NEC-NSHC IP Scope of Work

Attachment No. 3

101004.1

NORTON SOUND REGIONAL HOSPITAL REPLACEMENT PROJECT

PROPOSAL FOR

INDIAN PREFERENCE REFERRAL, TRAINING and MONITORING SERVICES

By

Norton Sound Health Corporation and Nome Eskimo Community 15 May 2009

Background and Goals

The Indian Health Service issued Solicitation No. 09-102-SOL-00003 for construction of the New Norton Sound Regional Hospital in Nome, Alaska on 3 April 2009. IHS expects to award a contract in July 2009 using funds provided by the American Recovery and Reinvestment Act (ARRA) of 2009. The value of the contract is estimated to be $75M - $100M. Construction will start in the fall of 2009 and be complete in the fall of 2012.

Norton Sound Health Corporation (NSHC) is the tribal non-profit health corporation for the Bering Straits region. In July 2008 the NSHC Board of Directors passed a resolution requesting the Indian Health Services (IHS) to carry out the construction component of the construction phase. The resolution also contained goals related to, a) NSHC undertaking selected parts of the construction phase, b) NSHC playing a vital and active role in the construction phase, and c) promoting regional and Alaskan Native preference in hiring to the greatest extent possible. The resolution authorized the NSHC President/CEO to negotiate the appropriate project contracts and agreements with IHS.

The referenced IHS Solicitation includes Indian Preference (IP) requirements related to employment opportunities, subcontracting, training, reporting, and monitoring as outlined in contract clauses HHSAR 352.270-2 (Indian Preference) and 352-270-3 (Indian Preference Program). The Solicitation also identifies Nome Eskimo Community as the Native Corporation Representative that will provide assistance and information to the Contractor in fulfilling the Indian Preference requirements of the contract.

Nome Eskimo Community (NEC) was formed in 1939 and organized under the Indian Reorganization Act of 1934, and is empowered by its membership to address the health, education, economic and social welfare of its tribal membership. NEC is a federally recognized tribal government with Self-Governance Compacting status with the United States of America, Secretary of the Interior, pursuant to Title IV of Public Law 93-638.

NEC is governed by a 7 member Tribal Council elected by the tribal membership. The NEC Tribal Council has authority delegated by membership to manage the implementation of policy.

Proposal for IP Referral & Monitoring Services – Norton Sound Regional Hospital Replacement Project

In addition to the specific IP requirements in the IHS Solicitation, Section 1.6 of the Updated Implementing Guidance for the American Recovery and Reinvestment Act of 2009 provides what an agency should consider in determining how best to use Recovery Act funds in order to achieve the Act's objectives. That section states that “all Federal agencies should take the following considerations into account, to the extent permitted by law and practicable, when determining how best to use Recovery Act funds for achieving the Act's objectives.” The guidance is significant for this project in the areas of ensuring long-term economic benefits, engagement of a large community-based organization (NEC and others), and the promotion of local hire as noted here:

Ensuring long-term public benefits, optimization of economic and programmatic results. In accordance with the President’s Memorandum of March 20, 2009 on “Ensuring Responsible Spending of Recovery Act Funds,” departments and agencies “shall develop transparent, merit-based selection criteria that will guide their available discretion in committing, obligating, or expending funds under the Recovery Act for grants and other forms of Federal financial assistance. Such criteria shall be consistent with legal requirements, may be tailored to the particular funding activity, and shall be formulated to ensure that the funding furthers the job creation, economic recovery, and other purposes of the Recovery Act.”

Engaging with community-based organizations: Agencies should seek to support projects that make effective use of community-based organizations in connecting dis-advantaged people with economic opportunities.

Promoting local hiring: Departments and agencies should seek to maximize the economic benefits of a Recovery Act-funded investment in a particular community by supporting projects that seek to ensure that the people who live in the local community get the job opportunities that accompany the investment.

NSHC and NEC support the IP requirements in the Solicitation, and the goals outlined in the ARRA Implementing Guidance document. In particular, NEC’s organizational mission, vision, and goals are consistent with all of the above requirements and goals (reference Attachment A). Further, NSHC wants to ensure that local individuals receive specific training and employment experience during construction of the hospital so NSHC can target these individuals for positions in the Hospital Maintenance Department once the facility is complete. The skills of particular interest to NSHC in this regard are plumbers and wiremen / electricians.

Basis of Proposal, Funding and Agreements

In honoring the spirit and intent of the American Recovery and Reinvestment Act of 2009 passed by the Congress of the United States of America and signed by President Obama, Norton Sound Health Corporation as the tribal health corporation for the Bering Straits Region, and Nome Eskimo Community as the local tribal government and the designated Native Corporation Representative for the Project, will enter into a Cooperative Agreement to assist in the implementation of the project requirements and goals outlined above, with special emphasis on initiatives and monitoring related to training and employment opportunities for members of the NEC Tribe, Bering Straits Region Tribes, and other Alaska Native/American Indians, during construction of the new Norton Sound Regional Hospital, in full respect to the Federal Laws established for exactly this purpose.

Accordingly, NSHC is submitting this proposal pursuant to Title V of the Indian Self- Determination and Education Assistance Act, 25 U.S.C. 450 et seq., and the Self Governance Federal Regulations at 42 CFR Part 137, Subpart N. It is understood and agreed that the services outlined in this proposal will be paid for with non-ARRA project funds.

The subject services will be included via a modification to the existing cost reimbursement T-V Agreement between IHS and NSHC, or a new IHS / NSHC T-V Agreement. The subject services shall also be described in an amendment to Solicitation No. 09-102-SOL-00003 for the project.

The Agreement between NSHC and NEC will be a cost reimbursement agreement. The NEC administrative overhead rate applied to NEC direct costs will be limited to 15%, vs.

the established NEC indirect rate of 81.44%, consistent with overhead caps on several existing federal grants (e.g., DHUD) administered by NEC. Labor and fringe benefit rates for the two FTE’s funded via this project will be consistent with rates paid by NEC for other existing programs. Similarly, the office space lease rate (which includes all utilities) will be consistent with rates being paid under existing federal grants administered by NEC.

Scope of Work

Under the direction of NSHC, NEC will provide the following IP related services during the construction phase of the project.

1. Employment Screening

2. Employment Referrals

3. Monitoring of General and Subcontractors’ Employment Statistics

4. Monitoring of General and Subcontractors’ Training Statistics

5. Subcontractor Referrals

6. Monitoring of General Contractor’s Subcontracting Statistics

Period of Performance

May 2009 – October 2012

Work Plan

Under this work plan, all references to the functions and responsibilities of NEC will be under the supervision and at the direction of NSHC. In particular, NSHC will coordinate/facilitate work plan issues with IHS, and review NEC reports prepared for the IHS Contracting Officer. NEC will be responsible for the day to day activities required to perform the scope of work outlined above. They will staff this effort with two FTE’s:

an Employment and Training Officer and an Employment and Training Specialist.

Copies of the position descriptions for these staff will be provided to IHS. The NEC Project Officer and Specialist will work out of the existing NEC Nome based office located at 200 W. 5th Ave.. Specific procedures for each scope of work element are outlined below.

1. Employment Screening

a. Through the Alaska Department of Labor, Kawerak, Inc., other local Tribal and Municipal organizations, Alaska Native Coalition for Employment and Training, regional media outlets, and trade unions as appropriate, NEC will advertise project employment opportunities and identify potential IP candidates.

Candidates will be assessed and categorized based on trade, current skill level (entry, apprentice, journeyman), and training needs/desires.

b. NEC will establish a database (IP Database or “the Database”) that tracks the IP workforce for the project.

c. NEC will conduct a background check and initial drug test on all candidates requesting to be entered into the IP Database. In collaboration with the General Contractor for the project, NEC will establish specific background / drug criteria that must be met before a candidate may be placed in the database.

d. All candidates who pass the background check and initial drug test will be placed in the Database. Once an individual is in the Database their status will be changed from candidate to IP Worker.

e. NEC will collect certification documents and interview all IP Workers to determine if the individual needs initial and/or additional pre-employment training.

2. Employment Referrals

1. The NEC Training and Employment Specialist will coordinate with the General Contractor’s Liaison Officer appointed in accordance with HHSAR 352.270-3 to determine and track employment opportunities during the project. Formal coordination meetings will be held monthly. Other ad hoc meetings and discussions will be held as appropriate. NEC will refer qualified apprentice and journeyman IP Workers to the General Contractor and Subcontractors.

2. NEC will also coordinate with the General Contractor and Subcontractors to identify Workers who may be suitable for employment but require pre-employment and/or on-the-job training. If training is indicated, NEC and the contractor will jointly develop a training plan to be managed by the contractor.

3. All referrals will be by formal letters of introduction.

4. All IP workers referred by NEC and employed by the Contractor or Subcontractor must pass a final pre-employment drug test to be arranged for and paid by NEC.

3. Monitoring of General and Subcontractors’ Employment Statistics

The NEC Training and Employment Officer will review the quarterly IP employment reports submitted by the General Contractor as required in HHSAR 352.270-3. NEC will in turn, submit a quarterly report to IHS and NSHC regarding the status of their employment referral program, and the performance of the General Contractor and all Subcontractors with respect to IP hire.

4. Monitoring of General and Subcontractors’ Training Statistics

NEC will review the quarterly IP training reports submitted by the General Contractor as required in HHSAR 352.270-3. NEC will in turn, submit a quarterly report to IHS and NSHC regarding the performance of the General Contractor and all Subcontractors with respect to pre-employment and on-the-job IP training.

Reports shall include specific information on classroom, independent, on-the-job, and apprentice training.

5. Subcontractor Referrals

NEC will coordinate and collaborate with the General Contractor’s Liaison Officer appointed in accordance with HHSAR 352.270-3 in the development of an IP Subcontracting Program as required in HHSAR 352.270-3. In particular, NEC shall:

a. Assist in identifying IP subcontracting opportunities during the project.

b. Assist in establishing IP preference qualification and price criteria related to subcontracting.

c. Establish a list of Indian Organizations and Indian-owned economic enterprises that may be qualified to perform subcontract work on the Project, using resources and tools such as the Nome Community Resource Guide, Nome Online Internet Community Announcement Service, NEC Website, Nome Native Owned Organization and Business Listing, and Alaska Native Business & Resource Directory.

d. Track subcontracting advertisements issued by the General Contractor and refer qualified IP Subcontractors to the General Contractor by formal letters of introduction.

6. Monitoring of General Contractor’s Subcontracting Statistics

NEC will review the quarterly IP subcontracting reports submitted by the General Contractor as required in HHSAR 352.270-3. NEC will in turn, submit a quarterly report to IHS and NSHC regarding the status of their IP subcontractor referral program, and the performance of the General Contractor with respect to IP subcontracting.

In accomplishing these scope of work elements, NEC staff shall also perform the following tasks:

a. Attend meetings, at the invitation of the Contracting Officer or General Contractor to advise on IP matters.

b. Provide coordination between the General Contractor and subcontractors, and Indian entities, such as Indian business enterprises, labor organizations, and Alaska Native Groups (TERO’s, Tribal councils, regional corporations, etc.).

c. Examine documentation submitted by the General Contractor related to compliance with IP requirements (for example, justification for selecting a non- Indian employee or subcontractor or response to a previous notice of noncompliance). NEC shall advise the Contracting Officer either to accept or reject the documentation.

d. Investigate instances of alleged noncompliance by the General Contractor or its subcontractors with the IP requirements of the contract. NEC shall promptly notify the IP Liaison designated under the Construction Contract of each allegation of noncompliance and provide a reasonable opportunity for response.

If the response is unsatisfactory, the matter shall be referred to the Contracting Officer.

e. Recommendation for adverse action against the General Contractor under paragraphs c. or d. above shall be based on factual data and be supported by a sustainable interpretation of the Construction Contract or applicable law. Each recommendation shall be accompanied by a draft notification to the General Contractor for signature by the Contracting Officer which delineates the problem area and states the necessary corrective action. The Contracting Office shall notify NEC of the disposition of each recommendation. NEC shall maintain a file of all documents related to each adverse recommendation.

f. Submit all required reports to the Contracting Officer by the tenth day of the month following each calendar quarter (i.e., 10 April, 10 July, 10 October, 10 January). Reports will contain information for each of the six main sections of the Workplan outlined above. In addition, each report will describe the current status of each unresolved case of alleged noncompliance, and a summary rating of the overall performance of the General Contractor under the IP requirements of the Construction Contract, according to the following standards:

• Unsatisfactory: Minimum requirements not substantially met (provide details)

• Satisfactory: Technical compliance with minimal requirements

• Outstanding: Demonstrated active support of the intent of the IP program

Limitations

NSHC and NEC acknowledge that they are not authorized to direct action by the General Contractor or any of its subcontractors with respect to IP issues. NSHC and NEC will take only those actions reasonably necessary to meet its obligations as stated herein and will not disrupt the orderly conduct of business under the Construction Contract. NSHC and NEC also acknowledge that the decision of the Contracting Officer in cases of alleged noncompliance with IP requirements will be final and not subject to appeal by NSHC or NEC.

Assurances

1. NSHC and NEC will ensure quality internal controls to maintain fiscal responsibility and accountability.

2. NEC will implement and maintain a zero tolerance policy for alcohol and substance abuse.

3. NEC will abide by NSHC, IHS and ARRA administrative and reporting requirements as required.

4. NEC will avoid conflicts of interest between NEC staff and any worker or subcontractor referred to the General Contractor.

Submitted this 14th day of May 2009

Norton Sound Health Corporation Nome Eskimo Community

By: ____________________ By: ____________________

Attachment A

Nome Eskimo Community Strategic Plan 2009-2013

MISSION STATEMENT: Nome Eskimo Community is a federally recognized tribal government improving the quality of life of those we serve.

VISION STATEMENT: Nome Eskimo Community will be a proud, active, functional, and leading tribal government that provides a broad spectrum of services that benefit the community.

Goal #1: Strengthening Nome Eskimo Community’s capacity and governance to sustain and grow our Tribal organization for maintaining successful self-governance.

� Objective 1 – Develop Tribal Governance

♦ Transform Nome Eskimo Community into a proactive, modern, transparent, and efficient government by implementing new ordinances, policies, and systematic training for tribal leadership.

� Objective 2 – Develop Services

♦ Expand tribal housing, economic development, and program services with the acquisition of new properties and facilities.

Goal #2: Creating economic opportunities and strengthening program services that will enhance the quality of life and install pride, self-confidence, and sense of personal well-being.

� Objective 1 – Develop Community Health and Wellness Services.

♦ Create a community based, regional in-patient services program to address substance abuse, homelessness, and legal issues to promote a healthy Native community.

� Objective 2 – Expand Family Services

♦ Promote healthy families by addressing local issues developing and coordinating community partnerships and services to expand Family Services.

� Objective 3 – Promote Youth Development and Education.

♦ Promote the incorporation of Native knowledge, culture, and language into regional pre-K to PhD education systems to increase youth development and education.

� Objective 4 – Develop Community Housing and Infrastructure

♦ Develop and expand existing housing services to all tribal members to increase the number of safe, affordable, and energy efficient housing units.

� Objective 5 – Promote Employment and Training

♦ Create a coordinated services system to promote, track and assess educational, employment and training opportunities for tribal membership.

� Objective 6 – Promote a Healthy Environment

♦ Promote a healthy regional environment with community entities to increase community sustainability and reduce our dependency on fossil fuels.

Goal #3: Promote an organization that incorporates our cultural values to maintain and strengthen our identity as a tribe.

� Objective 1 – Promote community cohesiveness within the tribal membership

♦ Increase tribal membership knowledge, participation, and communication within the community to promote interaction, involvement, and pride.

� Objective 2 – Promotion and integration of NEC’s Cultures.

♦ Identify the tribes’ historical, educational, and language resources to promote and incorporate our culture into our community.

NEC 2009-2013 Strategic Plan Priority List

1. Address high housing energy/fuel costs.

2. Research and/or collaborate to develop alternative energy resources.

3. Help with renewable energy for office buildings and homes.

4. Provide housing opportunities to all members.

5. Research and/or collaborate to provide a homeless shelter.

6. Research and/or collaborate to provide an inpatient substance abuse treatment center.

7. Acquire a new tribal office building / hall / tribal court.

8. Research feasibility to provide internship opportunities.