Sealed Bid - HVAC/Electrical

Housing Authority of the City of Arkadelphia
670 South 6th Street
Arkadelphia, AR 71923
(870) 246-4632 Fax (870) 246-3202

The Housing Authority of the City of Arkadelphia (AHA), Arkansas hereinafter called PHA, will receive bids at 670 S. 6th Street, Arkadelphia, Arkansas 71923 until April 10, 2023, at 2:00 p.m.
CST. This scope of work shall include the Capital Fund Improvements for the Carpenter Hill
development, at which time all submissions to this Invitation for Bids will be opened and read aloud. A pre-bid walkthrough will be held on Thursday, March 22, 2023, at 10:00 a.m. CST at 670 S. 6th Street. The scope of work shall include the installation of eight (8) HVAC Units,
Electrical Upgrades to 200 AMP Service, these upgrades will support new ranges and HTP Lifetime Water Heaters. The contractor shall replace any and all drywall associated with the
installation of these upgrades.
Any bid received after the closing time will be returned unopened. Copies of bidding documents
may be obtained by calling the PHA at (870) 246-4632. To obtain a copy from our office in
person, go to 670 South 6th Street Arkadelphia, Arkansas 71923. Additional information can be found online at https://www.housingarkadelphia.org.
All bids must be signed and submitted on forms furnished by PHA, in a sealed envelope plainly marked to show the name and address of the bidder, contract job and date and time of the bid opening.
Bidders are required to have an Arkansas contractor's license. The successful bidder shall be required to furnish in Arkansas performance and payment bond in the amount of 100% of the
contract amount. Each bid submitted must contain the following items:
1. A bid guarantee is an amount equal to 5% of the bid. The bid guarantee can be in the
form of a certified check or cashier's check made payable to the PHA; a satisfactory bid
Bond executed by the bidder.
2. A HUD-5369-A Representation, Certifications, and other statements of the bidders.
3. A Non-Collusive Affidavit.
4. A Bid Form, signed by the bidder.
The PHA reserves the right to reject any or all bids or to waive any informality in the bidding.
No bid shall be withdrawn for a period of sixty (60) days and subsequent to the opening of the
bids without the consent of the PHA. Section 3 contractors are welcome and encouraged to bid.
The Housing Authority of the City of Arkadelphia, Arkansas
Dr. Nadine Jarmon, Executive Director

SCOPE OF WORK
Install HVAC units for 8 Apartments located at Carpenter Hill
Electrical upgrades to 200 AMP service
Installation of HTP lifetime tank water heaters
Drywall repair and replace.
Electrical drops
● Electricians will make necessary drop for the water heater.
● Electricians will make a necessary drop for cook stoves.
● Electricians will make a necessary drop for HVAC.
Sheetrock Replacement
● Repair and replace any areas that might have to be removed for installation of new
Services of duct wiring etc,.
● Refinish and paint all areas as necessary to match the existing locations
● Paint in Sherwin-Williams cashmere color will be available in medium luster.
Water heater
● Remove the gas water heater.
● Cap off all gas lines
● install new electric HTP 52-gallon water heater to code
SCOPE OFWORK
Heating, Ventilating and Air Condition
● Contractor shell Supply New 2-ton 2-stage heat pump, with 15 Seer air condition, and all
parts that are needed to complete the job.
● Contractor will remove all gas furnaces (furnace shall remain the property of AHA).
AHA maintenance shall remove old furnaces from grounds.
● Scope of work includes every item of labor, materials, devices and appurtenances for
replacing existing heating units and providing the duct system is necessary for the
uniform air distribution.
● All work under this heading shall be executed in strict accordance with laws, regulations,
and ordinance of national, state and local.
● None of the terms are provisions of the specifications shall be construed as waving or
canceling any rules, regulations or requirements of the above authorities.
● All exposed rotating Machinery is equipped with guards.
● All compressors and outdoor coils should have a ten (10) year factory warranty. All other
functional parts including thermostat shall have a five (5) year factory warranty.
● All units will be a 2-ton 15 Seer 2-stage heat pump.
SHEETMETAL (LOWPRESSURE)
● This contractor shall furnish and completely erect and install all supply, return, exhaust,
outside are, etc. as necessary to complete the systems. All metal ducts shall be fabricated
of galvanized copper bearing steel sheets of Tennessee Coal and Iron Company,
American Rolling Mills or approved equal manufacturer.
● All ductworks can be fabricated and erected in accordance with the following
recommendations of ASI-IREA Guide for Low Pressure Duct.
Filters
● After the project is completed, remove filters from furnaces and or grills, clean and install
Clean new filters.
Refrigerant pipe
● Installed by mechanics killed in this type of work, Type "L" ACR copper tubing, clean,
and ride with nitrogen at the factory, assembled with wrought copper fitting for
refrigeration use. Make a solder joint with Sil-FOS backed with nitrogen. Refrigeration
piping and specialties to be sized and must be isolated to prevent transmitting equipment vibration to any part of the structure. After systems have been proven tight, entire systems, including condensing unit and coil, shall be evacuated to 500 microns of
mercury and held for 24 hours; then apply full charge of Puron and lubricating oil. Each
system shall include drier, strainer, sight glass, and expansion valves. Vacuum must be measured with a vacuum gauge that can be read accurately below 500 microns.
Temperature controls
● Furnish all labor, materials equipment and services necessary for proper installation and
operation of an electrical system control. This contractor shall be responsible for all control wiring. Furnish complete wiring diagram showing all interlock wiring in addition to temperature control wiring diagrams. Wiring to be color coded and installed in
accordance with NEC.
● Upon completion of work the contractor shall instruct operating personnel in the use of
automatic control systems.
Balancing And Adjusting
● All systems should be balanced and adjusted to the satisfaction of AHA. Deliver balance
data to the AHA for approval. Include the following items:
1. Adjust all fan belts to the proper tension.
2. Check all motors and patches and set speed to avoid overloading.
3. This contract shall have all Air systems balance to provide performance
specified.
4. Check all systems for noise and vibration which may be objectionable.
5. After you are satisfied that all systems may be acceptable to AHA, call for an
inspection.
6. Systems will not be accepted until properly balanced.
7. Tabulate data showing all motor nameplate amps, initial, middle and final amp
readings specified CFMS; initial, middle and final CFM reading. Deliver to AHA
Air Systems Balancing Procedures
1. Open all volume control, shut doors with door grilles, insert clean filters and set
outside air and return air dampers.
2. Set pattern for side wall grilles.
3. Set deflectors, velocitrols and other devices at takeoff for uniform flow through registers and diffusers.
4. Make preliminary settings on splitters.
5. Take first reading on all devices. Do not adjust as you do.
6. Analyze reading, total CFM, high and low CFM red, ATC.
7. Make adjustments on splitter ER and fan speed if necessary.
8. Take a second set of complete readings. Again, do not adjust
9. Analyze readings and make corrective adjustments on splitters and volume control.
10. Take a third set of readings and force if necessary.

Notes:
A. Outside air quality and duct leakage can be judged by subtracting total air readings from
total of Supply readings.
B. Try to do as much balancing wood splitters as possible and use volume controls on grills and diffusers to trim.
C. Use a velocity measuring device, such as Alnor velometer, which will give instantaneous velocity readings.
D. Check average on fan motor and fan speed changes.
SCOPE OFWORK
Electrical
● The contractor will supply new outside the 200-amp box, inside the 200-amp box.
Contractor shall supply all labor, wire and breakers for new boxes. Both inside and
outside boxes should have a 200-amp disconnect. All old boxes and wire shall remain the
property of aha. Contract will make a new drop for AC units, stove, and water heater on the inside. Contractor will also make necessary drops for the outside unit.
Conduit;
Galvanized rigid steel conduit may be used for underground or import concrete and shall be used
in all electrically hazardous locations. 3/4-inch shall be the minimum size conduit allowed.
Rigid nonmetallic conduit may be used for service entrance, feeders, and Branch circuits with the
following specifications requirement.
● conduit will be schedule 80 PVC
● PVC shall not be used in suspended floor slabs
● A grounding conductor shall be provided in each conduit. Conduit shall not be used as a grounding conductor.
Conduit Elbows and Coupling.
● NM wiring may be used in the interior of residential apartment buildings. Wiring shall be in compliance with NEC and any local / state requirements.
Conduit shall be installed as shown below:
● Rigid conduit-article. 46, NEC
● EMT-article 348, NEC
● Rigid nonmetallic-article 347, NEC
● NM article 336, NEC
● Conduit system shall be continuous from Outlet to outlet, from Outlet to cabins and pull
or junction boxes. They shall be rigid steel, electrical metallic tubing (EMT), Ridgid nonmetallic polyvinyl (PVC), or polyvinyl chloride coded Ridgid electrical conduit as
specified herein. Lock nut bushings shall secure the system in such a way as to be electronically continuous throughout. Conduit and shall be caps to prevent entrance of
foreign materials during construction.
● Conduit shall be run parallel to building lines and long sweeps bends shall be utilized.
● If no.4 or larger conductors enter a cabinet, pull box, junction box or auxiliary gutter, the
conductors shall be protected by a bushing. Also on all conduit one and one-fourth (1 ¼)
and larger, install bushing shall be utilized.
● Ropes shall be installed in an empty or spare can do is to facilitate the pulling of future
conductors. The contractors shall provide sleeve and insert, correctly located in the structure, as required for his or her work.
● Insert shall be steel and of proper size for loads encountered.
● Equipment shall be installed in accordance with manufacturer recommendations to form with the details and applications indicated.
● Provide necessary support for all equipment and appurtenances as required. This include but are not limited to, frames or supports for items such as transformers, fans, electrical panels and other similar items requiring supports, floor-mounted equipment shall be set
on a 4' high concrete housekeeping pad.
Trenching
● Whichever possible, all exterior below voltage conduit and wire system shall be installed
with a minimum of 24 in of cover, unless you tell me otherwise. Banks of trenches shall
be kept vertical as practical, and where required, shall be properly seated and braced.
Rock shall be Excavated to a minimum depth of 4 inches below trench depth specified period over depth Shall be backfilled with loose moistened and thoroughly can't. Any water accumulated in the trench shall be removed by pumping before back feeling commences.
● Trenches shall be backfilled with excavated material approved for back feeling or other
materials free from large clods of Earth or stone, deposit it in Thoroughly and carefully compacted 6 in layers, until the conductor / conduit has cover of not less than 18 in. The remainder of the material shall be back field into the trench, more sense and tamped and 12 in layers.
● Existing utility lines to be retained, whether known or uncovered during excavation
operations shall be protected from damage during operation, shall be protected from damage during excavation and back feeling and, if damaged it shall be restored to original condition.
● Power wires and connectors
● All wire and cable should meet the requirements of the latest edition of the national
electrical code (NEC) and shall be soft drawn copper unless otherwise noted. Wire & cable shall be new and permanently marked with size, grade of insulation, voltage a
manufacturer's name on outer covering at regular intervals. Each conductor and the natural conductor Shall be factors color coded with a separate color for each, the color code indicated below shall be used consistently throughout the electrical system installation, unless otherwise specified
● Phase 240V Black, Red, Blue, White, and Green
● Type THWN or THNN wire shall be installed and raceways above grade in permanent
dry location
● Location type THW or THWN wire should be used, and raceways exposed to moisture,
in concrete slabs on feel or below grade.
● Type NM cabling may be used in the residential apartment building only. Cable shall be
installed in a manner that meets all NEC requirements.
● Connectors for branch-circuit number 10 AWG and smaller shall be tapered spiral wound
square spring with a hard insulating cover, commonly referred to as "wire nuts". The skirt
on the insulated covers shall be of a size and designed to prevent exposure of any bear
conductor when properly installed.
● Connectors on circuits with copper conductor conductors larger than 10 AWG Shall be
power cable compression type, hex screw or both plant type. Connector shall be highly
conductive and corrosion resistant material. Apply corrosion inhibitors such as Penetrex
to connections for aluminum conductors.
● Connections for cable size is 250 kcmil and larger should not have less than two
clamping elements are compression indent.
● Splices and Joint shall be insulated with material approved for the particular use,
location, voltage and temperature.
● All Cable shall be continuous from original to panel or equipment termination without
running splices unless otherwise specified.
● No more than three circuits shall be contained in each home 4 branch circuit.
● Wraparound labels with numbering designation shall mark control wiring in each box and
in each termination.
● The contractor shall use due care to prevent damage to the conductor and insulation
during installation. Conductors should not be installed in conduit or Raceway until the
Raceway system is complete.
ELECTRICAL
● The wiring devices shall be specification grade.
● Products from the following manufacturers have been determined to be acceptable.
○ General Electric
○ Hubble
○ Pass & Seymour
○ Bryant
○ Leviton
● Provide wiring devices of the type, color and electrical rating for the service has indicated
● The types of electrical wiring devices require for the project include the following;
○ Receptacles
○ general duty duplex: duplex general duty type receptacles shall be 2 poles, 3 wire
grounding with green hexagon equipment ground screw, Ground Terminal
internally connected to mounting yoke, 20 a, 125 volts and metal plastic ears, side
wiring only, NEM a configuration 5-20 or unless and except where otherwise
indicated. All receptacles shall be ivory-colored.
○ Weatherproof receptacles: weatherproof receptacle Shaw consists of the
receptacle type indicated mounted in a box with a gasketed, weatherproof, cast
metal cover plate in separate cap over the receptacle opening. The Caps shall be
permanently attached to the cover plate by a spring hinge flap. The waterproof
Integrity shall not be affected when heavy duty specification attachment plugs are
inserted. Cover plates on our plate boxes mounted flush in the wall Shall be
gasket it to the wall and it watertight Manor.
○ GFCI receptacles: ground-fault interrupter receptacle shall be fed through type
capable of protecting connected downstream receptacles on a single circuit, Ivory,
grounding type, UL rated Class A, Group 20 ampere rating, 125 volt with solidstate
ground-fault sensing and signaling, with a 5 milliampere ground fault trip
level, equipped with 20 ampere plug configuration, NEMA 5-20r.
○ Stove receptacles: stove receptacle 50 amp, 125 / 250 volt, NEMA 14-50r 3p, 4w
flush mount, straight blade, industrial grade, side wire.
○ Testing wiring devices to ensure electrical continuity of grounding connection,
after energizing circuitry, demonstrate compliance with requirements of the
project. Test each receptacle for proper polarization and ground continuity.
Air Conditioning disconnects.
● The contractor shall furnish and install all disconnects.
● The following manufactures are approved on this project.
1. Square D
2. Cutler-Hammer
3. Provision specified in this section
4. Manufacturing workmanship and materials shall comply with applicable
provisions of NEMA, ANSI, ICEA and UL standards.
5. Electrical equipment shall be UL-listed and comply with UL standards in all cases
where UL has published a list and standards applicable to the type of equipment
required to be provided.
● Ground Rods
1. UL listed copper bond is still, 3/4-inch diameter by 10 ft long.
ACCEPTABLEMANUFACTURERS
A.) Blackburn, St Louis, Missouri
B.) Carolina Galvanizing, Aberdeen, North Carolina
C) Knight Metalcraft, Portland, Tennessee
● Grounding Electrode Cable
1. Bare stranded soft temper copper, ASTM 83. Cable to be sized per National
Electrical Code requirements.
● Ground Conductors
1. Size equipment grounding conductors as with accordance with NFPA 70, NEC
table 250-94 and 250-95
2. HW insulated copper ASPM B3
3. Conductors # 10 AWG and smaller; Solid
4. Conductor # 8 AWG and larger: concentric stranded
5. Color Coded: Equipment grounds shall have green color insulation or green tape
band at the end of the conductors.
● Ground Connections
1. All conductor to conductor, conductor to ground rod and conductors are structure
connections of # 6 AWG and larger size conductors shall be permanent Cadweld
exothermic welded connections. Ground conductor splice with a CADWELD
exothermic weld a connection shall be considered as a continuous conductor. All
grounding connections to equipment show used bolted tugs. When the conductor
is #6 or larger, the lug shall be joined to the conductor by Cadwell exothermic
process.
2. All connections of # 8 and smaller and all connections to conduit, equipment or
other items where grounded conductors must be removable shall be using
mechanical connections.
3. All mechanical ground connectors shall be UL-listed and shall be certified to
have been tested to and passing IEEE STD 837- 1989 for both above ground and
below grade installations. If not certified to IEEE Std 837-1989, the conductor
shall be sized using the fusing formula in IEEE Std 80-1986.
● ACCEPTABLEMANUFACTURERS:
a) AMP Inc. Harrisburg, Pennsylvania
b) Burdy Corp. Norwalk, Connecticut
c) ERICO Products, Inc. Cleveland, Ohio
d) T & B Corp. Bridgewater, NJ
1. Provide positive grounding of AC systems neutrals, electrical equipment
enclosures and conductor enclosure systems (conduit, wireways. Etc) at the main
disconnect device. Provide an effective permanent and continuous ground path for
conduits, equipment, and conductor closures. The grounding path must have the
capacity to conduct safely fault current likely to be imposed on it, which shall
have sufficiently low impedance to limit voltage to ground and to facilitate
operation of circuit protective devices in the circuit. Clean all contact surfaces to
which ground connections are to be made. Remove non-conductive coating such
as paint, lacquer and oil film from threads and other contact surfaces to assure
electrical connections and continuity. Make connections to ensure a permanent
ineffective electrical connection. Make connection to equipment and Equipment
enclosures with terminal love welded to the conductor with the CADWELD
Process.
● Grounding Electrode Systems
1. A metal underground pipe in direct contact with the earth for 10 feet or more. The
electrical path shall not contain any insulated joints.
2. All Man-Made Electrodes shall be free of paint varnish and other non-conductive
coatings. When more than one electrode is used, each Electro shall be at least 10
feet from any electrode of another sub-system. Further, all sub-system Electrode
shall be bonded together.
3. Metal gas piping systems shall not be used as a grounding electrode.
● Equipment and enclosing grounding systems.
1. Make mechanical connections and couplings on metal conduit systems and
enclosures wrench tight. On metallic conduit for circus rated 100 amperes and
higher, install grounding bushing a switchboard grounding lug or the next
grounding bushing in the pull box. Use continuous copper conductor size in
accordance with NEC table 250-95. Install green insulated equipment ground
wire sizing in accordance with any see table 250-95. On circuits over 250 volts to
ground, install ground bushings where metal conductors enter enclosure through
concentric, eccentric or oversized knockout in accordance with any see table 250-
95 to enclosure ground point and adjacent grounding bushings.
2. The contractor shall perform a test of the grounding network after it has been
installed and before any equipment has been placed into operations. The
resistance between absolute earth and the ground Electrode shall not exceed 25.0
ohms. The Electrical Contractor shall be responsible for installing two additional
10 foot driven grounding rods within 50 feet of the transformer pad if the test
results exceed 25.0 ohms. This shall include the necessary grounding electrode
conductor.
● The contractor may provide a like product upon approval of the agency. The product
must be equal to or superior to any product as shown in this specification.
General conditions for working with AHA.
It is a responsibility of the contractor to fully inform all employees of all information in this
document.
BID PACKAGE REQUIREMENTS
● Big package requirements for bid packages $1.00 - $19,000.00. Failure to include
these items will result in the bid being deemed non-responsive and may be
rejected.
○ A sign bid on current company letterhead.
○ A non-collusive affidavit, which must be notarized.
○ Acknowledgement of HUD form EZ 5370. That acknowledgment can be made by
signing the form itself and submitting it in the package, writing on the bid that the
form is acknowledged, or a separate sheet in the bid package acknowledging the
form
○ The agent, phone number, and policy number of each type of insurance required
by AHA.
● Big package requirements for bid packages over $20,000. Failure to include these
items will result in the bid being deemed non-responsive and may be rejected.
○ The general contractor is responsible for all rules and regulations concerning the
bidding process and the Arkansas State Contractor License.
○ A signed bid on current company letterhead or the bid form in the package.
○ The Agent, phone number, and policy number of each type of insurance required
by AHA.
○ A current State of Arkansas Contractor License with number listed on the
envelope. The general contractors or subcontractors must have valid state
certifications / licenses for each trade at time of bid opening.
○ A signed HUD 5369 - A form
○ A payment and performance bond
○ A non-collusion affidavit, which must be notarized
○ The contractor is to list all subcontractors and address and their Arkansas state
Contractor's License number with the bid documents.
○ If the subcontractor portion of a project is over $20,000 the general contractor
must provide a copy of the current subcontractor State of Arkansas Contractor
License at contract signing.
○ AHA has the right to refuse any subcontractor listed as a part of the project.
● All bids are to be delivered in a sealed envelope by stated bid time. Any bid submitted
that is not in a sealed envelope or received later than the stated bid time will be rejected.
● All state of Arkansas and HUD procurement regulations will guide any project with AHA.
● AHA has the right to refuse any employee of the general or subcontractor from working
on any PHA project.
● Pay request/invoices are to be submitted to the office by noon on Wednesday. The pay
request is to be submitted by the contractor on an invoice with company letterhead or
one of the AHA pay request forms. If a pay request is submitted later than noon on
Wednesday, it will be held into the next week and a check will be processed in the next
week payable. NO EXCEPTIONS! AHA does reserve the right to function on a 30-day
payment schedule. DO NOT call the office and ask personnel to submit a pay request for
you because it will not happen. Each contractor is responsible to submit their own
invoices for work completed.
● All change orders are to be submitted in writing showing the actual labor and material
cost with a 10% profit and a 10% overhead allowed. Copies of quotes for materials must
be submitted with the change order request.
● The contractor is responsible for a complete bid package of labor, and materials, tools
equipment, etc.
● The contractor is responsible for All city/state permits, inspections, licenses and fees.
● All work shall be done between 8:00 a.m. and 4:30 p.m. on weekdays. No weekend or
holiday work shall be permitted.
● The contractor is responsible for removing all the debris and cleaning of the area on a
daily basis. Contractor is responsible for disposal. The AHA dumpster is not for
contractor use.
● The contractor is responsible for all site verifications of units, locations, scope of work,
field conditions, etc.
● The contractor is to provide submittals of all materials for approval before any work
begins.
● All labor rates are to be in accordance with the Davis-Bacon Wage rates. Employee
interviews will be conducted to ensure the Davis-Bacon Wage rates are being paid.
● Any projects over $2,000 must have certified payrolls. The contractor must submit
the applicable certified payrolls with each pay request. A pay request will not be
processed without the certified payrolls.
● The contractor is responsible for all safety aspects of the project.
● All work is to be done in accordance with the city of Arkadelphia building standards.
● The contractor is responsible for all Line locations, marking, calls, and scheduling of
calls for line location. The contractor shall provide the AHA office with a confirmation
number for each line location call.
● Any water that has to be shut off, must be done between 8:30 a.m. and back on by 3:30
p.m. At no time can the water be left off past 3:30 p.m. If it is a scheduled water shut
down, then all residents must be given a 24-hour written notice.
● All projects will carry a one (1) year warranty from the date of completion unless
otherwise specified.
All contractors must have a minimum of $500,000 General Liability Insurance that is in force and
effective. We will call your agent to verify coverage.
● A Certificate of Insurance with AHA as an additional insured and a W-9 will need to be
presented at the contract signing and be on file before any pay request can be
processed.
● AHA has a right to refuse all bids. All bids awarded will be based on price, contractor
experience, contractor professionalism, valid licenses and certifications, and the ability to
complete the project in a timely manner or by the specified time.
● All contractors must have Workman's Comp insurance in accordance with State of
Arkansas workers compensation regulations.
● The contractor must be financially able to fund the project until sufficient work has been
performed to submit a pay request. AHA will not do a material or label draw at the onset
of the project to fund it for the contractor.
● AHA will pay stored materials for a project over $20,000 provided the contractors
submits original quotes from the supplier, signed bill of laden, the materials are stored in
an insured secure location, and a copy of the invoice is submitted after payments have
been made for materials. AHA and the project must be listed as a job location on all
quotes and invoices.
● AHA is not responsible for any materials, tools, equipment, etc., left overnight or during
the day that are not completely installed and left in an unfinished state.
● Since all work is done in or around occupied homes, all contractors, subcontractors, and
their employees must be willing to submit to and be able to pass a criminal background
check and/or drug test if requested. It is not mandatory but all Personnel working on
AHA properties are subject to a random check and test. Any persons convicted of a
sexually related offense is banned from all AHA property. Any contractor knowingly
employing a person with a sexually related conviction must ensure that employees do
does not enter any AHA property for any reason.
● Each contractor is responsible to provide their own tools, equipment material, ice etc.
AHA does not have ice machines, nor loan tools, material or equipment.
● The contractor is responsible for all damages caused to AHA property, equipment, sites,
yards, etc., as well as resident's properties, or any property adjoining AHA property.
● Section 3 contractors are encouraged to bid on all AHA work. Contractors are
encouraged to use Section 3 employees if possible.
● Concerning Air Conditioning and heat in all apartments, the utility bills are paid by the
tenant if the apartment is occupied and by the Housing Authority if the apartment is
empty. Do not adjust the thermostat then go off and leave them down. Do not leave
doors open all day with the A/C running, Close doors! If AHA receives an unreasonable
electric bill where work is being done on an empty apartment, we may disconnect the
A/C or heat for the duration of the job. AHA does not have to provide A/C and heat in
unoccupied apartments. You abuse it and you will lose it and/or pay the utility bill for
that month. If the contractor stores material and uses one of the apartments for
storage/headquarters, etc., they will be responsible for the utility bills for the use of that
apartment.
● As a contractor, your employees and subcontractors will be in people's homes. DO NOT,
for any reason, touch their stereos, computers, thermostats, setting on the A/C, or
personal belongings in any way. It is your responsibility to instruct and supervise your
people accordingly. Any person accused of such will be immediately terminated from the
project and banned from all AHA properties and if it is a criminal matter, it will be turned
over to the police for the legal system to take care of from there. The contractor could be
responsible for all costs, legal fees, tenant reimbursements, etc. In the event that does
happen.
● Section 3 contractors are encouraged to bid on all AHA projects. If a contractor is going
to claim a Section 3 status, all accompanying documentation such as certifications, the
eligibility for Preference and Certification for Business Concerns Seeking Section 3
Preference in Contracting and Demonstrating of Capability forms found in the bid
package must be submitted to the AHA office three (3) business days before the
schedule bid opening date for all paperwork to be verified before the bid opening. If a
contractor requests a Section 3 status after the scheduled bid opening or the necessary
documentation has not been submitted three (3) business days before the scheduled bid
opening, that bid will be considered non-responsive and will be rejected.
● There may be times a person working on AHA project is approached by a tenant, nontenant
etc., to buy some type of goods, equipment, jewelry, tools, sex, drugs, etc. Nor is
a contractor, subcontractor, or any employees of such to bring illegal substances or
alcohol, for themselves or anyone else, on any AHA properties, during contractual
working hours. The contractors must understand that if any of his/her employees put
themselves in a contractor/company in that situation, the contractor/company who signs
the contract will be held responsible. The situation will be turned over to the police and
the matter will be settled by the police. Any person working on an AHA project as part of
a contract of employment situation must immediately report the incident to his/her
supervisor in AHA personnel. If a person does engage in such activity, that person will
be banned from working on any AHA property, and if the person is found guilty of
criminal conduct, then the legal system will take its due process toward the person(s)
involved. If such action does occur, the contractor/company could be liable for all
damages, fees, cost, etc. Incurred as a result of such action.
● The contractor is to carry all insurances throughout the entire project as specified in # 6
of HUD form 5370 EZ and # 36 of HUD form 5370, whichever is applicable. If any
insurance is about to lapse, terminate, or become non effective, the contractor is to
notify AHA within 24 hours before the loss of insurance. If a contractor does not notify
AHA of a situation in continuous work without insurance, the contractor may be removed
immediately from the job and AHA will have the project completed at the contractor's
expense. If a contractor does not notify AHA of pending or termination of any type of
insurance within 24 hours of loss of insurance, that contractor is subject to being
deemed non-responsive contractor and barred from any future AHA projects.
● All employees of a contractor or subcontractor must have their current and appropriate
State and City licenses, apprentice cards, certifications, etc. necessary for work in that
trade.
"General Decision Number: AR20230125 01/20/2023
Superseded General Decision Number: AR20220125
State: Arkansas
Construction Type: Residential
County: Pulaski County in Arkansas.
RESIDENTIAL CONSTRUCTION PROJECTS (consisting of single family
homes and apartments up to and including 4 stories).
Note: Contracts subject to the Davis-Bacon Act are generally
required to pay at least the applicable minimum wage rate
required under Executive Order 14026 or Executive Order 13658.
Please note that these Executive Orders apply to covered
contracts entered into by the federal government that are
subject to the Davis-Bacon Act itself, but do not apply to
contracts subject only to the Davis-Bacon Related Acts,
including those set forth at 29 CFR 5.1(a)(2)-(60).
______________________________________________________________
'If the contract is entered '. Executive Order 14026 '
'into on or after January 30, ' generally applies to the '
'2022, or the contract is ' contract. '
'renewed or extended (e.g., an '. The contractor must pay '
'option is exercised) on or ' all covered workers at '
'after January 30, 2022: ' least $16.20 per hour (or '
' ' the applicable wage rate '
' ' listed on this wage '
' ' determination, if it is '
' ' higher) for all hours '
' ' spent performing on the '
' ' contract in 2023. '
'______________________________'_____________________________'
'If the contract was awarded on'. Executive Order 13658 '
'or between January 1, 2015 and' generally applies to the '
'January 29, 2022, and the ' contract. '
'contract is not renewed or '. The contractor must pay all'
'extended on or after January ' covered workers at least '
'30, 2022: ' $12.15 per hour (or the '
' ' applicable wage rate listed'
' ' on this wage determination,'
' ' if it is higher) for all '
' ' hours spent performing on '
' ' that contract in 2023. '
'______________________________'_____________________________'
The applicable Executive Order minimum wage rate will be
adjusted annually. If this contract is covered by one of the
Executive Orders and a classification considered necessary for
performance of work on the contract does not appear on this
wage determination, the contractor must still submit a
conformance request.
Additional information on contractor requirements and worker
protections under the Executive Orders is available at
http://www.dol.gov/whd/govcontracts.
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Modification Number Publication Date
0 01/06/2023
1 01/20/2023
* SFAR0669-001 01/01/2023
Rates Fringes
SPRINKLER FITTER (Fire
Sprinklers)......................$ 26.99 22.57
----------------------------------------------------------------
* SUAR2008-236 11/28/2008
Rates Fringes
BRICKLAYER.......................$ 20.00 0.00
CARPENTER, Includes Drywall
Hanging and Soft Floor
(Vinyl) Installation.............$ 12.28 ** 0.00
CEMENT MASON/CONCRETE FINISHER...$ 13.62 ** 0.00
ELECTRICIAN......................$ 14.44 ** 3.58
HVAC MECHANIC (Installation
of HVAC Duct and Unit)...........$ 11.93 ** 0.00
INSULATOR - BATT.................$ 9.09 ** 0.00
LABORER: Common or General......$ 8.84 ** 0.00
LABORER: Landscape..............$ 9.33 ** 0.00
LABORER: Mason Tender - Brick...$ 9.04 ** 0.00
LABORER: Mason Tender -
Cement/Concrete..................$ 11.35 ** 0.00
OPERATOR: Asphalt Paver.........$ 15.75 ** 0.00
OPERATOR:
Backhoe/Excavator/Trackhoe.......$ 12.86 ** 0.00
OPERATOR: Bulldozer.............$ 14.25 ** 0.00
PAINTER: Brush, Roller and
Spray............................$ 11.15 ** 0.00
PLASTERER........................$ 15.00 ** 0.00
PLUMBER..........................$ 14.74 ** 0.00
ROOFER...........................$ 13.00 ** 0.00
TRUCK DRIVER: Dump Truck........$ 11.68 ** 0.00
----------------------------------------------------------------
WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================
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** Workers in this classification may be entitled to a higher
minimum wage under Executive Order 14026 ($16.20) or 13658
($12.15). Please see the Note at the top of the wage
determination for more information.
Note: Executive Order (EO) 13706, Establishing Paid Sick Leave
for Federal Contractors applies to all contracts subject to the
Davis-Bacon Act for which the contract is awarded (and any
solicitation was issued) on or after January 1, 2017. If this
contract is covered by the EO, the contractor must provide
employees with 1 hour of paid sick leave for every 30 hours
they work, up to 56 hours of paid sick leave each year.
Employees must be permitted to use paid sick leave for their
own illness, injury or other health-related needs, including
preventive care; to assist a family member (or person who is
like family to the employee) who is ill, injured, or has other
health-related needs, including preventive care; or for reasons
resulting from, or to assist a family member (or person who is
like family to the employee) who is a victim of, domestic
violence, sexual assault, or stalking. Additional information
on contractor requirements and worker protections under the EO
is available at
https://www.dol.gov/agencies/whd/government-contracts.
Unlisted classifications needed for work not included within
the scope of the classifications listed may be added after
award only as provided in the labor standards contract clauses
(29CFR 5.5 (a) (1) (ii)).
----------------------------------------------------------------
The body of each wage determination lists the classification
and wage rates that have been found to be prevailing for the
cited type(s) of construction in the area covered by the wage
determination. The classifications are listed in alphabetical
order of ""identifiers"" that indicate whether the particular
rate is a union rate (current union negotiated rate for local),
a survey rate (weighted average rate) or a union average rate
(weighted union average rate).
Union Rate Identifiers
A four letter classification abbreviation identifier enclosed
in dotted lines beginning with characters other than ""SU"" or
""UAVG"" denotes that the union classification and rate were
prevailing for that classification in the survey. Example:
PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of
the union which prevailed in the survey for this
classification, which in this example would be Plumbers. 0198
indicates the local union number or district council number
where applicable, i.e., Plumbers Local 0198. The next number,
005 in the example, is an internal number used in processing
the wage determination. 07/01/2014 is the effective date of the
most current negotiated rate, which in this example is July 1,
2014.
Union prevailing wage rates are updated to reflect all rate
changes in the collective bargaining agreement (CBA) governing
this classification and rate.
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Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that
no one rate prevailed for this classification in the survey and
the published rate is derived by computing a weighted average
rate based on all the rates reported in the survey for that
classification. As this weighted average rate includes all
rates reported in the survey, it may include both union and
non-union rates. Example: SULA2012-007 5/13/2014. SU indicates
the rates are survey rates based on a weighted average
calculation of rates and are not majority rates. LA indicates
the State of Louisiana. 2012 is the year of survey on which
these classifications and rates are based. The next number, 007
in the example, is an internal number used in producing the
wage determination. 5/13/2014 indicates the survey completion
date for the classifications and rates under that identifier.
Survey wage rates are not updated and remain in effect until a
new survey is conducted.
Union Average Rate Identifiers
Classification(s) listed under the UAVG identifier indicate
that no single majority rate prevailed for those
classifications; however, 100% of the data reported for the
classifications was union data. EXAMPLE: UAVG-OH-0010
08/29/2014. UAVG indicates that the rate is a weighted union
average rate. OH indicates the state. The next number, 0010 in
the example, is an internal number used in producing the wage
determination. 08/29/2014 indicates the survey completion date
for the classifications and rates under that identifier.
A UAVG rate will be updated once a year, usually in January of
each year, to reflect a weighted average of the current
negotiated/CBA rate of the union locals from which the rate is
based.
----------------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can
be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on
a wage determination matter
* a conformance (additional classification and rate) ruling
On survey related matters, initial contact, including requests
for summaries of surveys, should be with the Wage and Hour
National Office because National Office has responsibility for
the Davis-Bacon survey program. If the response from this
initial contact is not satisfactory, then the process described
in 2.) and 3.) should be followed.
With regard to any other matter not yet ripe for the formal
process described here, initial contact should be with the
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Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2.) If the answer to the question in 1.) is yes, then an
interested party (those affected by the action) can request
review and reconsideration from the Wage and Hour Administrator
(See 29 CFR Part 1.8 and 29 CFR Part 7). Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the
interested party's position and by any information (wage
payment data, project description, area practice material,
etc.) that the requestor considers relevant to the issue.
3.) If the decision of the Administrator is not favorable, an
interested party may appeal directly to the Administrative
Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
4.) All decisions by the Administrative Review Board are final.
================================================================
END OF GENERAL DECISIO"
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Section 3 Frequently Asked Questions
1
FREQUENTLY ASKED QUESTIONS
for
SECTION 3
Published: March 25, 2021
The following is a guidance document published by the Department of Housing and Urban Development
Office of Field Policy and Management for the purpose of providing answers to frequently asked
questions about Section 3 of the HUD Act of 1968 (12 U.S.C § 1701u) and its associated regulations (24
C.F.R. Part 75). This document is intended to provide guidance for Section 3 funding recipients,
subrecipients, contractors, subcontractors, workers, and other stakeholders.
This guidance document covers questions in several topic areas and is divided into parts that contain
questions on that part's topic.
I. GENERAL QUESTIONS REGARDING SECTION 3:
1. What is Section 3?
2. What Do "Best Efforts" and "to the Greatest Extent Feasible" Mean?
3. What Does "Section 3 Worker" Mean?
4. What Does "Targeted Section 3 Worker" Mean?
5. What Does "Section 3 Business Concern" mean?
6. How are low-income and very low-income determined?
7. What is YouthBuild?
8. As a funding recipient, what are my Section 3 reporting goals?
9. How does Section 3 differ from the Minority Business Enterprise/Women Business Enterprise
programs?
10. What is a Section 3 project?
11. Who is considered a recipient of Section 3 funding?
12. What are funding thresholds and how do they apply to Section 3 covered financial assistance?
13. Which recipient agencies (or sources of HUD financial assistance) are required to comply with
Section 3?
14. Can a non-profit organization be considered a business concern for the purposes of Section 3?
15. What is a "Service Area" or "Neighborhood of the project"?
16. What if my agency does not meet all benchmark goals for employment or contracting?
17. My agency has met all benchmark goals for employment and contracting, does this mean that we
are considered in compliance with Section 3?
II. APPLICABILITY:
1. What HUD assistance does Section 3 apply to?
2. Do the requirements of Section 3 apply to grantees on a per project basis?
3. If a project is funded with non-HUD assistance, do the requirements of Section 3 still apply?
4. What recordkeeping responsibilities do contractors/subcontractors have if they receive Section 3
covered contracts?
5. Do the Section 3 requirements apply to material only contracts?
6. Do the Section 3 requirements apply to Section 8 project-based rental assistance contracts?
7. Are maintenance projects covered by Section 3?
Section 3 Frequently Asked Questions
2
8. Does the reduction and abatement of lead-based paint hazards constitute housing rehabilitation?
9. Are demolition projects covered by the requirements of Section 3?
10. Are professional service contracts required to be reported under Section 3?
11. Does Section 3 apply to labor hours by a CDBG-Entitlement recipient?
12. Does Section 3 apply to labor hours by a Public Housing Authority?
III. CONSISTENCY WITH OTHER LAWS:
1. Are recipients required to comply with Federal/state/local laws in addition to Section 3
2. What is the relationship between Section 3 and Davis Bacon requirements?
3. What does the new rule mean for Tribes and Tribally Designated Housing Entities?
IV. RECIPIENT RESPONSIBILITIES:
1. What are the responsibilities of recipient agencies under Section 3?
2. What are the reporting requirements for legacy contracts entered into under the old Part 135 rule?
3. What are the reporting requirements for Section 3 projects for which assistance or funds are
committed during the transition period?
4. What is the reporting timeline for Public Housing Authorities and other recipients of public
housing financial assistance?
5. What are the reporting requirements for Public Housing Authorities and other recipients of public
housing financial assistance during the transition period?
6. What are good strategies for targeting Section 3 workers and businesses?
7. Are funds provided to recipients so that they can comply with the requirements of Section 3?
8. Are Section 3 workers or business concerns guaranteed employment or contracting opportunities
under Section 3?
9. Are recipients, developers, and contractors required to provide long- term employment
opportunities, and not simply seasonal or temporary employment?
10. When might a recipient agency be exempt from the quantitative reporting requirements of
Section 3?
11. Are recipients required to request developers or contractors to make payments into Section 3
training or implementation funds?
V. SECTION 3 CERTIFICATION:
1. How can a prospective Section 3 worker or business concern certify that they meet the eligibility
requirements?
2. What documentation must be maintained by HUD recipients, contractors and subcontractors
certifying that low- and very-low individuals and business concerns meet the regulatory definitions
under Section 3?
3. What are examples of acceptable evidence to determine eligibility as a Section 3 worker?
4. What are examples of acceptable evidence for determining eligibility as a Section 3 business
concern?
5. Are all public housing residents considered Section 3 workers regardless of their income?
6. Does qualifying as a Section 3 businesses mean that the business will be selected if it meets the
technical requirements of the bid, regardless of bid price?
7. Can contracting with MBE/WBE businesses count towards Section 3 benchmarks?
8. Does a business have to be incorporated to be considered a Section 3 eligible business?
VI. ECONOMIC OPPORTUNITIES NUMERICAL BENCHMARKS:
Section 3 Frequently Asked Questions
3
1. How can low- and very low-income persons and businesses locate recipient agencies that are
required to comply with Section 3 in their area?
2. How can I find Section 3 business concerns in my area?
3. Do the benchmark requirements only count toward new hires?
4. Should PHA's report on staff hours?
5. What category of PHA Staff should be included?
6. Are recipient agencies required to meet the Section 3 benchmarks, or are they optional?
7. Will there be changes to the benchmark requirements?
8. What is considered "other" public construction?
9. What is the meaning of the safe harbor determination?
VII. SECTION 3 COMPLAINTS:
1. How should complaints be made?
2. Where else can I file complaints alleging denied employment and contracting opportunities?
I. GENERAL QUESTIONS REGARDING SECTION 3:
1. What is Section 3?
Section 3 is a provision of the Housing and Urban Development Act of 1968. The purpose of Section 3
is to ensure that employment and other economic opportunities generated by certain HUD financial
assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local
laws and regulations, be directed to low- and very low-income persons, particularly those who are
recipients of government assistance for housing, and to business concerns which provide economic
opportunities to low- and very low-income persons.
2. What Do "Best Efforts" and "to the Greatest Extent Feasible" Mean?
"Best efforts" and "greatest extent feasible" are statutory terms, used in the statute in different
contexts. As such, HUD uses both terms to track compliance, and there are many ways to interpret the
language. Traditionally, HUD has used the terms interchangeably, as referenced in the statute, and will
continue to be consistent with the statutory language. See 12 U.S.C. 1701u(b)-(d). These terms are
integral to the statutory intent and provide flexibility, rather than administrative burden, to grantees or
recipients of HUD funding.
HUD acknowledges that some perceive "best efforts" to be the more rigorous standard, while
others perceive "greatest extent feasible" to be the more rigorous standard. HUD has determined not to
define the difference between these two terms but rather to increase the emphasis on outcomes as a
result of these efforts. A recipient's reported results will be compared to the outcome metrics defined
in the benchmark notice. HUD program staff will evaluate the level of effort expended by those
recipients that fail to meet the benchmark safe harbor, and thus will ensure that the statutory terms are
being properly enforced. HUD included a list of examples in the regulation at 24 CFR §§ 75.15 and
75.25, including engagement in outreach efforts to generate job applicants who are Targeted Section 3
Section 3 Frequently Asked Questions
4
workers, providing training or apprenticeship opportunities, and providing technical assistance to help
Section 3 workers compete for jobs (e.g., resume assistance, coaching).
3. What Does "Section 3 Worker" Mean?
A Section 3 worker is any worker who currently fits, or when hired within the past five years fit, at
least one of the following categories, as documented:
1. The worker's income for the previous or annualized calendar year is below the income limit
established by HUD (see Question 6 of this part I of these FAQs, below);
2. The worker is employed by a Section 3 business concern (see Question 5 of part I, below); or
3. The worker is a YouthBuild participant.
4. What Does "Targeted Section 3 Worker" Mean?
A Section 3 targeted worker for Public Housing Financial Assistance projects is a Section 3 worker
who:
(1) is employed by a Section 3 business concern; or
(2) currently fits or when hired fit at least one of the following categories, as documented
within the past five years:
(i) A resident of public housing or Section 8-assisted housing;
(ii) A resident of other public housing projects or Section 8-assisted housing managed
by the PHA that is providing the assistance; or
(iii) A YouthBuild participant.
A Section 3 targeted worker for Housing and Community Development Financial Assistance projects
is a Section 3 worker who:
(1) is employed by a Section 3 business concern; or
(2) currently fits or when hired fit at least one of the following categories, as documented
within the past five years:
(i) Living within the service area or the neighborhood of the project, as defined in 24
CFR § 75.5; or
(ii) A YouthBuild participant.
5. What Does "Section 3 Business Concern" mean?
A Section 3 business concern is a business that meets at least one of the following criteria, documented
within the last six-month period:
1. At least 51 percent owned and controlled by low- or very low-income persons;
2. Over 75 percent of the labor hours performed for the business over the prior three-month period
are performed by Section 3 workers; or
Section 3 Frequently Asked Questions
5
3. A business at least 51 percent owned and controlled by current public housing residents or
residents who currently live in Section 8-assisted housing.
6. How are low-income and very low-income determined?
Low- and very low-income limits are defined in Section 3(b)(2) of the Housing Act of 1937 and are
determined annually by HUD. These limits are typically established at 80 percent and 50 percent of the
area median individual income. HUD income limits may be obtained from:
https://www.huduser.gov/portal/datasets/il.html.
7. What is YouthBuild?
YouthBuild is a community-based pre-apprenticeship program that provides job training and
educational opportunities for at-risk youth ages 16-24 who have previously dropped out of high school.
YouthBuild participants learn vocational skills in construction, as well as in other in-demand industries
that include health care, information technology, and hospitality. Youth also provide community
service through the required construction or rehabilitation of affordable housing for low-income or
homeless families in their own neighborhoods.
The Division of Youth Services within the Employment and Training Administration's Office of
Workforce Investment at the U.S. Department of Labor administers the YouthBuild program. Each
year, more than 6,000 youth participate in approximately 210 YouthBuild programs in more than 40
states. More information can be found here: https://www.dol.gov/agencies/eta/youth/youthbuild.
8. As a funding recipient, what are my Section 3 reporting goals?
Your Section 3 reporting goals depend on the type of assistance you are receiving, whether public
housing financial assistance or housing and community development financial assistance.
For public housing financial assistance, the benchmark for Section 3 workers is set at 25 percent or
more of the total number of labor hours worked by all workers employed with public housing financial
assistance in the PHA's or other recipient's fiscal year. The benchmark for Targeted Section 3
workers is set at 5 percent or more of the total number of labor hours worked by all workers employed
with public housing financial assistance in the PHA's or other recipient's fiscal year. This means that
the 5 percent is included as part of the 25 percent threshold.
For housing and community development financial assistance projects, the benchmark for Section 3
workers is set at 25 percent or more of the total number of labor hours worked by all workers on a
Section 3 project. The benchmark for Targeted Section 3 workers is set at 5 percent or more of the
total number of labor hours worked by all workers on a Section 3 project. This means that the 5
percent is included as part of the 25 percent threshold.
9. How does Section 3 differ from the Minority Business Enterprise/Women Business
Enterprise programs?
Section 3 is both race and gender neutral. The standards provided under this regulation are based on
income-level and location. Section 3 regulations were designed to encourage recipients of HUD
Section 3 Frequently Asked Questions
6
funding to direct employment, training, and contracting opportunities to low-income individuals, and
the businesses that employ these persons within their community regardless of race and/or gender.
Minority Business Enterprise (MBE) means a business enterprise that is at least 51% owned and
controlled by one or more minority or socially and economically disadvantaged persons. Such
disadvantage may arise from cultural, racial, chronic economic circumstances or other similar causes.
Women's Business Enterprise (WBE) is an independent business concern that is at least 51% owned
and controlled by one or more women who are U.S. citizens or Legal Resident Aliens; whose business
formation and principal place of business are in the U.S. or its territories; and whose management and
daily operation is controlled by a woman with industry expertise.
Section 3 standards are race and gender neutral. A minority and/or woman owned business enterprise
must provide evidence that it meets at least one criterion of a Section 3 business concern outlined
above in order to receive preference under Section 3. However, the Department anticipates that Section
3 will serve to support, and not impede, contract opportunities for minority business enterprises.
The MBE designation may provide preferences promoted by other statutes and regulations, such as
goals for MBEs and other socially and economically disadvantaged businesses.
To learn more about the Minority Business Enterprise and Women Business Enterprise programs,
please contact HUD's Office of Small and Disadvantaged Business Utilization at 202-708-1428, or
visit their website, located at: https://www.hud.gov/program_offices/sdb.
10. What is a Section 3 project?
Section 3 projects are housing rehabilitation, housing construction, and other public construction
projects assisted under HUD programs that provide housing and community development financial
assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The
threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes
programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970
(12 U.S.C. 1701z-1 or 1701z-2), the Lead-Based Paint Poisoning Prevention Act (42 U.S.C 4801 et
seq.,; and/or the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.).
(See Question 12 of this part I of these FAQs for more detail regarding Lead Hazard Control and
Healthy Homes programs.)
The project is the site or sites together with any building(s) and improvements located on the site(s)
that are under common ownership, management, and financing. The requirements of Part 75 apply to
an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD
programs that provide housing and community development financial assistance.
11. Who is considered a recipient of Section 3 funding?
A recipient is any entity that receives directly from HUD public housing financial assistance or
housing and community development assistance that funds Section 3 projects, including, but not
limited to, any State, local government, instrumentality, PHA, or other public agency, public or private
nonprofit organization. It does not include contractors or any intended beneficiary under the HUD
program to which Section 3 applies, such as a homeowner or a Section 3 worker.
Section 3 Frequently Asked Questions
7
12. What are funding thresholds and how do they apply to Section 3 covered financial
assistance?
Funding thresholds are minimum dollar amounts that trigger Section 3 requirements. There are no
thresholds for public housing programs. The requirements of Section 3 apply to all programs receiving
public housing financial assistance regardless of the amount of assistance received from HUD. Section
3 also applies to the entirety of a mixed-finance development project as described in 24 CFR 905.604,
regardless of whether the project is fully or partially assisted with public housing financial assistance.
Section 3 projects are housing rehabilitation, housing construction, and other public construction
projects assisted under HUD programs that provide housing and community development financial
assistance when the total amount of assistance to the project exceeds a threshold of $200,000 (Lead
Hazard Control and Healthy Homes (LHCHH) assistance is not included in calculating whether the
assistance exceeds the $200,000 threshold).
The threshold is $100,000 when the assistance is from the Lead Hazard Control and Healthy Homes
programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970,
the Lead-Based Paint Poisoning Prevention Act, and the Residential Lead-Based Paint Hazard
Reduction Act of 1992. LHCHH programs require Section 3 compliance if there is over $100,000 of
LHCHH funding for the project (neither HUD public housing financial assistance nor HUD housing
and community development financial assistance is included in calculating whether the assistance
exceeds the $100,000 threshold). Recipients of LHCHH funding will also be required to comply with
Section 3 regulations and report on the entirety of the project when the total amount of HUD housing
and community development financial assistance to the project exceeds $200,000 (LHCHH funding is
not included in calculating whether the total assistance exceeds the $200,000 threshold), or if any
public housing financial assistance is provided.
13. Which recipient agencies (or sources of HUD financial assistance) are required to comply
with Section 3?
For public housing financial assistance, Public Housing Authorities (PHAs), regardless of size or
number of public housing units, are required to comply with Section 3 and its reporting requirements.
However, small PHAs (fewer than 250 units) are permitted to report qualitatively as permitted under
24 CFR § 75.15(d). Some examples of those qualitative efforts are listed in the answer to Question 15.
As previously stated, Section 3 also applies to projects with more than $200,000 in funding from
housing and community development financial assistance programs. The following is a list of
examples of such funds:
• Community Development Block Grant (CDBG)
• HOME Investment Partnership
• Housing Trust Fund (HTF)
• Neighborhood Stabilization Program Grants (NSP 1, 2 & 3)
• Housing Opportunities for Persons with AIDS (HOPWA)
• Emergency Solutions Grants (ESG)
• University Partnership Grants
Section 3 Frequently Asked Questions
8
• Economic Stimulus Funds
• 202/811 Grants
• Lead Hazard Control Grants ($100,000 threshold; see Question 12, above, in this part I of these
FAQs)
• Healthy Homes Production Grants ($100,000 threshold; see Question 12, above, in this part I)
• Rental Assistance Demonstration (RAD) (see most recent RAD Notice, found through HUD's
RAD website, www.hud.gov/rad/)
*Note: The requirements of Section 3 typically apply to recipients of HUD funds that will be used for
housing construction, rehabilitation, or other public construction. Contact Section3@hud.gov to
determine applicability to a particular project/activity.
14. Can a non-profit organization be considered a business concern for the purposes of
Section 3?
Yes. A non-profit organization can be a business concern. Non-profit organizations must meet the
criteria of a Section 3 business concern as defined at 24 CFR § 75.5 in order to receive Section 3
preference. See response to Question 5 above.
15. What is a "Service Area" or "Neighborhood of the project"?
"Service area" or the "neighborhood of the project" means an area within one mile of the Section 3
project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle
centered on the Section 3 project that is sufficient to encompass a population of 5,000 people
according to the most recent U.S. Census.
16. What if my agency does not meet all benchmark goals for employment or contracting?
If reporting indicates that the agency has not met the Section 3 benchmarks, the agency must report in a
method prescribed by HUD program offices on the qualitative nature of its activities and those its
contractors and subcontractors pursued per 24 CFR § 75.15(b) and § 75.25(b).
Such qualitative efforts may, for example, include but are not limited to the following:
• Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers.
• Provided training or apprenticeship opportunities.
• Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume
assistance, coaching).
• Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews, and finding job opportunities connecting
residents to job placement services.
• Held one or more job fairs.
• Provided or referred Section 3 workers to services supporting work readiness and retention
(e.g., work readiness activities, interview clothing, test fees, transportation, childcare).
• Provided assistance to apply for/or attend community college, a four-year educational
institution, or vocational/technical training.
Section 3 Frequently Asked Questions
9
• Assisted Section 3 workers to obtain financial literacy training and/or coaching.
• Engaged in outreach efforts to identify and secure bids from Section 3 business concerns.
• Provided technical assistance to help Section 3 business concerns understand and bid on
contracts.
• Divided contracts into smaller jobs to facilitate participation by Section 3 business
concerns.
• Provided bonding assistance, guaranties, or other efforts to support viable bids from
Section 3 business concerns.
• Promoted use of business registries designed to create opportunities for disadvantaged and
small businesses.
• Outreach, engagement, or referrals with the state one-stop system as defined in Section
121(e)(2) of the Workforce Innovation and Opportunity Act
17. My agency has met all benchmark goals for employment and contracting, does this mean that
we are considered in compliance with Section 3?
Yes. Recipients will be considered to have complied with Section 3 requirements, in the absence of
evidence to the contrary, if they meet all benchmark goals and certify compliance with prioritization
requirements found in 24 CFR § 75.9 or §75.19. However, if subsequent HUD enforcement activities
reveal that the recipient has failed to comply with the recipient responsibilities set forth at 24 CFR
§75.13 or §75.23, this compliance determination may be rescinded.
Section 3 Frequently Asked Questions
10
II. APPLICABILITY:/
1. What HUD assistance does Section 3 apply to?
Section 3 applies to both:
a) Public Housing Financial Assistance -
(i) Development assistance provided pursuant to Section 5 of the United States Housing Act of
1937 (the 1937 Act);
(ii) Operations and management assistance provided pursuant to Section 9(e) of the 1937 Act;
(iii) Development, modernization, and management assistance provided pursuant to Section
9(d) of the 1937 Act; and
(iv) The entirety of a mixed-finance development project as described in 24 CFR 905.604,
regardless of whether the project is fully or partially assisted with public housing financial
assistance as defined in subsections (i) through (iii).
b) Housing and Community Development Financial Assistance expended for housing rehabilitation,
housing construction, or other public construction. See Question #2 below for applicability thresholds.
2. Do the requirements of Section 3 apply to grantees on a per project basis?
Yes, for housing and community development financial assistance projects. Section 3 projects are
housing rehabilitation, housing construction, and other public construction projects assisted under
HUD programs that provide housing and community development financial assistance when the total
amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where
the assistance is from the Lead Hazard Control and Healthy Homes programs. See Question 12 of
part I of these FAQs.
Section 3 applies to all public housing financial assistance funds, regardless of the amount of
assistance from HUD.
3. If a project is funded with non-HUD assistance, do the requirements of Section 3 still apply?
Section 3 applies to projects that are fully or partially funded with HUD financial assistance. Projects
that are financed with state, local or private matching or leveraged funds used in conjunction with
HUD funds are covered by Section 3 if the amount of HUD funding for the project exceeds the
regulatory thresholds (listed in Section I, Question #11).
For RAD projects, Section 3 applies regardless of what money is used to pay for repairs. Per the RAD
Notice, "While most RAD conversions do not utilize funding covered by Section 3, HUD has
established the alternative requirement that any Work required by the conversion after the RAD
Closing that involves housing rehabilitation or housing construction is subject to the Section 3
requirements applicable to housing and community development activities as set forth in 12 U.S.C.
1701u(c)(2) and (d)(2) and the regulations derived from such provisions except that, with the exception
of transactions receiving HUD housing and community development assistance, such as CDBG (24
CFR part 570) or HOME (24 CFR part 92), first priority for employment and other economic
Section 3 Frequently Asked Questions
11
opportunities shall be given to residents of public housing or Section 8 assisted housing. Otherwise, the
receipt of Section 8 rental assistance does not, in itself, trigger the applicability of Section 3."
4. What recordkeeping responsibilities do contractors/subcontractors have if they receive
Section 3 covered contracts?
Recordkeeping requirements for recipients are found at 24 CFR § 75.31. Recipients are required to
maintain documentation to demonstrate compliance with the regulations and are responsible for
requiring their contractors/subcontractors to maintain or provide any documentation that will assist
recipients in demonstrating compliance, including documentation that shows hours worked by Section
3 workers, Targeted Section 3 workers, and any qualitative efforts to comply with Section 3. Examples
of documentation can be found in 24 CFR §75.31.
5. Do the Section 3 requirements apply to material only contracts?
No. Section 3 does not apply to material only contracts or those that do not require any labor. For
example, a contract for office or janitorial supplies would not be covered by Section 3. In this example,
Section 3 would be encouraged but not required. However, a contract to replace windows that includes
the removal of existing windows and the installation of new windows would be covered due to the
involvement of labor.
6. Do the Section 3 requirements apply to Section 8 project-based rental assistance contracts?
No. Section 8 project-based voucher or project-based rental assistance housing assistance payment
contracts, are not covered by the statute, including properties converted through the Rental Assistance
Demonstration (RAD).
7. Are maintenance projects covered by Section 3?
Yes, but only for PIH funded programs administered by Public Housing Authorities.
8. Does the reduction and abatement of lead-based paint hazards constitute housing
rehabilitation?
No, reduction and abatement of lead-based paint hazards focuses on mitigating lead paint hazards only,
not conducting general rehabilitation activities.
9. Are demolition projects covered by the requirements of Section 3?
Yes. Recipients of assistance covered by Section 3 should, where feasible, comply with Section 3
benchmarks.
Section 3 Frequently Asked Questions
12
10. Are professional service contracts required to be reported under Section 3?
No, professional service contracts for non-construction services that require an advanced degree or
professional licensing are not required to be reported as a part of total Section 3 labor hours. However,
this exclusion does not cover all non-construction services.
However, professional services staff labor hours are permitted to be reported and PHAs will be given
credit for reporting opportunities created for professional services by including professional services
labor hours in the numerator, and not in the denominator, of the reported outcome ratios. The
reporting structure in the rule allows a recipient to count any work performed by a professional
services Section 3 worker or Targeted Section 3 worker as Section 3 labor hours and as Targeted
Section 3 labor hours (i.e., in the numerator of the calculation), even when the professional services as
a whole are not counted in the baseline reporting (i.e., in the denominator of the calculation). The
effect of this reporting structure is to give a recipient a bonus if they are able to report Section 3 hires
in the professional services context.
11. Does Section 3 apply to labor hours by a CDBG-Entitlement recipient?
Yes. If the recipient intends to use its HUD grant to perform housing construction, rehabilitation, or
other public construction and the total HUD assistance to the project exceeds $200,000, then Section 3
applies to the project.
12. Does Section 3 apply to labor hours by a Public Housing Authority?
Yes. Section 3 applies to all Public Housing capital, operating, or development funds.
Section 3 Frequently Asked Questions
13
III. CONSISTENCY WITH OTHER LAWS:
1. Are recipients required to comply with Federal/state/local laws in addition to Section 3?
Yes. Compliance with Section 3 shall be achieved, to the greatest extent feasible, consistent with
existing Federal, state and local laws and regulations. Accordingly, recipients of Section 3-covered
assistance are required to develop strategies for meeting both the regulatory requirements at 24 CFR
part 75 and any other applicable statutes or regulations.
2. What is the relationship between Section 3 and Davis Bacon requirements?
Compliance with Section 3 must be achieved consistent with the requirements of Davis-Bacon. Certain
construction contracts are subject to compliance with the requirement to pay prevailing wages
determined under the Davis-Bacon Act (40 U.S.C. 3141 et seq.) and implementing U.S. Department of
Labor regulations in 29 CFR Part 5. Additionally, certain HUD-assisted rehabilitation and maintenance
activities on public housing projects are subject to compliance with the requirement to pay prevailing
wage rates, as determined or adopted by HUD, to laborers and mechanics employed in this work.
(24 CFR § 965.101).
3. What does the new rule mean for Tribes and Tribally Designated Housing Entities?
After the Section 3 new rule went into effect on November 30, 2020, Tribes and Tribally Designated
Housing Entities under the Indian Housing Block Grant and Indian Community Development Block
Grant programs are no longer required comply with Section 3 requirements.
The new rule at 24 CFR part 75 provides that contracts, subcontracts, grants, or subgrants subject to
Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5307(b)) or
subject to tribal preference requirements as authorized under 101(k) of the Native American Housing
Assistance and Self-Determination Act (25 U.S.C. 4111(k)) must provide preferences in employment,
training, and business opportunities to Indians and Indian organizations, and are therefore not subject
to the requirements of 24 CFR Part 75.
Section 3 Frequently Asked Questions
14
IV. RECIPIENT RESPONSIBILITIES:
1. What are the responsibilities of recipient agencies under Section 3?
Recipients are required to ensure their own compliance and the compliance of their
contractors/subcontractors with the Section 3 regulations, as outlined at 24 CFR part 75. These
responsibilities include but are not limited to the following:
Designing and implementing procedures to comply with the requirements of Section 3: Recipient
agencies must take an active role in ensuring Section 3 compliance. The first step is implementing
procedures to ensure that all parties, including residents, businesses, contractors, and subcontractors,
comply with Section 3 and maintain records verifying that compliance.
Facilitating the training and employment of Section 3 workers: The recipient agency must act as a
facilitator, connecting Section 3 workers to training and employment opportunities.
Facilitating the award of contracts to Section 3 business concerns: The recipient agency must also
work to link developers and contractors with capable Section 3 business concerns. Additionally,
recipient agencies, when necessary, may direct Section 3 business concerns to organizations that
provide capacity-building training.
Ensuring Contractor and Subcontractor Awareness of and Compliance with Section 3 Benchmarks and
responsibilities: The recipient agency is responsible for ensuring that contractors and subcontractors
are aware of, and in compliance with, Section 3 requirements.
Ensuring Compliance and Meeting Numerical Benchmarks: Recipient agencies shall ensure
compliance with Section 3 by assessing the hiring and subcontracting needs of contractors; regularly
monitoring contractor compliance; assisting and actively cooperating with the Secretary of HUD in
obtaining the compliance of contractors; penalizing non-compliance; providing incentives for good
performance; and refraining from entering into contracts with any contractor that previously failed to
comply with the requirements of Section 3.
Reporting Requirements: Recipient agencies must document all actions taken to comply with the
requirements of Section 3 and report these activities either through the Section 3 Performance
Evaluation and Registration System (SPEARS), for Public Housing financial assistance, or any
reporting system designated by program areas overseeing other funding.
2. What are the reporting requirements for legacy contracts entered into under the old Part 135
rule?
On and after November 30, 2020, Section 3 regulations codified at 24 CFR Part 135 (the old rule) have
not applied and will not apply to new grants, commitments, contracts, or projects. Contracts executed
or projects for which assistance or funds were committed prior to November 30, 2020 are still required
to adhere to the requirements of the old rule. Recipients of such assistance or funds will still be
expected to maintain records of Section 3 statutory, regulatory, and contractual compliance but will no
longer be required to report Section 3 compliance to HUD in SPEARS.
Section 3 Frequently Asked Questions
15
HUD does not require funding recipients to change or alter contracts that were in place prior to the new
Section 3 requirements becoming effective on November 30, 2020.
3. What are the reporting requirements for Section 3 projects for which assistance or funds are
committed during the transition period?
Projects for which assistance or funds are committed between November 30, 2020 and July 1, 2021 are
subject to the new Section 3 regulations found in 24 CFR part 75, and HUD expects that funding
recipients will begin following this final rule's requirements for new grants, commitments, and
contracts. Recipients will be expected to maintain records of statutory, regulatory, and contractual
compliance with Section 3 for these projects but will not be required to report to HUD on the
requirements found in 24 CFR part 75.
During the transition period between November 30, 2020 and July 1, 2021, recipients are expected to
plan and revise processes, systems, and documents to comply with the new rule's requirements. During
this time, funding recipients are still required to comply with Section 3's statutory requirements by
ensuring that, to the greatest extent feasible, recipients continue to direct economic opportunities
generated by certain HUD financial assistance to low- and very low-income persons and businesses
that provide economic opportunities to low- and very low-income persons.
Recipients and employers should use this time to update policies and procedures for tracking labor
hours and other requirements to ensure compliance with the new rules for projects for which funds are
committed on or after July 1, 2021.
4. What is the reporting timeline for Public Housing Authorities and other recipients of public
housing financial assistance?
As of November 30, 2020, PHAs' requirement to report their Section 3 activities and efforts starts 60
days after the end of their first fiscal year that begins after July 1, 2021. Please see the charts below for
examples of PHA reporting schedules:
Fiscal Year End New Reporting Period Begins New Reporting Period Ends
6/30/21 7/1/21 6/30/22
9/30/21 10/1/21 9/30/22
12/31/21 1/1/22 12/13/22
3/31/22 4/1/22 3/31/23
Section 3 Frequently Asked Questions
16
5. What are the reporting requirements for Public Housing Authorities and other recipients of
public housing financial assistance during the transition period?
All recipients of public housing financial assistance are required to follow the new Section 3
regulations found in 24 CFR part 75 beginning on November 30, 2020, and HUD expects that funding
recipients and employers will begin following this final rule's requirements for new grants,
commitments, and contracts on and after this date. Recipients will be expected to maintain records of
statutory, regulatory, and contractual compliance with Section 3 but will not be required to report in
SPEARS on the requirements found in 24 CFR part 75 until the recipient's first full fiscal year after
July 1, 2021, as indicated in Question #4 above.
During the transition period between November 30, 2020 and a PHA or other recipient's required
reporting start date, employers and grantees are expected to plan and revise processes, systems, and
documents to comply with the new rule's requirements. During this time, PHAs and other recipients
are still required to comply with Section 3's statutory requirements by ensuring that, to the greatest
extent feasible, PHA's continue to direct economic opportunities generated by certain HUD financial
assistance to low- and very low-income persons, tenants of public and assisted housing, and businesses
that provide economic opportunities to low- and very low-income persons.
6. What are good strategies for targeting Section 3 workers and businesses?
In order to successfully target Section 3 workers and businesses for employment and contracting
opportunities, recipients must establish and maintain an effective Section 3 program. HUD has found
that hiring a Section 3 coordinator or assigning one individual the responsibility of coordinating all
Section 3 related activities is instrumental in reaching Section 3's employment and contracting goals.
It is recommended that recipient agencies establish procedures to certify Section 3 workers and Section
3 business concerns for employment and contracting opportunities. Thereafter, they should maintain a
list of eligible workers and businesses by skill, capacity or interest and contact them on a periodic basis
when employment and contracting opportunities are available. Refer to the Section 3 regulations at 24
CFR § 75.15(b) and § 75.25(b) for a listing of qualitative efforts.
Section 3 Frequently Asked Questions
17
7. Are funds provided to recipients so that they can comply with the requirements of Section 3?
No. Funding has not been appropriated for Section 3 compliance. Section 3 requirements are only
triggered when the normal expenditure of covered funds results in employment, training, or contracting
opportunities.
8. Are Section 3 workers or business concerns guaranteed employment or contracting
opportunities under Section 3?
Section 3 is not an entitlement program; therefore, employment and contracts are not guaranteed. Lowand
very low-income individuals and Section 3 business concerns must be able to demonstrate that
they have the ability or capacity to perform the specific job or successfully complete the contract that
they are seeking.
9. Are recipients, developers, and contractors required to provide long- term employment
opportunities, and not simply seasonal or temporary employment?
Recipients, developers, and contractors are required, to the greatest extent feasible, to direct
employment opportunities to low- and very low-income persons, including seasonal and temporary
employment opportunities. Benchmark goals include the calculation of all Section 3 worker and
Targeted Section 3 Worker labor hours as a percentage of all labor hours worked on a project.
Recipients, developers, and contractors are encouraged to provide long-term employment to ensure
that they meet the benchmark goals.
10. When might a recipient agency be exempt from the quantitative reporting requirements of
Section 3?
A Small Public Housing Agency (less than 250 units) may elect to not report on labor hours. If the
agency does elect not to report on labor hours, it is required to report solely on qualitative efforts as
permitted in 24 CFR § 75.15(d).
11. Are recipients required to request developers or contractors to make payments into Section 3
training or implementation funds?
No. Recipients are not required to request contractors to make payments into a fund.
Section 3 Frequently Asked Questions
18
V. SECTION 3 CERTIFICATION:
1. How can a prospective Section 3 worker or business concern certify that they meet the
eligibility requirements?
The individual or business must contact the agency or developer from which they are seeking
employment or contracting opportunities (e.g.., the PHA, city, or local government). They should
identify themselves as a Section 3 worker, Targeted Section 3 worker, or Section 3 business concern
and provide whatever documentation that the recipient agency requires under their certification
procedures. Prospective Section 3 workers and business concerns may self-certify that they meet the
requirements as defined in the regulations. HUD recipients, contractors and subcontractors may also
establish their own system to certify Section 3 workers and business concerns.
2. What documentation must be maintained by HUD recipients, subrecipients, contractors,
and/or subcontractors certifying that low- and very-low individuals and business concerns
meet the regulatory definitions under Section 3?
There are many ways that a worker can be certified as either a Section 3 Worker or Targeted Section 3
Worker under 24 CFR part 75:
For a worker to qualify as a Section 3 worker, one of the following must be maintained:
(i) A worker's self-certification that their income is below the income limit from the prior
calendar year;
(ii) A worker's self-certification of participation in a means-tested program such as public
housing or Section 8-assisted housing;
(iii) Certification from a PHA, or the owner or property manager of project-based Section 8-
assisted housing, or the administrator of tenant-based Section 8-assisted housing that the
worker is a participant in one of their programs;
(iv) An employer's certification that the worker's income from that employer is below the
income limit when based on an employer's calculation of what the worker's wage rate
would translate to if annualized on a full-time basis; or
(v) An employer's certification that the worker is employed by a Section 3 business
concern.
(2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be maintained:
For Public Housing Financial Assistance projects:
(i) A worker's self-certification of participation in public housing or Section 8-assisted
housing programs;
(ii) Certification from a PHA, or the owner or property manager of project-based Section 8-
assisted housing, or the administrator of tenant-based Section 8-assisted housing that the
worker is a participant in one of their programs;
(iii) An employer's certification that the worker is employed by a Section 3 business
concern; or
(iv) A worker's certification that the worker is a YouthBuild participant.
Section 3 Frequently Asked Questions
19
For Housing and Community Development Financial Assistance projects:
(i) An employer's confirmation that a worker's residence is within one mile of the work
site or, if fewer than 5,000 people live within one mile of a work site, within a circle
centered on the work site that is sufficient to encompass a population of 5,000 people
according to the most recent U.S. Census;
(ii) An employer's certification that the worker is employed by a Section 3 business
concern; or
(iii) A worker's self-certification that the worker is a YouthBuild participant.
The documentation must be maintained for the time period required for record retentions in accordance
with applicable program regulations or, in the absence of applicable program regulations, in
accordance with 2 CFR § 200.334, Retention Requirements for Records (www.ecfr.gov/cgibin/
retrieveECFR?n=se2.1.200_1334), which provides for retaining records for at least three years, as
described in detail in that regulation..
A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for five years
from when their certification as a Section 3 worker or Targeted Section 3 worker is established.
3. What are examples of acceptable evidence to determine eligibility as a Section 3 worker?
HUD does not prescribe that any specific forms of evidence to establish Section 3 eligibility.
Acceptable documentation includes, but is not limited to the following:
• Proof of residency in a public housing project; or
• Evidence of participation in the YouthBuild program.
4. What are examples of acceptable evidence for determining eligibility as a Section 3 business
concern?
HUD does not prescribe that any specific forms of evidence be required to establish Section 3
eligibility. The business seeking the preference must be able to demonstrate that they meet one of the
following criteria:
1. At least 51 percent owned and controlled by low- or very low-income persons;
2. Over 75 percent of the labor hours performed for the business over the prior three-month period
are performed by Section 3 workers; or
3. A business at least 51 percent owned and controlled by current public housing residents or
residents who currently live in Section 8-assisted housing.
5. Are all public housing residents considered Section 3 workers regardless of their income?
No. To qualify as a Section 3 Worker, an individual must meet one of the following criteria:
1. The worker's income for the previous or annualized calendar year is below the income limit
established by HUD;
2. The worker is employed by a Section 3 business concern; or
3. The worker is a YouthBuild participant.
Section 3 Frequently Asked Questions
20
6. Does qualifying as a Section 3 businesses mean that the business will be selected if it meets the
technical requirements of the bid, regardless of bid price?
No. As provided in 2 CFR 200.318, contract awards shall only be made to responsible contractors
possessing the ability to perform under the terms and conditions of the proposed contract. In order to
meet the requirements of Section 3 and Federal and state procurement laws, recipient agencies must
develop procedures that are consistent with all applicable regulations.
7. Can contracting with MBE/WBE businesses count towards Section 3 benchmarks?
It depends. Section 3 is race and gender neutral. Only MBEs/WBEs that meet the eligibility criteria as
a Section 3 business concern set forth in the regulation can be counted towards the Section 3 labor hour
calculation.
8. Does a business have to be incorporated to be considered a Section 3 eligible business?
No. A Section 3 business concern can be any type of business, such as a sole proprietorship,
partnership, or a corporation, properly licensed and meeting all legal requirements to perform the
contract under consideration.
Section 3 Frequently Asked Questions
21
VI. ECONOMIC OPPORTUNITIES NUMERICAL BENCHMARKS:
1. How can low- and very low-income persons and businesses locate recipient agencies that are
required to comply with Section 3 in their area?
To find local recipients' agencies, Section 3 residents or businesses should contact their local HUD
office. To find your closest office, visit: www.hud.gov/localoffices.
2. How can I find Section 3 business concerns in my area?
Contact local recipient agencies to find Section 3 business concerns in your area. Section 3 business
concerns that have registered in the Section 3 Business Registry are also available at:
https://portalapps.hud.gov/Sec3BusReg/BRegistry/BRegistryHome.
3. Do the benchmark requirements only count toward new hires?
No, the rule does not apply to only new hires, but if someone is currently on staff and qualifies as a
Section 3 resident under 24 CFR part 135, they will need to re-certify as either a Section 3 worker or
Targeted Section 3 worker under 24 CFR part 75.
4. Should PHA's report on staff hours?
Yes, but not all PHA staff qualify as Section 3 workers. Only PHA staff that meet the definition of a
Section 3 worker or Targeted Section 3 worker would qualify to be counted toward total Section 3 or
Targeted Section 3 labor hours. Once a PHA determines that a Section 3 worker or Targeted Section 3
worker is hired or currently employed, the PHA would just report those hours as the numerator over
the total labor hours funded with public housing financial assistance as the denominator.
5. What category of PHA Staff should be included?
Both salaried and hourly workers need to be reported. There is a limited good faith assessment
exception for PHAs and other recipient employers of hourly and salaried workers that are not subject
to requirements specifying time and attendance reporting and do not have systems already in place to
track labor hours. This exception is to address employers that do not already track labor hours without
making changes in time and attendance or payroll.
6. Are recipient agencies required to meet the Section 3 benchmarks, or are they optional?
The Section 3 benchmarks are minimum targets that must be reached in order for the Department to
consider a recipient in compliance. Recipient agencies are required to make best efforts, or to the
greatest extent feasible, to achieve the benchmarks required for the number of labor hours performed
by both Section 3 workers and Targeted Section 3 workers. If an agency fails to fully meet the Section
3 benchmarks, they must adequately document the efforts taken to meet the numerical goals (see
Question #9 for a discussion of safe harbor.)
Section 3 Frequently Asked Questions
22
7. Will there be changes to the benchmark requirements?
The Secretary of Housing and Urban Development is required in the Benchmark Notice published in
the Federal Register to review and update the Benchmarks by Federal Register notice no less
frequently than once every three years.
8. What is considered "other" public construction?
Other public construction includes infrastructure work, such as extending water and sewage lines,
sidewalk repairs, site preparation, and installing conduits for utility services.
9. What is the meaning of the safe harbor determination?
Recipients will be considered to have complied with the Section 3 requirements and met the safe
harbor, in the absence of evidence to the contrary, if they certify that they have followed the required
prioritization of effort and met or exceeded the applicable Section 3 benchmarks.
If a recipient agency or contractor does not meet the benchmark requirements but can provide evidence
that they have made a number of qualitative efforts to assist low- and very low-income persons with
employment and training opportunities, the recipient or contractor is considered to be in compliance
with Section 3, absent evidence to the contrary (i.e., evidence or findings obtained from a Section 3
compliance review).
Section 3 Frequently Asked Questions
23
VII. SECTION 3 COMPLAINTS:
1. How should complaints be made?
Complaints alleging failure of compliance with this part may be reported to the HUD program office
responsible for the public housing financial assistance or the Section 3 project, or to the local HUD
field office. These offices can be found through the HUD website, www.hud.gov/.
2. Where else can I file complaints alleging denied employment and contracting opportunities?
You may be eligible to bring complaints under other federal laws. The U.S. Equal Employment
Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to
discriminate against a job applicant or an employee because of the person's race, color, religion, sex
(including pregnancy), national origin, age (40 or older), disability or genetic information (medical
history or predisposition to disease). For more information about your rights, please contact EEOC at:
www.EEOC.gov.
The Department of Labor Office of Federal Contract Compliance Programs (OFCCP) enforces, for the
benefit of job seekers and wage earners, the contractual promise of affirmative action and equal
employment opportunity required of those who do business with the Federal government. More
information about the services they provide can be obtained at: http://www.dol.gov/ofccp/.
RESIDENT EMPLOYMENT OPPORTUNITY DATA
THE HOUSING AUTHORITY (OF THE CITY OF)
_______________________________________
ELIGIBILITY FOR PREFERENCE.
Eligibility for Preference
A Section 3 resident seeking the preference and training and employment provided by this part
shall certify or submit evidence to the recipient contractor or subcontractor, if requested that the
person is a Section 3 resident, as defined in Section 135.5. (An example of evidence of
eligibility for their preference is evidence of a receipt of Public Assistance, or evidence of
participation in a public assistance program.
Certification Of Residency Seeking Section 3 Preference In Training And Employment
I,________________________, am a legal resident of the _____________________ and
meet the income eligibility guidelines for a low or very low-income person as published on the
attached document.
My permanent residence is: _______________________________________________
_______________________________________________
I have attached the following documentation as evidence of my status:
᱀ Copy of lease ᱀ Copy of receipt of Public Assistance
᱀ Copy of evidence of participation in public assistance program
᱀ Copy of other evidence ____________________________________
________________________________
Signature
________________________________ _____________________
Print Name Date
SECTION 3 INCOME LIMITS
All residents of public housing developments of the ___________________________
Housing Authority qualify as Section 3 residents. Additionally, individuals residing in the
_______________ City of ___________________________ who meet the income limit set
forth below can qualify for Section 3 status.
A picture identification card and proof of current residency is required
ELIGIBILITY GUIDELINE
Number of Household Very Low Income Low Income
1 individual
2 individuals
3 individuals
4 individuals
5 individuals
6 individuals
7 individuals
8 individuals
CERTIFICATION FOR BUSINESS CONCERNS SEEKING SECTION 3 PREFERENCE IN CONTRACTING
AND DEMONSTRATION OF CAPBILITY
Name of Business
Address of Business
Type of Business: □ Corporation □Partnership
□ Sole Proprietorship □Joint Venture
Attached is the following documentation as evidence of status:
For Business claiming status as a Section 3 resident-owned enterprise:
□ Copy of resident lease □ Copy of receipt of public assistance
□ Copy of evidence of participation
□ Other evidence in a public assistance program
For business entity as applicable:
□ Copy of Articles of Incorporation □ Certificate of Good Standing
□ Assumed Business Name Certificate □ Partnership Agreement
□ List of owners/stockholders and □ Corporation Annual Report
% ownership of each □ Latest Board minutes appointing officers
□ Organization chart with names and titles
□ Additional documentation and brief function statement
For business claiming Section 3 status by subcontracting 25 percent of the dollar awarded to qualified
Section 3 business:
□ List of subcontracted Section 3 business(es) and subcontract amount
For business claiming Section 3 status, claiming at least 30 percent of their workforce are currently
Section 3 residents or were Section 3 eligible residents within 3 years of date of first employment with
the business:
□ List of all current full-time employees
□ List of employees claiming Section 3 status
□ PHA Residential lease less than 3 years from date of employment
□ other evidence of Section 3 status less than 3 years from day of employment
Evidence of ability to perform successfully under the terms and conditions of the proposed contract:
□ Current financial statement
□ Statement of ability to comply with public policy
□ List of owned equipment
□ L i s t of all contracts for the past two years
Authorizing Name and Signature
Attested by:_
(Corporate Seal)
Previous edition is obsolete form HUD-5369 (10/2002)
Instructions to Bidders for Contracts
Public and Indian Housing Programs
U.S. Department of Housing and
Urban Development
Office of Public and Indian Housing
Previous edition is obsolete form HUD-5369 (10/2002)
Instructions to Bidders for Contracts
Public and Indian Housing Programs
Table of Contents
Clause Page
1. Bid Preparation and Submission 1
2. Explanations and Interpretations to Prospective Bidders 1
3. Amendments to Invitations for Bids 1
4. Responsibility of Prospective Contractor 1
5. Late Submissions, Modifications, and Withdrawal of Bids 1
6. Bid Opening 2
7. Service of Protest 2
8. Contract Award 2
9. Bid Guarantee 3
10. Assurance of Completion 3
11. Preconstruction Conference 3
12. Indian Preference Requirements 3
1. Bid Preparation and Submission
(a) Bidders are expected to examine the specifications, drawings,
all instructions, and, if applicable, the construction site (see also the
contract clause entitled Site Investigation and Conditions Affecting
the Work of the General Conditions of the Contract for Construction).
Failure to do so will be at the bidders' risk.
(b) All bids must be submitted on the forms provided by the Public
Housing Agency/Indian Housing Authority (PHA/IHA). Bidders shall
furnish all the information required by the solicitation. Bids must be
signed and the bidder's name typed or printed on the bid sheet and
each continuation sheet which requires the entry of information by
the bidder. Erasures or other changes must be initialed by the person
signing the bid. Bids signed by an agent shall be accompanied by
evidence of that agent's authority. (Bidders should retain a copy of
their bid for their records.)
(c) Bidders must submit as part of their bid a completed form HUD-
5369-A, "Representations, Certifications, and Other Statements of
Bidders."
(d) All bid documents shall be sealed in an envelope which shall be
clearly marked with the words "Bid Documents," the Invitation for
Bids (IFB) number, any project or other identifying number, the
bidder's name, and the date and time for receipt of bids.
(e) If this solicitation requires bidding on all items, failure to do so will
disqualify the bid. If bidding on all items is not required, bidders
should insert the words "No Bid" in the space provided for any item
on which no price is submitted.
(f) Unless expressly authorized elsewhere in this solicitation, alternate
bids will not be considered.
(g) Unless expressly authorized elsewhere in this solicitation, bids
submitted by telegraph or facsimile (fax) machines will not be
considered.
(h) If the proposed contract is for a Mutual Help project (as described
in 24 CFR Part 905, Subpart E) that involves Mutual Help
contributions of work, material, or equipment, supplemental information
regarding the bid advertisement is provided as an attachment to
this solicitation.
2. Explanations and Interpretations to Prospective
Bidders
(a) Any prospective bidder desiring an explanation or interpretation
of the solicitation, specifications, drawings, etc., must request it at
least 7 days before the scheduled time for bid opening. Requests
may be oral or written. Oral requests must be confirmed in writing.
The only oral clarifications that will be provided will be those clearly
related to solicitation procedures, i.e., not substantive technical
information. No other oral explanation or interpretation will be
provided. Any information given a prospective bidder concerning
this solicitation will be furnished promptly to all other prospective
bidders as a written amendment to the solicitation, if that information
is necessary in submitting bids, or if the lack of it would be prejudicial
to other prospective bidders.
(b) Any information obtained by, or provided to, a bidder other than
by formal amendment to the solicitation shall not constitute a change
to the solicitation.
3. Amendments to Invitations for Bids
(a) If this solicitation is amended, then all terms and conditions
which are not modified remain unchanged.
(b) Bidders shall acknowledge receipt of any amendment to this
solicitation (1) by signing and returning the amendment, (2) by
identifying the amendment number and date on the bid form, or (3)
by letter, telegram, or facsimile, if those methods are authorized in
the solicitation. The PHA/IHA must receive acknowledgement by the
time and at the place specified for receipt of bids. Bids which fail to
acknowledge the bidder's receipt of any amendment will result in the
rejection of the bid if the amendment(s) contained information which
substantively changed the PHA's/IHA's requirements.
(c) Amendments will be on file in the offices of the PHA/IHA and the
Architect at least 7 days before bid opening.
4. Responsibility of Prospective Contractor
(a) The PHA/IHA will award contracts only to responsible prospective
contractors who have the ability to perform successfully under
the terms and conditions of the proposed contract. In determining
the responsibility of a bidder, the PHA/IHA will consider such matters
as the bidder's:
(1) Integrity;
(2) Compliance with public policy;
(3) Record of past performance; and
(4) Financial and technical resources (including construction
and technical equipment).
(b) Before a bid is considered for award, the bidder may be requested
by the PHA/IHA to submit a statement or other documentation
regarding any of the items in paragraph (a) above. Failure by the
bidder to provide such additional information shall render the bidder
nonresponsible and ineligible for award.
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Previous edition is obsolete form HUD-5369 (10/2002)
5. Late Submissions, Modifications, and Withdrawal of Bids
(a) Any bid received at the place designated in the solicitation after
the exact time specified for receipt will not be considered unless it is
received before award is made and it:
(1) Was sent by registered or certified mail not later than the
fifth calendar day before the date specified for receipt of offers (e.g.,
an offer submitted in response to a solicitation requiring receipt of
offers by the 20th of the month must have been mailed by the 15th);
(2) Was sent by mail, or if authorized by the solicitation, was
sent by telegram or via facsimile, and it is determined by the PHA/IHA
that the late receipt was due solely to mishandling by the PHA/IHA
after receipt at the PHA/IHA; or
(3) Was sent by U.S. Postal Service Express Mail Next Day
Service - Post Office to Addressee, not later than 5:00 p.m. at the
place of mailing two working days prior to the date specified for
receipt of proposals. The term "working days" excludes weekends
and observed holidays.
(b) Any modification or withdrawal of a bid is subject to the same
conditions as in paragraph (a) of this provision.
(c) The only acceptable evidence to establish the date of mailing of
a late bid, modification, or withdrawal sent either by registered or
certified mail is the U.S. or Canadian Postal Service postmark both
on the envelope or wrapper and on the original receipt from the U.S.
or Canadian Postal Service. Both postmarks must show a legible
date or the bid, modification, or withdrawal shall be processed as if
mailed late. "Postmark" means a printed, stamped, or otherwise
placed impression (exclusive of a postage meter machine impression)
that is readily identifiable without further action as having been
supplied and affixed by employees of the U.S. or Canadian Postal
Service on the date of mailing. Therefore, bidders should request the
postal clerk to place a hand cancellation bull's-eye postmark on both
the receipt and the envelope or wrapper.
(d) The only acceptable evidence to establish the time of receipt at the
PHA/IHA is the time/date stamp of PHA/IHA on the proposal wrapper or
other documentary evidence of receipt maintained by the PHA/IHA.
(e) The only acceptable evidence to establish the date of mailing of
a late bid, modification, or withdrawal sent by Express Mail Next Day
Service-Post Office to Addressee is the date entered by the post
office receiving clerk on the "Express Mail Next Day Service-Post
Office to Addressee" label and the postmark on both the envelope or
wrapper and on the original receipt from the U.S. Postal Service.
"Postmark" has the same meaning as defined in paragraph (c) of this
provision, excluding postmarks of the Canadian Postal Service.
Therefore, bidders should request the postal clerk to place a legible
hand cancellation bull's eye postmark on both the receipt and Failure
by a bidder to acknowledge receipt of the envelope or wrapper.
(f) Notwithstanding paragraph (a) of this provision, a late modification
of an otherwise successful bid that makes its terms more
favorable to the PHA/IHA will be considered at any time it is received
and may be accepted.
(g) Bids may be withdrawn by written notice, or if authorized by this
solicitation, by telegram (including mailgram) or facsimile machine
transmission received at any time before the exact time set for
opening of bids; provided that written confirmation of telegraphic or
facsimile withdrawals over the signature of the bidder is mailed and
postmarked prior to the specified bid opening time. A bid may be
withdrawn in person by a bidder or its authorized representative if,
before the exact time set for opening of bids, the identity of the person
requesting withdrawal is established and the person signs a receipt
for the bid.
6. Bid Opening
All bids received by the date and time of receipt specified in the
solicitation will be publicly opened and read. The time and place of
opening will be as specified in the solicitation. Bidders and other
interested persons may be present.
7. Service of Protest
(a) Definitions. As used in this provision:
"Interested party" means an actual or prospective bidder whose
direct economic interest would be affected by the award of the
contract.
"Protest" means a written objection by an interested party to this
solicitation or to a proposed or actual award of a contract pursuant
to this solicitation.
(b) Protests shall be served on the Contracting Officer by obtaining
written and dated acknowledgement from -
[Contracting Officer designate the official or location where a protest
may be served on the Contracting Officer]
(c) All protests shall be resolved in accordance with the PHA's/
IHA's protest policy and procedures, copies of which are maintained
at the PHA/IHA.
8. Contract Award
(a) The PHA/IHA will evaluate bids in response to this solicitation
without discussions and will award a contract to the responsible
bidder whose bid, conforming to the solicitation, will be most advantageous
to the PHA/IHA considering only price and any price-related
factors specified in the solicitation.
(b) If the apparent low bid received in response to this solicitation
exceeds the PHA's/IHA's available funding for the proposed contract
work, the PHA/IHA may either accept separately priced items (see
8(e) below) or use the following procedure to determine contract
award. The PHA/IHA shall apply in turn to each bid (proceeding in
order from the apparent low bid to the high bid) each of the separately
priced bid deductible items, if any, in their priority order set forth in
this solicitation. If upon the application of the first deductible item to
all initial bids, a new low bid is within the PHA's/IHA's available
funding, then award shall be made to that bidder. If no bid is within
the available funding amount, then the PHA/IHA shall apply the
second deductible item. The PHA/IHA shall continue this process
until an evaluated low bid, if any, is within the PHA's/IHA's available
funding. If upon the application of all deductibles, no bid is within the
PHA's/IHA's available funding, or if the solicitation does not request
separately priced deductibles, the PHA/IHA shall follow its written
policy and procedures in making any award under this solicitation.
(c) In the case of tie low bids, award shall be made in accordance
with the PHA's/IHA's written policy and procedures.
(d) The PHA/IHA may reject any and all bids, accept other than the
lowest bid (e.g., the apparent low bid is unreasonably low), and waive
informalities or minor irregularities in bids received, in accordance
with the PHA's/IHA's written policy and procedures.
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Previous edition is obsolete form HUD-5369 (10/2002)
(e) Unless precluded elsewhere in the solicitation, the PHA/IHA
may accept any item or combination of items bid.
(f) The PHA/IHA may reject any bid as nonresponsive if it is
materially unbalanced as to the prices for the various items of work
to be performed. A bid is materially unbalanced when it is based on
prices significantly less than cost for some work and prices which are
significantly overstated for other work.
(g) A written award shall be furnished to the successful bidder within
the period for acceptance specified in the bid and shall result in a
binding contract without further action by either party.
9. Bid Guarantee (applicable to construction and equipment
contracts exceeding $25,000)
All bids must be accompanied by a negotiable bid guarantee which
shall not be less than five percent (5%) of the amount of the bid. The
bid guarantee may be a certified check, bank draft, U.S. Government
Bonds at par value, or a bid bond secured by a surety company
acceptable to the U.S. Government and authorized to do business in
the state where the work is to be performed. In the case where the
work under the contract will be performed on an Indian reservation
area, the bid guarantee may also be an irrevocable Letter of Credit
(see provision 10, Assurance of Completion, below). Certified
checks and bank drafts must be made payable to the order of the
PHA/IHA. The bid guarantee shall insure the execution of the
contract and the furnishing of a method of assurance of completion
by the successful bidder as required by the solicitation. Failure to
submit a bid guarantee with the bid shall result in the rejection of the
bid. Bid guarantees submitted by unsuccessful bidders will be
returned as soon as practicable after bid opening.
10. Assurance of Completion
(a) Unless otherwise provided in State law, the successful bidder
shall furnish an assurance of completion prior to the execution of any
contract under this solicitation. This assurance may be [Contracting
Officer check applicable items] -
[ ] (1) a performance and payment bond in a penal sum of 100
percent of the contract price; or, as may be required or permitted by
State law;
[ ] (2) separate performance and payment bonds, each for 50
percent or more of the contract price;
[ ] (3) a 20 percent cash escrow;
[ ] (4) a 25 percent irrevocable letter of credit; or,
[ ] (5) an irrevocable letter of credit for 10 percent of the total
contract price with a monitoring and disbursements agreement with
the IHA (applicable only to contracts awarded by an IHA under the
Indian Housing Program).
(b) Bonds must be obtained from guarantee or surety companies
acceptable to the U.S. Government and authorized to do business in
the state where the work is to be performed. Individual sureties will
not be considered. U.S. Treasury Circular Number 570, published
annually in the Federal Register, lists companies approved to act as
sureties on bonds securing Government contracts, the maximum
underwriting limits on each contract bonded, and the States in which
the company is licensed to do business. Use of companies listed in
this circular is mandatory. Copies of the circular may be downloaded
on the U.S. Department of Treasury website http://
www.fms.treas.gov/c570/index.html, or ordered for a minimum fee
by contacting the Government Printing Office at (202) 512-2168.
(c) Each bond shall clearly state the rate of premium and the total
amount of premium charged. The current power of attorney for the
person who signs for the surety company must be attached to the
bond. The effective date of the power of attorney shall not precede
the date of the bond. The effective date of the bond shall be on or after
the execution date of the contract.
(d) Failure by the successful bidder to obtain the required assurance
of completion within the time specified, or within such extended
period as the PHA/IHA may grant based upon reasons determined
adequate by the PHA/IHA, shall render the bidder ineligible for
award. The PHA/IHA may then either award the contract to the next
lowest responsible bidder or solicit new bids. The PHA/IHA may
retain the ineligible bidder's bid guarantee.
11. Preconstruction Conference (applicable to construction
contracts)
After award of a contract under this solicitation and prior to the start
of work, the successful bidder will be required to attend a
preconstruction conference with representatives of the PHA/IHA and
its architect/engineer, and other interested parties convened by the
PHA/IHA. The conference will serve to acquaint the participants with
the general plan of the construction operation and all other requirements
of the contract (e.g., Equal Employment Opportunity, Labor
Standards). The PHA/IHA will provide the successful bidder with the
date, time, and place of the conference.
12. Indian Preference Requirements (applicable only if
this solicitation is for a contract to be performed on a
project for an Indian Housing Authority)
(a) HUD has determined that the contract awarded under this
solicitation is subject to the requirements of section 7(b) of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450e(b)).
Section 7(b) requires that any contract or subcontract entered into for
the benefit of Indians shall require that, to the greatest extent feasible
(1) Preferences and opportunities for training and employment
(other than core crew positions; see paragraph (h) below) in connection
with the administration of such contracts or subcontracts be
given to qualified "Indians." The Act defines "Indians" to mean
persons who are members of an Indian tribe and defines "Indian
tribe" to mean any Indian tribe, band, nation, or other organized
group or community, including any Alaska Native village or regional
or village corporation as defined in or established pursuant to the
Alaska Native Claims Settlement Act, which is recognized as eligible
for the special programs and services provided by the United States
to Indians because of their status as Indians; and,
(2) Preference in the award of contracts or subcontracts in
connection with the administration of contracts be given to Indian
organizations and to Indian-owned economic enterprises, as defined
in section 3 of the Indian Financing Act of 1974 (25 U.S.C.
1452). That Act defines "economic enterprise" to mean any Indianowned
commercial, industrial, or business activity established or
organized for the purpose of profit, except that the Indian ownership
must constitute not less than 51 percent of the enterprise; "Indian
organization" to mean the governing body of any Indian tribe or entity
established or recognized by such governing body; "Indian" to mean
any person who is a member of any tribe, band, group, pueblo, or
community which is recognized by the Federal Government as
eligible for services from the Bureau of Indian Affairs and any
"Native" as defined in the Alaska Native Claims Settlement Act; and
Indian "tribe" to mean any Indian tribe, band, group, pueblo, or
community including Native villages and Native groups (including
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Previous edition is obsolete form HUD-5369 (10/2002)
corporations organized by Kenai, Juneau, Sitka, and Kodiak) as
defined in the Alaska Native Claims Settlement Act, which is recognized
by the Federal Government as eligible for services from the
Bureau of Indian Affairs.
(b) (1) The successful Contractor under this solicitation shall comply
with the requirements of this provision in awarding all subcontracts
under the contract and in providing training and employment
opportunities.
(2) A finding by the IHA that the contractor, either (i) awarded
a subcontract without using the procedure required by the IHA, (ii)
falsely represented that subcontracts would be awarded to Indian
enterprises or organizations; or, (iii) failed to comply with the
contractor's employment and training preference bid statement shall
be grounds for termination of the contract or for the assessment of
penalties or other remedies.
(c) If specified elsewhere in this solicitation, the IHA may restrict the
solicitation to qualified Indian-owned enterprises and Indian organizations.
If two or more (or a greater number as specified elsewhere
in the solicitation) qualified Indian-owned enterprises or organizations
submit responsive bids, award shall be made to the qualified
enterprise or organization with the lowest responsive bid. If fewer
than the minimum required number of qualified Indian-owned enterprises
or organizations submit responsive bids, the IHA shall reject
all bids and readvertise the solicitation in accordance with paragraph
(d) below.
(d) If the IHA prefers not to restrict the solicitation as described in
paragraph (c) above, or if after having restricted a solicitation an
insufficient number of qualified Indian enterprises or organizations
submit bids, the IHA may advertise for bids from non-Indian as well
as Indian-owned enterprises and Indian organizations. Award shall
be made to the qualified Indian enterprise or organization with the
lowest responsive bid if that bid is -
(1) Within the maximum HUD-approved budget amount established
for the specific project or activity for which bids are being
solicited; and
(2) No more than the percentage specified in 24 CFR 905.175(c)
higher than the total bid price of the lowest responsive bid from any
qualified bidder. If no responsive bid by a qualified Indian-owned
economic enterprise or organization is within the stated range of the
total bid price of the lowest responsive bid from any qualified
enterprise, award shall be made to the bidder with the lowest bid.
(e) Bidders seeking to qualify for preference in contracting or
subcontracting shall submit proof of Indian ownership with their bids.
Proof of Indian ownership shall include but not be limited to:
(1) Certification by a tribe or other evidence that the bidder is
an Indian. The IHA shall accept the certification of a tribe that an
individual is a member.
(2) Evidence such as stock ownership, structure, management,
control, financing and salary or profit sharing arrangements of
the enterprise.
(f) (1) All bidders must submit with their bids a statement describing
how they will provide Indian preference in the award of subcontracts.
The specific requirements of that statement and the factors
to used by the IHA in determining the statement's adequacy are
included as an attachment to this solicitation. Any bid that fails to
include the required statement shall be rejected as nonresponsive.
The IHA may require that comparable statements be provided by
subcontractors to the successful Contractor, and may require the
Contractor to reject any bid or proposal by a subcontractor that fails
to include the statement.
(2) Bidders and prospective subcontractors shall submit a
certification (supported by credible evidence) to the IHA in any
instance where the bidder or subcontractor believes it is infeasible to
provide Indian preference in subcontracting. The acceptance or
rejection by the IHA of the certification shall be final. Rejection shall
disqualify the bid from further consideration.
(g) All bidders must submit with their bids a statement detailing their
employment and training opportunities and their plans to provide
preference to Indians in implementing the contract; and the number
or percentage of Indians anticipated to be employed and trained.
Comparable statements from all proposed subcontractors must be
submitted. The criteria to be used by the IHA in determining the
statement(s)'s adequacy are included as an attachment to this
solicitation. Any bid that fails to include the required statement(s), or
that includes a statement that does not meet minimum standards
required by the IHA shall be rejected as nonresponsive.
(h) Core crew employees. A core crew employee is an individual
who is a bona fide employee of the contractor at the time the bid is
submitted; or an individual who was not employed by the bidder at the
time the bid was submitted, but who is regularly employed by the
bidder in a supervisory or other key skilled position when work is
available. Bidders shall submit with their bids a list of all core crew
employees.
(i) Preference in contracting, subcontracting, employment, and
training shall apply not only on-site, on the reservation, or within the
IHA's jurisdiction, but also to contracts with firms that operate outside
these areas (e.g., employment in modular or manufactured housing
construction facilities).
(j) Bidders should contact the IHA to determine if any additional
local preference requirements are applicable to this solicitation.
(k) The IHA [ ] does [ ] does not [Contracting Officer check
applicable box] maintain lists of Indian-owned economic enterprises
and Indian organizations by specialty (e.g., plumbing, electrical,
foundations), which are available to bidders to assist them in meeting
their responsibility to provide preference in connection with the
administration of contracts and subcontracts.
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Previous edition is obsolete form HUD-5369-A (11/92)
Representations, Certifications,
and Other Statements of Bidders
Public and Indian Housing Programs
U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing
Previous edition is obsolete form HUD-5369-A (11/92)
Representations, Certifications,
and Other Statements of Bidders
Public and Indian Housing Programs
Table of Contents
Clause Page
1. Certificate of Independent Price Determination 1
2. Contingent Fee Representation and Agreement 1
3. Certification and Disclosure Regarding Payments
to Influence Certain Federal Transactions 1
4. Organizational Conflicts of Interest Certification 2
5. Bidder's Certification of Eligibility 2
6. Minimum Bid Acceptance Period 2
7. Small, Minority, Women-Owned Business Concern
Representation 2
8. Indian-Owned Economic Enterprise and Indian
Organization Representation 2
9. Certification of Eligibility Under the Davis-Bacon Act 3
10. Certification of Nonsegregated Facilities 3
11. Clean Air and Water Certification 3
12. Previous Participation Certificate 3
13. Bidder's Signature 3
1. Certificate of Independent Price Determination
(a) The bidder certifies that--
(1) The prices in this bid have been arrived at independently,
without, for the purpose of restricting competition, any consultation,
communication, or agreement with any other bidder or competitor
relating to (i) those prices, (ii) the intention to submit a bid, or (iii) the
methods or factors used to calculate the prices offered;
(2) The prices in this bid have not been and will not be
knowingly disclosed by the bidder, directly or indirectly, to any other
bidder or competitor before bid opening (in the case of a sealed bid
solicitation) or contract award (in the case of a competitive proposal
solicitation) unless otherwise required by law; and
(3) No attempt has been made or will be made by the bidder to
induce any other concern to submit or not to submit a bid for the
purpose of restricting competition.
(b) Each signature on the bid is considered to be a certification by
the signatory that the signatory--
(1) Is the person in the bidder's organization responsible for
determining the prices being offered in this bid or proposal, and that
the signatory has not participated and will not participate in any
action contrary to subparagraphs (a)(l) through (a)(3) above; or
(2) (i) Has been authorized, in writing, to act as agent for the
following principals in certifying that those principals have not
participated, and will not participate in any action contrary to
subparagraphs (a)(l) through (a)(3) above.
_______________________________________________ [insert
full name of person(s) in the bidder's organization responsible for
determining the prices offered in this bid or proposal, and the title of
his or her position in the bidder's organization];
(ii) As an authorized agent, does certify that the principals
named in subdivision (b)(2)(i) above have not participated, and will
not participate, in any action contrary to subparagraphs (a)(1)
through (a)(3) above; and
(iii) As an agent, has not personally participated, and will
not participate in any action contrary to subparagraphs (a)(1)
through (a)(3) above.
(c) If the bidder deletes or modifies subparagraph (a)2 above, the
bidder must furnish with its bid a signed statement setting forth in
detail the circumstances of the disclosure.
[ ] [Contracting Officer check if following paragraph is applicable]
(d) Non-collusive affidavit. (applicable to contracts for construction
and equipment exceeding $50,000)
(1) Each bidder shall execute, in the form provided by the PHA/
IHA, an affidavit to the effect that he/she has not colluded with any
other person, firm or corporation in regard to any bid submitted in
response to this solicitation. If the successful bidder did not submit
the affidavit with his/her bid, he/she must submit it within three (3)
working days of bid opening. Failure to submit the affidavit by that
date may render the bid nonresponsive. No contract award will be
made without a properly executed affidavit.
(2) A fully executed "Non-collusive Affidavit" [ ] is, [ ] is not
included with the bid.
2. Contingent Fee Representation and Agreement
(a) Definitions. As used in this provision:
"Bona fide employee" means a person, employed by a bidder
and subject to the bidder's supervision and control as to time, place,
and manner of performance, who neither exerts, nor proposes to
exert improper influence to solicit or obtain contracts nor holds out
as being able to obtain any contract(s) through improper influence.
"Improper influence" means any influence that induces or tends
to induce a PHA/IHA employee or officer to give consideration or to
act regarding a PHA/IHA contract on any basis other than the merits
of the matter.
(b) The bidder represents and certifies as part of its bid that, except
for full-time bona fide employees working solely for the bidder, the
bidder:
(1) [ ] has, [ ] has not employed or retained any person or
company to solicit or obtain this contract; and
(2) [ ] has, [ ] has not paid or agreed to pay to any person or
company employed or retained to solicit or obtain this contract any
commission, percentage, brokerage, or other fee contingent upon or
resulting from the award of this contract.
(c) If the answer to either (a)(1) or (a)(2) above is affirmative, the
bidder shall make an immediate and full written disclosure to the
PHA/IHA Contracting Officer.
(d) Any misrepresentation by the bidder shall give the PHA/IHA the
right to (1) terminate the contract; (2) at its discretion, deduct from
contract payments the amount of any commission, percentage,
brokerage, or other contingent fee; or (3) take other remedy
pursuant to the contract.
3. Certification and Disclosure Regarding Payments to
Influence Certain Federal Transactions (applicable to
contracts exceeding $100,000)
(a) The definitions and prohibitions contained in Section 1352 of
title 31, United States Code, are hereby incorporated by reference
in paragraph (b) of this certification.
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6. Minimum Bid Acceptance Period
(a) "Acceptance period," as used in this provision, means the
number of calendar days available to the PHA/IHA for awarding a
contract from the date specified in this solicitation for receipt of bids.
(b) This provision supersedes any language pertaining to the
acceptance period that may appear elsewhere in this solicitation.
(c) The PHA/IHA requires a minimum acceptance period of
[Contracting Officer insert time period] calendar days.
(d) In the space provided immediately below, bidders may specify
a longer acceptance period than the PHA's/IHA's minimum requirement.
The bidder allows the following acceptance period:
calendar days.
(e) A bid allowing less than the PHA's/IHA's minimum acceptance
period will be rejected.
(f) The bidder agrees to execute all that it has undertaken to do, in
compliance with its bid, if that bid is accepted in writing within (1) the
acceptance period stated in paragraph (c) above or (2) any longer
acceptance period stated in paragraph (d) above.
7. Small, Minority, Women-Owned Business Concern
Representation
The bidder represents and certifies as part of its bid/ offer that it --
(a) [ ] is, [ ] is not a small business concern. "Small business
concern," as used in this provision, means a concern, including its
affiliates, that is independently owned and operated, not dominant
in the field of operation in which it is bidding, and qualified as a small
business under the criteria and size standards in 13 CFR 121.
(b) [ ] is, [ ] is not a women-owned business enterprise. "Womenowned
business enterprise," as used in this provision, means a
business that is at least 51 percent owned by a woman or women
who are U.S. citizens and who also control and operate the business.
(c) [ ] is, [ ] is not a minority business enterprise. "Minority
business enterprise," as used in this provision, means a business
which is at least 51 percent owned or controlled by one or more
minority group members or, in the case of a publicly owned business,
at least 51 percent of its voting stock is owned by one or more
minority group members, and whose management and daily operations
are controlled by one or more such individuals. For the purpose
of this definition, minority group members are:
(Check the block applicable to you)
[ ] Black Americans [ ] Asian Pacific Americans
[ ] Hispanic Americans [ ] Asian Indian Americans
[ ] Native Americans [ ] Hasidic Jewish Americans
8. Indian-Owned Economic Enterprise and Indian
Organization Representation (applicable only if this
solicitation is for a contract to be performed on a project for an
Indian Housing Authority)
The bidder represents and certifies that it:
(a) [ ] is, [ ] is not an Indian-owned economic enterprise.
"Economic enterprise," as used in this provision, means any commercial,
industrial, or business activity established or organized for
the purpose of profit, which is at least 51 percent Indian owned.
"Indian," as used in this provision, means any person who is a
member of any tribe, band, group, pueblo, or community which is
recognized by the Federal Government as eligible for services from
the Bureau of Indian Affairs and any "Native" as defined in the Alaska
Native Claims Settlement Act.
(b) [ ] is, [ ] is not an Indian organization. "Indian organization,"
as used in this provision, means the governing body of any Indian
tribe or entity established or recognized by such governing body.
Indian "tribe" means any Indian tribe, band, group, pueblo, or
(b) The bidder, by signing its bid, hereby certifies to the best of his
or her knowledge and belief as of December 23, 1989 that:
(1) No Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer
or employee of Congress, or an employee of a Member of Congress
on his or her behalf in connection with the awarding of a contract
resulting from this solicitation;
(2) If any funds other than Federal appropriated funds (including
profit or fee received under a covered Federal transaction) have
been paid, or will be paid, to any person for influencing or attempting
to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a
Member of Congress on his or her behalf in connection with this
solicitation, the bidder shall complete and submit, with its bid, OMB
standard form LLL, "Disclosure of Lobbying Activities;" and
(3) He or she will include the language of this certification in all
subcontracts at any tier and require that all recipients of subcontract
awards in excess of $100,000 shall certify and disclose accordingly.
(c) Submission of this certification and disclosure is a prerequisite
for making or entering into this contract imposed by section 1352,
title 31, United States Code. Any person who makes an expenditure
prohibited under this provision or who fails to file or amend the
disclosure form to be filed or amended by this provision, shall be
subject to a civil penalty of not less than $10,000, and not more than
$100,000, for each such failure.
(d) Indian tribes (except those chartered by States) and Indian
organizations as defined in section 4 of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450B) are exempt
from the requirements of this provision.
4. Organizational Conflicts of Interest Certification
The bidder certifies that to the best of its knowledge and belief and
except as otherwise disclosed, he or she does not have any
organizational conflict of interest which is defined as a situation in
which the nature of work to be performed under this proposed
contract and the bidder's organizational, financial, contractual, or
other interests may, without some restriction on future activities:
(a) Result in an unfair competitive advantage to the bidder; or,
(b) Impair the bidder's objectivity in performing the contract work.
[ ] In the absence of any actual or apparent conflict, I hereby certify
that to the best of my knowledge and belief, no actual or apparent
conflict of interest exists with regard to my possible performance of
this procurement.
5. Bidder's Certification of Eligibility
(a) By the submission of this bid, the bidder certifies that to the best
of its knowledge and belief, neither it, nor any person or firm which
has an interest in the bidder's firm, nor any of the bidder's subcontractors,
is ineligible to:
(1) Be awarded contracts by any agency of the United States
Government, HUD, or the State in which this contract is to be
performed; or,
(2) Participate in HUD programs pursuant to 24 CFR Part 24.
(b) The certification in paragraph (a) above is a material representation
of fact upon which reliance was placed when making award.
If it is later determined that the bidder knowingly rendered an
erroneous certification, the contract may be terminated for default,
and the bidder may be debarred or suspended from participation in
HUD programs and other Federal contract programs.
Page 2 of 3
Previous edition is obsolete form HUD-5369-A (11/92)
community including Native villages and Native groups (including
corporations organized by Kenai, Juneau, Sitka, and Kodiak) as
defined in the Alaska Native Claims Settlement Act, which is
recognized by the Federal Government as eligible for services from
the Bureau of Indian Affairs.
9. Certification of Eligibility Under the Davis-Bacon
Act (applicable to construction contracts exceeding $2,000)
(a) By the submission of this bid, the bidder certifies that neither it
nor any person or firm who has an interest in the bidder's firm is a
person or firm ineligible to be awarded contracts by the United States
Government by virtue of section 3(a) of the Davis-Bacon Act or 29
CFR 5.12(a)(1).
(b) No part of the contract resulting from this solicitation shall be
subcontracted to any person or firm ineligible to be awarded
contracts by the United States Government by virtue of section 3(a)
of the Davis-Bacon Act or 29 CFR 5.12(a)(1).
(c) The penalty for making false statements is prescribed in the U.
S. Criminal Code, 18 U.S.C. 1001.
10. Certification of Nonsegregated Facilities (applicable
to contracts exceeding $10,000)
(a) The bidder's attention is called to the clause entitled Equal
Employment Opportunity of the General Conditions of the Contract
for Construction.
(b) "Segregated facilities," as used in this provision, means any
waiting rooms, work areas, rest rooms and wash rooms, restaurants
and other eating areas, time clocks, locker rooms and other storage
or dressing areas, parking lots, drinking fountains, recreation or
entertainment areas, transportation, and housing facilities provided
for employees, that are segregated by explicit directive or are in fact
segregated on the basis of race, color, religion, or national origin
because of habit, local custom, or otherwise.
(c) By the submission of this bid, the bidder certifies that it does not
and will not maintain or provide for its employees any segregated
facilities at any of its establishments, and that it does not and will not
permit its employees to perform their services at any location under
its control where segregated facilities are maintained. The bidder
agrees that a breach of this certification is a violation of the Equal
Employment Opportunity clause in the contract.
(d) The bidder further agrees that (except where it has obtained
identical certifications from proposed subcontractors for specific
time periods) prior to entering into subcontracts which exceed
$10,000 and are not exempt from the requirements of the Equal
Employment Opportunity clause, it will:
(1) Obtain identical certifications from the proposed subcontractors;
(2) Retain the certifications in its files; and
(3) Forward the following notice to the proposed subcontractors
(except if the proposed subcontractors have submitted identical
certifications for specific time periods):
Notice to Prospective Subcontractors of Requirement for
Certifications of Nonsegregated Facilities
A Certification of Nonsegregated Facilities must be submitted before
the award of a subcontract exceeding $10,000 which is not exempt
from the provisions of the Equal Employment Opportunity clause of
the prime contract. The certification may be submitted either for
each subcontract or for all subcontracts during a period (i.e.,
quarterly, semiannually, or annually).
Note: The penalty for making false statements in bids is prescribed
in 18 U.S.C. 1001.
11. Clean Air and Water Certification (applicable to contracts
exceeding $100,000)
The bidder certifies that:
(a) Any facility to be used in the performance of this contract [ ]
is, [ ] is not listed on the Environmental Protection Agency List of
Violating Facilities:
(b) The bidder will immediately notify the PHA/IHA Contracting
Officer, before award, of the receipt of any communication from the
Administrator, or a designee, of the Environmental Protection
Agency, indicating that any facility that the bidder proposes to use
for the performance of the contract is under consideration to be
listed on the EPA List of Violating Facilities; and,
(c) The bidder will include a certification substantially the same as
this certification, including this paragraph (c), in every nonexempt
subcontract.
12. Previous Participation Certificate (applicable to
construction and equipment contracts exceeding $50,000)
(a) The bidder shall complete and submit with his/her bid the Form
HUD-2530, "Previous Participation Certificate." If the successful
bidder does not submit the certificate with his/her bid, he/she must
submit it within three (3) working days of bid opening. Failure to
submit the certificate by that date may render the bid nonresponsive.
No contract award will be made without a properly executed certificate.
(b) A fully executed "Previous Participation Certificate"
[ ] is, [ ] is not included with the bid.
13. Bidder's Signature
The bidder hereby certifies that the information contained in these
certifications and representations is accurate, complete, and
current.
__________________________________________________________________
(Signature and Date)
__________________________________________________________________
(Typed or Printed Name)
__________________________________________________________________
(Title)
__________________________________________________________________
(Company Name)
(Company Address)
Page 3 of 3
Page 1 of 7 Form HUD-5370-EZ (1/2014)
U.S. Department of Housing and Urban
Development
Office of Public and Indian Housing
OMB Approval No. 2577-0157 (exp. 11/30/2023)
General Contract Conditions for
Small Construction/Development
Contracts
See Page 7 for Burden Statement
Applicability. The following contract clauses are applicable and
must be inserted into small construction/development contrac ts,
greater than $2,000 but not more than $250,000.
1. Definitions
Terms used in this form are the same as defined in form HUD-5370
2. Prohibition Against Liens
The Contractor is prohibited from placing a lien on the PHA's
property. This prohibition shall apply to all subcontractors at any
tier and all materials suppliers. The only liens on the PHA's
property shall be the Declaration of Trust or other liens approved
by HUD.
3. Disputes
(a) Except for disputes arising under the Labor Standards clauses,
all disputes arising under or relating to this contract, including
any claims for damages for the alleged breach thereof which are
not disposed of by agreement, shall be resolved under this
clause.
(b) All claims by the Contractor shall be made in writing and
submitted to the Contracting Officer for a written decision. A
claim by the PHA against the Contractor shall be subject to a
written decision by the Contracting Officer.
(c) The Contracting Officer shall, within 30 days after receipt of
the request, decide the claim or notify the Contractor of the
date by which the decision will be made.
(d) The Contracting Officer's decision shall be final unless the
Contractor (1) appeals in writing to a higher level in the PHA
in accordance with the PHA's policy and procedures, (2) refers
the appeal to an independent mediator or arbitrator, or (3) files
suit in a court of competent jurisdiction. Such appeal must be
made within 30 days after receipt of the Contracting Officer's
decision.
(e) The Contractor shall proceed diligently with performance of this
contract, pending final resolution of any request for relief, claim,
appeal, or action arising under or relating to the contract, and
comply with any decision of the Contracting Officer.
4. Default
(a) If the Contractor refuses or fails to prosecute the work, or any
separable part thereof, with the diligence that will insure its
completion within the time specified in this contract, or any
extension thereof, or fails to complete said work within this
time, the Contracting Officer may, by written notice to the
Contractor, terminate the right to proceed with the work (or
separable part of the work) that has been delayed. In the event,
the PHA may take over the work and complete it by contract or
otherwise, and may take possession of and use any materials,
equipment, and plant on the work site necessary for completing
the work. The Contractor and its sureties shall be liable for any
damage to the PHA resulting from the Contractor's refusal or
failure to complete the work within the specified time, whether
or not the Contractor's right to proceed with the work is
terminated. This liability includes any increased costs incurred
. .
(b) The Contractor's right to proceed shall not be terminated or
the Contractor charged with damages under this clause if -
(1) The delay in completing the work arises from
unforeseeable causes beyond the control and without
the fault or negligence of the Contractor; and
(2) The Contractor, within 10 days from the beginning of such
delay notifies the Contracting Officer in writing of the
causes of delay. The Contracting Officer shall ascertain the
facts and the extent of the delay. If, in the judgment of the
Contracting Officer, the findings of Fact warrant such
action, time for completing the work shall be extended by
written modification to the contract The findings of the
Contracting Officer shall be reduced to a written decision
which shall be subject to the provisions of the Disputes
clause of this contract
(c) If, after termination of the Contractor's right to proceed, it is
determined that the Contractor was not in default, or that the
delay was excusable, the rights and obligation of the parties will
be the same as if the termination had been for convenience of
the PHA.
5. Termination for Convenience
(a) The Contracting Officer may terminate this contract in whole,
or in part, whenever the Contracting Officer determines that
such termination is in the best interest of the PHA. Any such
termination shall be effected by delivery to the Contractor of a
Notice of Termination specifying the extent to which the
performance of the work under the contract is terminated, and
the date upon which such termination becomes effective.
(b) If the performance of the work is terminated, either in whole or
in part, the PHA shall be liable to the Contractor for reasonable
and proper costs resulting from such termination upon the
receipt by the PHA of a properly presented claim setting out in
detail: (1) the total cost of the work performed to date of
termination less the total amount of contract payments made to
the Contractor; (2) the cost (including reasonable profit) of
settling and paying claims under subcontracts and material
orders for work performed and materials and supplies delivered
to the site, payment for which has not been made by the PHA to
the Contractor or by the Contractor to the subcontractor or
supplier; (3) the cost of preserving and protecting the work
already performed until the PHA or assignee takes possession
thereof or assumes responsibility therefore; (4) the actual or
estimated cost of legal and accounting services reasonably
necessary to prepare and present the termination claim to the
PHA; and (5) an amount constituting a reasonable profit on the
value of the work performed by the Contractor.
(c) The Contracting Officer will act on the Contractor's claim
within days (60 days unless otherwise indicated) of receipt of
the Contractor's claim.
(d) Any disputes with regard to this clause are expressly made
subject to the provisions of the Disputes clause of this contract
6. Insurance
(a) Before commencing work, the Contractor and each subcontractor
shall furnish the PHA with certificates of insurance
showing the following insurance is in force and will insure all
operations under the Contract.
Page 2 of 7
Form HUD-5370-EZ (1/2014)
(1) Workers' Compensation, in accordance with
state or Territorial Workers' Compensation laws.
(2) Commercial General Liability with a combined single limit
for bodily injury and property damage of not less than $ ________
[Contracting Officer insert amount] per occurrence to protect the
Contractor and each subcontractor against claims for bodily injury
or death and damage to the property of others. This shall cover the
use of all equipment, hoists, and vehicles on the site(s) not covered
by Automobile Liability under (3) below. If the Contractor has a
"claims-made" policy, then the following additional requirements
apply: the policy must provide a "retroactive date" which must be
on or before the execution date of the Contract; and the extended
reporting period may not be less than five years following the
completion date of the Contract
(3) Automobile Liability on owned and non -owned motor
vehicles used on the site(s) or in connection therewith for a
combined single limit for bodily injury and property damage of not
less than $ _____ [Contracting Officer insert amount] per
occurrence.
(b) Before commencing work, the Contractor shall furnish the PHA
with a certificate of insurance evidencing that Builder's Risk
(fire and extended coverage) Insurance on all work in place
and/or materials stored at the building site(s), including
foundations and building equipment, is in force. The Builder's
Risk Insurance shall be for the benefit of the Contractor and the
PHA as their interests may appear and each shall be named in
the policy or policies as an insured. The Contractor in installing
equipment supplied by the PHA shall carry insurance on such
equipment from the time the Contractor takes possession
thereof until the Contract work is accepted by the PHA. The
Builder's Risk Insurance need not be carried on excavations,
piers, footings, or foundations until such time as work on the
superstructure is started. It need not be carried on landscape
work. Policies shall furnish coverage at all times for the full
cash value of all completed construction, as well as materials in
place and/or stored at the site(s), whether or not partial payment
has been made by the PHA. The Contractor may terminate this
insurance on buildings as of the date taken over for occupancy
by the PHA. The Contractor is not required to carry Builder's
Risk Insurance for modernization work which does not involve
structural alterations or additions and where the PHA's existing
fire and extended coverage policy can be endorsed to include
such work.
(c) All insurance shall be carried with companies which are
financially responsible and admitted to do business in the State
in which the project is located. If any such insurance is due to
expire during the construction period, the Contractor (including
subcontractors, as applicable) shall not permit the coverage to
lapse and shall furnish evidence of coverage to the Contracting
Officer. All certificates of insurance, as evidence of coverage,
shall provide that no coverage may be canceled or non-renewed
by the insurance company until at least 30 days prior written
notice has been given to the Contracting Officer.
7. Contract Modifications
(a) Only the Contracting Officer has authority to modify any
term or condition of this contract. Any contract modification
shall be authorized in writing.
(b) The Contracting Officer may modify the contract unilaterally
(1) pursuant to a specific authorization stated in a contract
clause (e.g., Changes); or (2) for administrative matters which
do not change the rights or responsibilities of the parties (e.g.,
change in the PHA address). All other contract modifications
shall be in the form of supplemental agreements signed by the
Contractor and the Contracting Officer.
(c) When a proposed modification requires the approval of HUD
prior to its issuance (e.g., a change order that exceeds the
PHA's approved threshold), such modification shall not be
effective until the required approval is received by the PHA.
8. Changes
(a) The Contracting Officer may, at any time, without notice to the
sureties, by written order designated or indicated to be a change
order, make changes in the work within the general scope of the
contract including changes:
(1) In the specifications (including drawings and designs);
(2) In the method or manner of performance of the work;
(3) PHA-furnished facilities, equipment, materials, services,
or site; or,
(4) Directing the acceleration in the performance of the work (b) Any
other written order or oral order (which, as used in this paragraph
(b), includes direction, instruction, interpretation, or
determination) from the Contracting Officer that causes a change
shall be treated as a change order under this clause; provided, that
the Contractor gives the Contracting Officer written notice stating
(1) the date, circumstances and source of the order and (2) that the
Contractor regards the order as a change order.
(c) Except as provided in this clause, no order, statement or conduct
of the Contracting Officer shall be treated as a change under this
clause or entitle the Contractor to an equitable adjustment.
(d) Many change under this clause causes an increase or decrease in
the Contractor's cost of, or the time required for the performance
of any part of the work under this contract, whether or not
changed by any such order, the Contracting Officer shall make
an equitable adjustment and modify the contract in writing.
However, except for a adjustment based on defective
specifications, no proposal for any change under paragraph (b)
above shall be allowed for any costs incurred more than 20 days
(5 days for oral orders) before the Contractor gives written
notice as required. In the case of defective specifications for
which the PHA is responsible, the equitable adjustment shall
include any increased cost reasonably incurred by the Contractor
in attempting to comply with the defective
specifications.
( ) The Contractor must assert its right to an adjustment under this
clause within 30 days after (1) receipt of a written change order
under paragraph (a) of this clause, or (2) the fiunishing of a
written notice under paragraph (b) of this clause, by submitting a
written statement describing the general nature and the amount of
the proposal. If the facts justify it, the Contracting Officer may
extend the period for submission. The proposal may be included
in the notice required under paragraph (b) above. No proposal by
the Contractor for an equitable adjustment shall be allowed if
asserted after final payment under this
contract
(e) The Contractor's written proposal for equitable adjustment shall
be submitted in the form of a lump sum proposal supported
with an itemized breakdown of all increases and decreases in
the contract in at least the following details:
(1) Direct Costs. Materials (list individual items, the quantity
and unit cost of each, and the aggregate cost); Transportation
and delivery costs associated with materials; Labor
Page 3 of 7
Form HUD-5370-EZ (1/2014)
breakdowns by hours or unit costs (identified with specific
work to be performed); Construction equipment exclusively
necessary for the change; Costs of preparation and/ or
revision to shop drawings resulting from the change;
Worker's Compensation and Public Liability Insurance;
Employment taxes under FICA and FUTA; and, Bond Costs
- when size of change warrants revision.
(2) Indirect Costs. Indirect costs may include overhead, general
and administrative expenses, and fringe benefits not
normally treated as direct costs.
(3) Profit. The amount of profit shall be negotiated and may
vary according to the nature, extent, and complexity of the
work required by the change.
The allowability of the direct and indirect costs shall be determined
in accordance with the Contract Cost Principles and Procedures for
Commercial Firms in Part 31 of the Federal Acquisition Regulation
(48 CFR 1-31), as implemented by HUD Handbook 2210.18, in
effect on the date of this contract. The Contractor shall not be
allowed a profit on the profit received by any subcontractor.
Equitable adjustments for deleted work shall include a credit for
profit and may include a credit for indirect costs. On proposals
covering both increases and decreases in the amount of the contract,
the application of indirect costs and profit shall be on the net-change
in direct costs for the Contractor or subcontractor
performing the work
(g) The Contractor shall include in the proposal its request for time
extension (if any), and shall include sufficient information and
dates to demonstrate whether and to what extent the change will
delay the completion of the contract in its entirety.
(h) The Contracting Officer shall act on proposals within 30
days after their receipt, or notify the Contractor of the date
when such action will be taken.
(i) Failure to reach an agreement on any proposal shall be a dispute
under the clause entitled Disputes herein. Nothing in this
clause, however, shall excuse the Contractor from proceeding
with the contract as changed.
(j) Except in an emergency endangering life or property, no change
shall be made by the Contractor without a prior order from the
Contracting Officer.
9. Examination and Retention of Contractor's Records
The HA, HUD, or Comptroller General of the United States, or
any of their duly authorized representatives shall, until three years
after final payment under this contract, have access to and the right
to examine any of the Contractor's directly pertinent books,
documents, papers, or other records involving transactions related
to this contract for the purpose of making audit, examination,
excerpts, and transcriptions.
10. Rights in Data and Patent Rights (Ownership
and Proprietary Interest)
The HA shall have exclusive ownership of, all proprietary interest
in, and the right to full and exclusive possession of all information,
materials, and documents discovered or produced by Contractor
pursuant to the terms of this Contract, including but not limited to
reports, memoranda or letters concerning the research and
reporting tasks of this Contract.
11. Energy Efficiency
The Contractor shall comply with all mandatory standards and
policies relating to energy efficiency which are contained in the
energy conservation plan issued in compliance with the Energy
Policy and Conservation Act (Pub.L. 94-163) for the State in which
the work under this contract is performed.
12. Procurement of Recovered Materials
(a) In accordance with Section 6002 of the Solid Waste Disposal
Act, as amended by the Resource Conservation and Recovery
Act, the Contractor shall procure items designated in guidelines
of the Environmental Protection Agency (EPA) at 40 CFR Part
247 that contain the highest percentage of recovered materials
practicable, consistent with maintaining a satisfactory level of
competition. The Contractor shall procure items designated in
the EPA guidelines that contain the highest percentage of
recovered materials practicable unless the Contractor
determines that such items: (1) are not reasonably available in a
reasonable period of time; (2) fail to meet reasonable
performance standards, which shall be determined on the basis
of the guidelines of the National Institute of Standards and
Technology, if applicable to the item; or (3) are only available
at an unreasonable price.
(b) Paragraph (a) of this clause shall apply to items purchased
under this contract where: (1) the Contractor purchases in
excess of $10,000 of the item under this contract; or (2) during
the preceding Federal fiscal year, the Contractor: (i) purchased
any amount of the items for use under a contract that was
funded with Federal appropriations and was with a Federal
agency or a State agency or agency of a political subdivision of
a State; and (ii) purchased a total of in excess of $10,000 of the
item both under and outside that contract
13. Training and Employment Opportunities for Residents in the
Project Area (Section 3, HUD Act of 1968; 24 CFR 75)
(a) The work to be performed under this contract is subject to the
requirements of section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701u
(section 3). The purpose of section 3 is to ensure that
employment and other economic opportunities generated by
HUD assistance or HUD-assisted projects covered by section 3,
shall, to the greatest extent feasible, be directed to low- and
very low-income persons, particularly persons who are
recipients of HUD assistance for housing.
(b) The parties to this contract agree to comply with HUD's
regulations in 24 CFR Part 75, which implement section 3. As
evidenced by their execution of this contract, the parties to this
contract certify that they are under no contractual or other
impediment that would prevent them from complying with the
Part 75 regulations.
(c) The contractor agrees to send to each labor organization or
representative of workers with which the contractor has a
collective bargaining agreement or other understanding, if any,
a notice advising the labor organization or workers'
representative of the contractor's commitments under this
section 3 clause, and will post copies of the notice in
conspicuous places at the work site where both employees and
applicants for training and employment positions can see the
notice. The notice shall describe the section 3prioritization
requirements, and shall state the minimum percentages of labor
hour requirements established in the Benchmark Notice (FR-
6085-N-04).
Page 4 of 7 Form HUD-5370-EZ (1/2014)
.
(d) The contractor agrees to include this section 3 clause in every
subcontract subject to compliance with regulations in 24 CFR
Part 75, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this section 3
clause, upon a finding that the subcontractor is in violation of
the regulations in 24 CFR Part 75. The contractor will not
subcontract with any subcontractor where the contractor has
notice or knowledge that the subcontractor has been found in
violation of the regulations in 24 CFR Part 75.
(e) .Noncompliance with HUD's regulations in 24 CFR Part 75
may result in sanctions, termination of this contract for default,
and debarment or suspension from future HUD assisted
contracts.
(f) Contracts, subcontracts, grants, or subgrants subject to
Section 7(b) of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 5307(b)) or subject to tribal
preference requirements as authorized under 101(k) of the
Native American Housing Assistance and Self-Determination
Act (25 U.S.C. 4111(k)) must provide preferences in
employment, training, and business opportunities to Indians
and Indian organizations, and are therefore not subject to the
requirements of 24 CFR Part 75.
14. Labor Standards - Davis-Bacon and Related Acts
(a) Minimum Wages.
(1) All laborers and mechanics employed under this contract in
the construction or development of the project(s) involved will
be paid unconditionally and not less often than once a week,
and without subsequent deduction or rebate on any account
(except such payroll deductions as are permitted by regulations
issued by the Secretary of Labor under the Copeland Act (29
CFR Part 3)), the full amount of wages and bona fide fringe
benefits (or cash equivalents thereof) due at time of payment
computed at rates not less than those contained in the wage
determination of the Secretary of Labor which is attached
hereto and made a part hereof, regardless of any contractual
relationship which may be alleged to exist between the
Contractor and such laborers and mechanics. Contributions
made or costs reasonably anticipated for bona fide fringe
benefits under Section 1(b)(2) of the Davis-Bacon Act on
behalf of laborers or mechanics are considered wages paid to
such laborers or mechanics, subject to the provisions of 29 CFR
5.5(a)(1)(iv); also, regular contributions made or costs incurred
for more than a weekly period (but not less often than
quarterly) under plans, funds, or programs which cover the
regular weekly period, are deemed to be constructively made or
incurred during such weekly period. Such laborers and
mechanics shall be paid the appropriate wage rate and fringe
benefits in the wage determination for the classification of work
actually performed, without regard to skill, except as provided
in 29 CFR 5.5(a)(4). Laborers or mechanics performing work in
more than one classification may be compensated at the rate
specified for each classification for the time actually worked
therein; provided, that the employer's payroll records accurately
set forth the time spent in each classification in which work is
performed. The wage determination (including any additional
classification and wage rates conformed under 29 CFR
5.5(a)(1)(ii) and the Davis-Bacon poster (WH-1321) shall be
posted at all times by the Contractor and its subcontractors at
the site of the work in
a prominent and accessible place where it can be easily
seen by the workers.
(2) (i) Any class of laborers or mechanics, including helpers,
which is not listed in the wage determination and which
is to be employed under the contract shall be classified
in conformance with the wage determination. HUD
shall approve an additional classification and wage rate
and fringe benefits therefor only when all the following
criteria have been
met:
(a) The work to be performed by the classification
requested is not performed by a classification in
the wage determination; and
(b) The classification is utilized in the area by
the construction industry; and
(c) The proposed wage rate, including any bona fide
fringe benefits, bears a reasonable relationship to
the wage rates contained in the wage
detemination.
(ii) If the Contractor and the laborers and mechanics to be
employed in the classification (if known), or their
representatives, and HUD or its designee agree on the
classification and wage rate (including the amount
designated for fringe benefits where appropriate), a
report of the action shall be sent by HUD or its
designee to the Administrator of the Wage and Hour
Division, Employee Standards Administration, U.S.
Department of Labor, Washington, DC 20210. The
Administrator, or an authorized representative, will
approve, modify, or disapprove every additional
classification action within 30 days of receipt and so
advise HUD or its designee or will notify HUD or its
designee within the 30-day period that additional time
is necessary.
(iii) In the event the Contractor, the laborers or mechanics
to be employed in the classification or their
representatives, and HUD or its designee do not agree
on the proposed classification and wage rate (including
the amount designated for fringe benefits, where
appropriate), HUD or its designee shall refer the
questions, including the views of all interested parties
and the recommendation of HUD or its designee, to the
Administrator of the Wage and Hour Division for
determination. The Administrator, or an authorized
representative, will issue a determination within 30
days of receipt and so advise HUD or its designee or
will notify HUD or its designee within the 30-day
period that additional time is necessary.
(iv) The wage rate (including fringe benefits where
appropriate) determined pursuant to subparagraphs
(a)(2)(ii) or (iii) of this clause shall be paid to all
workers performing work in the classification
under this contract from the first day on which
work is performed in the classification.
(3) Whenever the minimum wage rate prescribed in the
contract for a class of laborers or mechanics includes a
fringe benefit which is not expressed as an hourly rate,
the Contractor shall either pay the benefit as stated in the
wage determination or shall pay another bona fide fringe
benefit or an hourly cash equivalent thereof.
(4) If the Contractor does not make payments to a trustee
or other third person, the Contractor may consider as part
Page 5 of 7 Form HUD-5370-EZ (1/2014)
of the wages of any laborer or mechanic the amount of
any costs reasonably anticipated in providing bona fide
fringe benefits under a plan or program; provided, that
the Secretary of Labor has found, upon the written
request of the Contractor, that the applicable standards
of the Davis-Bacon Act have been met. The Secretary of
Labor may require the Contractor to set aside in a
separate account assets for the meeting of obligations
under the plan or program.
(b) Withholding of Funds. HUD or its designee shall, upon its
own action or upon written request of an authorized
representative of the Department of Labor, withhold or
cause to be withheld from the Contractor under this
contract or any other Federal contract with the same
prime Contractor, or any other Federally-assisted contract
subject to Davis-Bacon prevailing wage requirements,
which is held by the same prime Contractor, so much of
the accrued payments or advances as may be considered
necessary to pay laborers and mechanics, including
apprentices, trainees, and helpers, employed by the
Contractor or any subcontractor the full amount of wages
required by the contract. In the event of failure to pay any
laborer or mechanic, including any apprentice, trainee, or
helper, employed or working in the construction or
development of the project, all or part of the wages
required by the contract, HUD or its designee may, after
written notice to the Contractor, take such action as may
be necessary to cause the suspension of any further
payment, advance, or guarantee of funds until such
violations have ceased. HUD or its designee may, after
written notice to the Contractor, disburse such amounts
withheld for and on account of the Contractor or
subcontractor to the respective employees to whom they
are due.
(c) Payrolls and Basic Records.
(1) Payrolls and basic records relating thereto shall be
maintained by the Contractor during the course of the work
and preserved for a period of three years thereafter for all
laborers and mechanics working in the construction or
development of the project. Such records shall contain the
name, address, and social security number of each such
worker, his or her correct classification, hourly rates of
wages paid (including rates of contributions or costs
anticipated for bona fide fringe benefits or cash equivalents
thereof of the types described in section 1(b)(2)(B) of the
Davis-Bacon Act), daily and weekly number of hours
worked, deductions made, and actual wages paid. Whenever
the Secretary of Labor has found, under 29 CFR
5.5(a)(1)(iv), that the wages of any laborer or mechanic
include the amount of costs reasonably anticipated in
providing benefits under a plan or program described in
section 1(b)(2)(B) of the Davis-Bacon Act, the Contractor
shall maintain records which show that the commitment to
provide such benefits is enforceable, that the plan or
program is financially responsible, and that the plan or
program has been communicated in writing to the laborers or
mechanics affected, and records which show the costs
anticipated or the actual cost incurred in providing such
benefits. Contractors employing apprentices or trainees
under approved programs shall maintain written evidence of
the registration of apprenticeship programs and certification
of trainee programs, the registration of the apprentices and
trainees, and the ratios and wage rates prescribed in the
applicable programs.
(2) (i) The Contractor shall submit weekly for each week in which
any contract work is performed a copy of all payrolls to the
Contracting Officer for transmission to HUD or its designee.
The payrolls submitted shall set out accurately and
completely all of the information required to be maintained
under subparagraph (c)(1) of this clause. This information
may be submitted in any form desired. Optional Form WH-
347 (Federal Stock Number 029-005-00014-1) is available
for this purpose and may be purchased from the
Superintendent of Documents, U.S. Government Printing
Office, Washington, D.C. 20402. The prime Contractor is
responsible for the submission of copies of payrolls by all
subcontractors. (Approved by the Office of Management and
Budget under OMB Control Number 1214-0149.)
(ii) Each payroll submitted shall be accompanied by a
"Statement of Compliance," signed by the contractor or
subcontractor or his or her agent who pays or supervises
the payment of the persons employed under the contract
and shall certify the following:
(A) That the payroll for the payroll period contains the
information required to be maintained under paragraph
(c)(1) of this clause and that such information is
correct and complete;
(B) That each laborer or mechanic (including each
helper, apprentice, and trainee) employed on the
contract during the payroll period has been paid the
full weekly wages earned, without rebate, either
directly or indirectly, and that no deductions have
been made either directly or indirectly from the full
wages earned, other than permissible deductions as
set forth in 29 CFR Part 3; and
(C) That each laborer or mechanic has been paid not
less than the applicable wage rates and fringe
benefits or cash equivalents for the classification of
work performed, as specified in the applicable wage
determination incorporated into the contract
(iii) The weekly submission of a properly executed
certification set forth on the reverse side of Optional Form
WH-347 shall satisfy the requirements for submission of
the "Statement of Compliance" required by subparagraph
(c)(2)(ii) of this clause.
(iv) The falsification of any of the above certifications may
subject the Contractor or subcontractor to civil or criminal
prosecution under Section 1001 of Title 18 and Section
3729 of Title 31 of the United States Code.
(3) The Contractor or subcontractor shall make the records required
under subparagraph (c)(1) available for inspection, copying, or
transcription by authorized representatives of HUD or its
designee, the Contracting Officer, or the Department of Labor
and shall permit such representatives to interview employees
during working hours on the job. If the Contractor or
subcontractor fails to submit the required records or to make
them available, HUD or its designee may, after written notice to
the Contractor, take such action as may be necessary to cause the
suspension of any further payment, advance, or guarantee of
funds. Furthermore, failure to submit the required records upon
request or to make such records available may be grounds for
debarment action pursuant to 29 CFR 5.12.
Page 6 of 7
Form HUD-5370-EZ (1/2014)
(d) Apprentices. Apprentices will be permitted to work at less
than the predetermined rate for the work they performed when
they are employed pursuant to and individually registered in a
bona fide apprenticeship program registered with the U.S.
Department of Labor, Employment and Training
Administration, Office of Apprenticeship Training, Employer
and Labor Services (OATELS), or with a State Apprenticeship
Agency recognized by OATELS, or if a person is employed in
his or her first 90 days of probationary employment as an
apprentice in such an apprenticeship program, who is not
individually registered in the program, but who has been
certified by OATELS or a State Apprenticeship Agency (where
appropriate) to be eligible for probationary employment as an
apprentice.
The allowable ratio of apprentices to journeymen on the job
site in any craft classification shall not be greater than the ratio
permitted to the Contractor as to the entire work force under
the registered program. Any worker listed on a payroll at an
apprentice wage rate, who is not registered or otherwise
employed as stated in this paragraph, shall be paid not less
than the applicable wage rate on the wage determination for
the classification of work actually performed. In addition, any
apprentice performing work on the job site in excess of the
ratio permitted under the registered program shall be paid not
less than the applicable wage rate on the wage determination
for the work actually performed. Where a contractor is
performing construction on a project in a locality other than
that in which its program is registered, the ratios and wage
rates (expressed in percentages of the journeyman's hourly
rate) specified in the Contractor's or subcontractor's registered
program shall be observed. Every apprentice must be paid at
not less than the rate specified in the registered program for
the apprentice's level of progress, expressed as a percentage of
the journeyman hourly rate specified in the applicable wage
determination. Apprentices shall be paid fringe benefits in
accordance with the provisions of the apprenticeship program.
If the apprenticeship program does not specify fringe benefits,
apprentices must be paid the full amount of fringe benefits
listed on the wage determination for the applicable
classification. If the Administrator of the Wage and Hour
Division determines that a different practice prevails for the
applicable apprentice classification, fringes shall be paid in
accordance with that determination. In the event OATELS, or
a State Apprenticeship Agency recognized by OATELS,
withdraws approval of an apprenticeship program, the
Contractor will no longer be permitted to utilize apprentices at
less than the applicable predetermined rate for the work
performed until an acceptable program is approved.
(e) Trainees. Except as provided in 29 CFR 5.16, trainees will not
be permitted to work at less than the predetermined rate for the
work performed unless they are employed pursuant to and
individually registered in a program which has received prior
approval, evidenced by formal certification by the U.S.
Department of Labor, Employment and Training
Administration. The ratio of trainees to journeymen on the job
site shall not be greater than permitted under the plan
approved by the Employment and Training Administration.
Every trainee must be paid at not less than the rate specified in
the approved program for the trainee's level of progress,
expressed as a percentage of the journeyman hourly rate
specified in the applicable wage determination. Trainees shall be
paid fringe benefits in accordance with the provisions of the
trainee program. If the trainee program does not mention fringe
benefits, trainees shall be paid the full amount of fringe benefits
listed in the wage determination unless the Administrator of the
Wage and Hour Division determines that there is an
apprenticeship program associated with the corresponding
journeyman wage rate in the wage determination which provides
for less than full fringe benefits for apprentices. Any employee
listed on the payroll at a trainee rate who is not registered and
participating in a training plan approved by the Employment and
Training Administration shall be paid not less than the
applicable wage rate in the wage determination for the
classification of work actually performed. In addition, any
trainee performing work on the job site in excess of the ratio
permitted under the registered program shall be paid not less
than the applicable wage rate in the wage determination for the
work actually performed. In the event the Employment and
Training Administration withdraws approval of a training
program, the Contractor will no longer be permitted to utilize
trainees at less than the applicable predetermined rate for the
work performed until an acceptable program is approved.
(f) Equal Employment Opportunity. The utilization of
apprentices, trainees, and journeymen under this clause shall
be in conformity with the equal employment opportunity
requirements of Executive Order 11246, as amended, and 29
CFR Part 30.
(g) Compliance with Copeland Act Requirements. The Contractor
shall comply with the requirements of 29 CFR Part 3, which
are hereby incorporated by reference in this contract
(h) Contract Termination; Debarment. A breach of the labor
standards clauses in this contract may be grounds for
termination of the contract and for debarment as a
Contractor and a subcontractor as provided in 29 CFR 5.12.
(i) Compliance with Davis-Bacon and related Act
Requirements. All rulings and interpretations of the Davis-
Bacon and related Acts contained in 29 CFR Parts 1, 3, and
5 are herein incorporated by reference in this contract
(j) Disputes Concerning Labor Standards. Disputes arising out of
the labor standards provisions of this clause shall not be subject
to the general disputes clause of this contract. Such disputes
shall be resolved in accordance with the procedures of the
Department of Labor set forth in 29 CFR Parts 5, 6, and 7.
Disputes within the meaning of this clause include disputes
between the Contractor (or any of its subcontractors) and the
PHA, HUD, the U.S. Department of Labor, or the employees or
their representatives.
(k) Certification of Eligibility.
(1) By entering into this contract, the Contractor certifies that
neither it (nor he or she) nor any person or firm who has an
interest in the Contractor's firm is a person or firm
ineligible to be awarded contracts by the United States
Government by virtue of section 3(a) of the Davis-Bacon
Act or 29 CFR 5.12(a)(1).
(2) No part of this contract shall be subcontracted to any person
or firm ineligible for award of a United States Government
Page 7 of 7 Form HUD-5370-EZ (1/2014)
contract by virtue of section 3(a) of the Davis-Bacon Act or
29 CFR 5.12(a)(1).
(3) The penalty for making false statements is prescribed in the
U. S. Criminal Code, 18 U.S.C. 1001.
(1) Subcontracts. The Contractor or subcontractor shall insert in
any subcontracts all the provisions contained in this clause, and
such other clauses as HUD or its designee may by appropriate
instructions require, and also a clause requiring the
subcontractors to include these provisions in any lower tier
subcontracts. The prime Contractor shall be responsible for the
compliance by any subcontractor or lower tier subcontractor
with all these provisions.
(m) Non-Federal Prevailing Wage Rates. Any prevailing wage
rate (including basic hourly rate and any fringe benefits),
determined under State law to be prevailing, with respect to any
employee in any trade or position employed under the contract,
is inapplicable to the contract and shall not be enforced against
the Contractor or any subcontractor, with respect to employees
engaged under the contract whenever such non-Federal
prevailing wage rate exceeds:
(i) the applicable wage rate determined by the Secretary of
Labor pursuant to the Davis-Bacon Act (40 U.S.C. 3141 et
seq.) to be prevailing in the locality with respect to such
trade;
(ii) an applicable apprentice wage rate based thereon specified
in an apprenticeship program registered with the U.S.
Department of Labor (DOL) or a DOL-recognized State
Apprenticeship Agency; or
(iii) an applicable trainee wage rate based thereon specified in
a DOL-certified trainee program.
Public reporting burden for this collection of information is estimated to average 1 hour. This includes the time for
collecting, reviewing, and reporting the data. The information requested is required to obtain a benefit. This form
includes those clauses required by OMB's common rule on grantee procurement, implemented at HUD in 2 CFR 200, and
those requirements set forth in Section 3 of the Housing and Urban Development Act of 1968 and its amendment by the
Housing and Community Development Act of 1992, implemented by HUD at 24 CFR Part 7575. The form is required for
construction contracts awarded by Public Housing Agencies (PHAs). The form is used by Housing Authorities in so
licitations to provide necessary contract clauses. If the form were not used, PHAs would be unable to enforce their
contracts.. There are no assurances of confidentiality. HUD may not conduct or sponsor, and an applicant is not required
to respond to a collection of information unless it displays a currently valid OMB control number.
BID FORM
CAPITAL IMPROVEMENT PROJECT AR37P01250119
FROM: TO:
___________________________________ Housing Authority of the City of Little Rock
NAME OF BIDDER NAME OF PHA
___________________________________ 670 South 6th Street
ADDRESS ADDRESS
___________________________________ Arkadelphia, AR 71923
CITY STATE ZIP CITY STATE ZIP
Bidders:
1. The Undersigned, having familiarized______________________________ with the local
(name/names)
conditions affecting the cost of the work, and with the Specifications/Bid Documents including the
Invitations for Bids, Instructions to Bidders, this bid, the form of Bid Bond, the form of Non-
Collusive Affidavit, the form of Contract, and the form of the Arkansas Performance and Payment
Bond(s), the General Conditions and Amendments to, the Scope of Work and the Technical
Specifications and Wage Rates) and addenda, if any thereto, hereby proposes to furnish all labor,
materials, equipment, and services required to COMPLETE "Capital Improvement Project
AR37P012501-19 and AR37P012501-20 On the buildings located at ____________________all in
accordance therewith, for the sum of:
BASE BID: ($______________ )Dollars
2. In submitting this bid, it is understood that the right is reserved by the PHA to reject any and all
bids. If written notice of the acceptance of this bid is mailed, telegraphed, or delivered to the
undersigned within sixty (60) days after the opening thereof, at any time thereafter before this bid
is withdrawn, the undersigned agrees to execute and deliver a contract in the prescribed form and
furnish the required Performance and Payment Bond within ten (10) days after the contract is
presented for signature.
3. Security in the sum of _________________________________________________Dollars
($ ____________________), in the form of ______________________________________ is
submitted herewith in accordance with the Specifications.
4. That if awarded the Contract, the Bidder hereby agrees to fully complete the contract within
one hundred twenty (90) consecutive calendar days after the date of the "Notice to Proceed" and
should he/she fail to fully complete the work within the above stated time, he/she shall pay the
PHA as fixed, agreed and liquidated damages and not as a penalty, the sum of one hundred twentyfive
dollars ($125.00) for each calendar day of delay until the work is completed and accepted.
5. Attached hereto is an affidavit in proof that the undersigned has not entered into any collusion
with any person in respect to this proposal or any other proposal or the submitting of proposals for
the contract for which this proposal is submitted.
6. The Bidder represents that he/she ( _____________) has, (_______________ ) has not,
participated in a previous contract or subcontracts subject to the equal opportunity clause
prescribed by Executive Orders 1092, 11114, 11246 or the Secretary of Labor; that he/ she
(______________ ) has, ( ___________________ ) has not, filed all required compliance reports,
signed by proposed subcontractors, will be obtained prior to the subcontract awards. (The above
representation need not be submitted in connection with contracts or subcontracts, which are
exempt from the clause.
7. Certification of Non-segregated Facilities: By signing this bid, the bidder certifies that he/she does
not maintain or provide for his employees any segregated facilities at any of his establishments,
and he does not permit his employees to perform their services at any locations, under his/her
control, where segregated facilities are maintained. He certifies further that he/she will not
maintain or provide for his/ her employees any segregated facilities at any of his/her
establishments, and that he/she will not permit his employees to perform their services at any
locations, under his/her control, where segregated facilities are maintained. The Bidder agrees
that a breach of this certification is a violation of the equal opportunity clause in this contract. As
used in this certification, the term "segregated facilities" means any waiting room, work areas,
restrooms, and wash rooms, restaurants and other eating areas, time clocks, locker rooms, and
other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas,
transportation, and housing facilities provided for employees which are segregated by explicit
directive or are in fact segregated on the basis of race, color, religion, or national origin, because of
habit, local custom, or otherwise. He/She further agrees that (except where he has obtained
identical certifications from proposed subcontractors for specific time periods) he will obtain
subcontractors exceeding ten-thousand dollars ($10,000) which are not exempt from the
provisions of the equal opportunity clause; that he will retain such certifications in his files; and
that he will forward a notice to his proposed subcontractors as provided in the Instructions to
Bidders.
8. The Bidder proposes to subcontract the following portions of the Contract: TRADES:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
9. Listed below are all bidders' partners (or members of the corporation):
NAME TITLE ADDRESS
_____________________ _____________________ ________________________
_____________________ _____________________ ________________________
NOTE: The penalty for making false statements in offers is prescribed in 18 U.S.C. 1001.
10. The undersigned acknowledges receipt and inclusion as a part of the Contract Documents the
following addenda:
Addendum Number Dated
________________ _______________
________________ _______________
________________ _______________
By signing this BID FORM the bidder Certifies that to the best of its knowledge and belief that neither
the bidder or any of its principals are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from award of contracts with the Department of Housing
and Urban Development or any other agency of the U.S. Government.
DATE: _______________, 20_____ ____________________________________
(Type Name of Bidder)
____________________________________
(Arkansas License No.)
OFFICIAL ADDRESS:
BY:
TITLE:
ARKANSAS PERFORMANCE AND PAYMENT BOND
(14-604 ARKANSAS STATUTES)
KNOW ALL MEN BY THESE PRESENTS: That we (1)_____________________________
a (2)______________________________________________ hereinafter called "Principal" and
(3)__________________________________ of _____________________________, State of
___________________________, hereinafter called the "Surety", are held and firmly bound unto
(4) Housing Authority of the City of Arkadelphia, hereinafter called "Owner" in the penal sum of
__________________________________________________Dollars ($ _____________) in
lawful money of the United States, for the payment of which sum well and truly to be made, said
Principals and Surety bind themselves, their heirs, administrators, executors, successors, and
assigns, jointly and severally, by these presents.
THE CONDITION OF THIS OBLIGATION is such that whereas, the Principal entered into a
certain contract with the Owner, dated the _______ day of _______________, 20 _____, a copy of
which is attached and made a part hereof the construction of: ______________________________
______________________________________________________________________________
________________________________________________________________________
NOW, THEREFORE, As the Principals shall well, truly, and faithfully perform its duties, all
the undertakings, covenants, terms, conditions, and agreement of said contract during the original
term thereof, and any extensions there of which may be granted by the Owner, with or without
notice to the Surety, and if he shall satisfy all claims and demands incurred under such contract,
and shall fully indemnify and save harmless the Owner from all costs and damages which it may
suffer by reason of failure to do so, and shall reimburse and repay the Owner all outlay and expense
which the Owner may incur in making good any default, and shall promptly make payment of all
persons, firms, subcontractors, and corporations furnishing materials for or performing labor in the
prosecution of the work provided for in such contract, and any authorized extensions or
modification thereof , all amounts due for but not limited to, materials, lubricants, oil, gasoline,
coal, and coke, repair on machinery, equipment and tolls, consumed or used in connection with the
construction of said work, fuel oil, camp equipment, food for men, feed for animals, premium for
bonds and liability and workmen's compensation insurance, rentals on machinery, equipment, and
draft animals; also for taxes or payments due the State of Arkansas or any political subdivisions
thereof which shall have arisen on account of or in connection with the wages earned by workmen
covered by the bond; and all labor, performed in such work whether by subcontractor or otherwise,
then this obligation shall be void, otherwise to remain in full force and effect.
The Surety agrees the terms of this bond shall cover the payment by the principal of not less
than the prevailing hourly rate of wages as found by the Arkansas Department of Labor or as
determined by the court on appeal to all workmen performing work under the contract.
PROVIDED FURTHER, the said Surety, for value received hereby stipulates and agrees that
no change, extension of time, alteration, or addition to the terms of the contract or to the work to
be performed thereunder of the specifications accompanying the same shall in any wise affect its
1 Correct name of the Contractor
2 A corporation, a partnership, an individual, as case maybe
3 Correct name of Surety
4 Correct Name of Owner
obligation on this bond, and it does hereby waive notice of any such change, extension of time,
alteration or addition to the terms of the contract as to the work or to the specifications.
PROVIDED FURTHER, that no final settlement between the owner and the contractor shall
abridge the right of any beneficiary hereunder, whose claim may be unsatisfied.
IN WITNESS WHEREOF, this instrument is executed in six (6) counterparts, each of which
shall be deemed an original, this _________ day of ____________________, 20______.
ATTEST: (5)__________________________________
(PRINCIPAL)
_______________________________ By: _______________________________
SECRETARY (PRINCIPAL) (TITLE)
(SEAL6) _______________________________
(ADDRESS)
_______________________________ _______________________________
(WITNESS AS TO PRINCIPAL) (SURETY)
_______________________________
(ADDRESS) By: ______________________________
(ATTORNEY-OF-FACT)
______________________________
(ADDRESS)
$ ____________________ $ _____________________ $ ______________________
Amount of Contract Rate of Premium per $1,000.00 Amount of Premium
5 If Contractor is a Partnership, all partners should execute bond.
6 This bond must be filed with the Circuit Court of the County where the work is to be performed prior to
the start of construction.
Page 1
CONTRACT
THIS AGREEMENT made on this day __________2023, between Housing Authority of
the City of Arkadelphia "Public Housing Agency'' or PHA in the State of Arkansas (Contractor).
Located at________________________________________
____________________________________________________________________________
For Valuable consideration the PHA and Contractor Agree as follows:
1. STATEMENT OF WORK:
The contractor agrees to furnish all labor, materials, and equipment and services, and perform
and complete all work required, using prevailing labor wage rates, for the purpose of Capital
Improvement and every effort to provide a safe and decent environment. This work will include
the Contractor to provide Carpenter Hill Development with the goods, and services required to
install eight (8) HVAC units, including the Electrical Upgrades to 200 AMP services, and the
replacement and/or repair of all drywalls, painting and detailed finish work as required for the said
upgrades.
2. CONTRACT PRICE:
The PHA agrees to pay the Contractor as full payment for work completed within 90 days:
The PHA may request additional services and shall pay the following rate per site. The PHA
shall request additional services by written Task Order to the Contractor. Payment for additional
Contractor services shall be made with incremental monthly payment by the 15th of the following
month. Contractor shall submit this request for payment with a copy of the Task order.
3. PAYMENT
Payment request will be paid to the contractor on satisfactory performance based on a
per occurrence of the total contract agreement on the following schedule:
4. ADDITIONAL WORK
Additional work will be requested by the PHA and a "Change order" will be approved prior to any
additional works commencements. The PHA and the Contractor shall agree on the fees and
conditions for any additional work and said chance order shall become part of this Contract.
5. INDEMNIFY AND HOLD HARMLESS
The Contractor agrees to indemnify and hold harmless the Housing Authority of the City of
Arkadelphia from any claims or liability arising from the Contractors work performed to enter into
this contract.
Page 2
The contractor hereby agrees to commence work under this contract on or within (10) days of
the date to be specified in the written "Notice To Proceed" by the PHA and to fully complete the
project within a ninety (90) consecutive calendar days after the "Notice to Proceed" date. If the
contractor shall fail to complete the work in the time herein specified he shall pay to the PHA, as
liquidated damages ascertained and agreed, and not in the nature of a penalty the sum of One
hundred and twenty-five dollars ($125.00) for each consecutive calendar date of the delay until
the work is completed and accepted, which shall be deducted from the final amount to be paid
under the Contract.
Article 4. Contract Documents
The contract shall consist of the following component parts:
a) This instrument (Contract)
b) Instructions to Bidders (HUD-5369A)
c) General Conditions (HUD-5370)
d) Technical Specifications and drawings
e) Wages Rates
This instrument, together with the other documents enumerated in Article 4, which said other
documents are as fully a part of the contract as if hereto attached or herein repeated, form the
contract conflicts with any provision of any other component part first enumerated in Article 4
shall govern, except as otherwise specifically stated. The various provisions and addendum
(see Article 1) shall be constructed in order or preference of the component part of the Contract
which each modifies.
IN WITNESS THEREOF, the parties hereto have caused this Instrument to be executed
in three (3) original counterparts as of the day and year first above written.
Page 3
ATTEST:
____
Name of Company & Contractor Signature
Business Address:
____________________________________________
Witness for Contractor Signature:
By: _________________________
Title: ________________________
I _______________________________________,certify that I am the______________ of the
corporation as a contractor herein; that ________________________________who signed this
contract on behalf of the contractor, was then__________________________________ of said
Corporation; that said Contract was duly signed for and in behalf of said Corporation by
authority of its Governing body and is within the scope of its corporate powers.
(Corporate Seal)
By: ______________________
Title: _____________________
ATTEST:
Arkadelphia Housing Authority
_________________________________
Witness Signature & Title
By: ______________________________
Dr. Nadine Jarmon
Executive Director
670 S. 6th Street Arkadelphia, AR 71923
NON-COLLUSIVE AFFIDAVIT
STATE OF __________________________
COUNTY OF ________________________
, BEING FIRST DULY
SWORN, DEPOSES AND SAYS: That he/she is ___________________________________________________
of ________________________________, the Bidder that has submitted a bid; that such proposal or bid is genuine
and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly,
with any bidder or person, to put in a sham bid or to refrain from bidding, and has not in any manner, directly or
indirectly, sought by agreement or collusion, or communication or conference, with any person, to fix the bid price
or affiant or of any other bidder, or to fix any overhead, profit or cost element of said bid price, or of that of any
other bidder, or to secure any advantage against Arkadelphia Housing Authority or any person interested in the
proposed contract; and that all statements in said proposal or bid are true.
___________________________________________________
Contractor
_____________________________________________________
Signature and Title
Subscribed and sworn to before me this _____________ day of _____________, 20________.
_____________________
Notary Public
_____________________ ____________________
My Commission Expires: Affix Seal