Draft Section E.pdf

RFP - GS-XXX-XX-XXX-XXX (ITCM)Section E

PART I

Section E

Inspection and Acceptance

DRAFT

Table of Contents

E.1 FAR Clauses Incorporated by Reference 1

E.2 Role of Government Personnel and Responsibility for Contracting Administration 1

E.2.1 Contracting Officer 1

E.2.2 Contracting Officer’s Representative 1

E.3 General Requirements for Inspection and Approval 2

E.3.1 Delivery Certification 2

E.3.2 Inspection and Approval 2

E.4 Inspection and Acceptance of Written Deliverables 2

E.4.1 Delivery of Written Deliverables 2

E.4.2 Inspection and Acceptance of Written Deliverables 2

E.5 Quality Assurance Surveillance Plan (QASP) 3

Section E – Inspection and Acceptance

E.1 FAR Clauses Incorporated by Reference This contract incorporates one or more clauses by reference, with the same force and effect as if they were given in full text. Upon request, the Contracting Officer will make their full text available. Also, the full text of a clause may be accessed electronically at this address:

https://acquisition.gov/browsefar

I. FEDERAL ACQUISITION REGULATION (FAR) CLAUSES

NUMBER TITLE DATE

52.246-2 Inspection of Supplies - Fixed Price AUG 1996 52.246-3 Inspection of Supplies-Cost-Reimbursement MAY 2001 52.246-4 Inspection of Services - Fixed Price AUG 1996 52.246-5 Inspection of Services-Cost-Reimbursement APR 1984 52.246-11 Higher-Level Contract Quality Requirement DEC 2014 52.246-12 Inspection of Construction AUG 1996 52.246-15 Certificate of Conformance APR 1984

E.2 General Requirements for Inspection and Approval

E.2.1 Delivery Certification Selected Offeror shall certify in writing to the CO that the deliverables as shown in Section F are complete and ready for inspection in accordance with the requirements of this contract.

E.2.2 Inspection and Approval The CO, or other duly authorized representatives as described above shall perform inspection and testing of equipment, supplies, and services provided under this contract at the place of delivery in accordance with the requirements outlined in this contract. Only the CO or his or her duly authorized representative, may approve deliverables under this contract.

E.3 Inspection and Acceptance of Written Deliverables

E.3.1 Delivery of Written Deliverables All reports, documents, documentation, manuals, procedures, and narrative-type deliverables shall be submitted in accordance with the delivery requirements in Section F of this contract. The selected Offeror shall certify in writing to the CO that the deliverables are complete and ready for inspection in accordance with the requirements of this contract.

E.3.2 Inspection and Acceptance of Written Deliverables For all deliverables except the Annual Operating Budget and Monthly/Annual Financial Reports as detailed in Section C and Section F of this RFP, GSA shall have ten (10) business days to review the document and provide the selected Offeror with a list of any required revisions and/or corrections. Any deficiencies shall be corrected by the selected Offeror and

E-1 https://acquisition.gov/browsefar incorporated into the final deliverable for resubmission to GSA within five (5) business days after notification. The selected Offeror is encouraged to review drafts of documents with the COR and other stakeholders, to reduce the likelihood that the deliverables will be found deficient, and therefore reduce re-work for all parties. Once accepted, deliverables become the property of GSA to be used in support of the operations of the Ronald Reagan Building & International Trade Center.

For the Annual Operating Budget, selected Offeror shall submit the initial draft Annual Operating Budget no later than the time period outlined in Section F of the RFP. If the initial draft Annual Operating Budget is acceptable to GSA, they shall notify selected Offeror within fifteen (15) business days, at which point the draft Annual Operating Budget shall become the approved Annual Operating Budget and be used to inform the funding requirements of this contract for the succeeding government fiscal year. If the initial draft Annual Operating Budget is not acceptable to GSA, then within the same period of five (5) business days GSA shall provide selected Offeror with any and all questions GSA may have. Selected Offeror shall then have five (5) business days to amend their initial draft Annual Operating Budget and resubmit to GSA for review. After resubmission, GSA shall have five (5) business days to review and either accept or provide additional feedback for the selected Offeror to consider. The selected Offeror is strongly encouraged to review drafts of the Annual Operating Budget with the COR and other GSA stakeholders in person and in advance to decrease the likelihood of multiple resubmissions. The Annual Operating Budget shall be considered accepted only when the selected Offeror is notified by GSA that it has been approved.

For the Monthly and Annual Financial Reports required in Section F, selected Offeror shall submit them to GSA for review no later than the dates specified in Section F. GSA shall have five (5) business days to review, at which point selected Offeror shall schedule an in-person meeting with the COR and other GSA stakeholders to review the financial statements in comparison to the Annual Operating Budget projections for the same period of time.

Discrepancies in the performance of the Ronald Reagan Building & International Trade Center between projections and actuals shall be explained by the selected Offeror to GSA, along with the recommendations of any immediate, medium-term and long-term actions that can be taken to increase building performance. GSA shall be entitled to no fewer than three (3) meetings with the selected Offeror lasting no less than (2) two hours each to satisfy any questions it may have on the performance of the Ronald Reagan Building & International Trade Center. A Monthly or Annual Financial Report shall be considered accepted after GSA is confident that building performance is tracking to the Annual Operating Budget, or in the case that performance is not that corrective measures have been identified and put in place.

E.5 Quality Assurance Surveillance Plan (QASP) The purpose of this QASP for the International Trade Center Manager (ITCM) contract is to layout in advance what GSA will do to ensure that the selected Offeror’s performance meets the baseline established by the contract in terms of technical requirements, schedule, quality and cost. This QASP provides the basis for the CO and COR to evaluate the selected Offeror's performance. The oversight provided for in the QASP and in the contract will help to ensure that the performance set forth in the Work Statement outlined in Section C is attained throughout the contract term. Further, this QASP provides the CO and the COR with a proactive way to avoid

E-2 unacceptable or deficient performance and provides verifiable input for the required annual past performance evaluations.

The QASP is developed as part of GSA fulfilling the Inspection Clause. Thus, the QASP is provided for the selected Offeror’s information only, and GSA reserves the right to alter or change the plan at its discretion without needing to modify the contract.

1. Functions of the QASP – The QASP is composed to convey the following:

a. The roles and responsibilities of GSA officials.

b. The evaluation methods that will be employed by GSA in assessing the selected

Offeror’s performance.

c. The monitoring tools used to evaluate and document the selected Offeror’s performance.

2. Government Roles and Responsibilities – The “technical” GSA personnel who will use this QASP is the COR. The COR works closely to ensure sustained contractor performance. Further, the COR has main technical responsibility for overall performance management of the contract. He or she has the lead in monitoring, assessing, recording and reporting the technical performance of the selected Offeror. The COR will be the main interface with the selected Offeror about performance and will partner closely with the selected Offeror’s key Ronald Reagan Building & International Trade Center point of contact as outlined in their proposal.

However, since the CO makes all the key contractual decisions in obligating GSA, the COR also will keep the CO informed about the selected Offeror’s performance and seek the CO’s advice and input for non-technical issues that arise. When more in-depth monitoring is required, the COR can request the CO to delegate responsibilities to another COR. These individuals will support the COR activities by providing technical expertise to augment the COR actions. However, close working relationships among the COR, selected Offeror key personnel and the CO are essential to ensuring effective performance under this contract.

The contract monitoring office will be the GSA team housed in the Ronald Reagan Building & International Trade Center and will be determined at the time of award. In carrying out performance of its monitoring responsibilities, GSA retains the right to:

a. Inspect at all times and places so long as not to disrupt the selected Offeror’s performance.

b. Provide the selected Offeror with the first right to make corrections should the COR discover performance deficiencies.

c. If the selected Offeror is not able to make corrections or re-perform then GSA may:

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i. Terminate the contract with the selected Offeror and self-perform or contract with another third-party to do so.

ii. Accept selected Offeror’s performance and seek an equitable adjustment if GSA has been harmed.

3. Performance Evaluation Methods: The COR and is primarily responsible for conducting inspections of and handling any nonconformance and acceptance issues with the selected Offeror’s responsibilities outlined in Section C, the required deliverables outlined in Section F and the overall performance of the Ronald Reagan Building & International Trade Center. In fulfilling their responsibilities, the selected Offeror shall be aware of the following potential COR requirements:

a. Daily briefings between selected Offeror, COR (or designated personnel) to discuss Ronald Reagan Building & International Trade Center status and identify any critical operational issues.

b. Weekly meetings to discuss any concerns COR (or designated personnel) may have about selected Offeror’s ability to perform its obligations under Section C of this RFP, operating standard of the Ronald Reagan Building & International Trade Center not being met, etc.

c. Weekly meetings to discuss the status of any projects selected Offeror is performing Project Management oversight for pursuant to Section C of this RFP and as approved by GSA. Project schedule, cost and impact on building tenants shall be discussed.

d. Monthly financial reporting meetings to discuss actual Ronald Reagan Building &

International Trade Center performance when measured against the approved Annual Operating Budget for the same time period. Selected Offeror shall answer any questions COR may have with respect to building performance, and together discuss potential strategies to mitigate underperformance moving forward.

e. Quarterly Contract Management Reviews (CMRs) where selected Offeror’s performance shall be assessed to date. The monthly financial reporting meetings and the QASP shall be used as a basis for the CMR. Recommendations for actions on current contracting and operational issues shall be discussed and consensus for implementing those actions shall occur. The COR will follow through to ensure agreed to actions are taken by the selected Offeror.

f. Quarterly licensing meetings to review all private sector tenant licensing activity at the International Trade Center. Selected Offeror’s Marketing and Licensing Plan for that year shall be reviewed and compared with current licensing conditions at the International Trade Center. Significant deviations from projected ability to license space or the terms by which space is licensed shall be discussed, including all relevant market factors that may have played a key role. Selected Offeror shall

E-4 provide COR with recommendations on how to increase licensing activity, if necessary, for their consideration and amend Marketing and Licensing Plan as needed to reflect any agreed upon changes.

g. Annual budgeting meetings to review and approve the selected Offeror’s draft Annual Operating Budget for the subsequent government fiscal year. All baseline assumptions used by the selected Offeror in the development of the draft Annual Operating Budget shall be discussed, and the COR shall endeavor to provide timely feedback to selected Offeror to ensure the quick turnaround of a revised draft Annual Operating Budget for GSA’s review and approval.

h. Annual financial reporting meetings to discuss actual Ronald Reagan Building & International Trade Center performance when measured against the approved Annual Operating Budget for the same time period. Selected Offeror shall answer any questions COR may have with respect to building performance, and together discuss potential strategies to mitigate underperformance moving forward. Year over year comparisons of building revenue by source, expenses by use, private sector International Trade Center tenant occupancy, conference and event volume, etc. shall be discussed.

i. Carry out periodic inspections to ensure selected Offeror is performing pursuant to the Annual Approved Operating Budget as it relates to the Management Operations Plan (M/OP), and other obligations outlined in Section C that ensure the cleanliness of the Ronald Reagan Building & International Trade Center and the reliability and safety of its mechanical systems. Unscheduled periodic inspections will be utilized for areas such as cleaning, the COR shall schedule inspections with selected Offeror’s engineering staff to inspect mechanical systems and other areas as needed. Findings obtained from these inspections shall be reported to the CO.

j. Use the Contract Discrepancy Report Form, shown below as Figure 2 which GSA shall provide to the selected Offeror to:

i. Communicate discrepancies discovered during the periodic inspections.

ii. Note the impacts of what was not completed, and any recommendation for rework or re-performance.

iii. Follow up to ensure non-conformances are corrected.

k. Perform annual and final performance evaluations using the Performance Criteria and Their Ratings form, shown below in Figure 3.

4. Performance Requirement Summaries: The work performed and deliverables submitted by the selected Offeror as set forth in Section C and Section F of the RFP shall be evaluated based upon how well the selected Offeror is satisfying the contract

E-5 requirements, how efficiently the Ronald Reagan Building & International Trade Center is being managed and how transparent the operating information that selected Offeror prepares for GSA pursuant to Section F (e.g. Monthly Financial Reports) is. One of GSA’s key goals of this contract is to obtain an operating baseline for the entire Ronald Reagan Building & International Trade Center, including specific cost data for the performance of the obligations outlined in Section C. The COR will periodically perform inspections to ensure there is a match between actual and expected performance of selected Offeror, and the deliverables selected Offeror is obligated to produce compared to what has actually been produced. If there are discrepancies the Contract Discrepancy Report, shown below in Figure 2, shall be used to communicate performance concerns to the selected Offeror and to follow up to ensure performance gaps are closed. The CO shall be kept up to date at all times in terms of inspection findings and means to resolve identified performance concerns.

The selected Offeror should note that the periodic feedback given by the COR after any periodic inspection can be extremely beneficial in terms of providing timely and insightful feedback about any mid-course corrections selected Offeror may need to make to ultimately achieve the contract requirements. In addition, the information obtained from such incremental surveillance activities shall form the basis for the COR completing the Performance Criteria and Their Ratings form.

Inspections that are completed by the COR shall include the use of Performance Requirement Summaries (PRSs), as seen below in Figure 1. The PRSs cover three facets of performance evaluation:

a. Key Performance Parameter: This is a deliverable, in part or in whole, or an aspect of work that will be evaluated by the COR. Generally, separate PRS charts are developed for each set of Tasks and each set of Deliverables.

b. Performance Indicator (PI): Section C outlines all activities from which the selected Offeror is expected to achieve certain levels of performance, either through efficiency of operations, managing the Ronald Reagan Building & International Trade Center to a certain standard, etc. During selected Offeror’s performance under the contract, the COR will evaluate their current level of performance by using one or more PIs outlined in the figure below.

PIs serve two purposes. First, they define what the Acceptable Quality Level of performance under this contract is. GSA determines what level of error, the difference between expected and actual performance, is allowable and still have performance occur. Second, Performance Indicators are necessary to ensure that a certain level of performance is achieved. This can occur where GSA is able to quantify the PI in order to sustain a minimum level of expected performance.

The communication of PIs is done by GSA to ensure that contract performance is sustainable. Over time the use of these PIs can improve the expected versus actual

E-6 performance “fit” between contractor and GSA.

PIs and their use are also subject to the following:

i. The more important the finding, the more thorough the PI use and interpretation.

ii. For “common” tasks or deliverables (e.g. provide conference services and reports) the COR can use a “common” set of PIs for evaluation purposes.

iii. PI level can vary depending whether the work or deliverable is critical or non-critical in nature.

iv. Evaluations of Key Performance Parameters may use one or more PI if necessary when describing a different facet of work or deliverable.

v. Clearer Work Statements result in clearer PI matching to Key

Performance Parameters.

Based on the above the PI “magnitude” is defined as follows:

i. Excellent: Means that no error is allowed, and that actual performance must fully meet the specific contract requirement element. This magnitude is true for work or deliverables deemed critical in nature by

GSA.

ii. Good : Means that some small error is allowed, but the contractor must correct this error and prevent its reoccurrence. This magnitude is true for work or deliverables deemed non-critical in nature by GSA.

iii. Numerical: Where GSA can specify minimum performance levels required.

c. Monitoring Method: This is the means by which the CO, COR verifies that the PIs are providing effective performance feedback information to the contractor. The Performance Requirement Summary (PRS) shown in Figure 1 below describes the indicators and monitoring for the Key Performance Parameters affecting selected Offeror’s efforts at the Ronald Reagan Building & International Trade Center. This PRS also includes elements for some of the critical tasks and deliverables provided in Section C and Section F of the RFP.

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Figure 1 Performance Requirements Summary

Key Performance Parameter Element Performance Indicator(s) Performance Monitoring KPP 1 – Operating Efficiency and Transparency

Selected Offeror shall meet GSA’s overarching goals of this contract to:

1. Develop and implement a strategy to maximize Ronald Reagan Building & International Trade Center revenues

2. Implement transparent budgeting and reporting processes for the operation and maintenance of the Ronald Reagan Building & International Trade Center

3. Efficiently structure the property management team to minimize GSA oversight requirements

4. Identify and recommend short, medium, and long-term capital improvements for the Ronald Reagan Building & International Trade Center and assist GSA in the planning and budgeting for those needs

1. Consistent communication between selected Offeror and GSA re:

status of building operations

2. Conformance with regular required meetings between selected Offeror and

GSA

3. Required Section F deliverables, provided and revised in a timely manner.

1. Weekly update meetings

2. Monthly financial reporting meeting

3. Quarterly CMRs

4. Quarterly licensing meetings

5. Annual financial reporting meetings

6. Review appropriate deliverables

KPP 2 – Licensing

Selected Offeror executes some/all of its Marketing and Licensing Plan, subject to any delays caused by GSA, to decrease vacancy within the International Trade Center.

1. Decreased vacancy.

2. Decreased time it takes for GSA to approve/execute term sheets and license agreements with tenants.

3. Increased visibility in market for vacant space.

1. Quarterly CMRs

2. Quarterly licensing meetings

3. Annual financial reporting meetings

4. Review appropriate deliverables

5. Note potential changes in strategy to accommodate market forces to better position the Ronald Reagan Building & International Trade Center.

KPP 3 – Operating Sustainability

Selected Offeror is able to manage expenses to be in line with approved Annual Operating Budget(s).

1. Actual expenditures do not exceed budgeted amount, inclusive of contingencies.

2. Clear rationale and management approach for each line item variance greater than 5% of the budgeted amount.

1. Weekly update meetings

2. Monthly financial reporting

3. Quarterly CMRs

4. Annual financial reporting meetings

5. Identify and budget for future years’ capital repairs and

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3. Budgeted capital repairs/building improvements are on schedule and budget.

replacements

6. Manage capital spend in accordance with plan and budget

KPP 4 – Planning

Selected Offeror shall deliverable Annual Operating Budgets to GSA in a timely manner.

1. Required deliverable is in a consistent form with enough clarity to provide GSA with all necessary operating information.

2. Required deliverable is never late. Selected Offeror works with GSA to ensure approval well before the start of the next government fiscal year.

3. Required deliverable includes suggested capital improvements, the benefits (financial and otherwise) associated with them and rough cost estimates for each suggestion.

1. Monthly financial reporting

2. Annual financial reporting meetings

3. Annual budgeting meetings

4. Check deliverable format, content and date of receipt against Section C and Section F requirements

KPP 5 – Maintenance of Standards

Selected Offeror shall provide services outlined in Section C pursuant to the operating standard of the Ronald Reagan Building & International Trade Center, subject to the approved Annual Operating Budget.

1. Cleanliness standard maintained.

2. Safety of building and its equipment ensured through regular planned maintenance.

3. Compliance with all other aspects of Section C.

1. Daily briefings

2. Weekly status meetings

3. Results from GSA COR spot checks

4. Selected Offeror’s improvement on any issue identified during spot checks

KPP 6 – Customer Support

Selected Offeror shall provide full and complete customer service to all Ronald Reagan Building & International Trade Center tenants and guests as outlined in Section C.

1. Good accomplishment of Customer Service Standards

2. 90% of survey respondents give highest rating

3. Improvement from previous year’s ratings

1. Weekly status meetings

2. Results from GSA COR spot checks

3. Selected Offeror annually administers customer survey

4. GSA assesses results of customer survey

5. Selected Offeror implements any GSA recommended improvements

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Figure 2 Contract Discrepancy Report

1. Contract Number

2. To: (Contractor and Representative's Name) ω ω ω

3. From: (Name of Contracting

Officer’s

Representative (COR))

DATES

4. Prepared ω5. Oral Notification ω6. Returned by Contractor ω7. Action Complet ω ω ω ω ω ω e

8. Discrepancy or Problem (describe in detail)

9. Signature of COR

10. To: (Contracting Officer) ω From: (Contractor) ω

11. Contractor response as to cause(s), corrective action(s), and action(s) to prevent reoccurrence:

Attach continuation sheet if necessary.

12. Signature of Contractor Representative ω Date

13. Government Evaluation (Acceptable, partially acceptable, or rejected). If necessary, explain further contractor actions required.

14. Government Actions (see below or cure notice, show cause notice, etc.)

15. Verification of Remedy

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Name-Title ω Signature ω Date ω

Contractor Representative ω ω ω

COR ω ω ω

Contracting Officer ω ω ω

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Figure 3 Performance Criteria and Their Ratings

Quality of Product/Service

Cost Control Timeliness of Performance

Contracting/ Business Relations

- Integrated Ronald Reagan Building & International Trade Center operations at a Class A level.

- Provide consistent property management and facility maintenance services, maintaining a clean, safe and active environment for all tenants and visitors.

- Identify and implement best practices to increase activation and competitive standing of the Ronald Reagan Building & International Trade Center.

- Maximize revenues.

- Current, accurate and complete billings for all operating expenses.

- Active budget management.

- Cost containment initiatives for over budget items without sacrificing service.

- Responsive to contract requirements.

- Responsive to technical direction.

- Responsive to contract modifications.

- Responsive to non-routine contract situations.

- Creative strategies to serve the customer.

- Prompt notification of problems.

- Effective solutions to resolve problems & prevent recurrence.

- Reasonable, flexible & cooperative.

- Pro-Active.

- Whether contractor effectively implemented socio-economic programs.

0. Unsatisfactory.

Non-conformances are compromising the achievement of contract requirements despite the use of COR surveillance.

Cost and/or budget issues require GSA resources to ensure achievement of contract requirements.

Delays are compromising the achievement of contract requirements despite the use of COR surveillance.

Response to inquiries, technical service and administrative issues is not effective or responsive.

1. Marginal.

Non-conformances require major COR surveillance to ensure achievement of contract requirements.

Cost and/or budget issues are compromising performance of contract requirements.

Delays require COR surveillance to ensure achievement of contract requirements.

Response to inquiries, technical service and administrative issues is sometimes effective and responsive.

2. Good.

Non-conformances do not impact achievement of contract requirements.

Cost and/or budget issues do not impact achievement of contract requirements.

Delays do not impact achievement of contract requirements.

Response to inquiries, technical service and administrative issues is usually effective and responsive.

3. Excellent.

There are no quality problems.

There are no cost and/or budget issues.

There are no delays. Response to inquiries, technical service and administrative issues is Consistently effective and responsive.

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