Construction Inspection Services - Draft PWS.pdf

1 September 2024

Performance Work Statement (PWS)

Construction Inspection Services

10/17/2024

2 September 2024

Vision Statement

1 General Information

1.1 Scope of Work ............................................................................... Error! Bookmark not defined.

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................................................................... Error! Bookmark not defined.

3.2 Facilities

3.3 Equipment

3.4 Materials and Information

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

3 September 2024

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 Lead-Based Paint Inspections

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Related Documents

8 Performance Requirements Summary………………………………………………………………..…………………19

4 September 2024

Performance Work Statement (PWS)

Construction Inspection Services

Vision Statement

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

1 General Information

1.1 Scope of Work

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

1.2 Background

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

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

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

Section 232/223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Nursing Homes and Assisted-Living Facilities

Section 232/241a Supplemental Loans

HUD is required to perform periodic property inspections of Office of Healthcare Programs (OHP) projects throughout the entire construction and/or rehabilitation phase and during the warranty periods. Also, HUD is required to assist other parties (owner, sponsor, builder, Supervisory Architect, mortgage company, etc.) in utilizing HUD forms and procedures relative to the construction phase of OHP project development.

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

5 September 2024

1.3 Constraints

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

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

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

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

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

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

24 CFR Part 100.205 Fair Housing Accessibility Guidelines

FED-STD 795 Uniform Federal Accessibility Guidelines

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

AIA-B108 Owner-Architect Agreement

AIA-G710 Architects Supplemental Instructions (ASIs)

AIA-G711 Architects Field Report

HUD-5372 Construction Progress Schedule

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

HUD-91124-ORCF Design Architects Certification

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

HUD-92408-ORCF Amendment to Document AIA-B108

HUD-92412-ORCF Working Capital Escrow Agreement

HUD-92485-ORCF Permission to Occupy Project Mortgages

HUD-11 Record of Employee Wage Interviews

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

HUD-92442-ORCF Construction Contract

6 September 2024

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

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

HUD-95379-ORCF HUD Representative Trip Report

1.4 Non-Personal Services

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

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:

Base Year: March 1, 2026 to February 28, 2027

Option Year One: March 1, 2027 to February 29, 2028

Option Year Two: March 1, 2028 to February 28, 2029

Option Year Three: March 1, 2029 to February 28, 2030

Option Year Four: March 1, 2030 to February 28, 2031

1.6 Place of Performance

The services to be performed under this contract shall be performed at the construction job sites in the United States.

1.7 Hours of Operation

The Contractor is responsible for providing services between the hours of 8:00 AM to 4:30 PM, local time (where project is located), Monday thru Friday except for Federal holidays or when

7 September 2024 the Government facility is closed due to local or national emergencies, administrative closing, or similar Government directed facility closings. The Government reserves the right to change hours of operation or restrict contractor access. Government agencies will not be available during scheduled holidays, inclement weather, weekends, and after duty hours.

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

1.8 Special Qualifications

The Contractor is responsible for ensuring the contract manager, alternate contract manager and inspectors are thoroughly familiar with all HUD programs and procedures as they apply to the duties of the HUD Representative (also called "HUD Inspector") in HUD handbooks, specifically those listed in Section 1.3 and that they remain abreast of all changes to applicable handbooks, publications and forms. As the HUD Representative on the project site, the Contractor shall be responsible for assisting other parties (owner, sponsor, builder, supervisory architect, mortgage company/lender, etc.) in utilizing HUD forms and procedures relative to the construction phase of the residential care facility project development. The Contractor/Project Manager shall possess three years of recent experience in managing and overseeing employees who perform construction inspection activities, or a total of five years of experience in overseeing employees performing a combination of residential care facility, and commercial construction inspections, with a minimum of one of those five years being residential care facilities. The contract manager and alternate must also have at least three years of satisfactory experience in performing construction inspections which demonstrate the knowledge and experience listed below for inspectors.

1.9 Post Award/Kickoff Conference

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

1.10 Status Meetings

The Contracting Officer, Contracting Officer’s 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 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

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

PWS.

8 September 2024

1.12 Transition-In

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

The Contractor shall furnish Transition-In and/or Transition-Out Plan as required by the solicitation. The Contractor shall provide sufficient experienced personnel during the Transition period to ensure that the services called for by this PWS are maintained at the required level of proficiency. The Contractor shall participate in transition meetings with the Government as required.

The Contractor shall submit their Transition-In Plan with their proposal. The transition in plan shall include a description of the transition activities to be carried out and a timeline for the implementation and completion of all transition-in activities. As a successor, the Contractor shall have sufficient personnel on board to the Government, during the 30-day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to a program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements 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. The Transition-In Plan shall be submitted with the Contractors proposal.

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 inspector and successor inspector shall together visit preselected projects under construction in order to introduce the successor inspector to the Owner, Architect and Contractor; become familiar with the stage of construction, progress of the work and construction schedule of the project; review any issues with the Builders organization, operations and supervision, or the Architects supervision or services; discuss any delays, disputes, claims or non-compliances and any adjustments to payment requests; identify the location of the posted Wage Decision and posters; and confirm meeting dates, including time and location. The incumbent Contractor shall aid the successor in the development of plans, procedures and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

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

9 September 2024

2 Definitions and Acronyms

2.1 Definitions

Acceptable Quality Level (AQL) Contractors performance level required by the Government.

This is also known as the Performance Standard.

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

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

Borrower Elected Repairs - consist of all repairs other than critical or non-critical repairs and may be completed after endorsement.

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

Business/Workdays Every official workday of the week which are days between and including Monday to Friday. This does not include public holidays and weekends.

Calendar Day Any day of the week.

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

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

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

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

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

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

10 September 2024

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

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

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

Contracting Officers Representative (COR) - An employee of the U.S. Government appointed by the Contracting Officer (CO) 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 authority to change the terms and conditions of the contract.

Critical Repairs – repairs documented by Lender’s Needs Assessor, as identified in Section II, Production, Chapter 10.16 of HUD Handbook 4232.1 REV-1. Critical Repairs must be completed prior to endorsement.

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

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

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

Final Completion of the Work (Individual Project Completion) - the time when all work under the owners/sponsors construction contract is 100 percent complete, except work items beyond the builders control which are accepted as delayed items of completion. It is formalized as of the date the Contractor signs the final HUD-95379-ORCF, HUD Representative Trip Report, provided that the trip report is subsequently accepted by the SCOR.

Government Furnished Property (GFP) - Property in the possession of, directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract.

Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes Contractor-acquired property if the Contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

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

11 September 2024

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

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

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

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

Item(s) of Delayed Completion - construction-related work items beyond the builders control to complete and identified by the Contractor at final completion of the work.

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

Non-critical Repairs – consist of all repairs other than critical repairs and may be completed after endorsement.

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

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

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

Pre-Construction Conference (PCC) - the meeting attended by the Contractor; builder; builders subcontractors (if possible); Supervisory Architect; owner/sponsor; consultants (if any);

mortgage company and HUD ORCF staff to discuss the construction contract documents and applicable HUD requirements. Required for every project and must precede the initial start of construction.

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

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

12 September 2024

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

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

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

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

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

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

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

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

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

Subordinate Contracting Officers Representative (SCOR) - An employee of the U.S.

Government appointed by the Contracting Officer (CO) to perform contract administration activities 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

13 September 2024 constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

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

2.2 Acronyms

AIA American Institute of Architects

AST Alaska Standard Time (U.S.)

AQL - Acceptable Quality Level

ASI Architects Supplemental Instructions

CDR Contract Deliverable Requirement

CFR - Chief Information Security Officer

CIO or OCIO Office of the Chief Procurement Officer of HUD

CLIN- Contract Line Item Number

CO - Contracting Officer

COR Contracting Officer Representative

CPARS Contractor Performance Assessment Reports System

CPO - Office of the Chief Procurement Officer

CR - Change Request

CS - Contract Specialist

CST Central Standard Time (U.S.)

EAC - Estimate at Completion

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

FAR - Federal Acquisition Regulation

FHA - Fair Housing Accessibility

FHAG - Fair Housing Accessibility Guidelines

FY - Fiscal Year

14 September 2024

GAO - U.S. Government Accountability Office

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

HUDAR - HUD Acquisition Regulation

HUD CM - HUD Construction Manager

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

HUDATWORK HUDs Intranet Website and related web pages

HUD Web - HUDs Intranet Website and related web pages

IAW - In Accordance With

IG or OIG - Inspector General (Office of)

IPT - Integrated Project Team

IRS - Internal Revenue Service

ISP - Information Strategy Plan

ISSO - Information System Security Officer

IT - Information Technology

ITaaS - Information Technology as a Service

IV&V - Independent Validation and Verification

LAN - Local Area Network

LO - Lot

LOA - Level of Assurance

MO - Month

MST Mountain Standard Time (U.S.)

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

OCI - Organizational Conflict of Interest

OIG - Office of Inspector General

OMB - Office of Management and Budget

OHP - Office of Healthcare Programs

15 September 2024

ORCF - Office of Residential Care Facility

PAR - Performance and Accountability Report

PD - Project Description

PDF - Portable Document Format

PI - Private Information

PII - Personally Identifiable Information

PM - Project Manager

POA&M - Plan of Action & Milestones

POC- Point of Contact

PRS - Performance Requirements Summary

PST- Pacific Standard Time (U.S.)

PWS - Performance Work Statement

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

SCOR - Subordinate Contracting Officers Representative

SF- Standard Form

SORN - System of Records Notification

U.S.C. - United States Code

3 Government-Furnished Property and Services

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

3.1 Government Services

Government Services will not be provided.

3.2 Facilities

Workspace at the construction site for HUD personnel and the Contractor (as HUDs Representative), will be provided by the Builder. The Contractor has the right of entry and free

16 September 2024 access to assigned construction sites and to inspect all work and materials, equipment and fixtures furnished, installed or stored in and about the project at all normal working times during construction. The Contractor shall immediately notify the COR/SCOR if it is denied such right of entry and free access. The Contractor shall not attempt to resolve any dispute regarding entry and free access unless specifically instructed by the COR/SCOR to do so.

3.3 Equipment

Equipment will not be provided.

3.4 Materials and Information

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

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

3.4.1.1 Project Description

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

3.4.1.3 Construction contract between the builder and the owner/sponsor

3.4.1.4 Supervisory Architects Contract, AIA Document B108 with HUD Amendment

3.4.1.5 Drawings, specifications, and contract pertaining to offsite improvements

3.4.1.6 Escrow Agreement for Offsite Facilities

3.4.1.7 Construction Progress Schedule

3.4.1.8 Escrow Agreement for Demolition

3.4.1.9 Project Capital Needs Assessment (PCNA)

3.4.1.10 Additional pertinent documents

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

3.4.1.12 Project Description

3.4.1.13 Firm Commitment, or Escrow Agreement

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

3.4.1.15 Specifications and drawings (if provided by the owner)

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

17 September 2024

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

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

3.5 Quality Assurance (QA)

The Government shall evaluate the 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 and shall ensure compliance with Federal Information Systems Security standards and policies.

4.2 Equipment

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

4.3 Materials

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

4.4 Contractor Responsibilities

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

The Contractor shall provide a Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Project Manager.

These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel.”

18 September 2024

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

These points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm, Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.5.1 Employees

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

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

but, in any event, prior to any inspector performing inspections. The contract manager and alternate contract manager shall be considered Key Personnel. The Contractor shall not substitute inspectors or Key Personnel without prior approval of the Contracting Officer.

4.5.2.2 The Contractor Manager, and all inspectors shall possess (3) three years of satisfactory construction inspection experience related to the specific inspection tasks required by this contract. The inspection experience for the inspectors must be recent (within the past six (6) years). The inspection experience for the contract manager and alternate manager does not have to be within the last 6 years; only the experience in managing and overseeing as indicated above. Satisfactory experience is defined as three years of recent residential care facility construction inspection activities or five years of experience in a combination of residential care facility, and commercial construction inspections, with a minimum of one of those five years being residential care facilities. Specific projects where residential care facility experience was obtained will be listed with references who can confirm the experience. Inspection experience shall cover all activities and phases of a construction project, and not just a single activity or discipline. The experience shall demonstrate a record of performing acceptable construction inspections and related construction contract administration tasks as required by this contract.

The experience shall clearly demonstrate the inspector's knowledge of and familiarity with construction, construction inspection, and construction administration. The experience shall also demonstrate knowledge of national building codes and standards, current standard construction methods and procedures, HUD regulations and handbook requirements sufficient to identify

19 September 2024 compliance by the owner, builder and the supervisory architect. The experience shall clearly demonstrate the inspector's knowledge of and familiarity with Federal Accessibility Standards such as; Fair Housing Act, Fair Housing Accessibility Guidelines, Americans with Disability Act Title III & 504 (UFAS or Deeming Notice for use of ADA until UFAS is updated). The complexity of some projects may mandate that they be assigned to an inspector whose background indicates the ability to perform those inspections.

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

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

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

REV-1.

4.6 Identification of Contractor Employees

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

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

20 September 2024

5 Specific Tasks

5.1 General Overview

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

Performance Standards

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

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

5.2 Detailed Task Description

5.2.1 Task 1: Construction Inspections – Project Monitoring

Performance Standards

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

HUD.

AQL: Zero deviation from the standard

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

AQL: Zero deviation from the standard

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

AQL: Zero deviation from the standard

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

AQL: Zero deviation from the standard

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

5.2.1.1 Pre-Construction Activities

The project Lender will be responsible for setting up and conducting the HUD Pre-construction meeting. SCOR will provide the Contractor with the Project Description prior to the HUD Pre-construction conference. The Contractor shall attend, the HUD Pre-construction conference, and afterwards submit summary meeting notes and list of attendees as well as the name and contact info of the inspector who will be assigned to the project on a HUD Representative Trip Report (HUD-95379-ORCF) (A002) (photos not required) to the SCOR within five (5) business

21 September 2024 days of the conference. SCOR will provide materials related to the assignment of projects (under construction, under warranty, or new/rehabilitation projects or repairs) to Contractor and Contractor shall confirm the initial review of the Contract document-plans and specifications, etc., prior to field inspections as part of the Pre-construction Conference Trip Report. The Contractor shall attend the Supervisory Architects/Builders Pre-construction meeting in the field, should one be held, and submit a HUD Representative Trip Report (HUD-95379-ORCF) (A002). This meeting will typically occur during the Contractors first trip to the project site.

5.2.1.2 Monthly construction inspections/site-visits/site-meetings for construction projects under Section 232

The Contractor shall visit the job-site and inspect the project at a frequency determined by OHP or other frequency as directed by the SCOR/COR to evaluate, observe, and report on construction progress and actual conditions on the job-site, construction activity and construction inspection tasks described at paragraph 5.1.1.3, below. The Contractor shall schedule the monthly inspection to coincide with the monthly submission of the HUD-92448-

ORCF (A003).

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

PM.

5.2.1.3 Construction Start Letters (A001)

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

5.2.1.4 Construction Progress Inspections

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

5.2.1.4.1

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

22 September 2024 builders administration, services and organization, and assist the builder with HUD requirements.

5.2.1.4.2

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

5.2.1.4.3

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

5.2.1.4.4

Evaluate conformance with builders progress schedule.

5.2.1.4.5

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

5.2.1.4.6

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

5.2.1.4.7

Report whether the Contractors Requisition for Payment is reasonable.

5.2.1.4.8

Discuss and report on:

o All issues included in the construction contract.

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

23 September 2024 o All non-compliance in the execution of the contracts, including the builders, Supervisory Architects, and construction contract.

o Labor and Equal Employment Opportunity compliance.

5.2.1.4.9

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

5.2.1.4.10

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

5.2.1.4.11

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

o Definition of Final Completion of Work per the builder and owners construction contract.

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

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

5.2.1.4.12

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

5.2.1.4.13

Meet at the project site or local HUD office with the COR/SCOR or designee to resolve project issues, receive updated training and assist and cooperate with any HUD official conducting an

24 September 2024 on-site review of the project construction and/or construction contract administration for the purpose of assessing performance or other areas of concern.

5.2.1.5 HUD-95379-ORCF (A002)

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

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

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

5.2.1.5.1

Evaluate and report on the builders organization, operations and supervision.

5.2.1.5.2

Evaluate and report on the Supervisory Architects administration of the construction contract and services in…