. The Department anticipates one report per month, reviewed during a monthly status meeting.

The monthly report shall include as attachments:

• A summary of finalized audit results, including an executive summary by the lead auditor and comments solicited from the DAPIA headquarters after the audit. This summary is to recommend DAPIAs for follow-up and/or special audits. The monthly summary shall be arranged and indexed by the Contractor so that DAPIAs with the highest recommendations for follow-up are first and then based on relative descending priority.

• An updated and accurate list of the names of all manufacturers that includes each manufacturing facility, locations, telephone numbers, dates of opening and closing, DAPIAs with their effective dates of service, current facility status, effective date, and most recent audit date and summary of audit results.

• A log of all disputes that have been referred to HUD.

• Other attachments as deemed appropriate by the Contractor.

Performance Standards

a) Standard: Provide Monthly Activity Report five business days before the monthly meeting.

AQL: Zero Deviation

A005 Monthly Activity Report

5.1.6 Data Management and Security Plan

The Contractor shall provide HUD staff with electronic access to any data prepared, collected and maintained by the Contractor. The Contractor shall safeguard all data in relation to the requirements of this PWS. As result, work to be performed under this contract shall be segregated from all other work performed by the organization. Further, the Contractor shall take proactive steps through a Nondisclosure and Confidentially agreement to separate work functions so as to not create conflicts of interests.

The Contractor shall provide a data management and written security plan within 10 business days after contract award and shall be consistent with the proposal submitted in response to this PWS. The plan shall address data and system security, network security, application security, data security, quality control of data, reliability, server function and capacity, storage capabilities, back-up and recovery, off-site back-up requirements, electronic file transfer with other parties, and the procedures for HUD staff to view data and report information remotely.

Support for off-site contract staff may include laptop computers and/or tablets and digital cameras suitable for inspection documentation and report preparation during field inspections.

The plan shall also describe how the Contractor will manage data. Currently, there are approximately one million designs stored on microfilm and approximately 6.5 million hard copy design pages that are stored digitally. There are approximately seven and one-half (7.5) million pages of active and inactive drawings, specifications, calculations, test reports, and quality assurance manuals currently in inventory of materials being maintained in the library.

Performance Standards

a) Standard: Provide Data Management and Security Plan within 10 business days of contract award.

A006 Data Management and Security Plan

5.1.7 State Participation on DAPIA Monitoring Teams

States may participate in the Monitoring Program in accordance with 24 CFR 3282.308. The Contractor shall canvas SAA states to determine interest and capacity of state personnel for participating in joint monitoring activities related to DAPIA monitoring services. The Contractor can generally expect participation of up to six SAAs. For those SAAs expressing interest and having capacity, the Contractor shall secure agreements for the respective SAAs participation.

Thereafter, SAAs may participate in the monitoring program and the Contractor shall pay states for the participation in accordance with the agreements. These agreements are to be provided to HUD annually and include the following:

• an agreement with respect to the number of person-hours to be provided by the State for participation in DAPIA monitoring teams organized by the Contractor. The agreement may call for as many qualified personnel as a State can provide. The Contractor shall determine annually whether any state personnel are qualified and shall only accept those that it determines to be qualified, in accordance with established criteria for selecting and evaluating design review personnel.

• a provision that upon termination of the contract between the Contractor and HUD, the Contractors rights under the agreement with the SAAs shall be assigned to HUD.

To the extent possible, state personnel should participate in monitoring activities related to manufacturers that export manufactured homes to their States.

5.2 Design Review Monitoring

The Contractor, with data from its monitoring activities, shall make recommendations to HUD with respect to continued acceptance, disqualification or requalification of each DAPIA. The Contractor shall also provide recommendations for changes and enhancements that DAPIAs shall make in their operations to improve services and maintain approval to function as a DAPIA. The Contractor shall carry out inspections and other investigations on behalf of the Government. The Contractor shall also monitor the DAPIAs compliance with applicable regulations, including the conflict-of-interest provisions in 24 CFR 3282.359 of HUD’s Manufactured Home Procedural and Enforcement Regulations. The Contractor shall refer all issues of noncompliance to HUD.

5.2.1 Design Reviews

In compiling data for each DAPIAs performance review, the Contractor shall review DAPIA-approved designs to determine conformance with the Standards, referenced standards, regulations, and acceptable engineering practice. The designs and design packages selected for each review shall be chosen to yield an appropriate representation of industry share and quantity of approved submissions from each DAPIA. These reviews are generally comprised of the following types of design reviews:

• Standard Design Package and Quality Assurance Manual Reviews. The Contractor shall review selected design packages and Design Attributes to amount to a review of at least 10 percent of the design approvals (including Quality Assurance Manuals) maintained by each DAPIA annually.

• New Package Reviews. The Contractor shall also complete a review of all design packages new to a DAPIA for inclusion in the DAPIAs performance evaluation. These are termed new design package reviews and may consist of entirely new manufacturer design packages or design packages that have switched DAPIAs within a review period.

• Routine Representative Reviews. The Contractor shall also perform Routine Representative Reviews (RRR) on each DAPIAs approvals. The quantity of RRR reviews shall yield a statistically valid sample of industry share and comprise at least 10% of design approvals issued each year by each DAPIA. Generally, RRRs consist of a review of all new or revised designs submitted by a DAPIAs for the respective manufacturer during a pre-determined time period. When practicable, the design packages selected for RRRs shall be from manufacturers different than those selected for standard design reviews.

• Quality Assurance Manual Reviews. The Contractor shall review a sample (at least 10 percent) of quality assurance manual approvals to ensure that the manuals meet regulatory requirements and acceptable engineering practices.

• Installation Manual Reviews. The Contractor shall review a sample (at least 10%) of manufactured home installation manual approvals to ensure that the installation instructions, if followed, will not take the home out of compliance with the approved design or HUDs Manufactured Home Construction and Safety Standards, 24 CFR 3280.

• On-Site Construction Approval Reviews. The Contractor shall review a sample (at least 10%) of On-Site Construction approvals and designs maintained by each DAPIA. The contractor shall ensure compliance with requirements contained in 24 CFR 3282 Subpart M.

• In-Plant Audit Design Reviews. From time to time, HUD monitoring audits (completed by another contractor) during the production of homes may identify potential design errors or designs with non-conformances. These issues will be referred to the Contractor and shall be reviewed by the Contractor to determine conformance with the Standards and acceptable engineering practice.

Any design review yielding one or more non-conformances or design issues shall result in a preliminary report containing one or more Design Error Records. The preliminary Design Error Records are submitted to HUD for review and acceptance. After HUD’s review of the preliminary Design Error Records, the Contractor will be either notified that the records are acceptable or may be asked to address any feedback or comments provided by HUD before submitting final records. The Contractor shall resubmit with updates or revisions within five business days after receiving feedback or comments.

Performance Standards

a) Standard: Review 10 percent of Standard Design Packages including Quality Assurance Manuals for each DAPIA annually AQL: Zero Deviation

b) Standard: Review all new design packages to each DAPIA annually AQL: Zero Deviation

c) Standard: Review 10 percent of each RRR for each DAPIA approvals annually AQL: Zero Deviation

d) Standard: Review 10 percent of Manufacturers Installation Manual annually AQL: Zero Deviation

e) Standard: Review 10 percent of all On-Site Construction approvals annually

A007 Preliminary Design Error Records

5.2.2 Resolution of Design Error Records

Upon acceptance of final Design Error Records by HUD, the Design Error Records shall be transmitted to the respective DAPIA for resolution. The Design Error Record shall document the initiating design review issue and all subsequent DAPIA responses and Contractor replies to obtain resolution. The Contractor shall encourage the DAPIA to supply any additional information and justification in support of the designs in question. Responses from the DAPIA shall be evaluated and, to the extent possible, issues shall be resolved. Since there may be several communications between the Contractor and the DAPIA before some items are resolved, the Contractors final report to HUD should contain a chronological sequence of the communications for each possible deficiency. The number of Design Error Records can vary significantly depending on the technical competence of the manufacturer and performance of the DAPIA. The Design Error Records to be included in the annual performance assessment must be transmitted to HUD and the DAPIA for resolution no later than 30 business days prior to the date of the scheduled headquarters audit. This timeline is to provide adequate time for the DAPIA to review the Design Error Records and provide ample opportunity to resolve all Design Error Records.

The Contractor shall ensure that each Design Error Record:

• Identifies all non-conformances with the Standards or Regulations, or acceptable engineering practice;

• Identifies any areas for which drawings, calculations, tests, or other documented substantiation could not be located in the DAPIA approval;

• Is backed with independently developed evidence such as calculations or test results to verify nonconformance of any suspect designs, as applicable;

• Identifies if substantiating calculations or test reports adhere to acceptable engineering practice and are properly cross-referenced to the designs;

• Recommends potential corrective action(s); and,

• Provides a complete report, to HUD, of the Contractors findings including any corrective action(s) required.

If the DAPIA does not respond in a timely manner, the Contractor shall follow up with a letter and/or phone call to expedite resolution. The Contractors review of the DAPIAs response may result in one of the following conclusions:

• Acceptable. The DAPIAs corrective action is acceptable for the respective drawing, test, specifications, or calculations.

• Concur. The Contractor concurs with the DAPIAs disagreement of its findings and agrees to remove the issue from its monitoring evaluation.

• Unresolved. One of the following is true: the DAPIAs corrective action is not acceptable, the DAPIAs response is not complete, or unsubstantiated, or the DAPIA has agreed to send additional information.

• Delete. The DAPIA corrected the nonconformance before the Contractor transmitted a design error record, or the Contractor does not concur with the DAPIAs position but consents to delete the possible deficiency.

• Dispute. The Contractor does not agree with the DAPIAs position and HUDs determination is required in order to proceed with resolving the technical issue. When the DAPIA and Contractor cannot resolve the technical issue, the issue is to be sent to

HUD as a "Dispute and HUD shall make a final determination (See Handling Disputes Task 5.2.3).

All Contractor responses must be sent to HUD for approval prior to transmitting the response to the respective DAPIA. The Contractor will either be notified that the records containing responses are acceptable or may be asked to address any feedback or comments provided by HUD before submitting a final report. Once the report is approved by HUD, HUD at its option, may direct the Contractor to distribute the report to all agencies or parties affected by the report.

The Contractor is responsible for attempting to resolve each design error record contained in the preliminary report within 15 business days after issuance to the DAPIA.

Performance Standards

a) Standard: Submit Design Error Records to DAPIA and HUD, 30 business days prior to DAPIA headquarters audit.

A008 Final Design Error Records

5.2.3 Handling Disputes

When the DAPIA and Contractor cannot resolve the technical issue related to a Design Error Record, the issue is to be sent to HUD as a "Dispute”. HUD will make a final determination, which both parties accept. The Contractor shall provide a request for dispute determination from HUD. The Contractor shall provide the dispute request to HUD with full documentation of the issue and position statements from all parties involved. Dispute reports shall be submitted to HUD within five business days of a request for dispute by the DAPIA and after obtaining all support documentation for the disputed issue and a position statement from the DAPIA. The intent of the dispute report shall be to provide all parties with an opportunity to present their views. The dispute report also provides HUD with information and comments about disputes between DAPIAs and the Contractor so that HUD can make an informed determination.

In addition to individual dispute records, the Contractor shall maintain a log of all disputes that have been referred to HUD. This log is to be provided monthly and is expected to allow HUD to easily identify the nature of an issue, the status of an issue (i.e., open or closed), the primary parties involved, and the final outcome of the issue. The log shall be transmitted to HUD monthly and may be an attachment to the monthly report.

Performance Standards

a) Standard: Submit Dispute Reports within five business days of a request for dispute.

A009 Dispute Handling Log

5.2.4 DAPIA Performance Assessment and Reports

The Contractor shall evaluate the performance of each DAPIA annually based on the requirements outlined in the relevant sections of the regulations (e.g., 3282.203 and 3282.361) and in accordance with HUD-approved procedures. Each year, the Contractor shall perform a minimum of one DAPIA Performance Review (DPR) for each of the HUD-approved DAPIAs.

The Contractor shall possess the ability to identify poor performance by a DAPIA and, with HUDs approval, appropriately increase monitoring of the agency, as needed. Up to two (2) DAPIAs may require a mid-year review and evaluation report each option period due to repetitive failures to maintain acceptable performance determinations. The Contractor shall review all data, including the DAPIAs response to the Contractors Design Error Records to identify performance trends including but not limited to specific areas of strength and weakness, organizational competence, procedural adequacy and implementation, compliance with On-Site Construction approval regulations, and repeated approval of the nonconforming designs. The Contractor shall also review each DAPIAs operational procedures and any tools the DAPIA has developed to fulfill its regulatory responsibilities.

The Contractor shall implement its DAPIA monitoring procedures and execute reviews integrating various activities to be completed before a visit to the DAPIAs headquarters, activities to be completed during the visit at the DAPIAs headquarters, and certain activities to be completed after the headquarters visit. At a minimum, the following data should be used in assessing DAPIA performance:

• Findings from the review of DAPIA-approved design and quality assurance packages in accordance with the applicable sections of the Standards and Regulations;

• DAPIA compliance with the applicable conflict of interest provisions in the Regulations;

• Evaluations of the DAPIAs administrative procedures, including On Site Construction approval monitoring, and application of those procedures to perform its responsibilities adequately in accordance with the applicable section of the Regulations; and

• Evaluation of the thoroughness and effectiveness of corrective actions taken by the DAPIA to comply with its Plan of Corrective Action (POCA) from the previous review cycle.

The Contractor shall visit each DAPIA headquarters at least once annually to assist in evaluating the DAPIAs performance. Conference call headquarters audits may be conducted with HUDs approval of the monitoring plan. During the visits, detailed reviews of DAPIA operations shall be made. The Contractor shall evaluate the DAPIAs headquarters staff regarding their knowledge of, and compliance with the Regulations and Standards. The Contractor shall also evaluate each DAPIAs administrative procedures. The Contractor shall send a monitoring team to perform this task. At least one member of the monitoring team must be a licensed professional engineer or registered architect. At a minimum, the following tasks shall be performed during the visit:

• Examine, evaluate, and audit the DAPIAs headquarters procedures, records, and personnel qualifications;

• Review the DAPIA procedures and actual records for rectifying deficient or noncompliant designs (Design and Quality Assurance Manual Deviation Reports);

• Review the resumes of the DAPIA staff and engineers for compliance with ASTM E-541;

• Determine how paperwork flows through the DAPIA office and assess the effectiveness of the procedures;

• Determine how the DAPIA assigns resources for its operation;

• Determine compliance with requirements for On-Site Construction Approvals;

• Discuss any weakness in performance or design review areas identified during the preliminary review period and plans to rectify those weaknesses; and,

• Discuss, and attempt to close, all unresolved, possible design deficiencies.

• Verify the DAPIAs compliance with the conflict of interest provisions in 24 CFR

3282.359.

Within 20 business days after the DAPIAs headquarters visit or conference call, the Contractor shall provide a preliminary DAPIA Performance Report (DPR) that includes the findings and conclusions from its evaluation of the DAPIA. The DPR shall also include the Contractors recommendations to HUD of corrective and/or enforcement action(s) and/or actions the DAPIA should take to be in compliance with the Standards and Regulations as well as the adequacy and effectiveness of corrective actions required to be taken by the DAPIA that were identified in the prior DPR. After completion of HUD’s review of the report, the Contractor shall forward a final DPR report to HUD within 10 business days of receipt of HUD’s comments.