Performance Work Statement.docx

SECTION C - Description/Specifications

Performance Work Statement Multifamily Property Management and Tenant Relocation, C.1. INTRODUCTION:

This is a performance-based work statement, described in detail in Section C, addressing the provision of property management and relocation services for HUD’s Property Disposition Division. The property management services will be limited to HUD-owned and Mortgagee-in-Possession (MIP) properties. The relocation services provided pursuant to this work statement will primarily be for tenants at insured and uninsured HUD-owned and MIP properties, and properties where the Housing Assistance Payments Contract has been abated. The PD Division provides property management and relocation services for the entire country.

C.2. BACKGROUND:

C.2.1. HUD is committed to taking the necessary actions to ensure that both the quality of housing and quality of life for residents in these properties are upgraded to and/or maintained at Departmental standards.

C.3.0. OBJECTIVE:

C.3.1. The purpose of this contract is to obtain the services of multifamily property management and tenant relocation with professional expertise in multifamily property management and tenant relocation services for market rate, section 8 and elderly properties. Contractors are expected to be individuals or firms that are highly qualified, knowledgeable and capable of performing the required services as defined in Section C.11 and C.12 of this contract and in the relevant HUD Handbooks and guides. The names of the principal persons who are to perform these services are to be listed in Section G.

C.3.2. The Contractor must have the capacity to provide the necessary services, facilities, professional and technical personnel, and all else necessary to manage properties and relocate tenants in accordance with the contract.

C.3.3. The Contractor must have the capacity to provide multiple contract requirements within the same timeframe in differing parts of the contract’s jurisdiction.

C.4. Acronyms:

C.5. Definitions:

Annually: Once a year.

Bi-Weekly: Once every two weeks.

Business Day: Monday through Friday, excluding federally observed holidays.

Calendar Day: Sunday through Saturday.

Common Areas: The physical areas within a property that are normally accessible and open to residents. The term includes facilities and amenities such as swimming pools, health spas, special function rooms, etc.

Contracting Officer: The HUD official authorized to execute and administer this contract on behalf of HUD including any duly appointed successor or authorized representative.

Contractor: The individual, partnership, corporation, or other entity that is the party subject to the terms and conditions of this Contract

Day: Unless otherwise defined “day” shall always represent calendar day.

Defective Service: The term refers to the performance or non-performance of services under a contract that does not meet the standard of performance requirement as specified in the Contract.

Directives: Written instructions issued within the Government to implement program requirements. These directives may be "Handbooks," "Notices," "Special Directives” and memoranda. Directives shall apply to the work performed by the Contractor as expressly stated and referenced in this Contract.

Decent, Safe and Sanitary and in Good Repair (DSS/GR): means that the property and each unit in the property must, at a minimum, fully meet local building, housing, safety and health codes.

Federal Acquisition Regulation: Found at 48 CFR Chapter 1. The FAR is the Federal regulation that governs all Federal contracting.

Fiscal year: The Government's accounting period - the 12 months starting on October 1 of the current year and ending September 30 of the next calendar year (e.g., 10/1/05 - 9/30/06).

“Government”, “HUD”, and “Department”: will be used interchangeably to mean the United States Department of Housing and Urban Development.

GTM: The Government Technical Monitor designated by the COR to provide technical monitoring, advice, and assistance to aid the COR in the technical direction and evaluation of the Contractor’s performance. The Contracting Officer appoints the GTM in writing.

GTR: The Government Technical Representative acts as the contracting officer’s representative in all matters concerning the technical aspects of the contract. The GTR is responsible for the technical direction and evaluation of the Contractor’s performance but does not have the authority to modify the contract in any way. The Contracting Officer appoints the GTR in writing.

National Housing Act: The National Housing Act - PL 479, 73rd Congress, 48 Stat. 1246, 12 U.S.C. 1701 et seq.

HUDAR: HUD Acquisition Regulation, found at 48 CFR Chapter 24. The HUDAR is HUD's procurement regulation implementing and supplementing the FAR.

Key Personnel: Management staff identified in the Offeror’s proposal and later identified in Section I under Key Personnel in the contract. Individuals must be in a position of authority (line manager) above the on-site manager, and/or on-site maintenance personnel. Additionally, other essential personnel the Contractor shall designate as a key person involved in oversight of the responsibilities under the contract are key personnel. All key personnel are subject to the provisions of HUDAR 2452.237-70.

Latent Defect: Defects that existed at the time of acceptance and that could not have been discovered by observation or inspection made with ordinary care.

Low-Income Person/Family: Low-income person or family annual income does not exceed 80% of the median income, in a geographic area with adjustments for larger and smaller families. Median income for a geographic area can be obtained by contacting the SCOR.

Low Income Resident: A low-income person or family who resides in the property (or properties) managed under this Contract.

Median Income- Median income is the amount that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount.

Monthly: Refers to once each calendar month.

Multifamily: Multifamily, generally refers to 5 or more units of residential housing.

Normal Business Hours: 8:00 am to 4:30 pm local time.

PD Division: The Division activities consist of the management, relocation and sale of those properties acquired by HUD and those in MIP status.

Pass-Through Cost: Any actual cost or expenditure that is incurred or made relative to the direct on-site management of a property assigned under the contract. These costs are covered by an operating budget established for the property and approved by HUD. The cost would include all operating expenses of the property and direct costs incurred at the property for the day-to-day operations of the property; security services, any repairs or subcontractor for work performed at the property such as utility expenses incurred by the property. The expenses identified, as pass-through costs are direct expenses to the property with no profits nor benefits realized by the Contractor. Pass-through costs are not deemed as a Contractor’s expense or revenue.

Patent Defect: Defects actually known at the time of acceptance.

Procurement: Acquisition of supplies or services by means of purchasing or awarding contracts/subcontracts.

Property Manager: The individual, partnership, corporation, or other entity that is the party subject to the terms and conditions of this contract. This contract uses the term “Contractor” rather than “Property Manager.”

Prorated: A distribution of charges when multiple properties (more than one FHA case Number) are shared by one office and utilities/services are shared. Charges are to be prorated by the number of units at each property.

Quality Assurance: A plan and systematic pattern of all Government actions, to provide confidence that adequate technical requirements are established, products and services conform to established technical requirements, and satisfactory performance is achieved.

Quality Control: Those actions taken by the Contractor to control the production of outputs to ensure that they conform to the contract requirements.

Quarterly: Once every three calendar months (i.e., January – March, April – June, July – September and October – December). In reference to quarterly inspections, the dates of quarterly inspections are to be determined by the assignment date of a property.

SCOR: The Subordinate Contracting Officer’s Representative provides technical monitoring, advice, and assistance to aid the COR in the technical direction and evaluation of the Contractor’s performance. The Contracting Officer appoints the SCOR in writing.

Section 8: “Section 8” is a common name for the Housing Choice Voucher Program, funded by the HUD which provides tenant based rental assistance.

Section 8 Vouchering: Application process to obtain subsidy payments.

Service Contract Labor Standards: The Service Contract Labor Standards is applicable to persons employed by the Contractor; however, persons employed in a bona fide executive, administrative, or professional capacity as defined in Part 541 of Title 29, CFR, are exempt.

Specialized Facilities: These facilities are defined as, assisted living facilities, nursing homes, and retirement centers.

Subject Matter Expert: Provides technical monitoring, advice, and assistance to aid the COR in the technical direction and evaluation of the Contractor’s performance.

Task Order: An order for services placed against an established contract authorized by the Contracting Officer.

Tenant Relocation Meeting. A meeting held at the beginning of the relocation process to inform tenants of available assistance. The local Housing Authority and a representative from Property Disposition Division, when available, make presentations at the meeting. The purpose of the meeting is to explain to the tenants the reason for the relocation decision and the relocation benefits that are being offered to the tenants. The Relocation Coordinator participates in the meeting by explaining both orally and in writing to the tenants the relocation process and benefits. The local Housing Authority participates in the meeting by explaining its role and responsibilities

TRACS: Tenant Rental Assistance Certification System: Collects and maintains accurate certified tenant rental assistance data.

Very Low-Income Person. A person whose annual income does not exceed 50% of the median income in a geographic area with adjustments for smaller and larger families. Median income for a geographic area can be obtained by contacting the SCOR.

Wages: Payment for services as appropriate with the service Contract labor Standards applicable wage determination.

Weekly: Once every seven days.

C.6. APPLICABLE DOCUMENTS

C.6.1 HUD Handbooks:

HUD Handbook 4315.1, Rev. 1, Changes 1 & 2 – Multifamily Property Disposition

HUD Handbook 4350.1 – Multifamily Asset Management and Project Servicing

HUD Handbook 4350.3 – Occupancy Requirements of Subsidized Multifamily Housing Programs

HUD Handbook 1378 – Tenant Assistance Relocation and Real Property Acquisition

Property Management System (PMS) User Manual

C.6.2 Statutes, Regulations and Notices as related to: Multifamily Property Disposition:

24 CFR Part 290 – Disposition of Multifamily Projects and Sale of HUD-held Multifamily Mortgages

42 CFR Part 24 – Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally-Assisted Programs

24 CFR Part 886 – Section 8 Housing Assistance Program; Special Allocations

24 CFR Part 882 – Section 8 Moderate Rehabilitation Programs

C.7. Government Furnished Information:

C.7.1. The Government shall furnish property, equipment and services as listed:

C.7.2. For the Contractor’s use, the Government shall provide access to CSMS/PMS, or its successor.

C.7.3 As approved by the SCOR, the Contractor shall purchase and deliver to each assigned property a personal computer. The computer must have the capability for direct entry into CSMS/PMS, or its successor. The computer software must have the capability of running Microsoft Windows and have E-mail or other acceptable method to enable direct PC-to-PC communication with HUD and transmittal of spreadsheets and documents in HUD format. The purchase of a personal computer and Internet access is a property expense.

C.8 CONTRACTOR-FURNISHED COMPUTER EQUIPMENT AND SERVICES

C.8.1. The following items are required at the Contractor’s office in order to perform under the contract:

C.8.1.1. A toll-free telephone number shall be established by the Contractor and provided to tenants and HUD personnel for daily operational business.

C.8.2. Interface Equipment and Software: Interface equipment must have the capability of providing direct data entry into CSMS/PMS, or its successor and TRACS. The Contractor shall provide equipment that has the capability of running Microsoft Windows or any other word processing or data processing systems accepted by HUD.

C.8.3. Personal Computer Software: Personal computer must have E-mail or other acceptable method to enable direct PC-to-PC communication with HUD and transmittal of spreadsheets and documents.

C.8.4. Facsimile Machine: The Contractor shall have a fax machine capable of receiving and transmitting documents at any time.

C.8.5. Within 10 business days, after the execution of this contract, the Contractor shall submit to the COR, all forms that shall be used to manage the work required under this contract for property management and relocation services. The COR shall notify the Contractor in writing of approval of forms to be used or provide suggestive changes to the forms within five (5) business days of the Contractor’s submission.

C.8.5.1. Relocation Newsletter

C.8.5.2. Frequently Asked Questions (FAQ)

C.8.5.3. Emergency Housing Tenant Release Agreement

C.8.5.4. Agreement to Relocate

C.8.5.5. Declination of Offer to Relocate

C.8.5.6. Authorization for Release of Information

C.8.5.7. Receipt of Security Deposit

C.8.5.8. Consent of Resident Release to Use a Portion of Relocation Benefits to Offset Obligations

C.8.5.9. Resident’s Relocation Expense/Reimbursement

C.8.5.10. Receipt for Utility Deposit/Transfer Fee

C.9.2. Time and Order of Work: Delivery Schedule and due dates of deliverables are defined in the PWS. Because of the time-critical nature of health and safety issues, delivery periods are often short and require strict adherence unless otherwise agreed to, in writing by the COR/SCOR.

C.9.3. Computer Hardware and Software Requirements: The Contractor shall have necessary computer hardware and software to perform the following functions:

C.9.3.1. Send electronic mail communications.

C.9.3.2 . Provide files compatible with HUD’s standard word processing and data processing systems. (HUD is presently using utilizing Microsoft Office 2010 SR-1 - Word, Excel, Access, and PowerPoint).

C.9.3.3. Provide hyperlinked index C.9.3.4. Record and write full reports to USB Drive.

C.9.4. Communications: In addition to maintaining electronic mail, the Contractor shall have the capability to communicate with HUD via conventional telephone, wireless telephone, and facsimile transmission.

C.9.5. Coordination of Effort: It is presumed that some work under this contract may be subcontracted. Nonetheless, the Contractor shall be responsible for final review of all deliverables and shall ensure the timeliness, accuracy, and completeness of all submissions.

C.10 SPECIFIC WORK REQUIREMENTS:

C.10.1. Task Orders to be issued under this contract will be for property management and tenant relocation services as described in task assignments listed below and performed in accordance with the property management/relocation request, information and calculation sheets attached with the task order/work order. The Contractor shall be responsible for management and administration of all task orders/work orders assigned under the contract and shall furnish the necessary personnel, materials (including any packing materials necessary), labor, services, equipment, and facilities, and otherwise do all things necessary or incidental to assure completion of each assigned task order in accordance with the contract.

C.10.2. Incentive/Disincentive - The Contractor shall make every effort to contact the COR/SCOR regarding the particulars for each assigned property. The Contractor shall keep the COR/SCOR apprised of efforts taken to manage and/or relocate tenants within the scheduled time frames established in the deliverables. The COR or a designated SCOR shall establish and reconfirm the deliverable due dates in writing, for purposes of calculating incentives/disincentives. No incentive shall be paid without written confirmation of the scheduled submission dates.

C.10.2.1. Incentives and disincentives under this contract shall apply for each property management and/or relocation assigned. Applied incentives or disincentives are dependent on the review of each specified deliverable in Section C.11 and C.12 of this contract. If the Contractor submits a deliverable with minimal errors and earlier than the agreed upon due date, an incentive may be awarded. Minimal errors are not serious enough to affect the integrity of the deliverable such as: minimal misspelled words or minimal typographical errors. If the Contractor turns in a deliverable late (after the due date stated in writing from the CO/COR/SCOR) a disincentive may be charged. The Contractor will receive a disincentive if the deliverable has major errors. Major errors affect the integrity of the deliverable such as but not limited to: not reviewing and updating all tenant files; not providing a detailed management plan within the contract timeframe; not providing all required documentation; providing incorrect information; or discrepancies or conflicting information provided in the deliverable.

C.10.2.2. The COR/SCOR will provide an email confirming deliverable due dates. This email will be used for the purpose of determining incentive/disincentive due dates. The COR or a designated SCOR shall determine the deliverable due date in accordance with contract requirement deliverables. The maximum eligible amount of incentive shall be shown on the task orders. A disincentive may be assessed, but in no case shall the disincentive exceed 50% of the fee.

C.10.2.3. Incentives/disincentives shall be calculated from the deliverable due date as defined in the PWS. All hard copy deliverables must be submitted and received in the Property Disposition (PD) Division located in Fort Worth, Texas. Deliverables with due dates falling on weekends or holidays would be eligible for the incentive if the deliverable is received prior to the weekend or holiday. The deliverable would not be considered late, or subject to a disincentive, if received by the first business day following the weekend or holiday; however, no incentive would be paid. Deliverables received after the first business day following a weekend or holiday shall have the disincentive assessed from the actual deliverable due date.

C.10.2.4. If a deliverable is received and deemed unacceptable due to major errors or missing information, the time during which the PD Division is reviewing the original deliverable will not be counted against the Contractor in calculating disincentive. The day the deliverable is returned to the Contractor for correction for major errors including the number of days the Contractor takes to correct major errors will be added to the number of days used in the calculation for late disincentive. This will continue until the deliverable is accepted as free from major errors.

C.10.3. A centralized, computer-based property management and accounting information system developed for use by HUD in the management of multifamily HUD-owned and Mortgagee-in-Possession (MIP) inventory shall be utilized by the contactor to maintain consistency in accounting and financial operations across the nation.

C.10.4. The Contractor has specific responsibilities pertaining to the daily operations of the project. These responsibilities include the management of tenant records, the collection and posting of rent monies, the procurement of goods and services related to daily operating expenses and the submission of invoices and tax bills for payment.

C.11 TASK 1 – Property Management:

The Contractor shall perform Property Management Services (PM) as outlined in this section.

C.11.1. The Contractor shall physically be on-site and in control of the property within 24 hours, of notification of the assignment to the Contractor’s inventory. Refer to HUD Handbook 4315.1, R-1, C-2. Weekends are not exempt from 24-hour requirement unless notified by the COR or SCOR. The initial trip to take control of the property shall be made by one of the Key Personnel or the Leumas Property Management Coordinator.

C.11.2. The on-site property office shall be open five (5) days per week (M-F), 8 hours per day, during normal business hours, except for Federal holidays and inclement weather as determined by the SCOR.

C.11.3. The Contractor shall accomplish the following within the first 48 hours of property control:

C.11.3.1. Notify tenants in writing of change in management.

C.11.3.2. Begin physical inspection of the property including unit inspections.

C.11.3.3. Tenants shall be given a written notification prior to unit inspections in accordance with the local law.

C.11.3.4. Identify any emergency or adverse conditions (visible mold, leaking roofs, infestation, no working utilities, raw sewage, etc.) and prepare a written repair summary recommendation and submit to the COR/SCOR within 48 hours of completion.

C.11.3.5. Recommend to COR and SCOR if the office needs to be made accessible in accordance with Section 504 of the Rehabilitation Act of 1973.

C.11.3.6. Notify all entities in writing of change of management. Provide the SCOR with a copy of the notifications within 24 hours of distribution.

C.11.3.7. The Contractor shall make a determination to directly manage or subcontract the services for Specialized Facilities in accordance with FAR Part 44.4. (Nursing Home Services, Retirement Centers, and Alternate Living Facilities (ALFs) and notify the COR and SCOR.

C.11.4. The Contractor shall accomplish the following within five (5) business days of property control:

C.11.4.1. Within five (5) business days submit, to the SCOR for review, position descriptions, names and resumes for proposed project employees. The Contractor shall notify the SCOR by email when initial profiles have been initiated. All position descriptions shall be signed by each site employee and maintained at the property site.

C.11.4.2. The Contractor shall operate assigned specialized facilities through management services that shall provide and maintain the required tenant/patient level of care, bookkeeping and accounting services.

C.11.4.3. The Contractor shall ensure that licenses, permits, and certifications that are required and necessary are obtained, filed with the appropriate authorities, and displayed in compliance with any ordinance, State law, or Federal statue which requires such action.

C.11.4.4. The Contractor shall ensure that on-site employees that are hired have the required expertise and qualifications necessary to perform the services required to provide the proper level of care for the operation of the Specialized Facility assigned to them.

C.11.4.5. The Contractor shall also ensure compliance on the part of a subContractor with any directives issued by any public agency having jurisdiction in the operation of the Specialized Facility assigned.

C.11.4.6. The Contractor will be required to subcontract for security guard services as directed by the COR/SCOR. In some cases, security needs will include armed guards, unarmed guards and/or police officers. The Contractor is responsible for regularly monitoring the security subContractor. The monitoring includes, but is not limited to, confirmation of the number of guards and/or police officers per shift on a property site, verification of Contractor’s certified payrolls with adequate documentation and verification of gun permits and licenses. All wages and benefits will be according to SCA determinations. Security Contractor invoices that are not fully compliant with the subcontract will not be paid until full compliance is achieved.

C.11.5. All services must be provided in accordance with all applicable statutes, regulations and directives.

C.11.6. All property operating expenses incurred that are necessary for the administration and operation of the assigned properties, shall be paid through the PMS accounting system or its successor.

C.11.6.1. All property expenses will be submitted to the COR and SCOR for approval prior to payment.

C.11.7. The Contractor shall accomplish the following within ten (10) business days of property control:

C.11.7.1. The Contractor shall complete a data base providing the following information for each property management assigned: Project Rental Rate to establish rental rates to be charged for units and amenities and Building Definition to show a definition of all buildings and units within the property.

C.11.7.2. The Contractor shall provide a physical summary report to the COR/SCOR including the conditions of the exterior, common areas, commercial and vacant units. Report must include repairs necessary in each vacant unit to be placed in rentable condition.

C.11.7.3. The Contractor shall determine any obvious environmental concerns and notify the SCOR in writing. Examples of obvious environmental concerns are; raw sewage, exposed wiring, non-working smoke detectors, no heat, or missing entry doors. The list provided is not all-inclusive. If there are no obvious environmental concerns the Contractor shall notify the SCOR in writing. Any questions or concerns should be directed to the COR/SCOR.

C.11.7.4. Establish a security deposit checking account in a federally insured financial institution and make deposit (if applicable) within 10 business days of receiving the funds. The financial institution must have a public banking office located within 10 miles of the property, unless otherwise agreed to in writing by the SCOR. The account must be established in accordance with HUD Handbook 4315.1, R-1, CHG-2. The account must be in the names of the Contractor and the property. If no security deposit funds are received, upon notification from the SCOR, the Contractor shall ensure that a demand letter is sent and must maintain evidence that the delinquent party receives it. Furthermore, the Contractor must send a copy of the demand letter to the SCOR within 24 hours of sending the original demand letter.

C.11.7.5. Determine the status (tenant in good standing, delinquent and/or in the process of being evicted) of all tenants including commercial tenants. If HUD-Owned property convert tenants to the HUD model lease [month-to-month]. If MIP property, convert tenants to month-to-month leases as their current lease expires, in accordance with HUD Handbook 4315.1 Rev 1 CHG 2. Identify any delinquent rents from tenants and forward a recommendation for resolution to the SCOR for review and concurrence.

C.11.7.6. Remove trash, broom sweep and secure/board all vacant units.

C.11.7.7. The Contractor shall have a computer and equipment available on the property site which meets the minimum specifications as determined by HUD. If it is necessary to purchase a new computer, the Contractor shall notify the SCOR prior to the purchase. A minimum of one on–site person must be trained on all systems within two-business days after the computer is installed.

C.11.8. The Contractor shall complete the initial physical survey, plan, and actions, defined in Handbook 4315.1 REV-1, CHG-2, for all units and common areas, noting conditions that do not meet the decent, safe and sanitary and in good repair (DSS/GR) standards discussed herein, and submit to the SCOR within 20-business days of property control.

C.11.9. The Contractor shall accomplish the following within 30-calendar days of property control:

11.9.1. The Contractor shall notify each tenant, in writing, whether security deposit funds have been made available by the previous owner. Email a copy of notification sent to tenants regarding the status of security deposit funds to the COR/SCOR within 30 days.

11.9.2. The Contractor shall establish a petty cash fund. Petty cash is used for small purchases such as postage for sending the collection transmittals to the lockbox, small repair items and cleaning items, etc. The amount of petty cash depends on the number of units and any special needs or activities that may be going on at the property. Usually the amount of petty cash is as follows:

C.11.10. The Contractor shall accomplish the following within 60 calendar days of task order issuance:

C.11.10.1. In accordance with HUD Handbook 4315.1, REV. 1, CHG 2., the Contractor shall prepare and submit to the COR/SCOR for review and approval a Management Plan to serve as a guide to conduct all property operations, within 60 days of property takeover.

C.11.10.2. In accordance with HUD Handbook 4315.1 REV-1, CHG-2, submit the property operating budget to the COR/SCOR for review and approval.

C.11.10.3. The Contractor shall, only if directed in writing by the COR, complete a Comprehensive Project Repair Plan as defined in HUD Handbook 4315.1 REV-1, CHG-2.

C.11.10.4. The Contractor must maintain a Telecommunications Device (TDD) for resident use.

C.11.11. Maintenance of Properties - Ensure the property is decent, safe and sanitary and in good repair in accordance with HUD Handbook 4315.1, Rev. 1, CHG.2.

C.11.11.1. The Contractor shall ensure that there are operational smoke detectors, fire extinguishers, and carbon monoxide detectors, if required by State or local laws. Smoke and carbon monoxide detector inspections shall be made monthly throughout the property and inspections for fire extinguishers shall be made no less than quarterly and shall be retained in a file readily available on-site.

C.11.11.2. The Contractor shall respond to tenant complaints within two (2) business days. Contractor shall respond to and address requests for repairs within 24 hours. If the repairs cannot be completed within 24 hours, within two (2) business days of the request, the tenant must be notified of the actions to be taken to correct the deficiencies and the expected date of completion. Complaints regarding health and safety i.e. fire, flood etc., should be addressed within 2 hours of reported incident.

C.11.11.3. The Contractor shall ensure that all doors and windows in occupied units are securable (i.e. all windows and doors can be locked by the tenants). If window bars are in place they must comply with local code enforcement.

C.11.11.4. The Contractor shall maintain a drug free-living environment and work place in accordance with HUD Handbook 4315.1, Rev.1, CHG.2.

C.11.11.5. Submit to the SCOR the Quarterly and Bi-weekly Unit Inspection reports. The Contractor shall conduct quarterly inspections of all occupied dwelling units and commercial units. For the purpose of the bi-weekly site inspections, the Contractor shall inspect ten (10%) percent of all the vacant units or a minimum of five (if applicable) vacant units. Each vacant unit shall be inspected at least once during the quarter.

C.11.11.6. Placement of Vacant Units in Rentable Condition. The Contractor shall place vacant units in a rentable condition on a case-by-case basis as instructed in writing by the SCOR. However, within 10-business days after vacancy occurs, the unit shall be cleared of trash and broom cleaned. Any perishables, furniture, or other possessions left behind by the tenant, shall be inventoried and disposed of properly.

C.11.11.7. Safety and Utility Diagrams. The Contractor shall maintain detailed diagrams of shut off valves, fuse boxes, pumps, fans and other equipment needed for the proper operation of the property. The diagrams shall be located on-site and readily available in case of an emergency. If no diagrams are available at the time of assignment the Contractor shall inform the SCOR and proceed to acquire the same.

C.11.11.8. The Contractor shall inspect and replace all HVAC filters on a monthly basis if needed in 100% of the occupied units.

C.11.12. Property Expenses - The Contractor shall provide for payment of incurred property expenses through the use of HUD’s accounting system, CSMS or its successor.

C.11.13. The Contractor’s purchase of items needed to properly equip and maintain property offices (e.g., computer, copiers, telephones, postage) will be reimbursed as property expenses only if specifically included in the HUD approved budget or otherwise approved by the SCOR/COR in writing.

C.11.14. The Contractor shall copy and distribute letters, notices, etc. to tenants when appropriate and when instructed by the SCOR. The Contractor shall distribute letters and notices in a language other than English when appropriate.

C.11.15. The Contractor shall notify all tenants of any proposed rent increases, major repairs, or the sale of the property as required in the regulations at 24 CFR 290, and HUD Handbooks 4315.1 REV1 CHG2 and 4350.3.

C.11.16. HUD shall reimburse the Contractor for premium costs of Comprehensive General Liability Insurance no less than quarterly for those properties assigned in accordance with the Task Order procedures herein. The Contractor shall make every effort to procure services with an Insurance Carrier that will allow for the payment of quarterly premiums. If premiums can only be made annually the Contractor shall ensure that the policy for a property is cancelled upon the closing of a property assigned to the Contractor. The Contractor shall request a refund of the prorated premium from the Insurance Carrier. The Contractor shall be diligent in pursuing the request for the prorated premium from the Insurance Carrier. Any refunds of the prorated premium shall be returned to HUD.

C.11.17. HUD shall reimburse the Contractor for petty cash property expenditures. Invoices for reimbursement shall be accompanied by documentation demonstrating procurement and payment of services or expenditures.

C.11.18. Emergency subcontracts: An emergency is defined as a situation where life, health, or property is endangered and immediate action is needed to eliminate or mitigate the dangerous conditions. In the event of an emergency, the Contractor shall acquire necessary goods or services. These goods and services shall be obtained competitively if possible given the circumstances of the emergency situation and paid under the Cost Reimbursement CLIN.

C.11.18.1 The Contractor’s procurement file shall, at a minimum, document the facts of the emergency, including:

C.11.18.1.1. The nature of the emergency;

C.11.18.1.2 The extent of competition obtained or justification for sole source;

C.11.18.1.3. Pricing rationale; and

C.11.18.1.4. Certified HUD-9519, Acquired Property Inspection Report, including inspectors name and signature.

C.11.19. Monitoring and Inspection of SubContractor Work. The Contractor shall adequately monitor and inspect subContractor work to ensure that it is performed in accordance with the terms and conditions of their contract. The Contractor shall make a photographic record of the anticipated repair work and results of the completed repair (before and after photographs). The Contractor shall ensure that a sufficient number of photographs are taken to completely view all work.

C.11.20. Any increase in subcontract cost or project management costs resulting from the Contractor’s lack of adequate monitoring and inspection (e.g., late deliveries, re-performance, etc.) shall be the responsibility of the Contractor. HUD will not reimburse the Contractor for such costs. The Contractor shall ensure all work is completed satisfactorily in accordance with FAR 52.212-4(a)

C.11.21. Routine inspections of work performed on subcontracts of $25,000 or less, shall be performed by the Contractor’s staff. The Contractor shall not be paid additional fees for these inspections. The Contractor shall, as approved by the COR, obtain a professional inspector (i.e. A&E) for inspection of capital improvement inspections where the contract value is above $25,000.

C.11.22. Specialized Subcontracts - Prior CO or COR written approval is required for the Contractor to subcontract for services in support of each property, including but not limited to the following; ie Specialized technical services for nursing homes, retirement centers, ALFs and hospitals, Project Demolition services, Appraisal services, Legal services (e.g., evictions, torts).

C.11.23. Architectural and Engineering (A&E) services. (Note: HUD has separate contracts for A&E services, i.e. Environmental survey, Comprehensive Repair Survey, and testing services, removal of hazardous materials. The requirement for A&E services may be minimal, but the Contractor shall be prepared to subcontract for these services, if needed.

C.11.24. The Contractor shall be responsible for re-performing work with latent or patent defects in accordance with appropriate inspection and warranty clauses. The Contractor shall ensure all appropriate remedies are pursued prior to the expiration of warranties.

C.11.25. The Contractor shall be responsible for producing Progress Reports. A progress time-line report with narrative shall be prepared for all rehabilitation properties. The report shall include projected and actual dates of all milestones, (costs, bidding, specification writing, and awards). A copy of the report shall be included in the Monthly Property Management Report.

C.11.26. The Contractor shall assist in the sale of the property by providing services including, but not limited to, the following:

C.11.26.1. Making property books and records including PMS reports, available for inspection by potential buyers on the days and times established by the COR/SCOR.

C.11.26.2. Maintaining a log of all inquiries and visitors regarding sale of property .

C.11.26.3. Properly and promptly assisting potential buyers and escorting them through a property upon receipt of a properly executed indemnification agreement as approved by the COR/SCOR.

C.11.26.4. Provide any relevant property data to assist in the sale of the property as requested by the COR/SCOR.

C.11.26.5. Having appropriate key personnel available to assist with scheduled open house events, sale of HUD-owned properties, tenant meetings and meetings with other entities as requested by the COR/SCOR. COR/SCOR shall be emailed open house details prior to event.

C.11.27. The Contractor shall accomplish the following duties prior to closing:

C.11.27.1. Provide the COR/SCOR with a complete, updated inventory of all serial numbers of non-expendable property.

C.11.27.2. HUD will not assume any financial obligation beyond the closing. The Contractor will notify the subContractors to submit all invoices within two weeks after closing.

C.11.27.3. Request final readings on the closing date for all utilities. Inform the utility companies that HUD will no longer assume any financial obligation beyond the closing date.

C.11.27.4. Notify all collection agencies of the closing date and instruct them to forward all funds received after the closing to the Fort Worth PD Division.

C.11.27.5. Notify the tenants, in writing, that their security deposits will be transferred to the new owner.

C.11.28. The Contractor submits to the COR/SCOR a written monthly report of property operations for the preceding month for review. These reports are due no later than the 15th of each month. Once all the documents have been reviewed by the COR/SCOR, any findings found are noted in a report. The COR/SCOR then sends a letter along

The reports that are reviewed by the COR/SCOR are as follows:

• Summary of property events – Activities/incidents that took place on the property.

• Security Deposit Reconciliation – Bank Statement.

• Security Deposit Report – List of tenants, balances, and move-in/out dates.

• Aged Delinquency Report – Contains delinquent tenant accounts and the length of time the balances have been outstanding.

• Budget Status Report – Provides a comparison of the dollar amount budgeted for each property to the dollar amount. Four asterisks (****) indicates that 85% of the budget has been spent.

• Collection Transmittal Report – Provides the date the monies were received, the date the transmittal was created and the date the monies were applied by the lockbox.

• Income & Expense Report – Reflects monthly budgeted and actual expenses.

• Project-at-a-Glance Report – Provides a summary of the project operation for the month with comparisons to previous months.

• Cash Disbursements Report – Provides a complete listing of all disbursements made for a specific project during the specified period.

• Recertification Report – A list of all tenants who are due to be recertified within the next 90 days.

• Tenant Work Out Report – Provides the status and list of tenants that are on a work out agreement.

• Eviction Status Report – Provides a list and status of tenants that are being evicted.

• Rent Roll Report – Provides a detailed list of tenants and their rent/charges and payments.

• Vacancy Report – Provides a list of all vacant units.

· Maintenance Log

· Contractor Work Order Log

• Contractor Purchase Order Log – Provides all purchase order numbers used by the Contractor for a given period of time.

• Contractor Contract Log - A report created by the Contractor listing all of the contracts used for a period of time.

• Gantt Chart - The RS/SCOR should only receive this chart when major repairs/rehab is being performed on-site. The chart indicates the progress being made on each repair.

· On-Site Visitor Log – This excludes tenants and their guests as well as on-site personnel.

• On-site Telephone Log – A log used by the on-site property staff for all calls made from the property.

• On-site Fax Log – Copy of all faxes sent from the property.

• Prompt Payment by Project Report – Lists penalty payments made.

• Collection Agency Report – Lists all tenants that have been turned over to a collection agency for non-payment.

• Write-off Report – Lists tenants who have moved out leaving outstanding balances. These tenants have been entered into the system to have their delinquent balance written off.

C.11.29 Site Monitor The Site Monitors shall be personnel from the Contractor’s corporate level and responsible for direct oversight for all duties which are required for property management of HUD inventory assigned under this Contract. The site monitors are required to physically conduct inspections and review all aspects of property management at each assigned inhabited property at least quarterly and each vacant property semi-annually and to provide a detailed written report of findings of each inspection. Each inspection and report shall document all aspects of the day-to-day operations of the property and the required management procedures found during each inspection.

C.11.30. Deliverables:

C.11.3.6

C.11.7.3

C.11.31 Property Management Incentive/Disincentive; Listed below are the Task 1 deliverables that warrant an incentive or disincentive. Each deliverable notates if both an incentive and disincentive are assessed or if the deliverable is subject to a disincentive only.