Attachment_17_Operations_Costs_Model.docx

Operations Recurring Cost Reimbursement and Disaster Specific (ODC) Costs Model The Contractor’s operational structure, methodologies and business practices shall detail components justifying their response to any size/type disaster and/or multiple disaster declarations to meet contract requirements.

Operations are defined within the PWS and have distinctive Contract Line Item Number (CLIN) lines within the contract. The cost disclosed by the Contractor for the level stated within the CLINS will be adopted as the “Recurring Cost Benchmark” once accepted by the government. On a continual basis, audits of Operations CLINs will occur at FEMA’s discretion by government employees, (typically by the COR, Quality Surveillance Team, or Task Monitor) and may change without notice (not excluded during periods of disaster inactivity). Operations costs submitted for payment will be verified during the audits. The audits will be conducted at the agreed location(s) or designed FEMA facility, depending on the audit criteria.

Results of Operation audit(s): The objective is verifying the Contractor’s Operations monthly invoices provided the deliverables associated with the cost proposed by the contractor. Unfulfilled deliverable will result in a lesser payment for that CLIN. Discussions on what FEMA will accept as verification for full payment or partial payment shall take place during the ninety (90) day transition period between FEMA and the contractor. A written record of the findings will be disclosed to the Contractor and recorded in the DOD CPARS.

The Contractor is expected to remedy the delivery shortage immediately. In the event a remedy(s) for the deliverable shortage is not attained before the next invoice, the Contracting Officer (CO) will be notified of the non-compliance for further action.

Phase-In CLINs are duplicative of the Base Year CLINs purposely to establish cost for the three month period of performance.

Operations CLINs are:

Phase In Cost Reimbursement Designated Contractor trainers are to complete the FEMA program indoctrination training and obtain a schedule for audit purposes of the subsequent training to other Contractor personnel and inspectors. An audit will occur no later than 90 days from the start of the transition. The audit scope will include verification that the Contractor will successfully meet transition requirements and associated thresholds that apply according to the Performance Work Statement. The Contractor shall provide FEMA their approaches to transition workloads and transfer equipment from the incumbent Contractors.

Cost Validation:

1. To be determined based on the Contractors proposals.

Facilities Recurring Cost Reimbursement and Disaster Specific Cost (Encompasses PRS) The Contractor’s operation facility shall be described in the proposal and include the cost and square footage to be rented/purchased for the geographic area of the location. Recurring cost reimbursement and disaster specific other direct disaster specific (ODC) facility costs shall be identified on the cost analysis work sheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option year.

Cost Validation:

1. Comparison of facility square footage against GSA allowable facility rates.

2. Associated costs in line with applicable specifications.

Warehouse Operations Recurring Cost Reimbursement and Disaster Specific Cost (Encompasses PRS) Contractor shall provide a description of warehouse systems to support operations and inspection services. Any disaster related warehouse operation costs shall be invoiced as an Other Direct Cost (ODC). Recurring cost reimbursement and disaster specific other direct disaster specific (ODC) warehouse facility costs shall be identified on the cost analysis work sheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option year.

Cost Validation:

1. Analysis during proposal to review and validate billed expenses.

2. Associated costs in line with applicable specifications.

Labor Operations and Management Recurring Cost Reimbursement and Disaster Specific Costs If more than one job function is assigned to an individual, the percentage of time dedicated for each job function shall be disclosed to include shared cost. Staffing of human resources would include, however, but not be limited to: inspectors, work assigners, supervisors, training staff, quality and production staff, mid and higher level managers and security managers as contained within the Contractor’s proposal. Recurring cost reimbursement of labor and disaster specific other direct disaster specific (ODC) labor costs shall be identified on the cost analysis work sheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option year. Validation will occur when proposals are accepted and verified during continual FEMA audits.

Cost Validation:

1. Monthly certified payroll

2. Associated costs in line with applicable specifications.

Training and Partnering Recurring Cost Reimbursement and Disaster Specific Costs Contractor shall implement mandatory and COR approved training programs and documents. Training content areas must include: Individual Assistance Program, FEMA Repair Program, Customer Service, Security Awareness and Privacy Awareness further outlined in Attachment 6. Acceptable records of staff training shall include training course title, name, employee or inspector ID number and dates of completion. The Contractors shall provide FEMA advance notice of training schedules and offer FEMA an invitation to audit each of the trainings. Validation will occur quarterly (at minimum) via a contractor electronic report. Recurring cost reimbursement and disaster specific other direct disaster specific (ODC) Training and/or Partnering costs shall be identified on the cost analysis work sheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option year.

Cost Validation(s):

1. Contractor’s staff training records including applicable score;

2. Receipt of Contractor training schedule(s) to FEMA with invitation;

3. All training change(s), enhancements provided to COR;

4. The annual preparedness exercise/training.

5. Associated costs in line with applicable specifications.

Management of Government Furnished Property (GFP)/Contractor Acquired Property (CAP), Sustainment and/or Replacement Cost Reimbursement & Disaster Specific Costs Task Order performance indicates the ability to transfer equipment, deploy staff and overcoming obstacles in order to accomplish the work required. The Contractor shall perform physical inventories of FEMA-owned property, reconcile discrepancies, and certify the results of Government property in their custody by June 30 of each year. Contractors must provide detailed annual reports listing model numbers, barcodes, serial numbers and operable status of such property by June 30 of each year. FEMA form 61-18 must accompany this report. Equipment (i.e. tablets, electronic fingerprint kits (EFK), cameras and maintenance agreements) quantities and specifications shall meet or exceed FEMA standards to execute inspection contract requirements. Hardware used to conduct the inspections must meet specific technical specifications prior to use. To validate, Contractor records will be obtained and assessed during continual FEMA audits. Recurring equipment cost reimbursement and disaster specific other direct disaster specific (ODC) equipment costs shall be identified on the cost analysis work sheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option year.

Cost Validation:

1. Validation of Contractor’s logistics processes to successfully distribute appropriate equipment for field operations;

2. Verification of all CAP reports.

3. Contractor is required to replace the GFP/CAP with the same or equivalent property within ninety (90) days of reported loss, damage, destruction or theft.

4. The hardware proposed meets the design requirements of Attachment 11 and has been tested and passed and been approved through FEMA prior to use.

5. Associated costs in line with applicable specifications.

Information and Technology (IT) and Communications/Data Plans Recurring Cost Reimbursement and Disaster Specific Cost (Encompasses PWS) The Contractor is responsible for maintaining continuity of operations that will meet all of FEMA’s requirements during normal and catastrophic events. Contractor shall disclose expenses for landlines, cell phones, smart phones, external data connections, T-1 lines, licensing costs, servers, routers, firewalls, data storage, maintenance, (etc. as approved by FEMA). The Contractor shall have contingencies in place to be able to perform inspections of residences via electronic means at the damaged residence. The Contractor shall use Government Furnished Property and/or Contractor Acquired Property (includes CAP software) in addition to Government Furnished data plans and software. The Contractor shall provide mobile communication systems such as Broadband Access Cards or other mobile communication devices to include optional methods of communicating data from the field to FEMA if broadband systems are not available. Recurring cost reimbursement and disaster specific other direct disaster specific (ODC) IT and Communications costs shall be identified on the cost analysis work sheet in one or both CLIN categories. Cost reasonableness will be conducted during proposal review and at the beginning of each option year.

Cost Validation:

1. Validation of cost for Contractor’s schedules.

2. Associated costs in line with applicable specifications.

Personnel and Inspector Cadre Operations Cost Reimbursement and Disaster Specific Costs Contractor shall maintain key and support staff with knowledge of disaster management, with the ability to coordinate and respond to federal emergencies and disaster events. The Contractor’s Inspector Cadre shall remain at the initial established level as defined in the Contractor’s Preparedness processes and demonstrate the availability of each cadre member for disaster response (to be audited as determined by FEMA). Inspectors participating in multiple cadre lists will not be counted on any specific contractor’s cadre lists. Inspectors shall not work on concurrent contractor task orders. (Reference Requirement Section One regarding withholding of Preparedness retainer).

When a vacancy is identified, the ability to recruit and replace staff with relevant knowledge and experience in disaster management is fulfilled. The Contractor shall provide proposed position descriptions of the various staff working on this contract to include office staff. The Contractor shall also provide timelines associated with new hiring and replacement of field inspection staff members. These shall be communicated to the COR illustrating inspector cadre levels for the organization. The Contractor shall respond to inspection Task Orders that are in a single declared area, or multiple declared areas in CONUS and OCONUS. Validation will occur when proposals are accepted and verified during continual FEMA audits.

Cost Validation:

1. Associated costs in line with applicable specifications.

Inspections Inspections costs will be Firm Fixed Price. The Contractor is to disclose the composition of the fixed costs to include inspector fee, administrative support, QC support and etc.

Partnering Cost Reimbursement Partnering costs are capped. There will be two levels of partnering, (1) Management, and (2) Operational. Costs are reimbursable and shared with the Government.

Technical Assistance Cost Reimbursement

When services are needed, the Government will forward to the Contractor the Statement of Work (SOW) and a Request for Proposal (RFP). Refer to Section H for labor rate tasking categories applicable to the technical assistance task cost line items.

Other Direct Costs

All ODC’s will be reimbursed at cost, plus material handling (if applicable) or G&A. All costs associated with travel will be reimbursed in accordance with approved Federal Travel Regulation rates during the time of travel. All ODC’s shall be itemized on each ODC invoice.

Other Direct Cost (ODC) to be incurred under this contract may include but are not limited to the following:

· Inspector Adjudication Support

· Inspector Registration Events Support

· Emergency Purchases

· Materials (not emergency purchases)

· Travel Expenses (CONUS and OCONUS)

· Disaster Specific Contractor Acquired Property

Attachment 17

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