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HomeMy WebLinkAboutCDGB-sample-prebid-guide SAMPLE PRE-BID CONFERENCE GUIDE Grantees may utilize this sample to create their own pre-bid conference guide to ensure all potential bidders are aware of their requirements under a CDBG assisted project. The Grantee must receive a “Award Letter” from the City’s Grant Administrator before awarding any construction contracts. A copy of the applicable wage decision and the Federal Labor Standards Provisions (HUD- 4010) must be physically attached to contracts between the prime contractor and all sub- contractors. If the contractor or any subcontractor fails to comply will all applicable regulations, funds shall be withheld from the general contractor until all requirements have been met. This project is subject to all federal and state laws, regulations and guidelines pertaining to public works projects in California. The grantee may not enter a contract with any contractor or subcontractor that has been debarred from working on federally funded construction projects. The eligibility status of all contractors must be verified by the Grantee before being allowed to perform any work on this project. All contractors and subcontractors working on this project must pay workers time and one half of the base wage rates listed on the wage decision for all hours worked in excess of 40 hours per week. Workers must receive hourly fringe benefits and/or a cash equivalent for all hours worked, including overtime. Fringe benefits do not have to be paid at time and one half. The Copeland Anti-Kickback Act makes it illegal for contractors and subcontractors to coerce or intimidate employees to relinquish or give back any of their wages earned on this project. All contractors and subcontractors working on this project must keep accurate payroll records of all hours worked on this project, including signed timecards. Payroll records must be kept for at least three years after grant closeout. Payments made by a contractor to an employee must be verifiable. Payments may not be made with an I.O.U., equipment, or any other form of barter. All contractors and subcontractors must submit certified weekly payroll records to the Grantee through the Grant Administrator within seven days after regular payment date of the payroll period. No contractor or subcontractor shall employ workers on this project under the age of 16. Contractors and subcontractors are not permitted to make payroll deductions which are contrary to state and federal law. All contractors and subcontractors must pay their workers no less than the hourly wages listed on federal wage determination for each classification of work performed on this project. In addition, if the applicable wage determination contains an hourly fringe benefit amount, the worker must receive benefits equal to that amount or a cash equivalent. All workers must be paid, in full, at least once a week. These requirements apply to salaried workers employed on this project engaged in physical or manual construction labor. It is the responsibility of the general contractor to clearly communicate all labor standards and Davis-Bacon requirements to all subcontractors employed on this project. All workers must be paid at an hourly rate for the type of work performed. Helpers or Trainees may not be utilized on this project. Only the classifications listed in the applicable wage determination or apprentices may be used on this project. Laborers are not permitted to perform any skilled work which falls under the classification of another trade. For example, a laborer may not perform any electrical, carpentry, plumbing, sheet metal, etc. work on this project. All contractors and subcontractors having questions regarding the classification of workers shall direct their inquiries to the Grant Administrator. Contractors and subcontractors may use and classify workers on this project as apprentices provided that the workers are duly registered in a bona fide apprenticeship program recognized by the U.S. Department of Labor, Bureau of Apprenticeship and Training. If a contractor or subcontractor intends to utilize apprentices on this project, they must forward documentation to the Grant Administrator to verify the enrollment of the employee in an approved Apprenticeship Program. Verification must be provided before the apprentice is permitted to work on the job site. Contractors and subcontractors may not exceed the ratio of apprentices to journeymen as established by the apprenticeship program. Contractors and subcontractors are required to submit certified weekly payroll records to the Grantee through the Grant Administrator on a weekly basis within seven days after the regular payment date of the payroll period. If an employee performs more than one classification per week on this project, that employee should be listed twice showing the division of work on separate lines of the payroll. Contractors and subcontractors must submit documentation to the Grantee through the Grant Administrator to verify the type and the amounts paid into a bona fide fringe benefit program. The following are examples of bona fide fringe benefit plans: Health, life, dental, vision or other similar insurance premiums paid by the employer; Pension or retirement contributions made by the employer into a plan recognized by the Internal Revenue Service; Expenses of certain recognized apprenticeship or training programs; Vacation and holiday pay may be considered as long as the employee would receive any unused amounts at termination of employment. NOTE: Payroll deductions required by law (e.g. social security, worker’s compensation, unemployment insurance, taxes, etc.) are not considered fringe benefits under Davis-Bacon law. The following are NOT considered bona fide fringe benefits: Travel time; Bonus payments; Use of company tools or equipment; Use of company vehicle; Uniforms or safety shoes Independent subcontractors and self-employed owners are considered to be subcontractors of the contractor and are subject to the same requirements as are all subcontractors. Independent subcontractors and self-employed owners must submit a Certified Payroll Report or be listed on another contractors’ weekly payroll. If the contractor or its subcontractors do not pay the proper hourly rate and fringe benefit on this project, the grantee shall withhold a necessary amount from the prime contractor until restitution is made. The prime contractor may be liable for liquidated damages if its workers or those of subcontractors on this project are not paid the proper hourly wage and benefit. The Grant Administrator, a representative from the U. S. Department of Labor, a representative of the U. S. Department of Housing and Urban Development and a representative of HCD shall be permitted to visit the job site and interview workers employed on this project. A Record of Employee Interviews must be maintained in the project file. A copy of the valid wage decision assigned to the project must also be posted at the job site. / Section 3 of the Housing and Urban Development Act of 1968 requires that recipients of certain HUD financial assistance, including CDBG, to the greatest extent possible, provide training, employment, contracting and other economic opportunities to low- and very low-income persons, especially recipients of government assistance for housing, and to businesses that provide economic opportunities to low- and very low-income persons. These opportunities are both gender and race neutral. Contractors must make every effort to recruit, target and direct economic opportunities to Section 3 Workers, Targeted Workers and Businesses. Section 3 applies to all projects that receive $200,000 or more in CDBG, or other HUD assistance, including projects that are financed in conjunction with state, local or private matching or leveraged funds, provided that the Section 3 monetary threshold requirements are met. For all construction activities, the contractor will be required to provide the following: Labor Hours: Total Labor Hours, Total Section 3 Worker Hours and Total Targeted Section 3 Worker Hours Employment and Job Training: New hires of Section 3 Workers and Targeted Workers Contracting for Construction: Total dollar amount of construction contracts and subcontracts with Section 3 Businesses The regulations should not be construed to mean that recipients are required to hire Section 3 Workers or award contracts to Section 3 Business Concerns other than what is needed to complete covered projects and activities. If the expenditure of funding for an otherwise covered project and activity does not result in new employment, contracting, or training opportunities, reporting is still required. Section 3 Worker Definition: A low or very low-income worker (the worker’s income for the previous or annualized calendar year is below the income limit established by HUD); or Employed by a Section 3 business concern; or A YouthBuild participant. Targeted Section 3 Worker Definition Employed by a Section 3 business concern or A low or very low-income worker, who currently meets or when hired met at least one of the following categories as documented within the past five years: Living within the service area or the neighborhood of the project, as defined in 24 CFR 75.5 A YouthBuild participant. Section 3 Business is a business concern that meets at least one of the qualifications listed in 24 CFR 75.5 within the last 6 months: At least 51 percent owned and controlled by low- or very low-income persons More than 75 percent of the labor hours performed for the business over the previous 3-month period are performed by Section 3 workers At least 51 percent owned and controlled by current residents of public housing or Section 8- assisted housing Compliance If Section 3 compliance is applicable to a project, contractors are required to make efforts to ensure that: Section 3 Workers make up at least 25% of the total project’s hours AND Targeted Section 3 Workers make up at least 5% of the total project’s hours by the time of project closeout. These participation levels are referred to as the “safe harbor” benchmarks. Contractors who anticipate that their project will not hit these “safe harbor” benchmarks need to show good faith efforts to comply with Section 3 by engaging in other activities. Examples of qualitative efforts are listed below: Outreach efforts to generate job applicants who are Other Funding Targeted Workers. Direct, on-the job training (including apprenticeships). Indirect training such as arranging for, contracting for, or paying tuition for, off-site training. Technical training such as arranging for, contracting for, or paying tuition for, off-site training. Outreach efforts to identify and secure bids from Section 3 business concerns. Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. Title VI of the Civil Rights Act of 1964 states that 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. Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, promotion and other employment practices on the basis of race, color, religion, sex, or national origin. Section 109 of the Housing and Urban Development Act of 1974 prohibits discrimination on the basis of race, color, national origin, disability, age, religion and sex within Community Development Block Grant programs or activities. Title III of the Americans with Disabilities Act prohibits discrimination based on “disability” by requiring that places of public accommodation be readily accessible to and useable by persons with disabilities. The Architectural Barriers Act of 1968 requires that a project meet at least the minimum requirements of accessibility. A Certificate of Accessibility must be provided to the Grantee with a copy to OCRA on or before the completion of the project. Section 504 of the Rehabilitation Act of 1974 states that a contractor or subcontractor may not discriminate against an otherwise qualified individual from participating in, or enjoying the benefits of this project as a result of a physical disability. Executive Order 11063 provides that no person on the basis of race, color, religion, sex, or national origin, shall be discriminated against in federal housing assistance, including lending assistance. Executive Order 11246 as amended by Executive Order 11375 provides that no person shall be discriminated against on the basis of race, color, religion, sex, or national origin in any phase of employment on federally assisted construction contracts. All contractors and subcontractors awarded a federal contract or subcontract in excess of $50,000.00 and having more that 50 employees must have an Affirmative Action Plan established in writing and on file in its place of business. Failure to have an Affirmative Action Program may result in sanctions established under section 209(a) of Executive Order 11246. This regulation is enforced by the Office of Federal Construction Contract Compliance, and additional information may be found at www.dol.gov/esa/OFCCP or at 1-800-397-6251. Other laws enforced by the U. S. Equal Employment Opportunity Commission (EEOC) may be found at www.eeoc.gof/policy/laws.html. The contractor must display the following posters on the project job site in a location assessable to all employees. Posters may be obtained from the Grant Administrator. Equal Employment Opportunity is The Law Fair Housing Poster Safety and Health Protection on the Job Notice to All Employees working on Federally Financed Construction Projects Employee Polygraph Protection Act A copy of the valid wage decision assigned to the project