Attachment 1 - SOW- Real Property SOW-15M50026QA4400RP0807.docx

DRAFT STATEMENT OF WORK REAL PROPERTY

Table of Contents

Attachment 1 - RFI-15M50026QA4400RP-0807-Real Property Page 4 of 74

Disclaimer:

This SOW is currently a draft document. Any identified errors, omissions, or discrepancies will be corrected prior to the official solicitation. Respondents are highly encouraged to highlight any discrepancies in content, referencing, or workflow within their response to help improve the final document.

C.1 GENERAL INFORMATION

This Statement of Work (SOW) is designed to support the custody, evaluation, management, maintenance and disposal of seized, restrained or forfeited real property for the United States Department of Justice (DOJ) Asset Forfeiture Program (AFP). The Contractor shall support the United States Marshals Service (USMS and DOJ components that participate in the DOJ Assets Forfeiture Fund (AFF) by providing services for pre-seizure planning, custody, management and disposition of seized, restrained, or forfeited real property and related assets.

C.1.1 BACKGROUND

C.1.1.1 ASSET FORFEITURE PROGRAM AND UNITED STATES MARSHALS SERVICE

The mission of the AFP is to affirmatively influence the consistent and strategic use of asset forfeiture by participating agencies to disrupt and dismantle criminal enterprises. The USMS is responsible for all real property seized, restrained or forfeited through the AFP. However, the subject of this contract is for just real property and other related assets. Other related assets are defined as Notes Receivable, Mineral Rights, Oil & Gas Rights, and Operating Businesses (Hotels, Restaurants, Apartment Complexes, etc.)

The recovery realized as a result of the disposition of these seized and forfeited assets is deposited into the AFF. The AFF is administered by the Money Laundering Narcotics and Forfeiture Section of the Department of Justice Criminal Division (MNF) and the Asset Forfeiture Management Staff (AFMS) of the Justice Management Division (JMD).

The AFF was established in 1984. to be a multi-departmental fund, representing the interests of law enforcement components. It is the receipt account for the deposit of non-tax forfeitures made by various participating agencies.

Effective law enforcement actions against criminal enterprises, from drug cartels to terrorist organizations, require depriving criminals of enabling assets and profits that support or stem from their existence. The AFF is funded by the forfeited assets of criminal enterprises and is a “special receipt account” (i.e., a resource account that provides funding to participating law enforcement agencies to enhance their capabilities to conduct successful investigations and forfeitures). MNF and AFMS, through the provision of leadership, guidance and stewardship, works to maximize the impact of forfeitures performed by the participating agencies and perform the following functions:

· Promotes the use of asset forfeiture proceeds to fund programs and activities aimed to disrupt and dismantling criminal enterprises, in particular major case initiatives and activities enhancing forfeiture capabilities

· Manages AFF revenues to cover the costs of seizure and forfeiture

· Trains law enforcement personnel of the participating agencies in various aspects of asset forfeiture processes and best practices

· Promotes cooperation among Federal, State and local law enforcement agencies through funding of expenses including equitable sharing, as well as the development of task forces

· Promotes financial stability and vitality of the AFF

· Develops policies consistent with Federal law, and provides legal advice regarding the interpretation of such laws and policies

· Coordinates AFF policy among the participating agencies

· Through the precepts of risk management, identifies and initiates action to address program risks

· USMS personnel serve as the designated COR on this and similar contracts dealing with seized or forfeited property. USMS staff will review and provide comment on the Contractor’s risk management plans, procedures and investigations on behalf of the AFF C.1.1.2 Types of Forfeiture There are three types of forfeiture available to the Government: (1) criminal forfeiture; (2) civil forfeiture; and (3) administrative forfeiture. Criminal and civil forfeitures require a ruling by a federal judge, while administrative forfeitures can be effectuated outside of court system by an investigative seizing agency.

A criminal forfeiture action is directed against a wrongdoer who either used property in a criminal manner or obtained property as the result of committing a crime. A criminal forfeiture is imposed as part of the wrongdoer’s punishment following a conviction. If there is no conviction, there can be no criminal forfeiture. The case caption in such a forfeiture would read, for example, “United States v. John Doe.”

A civil forfeiture, on the other hand, is action directed against property itself. The case caption would read, for example, “United States v. 40 Acres of Real Property Located at 24 Locust Lane.” Known as an in rem proceeding, a civil forfeiture is a legal action directed solely against the property based on a legal finding that the property itself was used in an illegal manner. In rem proceedings may take place whether or not criminal charges are ever brought against a wrongdoer and whether or not, if charges are brought, there is a conviction.

Both types of judicial forfeitures (criminal and civil) are intended to confiscate property used or acquired in violation of the law. While the procedures involved in these two types of forfeiture actions are very different, since one involves deprivation of a person’s liberty and the other does not, the results are, in many respects, the same. Both civil and criminal forfeitures transfer rights, title and interest of forfeited property to the U.S. after any claims made by parties with a purported interest in the property are addressed in accordance with law.

Administrative proceedings are conducted by the seizing agency, and like criminal and civil forfeitures, are intended to confiscate property used or acquired in violation of the law. They occur when a forfeiture is not contested and when the property value does not exceed $500,000. However, there are limitations on the use of administrative forfeiture even when a property owner does not contest forfeiture and the value of the property does not exceed $500,000. Most notably, real property of any value can never be forfeited administratively. Forfeiture of any real property always requires a ruling by a federal judge pursuant to a judicial procedure, whether criminal or civil in nature.

C.1.1.3 Legal Means of Forfeiture Custody Property subject to civil forfeiture is generally taken into custody by the USMS pursuant to a seizure warrant, or a warrant of arrest in rem. In a criminal forfeiture action, property subject to forfeiture may be seized pursuant to a criminal seizure warrant, upon entry of a preliminary order of forfeiture or Final Order of Forfeiture.

C C.1.1.1 C.1.1.2 C.1.1.3 C.1.1.4 Department of Justice Financial Litigation Program The DOJ Civil Division’s Financial Litigation Program (FLP) is responsible for the enforcement of monetary penalties, consisting of restitution, fines, and special assessments, imposed as part of sentences in federal criminal cases, and the collection of debts resulting from unpaid federal loans. The FLP conduct financial investigations and implements criminal and civil statutes to recover assets to satisfy criminal and civil monetary judgements. The Executive Office of the United States Attorneys (EOUSA) oversees the FLP program nationwide.

EOUSA currently has a reimbursable agreement with AFMS that provides the FLP with access and use of the products and services available under USMS Real Property National Contract for the pre-seizure assessment, custody, management, and disposition of real property assets levied by court order under this program. The Contractor under this contract will be required to provide these services under this reimbursable agreement.

C.1.2 OBJECTIVE

The objective of this SOW is to describe the requirements of the for nationwide services for the pre-seizure assessment, custody, management and disposition of seized and forfeited residential, commercial, industrial real property, vacant land, operating businesses, notes receivable, as well as oil, gas, and mineral rights (real property) on behalf of USMS.

All such real property shall be referred to as “Real Property.” The mission of the contract is to support the law enforcement operations of the affected agencies. The Contractor shall comply with all provisions of the SOW in a cost-effective manner. For all work performed under this contract, the Contractor shall seek to minimize expenses associated with the management of Real Property and maximize the revenue received through the public sale of these Real Properties.

C.1.3 SERVICES REQUIRED

The Contractor shall provide the services detailed below in all fifty (50) states, the District of Columbia (DC), as well as all U.S. territories (Puerto Rico, Guam, U.S. Virgin Islands, Northern Mariana Islands, and American Samoa).

The Contractor shall also provide pre-seizure products for Real Property located outside the continental United States (OCONUS) only in countries and regions where the Contractor can confirm that they have access to reliable vendor resources.

The Contractor shall provide the services set forth in this SOW for all AFF real property workload requirements. The requirements of the contract include:

· Evaluating and analyzing real property costs and benefits which shall include:

· Appraisals

· Title search and/or report/commitment

· Net equity

· Cost benefit analysis

· Photographing and/or videotaping

· Property inventory

· Monitoring and/or oversight of posted property

· Identification of environmental concerns.

· Preparation of documents and materials to support the USAO by filing and perfecting forfeiture actions against real properties. This includes:

· Providing full title reports/commitments

· Providing a legal description in a format that allows the USAO to cut & paste content for inclusion in court filings

· A complete listing of all parties and entities to receive due process notifications of the action

· A complete and up to date title report that also provides confirmation that the government’s lis pendens is active on title

· Receiving, taking custody of, securing , inventorying, preserving, maintaining, managing, advertising, repairing, demolishing and/or disposing (e.g., remitting, retaining, transferring, donating, or selling) of seized and forfeited real property

· Providing a valuation report (i.e., appraisal, Broker’s Price Opinion, etc.) and reviewing the valuation report for accuracy

· Determining chain of titles and current ownership and valid recorded liens

· Ensuring clear and insurable title

· Facilitating quick sales as deemed appropriate

· Determining Fair Market Value (FMV) based upon review of appraised value

· Provide and maintain a secure cloud-based information system (SYSTEM) that offers a seamless and efficient experience for users managing and facilitating the real property asset forfeiture program. The system must be capable of:

· Managing the flow of orders, including real-time status information, user feedback loops, and the secure delivery of product

· Asset and project tracking, including numerous and diverse asset classes, budgeting, and auditable vendor bill approvals

· Tracking all expenditures to the seizure action line item and developing and implementing the Contractor’s Government-approved system for allocation of all indirect costs for all real property in custody and held in inventory during the billing period

· Contract management and financial reporting, including accruals, rent rolls, lockbox reconciliations, and vendor bill management

· Support and training

· On-demand reporting

· System change requests

· Achieving an agency ATO which requires total compliance with the NIST SP 800-53 Framework (or any updated framework requirement of the Federal Government)

· A document control system to assist in automating, controlling, referencing, filing and retrieving correspondence between the Contractor's office and the Government

· Meeting the risk management requirements in accordance with the Contractor’s approved Risk Management Plan

· Implementing required tasks in a manner designed to maximize the quality of service and sale revenue, and minimize costs and Real Property deterioration

· Conducting internal and external audit(s) including program operations and financial management

· Providing specialized real property or process training to the government relevant to services provided under the Contract

C.1.4 WORK AUTHORIZATION AND PAYMENT PROCESS

C.1.4.1 Sub Task Orders The USMS will place STO in the contractor provided information system (SYSTEM) under either a USMS generated Pre-Seizure number or a CATS ID Number authorizing the contractor to perform work as specified. More than one items may be included on a STO. The CLIN listed in the attached CLIN List identify the specific items and their descriptions as well as any applicable requirements.

Upon receipt of each STO, the Contractor shall review the order for accuracy. If clarification or additional information is required, they shall request them from the COR prior to approving the STO in the SYSTEM. Once all required information is received and reviewed, the Contractor shall accept the STO in the SYSTEM and begin ordering the product from the appropriate vendors. The Contractor shall coordinate with the COR within 3 business days of receipt of any STO containing an item that requires having a DUSM on site. The Contractor shall NOT go to the property without having first scheduled with the USMS. The Contractor shall note in the SYSTEM all such instances successfully scheduled including the start date and estimated date of completion. The Contractor shall notify the USMS via email with any problems that will delay scheduling. The Contractor shall ensure each authorized work is provided in a timely manner, in adherence with the pricing schedule and contract requirements as well as any HUD, State and local guidelines and ordinances as applicable. Recurring items shall be completed by the Contractor at the interval specified in the attached definitions and deliverables document and shall continue as necessary until canceled or modified by the Government. The Contractor shall perform all work as specified in the corresponding CLIN description.

C.1.4.2 Receipts The Contractor shall upload a copy/scan of all receipts into the SYSTEM upon the completion of each instance of each item on an STO. A full report that includes date-stamped photographs evidencing the work being completed shall be provided to support each receipt. In the event of an adverse incident, the contractor shall complete only the work necessary to mitigate additional damage and must provide the reimbursement request within 24 hours of completion of any such work.

No presumption of propriety shall be attached to the incurrence of costs by the Contractor. If an initial review of the facts results in the challenge of a specific cost on a reimbursement request by the contracting officer or the contracting officer’s representative, the burden of proof shall be upon the Contractor to establish that such cost is reasonable. A cost is reasonable if, in its nature and amount, does not exceed that which would be incurred by a prudent person in the conduct of competitive business commensurate with industry standards.

The USMS will audit and evaluate the charges on all reimbursement requests and shall disallow charges for any items it determines were:

· Unnecessary or excessive.

· Not performed or not performed properly.

· Performed without appropriate authorization as a result of an allowable, or an adverse incident.

The Contractor shall invoice the USMS monthly for all items completed.

· Each receipt must have its own unique Instance ID but will also include relevant information such as STO, AIN, and CLIN.

· Invoice details will be billed against the receipt ID number.

C.1.4.3 Bids The contractor shall submit bids from unique providers for any specific or specialized repair, testing or remediation work not specifically conceived as a CLIN on the pricing schedule. The Contractor must submit all bids electronically via email to the COR for evaluation and approval. Each bid shall include the STO number (if applicable) detailed scope, itemized labor and material prices, subcontractor/vendor quotes when applicable, photographs supporting the recommended work, anticipated start and completion dates, required permits or licenses and any conditions that may affect price or schedule. All bids provided must justify the price and be itemized by a CLIN with associated cost for each item. Each request for specialized repair, testing, or remediation work with accompanying bids must include a professional recommendation to the COR by the Contractor with support for the recommendation.

The USMS will evaluate the charges on all bids to ensure that those not already identified by a fixed price CLIN in the contract pricing schedule, are commensurate with industry standards in a fair and reasonable price. Should the bid or the price of any one item appear to be excessive, the USMS reserves the right to seek additional bids outside the contract to perform the required work.

For instances where the contractor needs to obtain bids from a specialized professional (e.g. mold, plumbing), the USMS, upon approval, will pay an additional fee (Third Party Appointment CLIN).

Trip charges for obtaining additional bids are not payable unless expressly authorized in writing by the COR before the trip occurs. When specialized professional services are required, such as mold, plumbing, electrical, structural, environmental, or similar services, the COR may authorize a trip charge not to exceed $100 per property visit. The authorization shall identify whether the charge applies per property, per vendor, or per visit.

On occasion, the Contractor may be requested to meet with another third party (most often prior occupant) Contractor will be paid at an hourly rate. (Trip Charge CLIN)

C.1.3 C.1.4.4 Invoices The Contractor shall invoice the USMS monthly by receipt number for all completed items including those for which a reimbursement request has been submitted. Invoices must comply with the government’s requirement for a proper invoice which can be found in the (FAR Subpart 32.905). They must be submitted on a monthly basis and contain the proper documentation. If accepted as a proper invoice, payment will be made within 30 days as required by the prompt payment regulations.

The Invoice date and submission of invoice must be after the billing cycle and by the 10th of each month. Charges for services must be billed within 60 days of the completion date, or the Contractor will not be paid. When submitting a revised invoice, the date must reflect the resubmit date and identify that it is a corrected invoice.

1. Contractor shall submit their monthly invoice to the USMS electronically. A sample invoice will be provided post award.

2. The Contractor shall track and include the following information for monthly invoices:

a. Invoice Date - This date should reflect the date the invoice was generated by the Contractor.

b. Invoice Number

c. Billing Period - The billing period reflects the billing cycle, which starts the 1st of the month and ends on the last day of the month.

d. Invoice total. This is the grand total of all invoice charges.

e. STO number (if applicable)

f. Contractor signature block; certification that the contractor has reviewed the charges and that they are being invoiced accurately per the contract.

g. COR signature block.

h. Certifying Officer Certification.

The Contractor shall upload an itemized receipt summary on an Excel spreadsheet for each invoice.

C.2 MANAGEMENT AND ADMINISTRATION

The Contractor shall provide timely, responsive and technical excellence services as specified in the deliverables section, performing under the direct guidance of the CO and COR. The Contract will designate specific technical representatives as CORs that have the sole USMS delegated authority to approve work and expenses on seized and forfeited real property assets.

C.2.1.1 Organizational Chart The Contractor shall submit an initial set of organization charts at the mid-point of the transition/phase-in period to the COR. During the final work week of the transition/phase-in period, the Contractor shall submit to the USMS an updated chart depicting the detailed organization finalized for the performance of this SOW when the base period begins the next week. The chart shall contain the names, work addresses and telephone numbers of the supervisory and management individuals with authority to represent the Contractor before the Government in all matters arising under this SOW, resolve problems, and respond to emergencies. The chart shall also identify an updated list of USMS-approved key personnel responsible for performing the requirements contained in Section C.4. The Contractor shall keep the chart current, accurate and complete, and shall notify the USMS in writing within seven (7) business days of any personnel or organizational changes. Notwithstanding the foregoing, nothing contained in this subsection shall relieve the Contractor of the obligations contained in the Addition/Substitution of Key Personnel clause in Section G of the contract. The Contractor shall distribute an updated list of USMS-approved key personnel to the USMS within three (3) business days of receipt of each contract modification incorporating changes to the key personnel.

C.2.1.2 Personnel Requirements The Contractor shall furnish fully trained and qualified managerial, supervisory, technical, administrative, clerical and other individuals, sufficient in number and qualifications to fully support and accomplish all work. The Contractor shall ensure that personnel and subcontractors performing licensed work hold all required Federal, state, local, and professional licenses before performing such work. The prime Contractor may satisfy trade-specific licensing requirements through properly licensed subcontractors, provided the prime remains fully responsible for performance, quality, documentation, and compliance.

C.2.1.2.1 Standards Project personnel (which include the Contractor’s employees, subcontractors, and any other individuals performing work under the contract, and shall hereinafter be referred to as “Project Personnel”) Required certifications and licenses include:

· Business Licenses

· HVAC-R Certification

· Broker’s License

· Real Estate Agent License

· Appraiser’s License

· General Contractor’s License

· Electrical Contractor’s License

· Plumbing Contractor’s License

· Locksmith Licenses

· Pest Control Licenses The Contractor shall maintain the certifications, licenses, renewals, and qualifications of all Project Personnel throughout each performance period to ensure that all Project Personnel are appropriately certified, licensed, trained, and qualified when performing any work under this SOW. No Project Personnel shall be assigned to a task to which the individual is no longer certified, licensed, trained, or qualified to perform. The Contractor shall verify the Project Personnel have the required certifications and licenses prior to performing any work under the contract for which such certification, licenses, training or qualifications are required and shall take reasonable steps necessary to ensure they are current at all times.

C.2.1.2.2 Qualification Requirement Waiver Request During contract administration, and under certain circumstances, the Government reserves the right to waive specific qualification requirements for any given individual performing work under the SOW if issuing a waiver is determined to be in the best interest of the Government. The issuance of written waivers will not be a routine practice and will be individual and event specific. In each case, a waiver request shall be submitted by the Contractor to the CO, along with the résumé for the individual for whom the waiver is being requested, giving a description of and full justification for the proposed waiver. The waiver request package shall include a synopsis of recruitment efforts leading up to the request, including a complete list of the pool of candidates from which the subject individual was selected. The waiver request will be reviewed and approved by the CO; however, the CO may delegate the approval authority to the COR. Regardless, only the CO, or the COR, when the CO has delegated such authority in writing to the COR, may provide a written waiver of specific qualification requirements. Any and all waivers must be in writing. If the waiver is granted, the position description is not changed, but the individual person granted the waiver is authorized to work under that specific title with all the duties and benefits conferred upon it. Any training required by the waiver must be completed within sixty (60) business days of the date of the waiver was issued. The waiver is not transferable to another labor category or individual.

C.2.1.2.3 Conduct of Project Personnel The Government reserves the right to require the Contractor to reassign or remove from the contract any Project Personnel (regardless of his/her employer) deemed incompetent, careless, unsuitable, or otherwise objectionable, or whose continued use under the contract is deemed contrary to the best interests of the Government. Such removal of Project Personnel does not relieve the Contractor from the requirement to timely perform contract tasks in accordance with specified performance standards. The Contractor shall be responsible for the performance and conduct of Project Personnel at all times. The Project Personnel shall only conduct business covered by the contract during periods paid for by the Government and shall not conduct any other business (commercial or personal) on Government owned, leased, seized, or blocked, or forfeited premises or use Government supplies, information and equipment for any purpose other than performance of the contract.

C.2.1.3 Training The Contractor shall provide trained, experienced Project Personnel to perform the work required under the contract, and shall continuously monitor, manage and control the work performed by such individuals. The Contractor shall make its best effort to retain well-performing individuals who have gained work experience and performed well under the contract and to minimize turnover of individuals performing the contract.

The Contractor shall train Project Personnel and verify that all such individuals are able to satisfactorily perform their duties under the contract. The Contractor shall provide Project Personnel that fully meet the qualifications required under each labor category pursuant to this SOW and shall ensure that the Project Personnel’s training remains current with industry standards, so they remain fully qualified to perform the work they are performing under the contract. The Contractor shall bear the cost of ensuring that the Project Personnel meet the requirements under each labor category of the contract. The Government will not reimburse the Contractor for the cost of any basic qualifying training of Project Personnel.

Prior to commencing work under this SOW, each Project Personnel shall have received all training required for the functions to be performed and shall possess a level of knowledge necessary for safety and a reasonable degree of efficiency. Project Personnel shall obtain and maintain all certifications, inspections and licenses necessary or appropriate to perform work contained in this SOW that is assigned to them.

During the first twenty (20) business days of the transition/phase-in period, the Contractor shall develop and submit to the COR an initial training roster and training program that demonstrates that all Project Personnel will be trained to at least the minimum standards required by the Government under the contract before or during the transition/phase-in period. Upon request during subsequent performance periods, the Contractor shall furnish the COR with formal documentation of the training provided to Project Personnel, including testing tools for determining whether individual Project Personnel have achieved required competence levels.

C.2.1.4 Contract-Specific Training In addition to job-specific or professional training, the Contractor shall ensure the Project Personnel performing work under the contract are trained on "contract-specific" issues such as USMS ethics, standards of conduct, individual conflicts of interest, confidentiality requirements, security requirements, understanding of the function of reporting, and the importance of quality control and quality assurance. In addition, any project personnel that are managers shall be educated in the terms and conditions of the contract. Except where specifically approved by the CO or COR, the cost of training Project Personnel shall not be payable by the Government.

C.2.1.5 Plans and Programs C.2.1.5.1 Contractor’s Management Plan The Contractor shall develop and submit to the USMS an updated version of the Management Plan submitted with its proposal. The updated Management Plan shall be submitted to the USMS for concurrence no later than twenty (20) business days after the start of the transition/phase-in period. The Contractor shall perform the contract in accordance with the USMS-approved Management Plan. The Contractor must obtain prior written approval by the USMS for any changes to the Management Plan. The Management Plan shall include summaries of SOP for each management and functional area covered under the contract keyed to this SOW.

C.2.1.5.2 Contractor’s Subcontractor Management and Administration Plan The Contractor shall develop and submit to the USMS a complete Contractor’s Subcontractor Management and Administration Plan consistent with the applicable narrative summary previously submitted with its proposal. Such Subcontractor Management and Administration Plan shall be submitted to the USMS for concurrence no later than twenty (20) business days after the start of the transition/phase-in period. This plan shall address in full the Contractor’s Subcontractor Management and Administration program.

The Contractor’s Subcontractor Management and Administration Plan shall include, but not be limited to, a list of all their current or proposed subcontractors (at any tier) that are performing or anticipated to perform work under the contract; the Contractor’s process for ensuring competition in subcontracting; the Contractor’s mechanism for tracking and ensuring completeness and timeliness of subcontractor and vendor cost submissions; the Contractor’s internal cost data reviews and internal validation of cost data provided by subcontractors; the Contractor’s rejection and acceptance protocols for subcontractor and vendor invoices; the Contractor’s pre-approval mechanisms for subcontractors incurring non-recurring or unique contract costs; and process to comply with FAR 52.244- 2 with Alternate I.

The Contractor shall perform the contract in accordance with the USMS-approved Subcontractor Management and Administration Plan. The Contractor must obtain prior written approval by the USMS for any changes to the overall Subcontractor Management and Administration Plan.

The Contractor shall update the applicable sections and lists in the Subcontractor Management and Administration Plan whenever a major subcontractor is added and submit it to the COR for approval not less than ten (10) business days prior to the beginning of such subcontractor’s anticipated performance of any work under the contract.

In order to maintain up-to-date USMS records and for security review purposes, the Contractor shall submit a letter to the USMS of each new non-major subcontractor proposed by the Contractor during the period of performance of the contract. This letter of introduction for the proposed subcontractor shall include at least one (1) business reference, a description of capabilities and capacities, security system details and their proposed rate for the real property management related service for which they are being proposed, not less than ten (10) business days prior to the subcontractor’s proposed work under the contract.

C.2.1.5.3 Standard Operating Procedures The Contractor shall develop and make available electronically to the USMS complete SOPs for each management and functional area covered under the contract consistent with the applicable narrative summaries previously submitted with its proposal. Such SOPs shall be finalized upon review and comment by the USMS. The complete SOPs shall be submitted to the USMS for concurrence no later than twenty (20) business days after the start of the transition/phase-in period. Each functional area SOP shall be identified by the applicable SOW paragraph. SOPs shall describe in detail the procedures for each area and cover such items as quality control, work assignments, approval authorities, workflow, functional relationships and any other information needed to ensure efficient and uniform performance. The Contractor shall perform the contract in accordance with the USMS-approved SOPs. The Contractor must obtain prior approval by the USMS, in writing, for any changes to such SOPs. The Contractor must maintain an electronic version of the USMS-approved SOPs where it is available on demand to both USMS personnel and all Contractor staff at all times.

C.2.1.6 Contractor Interfaces Other contractors may be performing services related to, but not under, this contract. Examples include contractors who provide audit, quality assurance, information technology systems installation or repair, or transportation of seized or blocked general property from the Real Property location for the Government. The Government will facilitate initial contact between contractors performing work on behalf of the Government under other contracts and the Contractor performing work under the contract when coordination or contact between such parties is needed, but the Contractor shall provide all further required coordination with other contractors for any task specified in the contract that relates to or affects any other contracted work.

C.2.2 PERFORMANCE

C.2.2.1 Performance Standards The Contractor shall ensure that all work performed under the contract meets the specifications as set forth in the in this SOW.

C.2.2.2 Quality Assurance The CO, COR, USMS District Office AF personnel, other Government personnel and contracted Quality Assurance Evaluators (QAEs) may perform inspections or other procedures to evaluate the Contractor’s compliance with the contract terms throughout any and all performance periods. Evaluation will be based on the Contractor’s compliance with the requirements. Typical procedures that the Government may use to determine quality include, but are not limited to, random sampling, planned sampling, incidental inspections, and customer complaint inspection.

C.2.2.2.1 Onsite Inspections by the Government The COR is responsible for directing oversight inspections of the Contractor's Real Property management operations under the contract and its facilities (e.g., headquarters (HQ), maintenance shops, etc.) operated directly or through subcontractors for compliance with the SOW and the Contractor's own operational procedures and handbooks. The Contractor will be notified prior to the inspection. The notification will include the following information:

· The names and title of the inspection official(s)

· The Contractor, subcontractors and vendors facilities to be inspected

· The date of the visit The Contractor shall ensure that all Government persons involved in conducting an evaluation inspection, or those claiming to be, present to the Contractor’s representative the following: (1) a Disposition Order signed by the CO or COR and/or (2) valid picture identification. The Contractor shall ensure that all individuals involved with any such evaluation inspection sign-in on the appropriate access log for each facility visited.

The results of the oversight performance inspections will be provided by the COR to the Contractor within five (5) business days after completion of the oversight performance inspection.

C.2.2.2.2 Contract Discrepancy Reports (CDR) The Government will record surveillance inspections and issue a CDR to the Contractor when the Contractor’s performance is unsatisfactory as defined by the provisions of this SOW. The Contractor shall reply in writing to the COR and CO within ten (10) business days from the date the CDR was received, giving the reasons for the unsatisfactory performance, corrective action(s) taken and procedures to preclude recurrence.

C.2.2.2.3 Participation in Government Quality Assurance The Contractor shall participate in Government quality assurance programs and provide support to the Government’s quality assurance staff (e.g., data collection and inventories).

C.2.2.2.4 Government Inventory The Chief Financial Officers (CFO) Act of 1990 requires the preparation of annual audited financial statements. Therefore, AFP and DOJ are mandated to conduct an annual reconciliation inventory of seized assets in the custody of the USMS. The auditor selected and contracted for by the USMS Inspector General (OIG) will oversee the inventory process.

Oversight and inspections will be performed by USMS, AFF participating agencies, OFAC and/or the independent auditor selected by USMS. The Contractor will be required to assist in facilitating the entry into seized and forfeited real property assets during pre-planned site visits by these auditing entities. The Contractor, or sub-contractor, may be required to answer questions by the auditors regarding the condition, care, and history of a particular real property asset. Lastly, records and timelines regarding a seized and forfeited asset may require the assistance of the Contractor to provide to auditors. The scheduled dates and list of real property assets to be included in site visits will be given by the USMS to the Contractor in advance of visits to allow time to schedule Contractor related personnel to be onsite (should they be required).

The right of auditors to enter the Contractor, subcontractor, and vendor premises will be established by a letter from the CO. The letter will also notify the Contractor of the date(s) of the annual Real Property inventory(ies) and due date(s) of the documentation of the overall inventory reconciliation. The turnaround time of these records requests varies, but the USMS will provide as advanced notice as they are given by the auditors to provide information or to provide access to records.

C.2.2.2.5 Property Review Meetings The Contractor’s Project Manager shall meet quarterly with USMS to review each property managed. These meetings will be held at the USMS Headquarters Office. Any meetings requested by USMS outside of Contractor’s normal business location shall be paid for by Contractor via the Travel Reimbursement CLIN. Real Property review meeting topics shall include, but are not limited to, review, and analyses of property conditions and management problems, title clearance issues, status of dispositions, etc. Other topics for the meeting will be informed by the Property Status Report. At these meetings, the Government and the Contractor will discuss potential or actual problems. The Contractor shall take appropriate actions to resolve outstanding issues. The Contractor shall take minutes during each meeting and shall provide a copy to the COR and CO within two (2) business days of such a meeting.

C.2.2.2.6 Technical Issues/Performance Meetings The Contractor’s Project Manager shall meet with the COR to review contract performance quarterly. These meetings will be held at the USMS HQ Office.

Performance evaluation meeting topics shall include, but are not limited to, review and analyses of key performance indicators, analyses of process deficiencies, problem discussion and resolution and reinforcement of quality and timely performance of contract requirements. At these meetings, the Government and the Contractor will discuss the Contractor’s performance as viewed by the Government, using this SOW as a guide, and potential or actual problems. The Contractor shall take appropriate actions to resolve outstanding issues. The Contractor shall take minutes during each performance evaluation meeting and shall provide a copy to the COR and CO within two (2) business days of such a meeting.

C.2.2.2.7 Agency Interest The Contractor’s Project Manager (or alternate) shall personally contact the USMS the next business day after events or occurrences or having learned of an event within the scope of the contract that negatively affects satisfactory performance of the contract. If the initial notification was made verbally via telephone or an online meeting platform the Contractor shall follow up, via e-mail, with a detailed written report to the COR within 24 hours of the following business day (if the event happened on a holiday or weekend) of the discovery of the events or occurrences.

C.2.3 RISK MANAGEMENT

The Contractor shall implement an effective Risk Management (RM) program to minimize or eliminate losses that can result from a lack of control over risk events (e.g., loss, damage and theft). The Government has defined RM, adverse incidents and adverse conditions in RM encompasses the areas of security and loss prevention, the safety of individuals, and the Contractor’s program of self- inspection through a comprehensive quality control program. The Contractor shall ensure that all these elements are addressed in its RM Plan and administered through its RM program. The risk management requirement flows down to subcontractors.

C.2.3.1 Risk Management Plan The Contractor shall develop and submit a complete RM Plan to the USMS within twenty (20) business days after the start of the transition period. The RM plan shall be consistent with the narrative RM summary previously submitted with the Contractor’s proposal. The Contractor shall perform work under the contract in accordance with the USMS-approved RM Plan. The Contractor shall address all comments received from the Government on the RM Plan when revising it for distribution to its Project Personnel. The Contractor must obtain written approval by the USMS for any future changes to the RM Plan.

The RM Plan and proposed actions, processes and policies shall apply to the Contractor, Contractor staff and agents, subcontractors and subcontractor staff used for performance of work under the contract. The Contractor shall:

· Describe the performance challenges that the Contractor expects to confront and the nature and magnitude of the risks that will arise out of those challenges;

· Describe contingent, critical events and alternative outcomes that could prevent satisfaction of the requirements and state the probability of their occurrence;

· Describe specific decisions that the Contractor and the Government will have to make to fulfill the requirements of the contract; and

· Include the Contractor’s updated Quality Control Program and Plan (see Section C.2.3.2 below), Project Personnel security clearance process (see Section C.2.4.1 below), and Disaster Recovery and Continuity of Operations Plans (see Section C.2.3.5 below), including a data systems recovery plan, contingency data and communications operations plan The RM Plan is a living document that must be updated annually or more often as conditions change or as new threats are identified. The Contractor shall distribute any updated RM Plan that has been approved by the USMS to all Project Personnel within five (5) business days of receipt of USMS approval of the updated RM Plan. (See Section C.2.4 below for the Security Program and Plan requirements to be incorporated into the overall RM process under the contract.)

C.2.3.2 Risk Management Report On a quarterly basis, the Contractor shall prepare and distribute the RM Report to the USMS describing the status of the RM program. The RM Report shall be distributed within five (5) business days of the end of each quarter. The report shall identify the type of risk, the assessment and the strategy for minimizing or eliminating the risk.

C.2.3.2.1 Quality Assurance Program The Contractor is responsible for the quality of all products and services provided to the Government under the contract, to include those products and services provided by Contractor staff, agents of the Contractor, subcontractors or subcontractor staff (at any tier). The Contractor shall re-perform work that does not meet contract requirements, unless otherwise directed by the COR. Re-performance of work shall not constitute an excusable cause to miss any timeliness standards or deadlines. The Contractor shall absorb the cost of any required rework, and such rework shall not be charged back to, or reimbursed by, the Government.

C.2.3.3 Contractor Quality Control Plan (QCP) The Contractor shall develop and implement a proactive QCP that describes the internal staffing, procedures and programs that the Contractor shall use to ensure that the services/products being provided meet the quality, quantity, timeliness, responsiveness, customer satisfaction and other requirements of the SOW the Contractor shall develop and submit to the USMS for approval a complete QCP consistent with the applicable narrative summary previously submitted with the Contractor’s proposal. The Contractor shall submit such QCP to the USMS during the transition/phase-in period as an appendix to the updated RM Plan. Any subsequently proposed changes to the QCP shall be approved by the CO or COR prior to their implementation. The CO and COR will review any proposed changes and respond back to the Contractor with approval, rejection, and/or comments no later than five (5) business days after receipt. Once the USMS has approved the QCP, the Contractor’s approved QCP will be incorporated in full and made a part of the contract via modification.