Southern Nevada
Regional Housing
Authority
Section 3 Program
HUD Economic Opportunity
Program
Procurement vs.
Contract Obligation
The Section 3 has TWO Program
Components:
• Procurement Preference
• Contract Obligation
Procurement
PROPOSAL MUST INCLUDE:
 Contractor
Initial Response
 Form must be fully completed and signed
and turned in with proposal to be
considered responsive
Business Concern Preference
 Fill
out enclosed checklist
 You MUST include verification to get
bidding preference
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CURRENT JOINT CITY/COUNTY CERTIFICATE
SECTION 3 RESIDENT-OWNED ENTERPRISE
SUBCONTRACTING 25% OF AWARD TO SECTION
3 BUSINESS
30% OF WORKFORCE ARE CURRENTLY
SECTION 3 RESIDENTS OR WERE IN THE LAST 3
YEARS
Section 3 Business Concern
Certification
 The
Housing Authority does NOT provide
pre-qualified certifications
 SNRHA will accept certificates from Clark
County & area Municipalities ONLY as
verification of Section 3 Business Concern
status
 We do NOT maintain a Section 3
subcontractor list
Section 3 Plan Preference

For RFP & QBS solicitations, there are
additional points available depending on how
you report you will comply with our Section 3
requirements
MAX
POINT
SECTION 3 COMPLIANCE OPTION SELECTION FACTORS
5 points
Priority 1: Direct hiring of Section 3 residents
3 points
Priority 2: Joint venture with SNRHA resident-owned business
1 point
Priority 3: Contractor pays for skilled training for SNRHA residents
1 point
Priority 4: Contractor makes a contribution to Section 3 Job Development Fund
5 points
Maximum Section 3 Preference Points
Bidding Preference
Lowest Bid
Max Threshold for Bumping
Lesser of:
Less than $100,000
10.0% of that bid or $9,000
$100,000, but less than $200,000
9.0% of that bid or $16,000
$200,000, but less than $300,000
8.0% of that bid or $21,000
$300,000, but less than $400,000
7.0% of that bid or $24,000
$400,000, but less than $500,000
6.0% of that bid or $25,000
$500,000, but less than $1 million
5.0% of that bid or $40,000
$ 1 million, but less than $2 million
4.0% of that bid or $60,000
$2 million, but less than $4 million
3.0% of that bid or $80,000
$4 million, but less than $7 million
2.0% of that bid or $105,000
Contract Requirements
Contract Amount
Percent Requirements
$25,000, but less than $100,000
6.0 % of the contract amount
$100,000, but less than $200,000
5.5% of the contract amount
$200,000, but less than $300,000
5.0% of the contract amount
$300,000, but less than $400,000
4.5% of the contract amount
$400,000, but less than $500,000
4.0% of the contract amount
$500,000, but less than $1 million
3.5% of the contract amount
$ 1 million, but less than $2 million
3.0% of the contract amount
$2 million, but less than $4 million
2.5% of the contract amount
$4 million or more
2.0% of the contract amount
Hiring Requirement
TOTAL CONTRACT/ SERVICE DOLLARS
Minimum Number of Hires
$100,000, but less than $500,000
1 New Hire
At least $500,000, but less than $750,000
2 New Hires
At least $750,000, but less than $1 million
3 New Hires
At least $1 million, but less than $2 million
4 New Hires
At least $2 million, but less than $3 million
5 New Hires
At least $3 million, but less than $4 million
6 New Hires
For each additional $1 million over $4 million
1 New Hire per $1 million
4 Options To Meet
Total Requirements
Joint venture with SNRHA residentowned business
2. Direct hiring of SNRHA residents or
low-income residents
3. Incur cost of providing training for
Section 3 hires or SNRHA residents
4. Make contribution to SNRHA Section 3
Job Development fund
1.
Sample Table of Monitoring and Enforcement Requirements (Effective November 15, 2012)
Contract Schedule
Billing Total
13%
25%
37%
50%
68%
75%
83%
100%
Compliance Action: Contribution
Compliance Action: Hiring
Compliance Action:
Joint Venture
Compliance Action: Training
No action required
No action required
Joint Venture Agreement must be
executed & submitted within 45
days of SNRHA Contract Execution
If requesting consideration of an
internal training program or other
non-certified training program,
proposals must be submitted within
30 days of contract execution for
evaluation and value determination
No action required
No action required
No action required
No action required
25% Contribution due within 14
calendar days of invoice payment
(check date)
No action required
No action required
No action required
No action required
50% Progress Compliance
documented through payrolls due
within 14 calendar days; as
determined by initial contract
schedule and/or amended with
formal change orders
No action required
50% Progress Compliance
documented through invoices and
receipts due within 14 calendar
days; as determined by initial
contract schedule and/or amended
with formal change orders
50% Contribution due within 14
calendar days of invoice payment
(check date)
50% Progress Compliance must be
achieved before payments
exceeding 50% billing can be
released
No action required
50% Progress Compliance must be
achieved before payments
exceeding 50% billing can be
released
No action required
No action required
No action required
No action required
75% Contribution due within 14
calendar days of invoice payment
(check date)
No action required
No action required
No action required
100% Contribution due before final
payment can be released, due no
later than 14 calendar days of end
date established by contract
and/or subsequent change orders
Final Compliance documented
through payrolls due within 14
calendar days of end date
established by contract and/or
subsequent change orders
Documentation of payments to
subcontracted/Joint Venture
partner must be provided prior to
release of final payment
Final Compliance documented
through payrolls due within 14
calendar days of end date
established by contract and/or
subsequent change orders
Section 3 Numerical Goals
 SNRHA
will track any new hires during
your contract period
 If you hire during this period, 30% of your
aggregate new hires MUST be certified as
Section 3 hires
Hiring Process
 Contractor awarded MUST meet with
Section 3 Coordinator prior to contract
approval and signing to ensure Section 3
Plan is in place
 Staff will assist contractor with referrals
and screening based on Intent to Hire
Form
 Report hires for the project using the
Employee Placement Report
Hiring Process
 Only NEW hires will count towards Section 3
obligation
 When hiring, SNRHA residents must get “first look”
before pursuing other hires
 Only pre-certified SNRHA residents & Section 3
residents are eligible
You WILL NOT receive credit for non-certified
hires, and will only receive credit for the hours once
certified
You will receive credit for wages ONLY, no
overhead burden
2012 Income Eligibility
MAX Earnings Per Household Size
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1 Person Household: $37,000
2 Person Household: $42,250
3 Person Household: $47,550
4 Person Household: $52,800
5 Person Household: $57,050
6 Person Household: $61,250
Enforcement
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Compliance required at 50% project completion
& 100% benchmark for contracts exceeding 90
days
Non-compliance notice issued & future payment
withheld
Restrict contract close-out
Fines will be assessed
Contract termination
Ineligibility for future awards
Possible debarment