Statement of Work.pdf

US Department of Agriculture (USDA)

Performance Work Statement

Contents Project Title General Information

1.0 Background and Purpose

2.0 Definitions

Contractor Requirements

3.0 Technical Requirements /Tasks

4.0 Deliverable / Schedule

5.0 Government Furnished

6.0 Travel

8.0 Security Requirements

9.0 Data Rights

10.0 Section 508 - Electronic and Information Technology Standards

11.0 Quality Assurance Surveillance Plan (QASP)

1. Contracting Officer (CO)

2. Contract Specialist (CS)

3. Quality Assurance Examiner (QAE) A. Submission of Deliverables B. Inspection of Deliverables /Submission of Revisions C. Performance Requirements Summary

Attachment

Project Title Design Physical Inspection Pilot Program to Test Validity of New Inspection Protocol

General Information

1.0 Background and Purpose

A. Background.

The Multifamily Asset Management Division of USDA’s Rural Housing Agency (the “Agency”) seeks to procure the services of a contractor/consultant to design a physical inspection pilot program that will allow the Agency to test and validate the reliability and effectiveness of a new physical inspection protocol.

The current physical inspection performance standards are found at 7 CFR 3560.103(a)(3)).

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. The performance standards have been incorporated into a physical inspection assessment form RD 3560-11. Within the last three years the Agency used this form to develop an application so that the results of an inspection can be directly uploaded to RD’s Multi-family Integrated System (MIFIS). The standards include the following major categories:

• Standards that apply to the site on which the project is located.

• Standards that apply to the exterior maintenance of the building and of the common areas.

• Standards that apply to the interior of the building or buildings; and

• Standards that apply to common areas, such as hallways or elevators.

The Agency currently performs two types of monitoring reviews to ensure that borrowers are meeting these standards.

Supervisory Visit Inspection (SMV) Supervisory Visits must be conducted at least once every 3 years. The triennial Supervisory Visit is the Agency’s primary tool to complete in-depth analysis of the Borrower’s operations including a management Plan/Agreement review, an occupancy review, and a full physical condition and maintenance review.

Annual Physical Inspection (AI) The Agency may schedule an annual inspection at any time if warranted. However, Annual inspections are required for all properties with outstanding physical findings unless a full physical inspection and supervisory visit are due.

B. Purpose

The Agency seeks to procure the services of a contractor/consultant to design a physical inspection pilot that will allow the Agency to test and validate the reliability and effectiveness of a new physical inspection protocol. The new physical inspection protocol is based on the industry standard in use by Fannie Mae (see Fannie Mae Inspection Guide and the MBA Reference Guide: Commercial and Multifamily Property Inspection Reports) and uses the standard MBA inspection form 3.03 (attached.) Although this protocol has been proven to produce accurate, consistent results in multifamily commercial properties in mainly 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. The physical inspection pilot program plan must:

• Verify that the current USDA property standard found at 7 CFR 3560.103(a)(3)) is covered by the MBA inspection form and the inspection procedures described in the completed pilot plan by completing a crosswalk matching data fields that will be completed on the MBA form 3.03 and the data fields in RD’s current Multifamily (Information System (MFIS) to determine what, if any, data fields must be added to MIFIS to capture the data on the MBA Form 3.03.

• The plan must determine how many inspections must be performed to validate the efficacy of the new protocol and provide justification for how that number was determined, e.g., Must individual projects be inspected more than once in the pilot to verify the accuracy of inspection results produced by different third party inspectors?

• The plan must specify the appropriate mix of properties that should be inspected to validate the efficacy of the new protocol and provide justification for how that mix was determined, e.g., Should properties from all four of the Agency’s regions be included in the pilot or could the mix be restricted to one or two regions?

• The plan must provide guidelines for government or contractor administration and management of all aspects of the pilot program for easy setup and implementation.

• The plan should include any tools or forms that would be used in the administration and management of the pilot program.

• The plan must provide an estimated cost of performing an inspection.

• The pilot implementation and evaluation plan must allow the Agency or a contractor to conduct and evaluate the pilot inspection program from start to finish. The plan must answer the following questions:

o How long will it take to implement the pilot and validate the protocol?

o Should the Agency conduct the pilot or use the services of a contractor? Cover the pros and cons of each.

o Explain how the evaluation methodology and plan will determine the efficacy of the new protocol for the Agency’s portfolio.

• The plan must include a system of quality control that ensures that contractors are performing accurate, objective and consistent inspections using the new inspection protocol standard.

• Survey the Agency’s current data systems and determine the most efficient way to get reports to the appropriate Loan Servicer, where to store the reports and the most efficient way to compile and aggregate data from the inspection reports.

2.0 Definitions

Annual Physical Inspection (AI) - Annual inspections are required for all properties with outstanding physical findings unless a full physical inspection and supervisory visit are due.

Federal National Mortgage Association (FNMA) or (Fannie Mae) - a government-sponsored enterprise (GSE) founded in 1938 by Congress as part of the New Deal. It was established to stimulate the housing market by making more mortgages available to moderate- to low-income borrowers. Fannie Mae does not originate or provide mortgages to borrowers. But it does purchase and guarantee them through the secondary mortgage market.

Mortgage Bankers’ Association (MBA) - The Mortgage Bankers Association (MBA) is the national association that represents the real estate finance industry. It is a member-based nonprofit organization.

Multifamily Information System (MFIS) - the Multi-Family Information System (MFIS), or the Multi-Family Integrated System, assists staff in administering the Agency’s Multi-Family Housing (MFH) program, which provides direct and guaranteed loans and grants to finance rental and cooperatively owned housing for very low, low, and moderate-income households and to finance the construction of farm labor housing. The program also provides rental assistance to qualified tenants. MFIS is an online transaction entry and inquiry support system that provides monitoring, scheduling, and analytical tools to manage and supervise loans, grants, and subsidies.

Rural Development Agency (RDA) – The United States Department of Agriculture’s (USDA) Rural Development Agency is committed to helping improve the economy and quality of life in rural America. The Rural Housing Service within RDA offers a variety of programs to build or https://www.investopedia.com/terms/r/realestate.asp https://www.investopedia.com/terms/n/non-profitorganization.asp improve housing and essential community facilities in rural areas. It offers loans, grants and loan guarantees for single- and multi-family housing, housing for farm laborers and much more.

Supervisory Visit Inspection (SVI) - The triennial Supervisory Visit is the Agency’s primary tool to complete in-depth analysis of the Borrower’s operations including a management Plan/Agreement review, an occupancy review, and a full physical condition and maintenance review. Supervisory Visits must be conducted at least once every 3 years.

United States Department of Agriculture (USDA) – The USDA provides leadership on food, agriculture, natural resources, rural development, nutrition, and related issues based on public policy, the best available science, and effective management.

Contractor Requirements

3.0 Technical Requirements /Tasks

The following qualifications must be met to be considered for a contract award:

• The Contractor shall have experience designing pilot programs that test the proof of concept of adopting new policies or protocols.

4.0 Deliverable / Schedule

Key Deliverables Item No.

Deliverable Objective Due

1 Proposed Project Plan/Schedule

Defining the responsibilities, timeline, risks and milestones of contract objectives.

No later than five (5) business days after contract award

2 Weekly Status Reports

Report documenting tasks & issues weekly.

Weekly, every Friday, by 3:00 PM EDST until the contract expires.

3 Bi-weekly teleconference call to discuss progress, challenges/issues faced.

Discuss progress and any challenges or issues that may arise during completion of the contract.

Bi-weekly at a time agreed on by both parties. Calls will begin two weeks after delivery of the Project Plan/Schedule until the end of the contract.

4 Monthly Status Report

Monthly report documenting tasks and issues identified during the month

Once per month by 3:00 PM EDST on the last Friday of the month until the end of the contract.

5 Draft crosswalk matching MBA data fields with data fields in RD Form.

The draft crosswalk will verify that the current USDA property standard found at 7 CFR 3560.103(a)(3)) is covered by the MBA inspection form and the inspection procedures described in the completed pilot plan. This will be used to determine (MFIS) to determine what, if any, data fields must be added to MIFIS to capture the data on the MBA Form 3.03.

On or within 45-days after contract award.

6 Final crosswalk matching MBA data fields with data fields in RD Form.

The final crosswalk will Verify that the current USDA property standard found at 7 CFR 3560.103(a)(3)) is covered by the MBA inspection form and the inspection procedures described in the completed pilot plan. This will be used to determine (MFIS) to determine what, if any, data fields must be added to MIFIS to capture the data on the MBA Form 3.03.

60-days from contract award

7 Survey the Agency’s current data systems

Survey the Agency’s current data systems and determine the most efficient way to get reports to the appropriate Loan Servicer, where to store the reports and the most efficient way to compile and aggregate data from the inspection reports.

Delivered within 1-month of contract award date.

8 Draft Pilot Program Implementation Plan

Draft of Plan providing guidance on how to implement an inspection pilot program that will verify whether the MBA form 3.0 and Fannie Mae rating system will

Delivered within 4 -months of contract award date.

produce accurate, consistent and objective inspection results of federally assisted housing in rural areas. The plan must include the following:

• Section on how many inspections must be performed to validate result.

• Section specifying appropriate mix of property types for validation on protocol.

• Guidelines for government or contractor to administer and manage pilot.

• Section on estimated cost of an average inspection and methodology used to arrive at estimate.

• Estimate on timeline needed to conduct and evaluate the pilot program.

• Section on methodology used to validate whether new protocol will produce accurate, replicable, and objective inspections of federally assisted projects in rural areas.

• Any other sections the contractor feels necessary to produce proof of concept.

9 Final Pilot Program Implementation Plan

Final Plan providing guidance on how to implement an inspection pilot program that will verify whether the MBA form 3.0 and Fannie Mae rating system will produce accurate, consistent, and objective inspection results of federally assisted housing in rural areas. The final plan must include all sections specified in item 7.

Delivered 5-months of project award.

5.0 Government Furnished

• No government furnished support, data, property, or facilities will be needed for this project.

6.0 Travel

• No travel will be required for this project.

7.0 Contractor’s Key Personnel

• N/A

8.0 Security Requirements

• No Security Requirements are needed for this contract.

9.0 Data Rights

• All data and deliverables will be the property of the US government.

10.0 Section 508 - Electronic and Information Technology Standards

• This Section is not applicable to this project.

11.0 Quality Assurance Surveillance Plan (QASP)

Background

This Quality Assurance Surveillance Plan (QASP) has been developed to describe how government personnel will evaluate and assess contractor performance for Multi- Medi a Design and Production Services.

Under this contract, the Government will establish and maintain a quality assurance program in accordance with FAR 52.246-4 " INSPECTION OF SERVICES - FIXED PRICE" clause and the provisions of this contract. This QASP describes the surveillance and inspection plan for the quality assurance program. Deductions for non-per formed or non-conforming services will be conducted in accordance with the Performance Requirements Summary (PRS) and the Inspect ion of Services clause.

Roles and Responsibilities

1. Contracting Officer (CO) The CO has authority to contractually bind the Government. The CO signs contract awards and modifications. The CO shall appoint qualified QAEs for the inspection and acceptance of services under the contract. The CO will resolve any disputes between the QAE and the Contractor.

2. Contract Specialist (CS)

The CS performs day to day administration of the contract, including, but not limited to, preparation of the contract modifications and correspondence. S/ he advises the CO on FAR, AGAR , and related regulations. S/ he reviews the QAE's monthly contract evaluation and advises the CO of the appropriate course(s) of action. The CS reviews contractor invoices after the QAE verification and ensures it is processed within time frames established to meet the intent of the Prompt Payment Act.

3. Quality Assurance Examiner (QAE)

The QAE is appointed by the CO and represents the CO during inspection and acceptance. The Contracting Officer's Representative (COR), Contracting Specialist (CS), or evaluators appointed by the CO will conduct the quality assurance activities and follow the methods of surveillance specified in this contract and the QASP.

Surveillance Activities and Performance Requirement

A. Submission of Deliverables The contractor is expected to provide deliverables to the COR. The completion dates are defined below. Deliverables are expected to be submitted by the completion date.

An extension to the deadline may be requested in writing by the contractor prior to the deadline.

B. Inspection of Deliverables /Submission of Revisions

Once the deliverables are received by the QAE, they will be inspected for quality assurance. Per the terms of the contract, revisions may or may not be required for the deliverable to be determined successful or complete. If revisions are necessary, the OAE will inform the contractor in writing. After receipt of the expected revisions the contractor will have 72 hours to return the deliverable for f ollow-up inspection, unless a later estimated completion date is determined necessary. Once the QAE determines the deliverable is fully successful, they will notify the contractor in writing. If the QAE does not notify the contractor within one (I) week, the contractor may move forward as if the deliverable was fully successful, unless they receive correspondence stating otherwise .

C. Performance Requirements Summary

The contractor is expected to meet the deliverable deadlines. If the contractor anticipates a delay, they may request an extension not to exceed 72 hours for deliverables and revisions. All communication and confirmation of extensions must be in writing.

Performance Objective

Required Task or Deliverable

Performance Standard

Method of Surveillance

PWS Item 1 - Proposed Project Plan/Schedule

Plan Defining the responsibilities, timeline, risks and milestones of contract objectives

Delivered within 5-days of contract award

Review Proposed Project Plan/Schedule and provide feedback within 5 business days

PWS Item 2 – Weekly Status Reports

Weekly Reports documenting tasks & issues weekly.

Delivered weekly, every Friday, by 3:00 PM EDST until the contract expires.

Review weekly status reports and provide repose within 5-business days.

PWS Item 3 – Bi-weekly teleconference call to discuss progress, challenges/issues faced.

Discuss progress and challenges or issues that may arise during completion of the contract.

All bi-weekly calls held on schedule or re-scheduled to a time convenient to both the government and the contractor.

All bi-weekly calls completed.

PWS Item 4 – Monthly Status Reports

Monthly report documenting tasks and issues identified during the month

All monthly status reports received by

3:00 PM EDST

on the last Friday of the month until the end of the contract.

Review and respond if needed within 5 days business.

PWS Item 5 – Draft crosswalk matching MBA data fields with

Draft Crosswalk to determine if new fields are required in MFIS data system

Draft crosswalk delivered on or before 30-days after contract award.

Review and provide feedback within 10 business days after delivery.

data fields in RD Form.

PWS Item 6 – Final crosswalk matching MBA data fields with data fields in RD Form.

Crosswalk to determine if new fields are required in MFIS data system

Final crosswalk delivered 10-days after receiving government feedback on draft crosswalk.

Provide notice of receipt and approval within 5 business days of receipt.

PWS Item 7 - Survey the Agency’s current data systems.

Determine the most efficient way to get reports to the appropriate Loan Servicer, where to store the reports and the most efficient way to compile and aggregate data from the inspection reports – 4 months from award date.

Review and provide feedback within 10 business days.

PWS Item 8 – Draft Pilot Program Implementation Plan

Draft of Plan providing guidance on implementation of inspection pilot program.

Draft Plan provided within 3-months of award date.

Provide feedback and comment on draft within 10 business days of receipt.

PWS Item 9 – Final Pilot Program Implementation Plan

Final Plan providing guidance on implementation of inspection pilot program

Final Plan delivered within 5-months of contract award.

Provide feedback and acknowledgement of completion days of receipt.

PWS Items 1-9 All deliverables delivered on time and within contract award cost.

All deliverables delivered on time and within contract award cost.

Final Plan delivered within 5-months and within cost.

Provide feedback and acknowledgement of completion days of receipt.

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