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Recovery Act, Capital Fund, Procurement

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Presentation on theme: "Recovery Act, Capital Fund, Procurement"— Presentation transcript:

1 Recovery Act, Capital Fund, Procurement
Utah NAHRO March 18, 2010 St. George, UT

2 Topics to be Covered Procurement Recovery Act Energy Star Capital Fund
Energy performance Contracts Section 3 Recovery Act Capital Fund Obligations/Expenditures Environmental Reviews Areas I want to cover with you today include an update on: READ BULLETS

3 Recovery Act Funds Thanks for your hard work on meeting obligation deadline! 3/17/11: 60% of funds expended 3/17/12: 100% of funds expended Don’t forget reporting requirements. Please share your success stories with us. Want to thank everyone for their hard work on getting formula Recovery Act funds obligated by March 17. We didn’t have any PHAs in Region 8 who missed this date. Today we can take breather, but tomorrow we will shift our focus to assisting PHAs meet the expenditure deadline dates for Recovery Act funds. The ARRA expenditure deadline dates are more ambitious than regular capital funds. By 3/17/11 PHA have to expend at least 60% of their funds. Any funds below 60% will be recaptured. And by 3/17/12 PHAs have to have 100% of funds expended. There will be no extensions granted for either of these deadline dates. We will also now start focusing attention on those PHAs received competitive recovery Act funds. These funds have to be obligated by this Fall. Finally, I would like to ask that you share with us success stories and pictures from your Recovery Act activities. these to myself or to your FMS.

4 Recovery Act – Reporting Requirements
Recovery Act Management and Performance System (RAMPS) National Environmental Policy ACT (NEPA) Core Activities Federal Reporting Performance Reports – cancelled The American Recovery and Reinvestment Act (ARRA) was signed into law on February 17, The law requires grantees to report information about funding. The Recovery Act Management and Performance System (RAMPS) was created by HUD to provide an efficient way to collect required information. The Recovery Act Management and Performance System (RAMPS) is a HUD system that has two reporting modules: one to report on compliance with the National Environmental Policy Act (NEPA) environmental reviews for all Recovery Act-funded projects and a new module (Core Activities) designed to capture information at the project level on development, modernization and energy efficiency work funded by the Recovery Act. NEPA Section 1609 (NEPA) requires that recipients of Recovery Act funds report on the status of environmental compliance review actions. Each grantee receiving HUD Recovery Act funds subject to the environmental reviews requirements found in 24 CFR Part 58 should complete the NEPA Reporting portion of the Recovery Act Management and Performance (RAMPS) data system. Core Activities Reporting The Core Activities module of RAMPS is designed to collect information about the work you are doing with Recovery Act funds. Specifically, this module collects information on units of affordable housing developed or modernized using CFRG funds as well as data on energy efficiency improvements included in these units. The Department will utilize the data collected through this effort to assess the extent of the impact that the Recovery Act funding is having on the public housing inventory, particularly to highlight the successful work that is already underway. Federal Reporting: Section 1512 requires recipients and sub-recipients to report on the nature of projects undertaken with Recovery Act funds, and the numbers of jobs created and retained. This information must be reported to, a system created and managed by OMB and the Recovery Accountability and Transparency Board (RATB).

5 Recovery Act – Reporting Requirements
Important Dates Recovery Act reporting: quarterly Next Reporting Period: 4/1-10/10 For period ending 3/31/10 Access system early; don’t wait until last day Websites Ramps: Fed Reporting: The American Reinvestment and Recovery Act (ARRA, or the Recovery Act) seeks to provide for transparency and accountability in the use of Recovery Act Funding. All reporting in the Recovery Act will be conducted on a quarterly basis on the part of agencies and grantees. Important Dates and Deadlines: - Federal Reporting: between Jan. 1-Jan. 10, 2010 NEPA – Jan. 10, 2010 Core Activities – Jan. 31, 2010, extended to Feb. 12, 2010

6 No 2010 processing dates yet.
Capital Fund Due Dates : Obligation Deadline Date : Expenditure Deadline Date : Obligation deadline date : Expenditure Deadline Date : Expenditure Deadline Date No 2010 processing dates yet. Here are the key processing dates for your 2007, 2008 and 2009 capital funds. Remember: under the capital fund program a PHA has 2 years to obligate and another 2 years to expend its capital funds. At this time have no update as to when 2010 capital funds will be made available. Anticipate a similar ACC process as in previous years.

7 When Are Funds Obligated?
Not when planned for or included in PHA Plan Not when IFB or RFP is issued Not when bids are received Must have executed contract, PO For force account, must be sequentially related items CFP – 2 years to obligate Monthly LOCCS reporting of obligations required As a result of our remote and on-site monitoring of ARRA grants, we discovered that many PHAs were incorrectly reporting funds as being obligated. First of all funds are not obligated when: Discuss 1st 3 bullets. In order for funds to be considered obligated there must be a signed contract or purchase order in place. If you are doing force account, funds are considered obligated for related work items when the first work activity of the related items is started. PHAs are also required to report in LOCCS at least monthly the capital funds per grant that are obligated.

8 When Are Funds Expended?
Upon payment to contractors and vendors CFP – total of 4 years to expend Monthly LOCCS reporting for expenditures required Remember: Funds drawn down from LOCCS should be disbursed within 3 days Once funds are obligated, the next step is the expenditure of funds.

9 Environmental Review Requirements
All CFP grants, even if utilizing 1406 for 100% of the funds, must be covered by an Environmental Review worksheet and accompanied by a letter on the Responsible Entity’s (RE) letterhead See 24 CFR part 58 The RE signer should work for the local government. They cannot be a PHA employee. Funds are “locked” until the requirement is met

10 Environmental Review Requirements Cont…
Most PHAs put money into 1406 or rehab without change in size or capacity of more than 20% This guidance pertains to those situations only Contact your FMS if the PHA is engaging in more extensive work

11 Environmental Review Requirements Cont…
Steps to take after the RE is identified: Decide which grants the RE is going to review and gather budgets/work items for each of those years Attach items to the worksheet and take to the RE Include information the RE will need that pertains to items on the ERR Statutory Worksheets If funds are going to 1406, use ERR Worksheet 2 and attach operating budgets to show what the funds will be used for If doing capital improvements as described above, use ERR Worksheet 3

12 Environmental Review Requirements Cont…
Good news: Environmental Review worksheets and letters can cover more than one grant. An RE can sign for an entire 5 Year Plan period The only annual requirement is a letter or from the PHA stating that the planned activities have not changed from what was reviewed by the RE (e.g. if a PHA alters its 5 Year Plan, another letter and worksheet are required).

13 Environmental Review Requirements Cont…
Most REs will categorize work as “Categorically Excluded and not subject to 58.5”. If so, send the paperwork to your FMS. No further action is needed.

14 Environmental Review Requirements Cont…
If categorized as “Categorically Excluded and subject to 58.5 statutory requirements”, the following are required: NOI/RROF Notification RROF and Certification Form (Form ) Authority to Use Grant Funds (form )

15 Procurement HUD Regulations
“Open and fair competition” 24 CFR is the procurement regulation applicable to all Public Housing Agencies The regulation sets standards which must be met in conducting requirements.

Handbook REV-2 – dated 3/2/10 The HUD handbook has specific guidance, “how to” instructions, and samples of procurement policies, sample contract award, sample advertisement , sample procedures for evaluation committees, etc.

17 Housing Authority Procurement Policy
HA’s have their own procurement policy to implement the Requirements of 24 CFR OPH strongly recommends that HA’s update their procurement policy according to the sample in HUD handbook REV dated March 2, HQ’s checklist for the ARRA Monitoring Review reveled that to meet all their critical elements you would need to use the sample procurement policy.

18 Housing Authority Procurement Policy
The critical elements contained in the sample procurement policy are: Purchasing Methods, Ethics in Contracting, cost and Price Analysis, Bonding Req., Contract Clauses, etc. The policy is established by board resolution. Usually the Board designates the Executive Director as the person responsible for carrying out its Procurement Policy.

19 PHA Operating Procedures
The Housing Authority should have a set of operating procedures to ensure that all staff are able to operate from a common system of procedures. The HUD Handbook REV 2 should be used as a reference during the composition of a HA’s Operating Procedure.

20 HUD Contracting Basics
Micro Purchases- Under $2,000- May purchase from a single vendor if cost is reasonable. HA should have cost estimate on the purchase request. HA should spread purchases to different vendors if possible. HA should maintain a list of all purchases. HA should not split up orders to be under the $2,000 threshold.

21 HUD Contracting Basics (Cont.)
Small Purchases from $2,000 to $100,000 A. Must have three quotes in writing, orally or telephone. Written quotes are preferred. Must have detail scope of work. Specifications and drawings may be necessary to describe work. Bid package must contain General Conditions HUD-Form 5370-EZ. Davis-Bacon Wage Rates – Required on all construction contracts over $2,000. Davis bacon wage rates may be obtained from web site:

22 Solicitation-Small Purchases
IFB-Invitation for Bid-Bid is awarded based on lowest price. All bidders should bid on the same scope of work. RFP- Request for Proposal – The award is based on factors other than price alone. The PHA must issue a Request for Proposal (RFQ) with evaluation criteria and rating points that will be used to evaluate the merits of each quotation. Award is then made to the most qualified vendor if its price is reasonable. QBS-Qualifications Based Selection – permitted only in procurement of A/E Services. Under QBS, the A/E is selected on qualifications, then a price is negotiated.

23 Larger Procurements Contracts over $100,000- Must be advertised in Local Newspaper Construction Contracts over $100,000- bid package needs the Following: 1. Specifications and Drawings 2. General Conditions HUD-5370 3. Davis Bacon Wages 4. Invitation for Bids 5. Instructions to Bidders HUD-5369 6. Reps., Certs. and Statements HUD-5369A 7. Bid Guarantee(Bid Bond SF-24), Performance and Payment Bonds 8. Bid Form

24 Contract Administration
The goal of contract administration is to ensure that the contract is preformed, as written, by both the contractor and the Housing Authority. Elements of Contract Administration Assuring that the contractor does the work called for in the contract. Assuring Quality Assuring timely performance Assuring performance within budget.

25 Construction Management Files
General File Construction Award letter, signed contract, notice to proceed letter, contractor’s schedule, contractor’s schedule of costs Submittal File – beware of substitutions to specifications. Get A/E ‘s approval of submittals. Construction Inspection File-Written Inspection Reports. Contractor’s payrolls conforming to Davis-Bacon Final Project Closeout and Warranty File

26 Energy Star Energy Star is a government-backed program helping businesses and individuals protect the environment through superior energy efficiency. HUD, EPA and DOE have signed a formal partnership to promote Energy Star throughout HUD’s Affordable housing programs. Notice PIH dated July 13, Using ENERGY STAR to Promote Energy Efficiency in Public Housing- HAs are strongly encouraged to Purchase Energy Star products unless the energy star appliance is not cost-effective to the agency.

27 Energy Star Products Energy Star Manufacturers and savings calculators can be found on the Energy Star website: Appliances will have the Energy Star Logo Refrigerators Heating equipment Clothes washers Ventilation fans Dishwashers Insulation Lighting Fixtures roof products Room and central air conditioners, etc.

28 Energy Star DOE Bulk Purchasing
HUD approves use of DOE’s Quantity Quotes Website: Obtaining 3 quotes from the DOE website satisfies 24 CFR 85.36(d) for purchases from $2,000 to $100,000 A. Purchaser makes request B. Suppliers respond via web site C. Purchaser follows up with Supplier If less than three quotes are received then PHA must obtain another quote from other sources

29 Energy Performance Contracts
A. Energy Performance Contracting is a HUD program enabling Housing Authorities to complete energy saving projects via an alternate funding source. The energy savings generated from the projects pays for the projects. (plus additional savings). B. Savings are generated as HUD freezes the utility base (at its current level) for the life of the project (usually 12 years). There is also an add-on subsidy that can be used. C. The HA obtains a loan to finance the energy conservation projects. An Energy Service Company (ESCO) performs the energy audit, project designs, project management and assists the HA to obtain the loan. The energy savings that pay off the loan are guaranteed by the ESCO. D. Usually ESCOs are interested in projects over $500,000. E. HQ in HUD is also coming out with an ESCO Light. The PHA would act as the ESCO, assisted by a Mechanical Engineer.

30 5 Steps to Energy Performance Contracting
1. Decide if Performance Contracting is right for you. Assess your needs & potential benefits. 2. Select an Energy Service Company-Develop a RFP- The RFP must be approved by HUD Field Office prior to solicitation. 3. ESCO identifies energy-saving opportunities. Develop an audit contract-Must be approved by HUD Field Office. 4. Negotiate an Energy Performance Contract-Must be Field Office approved. Verify savings and enjoy benefits. 5. Monitor long-term performance. Please contact your FMS for guidance and information.

31 Section 3 Reporting “ to the greatest extent possible, provide job training, employment & contract opportunities for low or very low-income residents in connection with projects & activities in their neighborhoods” Annual reports due by January 10 The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods. PHAs, as recipients of federal funds, are required to report annually.

32 A PHA’s Section 3 Responsibilities
Implementing procedures for notification to Section 3 residents & businesses Notifying potential contractors working on Section 3 projects of their responsibilities Incorporating Section 3 clause into all solicitations & contracts Facilitating training, employment & contract awards

33 Section 3 Responsibilities, cont.
Actively cooperating with HUD in making contractors comply Refraining from entering into contracts with contractors that are in violation of Section 3 Documenting actions taken to comply with Section 3 Submit Section 3 Annual Summary Reports (form HUD-60002)

34 PHA Programs Covered by Section 3
Operating Fund Capital Fund/Recovery Act HOPE VI ROSS FSS Separate HUD submission for each program Submit on-line:

35 Denver Office of Public Housing
New Staff Crystal Bergemann, Presidential Management Fellow (PMF), joined OPH in July Eva Tafoya, PMF, joined OPH in August Jaime Schuler, PMF, joined OPH in August James Ashford, Federal Career Intern, joined OPH in November. Web page News-to-Use

36 Any Questions?

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