Draft PWS MPIPP Draft.docx

US Department of Agriculture (USDA)

USDA Rural Development Multifamily Asset Management Rural Housing Service (RHS)

PERFORMANCE WORK STATEMENT (PWS)

Multifamily Physical Inspection Pilot (MPIPP) April 14, 2022

Table of Contents

Project Title Multifamily Physical Inspection Pilot Program (MPIPP)

Introduction This is a non-personal services contract to provide physical inspection and pilot assessment services for the Multifamily Asset Management Branch of the Rural Housing Service (RHS) under the USDA Rural Development Agency. The Government will not exercise any supervision or control over the contract service providers. The Contractor shall perform to the standards specified in this Performance Work Statement (PWS). Contract service providers shall be accountable solely to the Contractor who, in turn is responsible to the Government. The Contractor shall provide all personnel, equipment, supplies, facilities, transportation, tools, materials, supervision, and other items and non-personal services necessary as defined in this PWS.

1.0 Background

The Agency’s current physical inspection protocol has not been modified in over twenty years. Physical inspections are currently performed by RD Loan Specialists in the field. A recent re-alignment from a state-based servicing model to a region-based servicing model and the implementation of a new risk-based system for evaluating the portfolio provides an ideal opportunity to make changes to the current physical inspection protocol. The Agency also recognizes that many other federal and state agencies use well-trained, professional, contract inspectors to perform their physical condition assessments and that there are already well-tested protocols in use in the multifamily housing industry that could be adopted to meet the Agency’s needs.

The Agency’s physical condition performance standards, which describe the physical condition of a properly managed project are found at 7 CFR 3560.103(a)(3)) and Chapter 5 of Handbook-2-3560 Multifamily Asset Management Handbook (https://www.rd.usda.gov/resources/directives/handbooks). The Agency’s interest in protecting the physical condition of projects that it has financed includes:

· Providing decent, safe, and sanitary affordable housing to the residents.

· Protecting and enhancing the security of its investment; and

· Assuring compliance with all applicable State and local laws.

Borrowers are responsible for the long-term, cost-effective preservation of the housing project. The Agency has specified two types of requirements borrowers must meet:

· Performance standards for the project; and

· Maintenance procedures and systems that property managers must design and follow.

It is the Agency’s responsibility to monitor the quality of housing and maintenance practices by performing regular physical inspections.

1.1 Objectives

The Contractor shall ensure all work accomplished in the performance of this PWS meets all applicable Federal, State, and local laws, regulations, and directives to include, but not limited to, the publications in Attachment 4, Additional Guidelines. The Contractor shall compile historical data, prepare required reports, and submit all information as specified by the Deliverables presented in the contract. The Contractor shall ensure all work in support of mission requirements tendered to the Government for acceptance conform to the measurable performance standards of quality, timeliness, and quantity specified in the PWS of this contract.

The intent is to establish work requirements that are performance-based and results-oriented. The Contractor shall determine the best and most cost-effective ways to fulfill housing inspection services, emphasizing innovation and commercial best practices.

The objective of the service is to implement a government provided physical inspection pilot program to test and validate the reliability and effectiveness of a new multifamily housing physical inspection protocol.

The contractor shall provide qualified multifamily housing inspectors to conduct approximately 1,000 multifamily physical inspections using the standard Mortgage Bankers Association (MBA) form 3.03 (at https://www.mba.org/docs/default-source/cmf-policy/cmf_pol_mba_standard_inspection_form.xlsm?sfvrsn=808eab6c_1). This link is also provided in Attachment 2, Required Forms. MBA form 3.03 provides two systems for rating the physical condition of a property: an MBA rating system and a Fannie Mae rating standard. The Agency’s new protocol requires the use of the Fannie Mae standard.

Instructions on completing the MBA form 3.03 are found in the 2019 version of the MBA Reference Guide: Commercial and Multifamily Inspection Reports (https://www.mba.org/Documents/mba.org/files/CREF/WhitePapers/20768_CMF_Property_Inspection_Reference_Guide.pdf). (See Attachment 4 – Additional Guidelines)

Instructions on how to apply the Fannie Mae rating system are found in the MBA Guide and in Fannie Mae’s, “FANNIE MAE MULTIFAMILY INSTRUCTIONS FOR PERFORMING A MULTIFAMILY PROPERTY CONDITION ASSESSMENT” (the “Guide”) ((https://www.mba.org/audience/cref-professionals/commercial/multifamily-resources). (See Attachment 4 – Additional Guidelines)

Although this protocol has been proven to produce accurate, consistent results in multifamily properties in mainly urban and peri-urban areas, the Agency proposes implementing a pilot inspection program to verify that this protocol will result in accurate, objective, and consistent results in federally assisted RD projects in rural areas.

Requirements

2.0 Description of Services

The contractor shall implement a multifamily physical inspection pilot program to verify that the Agency’s proposed protocol will result in accurate, objective, and consistent results in federally assisted multifamily RD projects in rural areas.

The contractor shall meet the education and experience requirements found in Section 1.3.C in the Fannie Mae guide referenced above and found in Attachment 4. The contractor must use inspectors that meet the education and professional experience requirements found in Section 1.3.D of the Fannie Mae Guide referenced above and found in Attachment 4. The contractor must also certify that it meets the insurance requirements found in Section 1.3.E of the Fannie Mae Guide referenced above and found in Attachment 4. The Contractor must sign Attachment 5, Certification of Education, Experience, and Insurance Requirements and submit it with a proposal to be considered a qualified candidate.

Qualified, contract inspectors will perform 1,000, pilot inspections completing the following tabs on MBA Form 3.03 and use the Fannie Mae rating system:

· General Information tab

· Physical Condition and DM tab

· Photo’s tab

· Rent Roll tab

· Management Interview tab

· Multifamily tab

· Fannie Mae Addendum

Instructions and tips on completing these tabs are found in the 2019 version of the MBA Reference Guide: Commercial and Multifamily Inspection Reports and in the Fannie Mae Guide. (See Attachment 4.) All pilot inspection must conform to the Unit Inspection Table below instead of the unit inspection requirements found in the Fannie Mae and MBA guides:

If a project has vacancies, the greater of 5 percent of vacant units or at least 2 vacant units must also be inspected. For example, a 48-unit project with 3 vacant units would require 10 occupied units and 2 vacant units to be inspected for a total of 12 units.

The 1,000 pilot inspections will be made up of a stratified sample that represents key characteristics of the multifamily portfolio. All projects shall be inspected using the same protocol regardless of these characteristics. The stratified sample of projects to be inspected is attached in Appendix 6. If, for some reason, a project on the list cannot be scheduled and inspected, the Contractor must request a replacement project for inspection and state why the original project could not be inspected. These characteristics that make up the stratified sample of projects are:

· Region – the Agency divides the country into four regions Northeast, South, Midwest and West. The sample will reflect the geographic distribution of projects so that 40% (400) are from the South and 30% (300) from the Midwest. The remainder will come from the Northeast and West Regions – 10% (100) will be in the West Region and 20% (200) will come from the Northeast Region.

· Project Size – Approximately 52% of all RD projects have 25 or fewer units (small projects), 38% have between 25 to 50 units (medium sized projects), and 10% have 50 or more units (large projects). The sample will reflect project size distribution across regions

· Tax Credits – About 24% of all projects benefit from tax credits. The representative sample will reflect this based on the number found in each region.

· Family/Elderly Designation – About 60% of all RD projects are designated as family projects and about 40% are designated as elderly projects. The representative sample will reflect this characteristic.

· Performance Rating – RD’s new risk rating system shows that about fifty percent of properties classified as “performing”, thirty percent as “watch” and twenty percent as “troubled” or “critical”. The representative sample will reflect this breakdown.

If an inspector does not deem current repair and maintenance practices or procedures sufficient to maintain the Property, then the inspection report must note any deficiency and provide appropriate recommendations. Any item noted as a deficiency must state whether the deficiency is a:

· Routine maintenance deficiency

· A major or minor deferred maintenance deficiency

· Life safety deficiency

See the MBA Guide Chapter entitled, “Physical Condition and Deferred Maintenance,” (See the link in Attachment 4, Other Guidelines and go to pages 18-21) for instructions on how to apply these terms. All three types of deficiencies must be listed on the Physical Condition and Deferred Maintenance tab of Inspection Form 3.03. The inspector may make comments on this tab in the inspection area where the deficiency is found but all three types must be listed in the Deferred maintenance section of this tab which requires the inspector to:

· Identify the deficiency and describe the condition and location found.

· Rate the deficiency as major or minor using the drop-down menu.

· State whether the item is a life safety finding using the drop-down menu.

· Add a photo of the deficiency using the Add button.

· Give an estimate of the cost to repair the deficiency.

The Chapter entitled, “Physical Condition and Deferred Maintenance,” in the MBA Reference Guide pages 18-21 gives detailed instructions on how to complete the Physical Condition and Deferred Maintenance tab on form 3.03. Attachment 2 provides a copy and a link to the form and Attachment 4 provides the name and link to the MBA Guide.

Accessibility Issues - The Agency requires the borrower and/or management to establish a policy regarding project and unit accessibility for applicants, tenants, and employees in accordance with applicable civil rights legislation. These issues are not sufficiently addressed in either the Fannie Mae or MBA Guide. The Agency’s requirements are found at 8 CFR 3560. 103 of the Code of Federal Regulations, and Appendix 4 and Section 5.3.C of Chapter 5 of HB -2-3560 MFH Asset Management Handbook (https://www.rd.usda.gov/resources/directives/handbooks). The contractor must ensure that all inspectors have the training and requirements needed to assess these standards. Inspectors must report any accessibility violations as major deferred maintenance items on the Physical Condition and Deferred Maintenance tab of MBA Form 3.03

The Contractor shall furnish all necessary inspection equipment required to conduct physical inspections. The Contractor shall furnish all required hardware and data collection devices (laptop, tablet, or smartphone as applicable) and the necessary expertise to maintain the necessary IT environment for the data collection devices. Any other items required for performance of this contract not listed as government furnished are the responsibility of the contractor

3.0 Technical Requirements / Tasks

The overriding objective of the MPIPP is to test and validate that the new physical inspection protocol will result in accurate, objective, and consistent results at federally assisted RD projects in rural areas.

The contractor must provide the technical and functional support as required for integration of all tasks specified within this PWS.

The contractor must provide the centralized administrative, clerical, documentation, and related functions to support the MPIPP.

The contractor must develop and execute all agreed upon processes and procedures necessary for implementing the MPIPP and evaluating the results in agreed upon time frames.

3.1 Specific Objectives

The Agency is seeking a Contractor to implement a national physical inspection pilot program to test and evaluate whether its new physical inspection protocol results in accurate, objective, and consistent results at federally assisted RD projects in rural areas.

3.2 Specific Requirements/Tasks

The MPIPP must be carried out in three phases within 9-months of contract award. These three phases should include the following principal tasks:

Post Award and Kickoff Phase II Field Testing Phase III Full Demo & Evaluation

Mobilization

The contractor’s proposal must provide a draft Baseline Master Program Schedule showing the timeline for completing each of the three phases above of the MPIPP. A final master program plan will be due 15- business days after contract award (see item 2 in the Schedule of Key Deliverables. The Agency is open to negotiating the number of weeks needed to complete each phase if the Contractor has reason to implement a different time schedule.

The contractor is also required to formulate an MPIPP Implementation Plan (see item 3 in the Schedule of Key Deliverables). The Contractor’s proposal must include a first draft of the MPIPP Implementation Plan. The final plan will be due 15-buisness days after contract award. The contractor must demonstrate how it would implement each phase of the pilot program and justify any changes to the above. At the end of the MFPIP, the Agency expects approximately 1,000 successfully completed Physical Inspection Reports and a written report concluding whether the new protocol generates accurate, objective, and consistent results in federally assisted RD projects in rural areas. If the report concludes that the MFPIP was not successful, the report must recommend changes can be made to the new protocol so that it meets the Agency’s needs.

The MPIPP Implementation plan must include the components noted below. All proposals must include a draft description of how they will implement the components below or complete the specific tasks noted below. As noted above, the final plan will be required 15-business days after the contract award. The contractor’s implementation plan must as a minimum include the following:

Effective Performance Metrics: The contractor must develop a set of effective performance measures for each implementation phase as well as for the entire MFPIP life cycle, using industry best practices. The contractor is requested to propose well-defined performance metrics and measurement methodology to support and ensure that the end products satisfy the performance objectives.

MPIPP Communication Protocol: The contractor must develop a comprehensive communication plan which informs multifamily borrowers and management agents that they will be taking part in the MPIPP. The plan should include materials that describe the pilot program, the rationale for the new physical inspection protocol and the overall goals of the pilot program.

and describes what they can do to prepare for the inspection. These materials must explain what owners and agents can do to prepare for the inspection and what documents/certifications they must have ready for an inspector on the date of the inspection. The communication plan must also explain what happens once the inspection is completed and how they can follow-up with the Loan Specialist who is assigned their project.

MPIPP Scheduling and Notification Protocol: The contractor must develop and document the protocol they will used to notify borrowers and management agents of a pending inspection. The plan must describe the notification and scheduling procedures that will be used to schedule all 1,000 inspections across the country. The scheduling and notification protocol should incorporate procedures similar to those used by HUD to mitigate the impact of the COVID pandemic if still an issue during the pilot program (see https://www.hud.gov/sites/dfiles/PIH/documents/REAC_Stakeholder_COVID_Inspection_flyer.pdf).

For the purposes of the MPIPP, property owners and management agents shall be given a maximum of twenty-eight-days’ notice of an impending inspection. This period is considered sufficient to enable property managers to assemble all the necessary documentation that an inspector may need to examine at the time of the inspection and to make all other arrangements necessary to facilitate the on-site visit by the inspector including informing all residents of the inspection. In Phases II and III of the MFPIPP the inspection contractor may perform the inspection within fewer than twenty-eight days if all parties agree to an accelerated schedule in writing.

The contractor must employ a protocol of periodic communication with the property’s point of contact (POC) in the days leading up to the inspection to remind the POC of the inspection requirements. These communications shall include a review of the requirements that the property owner’s point of contact will need to complete prior to and during the inspection, the expectations regarding the services of the on-site representative, the requirements for available certificates/licenses and similar documentation of regulatory compliance, with special emphasis on the requirement pertaining to health and safety deficiencies that may be identified during the inspection.

MPIPP Training Protocol: The contractor must develop and document a pre-training orientation to the new protocol. Although the Agency is adopting a protocol and inspection form that are in widespread use by the GSEs and MBA lenders, the RD portfolio may differ from the portfolios of the other agencies and lenders. Furthermore, the new RD protocol includes an emphasis on confirming that a project meets the Agency’s accessibility requirements, and these requirements are not highlighted on MBA Form 3.0 or the MBA and Fannie Mae guidance. The pre-orientation training should familiarize inspectors of the similarities and differences between the Agency’s proposed protocol and that used by others.

The contractor must also develop, document, and implement a training plan that translates the written protocol by using real-world examples. The contractor must also develop a Field Training component that tests the inspector’s ability to implement the protocol in actual inspection settings using mock and shadow inspections. The plan must include a method for formally testing an inspector’s technical knowledge and procedures for monitoring and making updates to tools and procedures over time.

MPIPP Evaluation Protocol: The contractor must develop and document a protocol and methodology for evaluating whether the new protocol will result in objective, accurate and replicable results in federally assisted RD projects in rural areas.

Accuracy and Replicability Methodology: The contractor must develop and document a methodology for evaluating the accuracy and replicability of inspections across inspectors. The contractor must conduct parallel inspections for at least five percent of the properties in the sample (or about 50 parallel inspections based on a sample size of at 985 and no more 1000).

MPIPP Quality Assurance Protocol (QAP): The contractor must have a protocol for determining whether an inspector understands and accurately executes the inspection protocol. His protocol should help inspectors answer questions regarding the protocol as they arise before, during or after an inspection. The plan should provide for a limited number of parallel inspections to ensure that a recently completed inspection conducted by an inspector is a true representation of the physical condition of the property at the time the inspection took place. The focus is on verifying the quality of the inspection as well as assessing the inspector’s performance. Parallel inspections may be used for this purpose.

The QAP must also document and describe the Code of Conduct that inspectors must follow when inspecting RD projects. The COC should include, but does not have to be limited to the following:

· Arrive on time.

· Identify yourself as a contractor to USDA Rural Development, not an employee of USDA Rural Development.

· Be courteous and professional at all times.

· Display the contractor issued photo identification badge at all times.

· Always be accompanied by the property owner or a representative while on the property.

· Defer questions from the residents regarding the property to the owner or agent representative.

· Do not make promises that items will be repaired based on inspection results.

· Do not offer an opinion as to the quality of the site, unit, or building.

· Refer to persons living in the units as residents not tenants.

· Refer to the property as a development or apartment complex and not a project.

General Information

4.0 Contract Type

This is a firm fixed price contract.

5.0 Period of Performance

This contract will be for a period of performance of 9-months and consists of the following:

6.0 Recognized Holidays

The scope of services under this award may occur outside of normal business days and hours and can occur on Federal Holidays, although Federal Government support may not be available.

(a) Following are the annual federal holidays. The actual date of observance for the Government each year may differ from the calendar date.

(b) In addition to the annual holidays, the Government may observe additional days as holidays, those to include:

• Any other day designated by Federal Statue

• Any other day designated by Executive Order

• Any other day designated by the President’s Proclamation

(c) Unless otherwise authorized by the Contracting Officer, observance of holidays by Government personnel shall not otherwise be a reason for an extension to the period of performance, delivery schedule, or entitlement of payment by the Government to the Contractor. In the event the Contractor’s personnel (including subcontractor) work during the holiday, they may be compensated for the work in accordance with the Contractor’s operational/employee/business procedures; however, no form of holiday or other premium compensation will be paid by the Government, either as an additional direct or indirect cost, over the payments authorized in the contract.

7.0 Place of Performance

The work to be performed under this contract will be performed at the Contractor facilities and other locations. The Contractor will provide all supplies, equipment, facilities, and services, etc. at the place of performance.

8.0 Government Furnished Items

The Government will provide electronic copies of standards, protocols, and processes documents sufficient to describe the new RD inspection process. Copies of required materials may be provided to the Contractor in hard copy or soft copy. All materials will remain the property of the Government and will be returned to the COR upon request or at the end of the contract period.

The Contractor may receive from RD the following information:

1. RD IT requirements for Contractor to receive and transmit inspection information via a private network provided by the government to share only authorized information.

2. Property profile information needed to schedule and complete inspections (e.g., Project Identifier, Project Name, Project Address, Contact Information, Required Inspection Count, Year Built, etc.).

3. Inspection results for submitted inspections (e.g., approved for payment, in review, rejected and reason).

Deliverables

9.0 Schedule of Deliverables

In performing the services and providing the support described in the PWS, the Contractor shall provide the written deliverables as described within this document. All deliverables shall be submitted to the COR/ACOR for inspection, review, and acceptance by the due date. All deliverables become the property of the Government.

All the deliverables (e.g., meetings, products, activities, reports, schedules, plans, documents, etc.) and due dates, including interim steps and final product delivery shall be the property of USDA. The Contractor shall deliver the following deliverables

Schedule of Key Deliverables

• Pilot Objectives

• Pilot Schedule

• Pilot Roles and responsibilities

• Next steps.

Government provides contractor list of sample projects to be inspected.

• Effective Performance Metrics

• MPIPP Communication Protocol

• MPIPP Scheduling and Notification Protocol

• MPIPP Training Protocol

• MPIPP Evaluation Protocol

• Accuracy and Replicability Methodology

• MPIPP Quality Assurance Protocol

Updates as required

Updated in the monthly status report

9.1 Quality Standards

For any documents, the Government expects them to be timely, thorough, and accurate. As each deliverable is usually the result of a series of activities, it is vital that the Contractor and the Government have the same expectations on the content and approach for the deliverable, the activities involved to develop it, including reviews of drafts, organization, and any other expectations for the final product, prior to the commencement of work. Specifically:

· Adherence to Requirements - Work products and deliverables shall adhere to the requirements in the contract.

· Accuracy – Work products and deliverables shall be free from errors and mistakes; and be developed in accordance with applicable laws, regulations, policies, and procedures.

· Completeness – Work products and deliverables shall have all parts or elements adhering to the required content.

· Clarity – Work products and deliverables shall be easy to understand.

· Timeliness – Work products and deliverables shall be available at time required and be delivered on or before specified due dates.

· Format – Work products and deliverables shall be submitted in hard and/or soft copy, as agreed by the contractor and USDA. Both hard and soft copy formats shall follow specified guidance, directives, and/or policies.

In addition to the above, the Contractor must adhere to the following standards to be paid for a completed inspection:

Criteria for Acceptable Inspections: The criteria below will determine whether an inspection report is acceptable so that the contractor is eligible to receive payment for completed inspections. Each inspection report must:

· Be comprised of seven completed tabs from MBA Form 3.03: (I) General Info, (ii) Physical Condition Assessment and DM, (iii) Photos, (iv) Mgmt. Interview, (v) Rent Roll, (vi) Multifamily, and (vii) Fannie Mae Addendum. Each of the applicable data fields under these tabs must be populated with relevant and detailed comments as necessary.

· The report must demonstrate that the inspection met the required sample size for buildings and units noted above. Each inspected unit must be recorded using the “Detailed Report of Units Inspected” on the “Multifamily” tab of the MBA Form 3.03.

· The Contractor must certify that for each property inspected, the inspector inspected all items covered by the six tabs required on MBA Form 3.03. If a violation is found, the Inspection Contractor must report the violations in the appropriate box on the “Physical Condition” tab of MBA Form 3.03. If no suitable place exists on Form 3.03 to record a violation observed during the inspection, the inspector must use the comment boxes “Exterior – Additional description of the property conditions” or the “Interior – Additional Description of the property conditions.

· The Contractor must certify that for each property inspected, the inspector checked for the accessibility issues found at 7 CFR 3560. 103 of the Code of Federal Regulations, and Appendix 4 and Section 5.3.C of Chapter 5 of HB -2-3560 MFH Asset Management Handbook (https://www.rd.usda.gov/resources/directives/handbooks). (See Attachment 3). If an inspector observes a departure from the accessibility guidelines, they must report the departure using the appropriate comment box on tab “Physical Condition & DM” of the MBA Form 3.03.

· Submitted reports must be accompanied with required photographic documentation. Instructions and tips for how to take photos and include them with Form 3.03 are covered in the Photos section of the MBA Guide (See Attachment 4: Additional Guidelines). In addition to including a photo of all deficiencies noted in the report, the inspector must also include the following:

· Glamour shot — Typically, the first photo in the report is a “glamour shot” which is a representative photo of the property, but not necessarily encompassing the entire property or its buildings.

· Property signage — Typically, the second photo in the report shows the Subject Property’s signage which displays the property name and/or street address, in relation to the street and/or to the property. If there is no signage, a photo of the street address on the building is appropriate.

· Entrance — If possible, the main entrance photo should be taken in relation to either the glamour shot, or property signage as described above. Photo captions should identify directions.

· Exterior — Exterior photographs should include exterior building fronts, windows, doors, exterior amenities, parking areas, walkways, balconies, mechanicals, drives, parking lots, sidewalks, landscaping, and roofs if accessible.

· Interior — Interior photographs should include lobbies, hallways, stairs, interior amenities, other common areas, elevators, mechanical rooms, ceilings, floor coverings and resident or tenant unit interiors.

· Required Common Area Signage – photos of the following common area signage must also be included. The report must note if one or more of these is missing. These must be posted in a conspicuous area:

· “And Justice for All” poster (Green) dated 12/2015.

· HUD Equal Housing Opportunity poster in English (Blue) dated 8/2011

· HUD Equal Housing Opportunity poster - Spanish (Yellow) dated 6/2011

· Current Affirmative Fair Housing Marketing Plan (AFHMP) Should not be older than 5 years.

9.1.1 Review and Acceptance

The Contractor shall submit deliverables to the COR for inspection, review, and acceptance. Final acceptance will occur upon COR signature. All deliverables become the property of the Government. The Government will provide timely comments on deliverables, as necessary. The Contractor must incorporate the Government’s comments within five (5) work days of receipt of the COR’s comments, unless otherwise mutually agreed to. In the event of rejection of any deliverables, the Contractor will be notified in writing by the COR of the specific reasons why the deliverables is unacceptable. The Contractor must return revised deliverables to the COR within five (5) workdays.

10.0 Performance Requirements Summary

The contractor shall meet or exceed the requirements stated in this contract. The COR will measure performance through monitoring. The contractor must fully document and explain any deviations from the stated objectives. The contractor’s services shall be considered successful if performance provides the expected outcomes within the performance standards.

Table of Performance Requirements Work Requirement(s) Performance Measure(s) / Standard(s)

of Surveillance

All contractor staff at no less than the minimum stated qualification requirement levels.

COR and SME review and provide feedback within 10-business days.

Final plan covers all 7- sections described in Deliverable 2

All Monthly Reports must summarize:

· period progress,

· upcoming work,

· milestones issues,

· schedules,

· Risks, if applicable, associated with this contract.

· Monthly reports must also include a completed copy of Excel Workbook 2, for each property inspected over the course of the month with all data fields completed. (See Attachment 2 – Required Forms).

All Monthly Reports submitted by the 5th-business of each month unless CO grants an extension

All Monthly Reports include sections listed.

All Monthly Reports include updated Excel Workbook 2, for each property inspected over the course of the month.

COR and SME Review and provide feedback within 5-business days.

Contractor provides an agenda at least 24-hours prior to each meeting that covers cross-program progress, updates, issues scheduling inspections, requests to swap a project on sample list for a new project, problems/risks.

The Contract has completed all inspections at least two weeks prior to the end of the contract.

All inspections must meet the criteria for acceptable inspections in Section 3.2 to receive payment.

The contractor must complete at least 300 inspections by the end of Phase 2 (20-weeks after award) unless the CO grants and extension.

All inspections must be completed at least two weeks prior to the end on the contract.

Within the period of performance of the contract.

COR and staff review all inspections for acceptability and payment.

Report summarizes all data collected and provides the Contractor’s judgement as to whether the new inspection protocol produces objective, accurate and consistent results on the projects inspected. The report must also include any recommendation the Contractor believes would improve implementation of the protocol.

COR and SME review and provide feedback within 10-business days of receipt.

Report summarizes all data collected and provides the Contractor’s judgement as to whether the new inspection protocol produces objective, accurate and consistent results on the projects inspected.

CO and SME review and provide feedback within 5-business days of receipt.

10.1 Quality Control Plan

The contractor shall develop, deliver, maintain, and adhere to a Quality Control (QC) Plan to ensure prior to delivery that their deliverables will meet the requirements of the contract. The Contractor shall submit QC Plan as part of the technical proposal, which will identify the minimum performance indicators, indices, and metrics to be used. The QC Plan will be finalized after contract award. The QC Plan shall be delivered in Word and PDF format. The contractor’s QC Plan shall consist of the following information at a minimum:

· A description of the review/audit process, its documentation, methods of internal review, identification of staff position(s) performing the reviews, and the frequency of the reviews.

· A description of the approach and procedures for communicating with the government;

handling corrective actions; and identifying and implementing potential improvements to the program services.

· A process for project tracking in terms of the deliverables identified in the proposal.

· A description of the performance requirements for each phase of the project and/or labor

· category.

· A description of the performance objective for each Performance Standard in Section 6.0 Performance Requirements Summary.

· A description of the quantifiable Acceptable Level of Performance for each Performance Standard (Reference: Section 10.0 Performance Requirements Summary).

· A description of the method of surveillance including who will perform the surveillance, the frequency, and the process for accomplishing the surveillance.

11.0 Travel

All travel costs associated with the performance of this contract are to be included in the price. Appendix 6 provides the contractor with a list of 1,000, RD projects to be inspected after the award of the contract. All projects will be within the continental United States. No inspections will be conducted in Alaska, Puerto Rico, or the Virgin Islands. The Agency divides the country into four regions Northeast, South, Midwest and West. The states that make up each region are noted below:

Northeast Region: CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VA, VT, WV.

South Region: AL, AR, FL, GA, KY, LA, MS, NC, OK, PR, SC, TN, TX, VI.

Midwest Region: IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI.

West Region: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, WY.

Staffing Needs and Key Personnel

12.0 Staffing Needs/Skill and Relevant Experience

The contractor shall be responsible for employing qualified personnel to perform the services required throughout the life of this contract. The Contractor shall have the personnel, organization, and administrative control necessary to ensure that each task is completed satisfactorily. If questions arise that the Contractor is using other than qualified personnel, the Contractor shall provide proof that personnel possess the proper qualifications and experience.

The Contractor’s personnel must have demonstrated experiences, documented in their resume, referencing the required skills for successfully completing these tasks. All personnel must be fully trained and ready for the tasks for which they are performing and demonstrates good verbal and written communication skills.

The Contractor must not be under suspension or debarment by HUD or Fannie Mae, involved as a defendant in criminal or civil action with HUD or Fannie Mae, and not be on the FHFA’s Suspended Counterparty Program list.

The Contractor, individually or collectively, must meet the minimum qualifications, professional education, training, and experience set forth below to perform site visits, evaluate multifamily property components and building systems, and prepare the MPIPP reports to the specifications set forth in this PWS. The Contractor must be in compliance with these qualifications from the time of engagement by the Agency through the delivery of the final MPIPP report. The Contractor shall include its statement of qualifications in as part of its proposal for this contract.

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 workspace area with their name and company affiliation, or at a minimum, "Contractor" after name.

13.0 Key Personnel

Contractor Implementation and Evaluation Staff The Contractor shall provide a sufficient number of Implementation and Evaluation staff to oversee the implementation and evaluation of the MPIPP. These staff will be responsible for developing the draft and final Baseline Master Program Schedule, the draft and final MPIPP Implementation Plan and its components, the Monthly Status Reports, the Weekly Program Meetings, and the draft and final MPIPP Reports noted in the Schedule of Key Deliverables and described in Section 3.2, Specific Requirements/Tasks. Implementation and Evaluation staff must be responsible for developing and implementing the individual components required in the MPIPP Implementation Plan including development and implantation of the performance metrics, the communication protocol, the scheduling and notification protocol, the inspector training protocol, the evaluation protocol, the accuracy and reliability methodology and the MPIPP quality assurance protocol (QAP) (See Section 3.2, Specific Requirements/Tasks). Implementation and Evaluation Staff must meet the requirements below which are also found the education and experience requirements noted below and found in Section 1.3.C in the Fannie Mae Guide referenced in Attachment 4. The MPIPP Physical Inspection Reports delivered to the Agency must be reviewed and certified by a professional engineer or by a licensed or registered architect, in good standing, or by an individual with appropriate experience and certifications in the construction field. The MPIPP reports must be signed by an employee of the Contractor (i) with experience commensurate with the subject property type and scope (i.e., size, complexity, etc.), and (ii) who is not a subcontractor of the PCA Consultant.

The minimum qualifications of Contractor Implementation and Evaluation Staff

The Contractor must maintain copies of all required certifications and documented experience for each individual responsible for working on the MPIPP and the final MPIPP Report.

1. Education. Qualified Contractor Implementation and Evaluation staff must have a Bachelor of Science degree in engineering, architecture, construction management, historic preservation, construction/building science, or building facilities management.

2. Professional Experience. Qualified Contractor Implementation and Evaluation staff must have the following minimum professional experience:

(a) 5 years of professional experience in one or more of the following disciplines:

architecture.

engineering (structural, mechanical, or civil); or construction management and cost estimating (which may include cost-estimating experience associated with the preparation of a physical inspection report).

experience implementing and evaluation pilot programs.

(b) within the last 3 years, have experience performing multifamily property physical needs assessments, completed a minimum of 5 property inspections, and reporting of physical inspection findings in a manner consistent with these Instructions or ASTM E2018-08, as amended or restated from time-to-time;

(c) prior experience evaluating multifamily properties with comparable building systems and components;

(d) knowledge and experience with ASTM E2018-08 “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process”, as amended or restated from time to time; and

(e) knowledge of applicable federal, state and local building codes and regulations of the Property jurisdiction.

(f) Prior experience conducting and evaluating a similar pilot program to test the proof of concept of a proposed protocol.

MPIPP Physical Inspectors The Contractor shall provide a sufficient number of qualified physical inspectors to complete 1000 physical inspections at the projects located in Appendix 6 (or certain substitute projects agreed to by both parties) within the 9-month contract period of the MPIPP.

MPIPP Physical Inspectors must meet the following qualifications:

1. Professional Experience. A qualified Physical Inspector must have the following minimum professional experience:

(a) 3 years-experience performing physical inspections and have completed a minimum of 5 physical inspections at multifamily properties;

(b) prior experience evaluating multifamily properties with comparable building systems and components;

(c) knowledge and experience with ASTM E2018-08 “Standard Guide for…