PWS RD MPIC 04182023 .docx

US Department of Agriculture (USDA)

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

PERFORMANCE WORK STATEMENT (PWS)

Multifamily Physical Inspection Contract (MPIC) April 18, 2023

Table of Contents

PROJECT TITLE

RD Multifamily Physical Inspection Contract (MPIC).

INTRODUCTION

This is a non-personal services contract to provide physical inspection 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, provided 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.

Between October 2022 and August 2023, RD contracted to implement the Multifamily Physical Inspection Pilot Program (MPIPP) program to test and evaluate the reliability and effectiveness of a new multifamily housing physical inspection protocol. The contractor provided qualified multifamily housing inspectors to conduct 1,075 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 MPIPP tested the use of the Fannie Mae standard.

RD’s evaluation of the MPIPP concluded that using this protocol results in accurate, objective, and consistent results in federally assisted RD projects in rural areas. As a result, USDA RD is seeking a contractor to provide physical inspection assessments of properties overseen by the Multifamily Asset Management Branch of the Rural Housing Service (RHS) under the USDA Rural Development Agency using this new protocol.

1.1 Objectives

The Contractor shall ensure that 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 program using the protocol defined below.

The contractor shall provide qualified multifamily housing inspectors to conduct between 2,000 and 4,000 multifamily physical inspections per year 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)

REQUIREMENTS

2.0 Description of Services

The contractor shall provide qualified multifamily housing inspectors to conduct between 2,000 and 4,000 multifamily physical inspections per year.

The contractor shall meet the education and experience requirements found in Section 1.3.C in the Fannie Mae guide dated September 2020 referenced above (see Attachment 4) and in Section 13.0 Key Personnel of this PWS. 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) and in Section 13.0 Key Personnel of this PWS. 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 between 2,000 and 4,000 inspections per year completing the following tabs on MBA Form 3.03 and use the Fannie Mae rating system:

· General Information tab

· Management Information and Interview tab

· Multifamily, Mobile Homes, Cooperative Housing, Student Housing Tab (“Multifamily”)

· Physical Condition Assessment and Deferred Maintenance tab

· Photo’s tab

· Fannie Mae Assessment Addendum

Inspections will be conducted using the MBA 3.03 Excel Spreadsheet and the contractor will provide RD with the PDF results of the tabs noted above. 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 inspections 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 inspector must inspect at least 1-handicapped accessible unit from the required number of occupied and vacant unit unless one is not available. If a handicapped accessible unit is not available for inspection it must be noted on form 3.03 in the General Comment Box on the Multifamily, Mobile Homes, Cooperative Housing, Student Housing Tab.

The contractor will be provided with - a spreadsheet describing which properties must be inspected, where they are located and the number of dwelling units at each project. The contact information needed to schedule inspections will be provided after contact award. All projects shall be inspected using the same protocol and they must be completed within the specified period of performance. 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. The Agency will provide the Contractor with a replacement.

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 on the Physical Condition Assessment and Deferred maintenance tab, provide a description that will allow all parties to easily locate where the deficiency is found, provide a photo of the deficiency and the estimated cost of repairing the deficiency based on the inspector’s professional judgment.

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 Assessment 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 Assessment 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 highlighted on MBA form 3.03 or 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 Section 5.3.C of Chapter 5 of HB -2-3560 MFH Asset Management Handbook (https://www.rd.usda.gov/resources/directives/handbooks) and Appendix 5 of that Handbook. The contractor must ensure that all inspectors have the training and certifications needed to assess these standards. Inspectors must report any accessibility violations as deferred maintenance items on the Physical Condition Assessment 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. The contractor must also resolve any issues encountered with the MBA form 3.03 and/or develop workaround solutions to any problems encountered with the form.

3.0 Technical Requirements / Tasks

The contractor shall provide qualified multifamily housing inspectors to conduct between 2,500 and 4,000 technically acceptable multifamily physical inspections per year following the protocol and standards outlined in this PWS. The contractor must schedule and complete 2,500 acceptable inspections in the base year of the contract and between 2,000 and 4,000 inspections in years two through five depending on funding.

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 MPIC.

The contractor must develop and execute all agreed upon processes and procedures necessary for implementing the MPIC in agreed upon timeframes.

3.1 Specific Objectives

The Agency is seeking a Contractor to provide between 2,000 and 4,000 technically acceptable physical inspection per year meeting the standards outlined in this PWS.

3.2 Specific Requirements/Tasks

The base-year of MPIC must be carried out in three phases within 12-months of contract award. These three phases should include the following principal tasks:

Post Award and Kickoff Phase II Field Testing Phase III Full Implementation

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 MPIC. 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 of the base year contract if the Contractor has reason/justification to implement the base year inspections on a different time schedule, if the 2,500 inspections are completed within the base year period of performance.

The contractor is also required to formulate an MPIC Implementation Plan (see item 3 in the Schedule of Key Deliverables). The Contractor’s proposal must include a first draft of the MPIC Implementation Plan. The final plan will be due 30-business days after contract award. The contractor must demonstrate how it would implement each phase of the program and justify any changes to the above. At the end of the base-year of the contract, the Agency expects the contractor to have s completed 2,500 technically acceptable Physical Inspection Reports.

The MPIC 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 MPIC Implementation Plan will be required 30-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 of the three implementation phases as well as for the entire MPIC 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 and that inspections are accurate, consistent, and objective.

MPIC Communication Protocol: The contractor must develop a comprehensive communication plan which informs multifamily borrowers and management agents of the inspection protocol and what they must do to prepare for the inspection. These materials must explain what documents/certifications they must present to an inspector on the date of the inspection. The communication plan must also explain what happens once the inspection is completed and how the Owner/Agent can follow-up with the RD Servicing Specialist who is assigned their project.

MPIC Scheduling and Notification Protocol: The contractor must develop and document the protocol they will use 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 inspections across the country. The scheduling and notification protocol should incorporate CDC procedures to mitigate the impact of the COVID pandemic. CDC has updated COVID-19 community levels to guide masking protocols for the following week (COVID-19 Community Levels | CDC).

For the purposes of the MPIC, property owners and management agents shall be given a maximum of up to thirty calendar days (30-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 and in option years of the MPIC, the inspection contractor may perform the inspection with fewer than thirty days’ notice if all parties agree to an accelerated schedule in writing.

The inspection date and time may be agreed to by telephone or email and then confirmed by email. 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. The contractor must employ a protocol of periodic communication with the property’s point of contact (POC) after the inspection date and time have been confirmed in the days leading up to the inspection to remind the POC of the inspection requirements. There should be at least one email notice 7-10 days before the date and time of the inspection and a second email 48-hours before the date and time of the inspection.

MPIC Training Protocol: The contractor must develop and document a pre-training orientation for inspectors to the new protocol. Although the Agency is adopting a protocol and inspection form that are in widespread use by the Government Sponsored Entities (GSEs) and MBA lenders, the RD portfolio may differ from the portfolios of 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 3.03 or in the MBA and Fannie Mae guidance. The pre-orientation training should familiarize inspectors with 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.

Accuracy and Replicability Methodology: The contractor must develop and document a methodology for evaluating the accuracy and replicability of results across inspectors/inspections. The contractor must conduct parallel inspections for at least five percent of the properties in the sample (100 parallel inspections in the base-year based on a sample size of 2,000 inspections).

MPIC Quality Assurance Protocol (QAP): The contractor must develop a protocol for determining whether an inspector understands and accurately executes the inspection protocol. This contractor’s plan must 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 (see above Accuracy and Replicability Methodology) 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 up to 5% of the total number of inspections required each year.

The QAP should ensure that inspector’s submit completed inspections to the contractor no later than 48-hours after the inspection has been completed. The QAP must also ensure that the contractor reviews each inspection to determine that it is error free, complete and in standard and provide it to the RD COR within 10-days of the completion of the inspection.

The QAP must also document and describe the Code of Conduct (COC) 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 always issued photo identification badge.

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

· Defer questions from the residents about 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.

· Do not attend an inspection, or take part in an inspection in any capacity, which is being conducted by another MPIC inspector while providing independent consulting services of any kind on behalf of the property owner or representative.

· Do not Include in attendance or participation during an RD inspection any unauthorized person, including family, friends, or MPIC inspectors unless the MPIC inspector is authorized to conduct a parallel inspection.

· Do not use any facility on a property, property owner's office, housing agency office, or RD field office to conduct personal business.

· Do not use profanity or other offensive language prior to, during or after an inspection.

· Do not engage in fraudulent activities, such as, but not limited to, falsifying an inspection.

· Do not conduct an inspection under the influence of alcohol or drugs.

· Do not smoke anywhere on a property.

· Do not threaten, verbally or in writing, residents, inspection participants, property representatives or any other individual with whom the inspector comes in contact.

· Do not carry a firearm or weapon of any kind, or any other object that could be construed as a weapon, on a property.

· Do not commit theft or intentional damage to property.

· Do not threaten or engage in violence against any person while conducting an inspection; and

· Do not engage in sexual misconduct or any other type of unwanted conduct.

All inspectors must follow the Code of Conduct. The contactor must ensure that failure to do so may result in issuance of a Letter of Warning, issuance of one or more Performance Deficiencies (PDs), suspension, or decertification as an RD inspector.

GENERAL INFORMATION

4.0 Contract Type

This is a firm fixed price contract.

5.0 Period of Performance

This contract will be for a base period and 4-option years:

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 or dedicated mailbox 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 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 all items noted in the table below.

Schedule of Key Base Year Deliverables

• Objectives

• Schedule

• Roles and responsibilities

• Next steps.

Government provides contractor list of sample projects to be inspected.

Tasks, above

Tasks The draft MPIC Implementation Plan is submitted with the proposal. The Final MPIC Implementation Plan must addresses all the components in Section 3.2:

• Effective Performance Metrics

• MPIC Communication Protocol

• MPIC Scheduling and Notification Protocol

• MPIC Training Protocol

• MPIC Evaluation Protocol

• Accuracy and Replicability Methodology

• MPIC Quality Assurance Protocol

Updates as required.

Updated in the monthly status report

(Section 9.0 Schedule of Deliverables) Summarize period progress, upcoming work, milestones issues, schedules, and 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. (See Attachment 2 – Required Forms).

Schedule of Key Deliverables in Option Years 2-5

(Section 9.0 Schedule of Deliverables) Summarize period progress, upcoming work, milestones issues, schedules, and 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. (See Attachment 2 – Required Forms).

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 Deferred Maintenance tab, (iii) Photos tab, (iv) Management Interview and Information tab, (v) Multifamily tab, and (vi) Fannie Mae Assessment Addendum tab. Each of the applicable data fields under these tabs must be populated with relevant and detailed comments, as necessary. The Agency and the contractor will agree on which data fields on these tabs must be filled after the award of the contact.

· The report must demonstrate that the inspection met the required sample size for vacant and occupied units as noted above and that at least one handicapped unit was chosen among those if available. Each inspected unit must be recorded on 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 Deferred Maintenance Table at the bottom of the on the Physical Condition Assessment and Deferred Maintenance 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, Section 5.3.C of Chapter 5 of HB -2-3560 MFH Asset Management Handbook (https://www.rd.usda.gov/resources/directives/handbooks) and Appendix 5 of Handbook 2. (See Attachment 3). If an inspector observes a departure from the accessibility guidelines, they must report the departure in the in the Deferred Maintenance Table of the Physical Condition Assessment and Deferred Maintenance tab” of the MBA Form 3.03.

· Submitted reports must be accompanied with required photographic documentation. Photographs must have date and time stamp. 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, and the Fair Housing and Handicapped Accessibility logos 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, refuse disposal areas, mechanicals, drives, parking lots, sidewalks, landscaping, and roofs if accessible.

· Common Areas and Amenities - Photographs of accessible routes to all common areas and amenities.

· 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.

· House Rules

· Grievance Procedures

· Office Hours and Emergency Telephone numbers.

9.1.1 Review and Acceptance

The Contractor shall submit deliverables to the Project Manager and 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 review each inspection report to ensure it is complete and in standard within ten (10) business days of the inspection being completed. The Agency will review each inspection and inform the contractor of any comments/corrections within three (3) business days of receipt of the inspection. The Contractor must incorporate the Government’s comments, if accepted, within five (5) business 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 are unacceptable. The Contractor must return revised deliverables to the COR within five (5)days. The Agency will pay 50% of the cost of an inspection that cannot be completed if is cancelled within 48-hours of the inspection date and time provided the contractor can document that the cancellation was unavoidable and not the fault of the contractor. The contractor would then have the option of completing the inspection later with all party’s approval within the period of performance or the Agency will provide a new property for inspection.

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 Base Year Performance Requirements Work Requirement(s) Performance Measure(s) / Standard(s)

of Surveillance

Post Award Conference (Section 9.0 Schedule of Deliverables - #1) Conducted 5-business days after award unless extension granted by government CO.

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

Baseline Master Program Schedule (Section 3.2 Specific Requirements/Tasks and Section 9.0 Schedule of Deliverables - #2)

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

MPIC Implementation Plan – Final Version of Draft Plan Submitted with Proposal (Section 3.2 Specific Requirements/Tasks and Section 9.0 Schedule of Deliverables - #3) Final MPIC submitted within 30-business days after contract award unless the CO grants an extension.

Final plan covers all 7- sections described in Deliverable #3. This plan will be modified as needed throughout the contract.

Monthly Status Reports (Section 9.0 Schedule of Deliverables - #4) All Monthly Reports submitted by the 5th-business day of each month unless CO approves an extension.

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.

Weekly Program Meetings (Section 9.0 Schedule of Deliverables - #5) until March 31, 2024, and then bi-weekly until September 30, 2024. 26 one-week meetings and 13 bi-weekly meetings.

Contractor will facilitate all Weekly Program Meeting held on day agreed by both parties unless CO approves an alternate day.

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 2500 inspections at least two weeks prior to the end of the Base Year 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 500 inspections by the end of Phase 2 (26-weeks after award) unless the CO grants and extension.

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

Within the period of performance of the base Year of the contract.

COR and staff review all inspections for acceptability and payment.

Final Written Report (Section 9.0 Schedule of Deliverables - #8)

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

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

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

of Surveillance

Monthly Status Reports (Section 9.0 Schedule of Option Year 2-5 Deliverables - #1) All Monthly Reports submitted by the 5th-business day of each month unless CO approves an extension.

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.

Monthly Program Meetings (Section 9.0 Schedule of Option Year 2-5 Deliverables - #2) Contractor will facilitate all Weekly Program Meeting held on day agreed by both parties unless CO approves an alternate day.

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…