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REQUEST FOR PROPOSALS
FOR
DISASTER RECOVERY PROJECT FORMULATION SERVICES
ISSUED BY
THE CENTRAL RECOVERY AND RECONSTRUCTION OFFICE OF PUERTO RICO
as a division within the Puerto Rico Public-Private Partnerships Authority
COR3-RFP-2020-01
Date Initial RFP Issued: March 4, 2020
Proposals Due Date: April 13, 2020 at 3:00 p.m. AST
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TABLE OF CONTENTS
1. BACKGROUND INFORMATION ....................................................................................1
2. PURPOSE AND INTENT ...................................................................................................1
2.1 Anticipated Agreement Term ..........................................................................................2
2.2 Federal Oversight and Management Board (FOMB) ......................................................2
2.3 RFP COORDINATOR ........................................................................................................3
2.4 RFP Timeline ...................................................................................................................3
2.5 Pre-Proposal Information and Questions .........................................................................3
2.6 Conflicts of Interest..........................................................................................................4
2.7 Blackout Period ................................................................................................................5
2.8 Other Prohibited Communications ..................................................................................6
2.9 Submission Format ..........................................................................................................6
2.10 Changes to Proposal Wording .........................................................................................6
2.11 Respondent’s Errors and Omissions ................................................................................7
2.12 Respondent’s Expenses ....................................................................................................7
2.13 Selection of Proposal in Best Interests of Puerto Rico ....................................................7
2.14 Number of Awards ...........................................................................................................7
2.15 Withdrawal of Proposal ...................................................................................................7
2.16 Rejection of Proposals / Cancellation of RFP..................................................................7
2.17 Ownership of Proposals ...................................................................................................8
2.18 Waiver of Informalities ....................................................................................................8
2.19 Confidentiality of Proposals ............................................................................................8
2.20 Collection and Use of Personal Information ....................................................................8
2.21 RFP and Proposal as Part of Agreement ..........................................................................8
3. SERVICES ...........................................................................................................................9
Scope of Services .........................................................................................................................9
3.1 Step 1- Complete DDD Per FEMA Project Number .....................................................12
3.2 Step 2 – Scope of Work and Cost Estimate per FEMA Project Number ......................13
3.3 Step 3 – Special Task Orders .........................................................................................14
3.4 Commencement of Services ..........................................................................................14
3.5 Key Deliverables ............................................................................................................15
3.6 Milestones ......................................................................................................................16
3.7 Reporting........................................................................................................................16
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4. STAFF REQUIREMENTS ................................................................................................17
5. GENERAL FEDERAL GRANT REQUIREMENTS .......................................................18
5.1 Federal General Provisions ............................................................................................18
5.2 Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352 (as amended)..............................18
5.3 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards, 2 C.F.R. Part 200 ................................................................................19
6. INVOICING AND PAYMENT ........................................................................................19
7. SELECTION CRITERIA AND REQUIREMENTS .........................................................20
7.1 Proposal Structure ..........................................................................................................20
7.2 Required Minimum Qualifications of Respondent ........................................................22
7.3 Evaluation Methodology ................................................................................................26
7.4 Firm Experience and Financial Capacity .......................................................................27
7.5 Proposed Approach and Organization ...........................................................................27
7.6 Proposed Personnel and Experience ..............................................................................28
7.7 Inclusion of Local Parties ..............................................................................................28
7.8 Cost Proposal .................................................................................................................28
7.9 Commitment to Complying with all Applicable Federal and Puerto Rico Laws,
Regulations, Executive Orders, and Policy....................................................................28
ATTACHMENTS
Attachment A – Respondent’s Good Standing, Limited Denial of Participation
(LDP)/Suspension or Debarment Status, Legal Issues, Ownership Structures, and Conflicts
Attachment B – Anti-Lobbying Certification
Attachment C – Acknowledgement of Receipt of Addenda Form
Attachment D – Cost Proposal Form
Attachment E – Applicable Federal Terms and Provisions
1. BACKGROUND INFORMATION
The 2017 hurricane season brought insurmountable devastation to Puerto Rico when in the month
of September, the Island experienced category four and five storms, Hurricane Irma and Hurricane
María. In 2017 the Government of Puerto Rico created the COR3 to, among other purposes,
support all facets of intermediate and long-term recovery efforts of all emergency’s and disasters
declared by the President of the United States in Puerto Rico. Pursuant to such purposes, in year
2018, COR3 issued several RFPs for services related to the FEMA programs which resulted in the
execution of various contracts for grants management, project formulation, compliance and
closeout, among others services.
On December 2019, and most recently January 2020, Puerto Rico experienced the effects of
several earthquakes that took place in the southwestern area of the island. As with the 2017
hurricanes, the continuous earthquakes have brought devastation not only to the local and central
government in the area, but also to the citizens that lived or owned properties and businesses in
such area.
As the Government continues to advance the recovery phase in the aftermath of the storms and the
recent earthquakes, COR3 works to confirm that all costs incurred in connection with its
administration of the recovery are eligible, reasonable and necessary. This includes constant
review and assessment of all processes, including active efforts to identify opportunities for greater
efficiencies, and adjustment of resources as needed. Consequently, two years after the passage of
Hurricanes Irma and María, and a month after the recent earthquakes, COR3 seeks to execute
deliverable/performance-based contracts for certain project formulation services. The finality of
this is to ensure the performance and deliverables of contractors is solely based on the Puerto Rico
Government needs, to assure maximum recovery and guarantee an efficient, effective, and
transparent use of available resources for the recovery of Puerto Rico.
2. PURPOSE AND INTENT
This Request for Proposals (“RFP”) is issued by the Government of Puerto Rico (“Government”)
through the Central Recovery and Reconstruction Office of Puerto Rico (“COR3”), as division
within the Puerto Rico Public-Private Partnerships Authority (“Authority”). The purpose of this
RFP is to solicit proposals from interested qualified firms which can provide Disaster Recovery
Project Formulation Services, described in Section 3, in connection with the administration of the
Federal Emergency Management Agency funds. The technical assistance to be provided by
Contractor personnel will assist the Governor’s Authorized Representative (“GAR”) and the
COR3 in the development of project worksheets of eligible state agencies, municipalities, and
private non-profits (subrecipients).
While conducting recovery operations from the current disasters, the Government of Puerto Rico
must be prepared to recover from any future disasters which may occur during the term of this
contract, therefore, it is expected that the selected proponent(s) will provide support and technical
assistance for project formulation services related to the FEMA Public Assistance (PA) in
connection with all current federally declared disasters and any subsequent presidentially declared
disasters, which may occur during the term of the contract. The Contractor will also provide
training services to COR3 employees to build internal capacity to perform the contracted services.
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COR3 reserves the right, without limitation, to grant more than one contract and/or select more
than one qualified proponent or bidder and to cancel this solicitation and reissue this RFP, or
another version of it, if it deems that doing so is in the Public Interest, or amend the contract(s) of
the Selected Respondent(s) to extend the original duration, as further explained in this RFP, or to
extend the scale of the scope to include work under subsequent plans as long as related to the
services requested herein. Award of the contract(s) will be to the qualified firm(s) whose proposal,
conforming with this RFP, is most advantageous to the Government, price and other factors
considered. Section 3 of this RFP has a detailed description of the Scope of Services.
It is the Government’s intent to ensure that all work performed, pursuant to this RFP, is eligible
for United States Department of Housing and Urban Development (HUD) and United States
Federal Emergency Management Agency (FEMA) Public Assistance grant funding and performed
in accordance with HUD, FEMA and other applicable Federal and State regulations, policies and
guidance including, but not limited to, Davis-Bacon Act (40 U.S.C. 276a to 276a-7) and Clean Air
Act (42 U.S.C. 1857(h)). Qualified firms shall possess all required Federal and Government
licensing. This in particular may include, without limitation, the programs known as FEMA Public
Assistance, FEMA Hazard Mitigation Grant Program, HUD Community Development Block
Grant Program, HUD Community Development Block Grant Program—Disaster Relief, HHS
Social Services Block Grant Program, DOT, FHA, FTA, FAA Grant Programs, Department of the
Interior Grant Programs, USDA Emergency Watershed Protection Program, USDA Emergency
Forest Restoration Program, among others.
2.1 Anticipated Agreement Term
The initial term of the contract awarded pursuant to this RFP shall be through June 30, 2021, one
additional year (fiscal year 2020-2021) with the option to extend the term of the Agreement for
two one year-options, through June 30, 2022 and June 30, 2023, with the same terms and
conditions. The parties shall agree in writing to extend the term of the contract prior to the end of
each fiscal year. COR3 reserves the right to cancel the contract at any time upon a 30-day written
notice.
2.2 Federal Oversight and Management Board (FOMB)
The resulting contract must be submitted to the FOMB for review and approval if it results in a
value of ten million dollars ($10,000,000) or more. Pursuant to FOMB’s review of contracts
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policy1, COR3 hereby informs the requirement that the FOMB approve any contract pursuant to
such policy before execution.
2.3 RFP Coordinator
COR3 Project Formulation Coordinator
Margarita Mosquera
787-273-8205
2.4 RFP Timeline
Target Date Event
March 4, 2020 Publication of RFP on COR3 Transparency Portal RFPs
& Contracts Tab
March 16, 2020 Deadline to Submit Questions — 3:00 p.m. (AST)
March 30, 2020 COR3 to Provide Consolidated Response to Questions
April 13, 2020 Deadline to Submit Proposals — 3:00 p.m. (AST)
April 27, 2020 Notice of Award Expected
May 11, 2020 Execution of Agreement Expected
May 11, 2020 Issuance of First Task Order Expected
Please note that the RFP timeline includes target dates and may change subject to the sole
discretion of COR3. It is the sole responsibility of Respondents to periodically review the COR3
Transparency Portal, RFPs & Contracts Tab (www.recovery.pr) for updates to this RFP.
2.5 Pre-Proposal Information and Questions
The information contained in COR3’s Transparency Portal on the internet may provide additional
general information as to the status of the PA Program to-date in Puerto Rico. Also, Proponents
may find COR3 Disaster Recovery Federal Funds Management Guide in such Transparency
Portal. COR3 encourages Proponents to review and analyze the data included in such portal prior
to submitting the proposal.
Potential Respondents may also wish to review additional information publicly available,
including, but not limited to:
Transformation and Innovation in the Wake of Devastation (August 8, 2018)
The New Fiscal Plan for Puerto Rico
CDBG-DR Action Plan
1 Effective November 6, 2017, as amended.
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Federal Register notices, including but not limited to 82 FR 53514
All questions and correspondence must be sent to: [email protected] and
[email protected] and must reference this specific RFP (COR3-RFP-2020-01) in the subject line
of the email. Any correspondence or questions that do not comply with this requirement or that
are sent to any other e-mail address will not receive a response.
Any Respondent that submits a question(s) will be copied on all future communications related to
the RFP and RFP addenda, clarifications, and/or selection process. COR3 will endeavor to respond
to properly submitted questions as quickly as possible and will send individual responses to all
known Respondents as of the date the response is sent. No questions will be accepted after the
deadline provided in the above schedule. COR3 will compile a summary of all questions
submitted, and all responses, and send one consolidated response document to all Respondents at
the close of the COR3 response period and will post a copy of same to the COR3 Transparency
Portal RFPs & Contracts Tab (www.recovery.pr).
Any prospective Respondent that does not submit a question should also provide an email to
[email protected] and [email protected] by the deadline to submit questions to ensure
receipt of future communications about the RFP, responses to questions, or other matters related
to the RFP selection process. This email should include the name of the firm, a statement
expressing the firm’s interest in submitting a response to this RFP, and the name and contact
information for the individual it wishes to receive RFP-related information.
Notwithstanding anything provided above, Respondents are responsible for monitoring the COR3
Transparency Portal RFPs & Contracts Tab and Document Library (www.recovery.pr) for updates
and information.
Any interpretations, corrections or changes to this RFP will be made by addendum. COR3’s
Executive Director’s Office has the sole authority to issue addenda to this RFP. Any changes to
specifications will be made in writing and posted on the COR3 Transparency Portal RFPs &
Contracts Tab (www.recovery.pr). Respondents shall acknowledge receipt of all addenda on the
proposal form as attached hereto as Attachment C.
2.6 Conflicts of Interest
Respondents must ensure that all actions related to their response are consistent with the
Authority’s Guidelines for the Evaluation of Conflicts of Interest and Unfair Advantages in the
Procurement of Public-Private Partnership Contracts (the “Ethics Guidelines”) and other
applicable ethics regulations. Prospective Respondents should review the Ethics Guidelines,
which are available for download on the Authority’s website: http://www.p3.pr.gov.
The Respondent shall notify COR3 as soon as possible if this contract or any aspect related to the
anticipated work under this contract raises an actual or potential conflict of interest (as defined at
2 C.F.R. Part 215 and 24 C.F.R. § 85.36 (2013) (or 84.42 (2013), if applicable). The Respondent
shall explain the actual or potential conflict in writing in sufficient detail so that COR3 is able to
assess such actual or potential conflict.
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Respondents are required to provide a list of any other current or former advisory contracts the
firm has/had with any Government Entity in Puerto Rico, or which bear any direct or indirect
relation to the activities of the Government of Puerto Rico. Further, please provide a description
of any recent historical or ongoing legal proceedings, interviews or investigations being conducted
by any U.S. law enforcement agencies involving your firm or team that are related to transactions
executed in or on behalf of the Government of Puerto Rico and/or its public corporations. In
addition, please provide a brief description of any work you have performed for any creditors or
guarantors of the Government of Puerto Rico or any public corporation debt about their positions
in Puerto Rico debt obligations. Indicate whether this activity is ongoing, and if not, when the
prior assignment concluded.
Note, COR3 or the Authority may in the future request a list of direct or indirect relationships the
Respondent or its professionals have to members of the Authority or Board Members or executives
of other public corporations of Puerto Rico.
In the event of real or apparent conflicts of interest, COR3 reserves the right, in the
Government’s best interest and at its sole discretion, to reject a proposal(s) outright or to
impose additional conditions upon Respondents. The Respondent shall accept any reasonable
conflict mitigation strategy employed by COR3, including but not limited to the use of an
independent subcontractor(s) to perform the portion of work that gives rise to the actual or potential
conflict.
COR3 reserves the right to cancel any contract awarded pursuant to this RFP with 30 days’ notice
in the event that an actual conflict of interest, or the appearance of such conflict, is not cured to
COR3’s satisfaction.
2.7 Blackout Period
The blackout period is a specified period of time during a competitive procurement process in
which any Respondent, bidder, or its agent or representative, is prohibited from communicating
with any COR3 employee or COR3 contractor involved in any step in the procurement process
about this procurement. The blackout period applies not only to COR3 employees, but also to any
current contractor of COR3. “Involvement” in the procurement process includes but may not be
limited to project management, design, development, implementation, procurement management,
development of specifications, and evaluation of proposals for a particular procurement. This
solicitation designates the contact person (RFP Coordinator) and all communications to and from
potential Respondents and/or their representatives during the blackout period must be in
accordance with this RFP’s defined method of communication with the RFP Coordinator. The
blackout period begins on the date that COR3 first issued a Public Notice of Intent to Issue this
RFP. The blackout period will end when a contract is signed by both parties.
In the event a prospective Respondent may also be a current COR3 contractor, COR3 employees
and the prospective Respondent may contact each other with respect to their existing contract and
duties only. Under no circumstances may COR3 employees or current contractors discuss this
RFP or corresponding procurement process or status.
6
Any bidder, Respondent, or COR3 contractor who violates the blackout period may be excluded
from the awarding contract and/or may be liable to COR3 in damages and/or subject to any other
remedy allowed under law, including but not limited to a ban in participating in any procurements
issued by or for COR3, or any entity of the Government of Puerto Rico, for a period of ten (10)
years, if it is determined that such action results in violation of the Anticorruption Code, Puerto
Rico Act 2-2018.
2.8 Other Prohibited Communications
Communications with other representatives of the Government of Puerto Rico or relevant entities
of Federal Government regarding any matter related to the contents of this RFP are prohibited
during the submission and selection processes. Failure to comply with these communications
restrictions will result in rejection of the Respondent’s proposal.
2.9 Submission Format
Proposals are to be no longer than 50 pages in length, to include all attachments and résumés,
unless specified herein. Proposal font size shall not be any less than 12 point, with 1-inch margins,
with the exception of tables and charts, but such text must be clearly legible. Respondents are
encouraged to submit only relevant and necessary information.
Proposals must be submitted in accordance with the schedule described in Section 2.4 and the
Proposal Structure described in Section 6. Any Proposal or responses to the RFP submitted after
the prescribed deadline will not be accepted absent extreme extenuating circumstances as
determined in the sole discretion of COR3.
Respondents shall submit Proposals in electronic format only to the attention of the RFP
Coordinator at [email protected] and [email protected]. The RFP Coordinator will
confirm receipt by e-mail. It is the responsibility of each Respondent to confirm that its Proposal
is successfully submitted and received by the RFP Coordinator by the deadline.
COR3 intends that Proposals to this RFP will be submitted in a consistent and easily comparable
format. Proposals not organized in the manner set forth in this RFP may be considered
nonresponsive at the sole discretion of COR3. Respondents should not refer to other parts of their
submission or refer to information that may be publicly available elsewhere, or to the Respondent’s
website or any other website, in lieu of presenting the information in the Proposal.
2.10 Changes to Proposal Wording
If the Respondent wishes to amend its Proposal after submission, it may do so only by making a
request to the RFP Coordinator via e-mail as described in Section 2.5. Any amendment must be
made by submitting a revised Proposal in its entirety and clearly marked “Amended Proposal”.
COR3 will consider amended Proposals to replace and supersede any earlier submission. No
amended Proposal may be submitted after the Proposal submission deadline described in Section
2.4. COR3 may request additional information after this deadline only for purposes of
clarification.
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2.11 Respondent’s Errors and Omissions
COR3 reserves the right to reject a submission that contains an error or omission. COR3 also
reserves the right to request correction of any errors or omissions and/or to request any clarification
or additional information from any Respondent, without opening up clarifications for all
Respondents. Respondents will be provided a reasonable period of time in which to submit written
responses to COR3’s requests for clarification or additional information. Respondents shall
respond by the deadline stated in the correspondence.
2.12 Respondent’s Expenses
Respondents are solely responsible for their own expenses in preparing a Proposal and for
subsequent negotiations with COR3, if any. COR3 will not be liable to any Respondent for any
claims, costs, or damages incurred by the Respondent in preparing the Proposal, loss of anticipated
profit in connection with any final Agreement, or any other matter whatsoever.
2.13 Selection of Proposal in Best Interests of Puerto Rico
Notwithstanding the selection criteria set forth in the RFP, COR3 reserves the right to select a
Proposal(s) that, in its sole judgment, is consistent with and responsive to the goals of the
Government’s recovery plan, irrespective of whether it is the apparent lowest-priced Proposal, if
it is determined by COR3 and/or the Authority to be in the best interests of Puerto Rico.
2.14 Number of Awards
At the sole discretion of COR3 and based upon the breadth and experience of Respondents to this
RFP, COR3 may award contracts to more than one respondent and award any vendor one or more
steps or task orders per contract.
2.15 Withdrawal of Proposal
A Respondent may withdraw a Proposal at any time up to the date and time that the contract is
awarded. The withdrawal must be submitted in writing to the RFP Coordinator. Absent a full
withdrawal, Respondent must certify in the transmittal letter that its Proposal, including the
submitted cost proposal and pricing, will be valid for one hundred twenty (120) days from COR3’s
receipt.
2.16 Rejection of Proposals / Cancellation of RFP
Issuance of this RFP does not constitute a commitment by COR3 to award a contract. COR3
reserves the right to accept or reject, in whole or in part, all Proposals submitted and/or to cancel
this solicitation and/or reissue this RFP or another version of it, if it determines that doing so is in
the best interest of the impacted communities or Puerto Rico. If any or all proposals are rejected,
COR3 reserves the right to re-solicit proposals.
8
2.17 Ownership of Proposals
All documents, including Proposals submitted to COR3, become the property of COR3. Selection
or rejection of a Proposal does not affect this provision.
2.18 Waiver of Informalities
COR3 reserves the right to waive any informalities and/or irregularities in a Proposal if it
determines that doing so is in the best interest of the impacted communities or the Government of
Puerto Rico.
2.19 Confidentiality of Proposals
COR3 shall have no obligation to treat any information submitted in connection with a Proposal
as proprietary or confidential unless (i) the Respondent so identifies such information in its
Proposal as proprietary or confidential, and (ii) COR3 determines that the information is
proprietary or a trade secret and legitimately requires such treatment or that it must otherwise be
protected from publication according to law. COR3 obligations with respect to protection and
disclosure of such information shall at all times be subject to applicable law. If the Respondent
desires to identify any information in its Proposal as proprietary or confidential, it shall limit such
designation to only those particular portions of the Proposal that actually constitute proprietary
information, trade secrets, or other confidential matters or data. Identification of the entire
Proposal or entire sections of the Proposal or other overly broad designations as confidential or
proprietary are strongly discouraged and may result in the Proposal being deemed unresponsive.
COR3 shall have the right to use all portions of the Proposal, other than those portions identified
and marked as confidential or proprietary, as it considers necessary or desirable in connection with
this RFP; and, by the submission of the Proposal, the Respondent thereby grants to COR3 an
unrestricted license to use such unrestricted portions of the Proposal.
2.20 Collection and Use of Personal Information
Respondents are solely responsible for familiarizing themselves and ensuring that they comply
with the laws applicable to the collection and dissemination of information, including résumés and
other personal information concerning employees and employees of any subcontractors. If this
RFP requires Respondents to provide COR3 with personal information of employees who have
been included as resources in Proposal to this RFP, Respondents will ensure that they have
obtained written consent from each of those employees before forwarding such personal
information to COR3. Such written consents are to specify that the personal information may be
forwarded to COR3 for the purposes of responding to this RFP and use by COR3 for the purposes
set out in the RFP. COR3 may, at any time, request the original consents or copies of the original
consents from Respondents, and upon such request being made, Respondents will immediately
supply such originals or copies to COR3.
2.21 RFP and Proposal as Part of Agreement
This RFP, as well as any related solicitation documents such as Addenda and Questions &
Answers, and the selected Respondent’s Proposal will become part of any contract between COR3
9
and the Respondent. In the event that the terms of the RFP and related documents or Proposal
conflict with the contract, the contract terms shall control.
3. SERVICES
Scope of Services
The scope of services presented is based upon circumstances existing at the time the RFP is
released. COR3 reserves the right to modify or delete specific tasks listed and, if appropriate, add
additional tasks prior to and during the term of the contemplated contract, as long as the additional
tasks are within or logically related to the Scope of Services contemplated herein and in the
resulting Agreement. COR3 reserves the right to retain some of these services and tasks internally
or to assign some the services and tasks to other Selected Respondents to whom a contract is
awarded, if applicable.
The Selected Respondent will be directly responsible for ensuring the accuracy, timeliness, and
completion of all tasks. All Tasks will be completed within the steps described in Section 3.1, 3.2
and 3.3.
When a Task Order is issued pursuant to the Agreement, the Selected Respondent will be
responsible for communicating with and providing necessary assistance to COR3. Each
Task Order will describe the Scope of Services, rates and other compensation, including the
not to exceed amount.
Respondents may submit Proposals for consideration to any individual project category for an
individual Step and/or project category or all steps and project categories described in Section 3.1
and Attachment D.
Beginning with Hurricane Irma in 2017, all FEMA Project Worksheets (“PW”) are developed and
processed under FEMA’s new “Public Assistance Delivery Model”. According to FEMA, this
delivery model consists of three basic elements: (1) simplified roles and responsibilities for FEMA
staff; (2) cloud-based customer relationship and program management software known as the
Public Assistance Grants Manager (for FEMA’s internal use) and Grants Portal (for use by
applicants, subrecipients, and recipients); and (3) pooled resources of trained experts to support
project development called “Consolidated Resource Centers” (“CRCs”).
Under this model, FEMA assigns a “Program Delivery Manager” or “PDMG” to each applicant
for Public Assistance who serves as the applicant’s primary point-of-contact and provides
assistance throughout the grant development process. Once inspections take place, damages
defined, and projects identified, the PDMG forwards projects to the CRC for compliance,
document, and quality assurance reviews. Subject matter experts at CRCs provide approvals with
respect to project scoping and costing. Upon return from the CRC, the project is reviewed by the
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PDMG, Recipient, and the applicant before the applicant signs the final project and FEMA
obligates the funding.
The delivery model uses a web-based platform called “Grants Portal” to provide grants
management capabilities and transparency for applicants, recipients, and subrecipients. Through
Grants Portal, applicants can submit a Request for Public Assistance and upload project
documents. In fact, all required data is electronically uploaded, eliminating the need for hard-copy
documentation.
In Puerto Rico, the model occurs in five phases as depicted in the flow chart below:
Through this RFP COR3 seeks qualified firms to provide Project Formulation and Technical
Services for the development of FEMA Project Worksheets for Public Assistance program
funding. The Selected Firm will assist COR3 through all phases, as needed, of the workflow
described above. Respondents should have experience in the formulation of federally funded
projects in the aftermath of hurricanes or natural disasters.
Large permanent work projects for Hurricanes Irma and Maria, and the recent earthquakes may be
obligated with fixed cost estimates under Stafford Act § 428 Alternative Procedures. Respondents
should be prepared to deliver services under standard § 406 procedures or § 428 Alternative
Procedures, as each disasters projects may or may not be subject to § 428 Alternative Procedures.
Consideration will be given to respondents that have prior experience with § 428 of the Stafford
Act.
Project Formulation and Technical Services include assisting COR3, as needed, in the
development of project worksheets of state agencies, municipalities, and private non-profits
(subrecipients) for all open and eligible disasters. According to FEMA:
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Project formulation is a transparent and collaborative process between FEMA, the Recipient, and
Subrecipients. It includes identifying and submitting Damage Descriptions and Dimensions
(DDDs) to the CRC to determine eligible Scopes of Work (SOWs) and develop cost estimates.
Project formulation also includes coordination with Section 406 Hazard Mitigation staff to identify
406 Hazard Mitigation Proposals (HMPs) and develop cost estimates specific to each approved
HMP.
COR3 anticipates that the local cost share of FEMA-funded projects will be funded by COR3
using U.S. Department of Housing and Urban Development (HUD) Community Development
Block Grant-Disaster Recovery (CDBG-DR) grant funding. The selected respondent must be
prepared to immediately implement best practices for project formulation services, understanding
that the projects will be funded by FEMA Public Assistance, HUD CDBG-DR, or both types of
grants. The Services include, but are not limited to, the following:
Assisting COR3 and subrecipients in identifying all disaster-damaged facilities and
equipment, including through site inspections;
Collaborating with COR3, subrecipients, and Federal agencies (i.e., FEMA, HUD) in
determining which projects are eligible for Federal funding (e.g., FEMA Public Assistance
funding, HUD CDBG-DR funding);
Conducting damage assessments and preparing Damage Descriptions and Dimensions for
each eligible project (DDD);
Developing accurate, detailed, and complete scopes of work (SOW) for all damaged
facilities and equipment, differentiating and identifying both small and large projects that
will be the basis of each PW;
Preparing detailed and itemized cost estimates for each eligible project;
Working with COR3 and subrecipients to reach agreements with FEMA on fixed cost
estimates (FCE), including providing strategic advice regarding the request for third-party
independent expert panel review of FCEs and consolidation of funds across facilities
Identifying any circumstances that require special review, such as Environmental and
Historic Preservation (EHP) reviews, permitting requirements, or insurance concerns;
Identifying opportunities for alternate and improved projects and collaborating with COR3,
FEMA, and other federal agencies, as applicable, to ensure approval and eligibility for
alternate and improved projects;
Developing Stafford Act § 406 Hazard Mitigation Proposals (HMP) where mitigation
actions can minimize future disaster impacts and refining Hazard Mitigation strategies;
Developing and documenting each Project Worksheet;
Preparing changes of SOW as needed and collaborating with COR3, FEMA, and other
federal agencies, as applicable, to ensure these SOW are approved before work begins;
Submitting PWs associated with eligible projects to FEMA or other federal agencies, as
applicable for approval;
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Provide the needed support to comply and implement the requirements set forth in the
Bipartisan Budget Act of 2018 that are related to disaster and recovery matters.
The services listed above are not meant to be an exhaustive list of the services the selected
respondent will be asked to provide during the term of the Contract; additional services may be
required throughout the contract term. Performance of project formulation and technical services
require extensive knowledge of policies applicable to the FEMA Public Assistance program and
HUD CDBG-DR program, including experience with damage assessments, identification of
damaged facilities and measurement of magnitude of damages, and work and cost eligibility.
The selected respondent will be required to facilitate communication between applicants, COR3,
FEMA, and other local, state, and federal agencies. The selected respondent shall develop,
maintain, and provide upon request daily operational reports to keep COR3 informed of work
progress, including updates of: EHP reviews; DDDs submitted; cost estimates prepared; PWs
written, and obligated funding.
These tasks will be completed within the following steps:
3.1 Step 1- Complete DDD Per FEMA Project Number
The Expected tasks within Step 1 are:
Conduct Inspection
Draft Inspection Report
Conduct Inspection Review
Provide Comments and Recommendation to COR3 or Applicant
Draft DDD or Review FEMA-Drafted DDD, as determined by COR3
Make Recommendation to COR3 and/or Applicant for Signature
The Expected Project Categories for which the tasks in Step 1 shall be performed are the following:
Project Size2
Small Project
Minimum Team Members must
include: 1 Scope Reviewer, 1
Estimator, 1 Insurance
Possible Additional Needed Team
Members: 1 EHP Reviewer, 1 HMP
Reviewer
Large Project (up to $1m)
2 Small and large project thresholds are available here: https://www.fema.gov/public-assistance-indicator-and-project-thresholds.
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Minimum Team Members must
include: 1 PA SME, 1 Scope Reviewer,
1 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Large Project ($1m-$5m)
Minimum Team Members must
include: 1 PA SME, 2 Scope Reviewer,
1 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Large Project >$5m up to $10)
Minimum Team Members must
include: 1 PA SME, 3 Scope Reviewer,
2 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Large Project > $10m
Minimum Team Members must
include: 1 PA SME, 5 Scope Reviewer,
2 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Personnel requirements and Pricing shall be based upon completion of each Step as described in
Attachment D, with delayed completion of Step resulting in delayed payments.
3.2 Step 2 – Scope of Work and Cost Estimate per FEMA Project Number
The Expected tasks within Step 2 are:
Review FEMA-Produced SOW and Cost Estimates
Insurance Review and Recommendations
§ 406 HMP Review
EHP Review as applicable
Subject Matter Expert (SME) Final Review and Recommendation
Transmittal Sheet to COR3
The Expected Project Categories for which the tasks in Step 2 shall be performed are the following:
Project Size
Small Project
Minimum Team Members must
include: 1 Scope Reviewer, 1
Estimator, 1 Insurance
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Possible Additional Needed Team
Members: 1 EHP Reviewer, 1 HMP
Reviewer
Large Project (up to $1m)
Minimum Team Members must
include: 1 PA SME, 1 Scope Reviewer,
1 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Large Project ($1m-$5m)
Minimum Team Members must
include: 1 PA SME, 2 Scope Reviewer,
1 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Large Project >$5m up to $10)
Minimum Team Members must
include: 1 PA SME, 3 Scope Reviewer,
2 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Large Project > $10m
Minimum Team Members must
include: 1 PA SME, 5 Scope Reviewer,
2 Estimator, 1 Insurance, 1 EHP
Reviewer, 1 HMP Reviewer
Personnel requirements and Pricing shall be based upon completion of each Step as described in
Attachment D, with delayed completion of Steps resulting in delayed payments.
3.3 Step 3 – Special Task Orders
In addition to the per project Steps stated above, additional Task Orders can be issued at the sole
discretion of COR3 for special projects that will be charged on an hourly basis, subject to COR3’s
Contractor, Travel, Expense, and Billing Policy.
3.4 Commencement of Services
Selected Respondents must be prepared to commence theses services within fourteen (14) days of
the issuance of a Task order, at the direction of COR3.
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3.5 Key Deliverables
Respondents shall outline the types of deliverables and timelines they intend to produce in
performing the services being procured through this RFP and completing the Steps above-stated.
At a minimum, key deliverable to be provided shall include such items as:
Weekly comprehensive reports including the following:
Identification and location of damages;
Number of DDDs prepared;
Preparation of scopes of work associated with eligible projects;
Estimated cost damages for each eligible project;
Number of PWs submitted to FEMA;
Discussion of any potential concerns or findings from FEMA or other Federal
agencies, and a proposed corrective plan of action, if needed
Quarterly reports detailing issues of special concern, including but not limited to, projects
requiring EHP reviews, permitting requirements, and insurance concerns
Analysis and recommendations for alternate and improved projects
Analysis and recommendations for potential § 406 Hazard Mitigation
Work papers and analysis providing information about the process used to develop
reports
Reporting and updating timelines
Project work plans, timeframes, and budget tools
Proposed system(s) and template(s) used to capture and report information
Deliverables shall be delivered to COR3 in an editable format such as Word, Excel, PowerPoint,
Adobe Illustrator, Photoshop, InDesign, or Visio and/or other formats. All deliverables and
resulting work products will become the property of COR3. The Respondent shall certify the
accuracy of its deliverables to COR3.
The selected respondent will be required to prepare and provide all documentation related to its
provision of services to ensure that the costs incurred under its contract with COR3 are
appropriately allocated to a PW. The Contractor will be compensated for each step on a per project
basis, inclusive of all costs. In the event COR3 approves reimbursement of additional costs, such
approval must be in writing and reimbursement will be subject to the COR3 Contractor, Travel,
Expense, and Billing Policy. The COR3 Contractor, Travel, Expense, and Billing Policy applies
to all contracts awarded as a result of this RFP, but to the extent the RFP or contract differs from
the COR3 Contractor, Travel, Expense, and Billing Policy, the document control in the following
order: (1) contract; (2) COR3 Contractor, Travel, Expense, and Billing Policy (3) RFP.
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3.6 Milestones
Respondent shall establish Key Performance Metrics within the Proposal that clearly indicates
project milestones and deliverables tied to an overall proposed project schedule. These milestones
and deliverables shall be considered by COR3 during issuance of task orders but is not binding to
COR3 in any way. Pricing shall be based upon completion of each Step and/or Special Task Order
as described in Attachment D, with delayed completion of Steps or Task Orders resulting in
delayed payments.
3.7 Reporting
COR3 is required to maintain a high degree of contractor oversight and efficient and effective cost
controls. Failure to so do risks eligibility for federal reimbursement of the costs incurred under
any agreement entered into pursuant to an award under this RFP. In addition to the above Key
Deliverables, following is a list of the Reports that may be required by COR3:
Weekly Status Report - A weekly report which contains the following information:
Staffing: a description of significant anticipated changes to Contractor’s staffing
plan, including, but not limited to, additions or departures of employees,
independent contractors, subcontractors, etc.; promotions and demotions of the
aforementioned persons as it relates to their work for the Authority; planned
vacations or leaves of absence that will impact work flow; and other human
resource related information that will affect the Contractor’s provision of services
to COR3.
Summary of Work Performed: a brief description of the work performed in the
preceding work week, including a list of open projects and their progress as
compared to the previous week.
List of Meetings: a list of meetings the Contractor held in the preceding week with
third parties (i.e., sub-applicants/subrecipients, federal agencies, or other
contractors), including a description of the discussion and the result of the
discussion or action items.
Needs List: a numbered list of work items, information, or decision points that the
Contractor requires from COR3 for the week ahead, listed in priority order, with
the highest first.
Monthly Presentation - A monthly in-person presentation by the Contractor’s Designated
representative and (and any other key personnel as may be requested by COR3). The presentation
should include a PowerPoint or similar document that provides the status of the overall program
being managed, including quantifiable metrics (e.g., the number of projects and total dollar value
of projects at each stage of the grant process and average duration projects remain at each stage).
The presentation should also highlight key successes and challenges of the preceding month and
total approved and total denied funding to date.
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4. STAFF REQUIREMENTS
The Respondent shall have or will secure, at its own expense, all personnel required in performing
the services under the contract. COR3 expects the Selected Respondent to provide competent and
fully qualified staff that are authorized or permitted under federal, state, and local law to perform
the scope of work under the agreement. COR3 reserves the right to request the removal of any
staff not performing to standard. No additional personnel may be assigned to the resulting contract
without the written consent of COR3.
Staff Experience and Qualifications
The Respondent should provide detailed information about the experience and qualifications of
the Respondent’s principals, project managers, key personnel, and staff to be assigned, including
degrees, certifications, licenses, and years of relevant experience. Respondent shall specifically
identify people currently employed by the Respondent who will serve as Key Personnel. This
includes the Respondent’s own staff and staff from any subcontractors to be used. The Respondent
should demonstrate that its staff (and/or subcontractor’s staff) meet the desirable requirements
listed below and have necessary experience and knowledge to successfully implement and perform
the tasks and services.
Organizational and Staffing Plan
Respondent shall submit to COR3 an initial organizational chart detailing the identity of each
person (whether employed by Respondent or a subcontractor) who shall perform any
support/technical services work. The Respondent’s organization and staffing plan shall
specifically include the required number of personnel, role and responsibilities of each person on
the project, name of the resource or subcontractor, résumé or professional information, their
planned level of effort, their anticipated duration of involvement, and their on-site availability.
The Respondent should demonstrate its ability to adequately staff and scale each functional area
to maintain agreed upon service levels throughout the life of the Program.
The Contractor must be experienced and knowledgeable in providing strategic advice. All
proposed staff must be knowledgeable on the current provisions related to the Recovery Programs
found in the Stafford Act, 44 C.F.R., and 2 C.F.R.
The Contractor should anticipate the probability of staffing multiple projects with multiple
resources simultaneously during the term of the contract.
COR3 shall have the discretion to request that the Contractor remove a staff member from service,
if needed. COR3 reserves the right to review the résumé of any proposed staff including those of
any subcontractors. All services shall be performed under the direction of the COR3 Executive
Director and/or designated personnel.
Positions and General Descriptions
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The total number of contracted personnel for each position is dependent on the assigned Scope of
Services and needs of COR3. Below is a description of tasks associated with each position. These
descriptions are general and not intended to be all inclusive or limit the work tasks that may be
performed by that position. All duties and responsibilities assigned to any contracted personnel
will be under the direction and oversight of COR3’s staff.
The Contractor will be required to staff each of the required positions if so assigned in the
applicable Task Order. COR3 has the discretion to request additional staff, including different or
additional positions, depending upon the size, complexity, and demands of the assigned Scope of
Services. Such request shall be made by task order.
5. GENERAL FEDERAL GRANT REQUIREMENTS
COR3 anticipates that some or all of the costs incurred under the contract awarded pursuant to this
RFP will be funded with federal funds. As such, the contract shall be governed by certain federal
terms and conditions for federal grants, including any applicable OMB circulars. In addition, this
RFP is intended to be conducted in accordance with 2 C.F.R. Part 200 which outlines the methods
of procurement to be followed by non-federal entities.
5.1 Federal General Provisions
Because the costs incurred by COR3 under the contract awarded pursuant to this RFP are
anticipated to be funded by the Federal Government, the contract shall be also governed by any
specific terms and conditions set forth by the awarding federal agency(ies). Attachment E to this
RFP includes the applicable federal terms and provisions. Respondent shall provide a description
of experience in dealing with these and any other applicable provisions and requirements and
affirmatively certify that Respondent shall comply.
5.2 Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352 (as amended)
Contractors who apply or bid for an award of $100,000 or more shall file the required certification
at APPENDIX A, 44 C.F.R. PART 18 and attached hereto as Attachment B. Each tier certifies
to the tier above that it will not and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or employee of any agency, a
member of Congress, officer or employee of Congress, or an employee of a member of Congress
in connection with obtaining any Federal contract, grant, or any other award covered by 31 U.S.C.
§ 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in
connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up
to the recipient. COR3 anticipates that the contract entered into pursuant to this RFP will involve
funds in excess of $100,000. Respondents must therefore include a signed Anti-Lobbying
Certification with their Proposal in the form attached as Attachment B.
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5.3 Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, 2 C.F.R. Part 200
For any contract resulting from this RFP, compliance with the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 C.F.R. Part 200
is required.
6. INVOICING AND PAYMENT
The Selected Respondent will be required to submit to COR3 monthly invoices for payment of
only those completed task orders, including expenses, in accordance to Attachment D and
corresponding task order issued. Invoices shall be complete and correct and shall be documented
in a manner that meets current federal requirements for reimbursement and in accordance with
COR3’s Travel, Expense, and Billing Policy available for review at https://recovery.pr/.
All labor rates proposed are to be broken out by job category and represent the total labor-related
cost, including all taxes, benefits, overhead, etc. No back-office administrative, reporting, invoice
preparation, and/or clerical expenses will be paid.
All invoices must contain the following language verbatim,
We certify under penalty of nullity that no public servant of the Puerto Rico Public-
Private Partnerships Authority or Puerto Rico Central Recovery, Reconstruction
and Resilience Office of Puerto Rico (“COR3”) will derive or obtain any benefit or
profit of any kind from the contractual relationship which is the basis of this
invoice. If such benefit or profit exists, the required waiver has been obtained prior
to entering into the Agreement. The only consideration to be received in exchange
for the delivery of goods or for services provided is the agreed-upon price that has
been negotiated with an authorized representative of the Puerto Rico Public-Private
Partnerships Authority or COR3. The total amount shown on this invoice is true
and correct. The services have been rendered, and no payment has been received
in respect thereof.
Payment Schedule: Invoices will be processed for payment only after approval by COR3’s
Contract Manager or other designee, and after COR3 review and approval of all submitted
expenses. Approval for payment shall not be granted until appropriate and quality deliverables are
received pursuant to the Task Orders issued by COR3, and documentation is provided and
determined to be correct, accurate, and consistent with COR3’s Task Order, Government of Puerto
Rico, and federal reimbursement requirements. Respondents should expect to be paid within a
reasonable time after invoice acceptance. For these reasons, Respondents should demonstrate in
their Proposals that they have sufficient financial capacity to continue to pay all staff and
subcontractors in a timely manner and continue to perform under any eventual contract with COR3
without interruption or delay.
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7. SELECTION CRITERIA AND REQUIREMENTS
7.1 Proposal Structure
The structure for Proposals should be as follows:
7.1.1 Cover Page (1 page): Identifying the name of the RFP, the Respondent
name, the point of contact and associated contact information, and the date
of submittal.
7.1.2 Transmittal Letter (maximum 2 pages): Provide a brief overview of the
key elements of the Respondent’s Proposal and why the Respondent should
be selected. Include the Respondent’s certification that they have read and
understand the requirements of the RFP (and any addenda that may be
released) and agree to comply with those requirements. This letter should
be signed by an official with the legal authority to bind the Respondent; if
a corporation, a corporate resolution must be included as an annex
authorizing the official who signs the Proposal. The letter shall include a
statement that the Proposal and all terms and pricing presented therein are
to be valid for a minimum of one-hundred and twenty (120) days.
Respondent shall provide a description of experience with such grant
requirements and affirmatively represent and certify that the Respondent
shall adhere to any applicable federal requirements, including the
acknowledgement that any funds disallowed, deobligated, or recouped by
any federal government entity shall be deducted from the fee or
compensation to Contractor to the extent that the disallowance,
deobligation, or recoupment is the fault of Contractor.
7.1.3 Respondent Experience and Financial Capacity (maximum 4 pages): Describe the history and experience of the firm as it relates to the proposed
scope of work, specifically focusing on governmental affairs and other areas
the Respondent believes demonstrates its relevant qualifications and
experience. Any subcontractors should be named, along with a description
of experience and what role they will play on the Respondent’s team.
Describe the Respondent’s experience with projects of similar size and
approximate value of the one identified in this RFP, and with FEMA
program and regulatory requirements. Respondent should describe its
demonstrated capability to provide the staffing with the qualifications
required in this RFP through the term of the expected contract.
A minimum of four (4) references of the Respondent (as Prime Contractor)
shall be provided, offering for each a brief summary of the work that was
done and how it relates to the scope of work under this RFP. Each reference
should include a point of contact name, their title, the name of the
organization they represent, and their phone and e-mail information so that
they may be contacted by COR3 or its designee(s). The Respondent is
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encouraged to provide up to two (2) references for identified
subcontractors.
The Respondent must provide a copy of its most recent audited financial
statement, and any other relevant information, along with a summary as to
why this information demonstrates Respondent’s financial capacity to
comply with all requirements imposed by or as a result of the contract to be
awarded pursuant to this RFP, including but limited to the ability to pay
employees and subcontractors even when awaiting payment of invoices
under this engagement. This section should also include a statement
making a firm commitment that the Respondent will pay its employees
and sub-contractors without regard to the timing of payment by COR3
and the Government of Puerto Rico. The audited financial statement will
not count towards the page limit for this section or the overall page limit for
the Proposal.
7.1.4 Proposed Approach and Organization (maximum 6 pages): Respondent
should provide an organizational structure and proposed staffing pattern
(including number of personnel) that they anticipate utilizing to deliver the
required services contemplated under this RFP and provide a detailed
explanation as to how they would approach and manage the engagement to
ensure maximum effectiveness, efficiency, transparency, and positive
outcomes. Respondents are encouraged to include information about any
unique or specialized approaches and capabilities they will bring to the
engagement. Respondent shall establish Key Performance Metrics within
the Proposal that clearly indicate project milestones and deliverables tied to
the overall project schedule. These milestones and deliverables shall be
considered by COR3 during issuance of task orders but are not binding on
COR3 in any way.
7.1.5 Proposed Personnel and Experience (including Key Personnel): This
need not be an exhaustive list of personnel to be assigned; however, it
should demonstrate the availability and qualifications of personnel to
manage and lead each element of Respondent’s proposed organizational
structure. Include a statement that clearly confirms that the personnel
named and offered are available and whether and to what extent the
personnel are committed to participate on-site in Puerto Rico in support of
this project.
7.1.6 Inclusion of Small, Minority, and Women-Owned Businesses
(maximum 2 pages): Provide an explanation on how Respondent is
including small, minority, and women-owned businesses as part of the
proposed team, and how much work it estimates will be provided to those
firms in this engagement. Firms to be utilized as part of the Respondent’s
team need to be identified and described in this section.
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7.1.7 Local Parties (maximum 2 pages): COR3 has the objective of fostering
the participation of Local Parties in the provision of professional services
and local expertise. Explain how the Local Party(ies) will add value to the
team and their expected role. Identify the Key Personnel from the Local
Party(ies) and provide an indication of the expected level of involvement
on the day-to-day activities and interaction with COR3.
7.1.8 Cost Proposal: Provide a complete labor table as provided in Attachment
D to this Proposal. The Cost Proposal shall include a price per unit for each
Step and each category of project, and an hourly rate for each of the
positions listed. The rates should be inclusive of all labor costs, including
any overhead and profit. No overtime will be paid by COR3 and no
additional markups will be allowed. The Cost Proposal must also include
the Respondent’s fully burdened unit price for project formulation project
package. Service to be provided may be done remotely based on COR3’s
approval and agreement that so doing would be most efficient and effective.
7.1.9 Commitment to Comply with all Applicable Federal and Puerto Rico
Local Regulations (1 page): Respondents shall explain their commitment
and plan to ensure compliance with all applicable Federal and Puerto Rico
laws, regulations, and policies. Indicate what characteristics of the team set
them apart in terms of commitment to comply and what specific trainings
and expertise reside within the team that reinforces the commitment to
compliance.
7.1.10 Evidence of Insurance: Respondent shall submit evidence of insurance
that meets or exceeds the requirements of the RFP, or a signed certified
statement from an official legally authorized to bind the Respondent that
commits the Respondent to deliver evidence of the required insurance
within seven (7) days of selection, including that the Puerto Rico Public-
Private Partnerships Authority and the Central Recovery and
Reconstruction Office have been listed as a named insured under its
insurance for purposes of this engagement.
7.2 Required Minimum Qualifications of Respondent
All Respondents are advised that the Selected Respondent shall comply with all public contracting
requirements set forth in the Treasury Department’s Circular Letter No. 1300-25-14, dated March
10, 2014, in connection to payment of income, and personal and real property taxes. The Selected
Respondent, upon Notice of Award, shall submit all certifications required under the cited circular
letter.
Also, the Selected Respondent must be prepared to submit all certifications compliance with
Puerto Rico Treasury Department's requirements for contracting with the government regarding
income and property (CRIM) taxes. These requirements are in accordance with Circular Letter No.
1300-13-97, dated April 11, 1997 stating instructions for the implementation of Administrative
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Bulletin No. OE-1 191-24 from the Governor’s Office dated August 18, 1991 amended by
Administrative Bulletin No. OE-1992-52 from the Governor’s Office dated August 28, 1992.
The following subsections are required minimum qualifications.
7.2.1 Type of Organization: The Respondent may be an individual, corporation,
partnership or a joint venture duly organized under the laws of the
Government of Puerto Rico. All Respondents, if incorporated, must show
they are in good standing with the Puerto Rico State Department (“State
Department”). All Respondents that are foreign corporations (out-of-state)
must file the necessary documents with the Division of Corporations of the
State Department requesting authorization to do business in Puerto Rico,
which shall have been requested prior to the date of submission of the
Proposal hereunder. Failure to demonstrate compliance with this
requirement may result in rejection of the Proposal without further
consideration.
7.2.2 Respondent’s Good Standing and Notification of Debarments, Legal
Issues, Ownership Structures, and Conflicts: If any of the Respondent’s
principals, officers, directors, or partners has been debarred, suspended, or
otherwise lawfully precluded from participating in any public procurement
activity, the Respondent shall disclose that information in its Proposal.
Failure to provide such information and complete Attachment A,
Respondent’s Good Standing, Limited Denial of Participation
(LDP)/Suspension or Debarment Status, Legal Issues, Ownership
Structures, and Conflicts shall result in the rejection of the Proposal.
COR3 will verify this information. It is mandatory that respondents shall
present a DUNS number with the proposal identifying the entity.
Each Respondent’s principals, officers, directors, and partners must be in
good standing with COR3 and the Government of Puerto Rico, and with
any Federal or local agency that has or had a contractual relationship with
the Respondent or any of its principals, officers, directors and partners.
Therefore, if a state, federal, or local agency has terminated any contract
with a Respondent for default, the Respondent will not be eligible to submit
a Proposal in response to this RFP.
In addition, each Respondent shall certify that none of its principals,
directors, officers or partners have been convicted or are under any
investigation by any state, federal forum, or in any other country, of the
crimes identified under PR Law No. 458 of December 29, 2000, as
amended. Certifications must encompass the prior experience of any and
all principals, officers, directors, and partners of the Respondent, including
prior corporate entities.
In addition, the Respondent must disclose the following information as part
of its proposal:
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• Actual, apparent, and potential conflicts;
• Ownership interests
• Identification of Officers, Directors, and Partners of bidding entities;
and
• Overlapping ownership interests or Directorships in other
companies.
7.2.3 Required Certifications from the Selected Respondent: The Selected
Respondent shall immediately submit upon receipt of a Notice of Award:
• Last Five Years Income Tax Form Filing, Puerto Rico Internal
Revenue (Hacienda) Department certification
• No Debt certification, Puerto Rico Internal Revenue (Hacienda)
Department
• Sales Tax Form Filing, Puerto Rico Internal Revenue (Hacienda)
Department
• Sales Tax No Debt certification, Puerto Rico Internal Revenue
(Hacienda) Department
• No Debt, Puerto Rico Municipal Taxes Collection Center (CRIM)
• Property Tax Form Filing, CRIM
• Employer Unemployment Filing, Puerto Rico Labor Department
certification
• Driver (Chauffer) Insurance Filing, Puerto Rico Labor Department
certification
• Minors Support Filing, ASUME certification
• Good Standing Certificate (corporations only), Puerto Rico
Department of State
• Corporate Resolution authorizing officer to sign the contract
• Sworn Statement, PR Law 2, January 4, 2018, as amended
7.2.4 By submitting a Proposal, each Respondent agrees that if the Proposal is
accepted, they will negotiate in good faith and enter into a contract with
COR3, for the Term set forth in this RFP (as defined in the Agreement),
including all exhibits and attachments hereto. Each Respondent also
accepts all terms and conditions of this RFP and any amendment thereto.
The Proposal and any additional information submitted by the Respondent
or negotiated between Respondent and COR3 prior to selection, together
with this RFP and any addenda hereto, will serve as confirmations of
Respondent’s acceptance of all terms and conditions therein.
7.2.5 Respondent, by submitting a Proposal, acknowledges and accepts that the
final agreement with COR3 will include all contract clauses required by 2
25
C.F.R. Part 200 and FEMA Guidance, as applicable, and that it is able to
comply with the requirements therein.
7.2.6 Equal Opportunity Employment and Use of Small, Minority, and
Woman-Owned Businesses: COR3 is an equal opportunity employer, and
strongly encourages vendors to include and involve small, minority, and
women-owned businesses as part of proposals. Selected Respondent shall
comply with all applicable state and federal labor laws and regulations
including, without limitation, Fair Labor Laws, Equal Employment
Opportunity Program requirements, unemployment tax, temporarily
disabled tax, worker’s compensation and social security taxes.
7.2.7 Respondent has adequate financial resources to perform the contract, or the
ability to obtain them; financial statements for the past two (2) years will be
required, or equivalent financial records must be included in the Proposal.
7.2.8 Respondent is able to comply with an accelerated delivery or performance
schedule.
7.2.9 Respondent has a satisfactory performance record.
7.2.10 Respondent has a satisfactory record of integrity and business ethics.
7.2.11 Respondent has the necessary organization, experience, accounting and
operational controls, and technical skills, or the ability to obtain them.
7.2.12 Respondent is otherwise qualified and eligible to receive an award under
applicable laws and regulations.
7.2.13 Neither Respondent nor any person or entity associated or partnering with
Respondent has been the subject of any adverse findings that may prevent
COR3 from selecting Respondent. Such adverse findings may include, but
are not limited to, the following:
i. Negative findings from a Federal Inspector General, or from the
U.S. Government Accountability Office or from an Inspector
General in another State
ii. Pending or unresolved legal action from the U.S. Attorney General
or from an attorney general in Puerto Rico or another State
iii. Pending litigation with the Government of Puerto Rico or any other
state
iv. Arson conviction or pending case
v. Harassment conviction or pending case
vi. Local, State, Federal or private mortgage arrears, default, or
foreclosure proceedings
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vii. In rem foreclosure
viii. Sale of tax lien or substantial tax wears
ix. Fair Housing violations or current litigation
x. Defaults under any Federal, state or locally-sponsored program
xi. A record of substantial building code violations or litigation against
properties owned and/or managed by Respondent or by any entity
or individual that comprises Respondent
xii. Past or pending voluntary or involuntary bankruptcy proceeding
xiii. Conviction for fraud, bribery, or grand larceny
xiv. Listing on the Federal or State excluded parties’ lists
7.3 Evaluation Methodology
Criteria for proposal evaluation are as follows:
Cover Page Pass/Fail
Transmittal Letter Pass/Fail
Firm Experience and Financial Capacity 15 points
Proposed Approach and Organization 15 points
Proposed Personnel and Experience 15 points
Inclusion of Small, Minority, and Women-
owned businesses
5 points
Local Parties 5 points
Cost Proposal (Hourly and by Deliverables) 45 points
Commitment to Complying with all applicable
Federal and Puerto Rico Law
Pass/Fail
Evidence of Insurance Pass/Fail
All proposals will first be screened for completeness and adherence to the requirements of this
RFP. COR3 will not consider substantively incomplete or non-responsive proposals. A non-
responsive proposal is a proposal that was not submitted in a timely manner, or that fails to meet
the material terms and conditions of this RFP, as determined by COR3.
COR3 alone reserves the right to waive any informality in any proposal and to accept any proposal
which it considers to be in the best interest of the public, and to reject any or all proposals. The
decision of COR3 in this regard shall be final.
The Proposals received in response to this RFP will be evaluated and ranked by a Proposal
Evaluation Committee in accordance with the process and evaluation criteria contained below.
The Evaluation Committee shall be composed of three COR3 employees appointed by COR3’s
Executive Director.
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After thoroughly reading and reviewing this RFP, each Evaluation Committee member shall
conduct his or her independent evaluation of the proposals received and grade the responses on
their merit in accordance with the evaluation criteria set forth in the following table. Point
assignments for each evaluation criterion will be at the discretion of each Evaluation Committee
member. Total point assignments from each Committee member will be added together for a total
overall score. This total score for each Respondent will determine the order of the Respondent’s
ranking.
If two or more of the top-ranking Respondents score within 10 points of each other, COR3 reserves
the right (but not the obligation) to request that those Respondents participate in an in-person or
telephone interview and/or provide additional written information. If this occurs, only those
Respondents will be under consideration for eventual contract award. Those Respondents will be
provided the opportunity to make a brief presentation based entirely upon the proposal as
submitted to COR3, and the Evaluation Committee will be able to ask questions related to their
review of the Respondent’s proposal or consistent with the intent of the RFP. Based on the results
of the interview and/or review of the additional information submitted for review, Evaluation
Committee members will each assign up to an additional 25 points to each Respondent’s score,
and the average of the score assigned by each Evaluation Committee Member for each Respondent
will be used to modify the final rankings. COR3 may award multiple contracts based on
Respondent qualifications.
COR3 will review all qualified responses to this RFP and select the proposal that is determined to
be in the best interest of the public in accordance with the intent of this RFP.
In addition, the contracts awarded by this solicitation may be used by any political subdivision of
the Government of Puerto Rico or eligible FEMA Public Assistance sub-grantee upon the consent
of COR3, the prospective political subdivision or eligible sub-grantee, and the Respondent.
Due to the exigencies related to the work required under this RFP, time is of the essence.
7.4 Firm Experience and Financial Capacity
Respondents must demonstrate experience and success in governmental affairs. Particular
consideration will be given to respondents who have knowledge and expertise in FEMA PA and
HMGP, knowledge and expertise in energy, telecommunications, water, and transportation.
Previous experience with federally funded hurricane relief programs, will be factored into
experience. Respondents that demonstrate they have the staff available to begin immediately may
be scored higher than those who need more time, or whose responses are vague. Proponent
provides documentation that demonstrate financial capacity financial to comply with all
requirements imposed by or as a result of the contract to be awarded pursuant to this RFP.
7.5 Proposed Approach and Organization
Respondents that outline a clear and straightforward approach to staffing and working with COR3
to provide expert advisory services will score higher than those that do not. Respondents shall
identify key goals and objectives, and methods for achieving high standards for the delivery of
services, in expectation of meeting or exceeding these goals. Respondents shall explain how they
28
will be organized to effectively deploy support for COR3 and clearly identify engagement manager
and different work stream leaders. In addition, Respondents shall demonstrate understanding of
the magnitude of the recovery efforts in Puerto Rico in the aftermath of Hurricanes Irma and María.
7.6 Proposed Personnel and Experience
Respondent is encouraged to ensure that the information submitted on each proposed member of
Respondent’s team clearly describe the experiences of that team member and any qualifications or
prior projects that support the person’s abilities and expertise related to the Scope of Services
presented in the RFP.
7.7 Inclusion of Local Parties
Demonstration of a strategic and meaningful integration of Local Parties will be evaluated
favorably. It is the responsibility of COR3 to encourage Respondents to engage Local Parties as
Team Members and Key Individuals to the greatest extent possible. Despite that the Scope of
Services pertains to numerous federal regulations, the services will be rendered for the benefit of
Puerto Rico, which requires clear understanding of local regulations, policy frameworks, and
infrastructure and fiscal challenges of the Island. Local Parties can significantly complement the
services of Mainland-based firms and enhance the effectiveness of Respondents in the
implementation and deployment of the required services.
Upon completion of scoring and any interviews that may be conducted, the Evaluation Committee
will prepare a Notice of Award Recommendation (or cancellation) document with the signature of
all Committee members. Once a final recommendation for the award (or cancellation) is made by
the Evaluation Committee to the Executive Director, the Executive Director can accept or
determine to cancel the RFP process, before an Agreement is signed. All Respondents shall
receive copy of the final determination.
If awarded, contracting procedure allows 10 calendar days after the award notification to Selected
Respondent to submit all documentation required for contract execution.
7.8 Cost Proposal
Proposals will be scored based on price proposal format provided in Attachment D. Additionally,
Respondents that clearly identify a plan for reducing program costs over the life of the program as
key milestones are reached and volume of activity reaches natural breaking points, and identifying
a clear plan for cost saving measures and/or efficiencies, will be scored favorably
7.9 Commitment to Complying with all Applicable Federal and Puerto Rico Laws,
Regulations, Executive Orders, and Policy
Respondents must demonstrate a commitment to complying with all applicable federal and Puerto
Rico laws, regulations, executive orders, and policy. Adherence to strong ethical and integrity
practices and unequivocal commitment to solid administrative practices is essential to COR3.
Understanding of Federal and local requirements is essential and will be highly considered.
29
Attachment A
Respondent’s Good Standing, Limited Denial of Participation (LDP)/Suspension or Debarment
Status, Legal Issues, Ownership Structures, and Conflicts
FROM:
Name of Primary Respondent:
Primary Respondent Authorized Representative:
Mailing Address:
Contact Telephone:
In addition, the Respondent discloses the Identification of Officers, Directors, and Partners of
proposing entities:
Name Position Proposing Entity Address
CERTIFICATION
The prospective primary proposer certifies to the best of its knowledge and belief, that it and its
Officers, Directors, and Partners of proposing entities:
(a) are in Good Standing with any and all Federal, State and local agencies that has or had a
contractual relationship with the Respondent or any of its Officers, Directors, and Partners of
proposing entity
a. are not presently debarred, suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from covered transactions by any Federal, State, and local
department or agency;
30
b. have not within a three-year period preceding this proposal been convicted of or had a
civil judgement rendered against them for commission of fraud or a criminal offense in
connection with obtaining, attempting to obtain, or performing a public (Federal, State
or local) transaction or contract under a public transaction; violation of Federal or State
antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification
or destruction of records, making false statements, or receiving stolen property;
c. are not presently indicted for or otherwise criminally or civilly charged by a
governmental entity (Federal, State or local) with commission of any of the offenses
enumerated in paragraph (1)(b) of this certification; including PR Law No. 458 of
December 29, 2000, as amended;
d. have not within a three-year period preceding this application/proposal had one or more
public transactions (Federal, State or local) terminated for cause or default.
____________________________________
Primary Respondent’s Name
____________________________________
Primary Respondent’s Authorized Representative Signature (If Corporation, Signed and Sealed)
____________________________________
Date
Where the prospective primary participant is unable to certify to any of the statements in this
certification, such prospective proposer shall attach an explanation to this proposal.
31
Attachment B
CERTIFICATION REGARDING DEBARMENT, SUSPENSION AND OTHER
RESPONSIBILITY MATTERS
INSTRUCTIONS FOR CERTIFICATION
1. By signing and submitting this proposal, the CONTRACTOR (referred to herein as the
“prospective lower tier participant”) is providing the certification set out below.
2. The certification in this clause is a material representation of fact upon which reliance was
placed when this transaction was entered into. If it is later determined that the prospective lower
tier participant knowingly rendered an erroneous certification, in addition to other remedies
available to the Federal Government the department or agency with which this transaction
originated may pursue available remedies, including suspension and/or debarment.
3. The prospective lower tier participant shall provide immediate written notice to the person
to which this proposal is submitted if at any time the prospective lower tier participant learns that
its certification was erroneous when submitted or had become erroneous by reason of changed
circumstances.
4. The terms covered transaction, debarred, suspended, ineligible, lower tier covered
transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily
excluded, as used in this clause, have the meaning set out in the Definitions and Coverage sections
of rules implementing Executive Order 12549. You may contact the person to which this proposal
is submitted for assistance in obtaining a copy of those regulations.
5. The prospective lower tier participant agrees by submitting this proposal that, should the
proposed covered transaction be entered into, it shall not knowingly enter into any lower tier
covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart
9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this
covered transaction, unless authorized by the department or agency with which this transaction
originated.
6. The prospective lower tier participant further agrees by submitting this proposal that it will
include this clause titled “Certification Regarding Debarment, Suspension, Ineligibility and
Voluntary Exclusion-Lower Tier Covered Transaction,” without modification, in all lower tier
covered transactions and in all solicitations for lower tier covered transactions.
7. A participant in a covered transaction may rely upon a certification of a prospective
participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR
part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from covered
transactions, unless it knows that the certification is erroneous. A participant may decide the
method and frequency by which it determines the eligibility of its principals. Each participant
may, but is not required to, check the List of Parties Excluded from Federal Procurement and
Nonprocurement Programs.
32
8. Nothing contained in the foregoing shall be construed to require establishment of a system
of records in order to render in good faith the certification required by this clause. The knowledge
and information of a participant is not required to exceed that which is normally possessed by a
prudent person in the ordinary course of business dealings.
9. Except for transactions authorized under paragraph 5 of these instructions, if a participant
in a covered transaction knowingly enters into a lower tier covered transaction with a person who
is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or
voluntarily excluded from participation in this transaction, in addition to other remedies available
to the Federal Government, the department or agency with which this transaction originated may
pursue available remedies, including suspension and/or debarment.
CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AN
VOLUNTARY EXCLUSION—LOWER TIER COVERED TRANSACTIONS
(1) The prospective lower tier participant certifies, by submission of this proposal, that neither
it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible,
or voluntarily excluded from participation in this transaction by any Federal department or agency.
(2) Where the prospective lower tier participant is unable to certify to any of the statements in
this certification, such prospective participant shall attach an explanation to this proposal.
CONTRACTOR Company Name RFP Number
Name
Title
Signature Date
33
Attachment C
ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA FORM
The Respondent hereby acknowledges that he/she/it has received and that he/she/it has
considered in the preparation of his/her/its bids, all requirements in the following Addenda to
this Bid/Proposal/Agreement:
Addendum
Number
Date of
Addendum
Acknowledgement
□ No Addendum was received in connection with this bid/proposal/contract.
Acknowledgement:
CONTRACTOR Company Name RFP Number
Name
Title
Signature Date
IMPORTANT NOTICE: THIS FORM MUST BE COMPLETED AND SUBMITTED BY ALL
RESPONDENTS. IF NO ADDENDA ARE RECEIVED, CHECK THE “NO ADDENDUM”
BOX ABOVE AND SIGN THE ACKNOWLEDGMENT. COR3 RETAINS THE ABSOLUTE
RIGHT TO REJECT ANY PROPOSAL THAT FAILS TO INCLUDE THIS
ACKNOWLEDGEMENT OF RECEIPT OF ADDENDA FORM.
34
Attachment D
COST PROPOSAL FORM
Step 1- Complete DDD Per FEMA Project Number
Price per unit for each category of project:
Project Size3 Estimated Amount of
Projects (Monthly) Proposed Unit Cost
Small Project
Minimum Team Members must include: 1
Scope Reviewer, 1 Estimator, 1 Insurance
Possible Additional Needed Team
Members: 1 EHP Reviewer, 1 HMP
Reviewer
200
$__________ /per project
Large Project (up to $1m)
Minimum Team Members must include: 1
PA SME, 1 Scope Reviewer, 1 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
100
$__________ /per project
Large Project ($1m-$5m)
Minimum Team Members must include: 1
PA SME, 2 Scope Reviewer, 1 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
50
$__________ /per project
Large Project >$5m up to $10)
Minimum Team Members must include: 1
PA SME, 3 Scope Reviewer, 2 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
20
$__________ /per project
Large Project > $10m
Minimum Team Members must include: 1
PA SME, 5 Scope Reviewer, 2 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
10
$__________ /per project
3 Small and large project thresholds are available here: https://www.fema.gov/public-assistance-indicator-and-project-thresholds.
35
Costs should include all inspections/re-inspections as needed, software to conduct timely and
efficient reports, safety equipment, etc.
Contractor may bill per project on this step when the Contractor makes a recommendation to COR3
and the DDD is approved by the Subrecipient.
Step 2 – Scope of Work and Cost Estimates per FEMA Project Number
Price per unit for each category of project:
Project Size Estimated Amount of
Projects (Monthly) Proposed Unit Cost
Small Project
Minimum Team Members must include: 1
Scope Reviewer, 1 Estimator, 1 Insurance
Possible Additional Needed Team
Members: 1 EHP Reviewer, 1 HMP
Reviewer
20
$__________ /per project
Large Project (up to $1m)
Minimum Team Members must include: 1
PA SME, 1 Scope Reviewer, 1 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
30
$__________ /per project
Large Project ($1m-$5m)
Minimum Team Members must include: 1
PA SME, 2 Scope Reviewer, 1 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
30
$__________ /per project
Large Project >$5m up to $10)
Minimum Team Members must include: 1
PA SME, 3 Scope Reviewer, 2 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
10
$__________ /per project
Large Project > $10m
Minimum Team Members must include: 1
PA SME, 5 Scope Reviewer, 2 Estimator,
1 Insurance, 1 EHP Reviewer, 1 HMP
Reviewer
10
$__________ /per project
Contractor may bill per project on this step when the Contractor transmits Transmittal Sheet to
COR3.
36
Step 3 – Special Task Orders
Title Hourly Rate
Project Manger
Public Assistance SME
Inspector
DDD Reviewer
Scope Reviewer
Estimator
Insurance Specialist
EHP Specialist
HMP Reviewer
Scope Drafter
Fixed Cost Estimate Drafter
Architect*
Civil Engineer*
Mechanical Engineer*
Electrical Engineer*
Structural Engineer*
Archeologist
Land Surveyor*
Agronomist
Biologist**
Administrative Assistant
*Must provide at least one team member in this role licensed in Puerto Rico.
**Must have experience working in Puerto Rico.
Add as many rows as needed for relevant and related labor categories.
Traveling and Lodging Expenses
Respondents should provide an estimate of the expected needed budget for traveling and lodging
expenses. Reimbursable expenses shall be pre-authorized by COR3.
37
Attachment E
APPLICABLE FEDERAL TERMS AND PROVISIONS
2 C.F.R. § 200.326 and 2 C.F.R. Part 200, Appendix II, Required Contract Clauses
Requirements under the Uniform Rules. A non-Federal entity's contracts must contain the
applicable contract clauses described in Appendix II to the Uniform Rules (Contract Provisions
for non-Federal Entity Contracts Under Federal Awards), which are set forth below. 2 C.F.R. §
200.326. For some of the required clauses we have included sample language or a reference a
non-Federal entity can go to in order to find sample language. Please be aware that this is sample
language only and that the non-Federal entity alone is responsible ensuring that all language
included in their contracts meets the requirements of 2 C.F.R. § 200.326 and 2 C.F.R. Part 200,
Appendix II. We do not include sample language for certain required clauses (remedies,
termination for cause and convenience, changes) as these must necessarily be written based on
the non-Federal entity's own procedures in that area.
1. Remedies.
a. Standard: Contracts for more than the simplified acquisition threshold ($150,000)
must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and
penalties as appropriate. See 2 C.F.R. Part 200, Appendix II, ¶ A.
b. Applicability: This requirement applies to all FEMA grant and cooperative
agreement programs.
2. Termination for Cause and Convenience.
a. All contracts in excess of $10,000 must address termination for cause and for
convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement. See 2 C.F.R. Part 200, Appendix II, ¶ B.
b. Applicability. This requirement applies to all FEMA grant and cooperative
agreement programs. 3. Equal Employment Opportunity.
a. Standard. Except as otherwise provided under 41 C.F.R. Part 60, all contracts that
meet the definition of "federally assisted construction contract" in 41 C.F.R. § 60
1.3 must include the equal opportunity clause provided under 41 C.F.R. § 60
1.4(b), in accordance with Executive Order 11246, Equal Employment
Opportunity (30 Fed. Reg. 12319, 12935, 3 C.F.R. Part, 1964-1965 Comp., p.339),
38
as amended by Executive Order 11375, Amending Executive Order 11246 Relating
to Equal Employment Opportunity, and implementing regulations at 41 C.F.R. Part
60 (Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor). See 2 C.F.R. Part 200, Appendix II, ¶ C.
b. Key Definitions.
(1) Federally Assisted Construction Contract. The regulation at 41 C.F.R. § 60-1.3 defines a "federally assisted construction contract" as any
agreement or modification thereof between any applicant and a person for
construction work which is paid for in whole or in part with funds obtained
from the Government or borrowed on the credit of the Government
pursuant to any Federal program involving a grant, contract, loan,
insurance, or guarantee, or undertaken pursuant to any Federal program
involving such grant, contract, loan, insurance, or guarantee, or any
application or modification thereof approved by the Government for a
grant, contract, loan, insurance, or guarantee under which the applicant
itself participates in the construction work.
(2) Construction Work. The regulation at 41 C.F.R. § 60-1.3 defines
"construction work" as the construction, rehabilitation, alteration,
conversion, extension, demolition or repair of buildings, highways, or other
changes or improvements to real property, including facilities providing
utility services. The term also includes the supervision, inspection, and
other onsite functions incidental to the actual construction.
c. Applicability. This requirement applies to all FEMA grant and cooperative
agreement programs.
d. The regulation at 41 C.F.R. Part 60-1.4(b) requires the insertion of the following
contract clause:
"During the performance of this contract, the contractor agrees as follows:
(1) The contractor will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, or national origin. The
contractor will take affirmative action to ensure that applicants are
employed, and that employees are treated during employment without
regard to their race, color, religion, sex, or national origin. Such action shall
include, but not be limited to the following: Employment, upgrading,
demotion, or transfer; recruitment or recruitment advertising; layoff or
termination; rates of pay or other forms of compensation; and selection for
39
training, including apprenticeship. The contractor agrees to post in
conspicuous places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this nondiscrimination
clause.
(2) The contractor will, in all solicitations or advertisements for employees
placed by or on behalf of the contractor, state that all qualified applicants
will receive considerations for employment without regard to race, color,
religion, sex, or national origin.
(3) The contractor will send to each labor union or representative of
workers with which he has a collective bargaining agreement or other
contract or understanding, a notice to be provided advising the said labor
union or workers' representatives of the contractor's commitments under
this Section, and shall post copies of the notice in conspicuous places
available to employees and applicants for employment.
(4) The contractor will comply with all provisions of Executive Order
11246 of September 24, 1965, and of the rules, regulations, and relevant
orders of the Secretary of Labor.
(5) The contractor will furnish all information and reports required by
Executive Order 11246 of September 24, 1965, and by rules, regulations,
and orders of the Secretary of Labor, or pursuant thereto, and will permit
access to his books, records, and accounts by the administering agency and
the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and orders.
(6) In the event of the contractor's noncompliance with the
nondiscrimination clauses of this contract or with any of the said rules,
regulations, or orders, this contract may be canceled, terminated, or
suspended in whole or in part and the contractor may be declared
ineligible for further Government contracts or federally assisted
construction contracts in accordance with procedures authorized in
Executive Order 11246 of September 24, 1965, and such other sanctions
as may be imposed and remedies invoked as provided in Executive Order
11246 of September 24, 1965, or by rule, regulation, or order of the
Secretary of Labor, or as otherwise provided by law.
(7) The contractor will include the portion of the sentence immediately
preceding paragraph (1) and the provisions of paragraphs (1) through (7) in
every subcontract or purchase order unless exempted by rules, regulations,
or orders of the Secretary of Labor issued pursuant to section 204 of
Executive Order 11246 of September 24, 1965, so that such provisions will
be binding upon each subcontractor or vendor. The contractor will take
such action with respect to any subcontract or purchase order as the
40
administering agency may direct as a means of enforcing such provisions,
including sanctions for noncompliance: Provided, however, That in the
event a contractor becomes involved in, or is threatened with, litigation with
a subcontractor or vendor as a result of such direction by the administering
agency the contractor may request the United States to enter into such
litigation to protect the interests of the United States."
4. Davis Bacon Act and Copeland Anti-Kickback Act.
a. Applicability of Davis-Bacon Act. The Davis-Bacon Act only applies to the
emergency Management Preparedness Grant Program, Homeland Security Grant
Program, Nonprofit Security Grant Program, Tribal Homeland Security Grant
Program, Port Security Grant Program, and Transit Security Grant Program. It
does not apply to other FEMA grant and cooperative agreement programs,
including the Public Assistance Program.
b. All prime construction contracts in excess of $2,000 awarded by non-Federal
entities must include a provision for compliance with the Davis-Bacon Act (40
U.S.C. §§ 3141-3144 and 3146-3148) as supplemented by Department of
Labor regulations at 29 C.F.R. Part 5 (Labor Standards Provisions Applicable
to Contracts Covering Federally Financed and Assisted Construction)). See 2
C.F.R. Part 200, Appendix II, ¶ D.
c. In accordance with the statute, contractors must be required to pay wages to
laborers and mechanics at a rate not less than the prevailing wages specified in a
wage determination made by the Secretary of Labor. In addition, contractors must
be required to pay wages not less than once a week.
d. The non-Federal entity must place a copy of the current prevailing wage
determination issued by the Department of Labor in each solicitation. The decision
to award a contract or subcontract must be conditioned upon the acceptance of the
wage determination. The non-Federal entity must report all suspected or reported
violations to the Federal awarding' agency.
e. In contracts subject to the Davis-Bacon Act, the contracts must also include a
provision for compliance with the Copeland "Anti-Kickback" Act (40 U.S.C. §
3145), as supplemented by Department of Labor regulations at 29 C.F.R. Part 3
(Contractors and Subcontractors on Public Building or Public Work Financed in
Whole or in Part by Loans or Grants from the United States). The Copeland Anti
Kickback Act provides that each contractor or subrecipient must be prohibited from
inducing, by any means, any person employed in the construction, completion, or
repair of public work, to give up any part of the compensation to which he or she is
41
otherwise entitled. The non-Federal entity must report all suspected or reported
violations to FEMA.
f. The regulation at 29 C.F.R. § 5.5(a) does provide the required contract clause that
applies to compliance with both the Davis-Bacon and Copeland Acts. However, as
discussed in the next subsection, the Davis-Bacon Act does not apply to Public Assistance recipients and subrecipients. As such, FEMA requires the following contract clause:
"Compliance with the Copeland "Anti-Kickback" Act.
(1) Contractor. The contractor shall comply with 18 U.S.C. § 874, 40
U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be
applicable, which are incorporated by reference into this contract.
(2) Subcontracts. The contractor or subcontractor shall insert in any
subcontracts the clause above and such other clauses as the FEMA may by
appropriate instructions require, and also a clause requiring the
subcontractors to include these clauses in any lower tier subcontracts. The
prime contractor shall be responsible for the compliance by any
subcontractor or lower tier subcontractor with all of these contract clauses.
(3) Breach. A breach of the contract clauses above may be grounds for
termination of the contract, and for debarment as a contractor and
subcontractor as provided in 29 C.F.R. § 5.12."
5. Contract Work Hours and Safety Standards Act.
a. Applicability: This requirement applies to all FEMA grant and cooperative
agreement programs.
b. Where applicable (see 40 U.S.C. § 3701), all contracts awarded by the non-Federal
entity in excess of $100,000 that involve the employment of mechanics or laborers
must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as
supplemented by Department of Labor regulations at 29 C.F.R. Part 5. See 2 C.F.R.
Part 200, Appendix II, ¶ E.
c. Under 40 U.S.C. § 3702, each contractor must be required to compute the wages of
every mechanic and laborer on the basis of a standard work week of 40 hours. Work
in excess of the standard work week is permissible provided that the worker is
compensated at a rate of not less than one and a half times the basic rate of pay for
all hours worked in excess of 40 hours in the work week.
42
d. The requirements of 40 U.S.C. § 3704 are applicable to construction work and
provide that no laborer or mechanic must be required to work in surroundings or
under working conditions which are unsanitary, hazardous or dangerous. These
requirements do not apply to the purchases of supplies or materials or articles
ordinarily available on the open market, or contracts for transportation or
transmission of intelligence.
e. The regulation at 29 C.F.R. § 5.5(b) provides the required contract clause
concerning compliance with the Contract Work Hours and Safety Standards Act:
"Compliance with the Contract Work Hours and Safety Standards Act.
(1) Overtime requirements. No contractor or subcontractor contracting
for any part of the contract work which may require or involve the
employment of laborers or mechanics shall require or permit any such
laborer or mechanic in any workweek in which he or she is employed on
such work to work in excess of forty hours in such workweek unless such
laborer or mechanic receives compensation at a rate not less than one and
one-halftimes the basic rate of pay for all hours worked in excess of forty
hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the
event of any violation of the clause set forth in paragraph (1) of this
section the contractor and any subcontractor responsible therefor shall be
liable for the unpaid wages. In addition, such contractor and
subcontractor shall be liable to the United States (in the case of work done
under contract for the District of Columbia or a territory, to such District
or to such territory), for liquidated damages. Such liquidated damages
shall be computed with respect to each individual laborer or mechanic,
including watchmen and guards, employed in violation of the clause set
forth in paragraph (1) of this section, in the sum of $10 for each calendar
day on which such individual was required or permitted to work in excess
of the standard workweek of forty hours without payment of the overtime
wages required by the clause set forth in paragraph (1) of this section.
(3) Withholding for unpaid wages and liquidated damages. The (write in
the name of the Federal agency or the loan or grant recipient) 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 any
moneys payable on account of work performed by the contractor or
subcontractor under any such contract or any other Federal contract with
the same prime contractor, or any other federally-assisted contract subject
to the Contract Work Hours and Safety Standards Act, which is held by the
same prime contractor, such sums as may be determined to be necessary to
satisfy any liabilities of such contractor or subcontractor for unpaid wages
43
and liquidated damages as provided in the clause set forth in paragraph (2)
of this section.
(4) Subcontracts. The contractor or subcontractor shall insert in any
subcontracts the clauses set forth in paragraph (1) through (4) of this
section and also a clause requiring the subcontractors to include these
clauses in any lower tier subcontracts. The prime contractor shall be
responsible for compliance by any subcontractor or lower tier
subcontractor with the clauses set forth in paragraphs (1) through (4) of
this section." 6. Rights to Inventions Made Under a Contract or Agreement.
a. Stafford Act Disaster Grants. This requirement does not apply to the Public
Assistance, Hazard Mitigation Grant Program, Fire Management Assistance
Grant Program, Crisis Counseling Assistance and Training Grant Program,
Disaster Case Management Grant Program, and Federal Assistance to Individuals
and Households - Other Needs Assistance Grant Program, as FEMA awards under
these programs do not meet the definition of "funding agreement."
b. If the FEMA award meets the definition of "funding agreement" under 37 C.F.R. § 401.2(a) and the non-Federal entity wishes to enter into a contract with a small
business firm or nonprofit organization regarding the substitution of parties,
assignment or performance of experimental, developmental, or research work
under that "funding agreement," the non-Federal entity must comply with the
requirements of 37 C.F.R. Part 401 (Rights to Inventions Made by Nonprofit
Organizations and Small Business Firms Under Government Grants, Contracts
and Cooperative Agreements), and any implementing regulations issued by
FEMA. See 2 C.F.R. Part 200, Appendix II, ¶ F.
c. The regulation at 3 7 C.F.R. § 401.2(a) currently defines "funding agreement" as
any contract, grant, or cooperative agreement entered into between any Federal
agency, other than the Tennessee Valley Authority, and any contractor for the
performance of experimental, developmental, or research work funded in whole
or in part by the Federal government. This term also includes any assignment,
substitution of parties, or subcontract of any type entered into for the performance
of experimental, developmental, or research work under a funding agreement as
defined in the first sentence of this paragraph. 7. Clean Air Act and the Federal Water Pollution Control Act. Contracts of amounts in excess
of $150,000 must contain a provision that requires the contractor to agree to comply with all
applicable standards, orders, or regulations issued pursuant to the Clean Air Act (42 U.S.C.
§§ 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. §§
1251-1387). Violations must be reported to FEMA and the Regional Office of the
Environmental Protection Agency. See 2 C.F.R. Part 200, Appendix II, ¶ G.
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a. The following provides a sample contract clause concerning compliance for
contracts of amounts in excess of $150,000:
"Clean Air Act
(1) The contractor agrees to comply with all applicable standards, orders
or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C.
§ 7401 et seq.
(2) The contractor agrees to report each violation to the (name of the
state agency or local or Indian tribal government) and understands and
agrees that the (name of the state agency or local or Indian tribal
government} will, in tum, report each violation as required to assure
notification to the (name of recipient), Federal Emergency Management
Agency, and the appropriate Environmental Protection Agency Regional
Office.
(3) The contractor agrees to include these requirements in each
subcontract exceeding $100,000 financed in whole or in part with Federal
assistance provided by FEMA.
Federal Water Pollution Control Act
(1) The contractor agrees to comply with all applicable standards, orders
or regulations issued pursuant to the Federal Water Pollution Control Act,
as amended, 33 U.S.C. 1251 et seq.
(2) The contractor agrees to report each violation to the (name of the
state agency or local or Indian tribal government) and understands and
agrees that the (name of the state agency or local or Indian tribal
government) will, in tum, report each violation as required to assure
notification to the (name of recipient), Federal Emergency
Management Agency, and the appropriate Environmental Protection
Agency Regional Office.
(3) The contractor agrees to include these requirements in each
subcontract exceeding $100,000 financed in whole or in part with Federal
assistance provided by FEMA." 8. Debarment and Suspension.
a. Applicability: This requirement applies to all FEMA grant and cooperative
agreement programs.
45
b. Non-federal entities and contractors are subject to the debarment and suspension
regulations implementing Executive Order 12549, Debarment and Suspension
(1986) and Executive Order 12689, Debarment and Suspension (1989) at 2 C.F.R.
Part 180 and the Department of Homeland Security's regulations at 2 C.F.R. Part
3000 (Nonprocurement Debarment and Suspension).
c. These regulations restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs and activities. See 2 C.F.R. Part 200, Appendix II, ¶ I; and Chapter IV, ¶ 6.d and Appendix C, ¶ 2. A contract award must not be made to parties listed in the SAM Exclusions. SAM Exclusions is the list maintained by the General Services Administration that contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. SAM exclusions can be accessed at www.sam.gov. See 2 C.F.R. § 180.530; Chapter IV, ¶ 6.d and Appendix C, ¶ 2.
d. In general, an "excluded" party cannot receive a Federal grant award or a contract
within the meaning of a "covered transaction," to include subawards and
subcontracts. This includes parties that receive Federal funding indirectly, such as
contractors to recipients and subrecipients. The key to the exclusion is whether
there is a "covered transaction," which is any nonprocurement transaction (unless
excepted) at either a "primary" or "secondary" tier. Although "covered
transactions" do not include contracts awarded by the Federal Government for
purposes of the nonprocurement common rule and DHS 's implementing
regulations, it does include some contracts awarded by recipients and subrecipient.
e. Specifically, a covered transaction includes the following contracts for goods or
services:
(1) The contract is awarded by a recipient or subrecipient in the amount of
at least $25, 000.
(2) The contract requires the approval of FEMA, regardless of amount.
(2) The contract is for federally-required audit services.
(3) A subcontract is also a covered transaction if it is awarded by the
contractor of a recipient or subrecipient and requires ·either the approval of
FEMA or is in excess of $25,000.
d. The following provides a debarment and suspension clause. It incorporates an
optional method of verifying that contractors are not excluded or disqualified:
"Suspension and Debarment
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(1) This contract is a covered transaction for purposes of 2 C.F.R. pt. 180
and 2 C.F.R. pt. 3000. As such the contractor is required to verify that none
of the contractor, its principals (defined at 2 C.F.R. § 180.995), or its
affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R.
§ 180.940) or disqualified (defined at 2 C.F.R. § 180.935).
(2) The contractor must comply with 2 C.F.R. pt. 180, subpart C and 2
C.F.R. pt. 3000, subpart C and must include a requirement to comply with
these regulations in any lower tier covered transaction it enters into.
(3) This certification is a material representation of fact relied upon by
(insert name of subrecipient). If it is later determined that the contractor
did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000,
subpart C, in addition to remedies available to (name of state agency
serving as recipient and name of subrecipient), the Federal Government
may pursue available remedies, including but not limited to suspension
and/ or debarment.
(4) The bidder or proposer agrees to comply with the requirements of2
C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer
is valid and throughout the period of any contract that may arise from this
offer. The bidder or proposer further agrees to include a provision
requiring such compliance in its lower tier covered transactions." 9. Byrd Anti-Lobbying Amendment.
a. Applicability: This requirement applies to all FEMA grant and cooperative
agreement programs.
b. Contractors that apply or bid for an award of $100,000 or more must file the required certification. See 2 C.F.R. Part 200, Appendix II, ¶ J; 44 C.F.R. Part 18; Chapter IV, 6.c; Appendix C, ¶ 4.
c. Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or
attempting to influence an officer or employee of any agency, a member of
Congress, officer or employee of Congress, or an employee of a member
of Congress in connection with obtaining any Federal contract, grant or
any other award covered by 31 U.S.C. § 1352. Each tier must also disclose
any lobbying with non-Federal funds that takes place in connection with
obtaining any Federal award. Such disclosures are forwarded from tier to
tier up to the non-Federal award. See Chapter IV, ¶ 6.c and Appendix C, ¶
4.
d. The following provides a Byrd Anti-Lobbying contract clause:
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"Byrd Anti-Lobbying Amendment, 31 U.S.C. § 1352 (as amended)
Contractors who apply or bid for an award of $100,000 or more shall file the required
certification. Each tier certifies to the tier above that it will not and has not used Federal
appropriated funds to pay any person or organization for influencing or attempting to
influence an officer or employee of any agency, a member of Congress, officer or
employee of Congress, or an employee of a member of Congress in connection with
obtaining any Federal contract, grant, or any other award covered by
31 U.S.C. § 1352. Each tier shall also disclose any lobbying with non-Federal funds
that takes place in connection with obtaining any Federal award. Such disclosures are
forwarded from tier to tier up to the recipient."
APPENDIX A, 44 C.F.R. PART 18-CERTIFICATION REGARDING LOBBYING
Certification for Contracts, Grants, Loans, and Cooperative Agreements
(To be submitted with each bid or offer exceeding $100,000)
The undersigned [Contractor] certifies, to the best of his or her knowledge, that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of
the undersigned, to any person for influencing or attempting to influence an officer or
employee of an agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with the awarding of any
Federal contract, the making of any Federal grant, the making of any Federal loan, the
entering into of any cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any Federal contract, grant, loan, or cooperative
agreement.
2. If any funds other than 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 in connection with this Federal contract, grant, loan, or
cooperative agreement, the undersigned shall complete and.submit Standard Form
LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants,
and contracts under grants, loans, and cooperative agreements) and that all
subrecipients shall certify and disclose accordingly.
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This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352
(as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file
the required certification shall be subject to a civil penalty of not less than $10,000 and
not more than $100,000 for each such failure.
The Contractor, _____________, certifies or affirms the truthfulness and accuracy of
each statement of its certification and disclosure, if any. In addition, the Contractor
understands and agrees that the provisions of 31 U.S.C. § 3801 et seq., apply to this
certification and disclosure, if any.
___________________________________
Signature of Contractor's Authorized Official
____________________________________
Name and Title of Contractor's Authorized Official
________________
Date" 10. Procurement of Recovered Materials.
a. Applicability: This requirement applies to all FEMA grant and cooperative
agreement programs.
b. A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, Pub. L. No. 89-272 (1965) (codified as amended by the Resource Conservation and Recovery Act at 42 U.S.C. § 6962). See 2 C.F.R. Part 200, Appendix II, ¶ K; 2 C.F.R. § 200.322; Chapter V, ¶ 7.
c. The requirements of Section 6002 include procuring only items designated in
guidelines of the EPA at 40 C.F.R. Part 247 that contain the highest percentage of
recovered materials practicable, consistent with maintaining a satisfactory level of
competition, where the purchase price of the item exceeds $10,000 or the value of
the quantity acquired by the preceding fiscal year exceeded $10,000; procuring
solid waste management services in a manner that maximizes energy and resource
recovery; and establishing an affirmative procurement program for procurement of
recovered materials identified in the EPA guidelines.
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d. The following provides the clause that a state agency or agency of a political
subdivision of a state and its contractors can include in contracts meeting the
above contract thresholds:
"(1) In the performance of this contract, the Contractor shall make
maximum use of products containing recovered materials that are EPA
designated items unless the product cannot be acquired
(i) Competitively within a timeframe providing for compliance
with the contract performance schedule;
(ii) Meeting contract performance requirements; or
(iii) At a reasonable price.
(2) Information about this requirement is available at EPA's
Comprehensive Procurement Guidelines web site,
http://www.epa.gov/cpg/. The list of EPA-designate items is available at
http://www.epa.gov/cpg/products.htm. "
11. Additional FEMA Requirements.
a. The Uniform Rules authorize FEMA to require additional provisions for non
Federal entity contracts. FEMA, pursuant to this authority, requires or
recommends the following:
b. Changes.
To be eligible for FEMA assistance under the non-Federal entity's FEMA grant or
cooperative agreement, the cost of the change, modification, change order, or
constructive change must be allowable, allocable, within the scope of its grant or
cooperative agreement, and reasonable for the completion of project scope. FEMA
recommends, therefore, that a non-Federal entity include a changes clause in its
contract that describes how, if at all, changes can be made by either party to alter the
method, price, or schedule of the work without breaching the contract. The language
of the clause may differ depending on the nature of the contract and the end-item
procured.
c. Access to Records.
All non-Federal entities must place into their contracts a provision that all contractors
and their successors, transferees, assignees, and subcontractors acknowledge and
agree to comply with applicable provisions governing Department and FEMA access
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to records, accounts, documents, information, facilities, and staff. See DRS Standard
Terms and Conditions, v 3.0, ¶ XXVI (2013).
d. The following provides a contract clause regarding access to records:
"Access to Records. The following access to records requirements apply to this
contract:
(1) The contractor agrees to provide (insert name of state agency or local
or Indian tribal government), (insert name of recipient), the FEMA
Administrator, the Comptroller General of the United States, or any of
their authorized representatives access to any books, documents, papers,
and records of the Contractor which are directly pertinent to this contract
for the purposes of making audits, examinations, excerpts, and
transcriptions.
(2) The Contractor agrees to permit any of the foregoing parties to
reproduce by any means whatsoever or to copy excerpts and transcriptions
as reasonably needed.
(3) The contractor agrees to provide the FEMA Administrator or his
authorized representatives access to construction or other work sites
pertaining to the work being completed under the contract."
12. DHS Seal, Logo, and Flags.
a. All non-Federal entities must place in their contracts a provision that a contractor
shall not use the DHS seal(s), logos, crests, or reproductions of flags or likenesses of DHS agency officials without specific FEMA pre-approval. See DHS Standard Terms and Conditions, v 3.0, if XXV (2013).
b. The following provides a contract clause regarding DHS Seal, Logo, and Flags:
"The contractor shall not use the DHS seal(s), logos, crests, or reproductions of
flags or likenesses of DHS agency officials without specific FEMA pre
approval."
13. Compliance with Federal Law, Regulations, and Executive Orders.
a. All non-Federal entities must place into their contracts an acknowledgement that
FEMA financial assistance will be used to fund the contract along with the
requirement that the contractor will comply with all applicable federal law,
regulations, executive orders, and FEMA policies, procedures, and directives.
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b. The following provides a contract clause regarding Compliance with Federal
Law, Regulations, and Executive Orders: "This is an acknowledgement that
FEMA financial assistance will be used to fund the contract only. The contractor
will comply will all applicable federal law, regulations, executive orders, FEMA
policies, procedures, and directives."
14. No Obligation by Federal Government.
a. The non-Federal entity must include a provision in its contract that states that the
Federal Government is not a party to the contract and is not subject to any
obligations or liabilities to the non-Federal entity, contractor, or any other party
pertaining to any matter resulting from the contract.
b. The following provides a contract clause regarding no obligation by the Federal
Government: "The Federal Government is not a party to this contract and is not
subject to any obligations or liabilities to the non-Federal entity, contractor, or any
other party pertaining to any matter resulting from the contract."
15. Program Fraud and False or Fraudulent Statements or Related Acts.
a. The non-Federal entity must include a provision in its contract that the contractor
acknowledges that 31 U.S.C. Chap. 38 (Administrative Remedies for False
Claims and Statements) applies to its actions pertaining to the contract.
b. The following provides a contract clause regarding Fraud and False or Fraudulent
or Related Acts: "The contractor acknowledges that 31 U.S.C. Chap. 38
(Administrative Remedies for False Claims and Statements) applies to the
contractor's actions pertaining to this contract”.
HUD GENERAL PROVISIONS
General Provisions:
1. PROVISIONS REQUIRED BY LAW DEEMED INSERTED
Each and every provision of law and clause required by law to be inserted in this contract shall
be deemed to be inserted herein and the contract shall be read and enforced as though it were
included herein, and if through mistake or otherwise any such provision is not inserted, or is not
correctly inserted, then upon the application of either party the contract shall forthwith be
physically amended to make such insertion or correction.
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2. STATUTORY AND REGULATORY COMPLIANCE
Contractor shall comply with all laws and regulations applicable to the Community
Development Block Grant-Disaster Recovery funds appropriated by the Disaster Relief
Appropriations Act, 2013 (Pub. L. 113-2), including but not limited to the applicable Office of
Management and Budget Circulars, which may impact the administration of funds and/or set
forth certain cost principles, including the allowability of certain expenses.
3. BREACH OF CONTRACT TERMS
The Agency reserves its right to all administrative, contractual, or legal remedies, including but
not limited to suspension or termination of this contract, in instances where the Contractor or
any of its subcontractors violate or breach any contract term. If the Contractor or any of its
subcontractors violate or breach any contract term, they shall be subject to such sanctions and
penalties as may be appropriate. The duties and obligations imposed by the contract documents
and the rights and remedies available thereunder shall be in addition to and not a limitation of
any duties, obligations, rights and remedies otherwise imposed or available by law.
4. REPORTING REQUIREMENTS
The Contractor shall complete and submit all reports, in such form and according to such
schedule, as may be required by the Agency. The Contractor shall cooperate with all Puerto Rico
efforts to comply with HUD requirements and regulations pertaining to reporting, including but
not limited to 24 C.F.R. §§ 85.40-41 (or 84.50-52, if applicable) and 570.507.
5. ACCESS TO RECORDS
The Agency, the U.S. Department of Housing and Urban Development, the Comptroller General
of the United States, or any of their duly authorized representatives, shall have, at any time and
from time to time during normal business hours, access to any work product, books, documents,
papers, and records of the Contractor which are related to this contract, for the purpose of
inspection, audits, examinations, and making excerpts, copies and transcriptions.
6. MAINTENANCE/RETENTION OF RECORDS
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All records connected with this contract will be maintained in a central location and will be
maintained for a period of at least four (4) years following the date of final payment and close-out
of all pending matters related to this contract.
7. SMALL AND MINORITY FIRMS, WOMEN’S BUSINESS ENTERPRISES, AND
LABOR SURPLUS AREA FIRMS
The Contractor will take necessary affirmative steps to assure that minority firms, women’s
business enterprises, and labor surplus area firms are used in subcontracting when possible.
Steps include:
i. Placing qualified small and minority businesses and women’s business enterprises on
solicitation lists;
ii. Assuring that small and minority businesses, and women’s business enterprises are
solicited whenever they are potential sources;
iii. Dividing total requirements, when economically feasible, into smaller tasks or quantities
to permit maximum participation by small and minority business, and women’s business
enterprises;
iv. Establishing delivery schedules, where the requirement permits, which encourage
participation by small and minority business, and women’s business enterprises; and
v. Using the services and assistance of the Small Business Administration, and the Minority
Business Development Agency of the Department of Commerce.
Additionally, for contracts of $10,000 or more, the Contractor shall file Form HUD 2516
(Contract and Subcontract Activity) with the Agency on a quarterly basis. A copy of that form
is available at http://www.hud.gov/offices/adm/hudclips/forms/files/2516.pdf.
8. RIGHTS TO INVESTIONS MADE UNDER A CONTRACT OR AGREEMENT
Contracts or agreements for the performance of experimental, developmental, or research work
shall provide for the rights of the Federal Government and the recipient in any resulting invention
in accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations
and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,”
and any implementing regulations issued by HUD
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9. TITLE VI OF THE CIVIL RIGHTS ACT OF 1964
The Contractor shall comply with the provisions of Title VI of the Civil Rights Act of 1964. No
person shall, on the grounds of race, color, or national origin, be excluded from participation in,
be denied the benefits of, or be subjected to discrimination under any program or activity
receiving federal financial assistance.
10. SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF
1974
The Contractor shall comply with the provisions of Section 109 of the Housing and Community
Development Act of 1974. No person in the United States shall on the grounds of race, color,
national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected
to discrimination under any program or activity funded in whole or in part with funds made
available under this title. Section 109 further provides that discrimination on the basis of age
under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped
individual as provided in Section 504 of the Rehabilitation Act of 1973, as amended, is prohibited.
11. SECTION 504 OF THE REHABILITATION ACT OF 1973
The Contractor shall comply with section 504 of the Rehabilitation Act of 1973 (29 U.S.C. §
794), as amended, and any applicable regulations.
The Contractor agrees that no qualified individual with handicaps shall, solely on the basis of
handicap, be excluded from participation in, be denied the benefits of, or otherwise be subjected
to discrimination under any program or activity that receives Federal financial assistance from
HUD.
12. AGE DISCRIMINATION ACT OF 1975
The Contractor shall comply with the Age Discrimination Act of 1975 (42 U.S.C. § 6101 et
seq.), as amended, and any applicable regulations. No person in the United States shall, on the
basis of age, be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under, any program or activity receiving Federal financial assistance.
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13. DEBARMENT, SUSPENSION, AND INELIGIBILITY
The Contractor represents and warrants that it and its subcontractors are not debarred or
suspended or otherwise excluded from or ineligible for participation in Federal assistance
programs subject to 2 C.F.R. part 2424.
14. CONFLICTS OF INTEREST
The Contractor shall notify the Agency as soon as possible if this contract or any aspect related
to the anticipated work under this contract raises an actual or potential conflict of interest (as
defined at 2 C.F.R. Part 215 and 24 C.F.R. § 85.36 (2013) (or 84.42 (2013), if applicable)). The
Contractor shall explain the actual or potential conflict in writing in sufficient detail so that the
Agency is able to assess such actual or potential conflict. The Contractor shall provide the
Agency any additional information necessary for the Agency to fully assess and address such
actual or potential conflict of interest. The Contractor shall accept any reasonable conflict
mitigation strategy employed by the Agency, including but not limited to the use of an
independent subcontractor(s) to perform the portion of work that gives rise to the actual or
potential conflict.
15. SUBCONTRACTING
When subcontracting, the Contractor shall solicit for and contract with such subcontractors in a
manner providing for fair competition. Some of the situations considered to be restrictive of
competition include but are not limited to:
i. Placing unreasonable requirements on firms in order for them to qualify to do business,
ii. Requiring unnecessary experience and excessive bonding,
iii. Noncompetitive pricing practices between firms or between affiliated companies,
iv. Noncompetitive awards to consultants that are on retainer contracts,
v. Organizational conflicts of interest,
vi. Specifying only a brand name product instead of allowing an equal product to be
offered and describing the performance of other relevant requirements of the
procurement, and
vii. Any arbitrary action in the procurement process.
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The Contractor represents to the Government of Puerto Rico that all work shall be performed by
personnel experienced in the appropriate and applicable profession and areas of expertise, taking
into account the nature of the work to be performed under this contract.
The Contractor will include these HUD General Provisions in every subcontract issued by it so
that such provisions will be binding upon each of its subcontractors as well as the requirement
to flow down such terms to all lower-tiered subcontractors.
16. ASSIGNABILITY
The Contractor shall not assign any interest in this contract, and shall not transfer any interest in
the same (whether by assignment or novation) without prior written approval of the Government
of Puerto Rico.
17. INDEMNIFICATION
The Contractor shall indemnify, defend, and hold harmless the Government of Puerto Rico and
its agents and employees from and against any and all claims, actions, suits, charges, and
judgments arising from or related to the negligence or willful misconduct of the Contractor in the
performance of the services called for in this contract.
18. COPELAND “ANTI-KICKBACK” ACT (Applicable to all construction or repair
contracts)
Salaries of personnel performing work under this contract shall be paid unconditionally and not
less often than once a month without payroll deduction or rebate on any account except only
such payroll deductions as are mandatory by law or permitted by the applicable regulations
issued by the Secretary of Labor pursuant to the Copeland “Anti-Kickback Act” of June 13,
1934 (48 Stat. 948; 62 Stat. 740; 63 Stat. 108; Title 18 U.S.C. § 874; and Title 40 U.S.C. § 276c).
The Contractor shall comply with all applicable “Anti-Kickback” regulations and shall insert
appropriate provisions in all subcontracts covering work under this contract to ensure
compliance by subcontractors with such regulations, and shall be responsible for the submission
of affidavits required of subcontractors thereunder except as the Secretary of Labor may
specifically provide for variations of or exemptions from the requirements thereof.
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19. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT
(Applicable to construction contracts exceeding $2,000 and contracts exceeding $2,500 that
involve the employment of mechanics or laborers)
The Contractor shall comply with Sections 103 and 107 of the Contract Work Hours and Safety
Standards Act (40 U.S.C. §§ 327-330) as supplemented by Department of Labor regulations (29
C.F.R. part 5).
All laborers and mechanics employed by contractors or subcontractors shall receive overtime
compensation in accordance with and subject to the provisions of the Contract Work Hours and
Safety Standards Act, and the contractors and subcontractors shall comply with all regulations
issued pursuant to that act and with other applicable Federal laws and regulations pertaining to
labor standards.
20. DAVIS-BACON ACT
(Applicable to construction contracts exceeding $2,000 when required by Federal program
legislation)
The Contractor shall comply with the Davis Bacon Act (40 U.S.C. §§ 276a to 276a-7) as
supplemented by Department of Labor regulations (29 C.F.R. part 5).
All laborers and mechanics employed by contractors or subcontractors, including employees of
other governments, on construction work assisted under this contract, and subject to the
provisions of the federal acts and regulations listed in this paragraph, shall be paid wages at rates
not less than those prevailing on similar construction in the locality as determined by the
Secretary of Labor in accordance with the Davis-Bacon Act.
On a semi-annual basis, the Contractor shall submit Form HUD 4710 (Semi-Annual labor
Standards Enforcement Report) to the Agency. A fillable version of that form is available at
http://www.hud.gov/offices/adm/hudclips/forms/hud4.cfm.
21. TERMINATION FOR CAUSE (Applicable to contracts exceeding $10,000)
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If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner his
obligations under this contract, or if the Contractor shall violate any of the covenants,
agreements, or stipulations of this contract, the Government of Puerto Rico shall thereupon have
the right to terminate this contract by giving written notice to the Contractor of such termination
and specifying the effective date thereof, at least five (5) days before the effective date of such
termination. In such event, all finished or unfinished documents, data, studies, surveys,
drawings, maps, models, photographs, and reports prepared by the Contractor under this contract
shall, at the option of the Government of Puerto Rico, become the Government of Puerto Rico’s
property and the Contractor shall be entitled to receive just and equitable compensation for any
work satisfactorily completed hereunder. Notwithstanding the above, the Contractor shall not be
relieved of liability to the Government of Puerto Rico for damages sustained by the Government
of Puerto Rico by virtue of any breach of the contract by the Contractor, and the Government of
Puerto Rico may withhold any payments to the Contractor for the purpose of set-off until such
time as the exact amount of damages due to the Government of Puerto Rico from the Contractor
is determined.
22. TERMINATION FOR CONVENIENCE (Applicable to contracts exceeding $10,000)
The Government of Puerto Rico may terminate this contract at any time by giving at least ten
(10) days’ notice in writing to the Contractor. If the contract is terminated by the Government of
Puerto Rico as provided herein, the Contractor will be paid for the time provided and expenses
incurred up to the termination date.
23. SECTION 503 OF THE REHABILITATION ACT OF 1973 (Applicable to contracts
exceeding $10,000)
The Contractor shall comply with section 503 of the Rehabilitation Act of 1973 (29 U.S.C. §
793), as amended, and any applicable regulations. Equal Opportunity for Workers With
Disabilities
1) The Contractor will not discriminate against any employee or applicant for employment
because of physical or mental disability in regard to any position for which the employee or
applicant for employment is qualified. The Contractor agrees to take affirmative action to
employ, advance in employment and otherwise treat qualified individuals with disabilities
without discrimination based on their physical or mental disability in all employment
practices, including the following:
a) Recruitment, advertising, and job application procedures;
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b) Hiring, upgrading, promotion, award of tenure, demotion, transfer, layoff, termination,
right of return from layoff and rehiring;
c) Rates of pay or any other form of compensation and changes in compensation;
d) Job assignments, job classifications, organizational structures, position descriptions,
lines of progression, and seniority lists;
e) Leaves of absence, sick leave, or any other leave;
f) Fringe benefits available by virtue of employment, whether or not administered by the
contractor;
g) Selection and financial support for training, including apprenticeship, professional
meetings, conferences, and other related activities, and selection for leaves of absence to
pursue training;
h) Activities sponsored by the contractor including social or recreational programs; and
i) Any other term, condition, or privilege of employment.
2) The Contractor agrees to comply with the rules, regulations, and relevant orders of the
Secretary of Labor issued pursuant to the act.
3) In the event of the Contractor’s noncompliance with the requirements of this clause, actions
for noncompliance may be taken in accordance with the rules, regulations, and relevant
orders of the Secretary of Labor issued pursuant to the act.
4) The Contractor agrees to post in conspicuous places, available to employees and applicants
for employment, notices in a form to be prescribed by the Deputy Assistant Secretary for
Federal Contract Compliance Programs, provided by or through the contracting officer. Such
notices shall state the rights of applicants and employees as well as the Contractor’s
obligation under the law to take affirmative action to employ and advance in employment
qualified employees and applicants with disabilities. The Contractor must ensure that
applicants and employees with disabilities are informed of the contents of the notice (e.g.,
the Contractor may have the notice read to a visually disabled individual, or may lower the
posted notice so that it might be read by a person in a wheelchair).
5) The Contractor will notify each labor organization or representative of workers with which
it has a collective bargaining agreement or other contract understanding, that the Contractor
is bound by the terms of section 503 of the Rehabilitation Act of 1973, as amended, and is
committed to take affirmative action to employ and advance in employment individuals with
physical or mental disabilities.
6) The Contractor will include the provisions of this clause in every subcontract or purchase
order in excess of $10,000, unless exempted by the rules, regulations, or orders of the
Secretary issued pursuant to section 503 of the act, as amended, so that such provisions will
be binding upon each subcontractor or vendor. The Contractor will take such action with
respect to any subcontract or purchase order as the Deputy Assistant Secretary for Federal
Contract Compliance Programs may direct to enforce such provisions, including action for
noncompliance.
24. EXECUTIVE ORDER 11246
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(Applicable to construction contracts and subcontracts exceeding $10,000)
The Contractor shall comply with Executive Order 11246 of September 24, 1965, entitled
“Equal Employment Opportunity,” as amended by Executive Order 11375 of October 13, 1967,
and as supplemented in Department of Labor regulations (41 CFR chapter 60).
During the performance of this contract, the Contractor agrees as follows:
1) The Contractor shall not discriminate against any employee or applicant for employment
because of race, color, religion, sex, or national origin. The Contractor shall take affirmative
action to ensure that applicants for employment are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex, or national origin. Such
action shall include, but not be limited to, the following: employment, upgrading, demotion,
or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other
forms of compensation; and selection for training, including apprenticeship.
2) The Contractor shall post in conspicuous places, available to employees and applicants for
employment, notices to be provided by Contracting Officer setting forth the provisions of
this non-discrimination clause. The Contractor shall state that all qualified applicants will
receive consideration for employment without regard to race, color, religion, sex, or national
origin.
3) The Contractor will, in all solicitations or advertisements for employees placed by or on
behalf of the contractor, state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex or national origin.
4) The Contractor will send to each labor union or representative of workers with which he has
a collective bargaining agreement or other contract or understanding, a notice, to be provided
by the agency contracting officer, advising the labor union or workers representative of the
contractor’s commitments under Section 202 of Executive Order 11246 of September 24,
1965, and shall post copies of the notice in conspicuous places available to employees and
applicants for employment.
5) The Contractor will comply with all provisions of Executive Order 11246 of September 24,
1965, and of the rules, regulations and relevant orders of the Secretary of Labor.
6) The Contractor will furnish all information and reports required by Executive Order 11246
of September 24, 1965, and by the rules, regulations and orders of the Secretary of Labor,
or pursuant thereto, and will permit access to books, records and accounts by the contracting
agency and the Secretary of Labor for purposes of investigation to ascertain compliance with
such rules, regulations and orders.
7) In the event of the Contractor’s non-compliance with the non-discrimination clause of this
contract or with any of such rules, regulations or orders, this contract may be cancelled,
terminated or suspended in whole or in part and the contractor may be declared ineligible
for further government contracts in accordance with procedures authorized in Executive
Order 11246 and such other sanctions as may be imposed and remedies invoked as provided
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in Executive Order 11246 of September 24, 1965, or by rule, regulation or order of the
Secretary of Labor, or as otherwise provided by law.
8) Contractor shall incorporate the provisions of A through G above in every subcontract or
purchase order unless exempted by rules, regulations or orders of the Secretary of Labor so
that such provisions shall be binding on such subcontractor. The Contractor will take such
action with respect to any subcontract or purchase order as the contracting agency may direct
as a means of enforcing such provisions including sanctions for non-compliance, provided,
however, that in the event the contractor becomes involved in, or is threatened with, litigation
with a subcontractor or vendor as a result of such direction by the contracting agency, the
Contractor may request the United States to enter into such litigation to protect the interests
of the United States.
25. CERTIFICATION OF NONSEGREGATED FACILITIES (Applicable to construction
contracts exceeding $10,000)
The Contractor certifies that it does not maintain or provide for its establishments, and that it
does not permit employees to perform their services at any location, under its control, where
segregated facilities are maintained. It certifies further that it will not maintain or provide for
employees any segregated facilities at any of its establishments, and it will not permit employees
to perform their services at any location under its control where segregated
facilities are maintained. The Contractor agrees that a breach of this certification is a violation of
the equal opportunity clause of this contract.
As used in this certification, the term “segregated facilities” 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 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 any other reason.
The Contractor further agrees that (except where it has obtained for specific time periods) it will
obtain identical certification from proposed subcontractors prior to the award of subcontracts
exceeding $10,000 which are not exempt from the provisions of the equal opportunity clause;
that it will retain such certifications in its files; and that it will forward the preceding notice to
such proposed subcontractors (except where proposed subcontractors have submitted identical
certifications for specific time periods).
26. CERTIFICATION OF COMPLIANCE WITH CLEAN AIR AND WATER ACTS
(Applicable to contracts exceeding $100,000)
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The Contractor and all subcontractors shall comply with the requirements of the Clean Air Act,
as amended, 42 U.S.C. § 1857 et seq., the Federal Water Pollution Control Act, as amended,
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U.S.C. § 1251 et seq., and the regulations of the Environmental Protection Agency with respect
thereto, at 40 C.F.R. Part 15 and 32, as amended, Section 508 of the Clean Water Act (33 U.S.C.
§ 1368) and Executive Order 11738.
In addition to the foregoing requirements, all nonexempt contractors and subcontractors shall
furnish to the owner, the following:
1) A stipulation by the Contractor or subcontractors, that any facility to be utilized in the
performance of any nonexempt contract or subcontract, is not listed on the Excluded Party
Listing System pursuant to 40 C.F.R. 32 or on the List of Violating Facilities issued by the
Environmental Protection Agency (EPA) pursuant to 40 C.F.R. Part 15, as amended.
2) Agreement by the Contractor to comply with all the requirements of Section 114 of the
Clean Air Act, as amended, (42 U.S.C. § 1857 c-8) and Section 308 of the Federal Water
Pollution Control Act, as amended, (33 U.S.C. § 1318) relating to inspection, monitoring,
entry, reports and information, as well as all other requirements specified in said Section 114
and Section 308, and all regulations and guidelines issued thereunder.
3) A stipulation that as a condition for the award of the contract, prompt notice will be given
of any notification received from the Director, Office of Federal Activities, EPA, indicating
that a facility utilized, or to be utilized for the contract, is under consideration to be listed on
the Excluded Party Listing System or the EPA List of Violating Facilities.
4) Agreement by the Contractor that he will include, or cause to be included, the criteria and
requirements in paragraph (A)through (D) of this section in every nonexempt subcontract
and requiring that the Contractor will take such action as the government may direct as a
means of enforcing such provisions.
27. LOBBYING (Applicable to contracts exceeding $100,000)
The Contractor certifies, to the best of his or her knowledge and belief, that:
1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the
Contractor, to any person for influencing or attempting to influence an officer or employee
of an agency, a Member of Congress, an officer or employee of Congress, or an employee
of a Member of Congress in connection with the awarding of any Federal contract, the
making of any Federal grant, the making of any Federal loan, the entering into of any
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cooperative agreement, and the extension, continuation, renewal, amendment, or
modification of any Federal contract, grant, loan, or cooperative agreement.
2) If any funds other than 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
in connection with this Federal contract, grant, loan, or cooperative agreement, the
Contractor shall complete and submit Standard Form-LLL, “Disclosure Form to Report
Lobbying,” in accordance with its instructions.
3) The Contractor shall require that the language of this certification be included in the award
documents for all subawards at all tiers (including subcontracts, subgrants, and contracts
under grants, loans, and cooperative agreements) and that all subrecipients shall certify and
disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this
transaction was made or entered into. Submission of this certification is a prerequisite for making
or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who
fails to file the required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
28. BONDING REQUIREMENTS
(Applicable to construction and facility improvement contracts exceeding $100,000)
The Contractor shall comply with Puerto Rico bonding requirements, unless they have not been
approved by HUD, in which case the Contractor shall comply with the following minimum
bonding requirements:
1) A proposal guarantee from each proposal equivalent to five percent of the proposal price.
The “proposal guarantee” shall consist of a firm commitment such as a proposal bond,
certified check, or other negotiable instrument accompanying a proposal as assurance that the
Proponent will, upon acceptance of his proposal, execute such contractual documents as may
be required within the time specified.
2) A performance bond on the part of the Contractor for 100 percent of the contract price. A
“performance bond” is one executed in connection with a contract to secure fulfillment of
all the Contractor’s obligations under such contract.
3) A payment bond on the part of the Contractor for 100 percent of the contract price. A “payment
bond” is one executed in connection with a contract to assure payment as required by law of
all persons supplying labor and material in the execution of the work provided for in the
contract.
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29. SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 (As
required by applicable thresholds)
1) 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.
2) The parties to this contract agree to comply with HUD’s regulations in 24 C.F.R. part 135,
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 135 regulations.
3) 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 3 preference, shall set forth
minimum number and job titles subject to hire, availability of apprenticeship and training
positions, the qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work shall begin.
4) The Contractor agrees to include this section 3 clause in every subcontract subject to
compliance with regulations in 24 C.F.R. part 135, 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 C.F.R. part 135. 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 C.F.R.
part 135.
5) The Contractor will certify that any vacant employment positions, including training
positions, that are filled: (1) after the Contractor is selected but before the contract is
executed, and (2) with persons other than those to whom the regulations of 24 C.F.R. part
135 require employment opportunities to be directed, were not filled to circumvent the
Contractor’s obligations under 24 C.F.R. part 135.
6) Noncompliance with HUD’s regulations in 24 C.F.R. part 135 may result in sanctions,
termination of this contract for default, and debarment or suspension from future HUD
assisted contracts.
7) With respect to work performed in connection with section 3 covered Indian housing
assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act
(25U.S.C. § 450e) also applies to the work to be performed under this contract. Section 7(b)
requires that to the greatest extent feasible: (i) preference and opportunities for training and
employment shall be given to Indians, and (ii) preference in the award of contracts and
subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises.
Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree
to comply with section 3 to the maximum extent feasible, but not in derogation of
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compliance with section 7(b).
8) For contracts exceeding $100,000, the Contractor shall submit Form HUD 60002 (Section 3
Summary Report) to the Agency on a quarterly basis, notwithstanding the annual reporting
requirement set forth in that form’s instructions.
30. FAIR HOUSING ACT
Contractor shall comply with the provisions of the Fair Housing Act of 1968 as amended. The
act prohibits discrimination in the sale or rental of housing, the financing of housing or the
provision of brokerage services against any person on the basis of race, color, religion, sex,
national origin, handicap or familial status. The Equal Opportunity in Housing Act prohibits
discrimination against individuals on the basis of race, color, religion, sex or national origin in
the sale, rental, leasing or other disposition of residential property, or in the use or occupancy of
housing assisted with Federal funds.