CDBG

Contractor

Training SEPTEMBER 16, 2015

Kimberly Roberts, Ph.D. Managing Director

Eryca Fambro, MBA Deputy Director

121 Haynes Street, Marietta GA 30060 Ph: 770-528-1455; Fax: 770-528-1466

Contractor Requirements

Contractors participating in federally

funded projects are required to comply with

the following standards:

Davis Bacon

U.S. System Award Management

(SAM.gov)

Section 3

E-Verify

Insurance & Licenses

2

Davis-Bacon Act

A federal regulation that applies to any and all

construction work to be paid using HOME or CDBG

funds.

Requires contractors to pay prevailing wage rates

to all laborers and mechanics on federally-funded

construction projects in excess of $2,000.00.

Applicability:

HOME – 12 or more assisted units

CDBG – 8 or more units in the entire project

3

Davis-Bacon Act

Davis Bacon Wages must be paid to any laborer or

mechanic:

– Defined as anyone who is performing

construction work on the project, such as

carpenters, plumbers, sheet metal workers,

apprentices, and trainees.

– Foremen that spend more than 20% of their time

performing construction work and not excluded

(next slide), are covered under DB rules. (only for

time spent on construction work)

4

Davis-Bacon Act

Exclusions to DB wages include administrative ,

executive, or clerical workers. Examples are

superintendents, timekeepers, messengers, etc.

Apprentices and Trainees are the only workers who

can be paid less than the prevailing wage rate for

their classification.

They must be part of a registered program

approved by DOL or a DOL recognized State

Apprenticeship Agency (SAC) and are paid in

accordance with wage schedule set by approved

program.

5

Davis-Bacon Act

During Construction Phase

Prime/General Contractor (GC) is responsible for full

compliance regarding Davis Bacon.

– Related to contractor, subcontractors, and

lower-tier subcontractors

GC must ensure that posters/notices and wage rate

is compliant at all times while work is being

performed on job site.

6

Davis-Bacon Act General Contractor and Subcontractors are required to:

Submit WEEKLY certified payroll reports beginning with the first week that your company works on a project and every week afterward until your firm has completed its work.

Good idea to number these by week for sufficient tracking

Payrolls managed/handled by CDBG Program Office

If work is not continuous, you can submit “No Work” payrolls.

7

Davis-Bacon Act

Certified Payroll Forms for Reporting

DOL’s WH-347 payroll form recommended but

not required

You may use other forms such as electronic

formats as long as all required information is

present.

Weekly payrolls must be certified, meaning each

payroll is signed and contains language

certifying that information is true and correct

8

Davis-Bacon Act

GC should review their own payroll and each

subcontractors payroll reports for compliance prior

to submitting them to the CDBG Program Office.

GC is responsible for full compliance and ensuring

all payrolls are accurate and correct.

GC will be held accountable for any violations.

9

Davis-Bacon Act

Employees must be paid based on computed

hourly earnings

Fringe Benefits

Health Insurance premiums, retirement, life

insurance, vacation, and other paid leave.

Overtime

10

Davis-Bacon Act

Now let’s go over how to complete a

Payroll Report!!!!!

11

Sample Payroll 12

U.S. System Award Management

(SAM.gov)

DUNS Number Requirement

What is a DUNS Number, and How are

They Assigned? A Data Universal Numbering System (DUNS) number is a unique,

non-indicative 9-digit identifier issued and maintained by Dun &

Bradstreet (D&B) that verifies the existence of a business entity

globally. D&B assigns DUNS numbers for each physical location

of a business.

Obtaining a DUNS number is absolutely free for all entities doing

business with the Federal government.

13

Will I Still Need a DUNS Number

to Enter SAM.Gov?

Yes, all activities related to D&B and the DUNS

number will remain the same.

The DUNS number will be needed to begin your

SAM.gov registration. Any updates to your

company name or address need to be made at

D&B prior to entering the data into SAM.

14

What is a DUNS + 4?

A DUNS + 4 number means the DUNS number

assigned by D&B plus a 4-character suffix assigned

by the business concern.

D&B has no affiliation with this 4-character suffix.

The business can assign a + 4 character to your

DUNS number to designate alternate Electronic

Transfer (EFT) accounts for the same business.

15

U.S. System Award Management

(SAM.gov)

System for Award Administration (SAM) registration

(formerly the Central Contractor Registry or CCR) is

required to receive any Federal grant award

monies.

The organization must be registered and have up-

to-date information entered into the online system.

To register visit: www.sam.gov

Your company/business/organization is the Entity.

All entities must create a SAM account.

16

Registering Entities in SAM

► SAM will walk users through the Entity Registration (or validation) process in four steps

Contractors and other kinds of award recipients are now collectively referred to as “Entities”

you will answer Purpose of Registration questions to determine which registration sections are required for them

Entity Registration is organized in four steps:

• Core Data – Name, address, etc.

• Assertions – Information used to determine small business status, NAICS codes, etc.

• Representations and Certifications – Federal Acquisition Regulation compliance

• Points of Contact – Contact information for specified roles

17

New User SAM Registration Access the SAM online registration at

www.sam.gov or click on the link in the AFG

online application.

Click on the box on the right and search using

your DUNS number. If your organization pops up

with a “record” that means you registered in

CCR and the “record” migrated over to SAM.

Create a User Account.

Select Individual account.

Enter the requested information and submit.

18

SAM Registration

After you have registered, you will receive an

activation link from SAM.gov to activate your

account.

Log in at https://sam.gov with the username and

password you created. This action must be

completed within 48 hours of receipt of the

confirmation email.

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SAM Access: Getting Started

20

SAM Access: Completing

Your Profile

►Only basic

information about

you is required.

►You will receive an email to

validate your access to the

email address associated

with your account.

21

Points of Contact

• As an Entity, you must enter points of contact

(POCs) for your registration. The types of POCs

required will be determined based on

information entered in the registration.

► You will fill in

basic contact

information.

► Each type of

POC will be

noted on the

screen.

22

Submitting Registration The record must be reviewed in its entirety

before it may be submitted.

Upon submission, the Annual Renewal Date for the entity registration will be set; entity registrations must be renewed every 365 days.

An entity record will not be considered active until the IRS has successfully validated the employer or tax ID number (TIN) match, and the CAGE Code has been assigned, if applicable.

23

SAM.gov Website

Videos are available on the SAM.gov website

To access the videos, please do the following:

Go to www.SAM.gov

Click on the HELP tab

On the left hand side of the screen you will see: User Guides, Demonstration Videos, and Exclusion Information

Click on Demonstration Videos

You will see over five demonstration videos along with the transcripts

24

Section 3

Section 3 ensures that:

Economic opportunities generated by certain HUD

funded projects shall be directed to:

Low- and very low-income persons (particularly

those receiving assistance for housing), and

Businesses that provide economic opportunities to

these persons.

25

Section 3 Covered for

PHAs

Entitlement Communities

HOME Participating Jurisdictions

State, County, or Local Units of Government

Non-Profit Organizations

Developers

Property Managers

CHDOs

Private Agency or Institution

Recipient Agencies

26

Covered Funding Examples

HOME

CDBG

NSP/Economic Stimulus Funds

HOPE VI Funding

PHA Operating Funds

PHA Development Funds

PHA Modernization/Rehab Funds

27

Funding Thresholds Section 3 requirements apply to recipients of CDBG

funding exceeding $200,000 (in any fiscal cycle)

Section 3 applies to all projects involving “covered

activities,” regardless of whether they are fully or

partially funded with CDBG

Section 3 requirements do not apply on a “per

project” basis

The threshold applies to the total amount of HUD

assistance received, not just the amount spent on

covered activities

28

Funding Thresholds

Section 3 requirements apply to contractors or

subcontractors with contracts exceeding

$100,000 (for covered activities)

The requirements apply to each individual

contract that meets the threshold

If no individual contract exceeds $100,000,

Section 3 responsibilities apply only to the

recipient agency ( if funding exceeds $200,000)

29

Section 3 Economic Opportunities Section 3 regulations do not require hiring/contracting

unless it is necessary to complete the project.

** Only triggered when covered projects require “new” hires

or contracting opportunities

30

What Section 3 is NOT… A Racial Quota Program

An Entitlement for Eligible Individuals and Businesses

Only applicable to Direct Recipients

Optional—It’s the law!

31

Section 3 Economic Opportunities

Not limited to low-wage construction jobs

Prospective Section 3 eligible employees

or businesses must demonstrate that they

are qualified

32

Section 3 Residents Residents of Public Housing; or

Low- and very low-income persons residing in the metropolitan area or non-metropolitan county

Persons receiving unemployment benefits or other government subsidies

Returning Veterans

Recent College or Vocational School Graduates

Women in non-traditional careers

YouthBuild participants

33

Section 3 & Minorities Section 3 of the HUD Act is race-neutral.

The preferences provided by this federal act are

based on income and location

34

What is E-Verify? Electronically verifies the

employment eligibility of

• Newly hired employees

• Existing employees assigned to

work on a qualifying federal

contract

Free web-based service

Fast and easy to use

Partnership between the U.S.

Department of Homeland

Security (DHS) and the Social

Security Administration (SSA)

35

What is E-Verify? E-Verify is not…

…a system that provides immigration status

…used for prescreening

…a safe harbor from worksite enforcement

36

Why use E-Verify?

Ensures a legal workforce

Protects jobs for authorized workers

Deters document and identity fraud

Works seamlessly with Form I-9

37

State E-Verify Requirements

TX

CO

GA AZ

MN

OK

ID

NC

IL

AR

IN

K

MI

MO

SC MS

IA W

Y

UT

AL LA

NJ NE

OR

TN

CA

P

A

N

OH VA

C

T M

D

W

I

FL

Enacted legislation

requiring mandatory

use of E-Verify for all

employers

Enacted legislation

requiring various

public

entities/contractors to

use E-Verify

Enacted legislation

requiring only public

contractors to use E-

Verify

38

E-Verify & the FAR E-Verify

Clause Federal Acquisition Regulation (FAR) final rule requires that

as of September 8, 2009 federal contractors with contracts

containing the FAR E-Verify clause must use E-Verify as a

condition of their contract.

FAR E-Verify Clause: 48 C.F.R. 52.222-54

39

E-Verify Enrollment and Use

How to Enroll – At www.dhs.gov/E-Verify

Go to www.dhs.gov/E-Verify under Start Here click Enroll in E-Verify

40

Enrollment Page 41

New E-Verify Users Take the E-Verify Overview webinar

42

Determining Who to Verify Verify existing employees:

Hired after November 6, 1986

Working in the United States

Performing direct substantial work on a contract

containing the FAR E-Verify clause

Includes short term & temporary employees

43

When to Verify: New Hires

You must begin entering Form I-9 information into

E-Verify for new hires within 90 calendar days of

enrolling or updating your organization

designation to Federal Contractor with FAR E-

Verify clause.

44

Federal Contractor Responsibilities

Federal Contractor Responsibilities For a contract with the FAR E-Verify clause awarded on or after September 8, 2009

Verify all existing employees working on the contract, and

Verify all new employees hired after the date of enrollment in E-Verify

OR

Verify entire workforce

45

Other Resources

For more information on the law and regulations please see

DHS Web site:

www.dhs.gov/E-Verify

46

Other Requirements

Insurance Coverages

General Liability Insurance

Property Damage Insurance

Worker’s Compensation Insurance

47

Licenses & Certifications Contractors will be require to submit the following:

Business License

State of Georgia Contractors License

EPD State of Georgia Lead Certified Firm Certificate (if applicable)

EPA Lead Renovation, Repair & Painting Certificate (RRP)

Cobb County Online Vendor Registration Application https://www.cobbpurchasing.org/webapp/VSSPROD/Advantage

Cobb County Online Vendor Registration Instructions http://www.cobbcounty.org/images/documents/purchasing/vendor_register_instructions_may_2013.pdf

48

Bonds

Federal projects may require contractors to obtain:

Code Compliance Bonds

Payment Bonds

Performance Bonds

49

Contractor Payments

There is a 30-Day turn-around on payment requests

once all required supporting documentation is

received:

Invoice, including original contract amount,

change order amounts and applicable retainage

(typically 10%)

Lien Waivers

Contractor Warranty

Proof of Permits and Final Approvals (permits must

be posted on site for duration of project)

Draw Schedule

50

Questions?

51