Q A Addendum On Site Physical Inspection Services RFP.docx

On-Site Physical Inspection Services Q&A Addendum

1. Will you please provide previous award details on this solicitation if applicable? I was unable to locate any.

a. This is a new initiative. There is no incumbent contractor.

2. Attached is the sampling rate used for NSPIRE (Exhibit A), I am assuming this same methodology will be used here and within their InspectCheck software? Within the same vein, when you say 12,000 units the actual number we are inspecting is less because of this sampling, correct?

a. No, this is not correct. The total estimated number of developments is 1,100 and using the NSPIRE methodology, we estimate that approximately 10-11 units per development will need to be inspected.

3. It looks like you are thinking about 10% will be re-inspected. Will these re-inspections be a “full” inspection, or will we only be inspecting the defects we found at first visit to the property?

a. The objective of a Re-Inspection is to validate that the indicated deficiencies have been corrected. The InspectCheck software module only provides access to the deficiencies for a Re-Inspection. There is no requirement or ability to conduct a “full” re-inspection.

4. Our team has extensive experience with the NSPIRE protocol. We wanted to confirm whether inspections for this project are intended to be conducted solely under the NSPIRE standard, as references to local or state codes can vary by municipality. Additionally, please confirm that UPCS is no longer applicable and that NSPIRE is the governing standard.

a. The NSPIRE protocol is used for the majority of IHDA’s portfolio with the exception of five (5) Mod Rehab developments which require annual UPCS inspection. The InspectCheck software module provides the UPCS template for the Mod Rehab developments.

5. My interpretation of this language is that we will be responsible for notifying the properties about the 24 hour, 30-day, 60-day, and 90-day defects. Can I have any more detail on this?

a. The contractor is responsible for notifying the property of the 24-hour, 72-hour, 30-day, and 60-day cure periods as described in Exhibit 2 of the RFP. Templates for notification will be provided to the contractor.

6. According to this language, we will be responsible for reviewing completed work orders and photos from the properties showing that the defects are all completed, what happens if they are not completed properly?

a. Yes, the properties are responsible for providing work orders corresponding to the noted deficiencies to the contractor. The RFP (Section A.1.10) requires that the contractor possess the requisite certifications to determine whether the submitted work orders adequately resolve the identified deficiencies.

b. If the contractor determines that the work orders do not resolve the deficiencies, the contractor must notify the property (via email) that the submitted documentation does not demonstrate compliance for the cited deficiency with a 10-day response. If the development does not respond within ten (10) days, the contractor must issue a Final Fail letter for the inspection and update the property’s status to Final Fail in DMS (Refer to Exhibit 2 in the RFP).

7. We will be required to wear uniforms according this language, will IHDA ask for any license information from myself and/or my inspectors that I have performing these inspections? I’m guessing you will at least do background checks or security clearances of some type?

a. See A.1.12 Contractor Attire and Professional Appearance Requirements and see F.2. Mandatory Requirements for required experience and certifications.

8. Section: Volumes & Quantities; Exhibit 1 – Pricing Document:

Can IHDA confirm whether the estimated 12,000 units per year represents unique units, or whether units may be inspected multiple times across inspection types?

a. The estimated 12,000 units per year represent unique units which may/may not have layered financing and layered compliance requirements. In the instance of a layered compliance unit, i.e. HOME+LIHTC, the unit would be inspected once using the NSPIRE standards.

9. Section: Scope of Work – Work Order Reviews; Exhibit 1 – Pricing Document:

The RFP estimates seventeen (17) work orders per inspection. Is this figure intended to represent an average, a maximum, or a planning assumption, and should vendors expect this number to fluctuate by inspection type?

a. This estimate represents an average considering work orders are only required for failed inspections and the majority of the inspections are triennial NSPIRE inspections.

10. Section: Areas of Concern – Geographic Dispersion:

Will IHDA provide a regional or county-level breakdown of expected inspections to assist vendors in planning staffing deployment and travel logistics?

a. Yes, at the beginning of each inspection cycle, IHDA will provide a list of properties including city and county filters.

11. Section: Overview and Purpose; Exhibit 2 – Inspection Procedures:

Does IHDA anticipate a specific percentage allocation between NSPIRE and UPCS inspections during the contract term?

a. IHDA applies the more stringent program standard (Exhibit 2) when determining inspection sampling requirements, using the lesser sample size required under either NSPIRE or applicable program standards. The NSPIRE protocol is used for the majority of IHDA’s portfolio, except for five (5) Moderate Rehabilitation (Mod Rehab) developments, which require annual inspections under UPCS standards.

12. Section: Areas of Concern – Evolving Federal Standards; Exhibit 2 – Inspection Procedures:

How will IHDA communicate mid-contract changes to federal, or HUD guidance related to NSPIRE scoring, cure periods, or inspection protocols?

a. When there is regulatory change, IHDA updates internal procedures impacted by that change. Those procedures will be shared with the contractor.

13. Section: Areas of Concern – Multiple Funding Layers; Exhibit 2 – Inspection Procedures:

For properties subject to multiple funding layers, should vendors expect to conduct combined inspections or separate inspections for each applicable standard?

a. Yes, the contractor should expect to conduct combined inspections. The estimated 12,000 units per year represent unique units which may/may not have layered financing and layered compliance requirements. In the instance of a layered compliance unit, i.e. HOME+LIHTC, the unit would be inspected once using the NSPIRE standards.

14. Section: Scheduling and Notifications:

How does IHDA want vendors to document and address owner or resident access delays that could jeopardize the November 30 completion deadline, and are there any IHDA-approved templates vendors should use to communicate urgency to owners?

a. See A.1.1. Scheduling and Notifications. The contractor will be responsible for notifying the property at least 14 days in advance. IHDA will provide a template for this notification and any follow-up that may be required for scheduling concerns. The contractor will be required to provide monthly reporting of scheduled, completed, or delayed inspections.

15. Section: Scheduling and Notifications:

Are there circumstances under which IHDA may approve inspections with less than fourteen (14) business days’ notice, such as resident concern inspections or emergency situations?

a. IHDA may approve inspections with fewer than fourteen (14) business days’ notice, such as for resident concerns or emergency situations.

16. Section: Inspection Procedures – Access Requirements; Exhibit 2 – Inspection Procedures:

How should vendors document refused access or no-show situations, and are such visits considered billable events?

a. As part of IHDA’s monitoring responsibilities under the development’s legal documents, IHDA is required to exercise all available rights and remedies to obtain necessary compliance monitoring documentation. This may include declaring a non-monetary default if the Owner or Management fails to cooperate.

b. Upon receiving a refusal, the contractor must promptly notify IHDA of any denial of access. IHDA will then contact the development’s on-site and regional manager to determine the reason for the refusal. If the development continues to deny access, IHDA will instruct the contractor to submit a “Failed letter for the current compliance period” for developments where access is refused or where there is a no-show. The contractor must update DMS and upload the documentation to the appropriate portfolio folder. A letter template will be provided.

17. Section: Reporting; Exhibit 3 – Sample Inspection Report:

Can IHDA clarify which data fields in DMS are mandatory versus optional to help vendors avoid duplicative work or re-entry?

c. Document inspection results in IHDA’s system of record, Document Management System (DMS), and IHDA’s inspection software program, InspectCheck, within two (2) business days of completing the inspection. Prior to the inspection, the contractor must enter the monitoring type, location, and inspector’s name in DMS. After the inspection, the contractor updates DMS with the inspection results and the programs inspected.

18. Section: Reporting; Exhibit 3 – Sample Inspection Report:

Is there a minimum or maximum number of photographs per inspection or per deficiency that IHDA expects inspectors to submit?

a. No there is no minimum or maximum number of pictures.

19. Section: Quality Assurance and Continuous Improvement:

Does IHDA have an internal quality assurance error tolerance threshold, such as an acceptable percentage of findings corrected by IHDA staff, that vendors are expected to meet?

a. IHDA staff do not correct findings for inspections; and the contractor is not expected to correct findings. The properties are expected to resolve findings, i.e. physical inspection deficiencies within the time allocated on the deficiency notification. The contractor is expected to perform quality control on all contract related deliverables. The inspection is not considered completed unless all required deliverables have been provided by the contractor.

20. Section: Staffing Plan and Organizational Capacity:

Does IHDA permit the use of independent contractor (1099) inspectors, provided all insurance, certification, and training requirements outlined in the RFP are satisfied?

a. IHDA does not prohibit the use of independent (1099) contractors to conduct inspections rather than, presumably, (W2) employees of the offeror. The use of subcontractors is not prohibited under the IL Procurement Code but must be disclosed pursuant to the Ill Procurement Code. See F.1.1. for inspection standards and F.2.1. for required certifications and years of experience for W2 or 1099 staff.

21. Section: Staffing Plan and Organizational Capacity:

Is the requirement to ensure “at least six (6) inspectors” intended to be a hard minimum at all times, or an average capacity expectation based on workload and surge periods?

a. Contractors must ensure at least 6 inspectors are available for physical inspections, while syncing with IHDA’s scheduling and workload priorities.

22. Section: Pricing; Exhibit 1 – Pricing Document:

Can IHDA confirm that per-unit pricing is acceptable for all inspection types listed in Exhibit 1?

a. Yes, per unit pricing is expected for all inspection types.

23. Section: Term and Renewal; Exhibit 1 – Pricing Document:

For renewal terms, will IHDA accept a cost-of-living adjustment (COLA) increase of up to three percent (3%)?

a. The contractor should submit their best and final offer for the initial year and renewal years. If the contractor’s offer includes a COLA approach, the COLA must be defined for renewal years in a dollar amount for each renewal because the contract for the selected vendor will be issued with a Not-To-Exceed ceiling for the term of the contract.

24. Section: Demonstrations; Evaluation Methodology – Demonstration Criteria:

During vendor demonstrations, should Offerors focus primarily on technical inspection workflows, staffing capacity, or data and reporting outputs?

a. See F.5.1, 2, and 3 for Point Value to inform the contractor’s focus during the demonstration.

25. Section: Award and Evaluation Process:

Does IHDA anticipate making multiple awards to support regional coverage, or a single statewide award?

a. Single statewide award.

26. Section: Desired Outcomes – Operational Efficiency:

Will IHDA identify backlog or high-risk properties that require prioritization immediately following contract award?

a. Yes. (Exhibit 2 of the RFP)

27. Section: Contract Terms and Conditions – Force Majeure:

How does IHDA expect vendors to manage inspection obligations during weather events, public health emergencies, or access moratoriums?

a. Given that the portfolio is statewide, we have not experienced or responded to a statewide weather event. Therefore, if there is a local/regional weather event – other locations are still subject to the physical inspection schedule.

b. When there are public health emergencies and access moratoriums, such as with the Covid-19 pandemic, IHDA issues a Management Bulletin to the property owners/property management companies informing them of IHDA’s actions based upon State and Federal guidelines.

Section A — Volume, Timing, and Assignment of Inspections

28. Partial-Year 2026 Volume (This was asked live at Pre-Bid Conference) The RFP estimates approximately 1,100 developments annually. Given the anticipated June 2026 contract start and the November 30 completion deadline, can IHDA clarify the anticipated inspection volume for the partial 2026 contract year, and whether some inspections will be completed by IHDA staff prior to contract start?

a. It is anticipated that given the anticipated June contract start, some of the 2026 inspections will be completed by IHDA staff.

29. Vendor vs. IHDA Inspection Volume (This was asked live at Pre-Bid Conference) Do the estimated 1,100 developments and 12,000 units annually represent the total inspections anticipated for the selected vendor(s), or do these estimates include inspections completed by IHDA staff? What annual inspection volume should vendors reasonably anticipate?

a. In 2026, IHDA staff will complete some of the inspections. In subsequent years, it is expected that the selected contractor(s) will complete the majority of the inspections.

30. Backlog vs. Steady-State Workload Is the estimated annual inspection volume driven in part by a backlog of inspections? If so, can IHDA clarify how much of the anticipated workload is backlog-related versus steady-state annual volume?

a. The estimated annual inspection volume does not include backlog.

31. Inspection Allocation for Multiple Awards (This was asked live at Pre-Bid Conference) Does IHDA anticipate awarding this contract to a single vendor or multiple vendors, and if multiple awards are made, how does IHDA anticipate allocating inspection volume among vendors?

a. Single statewide award.

32. Annual Inspection Lists and Start Dates (This was asked live at Pre-Bid Conference) How far in advance of each calendar year does IHDA anticipate providing vendors with the list of properties to be inspected? Can inspections begin any time after January 1 in each contract year?

a. IHDA intends to use the month of December to reconcile all completed inspections in order to produce the list of inspectable properties for the following January. This is subject to the contractor(s) completing the assigned inspections by November 30 to allow for the reconciliation.

33. Assignment Timing Following contract award in June 2026, when does IHDA anticipate issuing inspection assignments or inspection lists for the remainder of the 2026 inspection cycle?

a. Within 10 business days of contract execution, the list of 2026 inspections will be provided to the selected contractor.

Section B — Inspection Standards, Sampling, and Scope Control

34. Inspection Standard Assignment for Layered Properties (This was asked live at Pre-Bid Conference) For properties with multiple funding sources, will IHDA assign a single governing inspection standard per inspection, or will vendors be required to comply with multiple standards during a single inspection visit?

a. No, contractor(s) will only be required to comply with one inspection standard per property. The NSPIRE inspection standard is used for the majority of IHDA’s portfolio with the exception of five (5) Mod Rehab developments which require annual UPCS inspection.

35. Identification of Applicable Standard Will the applicable inspection standard (NSPIRE or UPCS) be clearly identified in each inspection assignment notice?

a. Program standards, frequency, and sampling are shown in Exhibit 2. Multiple program inspections use the most stringent program requirements.

36. UPCS / NSPIRE Unit Sampling Logic (This was asked live at Pre-Bid Conference) We understand that unit sampling must include 20% of the program units or the minimum HUD UPCS or NSPIRE sample size, whichever is less. Pages 34–35 of the RFP reference Table 9 from the Federal Register for unit sampling logic to assist in determining sampling; however, the NSPIRE sample size table was formally corrected by HUD on January 17, 2025. Can vendors assume IHDA will adopt the currently applicable HUD NSPIRE sampling logic prior to contract award and implementation? The correction and current unit sample chart from the Federal Register can be found here: https://www.federalregister.gov/documents/2025/01/17/2025-01116/national-standards-for-the-physical-inspection-of-real-estate-and-associated-protocols-scoring

a. Yes, the selected contractor should assume that IHDA will employ the currently applicable HUD NSPIRE sampling logic.

37. Section C — Re-Inspections and Follow-Up: Basis for Re-Inspection Estimates (This was asked live at Pre-Bid Conference) Is the estimated re-inspection volume (approximately 10 percent) based on historical data, and if so, over what time period?

a. Re-Inspection is to validate that the indicated deficiencies have been corrected. IHDA may request re-inspections on failed developments in lieu of work order acceptance based on property conditions.

38. Section C — Re-Inspections and Follow-Up: Triggers for Physical Re-Inspections Can IHDA provide additional clarity on the circumstances under which a physical re-inspection will be required versus acceptance of work orders?

a. The HOME program requires a re-inspection to verify that Health and Safety deficiencies have been adequately addressed. For other programs, the Physical Inspection Manager may require a re-inspection.

39. Section C — Re-Inspections and Follow-Up: Scope of Re-Inspections (This was asked live at Pre-Bid Conference) When re-inspections are required, will they be limited to previously cited deficiencies, or may the scope expand beyond the original findings?

a. The re-inspections will be limited to previously cited deficiencies.

40. Section D — Work Order Review and Documentation: Work Order Volume Assumptions Does the estimated average of 17 work orders per inspection include resubmissions or revised work orders?

a. No, it does not include work order resubmissions.

41. Section D — Work Order Review and Documentation: Acceptable Work Order Documentation The RFP implies that completed work orders are required from stakeholders. Can IHDA confirm whether other documentation (e.g., photographs, contractor invoices, certifications) may be accepted in certain circumstances in lieu of work orders?

a. No other documentation is acceptable. Work orders must be signed and dated showing the address (unit number), deficiency and a repair statement.

42. Section E — Resident Concerns, Access, and Scheduling: Resident Concern Inspections For resident concern inspections, how many days will vendors have to complete the inspection once a concern is received and deemed justified, and how will vendors be notified of these assignments?

a. The contractor will be expected to contact the resident and schedule an inspection related to a resident’s complaint within three (3) days of receipt from our office. The contractor must submit a response to IHDA regarding the validity of the inspection findings under NSPIRE/UPCS guidelines within two (2) days following completion of the inspection.

43. Section E — Resident Concerns, Access, and Scheduling: Owner Access Issues In cases where owners or agents are nonresponsive or deny access after proper notice, what documentation is required from the vendor, and how will vendor performance be assessed in such circumstances?

a. The contractor is required to send a “fail letter” (Exhibit 2 of the RFP). IHDA will provide letter template.

44. Section E — Resident Concerns, Access, and Scheduling: Scheduling Authority Once inspections are assigned, what level of scheduling flexibility will vendors have to manage access, geography, and efficiency?

a. The contractor will have reasonable flexibility in scheduling. If scheduling conflicts arise, the contractor is encouraged to communicate promptly with our office so we can evaluate alternative dates within the allowable inspection window.

45. Section F — Systems, Reporting, and Performance Oversight: System Outages or Connectivity Issues What is the protocol if system outages or connectivity issues prevent compliance with the 2–3 business day reporting and submission timelines specified in the RFP?

a. The contractor must notify IHDA immediately if there are system outages or connectivity issues. All issues should be resolved within 1 (one) day.

46. Section G — Compliance and Regulatory Responsibilities: Form 8823 Determinations The RFP suggests that vendors may need to determine whether Form 8823 filing thresholds are met for LIHTC projects. Can IHDA confirm whether the formal issuance of Form 8823 notices to stakeholders will remain the responsibility of IHDA?

a. Yes, IHDA will remain in control of the formal issuance of the IRS 8823.

47. In Section A.1 (Scope of Work), the RFP states: “All inspections must be completed by November 30th of each year of the contract.”

Will this requirement remain fixed, or is IHDA willing to adjust the deadline based on the Vendor’s actual start date?

a. No, IHDA is not considering adjusting the end date based on the Vendor’s start date, however the number of inspectable properties will be adjusted in 2026 based upon contract execution. IHDA intends to use the month of December to reconcile all completed inspections in order to produce the list of inspectable properties for the following January. This is subject to the contractor(s) completing the assigned inspections by November 30 to allow for the reconciliation.

48. In Section A.1 (Scope of Work), the RFP states: “7. Other Inspections as Determined by IHDA.”

Can IHDA provide an anticipated minimum–maximum range for the volume of “Other Inspections” that may be assigned under this contract?

a. The estimated other inspections may be 50 to 100.

49. In Section A.1 (Scope of Work), the RFP states: “All inspections will be conducted on tablets provided by the vendor.”

What are the minimum technical specifications or performance requirements for tablets?

a. The tablets will solely be used to run the software InspectCheck. InspectCheck is compatible with Apple and Android devices. The tablets must be running on a current and supported operating system from the device manufacturer. InspectCheck is not supported on Amazon Fire or Microsoft Surface devices.

The vendor will also be required to update IHDA’s other systems of record which may include: DMS, ShareFile, and Monday.Com. These applications will require Microsoft Windows laptop using Windows 11.

Exhibit A:

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