CEVPP_SOW_12122013.docx

U.S. Department of Homeland Security Federal Emergency Management Agency

December 12, 2013

Statement of Work For Alternative Procedure Cost Estimate Validation Panel Pilot Program (CEVPP)

I. PROJECT TITLE: FEMA Public Assistance Cost Estimate Validation Panel Pilot Program.

II. PURPOSE: FEMA seeks to engage the services of a Contractor, Engineering Consulting Firm to provide a panel of engineers to validate the cost estimates submitted by eligible PA applicants who have requested FEMA-funded, independent validation of project costs for permanent repair projects equal to or in excess of $5 million from damage incurred as a result of Presidentially-declared disasters.

III. INTRODUCTION/BACKGROUND:

a. FEMA manages a post-disaster relief program that provides federal funding for the repair, restoration and replacement of damaged government and private non-profit facilities and for certain other associated expenses pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended (the “Stafford Act"). 42 U.S.C. § 5121 et seq. This program is hereafter referred to as the "Public Assistance (PA) Program.”

b. Applicants for the PA Program may include states, local governments, Indian Tribes and certain private non-profit facilities ("Applicants”). On occasion, disputes arise between FEMA and applicants who have applied for federal funding under the PA Program regarding the eligibility and sum of the expenses that should be provided from federal funds to the applicant, pursuant to the Stafford Act and related FEMA regulations set forth in Title 44, Code of Federal Regulations, and agency policies.

c. The Cost Estimate Validation Panel Pilot Program (CEVPP) was created by the SANDY RECOVERY IMPROVEMENT ACT OF 2013 (SRIA), Public Law 113-2, as signed into law by President Obama on January 29, 2013. The purpose of the program is to expedite the eligible PA Program funding of projects developed as a result of damages incurred by eligible Applicants for Presidentially-declared disasters for which PA has been authorized and construction had not yet begun as of January 29, 2013. The applicant may request to utilize a FEMA-funded, independent validation of project cost estimates for permanent repair of projects with an estimated federal share equal to or in excess of $5 million. The U.S. Congress wants this program implemented as soon as is practicable. Currently, FEMA obligates Federal share of the work grants based on estimated cost. Upon completion of a large project, a sub-grantee submits documentation to account for all incurred costs. The grantee then submits documentation of project costs to FEMA for review. Once the review is complete, FEMA determines whether funds should be obligated or de-obligated for the project.

d. The Alternative Procedure will:

1) Permit permanent work grants to be based on capped estimates, with applicants accepting responsibility for any actual costs above the estimate.

2) Allow applicants to use excess funds for activities that reduce risk in future disasters and other activities to improve future PA operations.

3) Permit applicants to consolidate multiple permanent work projects.

4) Eliminate the penalty for alternate projects based on estimates.

5) Permit FEMA to accept the mutually agreed upon certified cost estimates prepared by applicants’ licensed engineers.

IV. SCOPE OF WORK:

a. The Contractor selected for this pilot program shall provide the services of a panel of engineers to validate any and all project cost estimates prepared by the applicant’s registered engineer. A panel shall consist of a minimum of three (3) engineers, one of which shall be a licensed/registered engineer to head the panel. FEMA estimates that the Contractor shall have a cadre of 15 engineers, 5 of which shall be licensed/registered engineers, available to support the pilot since a panel could run concurrently and/or consecutively based on the level of disaster activity. The cadre of engineers shall have a minimum of a Bachelor’s degree in Engineering and a working knowledge of industry codes and standards. The Licensed/Registered Engineers shall have at least 5 years of professional experience and be appropriately licensed in both the discipline and by the State and US Territories in which the work will be implemented. It is the contractor’s responsibility to coordinate its employees’ licenses with the state where the work will be performed. Anticipated disciplines and their sub-disciplines include, but are not limited to: civil, mechanical, electrical and chemical engineering. All licensed engineers shall also exhibit skill sets in: disaster damage cost estimation, working collaboratively with other engineers on a panel, and working with federal agencies. Refer to attachment A for a list of engineering disciplines and sub-disciplines.

b. The panel shall determine appropriateness of the unit cost. They shall determine unit cost to be from an approved source of industry standard. They shall validate the fully documented unit cost estimate for completeness and reasonableness. Should there be any discrepancy between scope of work, damage description, or any issue that may impact the outcome of the validation, the panel shall have the option of a field visit of the damaged facility to verify the actual condition. At the conclusion of their validation they shall prepare a report detailing their findings and recommendations.

c. The panel shall present their findings to the representatives of FEMA and grantee applicant for mutual acceptance or reconciliation.

d. The Contractor selected for this pilot program shall provide the services of a panel of engineers to validate the cost estimates submitted by eligible PA applicants who have requested FEMA-funded, independent validation of project cost estimates for permanent repair projects from damage incurred as a result of Presidentially-declared disasters for which PA has been authorized and construction had not yet begun as of January 29, 2013. The projects to be validated shall equal or exceed $5 million in estimated project costs. A list of project categories and types are contained within attachment B.

e. The size and scope of the contractor's task may vary based on the scale and magnitude of damage, type of incident, and projected number of cost estimates received. However, for the purpose of proposing, the contractor should anticipate a minimum of one (1) project and a maximum of sixty (60) projects per year.

e. The contractor shall anticipate that services shall be required for all types of hazards (man-made or natural), including, but not limited to: floods, tornadoes, hurricanes, typhoons, earthquakes, tsunamis, and Incidents of National Significance as defined or indicated by FEMA.

f. The contractor shall provide management and furnish the necessary personnel, material, equipment, services and facilities (except as otherwise specified) to ensure that the tasks are performed efficiently, accurately, on time and in compliance with the requirements of this Statement of Work. Specifically, the contractor shall designate a Program Manager to oversee the work and supervise staff as assigned. The Program Manager shall be PMP certified with a minimum of a bachelor’s degree in engineering, business or a related field and 5 years of experience. The contractor shall also provide administrative staff to support the program from inception through closure.

g. The Contractor shall maintain the personnel, organization, and administrative control necessary to ensure that the work delivered meets the Government’s specifications and requirements. Contract staff shall come onboard with the requisite education, training, skills, and experience. Staff development is the responsibility of the performing company. The Government reserves the right to request work histories on any Contractor employee for the purposes of verifying compliance with the requirements stipulated in this SOW. Additionally, the Government reserves the right to review and approve resumes of Contractor personnel proposed to be assigned.

V. APPLICABLE DOCUMENTS:

a. Pursuant to the Sandy Recovery and Improvement Act, Public Law 113-2, signed into law by President Obama on January 29, 2013, section 428(e)(1)(E) thereof establishes procedures under which a PA applicant may request a FEMA-funded, independent, expert cost estimate validation panel to validate their certified cost estimate prepared by the applicant’s professionally licensed engineer as relating to the PA program under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. §§ 5170b, 5172, 5173), FEMA’s implementing regulations, and FEMA’s interpretations of those laws in its published policies and guidance.

VI. PERIOD OF PERFORMANCE: As set by statute (SRIA § 1105), the program shall run from:

a. Base Period: Date of Award – 12 Months

b. Option Period : 12 Months

VII. PLACE OF PERFORMANCE:

a. The presentation shall be conducted wherever the Government deems appropriate. The place of performance shall be anywhere within the United States, to include offshore States, Commonwealths and Territories, as determined by individual Task Orders.

b. The work shall be conducted at the Contractor’s offices, or Joint Federal Office (JFO), or any other location determined by the Government.

VIII. WORK REQUIREMENT (TASKS):

a. Overview: The contractor shall provide FEMA with a panel of project appropriate engineers to validate all eligible PA projects arising from Presidentially-declared disasters for which construction had not begun as of January 29, 2013 and where the applicant chooses to request FEMA-funded independent cost estimate validators. The contractor shall perform those services in accordance with the terms of the contract between the contractor and FEMA. Tasks that the contractor shall perform include:

1) TASK 1: The contractor shall attend a Kick-Off Meeting with the Contracting Officer (CO) and the Contracting Officer Representative (COR) no later than ten (10) business days after the contract has been issued. The purpose of the Kick-Off Meeting is to discuss technical and contracting objectives of the contract.

2) TASK 2: The contractor shall evaluate all project certified cost estimates prepared by the applicants’ registered engineer.

3) TASK 3: The contractor shall validate all tasks and appropriateness of the unit cost.

4) TASK 4: The contractor shall identify the unit costs used by the applicant to be industry standard and from FEMA approved source.

5) TASK 5: The contractor shall evaluate the fully documented unit cost estimate for completeness and cost reasonableness.

6) TASK 6: Should there be any discrepancy between the scope of work, damage description or any issue that may impact the outcome of the validation, the panel shall have the option of field visits to the damaged facility to verify the actual condition.

7) TASK 7: The contractor shall prepare a detailed report of findings and recommendations. An electronic copy shall be provided to the Grantee Applicant and to FEMA for the Project Worksheet’s (PW) Administrative record.

8) TASK 8: The contractor shall make presentation of the findings to representatives of FEMA and the Grantee Applicant (if applicable).

9) The following system of estimating shall not be acceptable to FEMA:

a) Lump sum estimates will not be acceptable

b) Any estimate without unit costs will not be accepted or evaluated

10) Applicant Requirements:

a) Applicant shall submit a well-documented certified unit cost estimate with all supporting documents to FEMA to provide to the Contractor.

b) Applicant shall NOT submit lump sum estimate.

c) Applicant cost estimate preparer shall all be registered engineers.

d) Applicant cost estimate preparer has the option of using the following estimating tools:

1) Historic documentation and average cost for similar work in the area

2) Local cost data from the Department of Transportation (DOT), previously constructed similar facility in the locality

3) Published unit costs from national construction cost estimating database

4) Low bid or construction contract unit costs from prior projects

IX. DELIVERABLES AND DELIVERY SCHEDULE:

a. The contractor shall provide a panel of project appropriate engineers one day after the estimate is submitted to the Contractor. The Panel shall last for the life of that cost estimate, unless substitutions are approved by FEMA.

b. The panel shall convene via teleconference with FEMA within 7 days of receipt of the delivery order to discuss any issue arising from the cost estimate review.

c. A field trip to the damaged facility by one or two of the panel member may be authorized by FEMA technical expert for this task, and must be conducted within 4- days after the teleconference.

d. The panel shall submit a draft report to FEMA for review and comment within 14-days of the submission. The report shall contain the Applicant name, Disaster number, PW number, total amount of the application, the panel findings and the recommendations.

e. FEMA shall have 5-working days to review and send back comments to the Panel.

f. A final, written report and presentation to FEMA with the decision or recommendation within 5-working days after the receipt of comments. The report shall contain the Applicant name, Disaster number, PW number, total amount of the application, the panel findings and the final recommendation.

g. The program manager and minimum of two, senior licensed engineers and/or cost estimators of the selected engineers shall be submitted to FEMA Public Assistance for approval as key personnel. Key personnel are considered essential to the work being performed under this contract and may, with the consent of the contracting parties, be changed from time to time during the course of the contract by adding or deleting personnel as appropriate. In the event that key personnel must be removed or replaced, the contractor shall notify FEMA in writing to approve the change. The contractor shall submit sufficient information to support the proposed action to enable FEMA to evaluate the impact of the change.

h. The contractor shall provide necessary personnel resources to manage the program for the life of the contract.

i. The Contractor shall provide a Monthly Progress Report (MPR) to the FEMA COR and CO by the 15th day of the following month. This report shall provide a summary of the overall contract status for the calendar month covered by the report. This report shall include, at a minimum:

1) The status, accomplishments, and deliverables for all delivery orders awarded;

2) The current and cumulative hours worked by labor category, the total number of personnel working on assignments, all direct costs by line item, schedule status, and any travel conducted.

3) Any current and foreseeable problems and proposed corrective actions.

Additional reporting requirements may be specified in each delivery order.

j. The Contractor shall provide a Quality Control Plan (QCP) to the Government within the 10 days following the kick off meeting. The QCP will detail the quality control, inspection and feedback system proposed to facilitate internal and external monitoring and reporting. The Contractor’s quality control process shall be developed from valid industry methodologies used in establishing quality control and/or improvement methods. The QCP should report on method of inspection, sample size, individual work performance and work performance to the project-at-large, findings (both good and bad) and actions taken.

X. GOVERNMENT-FURNISHED EQUIPMENT AND INFORMATION: No federal government equipment shall be issued to the Contractor.

XI. INVOICING:

a. Payment of invoices submitted under this contract shall be made in accordance with the terms and conditions of the Prompt Payment clause. Failure or refusal to provide the following information on all invoices submitted under this contract may result in the invoice being considered improper for payment in accordance with the Prompt Payment clause. Only one invoice shall be submitted at the end of each thirty-day period of performance for deliverables inclusive in that thirty-day period of performance. The end of each thirty-day interval will signify the end of the time permitted to bill FEMA for contract deliverables that occurred within that thirty-day time frame and no other invoicing shall be submitted. An invoice must include, as applicable, the following:

1) Name of Contractor

2) Invoice date

3) Contract number (including order number, if any), contract line item number, contract description of supplies or services, quantity, contract unit of measure and unit price, and extended total.

4) Name, title, phone number and complete mailing address of responsible Official who can be contacted in the event of an improper invoice, if there are questions, or additional information is needed by this agency to process payment.

5) Any other information or documentation required by other provisions of the Contract.

b. The Contractor is responsible for properly preparing and forwarding to the appropriate Government official the invoice and receiving report for payment. The Contractor shall attach back up information to the receiving report for direct labor and Other Direct Costs (ODCs). Direct labor backup information shall reflect the person’s name, job title and quantity of hours worked for each pay period at a minimum. Backup information for ODCs shall list all elements of costs, such as travel breakout backup, including itinerary, dates of travel, name of employees traveling plus per diem costs shall accompany the receiving report.

c. The COR may reject or require correction of any deficiencies found in the invoice or receiving report. In the event of a rejected invoice or receiving report, the Contractor must be notified in writing by the COR of the specific reasons for rejection.

XII. QUALITY ASSURANCE SURVEILLANCE PLAN (QASP):

a. The Government intends to utilize a Quality Assurance Surveillance Plan (QASP) to monitor the quality of the Contractor’s performance. The QASP will provide the Government with surveillance oversight of the contractor’s efforts to assure that they are timely, effective and are delivering the results specified in the order. The QASP will be finalized immediately following award and a copy provided to the Contractor after award. The QASP is a living document and may be updated by the Government as necessary.

XIII. SECURITY:

a. This program and all work thereunder, except for the final written decision, will be open to the public. The program shall be unclassified.

b. HSPD-12(MBI) security badges are required.

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