Attachment 2 Performance Requirement Summary fbo.pdf

June 8, 2012

FEMA

HOUSING INSPECTION SERVICES (HIS)

FY2012

Solicitation #: HSFE80-12-R-0033

Performance Requirement Summary

PROCUREMENT SENSITIVE

June 8, 2012

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Table of Contents

I. INTRODUCTION

II. SCOPE

III. PERFORMANCE REQUIREMENT SUMMARY

Requirement Section 1: Quality Management Systems C.5

Requirement Section 2: Task Order Performance

IV. THE SELECTED SERVICE PERFORMANCE AREAS (SSPAs)

SSPA # 1 Quality Control

SSPA # 1.A – Quality Control C.6.9

SSPA # 2 Production/Timeliness (Product Realization)

SSPA # 2.A – Initial Inspections and Appeal Inspections C.6.8.1

SSPA # 2.B – Withdrawn Inspections C.6.8.1.1

SSPA # 2.C – No Contact Inspections C.6.8.1.2

SSPA # 2.D – No Entry/Inaccessible Inspections C.6.8.1.3

SSPA # 2.E – Priority Inspections C.6.8.1.4

SSPA # 2.F – Shelter Inspections C.6.8.2

SSPA # 2.G – Site Inspections C.6.8.3

SSPA # 2.H – Sweep Inspections C.6.8.4

SSPA # 2.I – Production C.6.11.1

SSPA # 2.J – Inspection Aging C.6.11.2

SSPA # 2.K – Uniformity of Response: Percent of Aged Work Measurement

SSPA # 3 Customer Service C.6.5

SSPA # 3.A – Customer Service

SSPA # 4 Miscellaneous

SSPA # 4.A – Initial Operational Report C.6.12.1

SSPA # 4.B – Operational Report (Biweekly) C.6.12.2

SSPA # 4.C – Final Operational Report C.6.12.3

SSPA # 4.D – Surge Event Reports (Incremental Operations Reports) C.6.12.5

SSPA # 4.E – Cooperative Management

I. INTRODUCTION

This Performance Requirement Summary (PRS) is a Government developed and applied document outlining the surveillance procedures that will be used in assessing the quality of performance achieved under the Housing Inspection Service’s (HIS) contract as outlined in the PWS. The Quality Assurance Surveillance Plan (QASP) will capture surveillance results in relation to Contractor performance per Task Order. The intent is to ensure that inspection services for CMHIS which the Contractors perform are in accordance with these established performance measures and the Government receives quality services as defined in the contract. The Contractor is responsible for management and quality control actions to meet the terms of the contract.

II. SCOPE

During the execution of services to fulfill inspection delivery obligations, Contractor performance will be monitored. Inspector participation, production and quality will be addressed; corrective/preventive action plans requested and records of the review of the effectiveness of actions taken shall be assessed.

III. PERFORMANCE REQUIREMENT SUMMARY

Requirement Section 1: Quality Management Systems C.5

The Contractor shall provide FEMA their ISO 9001 compliant QMS demonstrating acknowledgement of FEMA’s inspection contract requirements. Contractor established QMS processes shall contain their methods and systems to accomplish inspections and other associated requirements as defined in the Performance Work Statement (PWS). These processes shall specify the series of actions or operations to be executed, as well as accountability for each, in order to deliver to FEMA the described contract services and products (i.e. 20,000 inspections completed per day etc). Submitted contractor proposals demonstrating the interactions between QMS processes in order to achieve deliverables will need to be deemed acceptable by FEMA.

FEMA will develop surveillance plans based on the processes contained within the Contractor’s QMS. Third party (performed by a registrar) and second party (performed by FEMA) (External audits) reports and findings will be utilized by FEMA to verify conformance to inspection, operations, preparedness, and Task Order performance requirements.

An initial audit will be conducted by FEMA when the Contractor has completed their Transition Plan activity to verify conformance.

FEMA may observe the Contractor’s official internal audits as defined within their QMS.

Furthermore, FEMA may observe all the third party initial certification, surveillance, and recertification audits outlined by the Conformity Assessment Bodies (CABs) as identified by the International Accreditation Forum, Inc. (IAF) Mandatory Document for Duration of QMS and Environmental Management Systems Audits. All Contractor audit schedules shall be communicated to designated FEMA personnel. QMS audit findings will be shared with FEMA COR for evaluation and evidence of compliance to requirements.

FEMA shall weight ISO standards four (4) through eight (8). FEMA shall withhold a 1% retainer from the contract cost per year and a release of that retainer shall be based on the contractor’s annual QMS audit outcomes provided by the independent third party auditor as described by the Performance Work Statement and approved by FEMA. The contractor’s monthly invoice for contract costs shall include the required 5% deduction for withholding.

Following the annual surveillance or re-certification audit, the contractor shall submit a QMS retainage release invoice. QMS retainage release shall be based on the following release criteria:

Audits resulting in no major or minor non-conformities shall result in a release of the entire five (5%) percent retainer. Any of the five (5) standards receiving a major non-conformity as determined by the audit firm shall have a minimum of one-half (.50%) percent permanently withheld from the retainer for the standard(s) identified as a major non-conformity. Minor non-conformities shall have a minimal of one-quarter (.25%) percent withheld from the retainer for the standard(s) identified as a minor non-conformity. The following exception applies for minor non-conformities: for the Base period, the contractor shall be allowed up to five (5) minor non-conformities without permanently withholding one-quarter (.25%) percent from the retainer. For the out years, the contractor shall be allowed up to three (3) minor non-conformities without permanently withholding one-quarter (.25%) percent from the retainer. To prevent additional forfeiture, the contractor shall initiate corrective actions for either nonconformance in accordance with their QMS corrective action procedures and plans. If the corrective action is not completed in the time allotted by the auditor and/or the corrective action is not effective or approved by the auditor for a major non-conformity, the entire one (1%) percent withheld for that standard shall be forfeited. If the corrective action is not completed in the time allotted by the auditor and/or the corrective action is not effective or approved by the auditor for a minor non-conformity, one-quarter (.25%) percent will be forfeited for that minor nonconformity.

QMS Dispute Resolution Procedures: If the Contractor and COR are unable to reach agreement on the evaluation results within 45 days of receipt of the invoice, the matter shall be elevated to the CO. The CO will consider any discrepancies between the Contractor and the COR, and issue a final decision. There is no provision for the Contractor to appeal the CO’s final decision. The original evaluation shall be forwarded to the CO for retention in the Official Contract file, and one copy each shall be provided to the Contractor and the COR. The evaluation will be used internally by the government only.

Although audit findings are confidential, a statement regarding the audit finding report will be recorded in the Department of Defense (DoD) Contractor Performance Assessment Reporting System (CPARS).

Base Year Threshold:

1. Provision of all established QMS processes/procedures to consistently provide conforming inspections;

Product realization, process/service validation, monitoring and measurement of processes/product, control of nonconforming product, analysis of data, continual improvement

2. Provision of the effective implementation of the QMS;

Quality policy/objective goals, quality controls, customer service/satisfaction, corrective/preventive action

3. Evidence of meeting contract threshold requirements;

4. Provision of communication systems in order to provide inspection delivery and quality control information;

5. ISO 9001 certificate of registration by an accredited registrar.

Option Year 1 Threshold:

All Base Year minimum requirements Achievement of official/successful ISO 9001 surveillance audit

Option Year 2 Threshold All Base Year and Option Year 1 minimum requirements Achievement of official/successful ISO 9001 surveillance audit

Option Year 3 Threshold All Base Year, Option Year 1 and 2 minimum requirements Achievement of official/successful ISO 9001 recertification audit

Option Year 4 Threshold All Base Year, Option Year 1, 2 and 3 minimum requirements

Requirement Section 2: Task Order Performance

The Task Monitor (TM) will observe contractor task order performance for the COR. The results of Task Order/QASP measurements will establish the threshold for FEMA future audit activity of the Contractor QMS effectiveness.

Contractor performance shall be in accordance with inspection requirements set forth in the Performance Work Statement and will be actively monitored by authorized Government personnel to verify compliance with contract terms and conditions. QASP outcomes which result in Contractor disincentives shall be major focus areas of future audits in order to verify appropriate corrective/preventive actions are implemented and producing effective results.

The Government will review initial, operational, surge event, final and year end management report submissions by the Contractor and track pertinent data generated through the FEMA inspection reporting systems.

A. A separate plan may be used for Technical Assistance Task Orders issued. This

QASP outlines the surveillance procedures that will be used in assessing the quality of performance achieved under the contract. This plan will be incorporated into the contract and used as the basis for evaluating and measuring Contractor performance.

B. The COR and the Task Monitor are responsible for monitoring Contractor performance. The TM will document Contractor progress and performance and inform the COR regarding any potential issues and recommended courses of action. Issues of a contractual nature will be reported to the CO by the COR.

C. The method of surveillance will be 100% inspection except for Customer Service which will be based on random sampling.

D. SSPAs specified in the Performance Requirement Summary are evaluated based on performance under individual Task Orders. All Task Orders issued and released in a performance period will be evaluated.

E. Following Contractor release of a Task Order and receipt of the Final Operation

Report, the Task Monitor will complete the QASP evaluation in accordance with requirements.

F. Acceptance of QASP Results: A written acceptance will be submitted to the

Contractor, further, a written signed acceptance or non-concurrence is requested within ten business days of presentation of the FEMA prepared QASP. In the event the Contractor does not concur with the FEMA prepared QASP; the reason for non-concurrence is prepared by the Contractor and sent to the TM and the COR stating the reason(s) for non-concurrence. The Contractor, COR, and TM will affix their signatures to indicate agreement or negotiate changes agreed to by both parties on the concurrence document. It is estimated that such agreement should normally be reached within 30 days if evaluation negotiations are requested by the Contractor.

G. QASP Dispute Resolution Procedures: If the Contractor and TM are unable to reach agreement on the evaluation results within 45 days of the release from a Task Order, the matter shall be elevated to the COR. If the Contractor and COR are unable to reach agreement on the evaluation results within 60 days after release from a Task Order, the matter shall be elevated to the CO. The CO will consider any discrepancies between the Contractor and the COR, and issue a final decision. There is no provision for the Contractor to appeal the CO’s final decision. The original evaluation shall be forwarded to the CO for retention in the Official Contract file, and one copy each shall be provided to the Contractor and the COR. The evaluation will be used by the government only.

H. Concurrence Document: Immediately following agreement on the evaluation results, the CO will prepare a final Task Order modification for Contractor signature (bilateral agreement) which specifies the fixed per inspection rate, adjusted per inspection rate, if applicable, number of inspections eligible for payment and the fixed price of the Task Order. This will include the incentive, if applicable, and de-obligation of excess funds. (See the contract clause entitled “Task Order Procedures”).

IV. THE SELECTED SERVICE PERFORMANCE AREAS (SSPAs)

A detail of processes and procedures to achieve performance requirements for these categories shall be included in the Contractor’s proposal. Changes to proposal responses require approval by the COR and CO. Multiple activations will vary in size, geographic location, degree of destruction, and cultural diversity. To minimize disaster deployment differences, the CO, with the assistance of the COR and to the best of their ability, will attempt to assign (over the life of the contract) the various sizes and types of disasters equally provided Contractors are performing at defined thresholds.

Selected Service Performance Areas (SSPAs) applied to the Task Order performance have incentive and/or disincentive payment schedules. The SSPAs established below measure the PRS requirements in the following categories:

SSPA # 1 Quality Control SSPA # 2 Production/Timeliness (Product Realization) SSPA # 3 Customer Service SSPA # 4 Miscellaneous

SSPA # 1 Quality Control

SSPA # 1.A – Quality Control C.6.9

Objective: To demonstrate the effectiveness of the Contractor’s QMS, records of QC results will be measured against QMS requirements. FEMA Corrections shall be corrected and returned to the TM within seventy-two (72) hours and fifty-nine (59) minutes from issuance. Inspections that do not meet FEMA requirements are considered FEMA Corrections (FCOR). These inspections are returned to the Contractor at no cost to the government to remedy the error(s).

Threshold:

1. The threshold for correction is no more than 2.50% of all inspections completed within the Task Order.

2. Scoring system for FEMA Correction used by the Contractor as outlined within the PWS is shown to be accurate in design and used during QC.

3. Records of trends and corrections are disclosed to FEMA with a communication of actions taken when trends are identified and disclosure of the preventive actions reported.

4. Contractor cooperated on receiving failed inspections up to 180 days from the date of the completed inspection. Exception: Contractor is not required to take corrective action after a release from Task Order is accomplished.

5. Contractor shall provide documentation to FEMA illustrating a timeline of all inspectors’ work QC’d throughout the Task Order.

6. Additional thresholds may be added based on the Contractor’s proposal activity under QC.

SSPA # 2 Production/Timeliness (Product Realization)

SSPA # 2.A – Initial Inspections and Appeal Inspections C.6.8.1

Objective: To receive completed inspections in a timely manner based on the established inspection threshold deliverables by completed percentages in timeframes by days as required.

1. Work is returned that adheres to the FEMA requirements, IHP Inspection Guidelines, Inspection Standards, addenda and any other guidance as directed.

2. Inspectors documented the damage sustained as a result of the disaster.

3. Inspectors evaluated the overall habitability call of the dwelling.

4. Contractor made every effort to contact the survivor to schedule appointments.

5. Method of accessing the survivors dwelling included aircraft, boat, foot travel or off road vehicle when required.

6. Contractor properly protected and/or destroyed PII documentation as identified in their security plan.

SSPA # 2.B – Withdrawn Inspections C.6.8.1.1

Objective: To ensure the Contractor completes all registered applications assigned for inspection and explains the FEMA program to survivors who wish to withdraw for the purpose of completing the inspection.

1. Only inspections that met the withdrawn criteria were marked as such prior to returning to FEMA.

2. The Contractor demonstrated oversight by sampling the Withdrawn Voluntarily (WVO) inspection work making contact with the survivors to reassure FEMA the inspections were not inappropriately withdrawn.

3. The inspector’s record indicated the survivor’s intent to withdraw.

4. Reporting of WVO inspections and the results of validation (i.e., calls to withdrawn survivors) also disclosed in the bi weekly and final reports.

SSPA # 2.C – No Contact Inspections C.6.8.1.2

Objective: To ensure the Contractor exhausted all means to contact all survivors in order to complete inspections.

1. The Contractor fulfilled the requirement to identify the inspections as no contact inspections during the Task Order activation. The Contractor visited the dwelling, posted a notification of contact attempt with return phone number and conducted an exterior inspection in compliance with the PWS.

2. No more than 3% of all work completed resulted in a No Contact type of inspection.

3. All inspections were held as No Contact for the full 14 days from the date issued to the inspector.

SSPA # 2.D – No Entry/Inaccessible Inspections C.6.8.1.3

Objective: To only use “Inaccessible” and the “No Entry” procedures when applicable.

To only return inspections as inaccessible if:

1. A site visit is made and conditions creating the inaccessibility are photographed.

2. All alternative routes and mode of travel identified in the PWS were clearly exhausted.

3. The Contractor demonstrated the difference between “No Entry” and

“Inaccessible”.

4. “No Entry” inspections are not to be confused with the level of damage. Example:

red tag home would be “No Entry.”

5. Limited entry inspections allowed were conducted (NOTE: A building official noting a home not safe for occupancy does not constitute prohibited entry);

6. Contractor researched and established the local perimeters for tagged dwellings and inspected accordingly.

SSPA # 2.E – Priority Inspections C.6.8.1.4

Objective: When notified that inspections either issued or to be issued are “Priority Inspections”, the Contractor fulfills associated requirements.

1. When communicated to the Contractor that certain inspections or groups of inspections were “Priority” the Contractor returned such work within 24 hours of notification.

2. The Contractor will include in all required reports the count of priority inspections completed to the current date of such report.

SSPA # 2.F – Shelter Inspections C.6.8.2

Objective: To complete the inspection in a timely manner so the survivors can have the means to leave the shelter and find better alternative housing. Disaster specific scope will establish the criteria for shelter inspections. FEMA will notify the Contractor when to institute.

1. Contractor demonstrated a process that resulted in successfully completing inspections noted as “Shelter”.

2. Shelter inspections may be deemed as priority

SSPA # 2.G – Site Inspections C.6.8.3

Objective: Identify site feasibility for placement of manufacture housing.

1. Site Feasibility Inspections – to accomplish the type of inspection identified as communicated via disaster specific addenda to determine the criteria used by others for placement of FEMA travel trailers or mobile homes on to survivors’ property, FEMA established group sites or commercial parks;

1. Site inspections should meet the same performance requirements of a damaged dwelling inspection as to timeliness and quality. Addenda language regarding site inspections was followed.

SSPA # 2.H – Sweep Inspections C.6.8.4

Objective: Inspector conducts the registration and inspection at the time of site visit.

1. The demonstrations for the proper use of “Sweep Inspection” Guidelines were followed when request for sweep inspections were required.

SSPA # 2.I – Production C.6.11.1

Objective: Production and aging is managed throughout Task Order activation until completion of all inspection work. Build the processes to complete work on a first-in, first-out basis. Design a plan to meet the production requirements as stated in Attachment 1 PWS. Accomplish full rate of production defined as 20,000 inspections per day in one or a combination of multiple task orders on a given calendar day.

1. Production per day criteria is measured against cumulative work issued daily starting at the end of day three (3) (72 hours) from Task Order issuance.

2. Inspections returned are defined as all completed inspections returned to FEMA during Task Order Activation.

3. Stated performance requirements is based on 20,000 inspections completed per day further defined as the “full rate of production” for any one or multiple task orders.

4. For production measurements, work returned on days one (1) and two (2) will count towards day three (3) production.

5. INCREMENTAL PRODUCTION INCENTIVE: to be proposed by the Contractor in their proposals.

6. Any FCOR inspection returned during Task Order issuance will be removed as a count towards the production threshold and will require recalculation based on the date the work was first completed by the Contractor.

7. Production threshold measurements are calculated against all work issued daily and is considered closed upon completion of the report run time.

8. Initial, appeal and reinspections are counted in measuring the production requirements.

9. For Incentive/Disincentive application, refer to the Task Order Performance

Matrix. Incentive is applied if all Task Order activation day thresholds are met. A disincentive will apply if any given day the production requirements are not met referred to as threshold days. A threshold day is each day of the Task Order activation.

Single/Multiple Task Order Threshold(s):

Day 3 1,500 per task order or 15% of inspections issued Day 4 2,000 per task order or 20% of inspections issued Day 5 3,000 per task order, or, 25% of inspections issued Day 6 4,000 per task order, or 30% of inspections issued Day 7 5,000 per task order, or 35% of inspections issued Day 8 6,000 per task order or 40% of inspections issued Day 9 8,000 per task order or 45% of inspections issued Day 10 10,000 per task order or 50% of inspections issued Day 11 11,000 per task order or 55% of inspections issued Day 12 12,000 per task order or 60% of inspections issued Day 13 13,000 per task order or 65% of inspections issued Day 14 14,000 per task order or 70% of inspections issued Day 15 15,000 per task order or 75% of inspections issued Day 16 16,000 per task order or 80% of inspections issued Day 17 17,000 per task order or 85% of inspections issued Day 18 18,000 per task order or 90% of inspections issued Day 19 19,000 per task order or 95% of inspections issued Day 20 and continuing, 20,000 inspections for a task order or multiple task orders activated during the same calendar day or 95% of inspections issued for an individual task order when 20,000 is not returned in one or multiple task orders.

SSPA # 2.J – Inspection Aging C.6.11.2

Objective: By using a first-in, first-out basis to complete work, all inspections should be completed within five (5) days from the date of issuance to the Contractor. Exceptions are made for “No Contact” inspections.

Exception statement: There are instances where the volume of work issued to the Contractor on a daily basis may create inspections to age beyond 5 days even if the contractor is meeting the daily production requirements. Disasters resulting in a production and aging conflict shall require a threshold exception to be determined during the event taking into consideration the disaster circumstance. The agreed upon exception is dependent upon the contractor producing records verifying inspections are completed according to the first-in, first-out requirement.

1. All inspections shall meet the five (5) day aging threshold. No Contact inspections are not counted within this SSPA and are measured separately. At the end of each Task Order, NEMIS reports will calculate and group inspections returned based on age from the time of issuance to the time of return to FEMA.

SSPA # 2.K – Uniformity of Response: Percent of Aged Work Measurement

Objective: To assure FEMA that the first-in, first-out concept is applied to all geographical areas within the declared area of the disaster. All work should be returned within five (5) days.

Remote counties, jurisdictions, Parishes should be responded to in the same manner as high-density areas.

1. All work is completed within the five (5) days from the date of issuance to the Contractor.

Disincentive:

In the event work is not completed within five (5) days, the following calculation will be used for this measurement within the QASP Uniformity of Response:

1. Sum the count of inspections over five (5) days aged within a geographical county;

2. Sum the total of completed inspections within the county;

3. Divide the sum over five (5) days into the total aged within the county.

This is completed for each county that had worked returned to FEMA that exceeded the five (5) day threshold. The county with the highest percentage is applied to the matrix under uniformity of response.

SSPA # 3 Customer Service C.6.5

SSPA # 3.A – Customer Service

Objective: The Contractor shall comply with customer service requirements specified in the PWS. An independent FEMA Contractor will perform a random sampling based on applications assigned under the Task Order. Survivors will be asked to complete and return the provided Customer Service Survey form to the independent Contractor. The independent Contractor will then record and report survey results to FEMA. Responses to five pre-determined questions (only) on the survey form will be used to measure this performance area, as shown in the QASP Matrix. The possible scores per question are specified and will be based on the independent survey results. The average score earned (mean score) will determine the incentive/disincentive to be applied. Any questions for which a response was not received will not be included in the computation of the mean score.

1. Based on the QASP Matrix the threshold is a numerical score of 4.5.

SSPA # 4 Miscellaneous

SSPA # 4.A – Initial Operational Report C.6.12.1

Objective: To transmit in written form the Contractor’s plan to accomplish all requirements contained within the PWS as it related to the particular Task Order(s) assigned.

1. Received by FEMA within 48 hours of activation, the Report must disclose all elements contained within PWS section C.6.13.1.3 to the satisfaction of the COR or Task Monitor supporting the COR for final concurrence.

SSPA # 4.B – Operational Report (Biweekly) C.6.12.2

Objective: To receive a biweekly report during Task Order activations.

1. To receive all contents contained under PWS section C.6.13.2.1 to the satisfaction of the Task Monitor with concurrence by the COR for final concurrence throughout the task order activation period.

SSPA # 4.C – Final Operational Report C.6.12.3

Objective: The report will summarize all operational reports for the Task Order and should be a summary of all Task Order reports.

1. To consist of an all-inclusive roll up for all requirements stated within C.6.13.2 for the operational report to include lessons learned and of all contents contained within the Operational report.

2. To be received no later than 30 days after release from Task Order to designated FEMA personnel.

SSPA # 4.D – Surge Event Reports (Incremental Operations Reports) C.6.12.5

Objective: Due to the nature of disasters during large or catastrophic events, FEMA will request additional information beyond the requirements of the Initial Operational and Operational Reports.

1. Additional reporting information requested is received within a specified timeframe.

SSPA # 4.E – Cooperative Management

Objective: Cooperative management is best demonstrated through results. During Task Order activation, the effectiveness of the contractors Quality Management System and meeting Task Order Performance thresholds are key objectives.

Task Order performance contains specific SSPA measurements within the categories of Quality, Performance Customer Service and Miscellaneous categories. These Task Order Performance SSPA’s all contain thresholds or acceptable performance levels to receive full payment and in some instances incentives.

Threshold:

When the contractor has met the “full payment” level of performance or an incentive under the QASP, this is a clear demonstration of cooperative management and further a demonstration of the contractors Quality management system design, implementation and effectiveness. The contractor is expected to take incremental measurements of meeting the Task Order Performance during Task Order activation. When it is revealed the contractor is not meeting one or more of the SSPA thresholds throughout the Task Order Activation period, QMS Corrective action procedures and preventative action procedures should be taken to remedy the shortcoming prior to release from the Task Order. This is a true indication of cooperative management and effective implementation of QMS required procedures. Conversely, if it is revealed that incremental measurements of threshold requirements are not met and no action is taken under the QMS corrective action or preventative action procedures, this is considered a lack of cooperative management by not applying these QMS required procedures and considered a lack of cooperative management. In this instance, a disincentive is applied to the Task Order under the Task Order Performance QASP.

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