Draft_MLR_ SOW DR-4860-KY_7.23.2025.pdf

DR-4860-KY

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STATEMENT OF WORK:

DR-4860-KY MULTI-FAMILY LEASE & REPAIR PROGRAM

UNITED STATES DEPARTMENT OF HOMELAND SECURITY

FEDERAL EMERGENCY MANAGEMENT AGENCY

1. PURPOSE

The Department of Homeland Security (DHS) Federal Emergency Management Agency (FEMA) has a requirement for the Multi-Family Lease and Repair (MLR) program, and shall be made available to individuals and households who are displaced from their pre-disaster residence or whose pre-disaster primary residence is rendered uninhabitable as a result of the damaged caused by a major disaster, and who are unable to meet the expenses associated with procuring housing by other means. Note: The term Contractor will be used to refer to the Property Owner who has a formal contract with the FEMA; and MLR will be interchangeable with FEMA Multi-Family Lease or FEMA Multifamily Lease program.

2. BACKGROUND

On FEBURARY 24, 2025, the President declared major disaster DR-4860-KY for the State of KENTUCKY as a result of Severe Storms, Straight-line Winds, Flooding, Landslides, and Mudslides. This declaration authorized FEMA to provide financial assistance and direct services, under Section 408 of the Stafford Act, to individuals and households, “who as a direct result of a major disaster have necessary expenses and serious needs in which the individuals and households are unable to meet such expenses or needs through other means.” The FEMA executed a direct housing mission to include the MLR program under section 408 of the Stafford Act.

3. TASK 1 – REPAIR/ RENOVATION PORTION OF CONTRACT.

3.1. This MLR project is being solicited to repair and renovate housing units identified for the MLR program in [SPECIFIED COUNTY], with the property name [PROPERTY NAME] at [PROPERTY ADDRESS] with the following units break down:

Unit No. ADA/AFN # of Bedrooms # of Bathrooms SQ Ft Upper / Lower

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bhuffin2 Sticky Note

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The construction work portion of the contract consists of, but not limited to, furnishing all permits, materials, labor, plant, tools, transportation, equipment, testing services, quality control, and incidentals required to accomplish the renovation/repair of these units at

[PROPERTY NAME, CITY, COUNTY].

3.2. The Contractor shall provide from a qualified Construction company licensed to do business in Kentucky, a detail cost estimate with scope of work per unit, number of skilled workers for each stage of work, and a detailed phased Construction schedule, to include a phase and timeline for obtaining permitting. The Contractor shall perform all negotiated and approved repair/improvements to each unit. Each property/unit repair improvement to make the units safe, secure, sanitary, and functional. Safe and secure means secure from hazards or threats to occupants. Sanitary means free of health hazards. Functional means an item or home capable of being used for its intended purpose.

3.3. The Contractor(s) performing the repairs/improvements shall be licensed in the State of KENTUCKY and bonded building contractors to cover the scope of work.

3.4. All repairs shall be made in a manner consistent with current local building codes, standards, permitting, inspection requirements, and all applicable environmental planning and historic preservation (EHP) laws and regulations. The agreed to Contract price for the Construction portion of the Contract for necessary repairs and renovations, will offset the amount paid for the Multifamily Lease portion of the Contract to pay for monthly rent, utilities, furniture, Property Management fees, etc., to provide a turn-key furnished housing unit.

3.5. Option: The Contractor shall provide pricing as an option to repair and make Americans with Disabilities Act (ADA) conversions to [SPECIFIED UNITS]. Contractors shall provide the quotes along with the detailed scope of work for these units with and without ADA conversions to include the projected construction timelines. If required, the cost will be negotiated before award.

4. TASK 2 – MULTIFAMILY LEASE SERVICES PORTION OF CONTRACT.

4.1. Upon the completion of repairs/renovations, and any ADA/AFN improvements to the rental unit, and acceptance of the repairs by the FEMA, the FEMA will have the exclusive use of the designated units for the Contract Period of Performance, to provide temporary housing to displaced FEMA Applicants eligible for temporary housing assistance. Once the housing unit is no longer needed by the FEMA, the Contracting Officer (CO) will formally return the unit back to the Contractor.

4.2. The Contractor and designated FEMA personnel shall inspect and evaluate each completed property to determine the property is safe, secure, sanitary, and functional equivalent to HUD Quality standards. The following items are Property Management services the Contractor is responsible for and shall maintain for the Contract Period of Performance.

4.2.1. Repaired/Renovated Properties for the FEMA use. The Contractor shall rent the repaired/renovated housing units as a residential property.

4.2.1.1. The Contractor may only rent properties that comply with federal, state, and local occupancy standards, to provide complete and independent living facilities for

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Page | 3 one or more persons identified by the FEMA, including permanent provisions for living, sleeping, cooking, and sanitation. All utilities, appliances, and furnishings provided with the property must be safe and functional.

4.2.1.2. The Contractor shall prioritize properties that include accessibility features or can easily be conformed to accessible requirements without requiring FEMA to remove the improvements at the end of rental agreement; and are in proximity to accessible public transportation, schools, fire and emergency services, grocery stores, and health care services.

4.2.1.3. The monthly rent cost per unit may not exceed the amounts established by the U. S Department of Housing and Urban Development (HUD) for the current Fiscal Year (FY) 2025, unless an increase is approved by the Contracting Officer (CO) prior to renting the unit. Reference FY 2025 Fair Market Rent (SOW Attachment 9) rate document for current FY 2025 HUD rates per KENTUCKY counties.

Reference Figure 1 below for County sample.

4.2.1.4. If required, the Government (FEMA) may establish a Contract Line-Item Number (CLIN) for one (1) month security deposit not-to-exceed one (1) month rent.

The security deposit will be held by the Government in the event any damages (other than normal wear and tear) occur and will only be invoiced based on the actual costs of damages approved by the Contracting Officer prior to payment. All damages above the cost of one month’s rent shall be the responsibility of the Contractor, and/or tenant (FEMA applicant).

Figure 1 - Maximum Monthly Rent FY2025 Fair Market Rent

FMR 1 BR 2 BR 3 BR 4BR

Breathitt $729 $867 $1,204 $1,261

Clay $740 $867 $1,215 $1,453

Estill $674 $867 $1,090 $1,202

Floyd $688 $903 $1,088 $1,197

Harlan $685 $867 $1,129 $1,149

Johnson $661 $867 $1,125 $1,296

Knott $677 $867 $1,045 $1,149

Lee $661 $867 $1,158 $1,194

Leslie $783 $867 $1,190 $1,194

Letcher $755 $867 $1,215 $1,337

Martin $677 $867 $1,085 $1,194

Pike $771 $981 $1,182 $1,431

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Figure 1 - Maximum Monthly Rent FY2025 Fair Market Rent

FMR 1 BR 2 BR 3 BR 4BR

Perry $718 $942 $1,135 $1,249

4.2.2. Property Inspections. The Contractor and FEMA shall inspect each renovated property prior to renting, to ensure compliance with HUD’s Housing Quality Standards (HQS) and with Federal, State, and local occupancy standards, prior to executing lease agreements with the FEMA housing applicants. Each inspection will also verify property owner’s capability to provide all property management services, including building maintenance. A copy of the Contractor signed inspection record confirming the property complies with Federal, State, and local occupancy standards; Multifamily Lease Property Inspection Checklist (HUD) (SOW Attachment 4) is required at the end of the inspection and prior to renting the unit. The completed HUD inspection checklist and lease documents shall be submitted prior to renting the units.

4.2.3. Contacting and FEMA Matching Applicants. FEMA will identify eligible applicants for the Multifamily Lease and Repair program and may provide the following applicant information to Contractor: Applicant name, Co-applicant names (if applicable), damage dwelling address, mailing address, phone numbers, and e-mail addresses. FEMA will contact the applicant and coordinate with them to match the Multifamily Lease unit that fits the needs of the applicant. The FEMA will also inform each applicant of the next steps towards their placement in a Multifamily Lease Housing Unit.

4.2.3.1. If a background check is required, the Contractor shall notify FEMA within one

(1) business day in each instance regarding an applicant being denied due to adverse information in their background check. The FEMA will prioritize properties that do not require a background check requirement for inclusion in the program. The FEMA cannot pay for background checks.

4.2.4. Execute Lease Agreements. The Contractor shall complete and execute lease agreements with FEMA’s applicants through completion of the following documents within three (3) business days of completion. The Contractor shall provide the Contracting Officer’s Representative (COR) appointed by the Contracting Officer on the Contract with the following documentation:

4.2.4.1. MLR Contract Terms and Conditions (SOW Attachments 1)

4.2.4.2. MLR Lease Occupant Lease Agreement (SOW Attachment 2)

4.2.4.3. MLR Lease Addendum (SOW Attachment 3)

4.2.4.4. A copy of the lease agreement between the Contractor and the property owner.

4.2.5. Move-in of Applicants (License-In). The Contractor and FEMA will be responsible for the move-in process for applicants into Multifamily Lease units. The Contractor and FEMA shall conduct a walkthrough of the temporary housing unit with the applicant and ensure all the necessary paperwork is completed prior to completing a move-in.

4.2.5.1. A copy of the MLR Contract Terms and Conditions (SOW Attachment 1)

4.2.5.2. A copy of the MLR Lease Occupant Lease Agreement (SOW Attachment 2); and

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4.2.5.3. A copy of the MLR Temporary Housing Agreement (SOW Attachment 5).

4.2.6. Lease Agreement Payments. The FEMA shall make monthly rental payments, if required, (TBD based on the construction cost and negotiated rate by the Contracting Officer) to the Contractor in accordance with the Contract for each property awarded and the terms negotiated by the Contracting Officer and the Contractor for each housing unit.

4.2.7. Terminate Housing Units. FEMA will be responsible for any termination of assistance to applicants. The Contractor shall be responsible for eviction of applicants whose assistance has been terminated by FEMA. FEMA may terminate the lease for the housing unit by providing the Contractor with a written thirty (30) calendar day Notice to owner of FEMA Decision to Terminate Occupancy (SOW Attachment 6).

4.2.8. Available Units: If a unit becomes vacant during the term of the contract/period of assistance, FEMA reserves the right to place another eligible FEMA Applicant in the unit.

As FEMA notifies the Contractor of the option to place a new FEMA Applicant in the unit, the Contractor shall make the unit ready for occupancy for the new applicant.

4.2.9. Utilities. The cost of essential utilities (water/electricity/fuel) shall be included in the monthly rental rate established in the Contract, as a Not-to-Exceed (NTE) Firm-Fixed- Price (FFP) rate. FEMA Applicants are not responsible for obtaining their own utility accounts and paying for utilities of any kind, while the FEMA is paying for the housing unit.

4.2.10. Maintenance and Other Services. All maintenance and services, such as trash pickup, parking, lawn care, pest control, building maintenance, and storm preparations, shall be the responsibility of the Contractor.

4.2.10.1. Emergency Repairs are repairs that resolve or mitigate the immediate threat or imminent danger to the health, safety, or security of the Unit Occupant and the Unit/property, such as HVAC, water, electricity, and elevators not working properly.

The COR shall be contacted within two (2) hours of notification of the issue, and work shall be initiated and completed within six (6) hours of official notification by the Government.

4.2.10.2. A complete emergency maintenance repair is defined as the imminent threat to life or property and is either completely repaired or temporarily repaired, so that a permanent repair can be completed as regular maintenance.

4.2.10.3. In the event of a death in the Unit, the Contractor shall properly clean the Unit prior to another applicant being placed in the Unit, such as the proper biohazard clean up. The Contractor is responsible for securing the applicant’s personal belongings prior to the cleaning and provide them to the FEMA representative.

4.2.10.4. All Non-Emergency Repairs are repairs that are not an immediate threat or imminent danger to the health, safety, or security of the Unit Occupant and the Unit/property. The COR shall be contacted within one (1) day of notification of the issue, and work shall be initiated and completed within three (3) days of official notification by the Government.

4.2.10.5. The Contractor shall submit a status report monthly which includes all maintenance issues ongoing or completed.

4.2.11. Access and Functional Needs After Repair. A provision allowing the Contractor to

Page | 6 make, at FEMA’s expense, reasonable modifications, or improvements to the property to provide a reasonable accommodation for an eligible applicant with a disability or other access or functional needs will be included in the Contract. All potential modifications or improvements will be coordinated with the Contracting Officer and the COR, and the prior approval from the FEMA Contracting Officer is required prior to the execution of work or incurrence of costs. All costs must be approved by the Contracting Officer and a CLIN established in the Contract to track and pay this change.

4.2.12. Unit Item Inventory Requirements. Contractor shall furnish each unit using the Attachment 10: Multifamily Lease Furniture Validation Checklist DR-4860-KY.

Contractor shall log an inventory of each item they may want to file a replacement or damage claim for and should include the estimated replacement cost for each item. Items not listed on the Vendor Required Unit Furnishing Checklist or are considered a part of the Living Kit are not eligible for reimbursement. No later than thirty (30) calendar days after the scheduled FEMA move out inspection date, the Contractor shall submit any claims for damages and/or replacement of items above normal wear and tear. For Multifamily Lease units, the normal wear and tear period is for the one-year base period.

Additional option periods beyond the one-year base period, shall only be accepted for destroyed items and shall not cover items listed in the living kit (one time purchase items).

Any claims made for damages shall be submitted with pictures of damages and receipts of payment to a third party.

Prior to the FEMA inspection of the unit, the Contractor shall submit a completed Attachment 10: Multifamily Lease Furniture Validation Checklist DR-4860-KY. At a minimum, the following items are required in each Multifamily Lease unit, but the quantity may vary dependent on the number of bedrooms per unit/household composition:

1. Sofa (3-Seater Couch)

2. Loveseat (2-Seater Couch) (only if requested)

3. Coffee Table

4. End Table

5. Dining Table

6. Set of 4 Dining Chairs

7. Range (Stove Top & Oven)

8. Refrigerator

9. Microwave

10. Coffee Maker

11. Toaster

12. Full/Queen Mattress (Default)

13. Full/Queen Box Spring & Frame (Default)

14. Twin Mattress (only if requested)

15. Twin Box Spring & Frame (only if requested)

16. Nightstand

17. Chest of Drawers

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18. Central Air & Heat

19. Water Heater

20. Living Kit

21. 4-Piece Drinking Glassware (Minimum Size of 8 oz.)

22. 12-Piece Dinnerware Set (4 of Each: Bowls, Salad Plates, &

Dinner Plates)

23. 16-Piece Flatware Set (4 of Each: Fork, Knife, Spoon, &

Teaspoon)

24. Set of Non-Stick Cookware with Lids (1 of Each: Fry Pan, 1 Qt.

Saucepan, 2 Qt. Saucepan, & 4 Qt. Dutch Oven)

25. Set of Heat-Resistant Kitchen Utensils (1 of Each: Spatula, Spoon, Turner, Tongs, & Whisk)

26. Full/Queen Mattress Cover (default)

27. Full/Queen Bed-in-a-Bag (2 Pillowcases, & 1 of Each:

Comforter, Fitted Sheet, & Flat Sheet) (default)

28. Standard-Sized Pillows

29. Twin Mattress Cover (only if requested)

30. Twin Bed-in-a-Bag (2 Pillowcases, & 1 of Each: Comforter, Fitted Sheet, & Flat Sheet) (only if requested)

31. Shower Curtain, Rod, & Hooks per Tub

32. 6-Piece Towel Set (2 of Each: Bath Towels, Hand Towels, &

Washcloths)

33. Weather Radio

34. ABC Fire Extinguisher

5. REASONABLE ACCOMODATION / ADA MODIFICATION

The FEMA shall be allowed to make reasonable Americans with Disabilities Act/Access and Functional Needs (ADA/AFN) accommodations conversions and/or modification repairs or improvements during the construction period of performance, without requiring FEMA to remove the conversion/improvements at the end of contract period. Reference Section 3.5 above.

6. BACKGROUND CHECKS FOR ELIGIBLE HOUSING APPLICANTS

During the period of assistance, the contractor shall agree to waive credit screening and criminal background for eligible applicants. The Contractor will not consider the Applicant’s credit history when screening the Applicant’s suitability for occupancy.

7. DESIGNATION OF CONTRACTING OFFICER'S REPRESENTATIVE (COR)

The Contracting Officer will appoint a qualified Contracting Officer's Representative (COR) for

Page | 8 the purposes of technically administering the Contract – Construction and Rental phases.

A copy of this appointment letter will be provided to the Contractor. All matters concerning this Contract, or any additional performance against this Contract must first be approved by the Contracting Officer only. This in no way authorizes anyone other than the Contracting Officer to commit the Government to changes in terms of the contract.

8. DELIVERABLES

Within seven (7) calendar days after Contract award, or as otherwise directed by the CO, the Contractor shall review the deliverables register below and submit the required items/documents for approval. The Contractor shall submit all materials and articles for approval, as required by the table below and Section 18, subparagraph 18.8, Material and Workmanship.

DELIVERABLE SCHEDULE

Item of Work & Deliverables Government Review Time (calendar days)

Remarks

Progress Schedule (SOW Attachment 10, Form 3064) and Schedule of Values/Draft Progress Report (SOW Attachment 11, Form 3065)

3 Tentative schedule with Contractor’s proposal, and final Contracting Officer approved one within 7 calendar days after Contract award to CO and COR by e-mail

Construction Contractor License and Bonding 3 Provide within 7 calendar days after award to CO and COR by e-mail

Building Permits and Construction Contractor License and Bonding

3 Provide within 7 calendar days after award to CO and COR by email

Proof of Ownership and Current Mortgage Payment (if applicable)

With proposal, and monthly for the Contract Period of Performance.

Schedule of Values/Progress Report (Form 3065)

Submit Weekly, on Mondays during the Contract Period of Performance, or when there are actual or proposed changes to the Construction schedule of work.

9. CONSTRUCTION SCHEDULE - REPAIR

9.1. Timeliness is a priority for this project. The Contractor shall commence and complete all specified construction work in [CALENDAR DAYS] or less from the Notice to Proceed (NTP). In accordance with Section 18, subparagraph 18.11, Schedules for Construction, the Contractor shall submit a Contracting Officer approved baseline construction schedule to the COR and CO within seven (7) calendar days after contract award. A tentative detailed construction schedule is required with the Contractor’s proposal. An approved schedule will be required prior to issuance of NTP to commence actual on-site construction work.

9.2. The Contractor’s schedule must demonstrate a reasonable and realistic sequence of activities which represent all work through the construction performance period. A composite schedule for the overall contract shall also be provided.

The schedule shall be on the attached Form 3064, Contract Progress Schedule, or an approved computer-generated format similar to the Form 3064. The work shall be scheduled so that, upon the start of construction, work progresses in a continuous and diligent manner. A

Page | 9 schedule which does not reflect steady and reasonable progress throughout the construction period will be rejected. Both the Contractor and the COR are required to provide weekly progress reports covering the period from notice to proceed through final inspection. If mutual agreement cannot be made on the applicable percentage of progress, a joint report will be submitted to the Contracting Officer. This report shall be submitted on the attached Contract Progress Report form (Form 3065), or an approved computer-generated similar format. These reports shall track progress by UNITs/overall construction progress (depending on the magnitude and complexity of the renovation) billed against CLIN 0001, approved Form 3064 and Contract Progress Reports (Form 3065) will also be required for payment purposes.

10. PROGRESS REPORTING - REPAIR

10.1. Progress reports are used for computing payments, and for monitoring the progress against the Contractor’s baseline schedule. This report shall be submitted on the attached Contract Progress Report form (See Attachment 11, Form 3065), or an approved computer-generated similar format. These reports shall track progress by UNITs/overall construction progress (depending on the magnitude and complexity of the renovation) billed against CLIN 0001, approved Form 3064 and Contract Progress Reports (Form 3065) will also be required for payment purposes. The progress report shall utilize the same work elements and schedule of values/cost loading data developed for the construction schedule.

10.2. The Contractor shall submit a draft version of the progress report to the CO and the COR for approval within seven (7) calendar days after the contract award is issued (with the Form 3064 Progress Schedule). After approval, the Contractor shall submit progress reports weekly, or as directed by the CO, throughout the life of the construction period. For each progress report, the Contractor shall include the following:

10.2.1. Percentage of work completed for each work element during the reporting period.

10.2.2. Cumulative percentage of work completed for each work element to date.

10.2.3. Cumulative percentage of work completed for all work elements (percent of Order completion).

10.2.4. Scheduled cumulative percentage of work completed for all work elements, based on the baseline Order schedule (scheduled percent of Order completion).

10.2.5. Any challenges meeting the specific area of construction schedule, and any issues achieving the overall construction completion timeline.

10.3. Both the Contractor and the COR are required to provide weekly progress reports covering the period from notice to proceed through final inspection. If agreement cannot be made on the applicable percentage of progress, a joint report will be submitted to the Contracting Officer.

Approval of the Contractor’s progress report does not constitute acceptance of the work as being 100% in compliance with the contract requirements. In the event the Contractor’s reported progress deviates from the baseline schedule, the CO may elect to hold progress meetings until all issues are resolved and construction phase is back on schedule.

11. CHANGES

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Only the CO has the authority to approve and authorize any changes to the Contract. Any deviations from the Contract shall be coordinated with the CO. No additional work or changes will be carried out without a Contract Modification or approval by the Contracting Officer.

12. INSPECTION

12.1. FEMA will conduct inspections of the housing units, as required, to ensure an acceptable level of services and acceptable conditions of housing as determined by the FEMA.

12.2. The Contractor shall conduct a pre-final inspection in the presence of the Contracting Officer's Representative (COR) prior to the date scheduled for Final Inspection. Any discrepancies noted shall be corrected prior to Final Inspection. The Contractor shall request scheduling of a final inspection in writing to the Contracting Officer at least five (5) working days prior to the desired date, or as otherwise negotiated with the Contracting Officer.

12.3. The FEMA shall not make a payment for repairs or improvements if the housing unit does not meet the state and local building codes for occupancy. After the Contractor corrects the defect within the period specified by FEMA, and FEMA verifies the correction, FEMA will authorize the payment to be processed.

13. WARRANTIES

Commercial standard construction warranty. The leased premises shall be safe, secure, sanitary, and functional. Safe and secure means secure from hazards or threats to occupants. Sanitary means free of health hazards. Functional means an item or home capable of being used for its intended purpose.

14. SAFETY REQUIREMENTS

Compliance with Regulations. All work including the handling of hazardous materials or the disturbance or dismantling of structures containing hazardous materials shall comply with the applicable requirements of 29 CFR 1910/1926. Work involving the disturbance or dismantling of asbestos or asbestos-containing materials; the demolition of structures containing asbestos; and/or disposal and removal of asbestos, shall also comply with the requirements of 40 CFR, Part 61, Subpart A. All work shall comply with applicable state and municipal safety and health requirements. Where there is a conflict between applicable regulations, the most stringent shall apply.

15. QUALITY ASSURANCE/QUALITY CONTROL PROVISIONS

It is the Contractor’s responsibility to provide, inspect, and document the level of quality that has been established by the minimum construction standards in accordance with applicable building codes for the State of KENTUCKY. The Contractor shall establish an inspection system which monitors the execution of any task completed under this Contract.

The Contractor must specify the areas to be inspected on a scheduled or unscheduled basis, how often inspections will be accomplished, and titles of the individuals who will perform the inspections. The Contractor shall establish a method for identifying, correcting, and preventing

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16. PLACE OF PERFORMANCE

MLR program in [COUNTY] with the property name [PROPERTY NAME] at [ADDRESS]. The identified units and composition are as follows:

[UNIT NUMBER, UNIT SIZE (BR/BA]

17. PERIOD OF PERFORMANCE

17.1. For the repair/improvements portion of this Contract, [CALENDAR DAYS] calendar days or less from Notice to Proceed.

17.2. In accordance with the Stafford Act, temporary housing assistance shall be provided for a period of up to 18 months from the date of the Presidential Declaration. Stafford Act Section 408(c)(1)(B)(ii), 42 U.S.C §5174(c)(1)(B)(ii), and any approved extensions. If necessary, because of extraordinary circumstances, the FEMA may extend the 18-month period of assistance for temporary housing. Any changes to the Contract Period of Performance will be made by mutual agreement with the Contracting Officer and the Contractor.

18. CONTRACT STATEMENTS – REPAIR

The following Contract statements are applicable during the construction period of performance.

18.1. COMMENCEMENT, PROSECUTION, AND COMPLETION OF WORK

The Contractor shall be required to (a) commence on-site construction work under this contract within two (2) calendar days after the date the Contractor receives the notice to proceed, (b) prosecute the construction work diligently, and (c) complete the entire construction work ready for use not later than [CALENDAR DAYS] calendar days or less. The time stated for completion shall include the permitting phase and the final cleanup of the premises and ready for final inspection.

18.2. LIQUIDATED DAMAGES-CONSTRUCTION

(a) If the Contractor fails to complete the construction work within the time specified in the Contract and the Contracting Officer agrees with the extension, the Contractor shall pay liquidated damages to the Government in the amount of (To be determined prior to Contract award) [$XX.XX] for each calendar day of delay until the construction work is completed or accepted.

(b) If the Government terminates the Contractor’s right to proceed, liquidated damages will continue to accrue until the work is completed, if directed by the Contracting Officer. These liquidated damages are in addition to excess costs of repurchase under the Termination clause.

18.3. TIME EXTENSIONS

Time extensions for contract changes will depend upon the extent, if any, by which the changes cause delay in the completion of the various elements of construction.

The change order granting the time extension may provide that the revised Contract Completion Date will be extended only for those specific elements related to the changed work, and that the remaining Contract Completion Dates for all other portions of the work will not be altered. The change order also may provide an equitable readjustment of liquidated damages under the new completion

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18.4. PERFORMANCE AND PAYMENT BONDS AND ALTERNATIVE PAYMENT PROTECTIONS

FOR CONSTRUCTION CONTRACTS. With the Contractor’s proposal, the Contractor will demonstrate in their offer the proposed Construction company or companies are qualified and licensed to do business in the State of KENTUCKY and have the bonding capacity to cover the dollar threshold for all the necessary construction work. The FEMA is not responsible for any agreements/contracts between the Property Owner and the Construction company or companies. If the company defaults on the construction work, the FEMA has no legal means or is not responsible for any payments concerning this matter. The Contractor is responsible for completing all the repairs/renovations in the agreed to timeline of no more than [CALENDAR DAYS] calendar days. If not completed in [CALENDAR DAYS] calendar days, the FEMA may terminate the Contract in its entirety without any further payment.

18.5. PAYMENTS UNDER FIXED-PRICE CONSTRUCTION CONTRACTS. Based on the [CALENDAR DAYS] calendar days schedule and verification of the completed work per the approved schedule, the Contractor will be paid two Construction Progress payments for this Contract.

18.6. DIFFERING SITE CONDITIONS.

(a) The Contractor shall promptly, and before the conditions are disturbed, give a written notice to the Contracting Officer of-

(1) Subsurface or latent physical conditions at the site which differ materially from those indicated in this Contract; or

(2) Unknown physical conditions at the site, of an unusual nature, which differ materially from those ordinarily encountered and generally recognized as inhering in work of the character provided for in the Contract.

(b) The Contracting Officer shall investigate the site conditions promptly after receiving the notice. If the conditions do materially so differ and cause an increase or decrease in the Contractor’s cost of, or the time required for, performing any part of the work under this contract, whether or not changed as a result of the conditions, an equitable adjustment may be made under this clause and the contract modified in writing accordingly.

(c) No request by the Contractor for an equitable adjustment to the contract under this clause shall be allowed, unless the Contractor has given the written notice required; provided, that the time prescribed in paragraph (a) of this clause for giving written notice may be extended by the Contracting Officer.

(d) No request by the Contractor for an equitable adjustment to the contract for differing site conditions shall be allowed if made after final payment under this contract.

18.7. SITE INVESTIGATION AND CONDITIONS AFFECTING THE WORK.

(a) The Contractor acknowledges that it has taken steps reasonably necessary to ascertain the nature and location of the construction work, and that it has investigated and satisfied itself as to the general and local conditions which can affect the construction work or its cost, including but not limited to

(1) conditions bearing upon transportation, disposal, handling, and storage of materials; (2) the availability of labor, water, electric power, and roads; (3) uncertainties of weather, river stages, tides, or similar physical conditions at the site; (4) the conformation and conditions of the ground; and (5) the character of equipment and facilities needed preliminary to and during construction work performance. The Contractor also acknowledges that it has satisfied itself as to the character, quality, and quantity of surface and subsurface materials or obstacles to be encountered insofar as this information is reasonably ascertainable from an inspection of the site. Any failure of the Contractor to take the actions described and acknowledged in this paragraph will not relieve the Contractor from responsibility for estimating properly the difficulty and cost of successfully performing the construction work, or for proceeding to successfully perform the work without additional expense to the Government.

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(b) The Government assumes no responsibility for any conclusions or interpretations made by the Contractor based on the information made available by the Government. Nor does the Government assume responsibility for any understanding reached or representation made concerning conditions which can affect the work by any of its officers or agents before the execution of this contract, unless that understanding or representation is expressly stated in this contract.

18.8. MATERIAL AND WORKMANSHIP.

(a) All equipment, material, and articles incorporated into the construction work covered by this contract shall be new and of the most suitable grade for the purpose intended, unless otherwise specifically provided in this contract. References in the contract/sow/scope of work to equipment, material, articles, or patented processes by trade name, make, or catalog number, shall be regarded as establishing a standard of quality and shall not be construed as limiting competition. The Contractor may, at its option, use any equipment, material, article, or process that, in the judgment of the Contracting Officer, is equal to that named in the contract/sow/scope of work, unless otherwise specifically provided in this contract.

(b) The Contractor shall obtain the Contracting Officer’s approval of the machinery and mechanical and other equipment to be incorporated into the work. When requesting approval, the Contractor shall furnish to the Contracting Officer the name of the manufacturer, the model number, and other information concerning the performance, capacity, nature, and rating of the machinery and mechanical and other equipment. When required by this contract or by the Contracting Officer, the Contractor shall also obtain the Contracting Officer’s approval of the material or articles which the Contractor contemplates incorporating into the work. When requesting approval, the Contractor shall provide full information concerning the material or articles. When directed to do so, the Contractor shall submit samples for approval at the Contractor’s expense, with all shipping charges prepaid.

Machinery, equipment, material, and articles that do not have the required approval shall be installed or used at the risk of subsequent rejection.

(c) All construction work under this contract shall be performed in a skillful and workmanlike manner. The Contracting Officer may require, in writing, that the Contractor remove from the work any employee the Contracting Officer deems incompetent, careless, or otherwise objectionable.

18.9. PERMITS AND RESPONSIBILITIES.

The Contractor shall, without additional expense to the Government, be responsible for obtaining any necessary licenses and permits prior to the Construction work, and for complying with any Federal, State, and municipal laws, codes, and regulations applicable to the performance of the construction work. The Contractor shall also be responsible for all damages to persons or property that occur as a result of the Contractor’s fault or negligence. The Contractor shall also be responsible for all materials delivered and construction work performed until completion and acceptance of the entire work, except for any completed unit of construction work which may have been accepted under the contract.

18.10. USE AND POSSESSION PRIOR TO COMPLETION.

(a) The Government shall have the right to take possession of or use any completed or partially completed part of the work. Before taking possession of or using any work, the Contracting Officer shall furnish the Contractor a list of items of work remaining to be performed or corrected on those portions of the work that the Government intends to take possession of or use. However, failure of the Contracting Officer to list any item of work shall not relieve the Contractor of responsibility for complying with the terms of the contract. The Government’s possession or use shall not be deemed an acceptance of any work under the contract.

(b) While the Government has such possession or use, the Contractor shall be relieved of the responsibility for the loss of or damage to the work resulting from the Government’s possession or use, notwithstanding the terms of the clause in this contract entitled "Permits and Responsibilities." If prior possession or use by the Government delays the progress of the work or causes additional expense to the Contractor, an equitable adjustment may be made in the contract price or the time of

Page | 14 completion, and the contract shall be modified in writing accordingly.

18.11. SCHEDULES FOR CONSTRUCTION.

(a) The Contractor shall, within seven days after contract award and before any construction work commences on the contract, or another period of time determined by the Contracting Officer, prepare and submit by e-mail to the COR and Contracting Officer for approval a practicable schedule showing the order in which the Contractor proposes to perform the work, and the dates on which the Contractor contemplates starting and completing the several salient features of the work (including acquiring materials, plant, and equipment). The schedule shall be in the form of a progress chart of suitable scale to indicate appropriately the percentage of work scheduled for completion by any given date during the period. If the Contractor fails to submit a schedule within the time prescribed, the Contracting Officer may withhold approval of progress payments until the Contractor submits the required schedule.

(b) The Contractor shall enter the actual progress on the chart as directed by the Contracting Officer, and upon doing so shall immediately deliver three copies of the annotated schedule to the Contracting Officer. If, in the opinion of the Contracting Officer, the Contractor falls behind the approved schedule, the Contractor shall take steps necessary to improve its progress, including those that may be required by the Contracting Officer, without additional cost to the Government. In this circumstance, the Contracting Officer may require the Contractor to increase the number of shifts, overtime operations, days of work, and/or the amount of construction plant, and to submit for approval any supplementary schedule or schedules in chart form as the Contracting Officer deems necessary to demonstrate how the approved rate of progress will be regained.

(c) Failure of the Contractor to comply with the requirements of the Contracting Officer under this clause shall be grounds for a determination by the Contracting Officer that the Contractor is not prosecuting the work with sufficient diligence to ensure completion within the time specified in the contract. Upon making this determination, the Contracting Officer may terminate the Contractor’s right to proceed with the work, or any separable part of it, in accordance with the default terms of this contract.

18.12. MODIFICATION PROPOSALS—PRICE BREAKDOWN.

(a) The Contractor shall furnish a price breakdown, itemized as required and within the time specified by the Contracting Officer, with any proposal for a contract modification.

(b) The price breakdown—

(1) Must include sufficient detail to permit an analysis of profit, and of all costs for—

(i) Material;

(ii) Labor;

(iii) Equipment;

(iv) Subcontracts; and

(v) Overhead; and

(2) Must cover all work involved in the modification, whether the work was deleted, added, or changed.

(c) The Contractor shall provide similar price breakdowns to support any amounts claimed for subcontracts.

(d) The Contractor's proposal shall include a justification for any time extension proposed.

19. DEFINITIONS & ACRONYMS.

19.1. DEFINITIONS

19.1.1. ATTACHMENT. Attachment means any documentation, appended to a contract, or

Page | 15 incorporated by reference, which does not establish a requirement for deliverables.

19.1.2. 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 Contractor.

19.1.3. CONTRACTING OFFICER. A person with 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.

19.1.4. CONTRACTING OFFICER'S REPRESENTATIVE (COR). An employee of the U.S.

Government appointed by the Contracting Officer to administer the contract. Such appointment shall be in writing and shall state the scope of authority and limitations. This individual has authority to provide technical direction to the Contractor if that 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. The Government will provide a copy of each COR appointment letter to the Contractor.

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

19.1.6. FAIR MARKET RENTS. Fair Market Rents regularly published by HUD, represent the cost to rent a moderately-priced dwelling unit in the local housing market, inclusive of utility costs.

19.1.7. QUALITY ASSURANCE. The Government procedures to verify that services being performed by the Contractor are performed according to acceptable standards.

19.1.8. QUALITY CONTROL. All necessary measures taken by the Contractor to assure that the quality of an end product or service shall meet contract requirements.

19.1.9. SUBCONTRACTOR. One that enters into a contract with a Prime Contractor. The Government does not have privity of contract with the subcontractor.

19.1.10. WORKDAY. The number of hours per day the Contractor provides services in accordance with the contract.

19.1.11. WORK WEEK. Monday through Friday, unless specified otherwise.

19.2. ACRONYMS

CFR Code of Federal Regulations CLIN Contract Line-Item Number CO Contracting Officer COR Contracting Officer’s Representative COTR Contracting Officer's Technical Representative COTS Commercial-Off-the-Shelf DOL Department of Labor DHS Department of Homeland Security FAR Federal Acquisition Regulation FEMA Federal Emergency Management Agency FMR Fair Market Rents (HUD) FOD Field Operations Division

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HUD U.S. Department of Housing and Urban Development HSAM Homeland Security Acquisition Manual HSAR Homeland Security Acquisition Regulation OCI Organizational Conflict of Interest ODC Other Direct Costs PIV Personal Identity Verification card PM Project Manager POP Period of Performance POC Point of Contact PRS Performance Requirements Summary PWS Performance Work Statement QA Quality Assurance QAP Quality Assurance Program QASP Quality Assurance Surveillance Plan QC Quality Control QCP Quality Control Program SOW Statement of Work

20. ADDITIONAL PROVISIONS AND CLAUSES (Per Government Appendix G requirements).

SAFEGUARDING OF CONTROLLED UNCLASSIFIED INFORMATION (JULY 2023)

(a) Definitions. As used in this clause

Adequate Security means security protections commensurate with the risk resulting from the unauthorized access, use, disclosure, disruption, modification, or destruction of information. This includes ensuring that information hosted on behalf of an agency and information systems and applications used by the agency operate effectively and provide appropriate confidentiality, integrity, and availability protections through the application of cost-effective security controls.

Controlled Unclassified Information (CUI) is any information the Government creates or possesses, or an entity creates or possesses for or on behalf of the Government (other than classified information) that a law, regulation, or Governmentwide policy requires or permits an agency to handle using safeguarding or dissemination controls. This definition includes the following CUI categories and subcategories of information:

(1) Chemical-terrorism Vulnerability Information (CVI) as defined in 6 CFR part 27, “Chemical Facility Anti-Terrorism Standards,” and as further described in supplementary guidance issued by an authorized official of the Department of Homeland Security (including the Revised Procedural Manual “Safeguarding Information Designated as Chemical-Terrorism Vulnerability Information” dated September 2008);

(2) Protected Critical Infrastructure Information (PCII) as set out in the Critical Infrastructure Information Act of 2002 (title XXII, subtitle B of the Homeland Security Act of 2002 as amended through Pub. L. 116–283), PCII’s implementing regulations (6 CFR part 29), the PCII Program Procedures Manual, and any supplementary guidance officially communicated by an authorized

Page | 17 official of the Department of Homeland Security, the PCII Program Manager, or a PCII Program Manager Designee;

(3) Sensitive Security Information (SSI) as defined in 49 CFR part 1520, “Protection of Sensitive Security Information,” as amended, and any supplementary guidance officially communicated by an authorized official of the Department of Homeland Security (including the Assistant Secretary for the Transportation Security Administration or designee), including Department of Homeland Security MD 11056.1, “Sensitive Security Information (SSI)” and, within the Transportation Security Administration, TSA MD 2810.1, “SSI Program”;

(4) Homeland Security Agreement Information means information the Department of Homeland Security receives pursuant to an agreement with State, local, Tribal, territorial, or private sector partners that is required to be protected by that agreement. The Department receives this information in furtherance of the missions of the Department, including, but not limited to, support of the Fusion Center Initiative and activities for cyber information sharing consistent with the Cybersecurity Information Sharing Act of 2015.

(5) Homeland Security Enforcement Information means unclassified information of a sensitive nature lawfully created, possessed, or transmitted by the Department of Homeland Security in furtherance of its immigration, customs, and other civil and criminal enforcement missions, the unauthorized disclosure of which could adversely impact the mission of the Department.

(6) International Agreement Information means information the Department of Homeland Security receives that is required to be protected by an information sharing agreement or arrangement with a foreign government, an international organization of governments or any element thereof, an international or foreign public or judicial body, or an international or foreign private or non-governmental organization.

(7) Information Systems Vulnerability Information (ISVI) means:

(i) Department of Homeland Security information technology (IT) systems data revealing infrastructure used for servers, desktops, and networks; applications name, version, and release; switching, router, and gateway information; interconnections and access methods;

and mission or business use/need. Examples of ISVI are systems inventories and enterprise architecture models. Information pertaining to national security systems and eligible for classification under Executive Order 13526 will be classified as appropriate;

and/or

(ii) Information regarding developing or current technology, the release of which could hinder the objectives of the Department, compromise a technological advantage or countermeasure, cause a denial of service, or provide an adversary with sufficient information to clone, counterfeit, or circumvent a process or system.

(8) Operations Security Information means Department of Homeland Security information that could be collected, analyzed, and exploited by a foreign adversary to identify intentions, capabilities, operations, and vulnerabilities that threaten operational security for the missions of the Department.

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(9) Personnel Security Information means information that could result in physical risk to Department of Homeland Security personnel or other individuals whom the Department is responsible for protecting.

(10) Physical Security Information means reviews or reports illustrating or disclosing facility infrastructure or security vulnerabilities related to the protection of Federal buildings, grounds, or property. For example, threat assessments, system security plans, contingency plans, risk management plans, business impact analysis studies, and certification and accreditation documentation.

(11) Privacy Information…