REQUEST FOR PROPOSALS

Audit Services 20260511-1005 for Housing Authority of Covington’s Housing Choice Voucher Program

Due: Wednesday, June 3, 2026, at 2:00 p.m.

Housing Authority of Covington 2300 Madison Avenue Covington, KY 41014 Phone: 859-491-5311

Issue Date: Monday, May 11, 2026, at 12:00 p.m.

Steve Arlinghaus Executive Director

REQUEST FOR PROPOSALS

Audit Services for the Housing Choice Voucher Program

Table of Contents

I. INTRODUCTION

II. INVITATION TO SUBMIT PROPOSAL

III. SCOPE OF SERVICES

IV. BASIC REQUIRED COMPLIANCE

V. PROPOSAL SUBMISSION PROCEDURES AND REQUIREMENTS

VI. EVALUATION CRITERIA AND SELECTION PROCEDURES

Exhibits:

A. Instructions to Offerors (HUD 5369-B)

B. Certifications and Representation of Offerors (HUD 5369- C)

C. Table 5.1 Mandatory Contract Clauses for small purchases other than construction

D. General Conditions for Non-Construction Contracts (HUD 5370-C, Section I-with or without Maintenance Work

E. Certification Regarding Debarment & Suspension (HUD 2992)

F. Affirmative Action Policy

G. Non-Collusive Affidavit

H. Mandatory Contract Clauses for Capital Funds

I. Certification for a Drug Free Workplace (HUD 50070)

J. Certification of Payments to Influence Federal Transactions (HUD 50071)

K. Disclosure of Lobbying Activities (Standard Form LLL)

L. Section 3 Requirement

M. Fee Submission Form /Proposers’ Statement

I. INTRODUCTION

Established in 1937, the Housing Authority of Covington provides affordable housing opportunities for low and moderate-income persons and fosters family self-sufficiency. With funding provided by the U.S. Department of Housing and Urban Development (HUD), and dedicated employees, the Housing Authority of Covington manages approximately 500 rental housing units, which include public housing, low-income tax credits, project-based vouchers and market rate rentals scattered throughout the City of Covington.

The Housing Choice Voucher department has 6 employees who help economically vulnerable populations including elderly, disabled, veterans, and households with very low income afford decent, safe, and sanitary housing. It does this by using funds from HUD to pay part of an individual participant’s monthly rent and utility allowances directly to the landlord. Since the housing assistance is provided on behalf of the individual or family, the participants are able to find their own housing, including apartments, single family homes, and townhouses. It also administers the project-Based Assistance Program, which offers rental subsidies for one to three bedroom units at Academy Flats Senior Housing LP, Eastside Revitalization I, II and III, Dell Street Properties and Lincoln Grant Scholar House.

The Housing Authority is governed by a Board of Commissioners, consisting of five members. The chief executive officer of HAC, responsible for the organization's general operations, is the Executive Director. HAC must follow the laws, policies and regulations as set forth by the U.S. Federal Government, including the U.S. Department of Housing and Urban Development, HAC procurement policy and applicable State and local government regulations.

II. INVITATION TO SUBMIT PROPOSAL

The Housing Authority of Covington (HAC) is seeking sealed proposals to provide Audit Services from qualified, licensed Independent Public Accounting (IPA) firms for its Housing Choice Voucher Program (formerly Section 8). These audits ensure that HUD funding is utilized effectively, promoting efficiency in housing programs and preventing misuse of funds ensuring that low-income families receive the assistance they need.

The purpose of this solicitation is to enter into a 5-year firm fixed price contract for Housing Choice Voucher Audit Services. The initial contract will be for a period of 1-year with HAC’s sole discretion to extend the contract for an additional 4 additional 1-year terms for a maximum of 5 years or unless sooner terminated in accordance with the contract.

Additional services and/or adjustments may be added or deleted during the life of the contract as mutually agreed upon in writing by both parties.

Please note: HAC reserves the right to reject any and all of the proposals submitted.

III. SCOPE OF SERVICES

The Housing Authority of Covington’s Housing Choice Voucher Program (HCV) hereby invites qualified independent auditors, having sufficient governmental accounting and auditing experience in performing audits in accordance with the specifications outlined in this Request for Proposal (“RFP”), to submit a competitive Proposal to conduct an independent audit of HCV annual financial statements, internal control systems, and compliance with laws, regulations that have a direct and material effect on each of its major programs. To that end, services are expected to include, at a minimum, the following:

1. Independent Public Accounting (IPA) firm

a. Selected firm may perform an on-site or digital review of HAC’s records to determine the condition of the records, as well as to confirm the scope of the audit.

2. Annual Financial Audits and Federal Compliance

a. The audit must be conducted in accordance with Generally Accepted Auditing Standards (GAAS) which are the foundational standards for auditing private/public businesses. It applies to typical financial statement audits and is issued by the Auditing Standards Board of the American Institute of Certified Public Accountants.

b. The audit must be performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) known as Yellow Book, which are more stringent, expanded standards required for auditing government agencies and organizations receiving federal funds. It includes requirements for auditor independence, quality control, and testing of internal controls over financial reporting and is issued by the US Government Accountability Office with standards established by the Comptroller General of the United States.

c. It is expected that the audit services will be performed in accordance with Governmental Auditing Standards. The audit also must meet all requirements set forth in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), or any successor issuance, and/or any HUD Requirements, which are in effect as of the date of the audit fieldwork.

d. Ensure compliance with the Consolidated Audit Guide for Audits of HUD Programs issued by the Office of Inspector General.

e. Compliance with 24 CFR Part 5, Subpart H- Uniform Financial Reporting Standards, and other appliable HUD regulations

f. The audit must comply with Government Auditing Standards issued by GAO (Government Accountability Office), GASB 68 (Accounting & Financial Reporting for Pensions), GASB75 (Accounting and Financial Reporting for Post Employment Benefits other than Pensions (OPEB) like healthcare, dental, vision, etc.) and the standards for financial and compliance audits contained in the Standards for Audit of Government Organizations, Program, Activities, and Functions, issued by the U. S. General Accounting Office.

g. The Housing Choice Voucher audit shall be performed at the end of each fiscal year. The fiscal year runs from July 1st to June 30th.

3. HUD REAC Submissions and Audit Timeline

a. Per the Request for Proposal the auditor will be responsible for the data entry of the Financial Data Schedule (FDS) (both unaudited and audited) electronic submissions and attestation of the audited FDS in compliance with all HUD requirements for FYE 06/30/26, FYE 6/30/27, FYE 6/30/28, FYE 6/30/29 and FYE 6/30/30 for Housing Authority of Covington’s Housing Choice Voucher Program.

b. Previous experience is required in the auditor successfully submitting unaudited and audited FDS in accordance with dates set by the Housing and Urban Development Office.

c. The auditor will submit the unaudited FDS no later than sixty (75) days after the fiscal year end since reports must be submitted to HUD electronically to REAC for processing within 90 days of their year-end for further review and potential inquiry from the multi-family assessment center and on some occasions the DEC (Division Enforcement Center).

d. The auditor will submit the audited FDS no later than 8 1/2 months since they are required no later than 9 months after the fiscal year end.

e. Failure to comply with above, or failure to submit a complete audit within the time set by the contract will result in termination of the agreement to perform audits for subsequent years unless agreed upon by HAC.

f. Audit work papers shall be made available upon request by the Agency, HUD, or any other governmental agency having jurisdiction to such request (i.e., Office of Inspector General) and are to be made available to the requested party within 10 days of receipt of such request. All reports rendered to the Agency by the auditor are the exclusive property of the Agency and are subject to the Agency’s use and control, according to applicable laws and regulations.

g. The auditor shall retain work papers for a minimum of six (6) years after the date of issuance of the auditor’s report to the Agency.

4. Communication and Coordination

a. The audit senior or manager will provide the Director of Finance with timely reports during field work should any questions, concerns, potential findings, questioned costs, reportable conditions, weaknesses, or deficiencies be identified by the audit firm staff.

b. The auditor will keep confidential the Agency data and information, and such information will not be used for any purpose other than to perform the agreed-upon services.

c. The Housing Authority of Covington’s Director of Finance and/or Executive Director has responsibility for the oversight of the audit and coordination with the Board of Commissioners as necessary. The Director of Finance serves as the liaison with the auditors and has the responsibility for providing financial documents required by the auditors. Authority staff will assist the Auditors as much as possible with locating documents or transactions required for the audit.

5. Management Letter and Recommendations

a. The auditor will be responsible for preparing the Management Discussion and Analysis summarizing observations, findings, and recommendations for improving internal controls, compliance and overall financial operations.

b. The auditor will inform HAC about the nature of the proposed management letter comments or audit exceptions prior to the completion of the audit field work.

6. Reporting Requirements

a. Management’s Discussions and Analysis

b. Financial Statements

c. Auditor’s opinion on the financial statements and the required supplementary schedules

d. Report on compliance with requirements applicable to each “major program”.

e. Schedule of Expenditures of Federal awards and any applicable notes

f. Final Audit report

The auditor will perform a program compliance audit focusing on file sampling, compliance with HUD regulations and internal controls. Provide findings in current audit and corrective action plan or areas needing improvement if any.

a. Eligibility determinations

b. Voucher Management System VMS validation: income verification using Enterprise Income Verification (EIV)

c. Calculating Rent and Housing Assistance Payment (HAP) accuracy

d. Utility allowances

e. Housing Quality Standards (HQS) compliance

f. Waiting list management

g. Portability transactions

h. Fraud prevention and detection controls

7. Supplemental Information

a. The Housing Authority of Covington (HAC) (KY002) and the Covington CDA (KY133) programs received approval to consolidated under the Housing Authority of Covington on 7/1/2025 as a combined PHA. The Housing Choice Voucher Program is now managed by HAC per a letter from HUD dated May 28, 2025.

Prior to 7/1/2025 the Housing Choice Voucher Program (KY133) was managed by the City of Covington, Kentucky. The last Audit performed by the city was from 7/1/2023 to 6/30/2024 by Barnes Dennig and the audited paperwork has not been submitted to the FDS. The 7/1/2024 to 6/30/2025 audit is in progress and the unaudited and audited paperwork has not been submitted in the FDS.

Per the Request for Proposals the new audit period includes FYE June 30, 2026, 2027, 2028, 2029, and 2030.

b. The auditor will provide one original unbound, one (1) electronic and 10 bound copies of the audited financial statement and audit report.

c. Based on the 2025 financial summary provided below. Housing Choice Voucher’s approximate annual activity is:

· Annual Revenue: approximately $10.34 million comprised of $9,331,396 Restricted (HAP) Revenue and $1,007,433 Unrestricted (Administrative) Revenue.

· Annual Expenditures: approximately $8.95 million comprised of $8,373,565 Restricted (HAP) Expenses and $571,924 Unrestricted (Administrative) Expenses.

d. HAP Reserves as of March 31, 2026 are $1,282,078

e. The Agency’s financial records and tenant records are maintained on the YARDI software system.

f. Housing Choice Voucher (HCV) Program as of April 30, 2026. The department is currently authorized to assist up to 1265 families under its Annual Contribution Contract capacity, contingent upon availability of sufficient HUD funding. The agency currently manages 943 HCV vouchers comprised of 123 Project-Based Vouchers (PBV), 6 HOME Vouchers, 47 Veterans Affairs Supportive Housing Vouchers and 767 Tenant-Based Vouchers

g. Programs Housing Assistance Payment Grant Administration Grant Family Self Sufficiency Program

h. Project-Based Voucher Developments

Academy Flats Senior Housing LP

Eastside Revitalization I

Eastside Revitalization II

Eastside Revitalization III

Dell Street Properties Lincoln Grant Scholar House

IV. BASIC REQUIRED COMPLIANCE

1. Proposal Package- The Proposal Package is available starting at 12:00 p.m. on Monday, May 11, 2026. Communication of all Request for Proposal Documents, will use the BonfireHub website (Euna Solutions Brand), https://hacov.bonfirehub.com/portal for the following activities:

a. To post the RFP

b. To receive any questions or inquiries and to issue any associated addendums

c. To receive the Contractor’s Proposal

2. Questions- Questions concerning this proposal package will need to be submitted through Bonfire, the Housing Authority of Covington’s e-Procurement Portal, no later than 11:00 a.m. Wednesday, May 20, 2026. All questions and clarifications will be answered by addendum to prospective Offerors and will be visible in Bonfire. Include your email address with your query submission in case clarifications are needed.

To contact the Organization or ask questions in relation to this RFP, respondents must register with the Organization’s public purchasing portal at https://hacov.bonfirehub.com/portal and initiate the communication electronically through Vendor Discussions or Ask a Question feature. The Organization will not accept any respondent’s communications by any other means, except as specifically stated in this RFP.

3. Addenda- In the event there are questions or clarifications to the Proposal, the HAC will issue an addendum. Addenda will be available through Bonfire, the Housing Authority of Covington’s e-Procurement Portal. It is the responsibility of the prospective Offeror prior to the submittal deadline to ensure that all addenda issued by the HAC have been viewed.

4. All work shall be completed in strict accordance with the procurement policies of the HAC and HUD. All work is subject to, and shall comply with, all Federal, State, and Local Government requirements, regulations, codes, guidelines, standards, and policies.

5. Minority-owned and Women-owned Business Enterprises- While the Housing Authority of Covington must promote full and open competition among prospective offerors, HAC strongly encourages minority-owned businesses, women-owned businesses, socially and economically disadvantaged business enterprises, small businesses, Section 3 businesses, Service-Disabled Veteran enterprises to submit proposals as well as all other enterprises, to participate as partners, or to participate in other business activity in response to this Request for Proposals.

6. Section 3 Requirements- HAC is committed to the greatest extent feasible to the continued efforts for implementation of Section 3 of the Housing and Urban Development Act of 1968, Final Rule per 24 CFR Part 75 (thereinafter “Section 3”). The objective of Section 3 of the Act is to ensure that economic opportunities resulting from HUD financial assistance are directed at low and very low- income persons, particularly those receiving government assistance for housing. See “Exhibit L.”

7. Payment Requirements- Offerors should be aware that HAC will only make payments after the work being billed has been completed and no advanced payments will be made to the contractor. The contractor must have the capacity to meet all project expenses in advance of payments by HAC.

8. Invoicing:

a. Contractor shall not provide any parts, supplies or materials without a Purchase Order or a Contract. If Contractor provides parts, supplies or materials without a Purchase Order or Contract unless it is an emergency procurement, HAC shall not be required to pay Contractor for those materials.

b. Upon inspection and acceptance of all work, supplies and materials, the amount due shall be eligible for payment. HAC pays within 30 calendar days of receipt of invoice, based on the date a correct invoice is received by our Accounts Payable (AP) Department. No advance payments will be made to the Contractor unless agreed to by both parties and is typically only reserved for large or custom material orders. The Contractor must have the capacity to meet all expenses in advance of payments by HAC.

c. All Invoices must include the date the service was provided to HAC, development or address, and description of work. Invoices shall not be backdated; the date on the invoice shall match the date the invoice is submitted to HAC by way of EZCLOUD or the date the invoice is placed in the mail. Invoices which are not dated in accordance with this section will be rejected and the Contractor will need to submit a revised invoice to receive payment.

d. All invoices shall identify services rendered and shall be uploaded to hacov.app.excloud.co. The Contractor’s email address must be provided for invite to EZCLOUD. All statements and communications must be emailed to: Accountspayable@hacov.org

e. Contractor(s) shall pay all of its employees, including any and all approved Sub-Contractors, at least the legal minimum wages as determined by the United States Department of Labor and the United States Department of Housing and Urban Development and Department of Labor Prevailing Wage.

9. Approval of Sub-Contractors- The HAC retains the right of final approval of any sub-contractors utilized by the firm.

10. Documents Produced- All reports and other documents produced under contract to HAC must be submitted in both hard copy and a digital format that meets the HAC requirements, using Microsoft Office, Auto Cad or other approved format.

11. Funding Availability- By responding to this Request for Proposal, the Offeror acknowledges that for any contract signed as a result of this Proposal, the authority to proceed with the work is contingent upon the availability of funding.

12. Davis Bacon- Payment of not less than the minimum salaries comprised of wages and fringes as set forth in the wage determination sheet. (Not applicable here)

13. Rights Reserved- HAC reserves the right to waive as informality any irregularities in submissions, and/or reject any and all proposals.

14. Insurance- The Contractor shall carry Commercial or Comprehensive General Liability Insurance and other insurance as required by law, all minimum amounts as set forth below. The Contractor shall furnish the Owner certificates of insurance, and they shall state that a thirty-day notice of prior cancellation or change will be provided to the Owner.

Additionally, the Owner shall be an additional insured on all Commercial or Comprehensive General Liability policies.

This insurance shall be provided prior to contract award at the Contractor’s expense and shall be in full force and effect during the full term of the contract.

Worker’s Compensation: Coverage per Kentucky State Requirements.

General Public Liability Insurance:

$500,000 in respect to injury or wrongful death for any one person, to a limit of not less than $500,000 in respect to any one accident or incident and to the limit of not less than $500,000 in respect to damage to property

Vehicle Liability:

Professional Liability Insurance

15. Change Orders- All changes in the work, including any increase, decrease, or other equitable adjustment in the contract price or in the time for performing the contract, shall be authorized in writing by the Owner.

16. Only proposals meeting the following Basic Qualifications will be considered. Any proposal not meeting these criteria will be deemed non-responsive.

Compliance with the following is required: Davis-Bacon Act and other Federal Labor Standards Provisions; the Kentucky Prevailing Wage Law; Title VI and other applicable provisions of the Civil Rights Act of 1964; the Department of Labor Opportunity Clause (41CFR 40-1.4); Section 109 of the Housing and Community Development Act of 1974; Executive Order 11625 (Utilization of Minority Business Enterprise); Executive Order 12138 (Utilization of Female Business Enterprise), which requires the Housing Authority to maximize minority and female business participation in all program activities; and Section 504 of the Rehabilitation Act of 1973 and the Americans With Disabilities Act of 1990. Title VI of the Civil Rights Act of 1964 prohibits denial of benefits and discrimination under federally assisted programs on the basis of race, color, or national origin. Section 109 of the Community Development Act of 1974 prohibits discrimination in programs and activities.

See additional Mandatory Contract clauses in “Exhibit H.”

17. Licensing- Prior to award, but not as part of the proposal submission, the successful contractor will be required to provide the following documents:

Evidence that the key personnel that will be reviewing all work performed under the engagement are licensed as a certified public accountant.

A copy of the contractor’s business license allowing the entity to provide such services within the jurisdiction.

A copy of the contractor’s license issued by the State of record allowing the contractor to provide the services provided in the RFP.

V. PROPOSAL SUBMISSION PROCEDURES AND REQUIREMENTS

Proposals shall be submitted online on the Housing Authority of Covington’s e-Procurement Portal, which is currently found at http://hacov.bonfirehub.com/portal.

Your submission must be uploaded, submitted, and finalized prior to 2:00 p.m. on Wednesday, June 3, 2026. HAC strongly recommends that you give yourself sufficient time and at least ONE (1) day before Closing Time to begin the uploading process and to finalize your submission. A submission received after this time will be considered non-responsive.

This solicitation might be the first time to use our e-Procurement system so if there are any issues after following the procedures in IV. Basic Required Compliance, please contact the Housing Authority of Covington, Covington, Kentucky 41014 by email to procurements@hacov.org.

Microsoft Edge, Google Chrome, Safari, or Mozilla Firefox, Javascript and browser cookies must be enabled.

Respondents should contact Bonfire at Support@GoBonfire.com for technical questions related to submissions or visit Bonfire’s help forum at https://vendorsupport.gobonfire.com/hc/en-us.

Submission materials should be prepared in the file formats listed under Requested Information for this opportunity in the Bonfire Portal. The maximum upload file size is 1000 MB. Documents should not be embedded within uploaded files, as the embedded files will not be accessible or evaluated.

Contractors will have the ability to modify their submissions up to the Submission time in Bonfire.

Evaluation and selection of the Audit firm will be in accordance with the evaluation criteria specified in this Request for Proposal (RFP)

Unnecessarily elaborate brochures or other presentations beyond those sufficient to present a complete and effective response to this solicitation are not desired. Elaborate artwork, expensive paper and expensive visual and other presentation aids are neither necessary nor desired. Please respond to ALL questions in a brief and concise manner.

VI. EVALUATION CRITERIA AND SELECTION PROCEDURES

The Housing Authority of Covington intends to retain the successful Offeror pursuant to a “best value” basis, not a “lowest bid” basis, i.e., the HAC will consider other technical factors than just cost in making the award decision.

Each Proposal submitted in response to this RFP will be evaluated by a (3) three-member Evaluation Panel convened by HAC. The Panel will review and rank all proposals and Offerors submitting responsive proposals that comply with the submission requirements specified below.

One or more Offerors will then be selected by the Panel for interviews and negotiations as necessary. The Offeror(s) will submit a “best and final” proposal if needed from which the Panel will select one Offeror to be recommended by resolution to the Housing Authority’s Board of Commissioners for final award approval. The contract will go to the competent, responsive, and responsible Offeror in accordance with the evaluation criteria.

HAC reserves the right to request Additional Information or documentation from the company regarding its submission documents, personnel, financial viability, or other items in order to complete the selection process and later the contract process.

The Housing Authority reserves the right to sole and exclusive judgment in the determination of the qualifications of the Offerors. HAC reserves the right to waive as informality any irregularities in submissions. Further, the Housing Authority reserves the right to reject any or all proposals, or to accept or select any proposal as the Housing Authority in its sole and absolute discretion determines best meets its needs.

The Housing Authority will not be responsible or liable in any manner for costs incurred by Offerors in the preparation and submission of responses to this RFP. All information submitted to the Housing Authority by Offerors in response to the RFP becomes the property of the Authority regardless of award of the contract.

The Panel will evaluate proposals based upon the following criteria below:

PROVIDE ITEMS 1-7 AS LISTED IN SECTION VI of the EVALUATION CRITERIA AND SELECTION PROCEDURES and number the individual file with tabs or each of the 7 questions as individual files as such for ease of review. Please be brief & concise.

ALL QUESTIONS MUST BE ANSWERED TO BE CONSIDERED RESPONSIVE.

1. Audit Firm information. (Tab 1 - 10 points) If more than one company/firm list the following information below for both entities.

Minimum requirements below:

· Firm (s) name, business address, and telephone number.

· Type of Organization: Individual or Sole Proprietorship, Partnership, Professional Corporation/Association, Joint Venture, Corporation or Other and give details.

· Names of principals

· Number of years in business

· Total number of staff

· Federal ID number of the firm

· Firm’s license number with the State Board of Accountancy

· Copy of the most recent Peer Review.

· Historic information on firm including parent companies if applicable.

· Types of services offered by in-house staff. Offeror shall identify whether or not subcontractors will be used for this assignment.

2. Project specific staffing and qualifications. (Tab 2 - 10 points)

Minimum requirements below:

· Provide the name, title, phone number, and email address of the Respondent who will be the contact person for the RFP.

· A brief narrative description of the team for this assignment who have worked on audits of similar nature and their roles and responsibilities. Include experience with Public Housing Authorities, Housing Choice Voucher Programs, and HUD program regulations. Include resume, providing title, length of time with firm, previous employment, total years of experience, professional registrations, awards, etc.

· Indicate the office location(s) where most of the work will be performed.

3. Management Plan (Tab 3 - 15 Points)

Minimum requirements

· Provide a management plan and schedule for FYE 2026 audit that describes the firm’s audit approach, including consideration of laws and procedures, process for review, and quality control and assurance.

· List experience with implementing GAAP and GAGAS changes.

4. What sets your company(s) apart from your competition? (Tab 4 - 10 Points)

5. Current or former Professional references (Tab 5 - 10 points)

· Provide a list of five (5) references. The list must include the name, title, organization, address, and telephone number of the person most familiar with your work. Dates the services were provided.

· You must reference any previous work for HAC or other Public Housing Authorities. However, HAC should not be listed more than once as a reference.

· It is reasonable to assume that HAC will contact your references.

6. Submit the following Certifications (Tab 6 - 10 points)

1. Certifications Representations of Offerors, HUD 5369-C Form attached to RFP as “Exhibit B.”

2. Certification Regarding Debarment & Suspension (HUD 2992) Form Attached to RFP as “Exhibit E.”

3. Affirmative Action Policy - Form attached to RFP at “Exhibit F.”

4. Non-Collusive Affidavit - Form attached to RFP as “Exhibit G.”

5. Certification for a Drug Free Workplace (HUD 50070) - Form attached to RFP as “Exhibit I.”

6. Certification of Payments to Influence Federal Transactions (HUD 50071) - Form attached to RFP as “Exhibit J.”

7. Disclosure of Lobbying Activities (Standard Form LLL) - Form attached to RFP as “Exhibit K.”

8. Section 3 Business Self-Certification Form - Form attached to RFP as “Exhibit L.”

7. Pricing- (Tab 7 - 35 points)

· Fee Submission Form- All Forms attached to RFP as “Exhibit M"

EXHIBIT A

INSTRUCTIONS TO OFFERERS

(HUD 5369-B)

EXHIBIT B

CERTIFICATIONS AND REPRESENTATION OF OFFERORS

(HUD 5369-C)

CONTRACTOR TO FILL OUT FORM AND SIGN

EXHIBIT C

Table 5.1 Mandatory Contract Clauses for small purchases other than construction

EXHIBIT D

GENERAL CONDITIONS NON-CONSTRUCTION CONTRACTS

(HUD 5370- C, Section 1)

EXHIBIT E

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION

(HUD 2992)

EXHIBIT F

AFFIRMATIVE ACTION POLICY

ON COMPANY LETTERHEAD if you agree with the policy.

AFFIRMATIVE ACTION POLICY

___________________________ is an Equal Opportunity and Affirmative Action Employer.

The policy of _____________________________ is to assure all employment decisions made by this firm are in accordance with all applicable laws, rules and regulations, including, but not limited to, Executive Order 11246, Section 503 of the rehabilitation Act of 1973, as amended and the Vietnam Era Veterans’ Readjustment Act of 1974, as amended.

_______________________________ makes no employment decisions based on the race, color, religion, sex, or national origin of employment applications and employees.

In award of subcontract and material contracts, _______________________________ will utilize the Certified Disadvantaged Business Enterprise Directory available from the Kentucky Department for Local Government to identify and contact area MBE, WBE and DBE firms who may wish to be made aware of subcontract and material supply opportunities with our company.

The undersigned certifies these are the Equal Employment and Affirmative Action Policies of

Typed Name Typed Title

Signature Date

EXHIBIT G

NON COLLUSIVE AFFIDAVIT

CONTRACTOR TO FILL OUT FORMS AND SIGN

ON COMPANY LETTERHEAD

FORM OF NON-COLLUSIVE AFFIDAVIT

AFFIDAVIT

State of ____________________________________ County of __________________________________

__________________________________________, being first duly sworn, deposes and says:

That he/she is ____________________________ the party making the foregoing proposal or bid, that such proposal or bid is genuine and not collusive or sham; said bidder has not colluded, conspired, connived or agreed, directly or indirectly, with any bidder or person, to put in a bid or to refrain from bidding, and has not in any manner directly or indirectly, south by agreement or collusion, or communication or conference, with any person, to fix the bid price or affiant or of any other bidder, or to fix any overhead, profit or cost elements of said bid price, or of that of any other bidder, or to secure any advantage against the Housing Authority of Covington or any person interested in the proposed contract; and that all statements in said proposal or bid are true.

PLEASE PRINT OR TYPE NAME OF UNDERSIGNED

______________________________________________ (Seal)

By (signature):__________________________________

Title__________________________________________ (If a Corporation, President or Vice President should Sign. If a Partnership, a Partner should sign. If some other Officer signs, evidence of authority must be submitted)

Notary

Subscribed and sworn to before me this _________ day of _________________, 20 ______.

My commission expires ___________________________, 20 _________

EXHIBIT H

MANDATORY CONTRACT CLAUSES

Mandatory Contract Clauses – all purchases

In addition to other provisions required by HUD, pursuant to 2 CFR Part 200, Appendix II, “Contract Provisions for non-Federal Entity Contracts Under Federal Awards” all PHA contracts expending Capital Funds must contain provisions covering the following, as applicable copied from Appendix II to Part 200 (requirement referenced at 2 CFR 200.326).

A. Contracts for more than the simplified acquisition threshold currently set at $150,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, 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.

B. All contracts in excess of $10,000 must address termination for cause and for convenience by the PHA including the manner by which it will be affected and the basis for settlement.

C. Equal Employment Opportunity. Except as otherwise provided under 41 CFR Part 60, all contracts that meet the definition of ‘‘federally assisted construction contract’’ in 41 CFR Part 60–1.3 must include the equal opportunity clause provided under 41 CFR 60–1.4(b), in accordance with Executive Order 11246, ‘‘Equal Employment Opportunity’’ (30 FR 12319, 12935, 3 CFR Part, 1964–1965 Comp., p. 339), as amended by Executive Order 11375, ‘‘Amending Executive Order 11246 Relating to Equal Employment Opportunity,’’ and implementing regulations at 41 CFR part 60, ‘‘Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.’’

D. Davis-Bacon Act, as amended (40 U.S.C. 3141–3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by PHAs 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 (29 CFR Part 5, ‘‘Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction’’). 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. The PHA 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 PHA must report all suspected or reported violations and 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 (29 CFR 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 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 otherwise entitled. The PHA must report all suspected or reported violations to the Federal awarding agency.

E. Contract Work Hours and Safety Standards Act (40 U.S.C. 3701–3708). Where applicable, all contracts awarded by the PHA 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 (29 CFR Part 5). Under 40 U.S.C. 3702 of the Act, 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. 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 that 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.

F. Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of ‘‘funding agreement’’ under 37 CFR §401.2(a) and the recipient or subrecipient 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 recipient or subrecipient must comply with the requirements of 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 the awarding agency.

G. Clean Air Act (42 U.S.C. 7401–7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251–1387), as amended— Contracts and sub-grants 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 the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

H. Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

I. Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the government-wide Excluded Parties List System in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), ‘‘Debarment and Suspension.’’ The Excluded Parties List System in SAM 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.

J. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award of $100,000 or more must file the required certification. Each tier certifies to the 4/1/16 | 74 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. K. See § 200.322 Procurement of recovered materials.

EXHIBIT I

CERTIFICATION FOR A DRUG FREE WORKPLACE

(HUD 50070)

EXHIBIT J

CERTIFICATION OF PAYMENTS TO INFLUENCE TRANSACTIONS

(HUD 50071)

EXHIBIT K

DISCLOSURE OF LOBBYING ACTIVITIES (Standard Form LLL)

EXHIBIT L

SECTION 3 REQUIREMENTS

CONTRACTOR TO FILL OUT SECTION 3 BUSINESS

SELF- CERTIFICATION FORM AND SIGN

HOUSING AUTHORITY OF THE CITY OF COVINGTON 2300 MADISON AVENUE

COVINGTON, KY 41014

P: (859)-292-2130 procurements@hacov.org https://www.hacov.org/

HOUSING AUTHORITY OF COVINGTON

better futures

SECTION 3 POLICY, PROCEDURES AND COMPLIANCE FORMS WITH INSTRUCTIONS

This packet is designed to comply with the New HUD Section 3 Final Rule issued September 29, 2020, and became effective November 30, 2020. Therefore, these documents and instructions are related to the "Hours Worked Benchmarks" as called for in the 24 CFR Part 75 regulation. Every contractor and sub-contractor (with the exception of professional services) are required to work toward meeting the prescribed benchmarks as indicated on the bottom of page 6 of this packet. There are no specific hiring or contracting goals under this new rule.

Most importantly, the rule does not require the hiring or contracting of any person or business that is not fully qualified to perform the work as would be charged. However, the rule makes clear that HUD is intent on ensuring Section 3 persons employed under the new rule receive measurable and sustainable employment. Therefore, Section 3 employees can be counted for up to five full years from the date of certification or hire respectively. HUD is expected to issue continued guidance on the new rule in the future so these documents may change in accordance with the rule.

If you should have any questions on this packet, please contact:

Procurement Officer procurements@hacov.org

SECTION 3 REQUIREMENTS

Applicable to all contracts and agreements regardless of the dollar amount or contract duration

Background - Section 3 of the Housing and Urban Development Act of 1968 (Public Law 90-448, approved August 1, 1968) (Section 3) was enacted to bring economic opportunities generated by certain HUD financial assistance expenditures, to the greatest extent feasible, to low- and very low-income persons residing in communities where the financial assistance is expended. Section 3 recognizes that HUD funds are often one of the largest sources of Federal funds expended in low- and very low-income communities and, where such funds are spent on activities such as construction and rehabilitation of housing and other public facilities, the expenditure results in economic opportunities. By directing HUD-funded economic opportunities to residents and businesses in the community where the funds are expended, the expenditure can have the dual benefit of creating new or rehabilitated housing and other facilities while providing opportunities for employment and training for the residents of these communities.

The Section 3 statute establishes priorities for employment and contracting for public housing programs and for other programs that provide housing and community development assistance. For example, the prioritization as it relates to public housing assistance places an emphasis on public housing residents, in contrast to the prioritization as it relates to housing and community development assistance, which places more emphasis on residents of the neighborhood or service area in which the investment is being made.

Housing Authority of the City of Covington Internal Hiring Procedure

For all positions at the authority, the human resources staff will include the Section 3 Individual Low-Income Person Self Certification form with the applications (virtually and paper) allowing each applicant to identify themselves accordingly. The completion of the form will remain voluntary and at the applicants discretion.

Once all applications have been received and reviewed, the most desirous and qualified candidate will be progressed through the hiring process. The Section 3 status of the applicant will be considered only after the "Most Qualified" candidate has been determined.

If there are multiple and equally qualified persons, the Section 3 status and category of the applicant will be considered. The candidate with the highest Section 3 priority based on the 24CFR Part 75.9(a)(2) will be offered the position.

All advertisements for positions with the authority will carry this wording: "This opportunity is covered under Section 3 of the HUD Act of 1968"

Housing Authority of the City of Covington Contracting Procedure

For all advertised contracts let by the authority, the responsible staff will include the Section 3 Business Self Certification form and the Section 3 Individual Low-Income Self Certification form with the bid package (virtually and paper) allowing each respondent to identify themselves and their business accordingly. The completion of the forms will remain voluntary and at the respondents discretion.

Once all responses have been received and reviewed, the most desirous and qualified business will be progressed through the contracting process. The Section 3 status of the respondent will be considered only after the "Most Qualified and Advantageous" respondent has been determined.

If there are multiple and equally qualified businesses, the Section 3 status and category of the business will be considered. The business with the highest Section 3 priority, based on the 24CFR Part 75.9 (6)(2) will be awarded the contract. All other applicable procurement laws will be adhered to relative to contracting amounts. All advertisements for contracts with the authority will carry this wording: "This opportunity is covered under Section 3 of the HUD Act of 1968"

Housing Authority of the City of Covington Internal Resident Training Procedure

For all resident training offered by the authority and its contractors, the staff will include the Section 3 Individual Low-Income Person Self Certification form with the training notice or upon the first day of training (virtually and paper) allowing each prospective trainee to identify themselves accordingly. The completion of the form will NOT be voluntary as the prospective trainees will be allowed to attend based on their prioritization in the 24CFR Part 75.9(a)(2).

If the training is being paid for with HUD Public Housing financial assistance, the training will be limited to authority residents and voucher holders only. If the training include non-federalized dollars, an equal number of non-assisted persons will be allowed meeting the non-federalized dollars percentage.

All advertisements for training with the authority will carry this wording: "This opportunity is covered under Section 3 of the HUD Act of 1968"

§ 75.3 Applicability.

(a) General applicability. Section 3 applies to public housing financial assistance and Section 3 projects, as follows:

(1) Public housing financial assistance. Public housing financial assistance means:

(i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 (the 1937 Act);

(ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act;

(iii) Development, modernization, and management assistance provided pursuant to section 9(d) of the 1937 Act; and

(iv) The entirety of a mixed-finance development project as described in 24 CFR 905.604, regardless of whether the project is fully or partially assisted with public housing financial assistance as defined in paragraphs (a)(1)(i) through (iii) of this section.

(2) NOT APPLICABLE - Section 3 projects. (i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 or 1701z-2), the Lead Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing.

(iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance.

(b) Contracts for materials. Section 3 requirements do not apply to material supply contracts.

§ 75.5 Definitions.

The terms HUD, Public housing, and Public Housing Agency (PHA), are defined in 24 CFR part 5. They also apply to this part: 1937 Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq. Contractor means any entity entering into a contract with:

(1) A recipient to perform work in connection with the expenditure of public housing financial assistance…