Southern Nevada Regional Housing Authority Section 3 Program HUD Economic Opportunity Program February 20141

Procurement vs. Contract Obligation The Section 3 has TWO Program Components: Procurement Preference Contract Obligation February 20142

Procurement  Contractor Initial Response  Form must be fully completed and signed and turned in with proposal to be considered responsive PROPOSAL MUST INCLUDE: February 20143

Business Concern Preference  Fill out enclosed checklist  You MUST include verification to get bidding preference CURRENT JOINT CITY/COUNTY CERTIFICATE CURRENT JOINT CITY/COUNTY CERTIFICATE SECTION 3 RESIDENT-OWNED ENTERPRISE SECTION 3 RESIDENT-OWNED ENTERPRISE SUBCONTRACTING 25% OF AWARD TO SECTION 3 BUSINESS SUBCONTRACTING 25% OF AWARD TO SECTION 3 BUSINESS 30% OF WORKFORCE ARE CURRENTLY SECTION 3 RESIDENTS OR WERE IN THE LAST 3 YEARS 30% OF WORKFORCE ARE CURRENTLY SECTION 3 RESIDENTS OR WERE IN THE LAST 3 YEARS February 20144

Section 3 Business Concern Certification  The Housing Authority does NOT provide pre-qualified certifications  SNRHA will accept certificates from Clark County & area Municipalities ONLY as verification of Section 3 Business Concern status  We do NOT maintain a Section 3 subcontractor list February 20145

Section 3 Plan Preference  For RFP & QBS solicitations, there are additional points available depending on how you report you will comply with our Section 3 requirements MAX POINT SECTION 3 COMPLIANCE OPTION SELECTION FACTORS 5 pointsPriority 1: Direct hiring of Section 3 residents 3 pointsPriority 2: Joint venture with SNRHA resident-owned business 1 pointPriority 3: Contractor pays for skilled training for SNRHA residents 1 pointPriority 4: Contractor makes a contribution to Section 3 Job Development Fund 5 pointsMaximum Section 3 Preference Points February 20146

Bidding Preference Lowest Bid Max Threshold for Bumping Lesser of: Less than $100, % of that bid or $9,000 $100,000, but less than $200, % of that bid or $16,000 $200,000, but less than $300, % of that bid or $21,000 $300,000, but less than $400, % of that bid or $24,000 $400,000, but less than $500, % of that bid or $25,000 $500,000, but less than $1 million 5.0% of that bid or $40,000 $ 1 million, but less than $2 million 4.0% of that bid or $60,000 $2 million, but less than $4 million 3.0% of that bid or $80,000 $4 million, but less than $7 million 2.0% of that bid or $105,000 February 20147

Contract Requirements Contract Amount Percent Requirements $25,000, but less than $100, % of the contract amount $100,000, but less than $200, % of the contract amount $200,000, but less than $300, % of the contract amount $300,000, but less than $400, % of the contract amount $400,000, but less than $500, % of the contract amount $500,000, but less than $1 million 3.5% of the contract amount $ 1 million, but less than $2 million 3.0% of the contract amount $2 million, but less than $4 million 2.5% of the contract amount $4 million or more 2.0% of the contract amount February 20148

Hiring Requirement TOTAL CONTRACT/ SERVICE DOLLARSMinimum Number of Hires $100,000, but less than $500,0001 New Hire At least $500,000, but less than $750,0002 New Hires At least $750,000, but less than $1 million3 New Hires At least $1 million, but less than $2 million4 New Hires At least $2 million, but less than $3 million5 New Hires At least $3 million, but less than $4 million6 New Hires For each additional $1 million over $4 million1 New Hire per $1 million February 20149

4 Options To Meet Total Requirements 1. Joint venture with SNRHA resident- owned business 2. Direct hiring of SNRHA residents or low-income residents 3. Incur cost of providing training for Section 3 hires or SNRHA residents 4. Make contribution to SNRHA Section 3 Job Development fund February

Sample Table of Monitoring and Enforcement Requirements (Effective November 15, 2012) Contract ScheduleBilling TotalCompliance Action: ContributionCompliance Action: Hiring Compliance Action: Joint Venture Compliance Action: Training 13%No action required Joint 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 37% 25% Contribution due within 14 calendar days of invoice payment (check date) 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 83% 75% Contribution due within 14 calendar days of invoice payment (check date) 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

Section 3 Numerical Goals  SNRHA will track any new hires during your contract period  If you hire during this period, 30% of your aggregate new hires MUST be certified as Section 3 hires February

Hiring 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 Report February

Hiring 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

2014 Income Eligibility effective December 18, 2013 MAX Earnings Per Household Size  1 Person Household: $34,450  2 Person Household: $39,400  3 Person Household: $44,300  4 Person Household: $49,200  5 Person Household: $53,150  6 Person Household: $57,100 February

Enforcement  Compliance required at 50% project completion & 100% benchmark for contracts exceeding 90 days  Non-compliance notice issued & future payment withheld  Restrict contract close-out  Fines will be assessed  Contract termination  Ineligibility for future awards  Possible debarment February

Q & A  If you have any questions or need additional information please contact: Ms. Stacey Bostwick SNRHA’s Section 3 Coordinator February