Attachment_L-3_(FA890313R0002_PWS)_3_DEC_2012.docx

PERFORMANCE WORK STATEMENT

FOR

AIR FORCE (AF) PRIVATIZATION

POST CLOSING MANAGEMENT 2013 (PCM-13)

3 DEC 2012

FA8903-13-R-0002

PCM-13

3 Dec 2012 Attachment L-3

PERFORMANCE WORK STATEMENT

AIR FORCE PRIVATIZATION POST CLOSING MANAGEMENT 2013

1.0 SCOPE

This Performance Work Statement (PWS) shall provide for long-term Post Closing Management (PCM) services in support of the Air Force’s (AF) privatized projects to include Housing Privatization (HP), Enhanced Use Leasing (EUL), Value Based Transaction (VBT), and Voluntary Action Program (VAP) for Real Estate and Environmental issues related to Base Realignment and Closure (BRAC), Real Estate Transaction (RT) and other Privatized Programs. This includes Asset and Portfolio Management services in support of HP, EUL, VBT, VAP, RT, and other Privatized Programs throughout the United States. The PCM Contractor shall provide Asset and Portfolio Management support services to the AF throughout the United States, to include the Annual State of the Portfolio Report. The Annual State of the Portfolio Report is a comprehensive assessment of all privatized projects operational, development, and financial information that relies completely on the results of all assessments and analysis in determining the health of the AF Housing Privatization Portfolio.

The purpose of this PWS is to outline the basic requirements of this contract. The PCM contract services will be obtained through the issuance of individual Task Orders. Individual Task Orders will contain scope and pricing for specific requirements.

2.0 BACKGROUND

PCM is a long-term assignment related to privatization real estate transactions. These services begin prior to project transaction closing and extend to expiration of all project transactional documents.

Congress enacted the Military Housing Privatization Initiative (MHPI) in the 1996 National Defense Authorization Act (see 10 United States Code §§ 2871-2885, as amended). This law allows the military services to address their housing needs by utilizing private sector resources to finance and construct housing units consistent with current market standards. The law and other statutory authorities authorizes direct loans and loan guarantees, government investments (i.e., limited partnership interest, the purchase of stock or other equity instruments and/or the purchase of bonds or other debt instruments), conveyance or leasing of existing property and facilities, and the building of new housing and facilities to local commercially acceptable standards and codes. The MHPI’s goal is to provide military members and their families with quality, affordable housing in a manner that is cost-effective and expeditiously replaces the Department of Defense’s (DoD) aging inventory of housing units. The goal for each project will be realized with the successful closure of a non-Federal Acquisition Regulation (non-FAR) real estate transaction that meets AF objectives.[footnoteRef:1] [1: Further background information regarding the Air Force’s approach to the MHPI can be obtained from the AFCEE Housing Privatization Web site at: http://www.afcee.af.mil/resources/housingprivatization/index.asp.]

In other legislation, Congress has authorized the Secretary of the Air Force (SAF) to lease AF property to a lessee should it be deemed advantageous to the country, in support of national defense, or be in the public interest. (See 10 U.S.C. § 2667, “Leases: Non-Excess Property of Military Departments”). Other relevant legislation for Real Property Transactions include: 10 USC 2668, “Easements for rights-of-way”, 10 USC 2869, “Conveyance of property at Military Installations to Limit Encroachment”, BRAC, and other special Legislation dealing with Real Estate).

In February 2001, the AF Center for Engineering and the Environment (AFCEE) was designated as the Housing Privatization Project Manager for the AF assuming long-term responsibility for oversight of AF MHPI projects. This includes monitoring and reporting status of project performance, site assessment visits, document management and facilitating problem resolution. The privatized military housing units at each individual Base and Grouped Projects make up the MHPI Portfolio managed by AFCEE. The AF currently has 51 bases in its housing portfolio consisting of 21 single base projects and 10 grouped projects. The AF portfolio will grow to 63 bases when an additional three grouped projects are added within the next 2 years.

In October 2002, the SAF consolidated the AF Base Conversion Agency with the AF Real Estate Division to form the Air Force Real Property Agency (AFRPA). This transformation consolidated the AF's real property disposal and acquisition efforts for both active-duty and BRAC installations. AFRPA acquires, disposes, and manages all AF-controlled real property worldwide working closely with AF leadership and partners to identify opportunities, create solutions, and leverage proven business practices to negotiate, execute and manage the best value real estate transactions. AFRPA is designated by the Deputy Assistant Secretary of the Air Force Installations (SAF/IEI) as the real property program manager for the AF assuming long-term responsibility for oversight to the AF EUL, VBT, VAP, and other Real Estate programs. The AF currently has 7 projects consisting of EULs, VBTs, and VAPs. The AF Real Property portfolio (to include EULs, VBTs, and VAPs) is projected to grow to 15 projects in FY13, 25 projects in FY14, 27 projects in FY15, 28 projects in FY16 and 30 projects in FY17.

The Contractor shall assist the AF in executing all processes, procedures, and activities necessary to ensure the AF maintains the appropriate oversight and control of all Air Force HP, EUL, VBT, VAP, and RT and other Privatization Programs. The AF’s approach to PCM envisions tailoring a program to meet the specific needs of these programs. This tailored comprehensive approach, focuses initially on development, operations, and finance, while incorporating oversight tools, Portfolio Management tools, financial tracking and solution implementation for each project, grouped project and each program as a whole.

As of October 1, 2012, AFCEE and AFRPA, as well as AFCESA, will merge into one new Field Operating Agency (FOA), the Air Force Civil Engineer Center (AFCEC). Housing Privatization responsibilities will be divided between AFCEC’s Facility Engineering Center of Excellence (FENCE) and Installations Center of Excellence (ICE). EUL, VBT, VAP, RT, and other privatized endeavor responsibilities will be managed by ICE.

2.1 Government Documents.

The following documents will be used as reference for this effort. The Contractor will ensure that the latest versions are used.

· AFCEE Housing Privatization web page (http://www.afcee.af.mil/resources/housingprivatization/index.asp)

· Military Housing Privatization Initiative Program Evaluation Plan Guidance can be found at http://www.acq.osd.mil/housing/evalplan.htm

· Air Force Real Property Agency website can be found at http://www.safie.hq.af.mil/afrpa/index.asp

· Federal Credit Reform Act of 1990

· EULs http://www.safie.hq.af.mil/afrpa/eul/index.asp

· Enhanced Use Leasing Information- Army- Frequently Asked Questions http://eul.army.mil/

· Office of Management and Budget (OMB) Circular No. A-11, Preparation, Submission, and Execution of the Budget Section 185, Federal Credit

· Air Force Policy Directive 90-17, Energy Management

· Air Force Instruction 90-1701, Energy Management

· OMB Circular A-11 Part 4 Preparation, Submission, and Execution of the Budget

· OMB Circular No. A-129 Policies for Federal Credit Programs and Non-Tax Receivables

· OMB Credit Subsidy Model

· Federal Accounting Standards Advisory Board (FASAB) Standard 2

· FASAB Standard 3 (Accounting for Inventory and Related Property)

· FASAB Standard 4 (Managerial Cost Accounting Standards and Concepts)

· FASAB Standard 7 (Accounting for Revenue and Other Financing Sources)

· FASAB Standard 18 (Accounting Standards for Direct Loans and Loan Guarantees)

· FASAB Technical Release 3 (Preparing and Auditing Estimates for Direct and Guaranteed Loans)

· Enhanced Use Leasing Handbook, Guidance and Regulations http://www.afcee.lackland.af.mil/contracting/PCM-13/default.asp

· GAO Accounting and Financial Management Division September 1991: The Chief Financial Officers Act

· 10 USC 2667 Leasing: Non-excess Property of Military Departments and Defense Agencies

· 10 USC 2668 Easements for rights-of-way

· Executive Order 13327 (Federal Real Property Asset Management)

· Executive Order 13123 (Greening the Government Through Efficient Energy Management)

· Executive Order 13101 (Greening the Government Through Waste Prevention, Recycling, and Federal Acquisition)

· Executive Order 13148 (Greening the Government Through Leadership in Environmental Management)

· Executive Order 13134 (Developing and Promoting Biobased Products and BioEnergy)

· Resource & Recovery Act (RCRA): Section 6002

· The Energy Policy Act (EPA) of 1992 and amendments to the National Energy Conservation Policy Act (Subtitle F)

· 32 CFR 989 (EIAP- Environmental Impact Analysis Process)

· Unified Facilities Criteria (UFC) 4-010-0, 18 October 2003, entitled, DoD Minimum Anti-Terrorism Standards for Buildings

3.0 POST CLOSING MANAGEMENT REQUIREMENTS

3.1 Program Support.

Overall AF wide PCM Program support will be required. The Contractor shall provide program support services in the areas shown below (note: the areas shown below are not all inclusive). The Contractor is responsible for identifying additional program support services resulting in a proactive approach, mitigating project risks and ensuring the success of the USAF HP, EUL’s, VBT, VAP, or any other privatization efforts and any Real Estate Transactions/Programs efforts. (CDRL A001)

3.1.1 Transition Program Activities

Transition in the PCM program activities within 90 calendar days after contract award and transition out at the end of the contract to a follow-on Contractor.

3.1.2 Technical Support

· Manage extranet portal (provide all components necessary to conduct HP Portfolio Management support such as project information).

· Management of the extranet portal includes all information on Projects, management of all the data owned by the USAF and the formula’s to generate reports.

· Identification, documentation and dissemination of Lessons Learned

· Technology Maintenance (Maintenance of data repository).

· Site Module Development - Centralized Design and Construction Oversight Program (CDCOP), Major Command (MAJCOM), Topic, Training, and other program support.

· Provide formulas and details on report creation.

3.1.3 Technical Papers

· Prepare publications on Program information to distribute to Program stakeholders about PCM initiatives, policies and findings. Examples include e-Wires, fact sheets, brochures, or topical white papers. (CDRL A001)

3.1.4 Training Module Development

· Training/Education related to USAF HP, EUL’s, VBT, VAP, and any Real Estate Transactions/Programs efforts as required. Examples include:

· Training provided twice a year to installation and MAJCOMs on EUL 101 and EUL 102

· On-Site training to installation and MAJCOMs once lease is signed (compliance testing, reporting training).

· Develop Guidance, Tools, Manuals and Materials for Seminars/Workshops/Training/ Leadership Meetings

· Target audience, number of sessions, duration, and venue will be identified at individual Task Order Level (CDRL B001)

3.1.5 Meetings/ Workshops/ Training for Leadership

· Briefing Support (such as quarterly Executive Steering Groups (ESGs) and Management Review Committee s (MRCs))

· AF Lessons Learned/Best Practice Workshop

· Meetings or other Program-Level support as required with AF senior leadership, Office of the Secretary of Defense (OSD), OMB, or other stakeholders as appropriate. Develop material to explain processes, policy and procedures for program support.

· Number of sessions, duration, and venue will be identified at individual Task Order Level (CDRL B002, B003, B004)

3.1.6 Solution Implementation

· Special Assets Group (SAG) to be utilized for project owner default purposes

· Legal reviews as appropriate utilizing industry and region specific attorney(s) to review leases (e.g. specialized Energy, Industrial or Environmental attorney)

· Loan Closing Support, to include legal reviews as appropriate

· Best Commercial/Government Practices Identification, Documentation, and Dissemination

· Re-assessment Feasibility Studies/Business Case Analysis (CDRL A001)

3.1.6.1 Integrated Program Team (IPT)

One of the key objectives of the AF MHPI program is to ensure the long-term success of the privatized housing projects. IPT meetings are initiated to mitigate risks to the project or the AF when there are persistent issues that cannot be resolved between stakeholders at the Installation level. Examples include: poor occupancy over an extended period of time, poor financial performance that puts the AF’s short and long term development goals at risk, or a record of poor customer service and tenant satisfaction. The Contractor shall provide IPT support and deliverables typically include meeting notes and an action plan that identifies actions, due dates, and personnel responsible for implementing the action. IPTs meet regularly until the issues are resolved, often on a monthly basis, and are generally structured in order to:

· Establish rules of engagement

· Define the problem

· Define success

· Develop metrics to determine whether IPT efforts are successful

· Develop an action plan to achieve success

· Implement action plan, track progress to goals, and refine actions (CDRL A003, A004, B003)

3.1.6.2 Restructure

The Contractor shall conduct an economic analysis on project owner proposals and develop a cost summary on all the components of the proposal to include recommendations. The economic analysis should balance conservative cost estimates for developing, operating and maintaining the project and still maximizing the development scope and identify the most appropriate actions to correct component deficiencies as well as a healthy out-year reinvestment plan. The Contractor will also be responsible for fully reviewing proposals and looking into Federal and Local requirements that could have an impact during the life of the project. Because this is largely a restructuring of existing projects, the Contractor will be part of a uniquely qualified team that has a thorough understanding of the installation, the condition of the housing, the local economy and the operating and development costs. This experience reduces risk to the AF and the installation. Restructuring of a project requires various partnering sessions with all stakeholders, developing and reviewing proposals, revising transaction documents, and integration of the modified items into the compliance program. (CDRL A001, A002)

3.1.7 Prepare and Evaluate Analysis/ Reports

· Financial Analysis

· Strategic Planning

· Insurance Program Support

· Annual and semi-annual government reporting to OSD, Government Accountability Office (GAO), OMB, Department of Energy (DOE), State and Municipal agencies as required

3.1.8 Other Program Support

The Contractor may be required to provide program support services for other tasks in support of the process by which the Government plans and implements the portfolio management of other privatized assets. Tasks include but are not limited to: (CDRL A001, A005)

· Providing programmatic support to the Project Manager (PM) as it relates to other privatized assets

· Providing recommendations to the PM regarding planning and development of portfolio programs for other privatized assets

· Providing recommendations, advice and documentation on process improvements of other privatized assets

· Providing financial analysis and supporting documentation of other privatized assets

3.2 Initial Project Services.

The Contractor shall conduct initial post closing management planning and services. These services are designed to ensure a smooth transition from the acquisition and closing phase to the ongoing Portfolio Management life cycle for HP, EUL, VBT, VAP, RT and other Privatized Program projects. Portfolio Management is a long-term assignment. While much of the process shall evolve over time, it is critical to coordinate and assist in the initial period from just prior to real estate transaction closing and continuing through to the full functioning of the project plan. Initial Planning and Services shall be conducted for each AF project simultaneously and shall begin with the Contractor performing a detailed review of the transaction documents for each project. The Contractor shall tailor requirements to meet the specific needs of grouped projects.

3.2.1 Project Site Visit Support and Training

The contractor shall visit the privatization project site to assist and train appropriate personnel on the closed transaction and prepare summary report. Visits shall be tailored to the specific requirements of the AF personnel involved in oversight of the privatization project. Support under this paragraph may include training and education such as Orientation Site Visits, Asset Management Start Up training, and Compliance Testing Training, to familiarize installation personnel with activities associated with portfolio and asset management. Support may also include project reviews, team building, etc. (CDRL A011, B003)

3.2.2 Insurance Summary

The Contractor shall conduct an initial review of the insurance policies in place for each project and prepare a report with an assessment of adequacy and completeness of these policies for both the project and the program taking into consideration the insurance requirement for the industry type of the project. This review shall commence prior to real estate ground lease transaction closing with review of initial submitted documentation. (CDRL A008)

3.2.3 Lockbox Account/Trust Administration Tool

The contractor shall develop an initial Lockbox Account Administration Tool. The tool is designed for the project owner and Lockbox Agent to help track and manage project funds. The tool shall be tailored for each project or grouped project. The contractor shall assist the Lockbox Agent in understanding and use of the tool. (CDRL A015)

3.2.4 Compliance Checklist

The Contractor shall prepare for each project a compliance checklist tailored to the specific terms and conditions of each transaction including a detailed task list for the project, outlining the detailed roles and responsibilities for all stakeholders and appropriate entities within the project specified industry class. The checklist shall define the compliance requirement, responsible party, specified due date (if applicable), action test to determine task completion, and frequency of the task. The customized compliance checklist shall include any statutory and/or regulatory compliance items as appropriate. (CDRL A007)

3.2.5 Project Executive Summary

Based on a review of the documents, the Contractor shall prepare a report summarizing the key terms and conditions of each project. This report shall include, but not be limited to, items such as the rights and responsibilities of each party to the agreement, project scope, a summary of the cash waterfall in the lockbox agreement, AF approval authorities, and key notification dates. (CDRL A010)

3.2.6 Project Fact Sheets

The Contractor shall prepare at the time of project closing the initial Project-level Fact Sheet which provides a one page summary of key project details. (CDRL A006)

3.2.7 Force Protection/Risk Management

The Contractor shall perform an analysis of the safety and risk potential of the AF projects, concentrating on the oversight of physical security and related aspects of force protection, to include measures to protect assets. The Contractor shall provide recommendations describing policy, processes, and procedures that may be required to address protection and safety of AF privatized projects and their occupants. (CDRL A009)

3.2.8 Centralized Design and Construction Oversight Program (CDCOP)

The contractor shall provide management and consultation services necessary to support the AF MHPI CDCOP. (CDRLA012, A013, A014, B001, B003, B004)

· Support PMs in performing MHPI construction oversight activities for various projects. Help ensure project owners/developers perform construction activities in compliance with transaction closing documents and schedules. Research construction-related issues, review design and construction-related documentation, and provide recommendations.

· Assist AF contracted Resident Construction Managers (RCM) with resolving design and construction issues at the installation level. Interface with project owner design and construction representatives as required.

· Maintain and update the CDCOP electronic Handbook as required. Review electronic comments, coordinate responses with AF, and make recommendations. Communicate guidance changes to all applicable stakeholders as required.

· Conduct site-visits to educate stakeholders on the AF MHPI CDCOP, provide training on the repository, CDCOP electronic Handbook, and help develop project-specific construction oversight management tools and templates.

· Assist AF with monitoring, tracking, and facilitating Davis-Bacon Act and other labor issues at project sites. Communicate with applicable stakeholder representatives to track status and ensure issue resolution.

· Assist AF with monitoring, tracking, facilitation, and payment and performance bond compliance at project sites. Communicate with applicable stakeholder representatives to track status, ensure compliance, and provide recommendations for AF action.

· Support the development of additional Portfolio Management tools and guidance to facilitate scheduling and management of Portfolio Management tasks required for each project.

· Consolidate lessons learned to make readily available for division personnel and new PMs.

3.3 Sustainment Services.

The Contractor shall provide PCM sustainment services as described for the individual AF Bases or project sites specified under each Task Order. Appendix 1 contains a summary of Frequency of Portfolio Management Tools. The Contractor shall tailor requirements to meet the specific needs of enhanced use leasing and grouped projects.

3.3.1 Compliance Testing.

The goal of Compliance Testing involves identifying areas of noncompliance with the transaction documents and action plans and bringing these shortcomings to the attention of the AF.

The Contractor shall perform compliance testing for the privatization projects. By assessing compliance with the underlying project documents, such as the ground lease, operating agreement, third-party loan documents, and the Government loan/guarantee documents, it is possible to identify areas requiring additional attention and focus.

The Contractor shall monitor compliance on an ongoing basis throughout the period of performance for portions of the Compliance Checklist as described in individual Task Orders. Compliance Testing shall be conducted on a quarterly basis using the completed compliance checklists (PWS paragraph 3.2.4). The Contractor shall generate a report summarizing the areas of noncompliance, resulting possible outcomes, trends toward non-compliance, impacted related items and the contractor shall generate a list of recommended AF actions based upon these summaries. The Contractor shall maintain frequent communication with AF personnel as necessary to ensure the completion of the compliance checklist. The following shall be included as part of the Compliance Testing Deliverables. (CDRL A016)

3.3.1.1 Roles and Responsibilities

Initial roles and responsibilities shall be defined at the project kick-off meeting. As roles and responsibilities evolve over time, the Contractor shall provide written updates as part of their compliance testing tasking. (CDRL A016)

3.3.2 Project Analysis and Reporting.

The Contractor shall perform the Project Analysis and Reporting component of PCM to include accounting and financial as well as property operations and management analysis and reporting requirements. The focus of this effort is producing objective measurement criteria to assess the achievement of the AF program goals. Specifically, this shall include but not be limited to the following tasks: (CDRL A001)

3.3.2.1 Annual Budget Review

Annual budget approval, both capital and operating, shall typically be the most significant aspect of AF involvement in the privatization project. The Contractor shall assist the AF in the review of the proposed project owner budgets for HP, EUL, VBT, VAP, and Real Estate Transactions/Program projects. This review shall include an analysis of the installation/ project site-level forecast to determine the impact the proposed budget has on the project. The Contractor shall prepare a report that includes detailed comments on the proposed budget for each project. (CDRL A017)

3.3.2.2 Quarterly Accounting and Financial Analysis and Reporting

The contractor shall perform Accounting and Financial Analysis and Reporting on a quarterly basis for each HP, EUL, VBT, VAP, and Real Estate Transactions/Program project. Additionally, all information shall be rolled up into the Annual State of the Portfolio Report for the year, including a consolidated review of the project owner’s annual audit reports. The Contractor shall document steps taken over the past quarter to improve performance, the results of performance improvement initiatives, and opportunities for performance improvement to be addressed in the next quarter. The Contractor shall prepare a quarterly Financial and Performance Improvement Plan report for each individual project in addition to quarterly reports and an annual consolidated report (Annual State of the Portfolio Report) on the entire portfolio (see Section 3.3.5, for performance improvement initiatives and “Best Practices”). The report shall be delivered as specified in each Task Order. The report shall include the following specific areas as specified in each Task Order: (CDRL A001, A019)

3.3.2.2.1 Variance and Trend Analysis

The contractor shall perform variance and trend analysis, which are critical components that define and measure objective performance to assess the success of both the project and program in meeting AF goals. The contractor shall determine if the approved budget was adhered to throughout the reporting period as well as identify current problems, adverse trends, recommended corrective actions, impacts to budget, schedule, future performance, program risk and any other trend or variance issues that may impact the projects. The quarterly report at both the project and portfolio level shall include a thorough and detailed analysis to be used for evaluation of project processes and activities. The consolidated portfolio report (Annual State of the Portfolio Report) shall include analysis utilizing audited financial statements, analysis of all project compliance, insurance and lockbox issues or trends, and significant findings from annual site assessments. The annual report will also include local markets information such as local housing market, school districts and crime levels which could affect the project The Contractor shall recommend changes, as appropriate, to streamline project activities.

3.3.2.2.2 Accounting, Finance, and Reporting Functions

Critical to all Portfolio Management assignments are the Accounting, Finance, and Reporting functions of Privatized Project Owner/Lender data . The Contractor shall perform the following functions (list not all inclusive):

· Develop a document management function for collecting, reporting, and evaluating quarterly and annual financial reports submitted by both the privatization development partner and lender. This includes construction as well as operating data.

· Monthly (and as needed) review, analysis, tracking, trending and reporting of the (EUL) Government Lease Payment Account (GLPA) cash, credits, in-kind consideration or other equivalent monetary or non-monetary (i.e., goods or services) compensation.

· Summarize individual installation, project and portfolio-level key financial highlights, leasing/ occupancy statistics, referral/waiting list data, trend analysis, operations data, etc as appropriate.

· Debt coverage ratio reporting.

· Review the capital and operations forecasting analysis for current and future years.

· Review budget variance analysis and corrective action alternatives, including future impact studies.

· Reporting and monitoring of Lockbox and Trust accounts.

· Review housing referral summary reports.

· Review annual inspection reports.

· Review the annual operations, escrow and reserve accounts and construction budgets.

· Analyze future capital expenditures for cost/benefit and make recommendations for improvement.

· Analyze future reinvestment expenditures and needs for cost/benefit and make recommendations for improvement.

· Review of the independent certified public accountants audit reports and accompanying financial statements.

· Monitor tax and insurance payments for accuracy.

· Monitor loan performance.

· Review guaranteed borrowers current financial statements.

· Review development schedules and status

· Analyze overall project health and viability

· Benchmark the AF portfolio against private industry

In addition, the Contractor shall develop performance metrics for each of the above-referenced reporting functions.

3.3.2.3 Lockbox/Trust Account Reviews

The contractor’s quarterly financial report shall place significant emphasis on project cash flows (and/or in-kind-consideration) to ensure they are distributed in accordance with both the approved project budgets for the current period and the flow of funds documented in the transaction documents. The Contractor shall make recommendations for improvement of this process. (CDRL A020)

3.3.2.4 Investment Analysis

The Contractor shall conduct a review of investments for each project to include; type of investment, timing of maturities (laddering), and yield to be used in evaluating adequacy of account deposits. This includes a review of risk/return for all acceptable investment vehicles for monies held in lockbox/trust accounts. The Contractor shall provide recommendations to the Air Force for adjustments to investment strategies or actions taken at each HP, EUL, VBT, VAP, and other Real Estate Transactions/Program projects. The Contractor must also be prepared to benchmark the AF portfolio against similar private industry portfolio. (CDRL A021)

3.3.2.5 Reinvestment Reforecast Analysis

The Contractor shall conduct an analysis review of each project’s Reinvestment Account, Quality of Life Account, GLP Account (EUL) and all similar out-year investment accounts. The contractor’s analysis will benchmark actual performance against pro forma estimates, transaction out-year renovation plans, and actual project requirements, assess/forecast long-term financial viability of the project and will provide recommendations to the AF for action based upon this analysis. (CDRL A022)

3.3.2.6 Other Project Analysis

The Contractor shall conduct other required analysis to support unique needs of each project as specified in a specific task order. This may include detailed construction “peer review” analysis, design analysis, development analysis, financial analysis, economic analysis, or other project analysis. (CDRL A001)

3.3.3 Insurance Compliance Review

The Contractor shall perform the Insurance Compliance component of PCM. The need for adequate insurance coverage is fundamental to protecting the interests of the AF and enhancing the value of the portfolio. The Contractor shall prepare an annual Insurance Compliance report as specified in Appendix 1 and the individual Task Order, providing the results obtained from performing the following functions:

· Review the insurance policies in place for the project to determine whether the developer has the types and amounts of insurance required by the transaction and loan documents and the Government is appropriately named as loss payee and/or additional insured.

· Compare the latest insurance coverage trends in the private sector to the coverage in place for the Air Force’s housing privatization & enhanced use leasing efforts. The result of this comparison could include recommendations for additional coverage or changes to existing contractual terms to maintain viable insurance coverage.

· Identify key terms and provisions that must be included in the insurance section of all future privatization agreements. Though insurance compliance shall be performed on an annual basis for each project, key policy expirations and events shall be monitored and addressed throughout the year as part of compliance testing services.

The Insurance Compliance report shall summarize each of the key insurance policies in place at each of the projects, including the significant terms, as well as a recommendation on potential policy changes for existing and/or future privatization projects. (CDRL A023)

3.3.4 Standardized Program Reporting

The Contractor shall perform the MHPI Program Evaluation Plan (PEP) Reporting, EUL Program Reporting, VBT Reporting, Real Estate Transaction Reporting, BRAC Monitoring to include VAP Reporting, any other Special Legislation Reporting or other reporting components of PCM. The Contractor shall prepare the initial Project-level Fact Sheet at the time of project closing. The Contractor shall prepare and deliver the semi-annual PEP report, individual project-level report, and AF-level executive summary based on schedules identified in each task order. The Contractor shall coordinate issues/responses from appropriate AF organizations and provide resolution recommendations. The Contractor shall revise the report (PEP or other) submittal documents, as necessary and as requested by the AF, to ensure complete reports are submitted. The Contractor shall prepare and deliver to the AF, a consolidated report (PEP or other) in conformity with the Office of the Secretary of Defense guidelines, as specified in each Task Order. (CDRL A001, A024, A025, A026)

3.3.5 Document Management Services

The Contractor shall be required to retain all information from the existing web-based document management repository, designed to collect, retain, and analyze privatization project data, financial information, transactional documents and materials. After transition, the Contractor shall distribute and manage Post Closing Portfolio and Asset Management data. The storage and upkeep capabilities will be the responsibility of the Contractor. Document management is a critical component to the overall PCM process. The Contractor shall be responsible for managing the document management repository to store and maintain electronic files of all project documents and allow electronic sharing of documents among stakeholders. The goal of document management is to provide a coordinated central location for the electronic storage of significant documents prepared in conjunction with the Portfolio Management process and meet the following objectives: (CDRL B005)

· Eliminate barriers associated with obtaining project information

· Provide ability for stakeholder independence and self service

· Promote better communication and awareness

· Leverage the experience of AF personnel across the portfolio

· Employ a standard methodology for collecting, tracking, and analyzing Privatized Project Owner/Lender financial data

· Substantially enhance the speed and accuracy of analysis and benchmarking functions

The Contractor shall maintain and continuously develop the Document Management repository. The Contractor’s Document Management function shall also keep a record of performance improvement initiatives and “Best Practices” for use throughout the AF. The Contractor shall update the Document Management repository frequently to reflect the most current information. Information housed in the repository falls into the following categories:

· Document Management: Each project has a home page that contains a document library to store all necessary files such as final legal documents, construction reports and project documents. All project stakeholders have access to this document library to view and upload files.

· Lessons Learned Tracking: The repository contains Lessons Learned data allowing individual stakeholders to submit or download lessons on a variety of topics as submitted by a variety of Air Force stakeholders.

· Privatized Project Owner Financial Tracking: Each project has a standardized format which stores data on construction progress and operational and financial performance. Data can easily be aggregated at the portfolio level. Users can create automated reports which increase efficiency and provide greater standardization of reporting.

· Stakeholder Sites: Stakeholders have one centralized location for all training, tools and resources needed to ensure consistent oversight of the projects, consistent messaging and sharing of program updates and improvements. The MAJCOMs, Installation Asset Managers, AFCEC, and Resident Construction Managers (RCM) have specialized stakeholder sites.

· Topic Sites: There are dedicated sites for specific housing privatization topics. For example, the Insurance Tool and Resident Satisfaction Survey sites allow the PM to review and quickly assess the status of each project in the portfolio at a glance.

The current web-based document management repository responsibilities will be transferred to the Contractor during the transition phase and there should be no visible break in service. The Document Management information is currently maintained in a Microsoft Sequel Server Database. The Government shall own all data and reports as described in these paragraphs. The Contractor shall provide all reports and data to the Government in an open, non-proprietary format. If a proprietary component is required to achieve maximum functionality in reports and data, all source code necessary for the data repository will become the property of the Government unless otherwise agreed. This includes formulas and details on report creation provided by document management repository service for individual projects. The Contractor shall be required to transition the Document Management repository data and all its reports to a follow-on Contractor as necessary at the completion of this contract and ownership of all reports within the repository, will remain with the government. The current repository is built on the SharePoint platform hosted on a private server, and benefits from 24-hour technical support through the current PCM contract. As of 2012, there was 1.1 TBs of information hosted in the repository. The repository has approximately 1,200 users of which over 300 are considered active i.e. access the site at least once per month. AFCEC will provide direction on access criteria and the Contractor will be responsible for strict control and monitoring. Various levels of access can be provided. For example, an AFCEC PM has access to the entire site, whereas a Capital Asset Manager at an Installation has access only to their project team site. In addition to the HP Branch, users include staff from the installation, MAJCOM, Air Staff, SAF, and other housing privatization stakeholders. HP residents do not have access to the repository.

The repository must meet industry established security best practices and have documented Management and Operational policies and standards in place.

3.3.6 Other Portfolio Management Activities

The Contractor shall assist the AF in the performance of additional Privatization Management Tools as outlined below:

3.3.6.1 Project On-Site Assessments

The Contractor shall perform all reviews to assess the performance of the property operations/development team at the Base. These reviews shall include financial, operational and technical aspects with site visits performed annually and project audits performed on an exception basis, as identified by the government, triggered by poor project performance. Site visits and project audits shall include a project process/performance improvement report as part of supporting documentation. (CDRL A027, B003)

3.3.6.2 Project and Development Management

Review construction surveillance, development reports and inspection results to help ensure the AF is receiving the project scope (and/or in-kind consideration) and quality anticipated at closing. The Contractor shall provide special monitoring, oversight or other reviews and site assessments as requested by the AF. These may include activities such as construction/development management studies, review of design exception notices, analysis of construction estimates and costs, environmental studies, reviews or analysis or other activities requiring construction management or engineering expertise. The contractor shall ensure the final environmental documents (Environmental Assessment/Environmental Baseline Survey) are in effect. The contractor shall assist the AF in the resolution of construction/development matters as a result of post closing environmental issues. The Contractor shall provide assessments of project owner/developer compliance with transaction requirements regarding ENERGY STAR®. The contractor may be asked to provide assessments regarding U.S. Green Building Council's (USGBC) Leadership in Energy and Environmental Design (LEED) Green Building Rating SystemTM. (CDRL A028, B003)

3.3.6.3 Survey Analysis and Reporting

Review, analyze, and consolidate base-level tenant survey data to identify lessons learned, best management practices, and overall tenant satisfaction indicators with MHPI projects as requested by the AF. The Contractor shall maintain a Document Management repository as detailed in Section 3.3.5, which maintains data and reporting, as well as performance improvement initiatives, Lessons Learned and “Best Practices” for dissemination to other bases/projects. (CDRL A029)

3.3.6.4 Capital Repair and Replacement (CR&R) Visits

The Contractor shall conduct CR&R Visits to confirm whether adequate funding is allocated to support the capital repairs and improvements necessary to maintain the privatized housing units over the near and long-term. The review will consist of ensuring the plan has all project CR&R costs adequately represented, Life Cycles are reasonable & consistent with industry standards, and project owner is complying with this requirement as part of annual budget reviews. CR&R Visits are to be conducted at select locations to assess plans, evaluate infrastructure and representative sampling of facilities. The Contractor will develop a report of the visit, identify areas of concern, and recommend solutions to potential short and long term risks in order to reach an agreement with the project owner on CR&R requirements. (CDRL A018, B003)

3.3.6.5 Direct Loan Closing/Project Refinancing/Project Restructuring Support

The Contractor shall provide the necessary reviews, analysis, and recommendations to support AF decisions supporting actions at a privatized project location with regard to Government Direct Loan funding, differential lease payments, project refinancing and/or project restructuring. This may include legal, arbitration, financial, negotiations, briefings, development analysis or other support. (CDRL A030)

4.0 TASKINGS AND DELIVERABLES

4.1 Base Support.

AFCEC will provide workstations for up to four (4) on-site contractor personnel to be used in the performance of this contract at the Government workplace located at Port San Antonio, Texas. Each work station will include a desk, chair, two 2-drawer cabinets, and a telephone with local, long distance, and DSN access which shall be used to conduct official Government business. In addition, one computer station (loaded with all necessary data systems) will be provided. The government will also provide access to a copier and facsimile machine which shall be used to conduct official Government business. Contractor employees will be furnished general office supplies required to perform their assigned duties.

4.2 Contractor Full Time Equivalent Reporting

The Contractor shall report ALL contractor labor hours (including subcontractor labor hours) required for performance of services provided under this contract for Post Closing Management -13 via a secure data collection site. The Contractor is required to completely fill in all required data fields at http://www.ecmra.mil.

Reporting inputs will be for the labor executed during the period of performance for each Government fiscal year (FY), which runs 1 October through 30 September. While inputs may be reported any time during the FY, all data shall be reported no later than 31 October* of each calendar year. Contractors may direct questions to the CMRA help desk.

*Reporting Period: Contractors are required to input data by 31 October of each year.

Uses and Safeguarding of Information: Information from the secure web site is considered to be proprietary in nature when the contract number and contractor identity are associated with the direct labor hours and direct labor dollars. At no time will any data be released to the public with the contractor name and contract number associated with the data.

User Manuals: Data for Air Force service requirements must be input at the Air Force CMRA link. However, user manuals for government personnel and contractors are available at the Army CMRA link at http://www.ecmra.mil.

4.3 Miscellaneous Deliverables.

4.3.1 Contractor’s Progress, Status, and Management Report (CPSMR)

Prepare and submit a CPSMR. The CPSMR shall be used to review and evaluate the overall progress of the project, along with any existing or potential problem areas. The CPSMR shall include a summary of the events that occurred during the reporting period, discussion of performance, identification of problems, proposed solutions, corrective actions taken, and outstanding issues. (CDRL B006)

4.3.2 Technical Interchange, Status, Review, and Other Meetings

The Contractor shall provide qualified representatives to attend Government-specified meetings, both at Port San Antonio, Texas, and at the individual project locations, pursuant to the requirements of this PWS and Individual Task Orders. The Contractor may be tasked to provide minutes of these meetings. The Contractor shall provide resources to ensure effective meetings with the participants. The resources required may include audiovisual equipment, facilitation, and technical presentations. Specific types of meetings and the Contractor’s responsibilities relative to the type of meeting will be provided in each individual Task Order. (CDRL B002, B003, B004)

4.4 Government Furnished Material/Information.

In addition to the items identified in Para 4.1, applicable Government Furnished Material/Information will be specified in the individual Task Order issued against the basic Indefinite Delivery/Indefinite Quantity contract. The existing project data will be provided in an open, non-proprietary format.

5.0 SERVICES SUMMARY

The following services summary reflects the objectives and thresholds used to track contractor performance for task orders awarded against the PCM-13 basic contract. The Multi-Functional Team in accordance with the Quality Assurance Surveillance Plan may evaluate all or part of the following elements. Specific performance objectives will be identified in the PCM-13 task order.

PWS

PARA

OBJECTIVE

METHOD

VG: 95-99% Service in place as of negotiated start date, remainder within 15 business days of negotiated start date

S: 90-94% Service in place as of negotiated start date, remainder within 15 business days of negotiated start date

M: 80%-89% Service in place as of negotiated start date, remainder >15 business days of negotiated start date

U: <80% Service in place as of negotiated start date, remainder >15 business days of negotiated start date

VG: 95-99% Service provided with no disruption for duration of Task Order

S: 90-94% Service provided with no disruption for duration of Task Order

M: 80%-89% Service provided with no disruption for duration of Task Order

U: <80% Service provided with no disruption for duration of Task Order

VG: 95-99% FPY, delivered on schedule. Necessary rework accomplished within 3 business days.

S: 90-94% FPY, delivered on schedule. Necessary rework accomplished within 5 business days.

M: 80%-89% FPY, delivered on schedule. Necessary rework accomplished within 10 business days.

U: <80% FPY, delivered on schedule. Necessary rework requires more than 10 business days.

VG: 2-4 errors, delivered on schedule. Necessary rework accomplished within 1 business day.

S: 5 compliance errors per review, delivered on schedule. Necessary rework accomplished within 1 business day

M: 6-7 errors. Necessary rework accomplished within 3 business days

U: 8 or more errors. Necessary rework takes 4 or more business days