Assisted_Living_Risk_Mgmt_Data_Analysis_and_Reporting_PWS030819.doc

Performance Work Statement (PWS)

Residential Health Care Facilities Risk Management Data Analysis and Reporting

01/24/2018

Version 1.0 4Vision Statement

1 General Information

1.1 Introduction

1.2 Background

1.3 Constraints

1.4 Description of Services

1.5 Non-Personal Services

1.6 Period of Performance

1.7 Place of Performance

1.8 Hours of Operation

1.9 Special Qualifications

1.10 Post Award/Kickoff Conference

1.11 Status Meetings

1.12 Contractor Travel

1.13 Transition In

1.14 Transition Out

2 Definitions and Acronyms

2.1 Definitions

2.2 Acronyms

3 Government-Furnished Property and Services

3.1 Government Services

3.2 Facilities

3.3 Equipment

3.4 Materials

3.5 Quality Assurance (QA)

4 Contractor-Furnished Items and Services

4.1 Facilities

4.2 Equipment

4.3 Material

4.4 Contractor Responsibilities

4.5 Contractor Personnel

4.6 Identification of Contractor Employees

4.7 Quality Control

4.7.1 Quality Control Plan

5 Specific Tasks

5.1 Risk Management Support

5.2 Access to a Warning System of At- Risk Facilities

5.3 Training

6 Deliverables

6.1 Quality Control Plan

6.2 Acceptance Criteria

7 Performance Requirements Summary 8 Related Documents

Performance Work Statement (PWS) Residential Health Care Facilities Risk Management Data Analysis and Reporting Vision Statement The U.S. Department of Housing and Urban Development (HUD) Office of Residential Care Facilities (ORCF) seeks to obtain risk management support services for all current and proposed HUD-insured healthcare facilities from a contractor that can provide reliable risk management analysis data in customizable reports through a subscription service to healthcare facility related data information. This tool will be available on a subscription basis for up to 150 users.

1 General Information

1.1 Introduction

The Office of Residential Care Facilities (ORCF) administers the Section 232 loan program. Section 232 is a Federal Housing Authority (FHA) loan product that provides mortgage insurance for residential care facilities such as skilled nursing facilities, assisted living facilities, and board and care facilities. Section 232 may be used to finance the purchase, refinance, new construction, or substantial rehabilitation of these residential care facilities.

ORCF has staff located in HUD’s Headquarters office in Washington, D.C., and in numerous field offices around the country. The ORCF staff members located in field offices are out-stationed Headquarters employees. ORCF is comprised of four divisions that support the underwriting and asset management of FHA-insured residential care facility loans:

· Production

· Asset Management

· Policy, Risk Management and Lender Relations

· Operations

Currently, the Section 232 portfolio insures approximately 3,600 facilities. The number of insured facilities grows by approximately 300 facilities, annually. ORCF requires a contractor who shall provide a subscription service to healthcare facility related data to assist ORCF in rating and assessing risk of default and/or credit risk and monitoring the performance of HUD-insured assets currently under management and those healthcare facilities seeking HUD-insured financing.

1.2 Background

ORCF uses multiple tools and resources for data management and risk assessment of the residential care facilities in the portfolio, such as the integrated real estate management system (iREMS), the Development Application Processing tool (DAP), the 232 Healthcare Portal, and a team of internal risk evaluators. The team of internal risk evaluators surveys the media for news and updates and frequents the CMS site to assess projects in our residential healthcare portfolio in an effort to identify current or potential credit loss risk. ORCF lacks a tool that can centralize information from HUD’s internal systems and from government, state, local, and private industry external systems throughout the healthcare field.

1.3 Constraints

The services identified in this PWS will adhere to the rules, regulations, laws, standards, and conventions identified by HUD as well as within the Federal Government. Constraints include the following:

The Contractor shall abide by all applicable regulations, publications, manuals, and policies, and procedures in the performance of this contract and any subsequent revisions, updates, and/or changes. These include but are not limited to the following:

· Rules, proposed rules, and notices in the Federal Register: Government Publishing Office

· Healthcare Mortgage Insurance Program Handbook 4232: Section 232 Handbook 42321

· E-mail Blast Link: Email Blasts

· HUD Acquisition Regulation (HUDAR): HUDAR

· Handbook 1325.01, Privacy Act Handbook

· Housing Handbook 4060.1, Mortgagee Approval Handbook

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

· OMB Circular A-123, Managements Responsibility for Internal Control

· OMB Circular A-125, Prompt Pay

· OMB Circular A-127, Financial Management Systems

· OMB Circular A-129, Policies for Federal Credit Programs and Non-Tax Receivables

· OMB Circular A-130, Management of Federal Information Resources

· OMB Circular A-136 (Revised), Financial Reporting Requirements

· OMB Memorandum M-05-24, Implementation of Homeland Security Presidential Directive (HSPD) 12

· OMB Memorandum M-03-22, OMB Guidance for Implementing the Privacy Provisions of the E-Government Act of 2002

· OMB Memorandum M-99-20, Security of Federal Automated Information Resources

· OMB Memorandum M-06-15, Safeguarding Personally Identifiable Information

· OMB Memorandum M-06-16, Protection of Sensitive Agency Information

· OMB Memorandum M-06-19, Reporting Incidents Involving PII

· OMB Memorandum M-06-20, Reporting Instructions for the Federal Information Security Act and Agency Privacy Management

· Federal Information Processing Standards (FIPS) Publications: NIST Computer Resource Center, NIST Special Publications (800 Series)

· Federal Information Security Management Act

· Federal Information Systems Controls Audit Manual (Government Accountability Office)

· Statements of Federal Financial Accounting Concepts and Standards, Federal Accounting Standards Advisory Board (FASAB)

· Authoritative Documents from Accounting and Auditing Policy Committee Processes

· Generally Accepted Government Auditing Standards (GAGAS)

· Federal Financial Management Improvement Act (FFMIA) http://www.whitehouse.gov/omb/financial/fm_systems.html

· Federal Managers Financial Integrity Act (FMFIA)

· Government Management Reform Act

· Government Performance and Results Act (GPRA)

· GPRA Modernization Act

· Chief Financial Officers Act

· Improper Payments Information Act

· Privacy Act

· Prompt Payment Act

· Debt Collection Act

· Debt Collection Improvement Act

· E-Government Act

· Homeland Security Presidential Directive (HSPD) 12, Policy for a Common Identification for Federal Employees and Contractors United States Standard General Ledger http://www.fms.treas.gov

· Reports Consolidation Act

· Federal Credit Reform Act

· Information Technology Management Reform Act

· Government Paperwork Elimination Act

· Government Corporation Control Act

· Section 508 of the Rehabilitation Act

· Treasury Financial Manual (TFM): Treasury Financial Manual

· Policies, procedures, and regulations promulgated by the Bureau of the Fiscal Service

The above publications, manuals, policies, and websites are believed to be the most current, but the Contractor shall be required to conduct its own due diligence.

1.4 Description of Services

ORCF requires additional risk management services and business risk tools to enhance the underwriting and asset management decision-making process for our Underwriters (UWs) and Account Executives (AEs). These services will be useful for identifying facilities with an acceptable risk and to monitor the risk exposure of the entire portfolio using a single platform instead of multiple platforms that are currently in use.

The contractor shall provide unlimited access to an existing, reliable risk management analysis subscription service owned by the contractor that is web-based and provides data pertaining to skilled nursing facilities (SNFs) that are certified by the Center of Medicare and Medicaid Services (CMS). The subscription service shall also provide data pertaining to other state-regulated residential care facilities, as available, such as assisted living facilities (ALFs), board and care facilities (B&C), and intermediate care facilities (IF).

This subscription service shall be customizable, and the contractor shall develop an algorithm that incorporates three years of historical data from HUD’s existing data management and risk assessment tools to develop a reliable risk level designation for insured facilities under management by ORCF and/or facilities seeking HUD-insured financing. The contractor’s risk level designation will serve as an early warning system of at-risk facilities for ORCF.

Additionally, the contractor must provide computer-based, recorded training for unlimited use by HUD staff in an easily accessible format compatible with HUD’s systems.

1.5 Non-Personal Services

The Government will neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services.

If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor's responsibility to notify the Contracting Officer (CO) immediately. These services shall not be used to perform work of a policy, decision making, or management nature, i.e. inherently Government functions. All decisions relative to programs supported by the Contactor shall be the sole responsibility of the Government.

1.6 Period of Performance

The period of performance shall be for one base period of 12 months and four 12-month option periods.

1.7 Place of Performance

The services to be performed under this contract shall be performed at a Contractor facility.

1.8 Hours of Operation

NA

1.9 Special Qualifications

NA

1.10 Post Award/Kickoff Conference

The Contractor shall attend any post award conference convened by the contracting activity or contract administration office in accordance with FAR Subpart 42.5. The Government intends to convene a Post Award Conference with the Contractor within ten business days after contract award. The Contracting Officer will notify the Contractor of the specific date, location, and agenda within five business days after contract award.

1.11 Status Meetings

The Contracting Officer, Government Technical Representative (COR) and other Government personnel, as appropriate may meet periodically with the Contractor to also review Contractor performance, requirement status, etc. At these meetings, the Contracting Officer will apprise the Contractor of how the Government views the Contractor's performance or progress of the requirement. The Contractor will apprise the Government of problems, if any, being experienced. Appropriate action shall be taken to resolve outstanding issues. These meetings shall be at no additional cost to the Government. Post Award Conference and subsequent meetings may be held via teleconference.

1.12 Contractor Travel

Prior to travel, the Contractor shall coordinate with and receive Government authorization from the COR for all travel. Reimbursement of travel costs will be in accordance with the Federal Travel Regulation and in accordance with FAR 31.205-46. The Contractor shall travel using the lower cost mode transportation commensurate with the mission requirements. When necessary to use air travel, the Contractor shall use the tourist class, economy class or similar lodging accommodations to the extent they are available and commensurate with the mission requirements. HUD will not reimburse Contractor's local travel. Local travel is defined as travel within fifty (50) miles of Washington, DC. All other travel will be reimbursed on a cost reimbursable basis; no profit or fee will be paid.

1.13 Transition In

The Contractor shall, upon the Contracting Officer's written notice, furnish Transition-In services as required. As a successor, the Contractor shall have sufficient personnel on board during the 120- day Transition-In period to ensure a smooth transition with the incumbent Contractor. The Contractor shall provide an orderly transition of work acceptance and accomplishment such that any impact to the program is minimized. During the Transition-In period, the Contractor shall become familiar with the requirements in order to commence full performance of services by the end of the contract Transition-In period. Transition-In is not required if the successor Contractor is the incumbent Contractor.

1.14 Transition Out

To minimize any decrease in productivity and to prevent possible negative impacts on additional services, the Contractor shall have sufficient personnel on board during the 120-days Transition-Out period. The incumbent Contractor shall ensure a smooth transition with the successor Contractor during the Transition-Out period, prior to completion of contractual performance. The incumbent Contractor shall aid the successor in the development of plans, procedures, and methods for the assumption of all on going work. The Contractor shall provide an orderly transition of work acceptance and accomplishment, such that full control by the successor Contractor is achieved by the end of the new contract Transition-In period.

2 Definitions and Acronyms

Acceptable Quality Level (AQL) Contractors performance level required by the Government. This is also known as the Performance Standard.

Account Executive (AE) ORCF staff who underwrites or services the Section 232 Loans (proposed and/closed) with FHA approved Section 232 Lenders

Adhoc Reporting A business solution that allows a user the ability to create customized reports using data within the application and/or to modify existing standard reports such that the resulting report meets the individual users information requirements quickly and easily; provides for flexibility in the type of data retrieved (data queries) and in how the data is presented (layout); and permits the user to incorporate new reporting requirements and business intelligence analysis without expending application developer resources. This solution is driven by the user and typically allows the user to conduct more effective business intelligence analysis because the user is able to select relevant data and sort, filter, format (drag-and-drop), and drill into the data quickly and with the ability to change parameters to fit new business rules.

Business/Work Days Every official work day of the week that are days between and including Monday to Saturday per Federal Reserve Bank. This does not include public holidays and Sundays.

Calendar Day Any day of the week.

Closing Date The loan closing date is the date on which the borrower or borrowers sign the security instrument, loan agreement, and note.

Code of Federal Regulations Is the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government.

Contractor A supplier or vendor awarded a contract to provide specific supplies or service to the Government. The term used in this contract refers to the prime.

Contracting Officer (CO) A person with authority to enter into, administer, and/or terminate contracts and make related determinations and findings on behalf of the Government. Note: the only individual who can legally bind the Government.

Contracting Officers Representative (COR)) - An employee of the U.S. Government appointed by the Contracting Officer to perform contract administration activities regarding technical issues. This individual has authority to provide technical direction to the Contractor as long as direction is within the scope of the contract, does not constitute a change and has no funding implications. This individual does NOT have authority to change the terms and conditions of the contract.

Development Application Processing A system that contains initial Section 232 Loan processing data

Deliverable Anything that can be physically delivered, but may include non-manufactured things such as meeting minutes or reports

Government Furnished Property (GFP) Property in the possession of, directly acquired by, the Government and subsequently furnished to the Contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes Contractor-acquired property if the Contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract.

Inherently Governmental Functions Activities that require either the exercise of discretion in applying Government authority, or the making of value judgments in making decisions for the Government.

Lender Approved by FHA to Originate on/or service FHA insured loans.

Loan Administration Any servicing activities performed by the Section 232 mortgage holder, the Section 232 mortgage servicer, and/or HUD personnel that involve but are not limited to routine servicer Section 232-Insured loan requests including but not limited to Partial Releases, Non-Critical Repair Extension Requests Request for HUD Advance; and any servicing activities associated with the Section 232- maintaining mortgagee of record and all servicer transfers for the Section 232 case through termination of insurance; receiving proceeds from HUD; and reconciling and closing out of Section 232 loans.

Loan Production Functions normally performed by Section 232 mortgage originator that are performed as part of daily routines during the insured process. Loan Production is also referred to as Origination and covers case number assignment through loan set-up for remittance of mortgage insurance premium (MIP). The final stage of loan production is loan closing.

Mortgage Insurance Premium (MIP) The MIP remitted by the mortgagee for the life of the mortgage.

Mortgagee The financial entity that has as its principal activity the lending or investment of funds in real estate mortgages. Mortgagees are classified by FHA based on the functions they perform. Mortgagees can be FHA-approved to originate (originators), to service (servicers), and to hold beneficial interest (holders)Mortgagees are also referred to as mortgage Lenders or Lenders.

Mortgagor The original borrower under a mortgage and his successors and assigns.

Office of Healthcare Programs (OHP) administers FHA's healthcare programs, the Section 232 Mortgage Insurance for Residential Care Facilities Program and the Section 242 Mortgage Insurance for Hospitals Program.

Office of Residential Care Facilities (ORCF) administers the Section 232 program, which provides mortgage insurance for residential care facilities such as assisted living facilities, nursing homes, intermediate care facilities, and board and care homes.

Originator This term refers to a specific mortgage Lender approved by FHA to originate mortgages. Originators perform all parts of the loan origination process loan application, underwriting, closing, funding, and submitting mortgage for FHA insurance.

Performance Requirements Summary (PRS) A listing of the performance requirements under the contract that are to be evaluated by the Government on a regular basis, performance indicators for these requirements, performance standards for these requirement and surveillance methods to be used to determine if performance standards are met (and optionally, any maximum payment for meeting the acceptable quality level (AQL) and any deduction from payment for not meeting the AQL).

Performance Standard Contractors performance level required by the Government. This is also known as the acceptable quality level (AQL).

Performance Work Statement (PWS) A statement of work for performance-based acquisitions that describe the required results in clear, specific and objective terms with measurable outcomes.

Personal Identifiable Information (PII) Information that identifies a person or can be used in conjunction with other information to identify a person, regardless of whether a person would want it disclosed. If the information or collection of information connects to an individual, it is classified as personally identifiable information.

Physical Security Actions that prevent the loss or damage of Government property.

Private Information: Information that an individual would prefer not to be known to the public because it is of an intimate nature.

Program Manager (PM) An individual designated by the Contracting Officer to assist in providing technical direction and monitoring performance under the contract.

Quality Assurance (QA) Policies and procedures adopted by the Government to ensure that supplies and services acquired under Government contracts conform to the contracts quality requirements.

Quality Assurance Surveillance Plan (QASP) A plan describing how the agency will survey, observe, test, sample, evaluate and document the Contractors performance in meeting critical performance standards identified in the contract.

Quality Control (QC) All necessary measures taken by the Contractor to assure that the quality of an end-product of service shall meet contract requirements.

Section of the Act (SOA) Refers to the authorizing legislation in the respective Section of the National Housing Act.

Service contract A contract that directly engages the time and effort of a Contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply.

Servicer A specific type of FHA-approved mortgagee that services.

Subcontractor Any person, other than the prime Contractor, who offers to furnish or furnishes any supplies, material, equipment, or services of any kind under a prime contract or a subcontract entered into such prime contract, and any person who offers to furnish or furnishes general supplies to the prime Contractor or a higher tier Subcontractor. The Government does not have privity of contract with a Subcontractor.

Web-Based Application Any application software that runs in a web browser or accessed over a network connection versus an application within a user’s personal computer device. Web-based applications can be updated and maintained without the need to distribute and install software on individual computer devices and allow for cross-platform compatibility.

Work Week Monday through Friday, unless specified otherwise.

2.2: Acronyms

AE - Account Executive

AH - Authentication Header

AQL - Acceptable Quality Level

BI - Business Intelligence

CBT - Computer-Based Training

CISO - Chief Information Security Officer

CMMI - Capability Maturity Model Integration

CMP - Configuration Management Plan

CO - Contracting Officer

COB - Close of Business

COP - Change of Plan

COR - Contracting Officer Representative

CPA - Certified Public Accountant

CR - Change Request

CS - Contract Specialist

DAP - Development Application Processing

DBA - Database Administrator

DBA - Doing Business As

DOT - Deed of Trust

DRP - Disaster Recovery Plan

ESP - Encapsulating Security Protocol

EST - Eastern Standard Time (U.S.)

ETC - Estimate to Completion

FAR - Federal Acquisition Regulation

FASAB - Federal Accounting Standards Advisory Board

FCRA - Federal Credit Reform Act

FFMIA - Federal Financial Management Improvement Act

FHA - Federal Housing Administration

FHASL - FHA Subsidiary Ledger System (FHA 01 and FHA 02)

FIPS - Federal Information Processing Standards

FISCAM- Federal Information Security Controls Audit Manual

FISMA - Federal Information Security Management Act

FMFIA - Federal Managers Financial Integrity Act

FY - Fiscal Year

GAGAS - Generally Accepted Government Auditing Standards

GAO - U.S. Government Accountability Office

GL - General Ledger

GPRA - Government Performance and Results Act

HEREMS - Housing Enterprise Real Estate Management System

HUD - U.S. Department of Housing and Urban Development

IAW - In Accordance With

IG or OIG - Inspector General (Office of)

LOC - Line of Credit

MIP - Mortgage Insurance Premium

ML - Mortgagee Letter

MO - Month

NIST - National Institute of Standards and Technology

NSF - Non-Sufficient Funds (also referred to as Insufficient Funds)

OCI - Organizational Conflict of Interest

OIG - Office of Inspector General

OMB - Office of Management and Budget

OHP - Office of Healthcare Programs

ORCF - Office of Residential Care Facility

PAR - Performance and Accountability Report

PBC - Prepared by Client

PDF - Portable Document Format

PI - Private Information

PII - Personally Identifiable Information

PM - Project Manager

POA&M - Plan of Action & Milestones

PRS - Performance Requirements Summary

PWS - Performance Work Statement

QA - Quality Assurance

QASP - Quality Assurance Surveillance Plan

QCP - Quality Control Plan

REAC - Real Estate Assessment Center iREMS - Real Estate Management System

SaaS - Software as a Service

SOA - Section of the National Housing Act; Section of the Act

SORN - System of Records Notification

SSA - System Security Administrator; Social Security Administration

TFM - Treasury Financial Manual

U.S.C. - United States Code

UAT - User Acceptance Testing

UDP - User Datagram Protocol

UPB - Unpaid Principal Balance

USC - United States Code

3 Government-Furnished Property and Services

The Contractor shall ensure accurate control and accountability of all Government-Furnished Property in accordance with the terms and conditions of this contract. The Government will furnish, at no cost to the Contractor, the GFP shown below.

3.1 Government Services

No government services will be provided.

3.2 Facilities

No government materials will be provided.

3.3 Equipment

No government equipment will be provided.

3.4 Materials

No government materials will be provided.

3.5 Quality Assurance (QA)

The Government shall evaluate the Contractor's performance under this contract in accordance with the Quality Assurance Surveillance Plan. This plan is primarily focused on what the Government must do to ensure that the Contractor has performed in accordance with the performance standards. It defines how the performance standards will be applied, the frequency of surveillance, and the minimum acceptable quality level.

4 Contractor-Furnished Items and Services

The Contractor shall furnish, all facilities, equipment, and supplies required to perform the work under this contract that are not listed under Government-Furnished Property and Services.

4.1 Facilities

The Contractor shall furnish all facilities.

4.2 Equipment

The Contractor shall furnish all equipment.

4.3 Material

The Contractor shall furnish all material.

4.4 Contractor Responsibilities

The Contractor shall only conduct business with designated Government personnel listed as points of contact (POCs). Names of authorized personnel shall be provided to the Contractor by the Government, in writing, and updated as necessary throughout the contract period.

U.S. Government records, copies of original results and reports, verified original data, corrected data and corrected supporting final reports which are maintained by the Contractor remain the property of the U.S. Government. These files/results must be surrendered to the COR.

4.5 Contractor Personnel

The Contractor shall provide a Contract/Project Manager who shall be responsible for the performance of work. An alternate shall also be designated to act in the absence of the Contract/Project Manager. These Contractor personnel (main point of contact and alternate point of contact) are considered Key Personnel by the Government and shall be listed as such in accordance with HUDAR 2452.237-70, "Key Personnel. The Contract/Project Manager and alternate shall have full authority to act on all contact matters relating to daily operations of this contract. Accordingly, at a minimum, the points of contact shall have the technical knowledge of the requirement and be in the position to actually receive assignment, guidance, and direction from the COR, SCOR and CO per HUDAR 2452.237-73, "Conduct of Work and Technical Guidance" and shall be allocated enough hours to the requirement to ensure successful performance. These points of points of contact shall each be an employee of the Contractor. An employee of a subcontractor is not acceptable for either of these positions. The Contract/Project Manager or alternate shall be available between the hours of 8:00am to 4:30pm Monday through Friday EST, except Federal Holidays or when the Government facility is closed for administrative reasons.

4.6 Identification of Contractor Employees

All Contractor/subcontractor personnel shall wear company picture identification badges as to distinguish themselves from Government employees. When conversing with Government personnel during business meetings, over the telephone, or via electronic mail, Contractor/subcontractor personnel shall identify themselves as such to avoid situations arising where sensitive topics might be better discussed solely between Government employees. Contractors/subcontractors shall identify themselves on any attendance sheet or any coordination documents they may review. Electronic mail signature blocks shall identify their company affiliation. Where practicable, Contractor/subcontractors occupying collocated space with their Government program customer shall identify their work space area with their name and company affiliation, or at a minimum, "Contractor" after name.

4.7 Quality Control

The Contractor shall establish and maintain a complete quality control program that shall ensure services are performed in accordance with this contract. The Contractor shall develop and implement procedures to identify, prevent, and ensure non-reoccurrence of defective services. The Contractor's quality control program is the means by which he assures himself that his work complies with the requirements of the contract. The Contractor shall provide the associated Quality Control Plan to the Government as directed.

4.7.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP). The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

5 Specific Tasks

5.1 Risk Management Support

The contractor shall provide unlimited access to an existing, reliable risk management analysis subscription service owned by the contractor that is web-based and provides data pertaining to skilled nursing facilities (SNFs) that are certified by the Center of Medicare and Medicaid Services (CMS). This online subscription service shall also provide data pertaining to other state-regulated residential care facilities, as available, such as assisted living facilities (ALFs), board and care facilities (B&C), and intermediate care facilities (IF). The subscription service will:

1. Contain data that has been collected and centralized by the Contractor for up to 6,500 skilled nursing facilities insured and under management by ORCF and/or facilities seeking HUD-insured financing.

2. Be available in real time, 24 hours a day except for occasional maintenance periods.

3. Contain data for those states that regulate, survey, and collect statistical data for assisted living facilities, and incorporate this data for HUD-insured properties in the portfolio into customizable reports.

4. Provide ORCF employees with unlimited access to data for all currently HUD-insured healthcare facilities in the portfolio and future or potential additions to the portfolio that are in various stages of underwriting review and/or in the process of closing.

5. Provide data on skilled nursing facilities aggregated from the most recent three survey cycles as reported by the Centers for Medicare and Medicaid Services (CMS) and include, but not be limited to:

6.

1. State surveys deficiency citations, including detailed information on citations of G tag or higher

2. Special Focus Facility (SFF) designation or candidacy for designation and SFF history

3. Enforcement actions and penalties (i.e., civil money penalties, payment denials, dollar amount of fines assessed, historical data)

4. Facility’s 5-star rating (current and historical)

5. Staffing and quality measures data

6. Occupancy/number of certified beds

7. Census mix

8. Current financial data

9. Rehospitalization rates

10. Comparisons to county and state averages

7. Integrate data from HUDs internal risk assessment data sources such as iREMS, DAP, the 232 Healthcare Portal, and other risk evaluators (e.g., financial statements, etc.) used to identify current or potential credit loss risk.

8. Provide analysis of potential credit loss risk that includes a risk rating and ranking of skilled nursing facilities.

9. Develop probability of default analysis for at-risk facilities

10. Benchmark performance to comparable facilities and regions.

Additionally, the Contractor shall provide access to data-driven reports that can be pulled electronically directly in a user-friendly format (i.e., Microsoft Excel) for analysis by ORCF. The reports shall:

· Be easily sortable.

· Allow ORCF to pull various reports for the entire portfolio as well as individual facility reports (including reports on projects that are in underwriting review for proposed new financing.

· Drill down to individual areas and provide precisely the reports for those areas.

Data in these reports shall be sortable by all fields in the report and shall be searchable by the following:

· FHA number

· HUD Property ID number

· ORCF Account Executive

· Operator and/or Borrowers name

· Name of Lender

· Facility name

· Location (i.e., city, state, and/or county)

· CMS Provider Number

The contractor must provide unlimited customer support and/or help desk access to HUD staff during the core office hours of 8:00 am through 5:00 pm Pacific, Central, and Eastern time on Monday through Friday.

Additionally, the contractor must provide computer-based recorded training for unlimited use by staff in an easily accessible format compatible with HUDs systems.

Performance Standards

a) Standard: The Contractor shall ensure business services maintain an operational readiness and performance with 100% availability and will resolve all issues within 3 business days.

AQL: No deviation

Deliverables A001 Access to a healthcare data subscription service

5.2 Access to a Warning System of At- Risk Facilities

The contractor shall develop an algorithm that provides a web-based alert if quality-of-care or financial risk are identified. The subscription service shall generate risk reports and daily risk alerts (in real time) to notify ORCF when facilities in the portfolio are at risk.

These risk factors include, but are not limited to:

· Decline in a facility’s current risk rating or receipt of proposed or actual notices of impositions

· Proposed and/or actual terminations

· Immediate Jeopardy and/or Harm citations

· Special Focus Facility (SFF) designations and/or candidate for SFF designation

· Repeat citations

· Discretionary Denial of Payment (DPNA)

· Civil money penalties

· Decline in census

· Ban on admissions

· Decrease in any star rating category by 2 or more stars or a 1-star rating in overall performance and/ or health inspection

The Contractor shall use the analyzed data to risk rate new and existing facilities that are being proposed for FHA financing on a scale of low, medium or high risk. The Contractor shall identify key areas of opportunities that trigger high likelihood of a loan default.

Performance Standards

a) Standard: The Contractor shall ensure business services maintain an operational readiness and performance with 100% availability and will resolve all issues within 3 business days.

AQL: No deviation

A002 Access to a warning tool of at- risk facilities

5.3 Training

The Contractor shall develop and provide appropriate computer-based training that explains how staff can use the subscription service to access the healthcare facility data. The training shall be one recorded training and have unlimited accessibility by HUD staff at any time.

The Contractor shall ensure that the training is geared towards the user audience and shall ensure that the length of the training session is commensurate with the level of information needed to understand the Contractors business solution.

The Contractor shall provide all training materials, reference materials, etc., needed for the training session and participant.

The Contractor shall provide the COR with a detailed, training plan and one set of written training materials within 151 business days of contract award.

The Contractor shall provide the COR with a soft copy of the training plan and training materials via email.

The Government will review and provide comment to the Contractor within 30 days.

The Contractor shall make any requested changes within 5 business days of the receipt of the Governments comments.

The Contractor must receive approval from the COR prior to conducting any training.

Performance Standards

a) Standard: Training must explain how staff can use the subscription service and pull reports.

AQL: No deviation

A003 Recorded computer-based training with materials

6 Deliverables

The Contractor shall complete all work and submit all deliverables as specified herein. The Government reserves the right to make changes to delivery dates.

6.1 Quality Control Plan

The Contractor shall develop, maintain, enforce, and document a Quality Control Plan (QCP). The QCP shall ensure the Government receives the level of quality that is consistent with the requirements specified in this contract. The QCP shall be sufficiently detailed to provide the Contractor's methodology for identifying and recruiting qualified personnel. The QCP shall also provide the Contractor's methodology for resolving problems identified by the Government during reviews conducted in accordance with its Quality Assurance Surveillance Plan (QASP). The QCP shall also provide the Contractor's methodology for establishing an internal feedback system for support personnel, and for resolving problems identified by that feedback system. The QCP shall demonstrate and validate that the services or deliverables to be provided under the contract are completed with a level of quality that meets the minimum performance threshold established in the Government's QASP. The QCP shall address Quality Management Approach, Quality Assurance, Quality Control and Quality Standards.

6.2 Acceptance Criteria

All deliverables shall be submitted in a draft format agreed upon by the Contractor and the Government. Upon review and acceptance by the Government, the Contractor shall address all Government comments and submit a final draft within 5 business days of Government notification.

7 Performance Requirements Summary

The summary chart below lists the contract's primary requirements, the associated performance standards, the expected target performance, and the methods of surveillance. While some contract requirements may not be listed in the chart below, requirements not appearing on the PRS chart do not negate the Contractor's obligation to perform all requirements as specified in the contract. Additionally, HUD reserves all rights and remedies under the provisions and clauses of the contract when performance of any contract requirement, whether or not listed below, is unacceptable.

HUD will develop a Quality Assurance Surveillance Plan to be used to provide contract oversight. In conjunction with the Contractor's Quality Control Plan and various other methods of assessing performance, the COR and SCOR may perform on-site reviews and/or other types of verification to determine that the specified target performance requirements have been met.

Regular review of Contractor performance is critical to the overall success of the contract. On a monthly basis, the COR will evaluate the quality of the product or services.

8 Related Documents

The Contractor shall abide by all applicable regulations, publications, manuals, policies, and procedures in the performance of this contract.