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C.

Phase II · Prototype Construction and Evaluation - Type A Contract
Phase II provides for the construction of prototype units on one or
more regional prototype sites, as may be negotiated, and for testing
and evaluation of the completed housing units and components thereof
in accordance with the testing procedures to be developed and approved.

Inputs - The contractors selected for Phase II contract options will be
furnished the following information.
- Assignment of specific areas within prototype construction sites;

control of land will remain with HUD. Final master planning of
prototype sites, developed from the planning activities during
Phase I and in cooperation with the Contractor.
Modification of evaluation criteria, program schedule and plans for
the subsequent phase, if appropriate.
A summary of the potential housing market by housing type and size,
by region and/or locality.

Products

- Working drawings and specifications for the prototype units for review

and approval by HUD before construction is initiated.

Construction of prototype housing including environmental work as
appropriate to the site being addressed.

Results of tests conducted during Phase II.

Plans for the mass production of housing units in Phase III.
Revised list of waivers required against provisions of the major codes,

listed below, and the draft "Unit Design Criteria."
- A final report including a detailed cost and progress histories of

Phase II work, and other reports and briefings required by the contract. Funding Contract options for Phase II will be negotiated as costreimbursable contracts, with maximum cost limitations.

Title to completed prototype housing units will rest in or be controlled by HUD. Timing Options will be exercised approximately 30 days after final reports have been received on Phase I operations to those contractors selected to proceed to Phase II. The construction period is expected to take approximately twelve months to complete, but individual systems may require more or less time.

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Phase III will consist of the construction of housing in volume, on
individual or group sites, in accordance with contracts to be negotiated
between the contractor and local housing authorities, sponsors, local
governmental units, private developers or others who serve as
of "aggregated market" areas,

representatives

Inputs Regional and local governmental units, in cooperation with
local private developers or sponsors, as appropriate, with HUD assistance
are expected to furnish the following:

- Aggregated markets matched with assembled specific sites.

HUD will use all possible facilities to provide or assist in identification of financing sources for interim and permanent project financing.

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Waivers or variances to local codes, zoning and administrative practices,
pending code amendments, following HUD approval of the housing system
for regional or national application.

Support in obtaining modification in local trade practices.

HUD "blanket approval" of the system for use as appropriate.

Products The private enterprise teams selected by the local and state officials or private developers or sponsors to provide housing in their areas will be expected to provide:

- Designs for specific sites.

Assistance to local groups in making application for financial and
program supports.

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- Production facilities as required to provide housing for the contracted

market.

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- A final report, including detailed cost and progress histories for

each project, to assist the Department in future planning.

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Funding Interim and permanent funding to be obtained by the Contractor from sources developed by the governmental sector or the Contractor. Production facility financing will be obtained by the Contractor. Guarantees and subsidy programs will be provided by HUD statutory provisions.

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The Contractor for a Type B contract shall research, develop and design
Innovative concepts, and provide full documentation of descriptions,
operations, costs, results of tests and evaluation activities. This
contract will contain no option providing for prototype construction.

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The Contractor will be required to provide information and other products listed below, to the extent that these items have been included in the contract:

Sketches and descriptions illustrating the materials, components
and systems which have been developed, including the mechanisms
whereby these elements are incorporated into the total housing package.

Reports on individual tests and evaluations conducted during the
contract period.

Any devices such as models and visual aids which assist in illustrating or demonstrating the innovative and unique features of the material, component or system.

Discussion and evaluation of innovations in land use, processing, financing and other administrative matters which have been developed under the contract.

Periodic and final reports and briefings as outlined below and
required by the contract.

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The Contractor will be required to submit a monthly letter status report; the format and content of this report will be mutually agreed to by the Government and the Contractor during contract negotiations. anticipated that this report will include the following items:

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1.

Major problems and proposed actions for solution.

2.

Technical progress as measured against the established schedule.
Expenditures and commitments, related to expenditure forecasts.

3.

4. Proposed or potential deviations from original plan and program. Status Reviews will be held when deemed necessary and as required by the contract, at the Contractor's place of business or elsewhere as may be decided by the Contractor and the Government.

This review is to provide the Government with an opportunity to review and evaluate the Contractor's performance and progress, and to allow the Contractor to identify problems requiring Government action and to obtain program redirection as may be required.

A final report will be required at the completion of the contract; detailed requirements for this report will be negotiated at the appropriate time in contract award activities.

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The Government will provide information and direction for the planned
effort, including specific program requirements and reporting procedures,
and information on standards and testing procedures. The Government
also expects to develop with the Contractor necessary information to
permit the use of the developed material, component or system in the
production of housing.

E. Funding and Schedule

Contracts for Research and Advanced Development Activities will be costreimbursable or fixed-price contracts, as may be negotiated in each specific instance, The length of these contracts will depend on individual contract requirements:

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Imaginative solutions to the problems inherent in large-scale production of acceptable housing are encouraged. The Proposer is accorded an opportunity for creation of a total living environment utilizing a wide variety of housing types and sizes considering normal design requirements for occupant and public health and safety and with minimum constraints practicable on production and erection. The following criteria and general outline specifications are provided as a guide to the level of quality and performance desired.

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roduction housing may constructed anywhere in the nited States;
design consideration must be given to the site elements listed below
which will vary among locations.

1. Prototype Sites

Approximately eight prototype sites will be selected by HUD and
brought under Government control prior to the realease of the Phase I
design contracts. The prototypes are to serve as test and consumer
acceptance models. Systems selected for prototype construction may
have one or more models of each housing type built on each site
where the climate is appropriate. The number of models and the final
selection of sites will be determined by HUD based on recommendations
by the Proposer as to the number required for proper system evaluation.

While the prototype sites will be identified in the design contracts, the specific areas on the site to be assigned to a particular system will be the subject of negotiation and design integration during Phase I.

Master planning for the prototype sites will be performed during Phase I by cousultants working for HUD in cooperation with the Contractors' planners. Data provided in the proposals, including innovative concerts for the use of land and environment, may be used by HUD in its selection of these planning consultants.

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To permit proper test of housing systems in various climates, the prototype sites will be located to provide the maximum possible climatic variation.

The Proposal is to indicate the climatic region(s) considered as appropriate locations for the proposed system. The proposed system must be designed to withstand conditions of the indicated region (s) including temperatures, humidity, rainfall, wind, hail, and snow accumulation.

3. Geologic and Soil Conditions

Systems are expected to be usable on sites consisting of natural, stable, well drained soils. In addition, proposed construction systems will be evaluated on the degree to which they are adaptable to one or more of the commonly encountered marginal soil conditions. These marginal soil conditions include:

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Special engineering evaluations should be made where critical problems of earthquakes, landslides or sinkholes are potential or known to exist.

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Site topography may vary as follows (note applicability of the proposed system):

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Production sites may be of such size as to constitute single unit lots, small multiple unit lots, and large tracts. The applicability of the proposed system to this range of site sizes or varying densities should be stated.

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Production sites may be situated in urban, suburban, or rural areas, and may be large, open tracts or located between the boundaries of

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