Attachment 05 HUD Contract_Addendum.pdf

1 | P a g e NDR Service Contract Addendum 10/2018

State of California Department of Housing and Community Development Required Bid and Contract Language for Funding Provided under Agreement

16-NDR-11694

(For Service Contracts Only)

Updated: October 8, 2018

The following provisions are hereby incorporated into every bid document, contract, subcontract, or agreement, regardless of how titled, between the United States Forest Service (“USFS”) and any contractor or subcontractor in connection with the provision of services for the Forest and Watershed Health Program (“FWHP”) described in that certain Cooperative Endeavor Agreement (“CEA”), 16-NDR-11694, dated September 26, 2017 between the California Department of Housing and Community Development (“HCD”) and the USFS. The CEA governs the use of funding provided to HCD by the Department of Housing and Urban Development (“HUD”) under their Community Development Block Grant (“CDBG”) National Disaster Resilience (“NDR”) funding award to HCD.

1. Compliance with Laws and Regulations

Contractors who contract with the USFS shall comply with all policies, guidelines, processes, procedures, rules, and requirements of the Federal Acquisition Regulation, 48 CFR Chapter 1, et seq. (“FAR”), as the same may be amended from time to time, as well as all federal, state, and local laws, rules, regulations, ordinances, and guidelines that govern or are otherwise applicable to the FWHP activities described in the CEA.

2. Anti-Lobbying Certification

All contractors and subcontractors are required to make an anti-lobbying certification and to disclose their lobbying efforts. Accordingly, by executing this agreement, the undersigned hereby certifies, to the best of his or her knowledge and belief, that:

A. No federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.

B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, and officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.

C. The undersigned shall require that the language of this certification be included in the award documents of all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

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This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

3. Contractors and Subcontractors

A. Contractors or subcontractors shall at all times during the term hereof:

1) Possess and maintain, at its own expense, during the term of this

Agreement, all necessary licenses, permits, and authorizations required for the work or service being performed hereunder, and provide satisfactory proof of the same to USFS prior to the commencement of any work;

2) Maintain, during the term of this Agreement, at least the minimum State-required Workers' Compensation Insurance covering all employees performing FWHP activities hereunder, and provide satisfactory proof of the same to USFS prior to the commencement of any work; and

3) Perform all FWHP activities in accordance with all applicable federal, state, and local laws, rules, regulations, ordinances, guidelines and building codes, as the same may be amended from time to time.

4. Access to Records

Contractors and subcontractors shall, at all times during the term of this agreement, provide to HCD, HUD, the State, the Comptroller General of the United States, the California State Auditor, and/or any of their duly authorized representatives, access to any books, documents, papers, and records for the purpose of making audits, examinations, excerpts, and transcriptions pursuant to 2 CFR Part 200.336 or other applicable law.

Contractor acknowledges that the USFS will be retaining all financial records, supporting documents, statistical records, and all other records pertinent to FWHP activity implementation and NDR compliance under this agreement for a period of five (5) years after HCD closeout of the CEA.

5. Energy Policy and Conservation Act

This agreement is subject to 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 (Pub. L. 94 163, 89 Stat. 871).

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6. Procurement of Recovered Materials

Contractors and subcontractors must comply with section 6002 of the Solid Waste Disposal Act (42 U.S.C. 6901, et seq.), as amended by the Resource Conservation and Recovery Act (42 U.S.C. 6962, et seq.) by procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

7. Debarment

HUD funds may not be used to directly or indirectly employ, award contracts to, or otherwise engage the services of any contractor or subcontractor during any period of debarment, suspension or placement of ineligibility status. Prior to entering into any contract, all contractors, subcontractors, and lower tier contractors will be verified against the Federal publication that lists debarred, suspended, and ineligible contractors.

Executive Order 12549, “Debarment and Suspension,” (2 CFR Part 180) provides that awards cannot be made to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs.

8. Section 3 Requirements: Procurement for Contracts and Subcontracts at or above $100,000

A. The service work to be performed under this procurement is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C 170lu (“Section 3”). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall be, to the greatest extent feasible, directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

B. Parties receiving CDBG-NDR funds shall be required as part of their contract with the USFS to comply with HUD’s regulations in 24 CFR Part 135 (“Part 135”), which implement Section 3. By signing this agreement, contractor or subcontractor certifies that they are under no contractual or other impediment that would prevent them from complying with Part 135.

C. Contractors and subcontractors shall send to each labor organization or representative of workers with which the contractor or subcontractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the commitments under this Section 3 provision, and must post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice.

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The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions, and the anticipated date the work shall begin.

D. Contractors shall include this Section 3 provision in every subcontract to ensure compliance with Part 135, and agree to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 provision, upon a finding that the subcontractor is in violation of the Part 135 regulations. Contractor shall not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the Part 135 regulations.

E. Contractor shall certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the Part 135 regulations require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under Part 135.

F. Noncompliance with Part 135 regulations may result in sanctions, termination of any contractual agreements for default, and debarment or suspension from future HUD-assisted contracts.

G. Contractor is responsible for completing all reporting regarding Section 3 new hires and Section 3 Businesses. A sample Section 3 new hire chart and eligibility form is provided.

Documentation of Section 3 outreach efforts shall also be required if new hires are required.

New hire eligibility forms must be collected as hiring takes place.

H. Section 3 Businesses must complete the Section 3 Business Eligibility Form, if applicable.

A “Section 3 Business” is defined as:

• A business which is 51% owned by Section 3 residents; or

• A business in which 30% of its permanent employees are or were Section 3 residents; or

• A business which makes a commitment to subcontract in excess of 25% of the dollar award to a Section 3 business.

Section 3 Numerical Goals/Targets:

A. The target for New Hires & Training Opportunities is 30% of the aggregate number of new hires.

B. The target for construction contracts with Section 3 Business Concerns is 10% of the total dollar amount. The goal is 3% of the total dollar amount of all other Section 3 covered contracts.