Lycoming Housing Authority
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General Contractor Information

Labor Requirements for Maintenance Contracts

Certain labor requirements apply to Public Housing maintenance contracts over $2,000.00. All laborers and mechanics employed in maintenance contracts must be paid at least the minimum wage rates established for their wage classifications no less often than semi-monthly.  For additional information, please see A Contractor’s Guide to Prevailing Wage Requirements for Federally-Assisted Projects (HUD-LR-4812).

Contractors working on maintenance contracts are not required to submit payroll reports; however, they must prepare and maintain reports for three years from the completion of the work. The contractor and each subcontractor shall make and maintain payroll records, which must be available for inspection, copying, and transcription by authorized representatives of HUD or the Housing Authority and shall permit such representatives to interview employees during working hours on the job.

Davis-Beacon Wage Rates

Each contract subject to Davis-Bacon labor standards requirements must contain labor standards clauses and a Davis-Bacon wage decision. These labor standards clauses describe the responsibilities of the contractor concerning the payment of Davis-Bacon wages and obligate the contractor to comply with the labor requirements. The Davis-Bacon wage decision (or wage determination) is a listing of various construction work classifications, such as Carpenter, Electrician, Plumber and Laborer, and the minimum wage rates (and fringe benefits, where prevailing) that people performing work in those classifications must be paid. Davis-Bacon wage decisions are established by the U.S. Department of Labor (DOL) for various types of construction (e.g. residential, heavy, highway) and apply to specific geographic areas, usually a county or group of counties. The wage decisions are included in the contract and are posted at the work sites. The prime contractor is responsible for the labor compliance for all his/her subcontractors and all lower-tier contractors.

Certified Payroll Reports

Contractors subject to Davis-Bacon and Related Acts requirements must submit weekly certified payroll reports for every week that work is being performed. Each payroll report must be certified (i.e. signed by an authorized member of the contractor’s staff). The payroll reports will be reviewed by the Authority to assure that the contractor is paying the appropriate wage rates and fringe benefits. In conjunction with the submission of weekly payroll reports by the contractor, the Authority must interview workers periodically regarding the contractor’s compliance with the payment wages and any required fringe benefits.

Overtime

Overtime hours are defined as all hours worked on the contract in excess of 40 hours in any workweek. Overtime hours must be paid at no less than one and one-half time the regular rate of basic pay, plus the straight time rate of any required fringe benefits.

Deductions

Certain payroll deductions are allowed by DOL regulations including income taxes, Social Security payments, insurance premiums, retirement, savings accounts and any other legally-permissible deduction authorized by the employee. Deductions may also be made for payments on judgments and other financial obligations legally imposed against the employee.

Minority and Women Business Enterprises

The Lycoming County Housing Authority firmly supports equal opportunity for Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) in bidding for materials, services and equipment required by the authority.

Minority Business Enterprise

The term “Minority Business Enterprise” means a business, at least 50% of which is owned by minority group members, or in the case of publicly owned businesses, at least 51% of the stock is owned by minority group members. For the purpose of this definition, minority groups are African Americans, Hispanics, Asians, Native Americans, Alaskans or Pacific Islanders. Any company that successfully secures a construction contract with LHA is encouraged to make every effort to consider MBE subcontractors if the scope of the project requires it.

Women Business Enterprise

The term “Women Business Enterprise” means a business that is at least 51% owned by a woman or women who also control and operate it. “Control” in this context means exercising the power to make policy decisions. “Operate” in this context means being actively involved the day to day management. As with MBE, LHA fully support all initiatives to encourages the utilization of Women Business Enterprises in all contracts administered by the housing authority.

Equal Employment Opportunity

The following clause will be inserted in all Authority contracts subject to formal bidding requirements: During the performance of this contract, the Contractor agrees as follows:
  • The Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or handicap
  • The Contractor shall take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex national origin, or handicap. Such action shall include, but not be limited to the following:
  • employment
  • upgrading
  • demotion
  • transfer
  • recruitment or recruitment advertising
  • layoff or termination
  • rates of pay or other forms of compensation
  • selection for training, including apprenticeship
  • The Contractor shall post in conspicuous places available to employees and applicants for employment the notices to be provided by the Contracting Officer that explain this clause
  • The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contracts, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or handicap

Procurement Methods and Procedures

Small Purchase Procedures

For small purchases of $10,000.00 or less, only one quotation is needed, if the price received is considered to be reasonable. Such purchases must be distributed equitably among qualified sources. Ordinarily, if more than one firm provides the same item or service, multiple prices are requested to assure that the Authority is getting the best possible price for the item or service even if the cost is less than $10,000.00. For small purchases in excess of $10,000.00, but does not exceed $21,900.00, no less than three sources shall be contacted to submit price quotations. These quotes may be obtained orally, by telephone or in writing. Award shall be made to the offeror providing the lowest acceptable quotation that meets the Authority’s specifications. If non-price factors are used, they shall be disclosed to all those solicited.

Formal Sealed Bids

  • Supplies, equipment and services costing in excess of $21,900.00 shall be procured by formal sealed bid upon public solicitation by formal advertising as follows:
  • Advertisement of an Invitation for Bids in at least one (1) newspaper of general circulation a total of two (2) times within a two week period. The first advertisement shall be published not less than ten (10) days prior to the date fixed for the opening of bids
  • Mailing invitations to be to an adequate number of known sources
  • Posting notices in public places
  • Or a combination of such methods, including in every case from Section (a) above
  • The Invitation for Bids, including specifications and pertinent attachments, shall be complete, realistic, and shall clearly and adequately define the items or services needed in order for the bidders to properly respond to the invitation. A brief description of the pertinent civil rights laws and regulations, including equal employment and labor standards when appropriate, shall be referenced in the Invitation for Bids.
  • All bids shall be opened publicly at the time and place stated in the Invitation for Bids.
  • Where specified in the bidding documents, factors such as discounts, transportation costs, and life cycle costs shall be considered in determining which bid is lowest.
  • Any or all bids may be rejected by Lycoming Housing Authority when there are sound documented business reasons which are in its’ best interest.
  • A firm, fixed-price contract (lump sum, unit price or combination lump sum and unit price) shall be awarded by action of the Lycoming County Housing Authority’s Board of Directors to the responsible bidder whose bid conforms with all of the material terms and conditions of the Invitation for Bids and is lowest in price. The amount of the contract must in all cases (whether of straight sale price, conditional sale, bailment lease, or otherwise) be the entire amount paid to the successful bidder in order to obtain the services or property, or both, and must not be construed to mean only the amount which is paid to acquire title or to receive any other particular benefit of the whole bargain.
  • Contracts will not be awarded to any contractor that has been debarred, suspended or otherwise prohibited from participating in state or federally assisted activities.
  • If the results of the bidding are not satisfactory in terms of price, qualifications or other good cause, consideration shall be given to:
  • rebidding for the procurement as planned and specified; or
  • rebidding for the procurement after revising the plans and specifications
  • Assurance of Completion – The successful bidder shall furnish an assurance of completion prior to the execution of any contract under this solicitation. This assurance may be as follows:
  • separate performance and payment bonds, each for 100% of the contract price; or
  • a 100% irrevocable letter of credit from a federal or Commonwealth chartered lending institution for their performance of the work AND a 100 % irrevocable letter of credit from a federal or Commonwealth chartered lending institution for the labor and materials required for the contract

Competitive Proposals

  • Competitive Proposal procedures shall be used for procurement of supplies, equipment and personal or professional services when conditions are not appropriate for the use of formal advertising.
  • Competitive Proposal procedures shall be utilized for procurement of legal, architectural/engineering professional services, whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation.
  • When competitive proposal procedures are used, the following requirements shall apply:
  • A Request for Proposals shall be publicized. Proposals shall also be solicited from an adequate number of known responsible sources to permit reasonable competition consistent with the nature of the procurement.
  • The Request for Proposals shall identify all significant evaluation factors, including price or cost where required and their relative importance.
  • Proposals which are received from qualified and responsible offerors shall be evaluated in accordance with the selection procedures set forth in the Authority’s policies.
  • Negotiations may be conducted with more than one of the sources submitting proposals for either a fixed price or cost reimbursable contract, not to exceed a specified amount, shall be awarded as appropriate to the responsible offeror whose proposal is most advantageous, price and others factors considered.
  • Time and material type contracts shall be used only:
  • After a determination that no other contract is suitable, and
  • the contract includes a ceiling price that the contractor exceeds at its own risk
  • Contracts shall not be awarded to any contractor that has been debarred, suspended or otherwise prohibited from participating in state or federally assisted activities.
  • Unsuccessful offerors will be notified promptly

Non-Competitive Proposals

  • Procurement of supplies, equipment or services under noncompetitive proposal procedures is accomplished through solicitation of a proposal from a single source, which may be required after solicitation of a number of sources and competition, is determined to be inadequate.
  • Procurement of supplies, equipment or services by noncompetitive proposals may be used only when the award of a contract is infeasible under small purchase procedures, sealed bids, or competitive proposals and one of the following circumstances applies:
  • the item is available only from a single source; or
  • the public exigency or emergency for the procurement will not permit a delay resulting from competitive solicitation of bids or proposals; or
  • after solicitation of a number of sources, competition is determined inadequate, for example, if no bids or proposals are received; or
  • the required item is manufactured by one source and must be compatible and/or interchangeable with existing equipment; or
  • the U.S. Department of Housing and Urban Development authorizes procurement by noncompetitive proposals in advance.
A statement justifying the use of the noncompetitive proposal method of procurement shall be presented to the LHA Board of Directors and made a matter of record.

Housing and Urban Development Act of 1968

Section 3

The Section 3 Program requires that recipients of certain HUD financial assistance (i.e.Contractors), to the greatest extent feasible, provide job training, employment and contracting opportunities for low or very low income residents in connection with project and activities in their neighborhoods. It is a means by which HUD fosters local economic development, neighborhood economic improvement, and individual self-sufficiency. Section 3 is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain types of HUD financial assistance.

Covered Programs
Section 3 requirements apply to:

  • Utilization of funds for public housing development, operations, and capital fund programs; these requirements do not apply to Section 8;
  • Certain Notification of Funding Availability (NOFA) and grant agreements governing assistance to LHA may contain Section 3 requirements.

Covered Work
Section 3 covers contracts for work and does not apply to contracts for the purchase of supplies and materials. However, contracting with an LHA resident-owned business for the purchase of supplies and materials is considered providing an “other business related economic opportunity” under 24
CFR 135.40, which can be used to satisfy the LHA’s overall Section 3 obligations. Additionally, if the contract includes installation of purchased equipment, the contract would be covered by Section 3.

Requirements for Contractors and Subcontractors

To the greatest extent feasible, contractors are encouraged to:
  • Provide employment and training opportunities to Section 3 residents.
  • Provide subcontracting opportunities to Section 3 businesses.
  • Where applicable, notify labor unions and organizations of the contractor’s commitments under Section 3.
  • Post notices conspicuously at all Section 3-covered work sites describing:
  • The Section 3 Preference;
  • The minimum number and job titles of anticipated hires;
  • Apprenticeship and training positions available; the qualifications for each; and the name and location of the person taking applications;
  • The anticipated start date of the work.
  • Include the Section 3 requirements clause in all applicable subcontracts.
  • Take appropriate action if a subcontractor violates the Section 3 regulation.
  • Avoid subcontracting with any company/individual where the contractor has noticed or has knowledge that the subcontractor has been found in violation of the Section 3 regulations.
  • Certify that the contractor did not circumvent the Section 3 employment opportunity requirements, if the contractor hired any persons not covered by Section 3 between the time the contractor was selected and the contract was executed.

Note: Section 3 applies to “new hires”, defined as persons in new employment opportunities, at all levels, generated from the expenditures of Section 3-covered assistance. New hires are defined as full-time positions that are permanent, temporary, or seasonal.

Section 3 is triggered when the normal completion of construction and rehabilitation projects creates the need for new employment, contracting or training opportunities.

Who qualifies as a participant?

Section 3 Residents are:
  • Public Housing Residents, or
  • Persons who live in the area where a HUD-assisted project is located and who have a household income that falls below 80% of the area median income adjusted for family size and as defined by HUD.

What qualifies as a business?

A Section 3 Business meets the following criteria:
  • 51 % or more is owned by Section 3 qualified residents;
  • Employs Section 3 residents of at least 30% of its full-time, permanent staff;
  • Provides evidence of a commitment to subcontract to Section 3 business concerns, 25% or more of the dollar amount of the awarded contract.

Vendor Information

Lycoming County Housing Authority, as a publicly-funded organization, is required by Federal and State statutes to ensure that it is acting legally and with integrity in its’ daily operations. This includes abiding by all regulatory requirements as they pertain to procurement activities. (See HUD PROCUREMENT GUIDEBOOK for further information.) The term”procurement” is defined as the purchasing, leasing, or renting of the following:

  • Goods, Supplies, Equipment and Materials
  • Construction and Maintenance
  • Consultant Services
  • Architectural and Engineering (A/E) Services
  • Social Services
  • Other Services

The Federal and State statutes require LHA to obtain competative pricing quotes for any project or contractual services that exceeds a $2,000 threshhold. LHA staff must discharge their duties impartially to ensure fair, competitive access to procurement opportunities by responsible contractors. LHA is required to promote competition in contracting and assure that LHA’s purchasing actions are in full compliance with applicable standards and regulations.

The competitive bidding process has provided LHA the opportunity to successfully complete many capital improvement projects with the assistance of effective contractor partnerships. LHA is always interested in establishing new business relationships for future endeavors and invite all interested parties to be a part of the bidding process. LHA also supports the increase in and improvement of all small, minority-owned, women-owned and otherwise disadvantaged businesses. We are committed to helping any interested contractors navigate our procurement process and look forward to establishing new partnerships that will bring our strategic goals to reality in a fiscally responsible manner.

RFPs, Scope of Work & Awarded Bids

Access procurement documents, including RFPs, project scopes, and awarded contracts, for vendors and contractors on our RFPs, Scope of Work & Awarded Bids page.

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