Southern Nevada Southern Nevada Regional Housing Regional Housing

AuthorityAuthority

Section 3 ProgramHUD Economic Opportunity

Program

February 2014February 2014 11

Procurement vs. Procurement vs. Contract ObligationContract Obligation

The Section 3 has TWO Program The Section 3 has TWO Program Components: Components:

• Procurement Preference

• Contract Obligation

February 2014February 2014 22

ProcurementProcurement

Contractor Initial ResponseContractor Initial Response Form must be fully completed and signed Form must be fully completed and signed

and turned in with proposal to be and turned in with proposal to be considered responsiveconsidered responsive

PROPOSAL MUST INCLUDE:

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Business Concern Business Concern PreferencePreference

Fill out enclosed checklistFill out enclosed checklist You MUST include verification to get You MUST include verification to get

bidding preference bidding preference CURRENT JOINT CITY/COUNTY CERTIFICATECURRENT JOINT CITY/COUNTY CERTIFICATE SECTION 3 RESIDENT-OWNED ENTERPRISESECTION 3 RESIDENT-OWNED ENTERPRISE SUBCONTRACTING 25% OF AWARD TO SECTION SUBCONTRACTING 25% OF AWARD TO SECTION

3 BUSINESS3 BUSINESS 30% OF WORKFORCE ARE CURRENTLY 30% OF WORKFORCE ARE CURRENTLY

SECTION 3 RESIDENTS OR WERE IN THE LAST 3 SECTION 3 RESIDENTS OR WERE IN THE LAST 3 YEARSYEARS

February 2014February 2014 44

Section 3 Business Concern Section 3 Business Concern CertificationCertification

The Housing Authority does NOT provide The Housing Authority does NOT provide pre-qualified certifications pre-qualified certifications

SNRHA will accept certificates from Clark SNRHA will accept certificates from Clark County & area Municipalities ONLY as County & area Municipalities ONLY as verification of Section 3 Business Concern verification of Section 3 Business Concern statusstatus

We do NOT maintain a Section 3 We do NOT maintain a Section 3 subcontractor listsubcontractor list

February 2014February 2014 55

Section 3 Plan Section 3 Plan PreferencePreference

For RFP & QBS solicitations, there are For RFP & QBS solicitations, there are additional points available depending on how additional points available depending on how you report you will comply with our Section 3 you report you will comply with our Section 3 requirementsrequirementsMAX POINT

SECTION 3 COMPLIANCE OPTION SELECTION FACTORS

5 points Priority 1: Direct hiring of Section 3 residents

3 points Priority 2: Joint venture with SNRHA resident-owned business

1 point Priority 3: Contractor pays for skilled training for SNRHA residents

1 pointPriority 4: Contractor makes a contribution to Section 3 Job Development

Fund

5 points Maximum Section 3 Preference Points

February 2014February 2014 66

Bidding PreferenceBidding Preference

Lowest BidLowest Bid Max Threshold for BumpingMax Threshold for Bumping

Lesser of:Lesser of:

Less than $100,000Less than $100,000 10.0% of that bid or $9,00010.0% of that bid or $9,000

$100,000, but less than $200,000$100,000, but less than $200,000 9.0% of that bid or $16,0009.0% of that bid or $16,000

$200,000, but less than $300,000$200,000, but less than $300,000 8.0% of that bid or $21,0008.0% of that bid or $21,000

$300,000, but less than $400,000$300,000, but less than $400,000 7.0% of that bid or $24,0007.0% of that bid or $24,000

$400,000, but less than $500,000$400,000, but less than $500,000 6.0% of that bid or $25,0006.0% of that bid or $25,000

$500,000, but less than $1 million$500,000, but less than $1 million 5.0% of that bid or $40,0005.0% of that bid or $40,000

$ 1 million, but less than $2 million$ 1 million, but less than $2 million 4.0% of that bid or $60,0004.0% of that bid or $60,000

$2 million, but less than $4 million$2 million, but less than $4 million 3.0% of that bid or $80,0003.0% of that bid or $80,000

$4 million, but less than $7 million$4 million, but less than $7 million 2.0% of that bid or $105,0002.0% of that bid or $105,000

February 2014February 2014 77

Contract RequirementsContract Requirements

Contract AmountContract Amount Percent RequirementsPercent Requirements

$25,000, but less than $100,000$25,000, but less than $100,000 6.0 % of the contract amount6.0 % of the contract amount

$100,000, but less than $200,000$100,000, but less than $200,000 5.5% of the contract amount5.5% of the contract amount

$200,000, but less than $300,000$200,000, but less than $300,000 5.0% of the contract amount5.0% of the contract amount

$300,000, but less than $400,000$300,000, but less than $400,000 4.5% of the contract amount4.5% of the contract amount

$400,000, but less than $500,000$400,000, but less than $500,000 4.0% of the contract amount4.0% of the contract amount

$500,000, but less than $1 million$500,000, but less than $1 million 3.5% of the contract amount3.5% of the contract amount

$ 1 million, but less than $2 million$ 1 million, but less than $2 million 3.0% of the contract amount3.0% of the contract amount

$2 million, but less than $4 million$2 million, but less than $4 million 2.5% of the contract amount2.5% of the contract amount

$4 million or more$4 million or more 2.0% of the contract amount2.0% of the contract amount

February 2014February 2014 88

Hiring RequirementHiring RequirementTOTAL CONTRACT/ SERVICE

DOLLARSMinimum Number of

Hires

$100,000, but less than $500,000 1 New Hire

At least $500,000, but less than $750,000

2 New Hires

At least $750,000, but less than $1 million

3 New Hires

At least $1 million, but less than $2 million

4 New Hires

At least $2 million, but less than $3 million

5 New Hires

At least $3 million, but less than $4 million

6 New Hires

For each additional $1 million over $4 million

1 New Hire per $1 million

February 2014February 2014 99

4 Options To Meet 4 Options To Meet Total RequirementsTotal Requirements

1.1. Joint venture with SNRHA resident-Joint venture with SNRHA resident-owned businessowned business

2.2. Direct hiring of SNRHA residents or Direct hiring of SNRHA residents or low-income residentslow-income residents

3.3. Incur cost of providing training for Incur cost of providing training for Section 3 hires or SNRHA residentsSection 3 hires or SNRHA residents

4.4. Make contribution to SNRHA Section 3 Make contribution to SNRHA Section 3 Job Development fundJob Development fund

February 2014February 2014 1010

Sample Table of Monitoring and Enforcement Requirements (Effective November 15, 2012)

Contract Schedule Billing Total Compliance Action: Contribution Compliance Action: HiringCompliance Action: Joint Venture

Compliance Action: Training

  13% No action required No action requiredJoint Venture Agreement must be executed & submitted within 45 days of SNRHA Contract Execution

If requesting consideration of an internal training program or other non-certified training program, proposals must be submitted within 30 days of contract execution for evaluation and value determination

25%   No action required No action required No action required No action required

  37%25% Contribution due within 14 calendar days of invoice payment (check date)

No action required No action required No action required

50%   No action required

50% Progress Compliance documented through payrolls due within 14 calendar days; as determined by initial contract schedule and/or amended with formal change orders

No action required

50% Progress Compliance documented through invoices and receipts due within 14 calendar days; as determined by initial contract schedule and/or amended with formal change orders

  68%50% Contribution due within 14 calendar days of invoice payment (check date)

50% Progress Compliance must be achieved before payments exceeding 50% billing can be released

No action required

50% Progress Compliance must be achieved before payments exceeding 50% billing can be released

75%   No action required No action required No action required No action required

  83%75% Contribution due within 14 calendar days of invoice payment (check date)

No action required No action required No action required

100%  

100% Contribution due before final payment can be released, due no later than 14 calendar days of end date established by contract and/or subsequent change orders

Final Compliance documented through payrolls due within 14 calendar days of end date established by contract and/or subsequent change orders

Documentation of payments to subcontracted/Joint Venture partner must be provided prior to release of final payment

Final Compliance documented through payrolls due within 14 calendar days of end date established by contract and/or subsequent change orders

February 2014February 2014 1111

Section 3 Numerical Section 3 Numerical GoalsGoals

SNRHA will track any new hires during SNRHA will track any new hires during your contract periodyour contract period

If you hire during this period, 30% of your If you hire during this period, 30% of your aggregate new hires MUST be certified as aggregate new hires MUST be certified as Section 3 hiresSection 3 hires

February 2014February 2014 1212

Hiring ProcessHiring Process Contractor awarded MUST meet with Section 3 Coordinator prior to contract approval and signing to ensure Section 3 Plan is in place

Staff will assist contractor with referrals and screening based on Intent to Hire Form

Report hires for the project using the Employee Placement ReportFebruary 2014February 2014 1313

Hiring ProcessHiring Process Only NEW hires will count towards Section 3 obligation

When hiring, SNRHA residents must get “first look” before pursuing other hires

Only pre-certified SNRHA residents & Section 3 residents are eligible

You WILL NOT receive credit for non-certified hires, and will only receive credit for the hours once certified

You will receive credit for wages ONLY, no overhead burden

February 2014February 2014 1414

2014 Income Eligibility2014 Income Eligibilityeffective December 18, 2013effective December 18, 2013

MAX Earnings Per Household SizeMAX Earnings Per Household Size

1 Person Household: $34,4501 Person Household: $34,450 2 Person Household: $39,4002 Person Household: $39,400 3 Person Household: $44,3003 Person Household: $44,300 4 Person Household: $49,2004 Person Household: $49,200 5 Person Household: $53,1505 Person Household: $53,150 6 Person Household: $57,1006 Person Household: $57,100

February 2014February 2014 1515

EnforcementEnforcement Compliance required at 50% project completion Compliance required at 50% project completion

& 100% benchmark for contracts exceeding 90 & 100% benchmark for contracts exceeding 90 daysdays

Non-compliance notice issued & future payment Non-compliance notice issued & future payment withheldwithheld

Restrict contract close-outRestrict contract close-out Fines will be assessedFines will be assessed Contract terminationContract termination Ineligibility for future awards Ineligibility for future awards Possible debarmentPossible debarment

February 2014February 2014 1616

Q & AQ & A

If you have any questions or need additional If you have any questions or need additional information please contact:information please contact:

Ms. Stacey BostwickMs. Stacey Bostwick

SNRHA’s Section 3 CoordinatorSNRHA’s Section 3 Coordinator

702-922-7204702-922-7204

sbostwick@snvrha.orgsbostwick@snvrha.org

February 2014February 2014 1717