Community Development Block Grant CDBG 301 Training Program Day 2

1. Community Development Block Grant CDBG 301 Training Program Day 2 Building Better Communities One Project at a Time

2. Day Two Agenda • 8:30 Registration • 9:00 CDBG 301 Day One Re-Cap • 9:15 Month 3 • Engineer/Architect Status Check • 9:20 Month 4 • Local Match Coordination • Financial Management (Exercise #1) • 10:00 Break • 10:15 Month 5 • Coordination of Bidding Process • 11:10 Month 6 • Solicitation of MBE/WBE & Section 3 Encouragement • Pre-Bid Meeting • Verify Wage Determination • Conduct Bid Opening • 12:00 Lunch • 1:00 Month 7 • Bid Tabulation • Contractor Verification • Engineering/Architectural Recommendations • Local Match Obtainment

3. Day Two Agenda • 1:15 Month 8 • Secure Local Financing • Obtain Release of Funds • Execute Construction Contracts • Conduct Pre-Construction Meeting • Start of Construction • 2:00 Break • 2:15 Month 8 (Continued) • Financial Management • Financial Management (Exercise #2) • 2:45 Month 9 • Establish Labor File for Each Contractor • Obtain Labor Release of Funds • 3:15 Break • 3:30 Month 9 (Continued) • Monitor Certified Payroll Reports • 4:00 Class Dismissal

4. Introductions Shannon McLeod Priority Project Resources, Inc. 531 Sycamore Trace Greensburg, IN 47240 Phone: (812) 663-7385 Mobile: (317) 695-4434 Email: Shannon@pprgrant.com Certified: Since 1992

5. CDBG Project Administration The Administrative Process !!

6. Construction Grant Administration • FEEPS Review • Proof of Bidder’s Registration • Direct Deposit Form • Local Match Update • Format II Environmental Record (Environmental Form 8) • Update of Engineering Status • Update on Permit Status • Site Control Documentation(Acquisition Form 1 & Form 2) • Income Survey Documentation (Methodology, Sampling of Survey Forms, etc.) • Civil Rights Officer Notification (Civil Rights Form 1) • Affirmatively Furthering Fair Housing (Civil Rights Form 3) • Labor Standards Officer Notification (Labor Standards Form 1)

7. Construction Grant Administration • Month 1 • Project Kick-Off Meeting • Establish Grant File System • Publish Environmental Releases (Environmental Forms 10 ( if HUD 8 Step 11 & 12) • Procure Professional Service Providers (Procurement Forms 1 thru 8) • Month 2 • Execution of Professional Service Contracts (Federal Third Party Contract Provisions) • Completion of Land Acquisition (Proof of Purchase & Recorded Deeds) • Financial Management Set-Up (Financial Forms 1 thru 5)

8. Month 3 • Check in With Engineer/Architect on Design Status

9. Design / Cost Status Update Per the Grant Agreement, the Grantee has to have the project Bid within 6 Monthsof Grant Award. Periodically check in with the Engineer / Architect to make sure that the design and bidding is still on schedule. If not, you may need to file for a Grant Modification.

10. Month 4 • Coordinate with the Grantee CFO, Rate Consultant, Attorney and Bond Counsel on Local Match Obtainment

11. Local Match Obtainment • Once professional contracts have been executed, construction estimates reviewed (updated) and previously disbursed expenses have been accounted, the Grant Administrator will need to coordinate with the Grantee CFO, Rate Consultant, Local Attorney and Bond Counsel (if the local match needs to be borrowed) to: • Review / Update Project Budget; • Verify Project Line Item Eligibility under each Funding Source; • Develop Borrowing Timeline / Initiate Borrowing Procedures.

12. Exercise #1 Financial Management Activity

13. 15 Minute Break The easiest time to add insult to injury is when you’re signing somebody’s cast.

14. Month 5 • Coordinate with Grantee and Engineer/Architect on the Bidding Process

15. Procurement • Procurement is a process in which goods and services are solicited and obtained. • The process should establish uniform standards that are fair, concise and encourage full and open competition. • A Grantee should always utilize this established process when soliciting goods or services, however when Federal funds are paying for all (or a portion) of the goods/services; documented procurement procedures MUST be established and followed. • The developed standards should comply with the requirements set forth in 2 CFR 200.318 – 200.323.

16. 2 CFR 200.318 – 200.323 Defined • When a STATE is procuring property and services under a grant, it will follow the same policies and procedures it uses for procurement from its non-Federal funds; • The STATE will ensure that every purchase order or other contract includes any clauses required by Federal statutes and executive orders and their implementing regulations; and • Other grantees and sub-grantees will use their own procurement procedures which reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in 2 CFR 200.318 – 200.323.

17. CDBG Recipients Must • Develop policies and procedures for procurement that comply with both 2 CFR 200 and any stricter state or local standards; • Maintain a written code of standards of conduct governing the performance of employees engaged in the award and administration of contracts; • Avoid any POSSIBLE Conflict of Interest.(It’s better to disclose even the most remote chance of a conflict than not to disclose and have to defend a perceived conflict.)

18. Procurement Construction Grants Professional Service Procurement Can Take Place Before or After the CDBG Construction Grant is Awarded Contractor Procurement Is Initialized within six (6) months of the CDBG Grant Being Awarded

19. Procurement Four (4) Methods/Types of Procurement: Noncompetitive or Sole Source Provider Method Small Purchases Method Competitive Negotiation Method Sealed Bid Method

20. Non Competitive Sole Source Method • This method of procurement is seldom utilized, hence the Grantee must provide evidence that there is only one (1) service or equipment provider that provides the needed product or service. In order to utilize this method of procurement, the Grantee must inform OCRA about the situation and obtain written approval from Grant Services prior to initiating the process.

21. Non Competitive Sole Source Method • Non Competitive Sole Source Required Documentation • Letter from Engineer or CEO that only one (1) provider of the service or product exist; • Letter from OCRA concurring with Grantee’s finding; • Send Written Request to Vendor Detailing the Services or Product Needed and Ask that They Provide You a Detailed Scope of Service and Cost Estimate back in writing; • Minimum time frame for request is seven (7) days; and • Utilize Procurement Form 19 – Cost Price Analysis once quote is received to help substantiate that the price is fair and reasonable.

22. Non Competitive Sole Source Method

23. Small Purchase Method This method of procurement, commonly referred to as “Request for Quotes”, may be used for the purchase of supplies and incidental services with an estimated dollar value equal to or less than the applicable bidding limit established for the community at IC 36-1-12. SMALL

24. Small Purchase Method • Small Purchase Required Documentation • Letter from Engineer or CEO requesting that the small purchase method be utilized, as per the established for the community at IC 36-1-12; • Letter from OCRA concurring with Grantee’s finding; • Utilize Procurement Form 20 – Request for Quotation; and • Utilize Procurement Form 19 – Cost Price Analysis (if only 1 quote is received)

25. Small Purchase Method Small Purchase Additional Information • Contact three (3) vendors for competitive quotes; • Solicitations may be sent via email, letter or fax with proof of delivery; • MBE/WBE vendors are not required; • Submission time for quotes is a minimum of seven (7) days; • All responses must be documented and records maintained; because • VERBAL QUOTES ARE NOT ACCEPTABLE

26. Small Purchase Method Small Purchase Additional Information • The lowest quote should be selected when possible (Procurement Form 20). If lowest quote is not accepted the Grantee’s legal counsel must be consulted and provide a letter of justification for the decision; • If only one quote is received, the consulting Engineer or Architect must validate that the price is reasonable and prepare a cost analysis (Procurement Form 19). Making several separate small purchases from the same vendor or different vendors in order to stay under the formal bidding threshold is prohibited by Indiana Code.

27. Small Purchase Method

28. Sealed Bid Method This method of procurement, commonly referred to as a “Bid Opening” or “Invitation for Bid (IFB)”, is utilized to procure construction contractors. Bid Enclosed

29. Sealed Bid Method • 10 Step Process of Sealed Bid Method • Coordinate with Grantee, Engineer and Attorney Early On to Establish Bidding Schedule / Responsibilities; • Provide Engineer with Federal Construction Provisions and Applicable Wage Scale to Include in Bid Specification Packet; • Review Bid Advertisement Prior to Publication to Make Sure All Federal Language, Meeting Times, Dates & Location are Included; • Solicit At Least Two (2) MBE/WBE Contractor / Suppliers; • Attend Pre-Bid Meeting (Civil Rights / Labor Standards); • Verify Wage Determination Lock-In • Log In Date / Time of Sealed Bids & Attend Public Bid Opening; • Obtain Certified Bid Tabulation; • Verify that Contractor is Eligible for Award (Contractor Verification – via SAM.Gov & HUD.Gov); and • Engineering Recommendation Letter.

30. Sealed Bid Method Step 1 – Coordination With Grantee, Engineer, Attorney • Once your grant is awarded, you will attend a “FEEPS” meeting with OCRA Representatives. At this meeting, you will be given a date in which the bid opening has to transpire by. It is vitally important that you let everyone on the project team know this date and set the schedule accordingly; • The Bid Date is within 6 Months of the Grant Award– so, engineers often have to work double time to get all accomplished; • Make sure everyone knows their roles / responsibilities. Things such as who will place advertisement in paper, who will check bids in, who will read bids aloud at opening, etc.

31. Sealed Bid Method Step 2 – Bid Specification Preparation • As the Grant Administrator, it is your job, to make sure the Architect / Engineer has a copy of the following documents for inclusion within the Bid Specification Packet: • Federal Construction Contract Provisions– Located on OCRA’s Website Under CDBG Other Resources; • Federal Labor Standards Provision Form HUD-4010 – Located within Federal Construction Contract Provisions; and • Applicable Davis-Bacon Wage Determination (project type / location) – Located at https://beta.sam.gov/

32. (Labor Standards) Federal Construction Contract Provisions Located on OCRA’s Website Under CDBG Other Resources

33. (Labor Standards) Davis Bacon Wage Determination (Wage Scale) There are three (3) types of wage determinations: 1.Building(Code = IN2) 2.Heavy/Highway(Code = IN6) 3.Residential(Code = IN20) OCRA construction projects will use either the Heavy/Highway or Building determinations, as OCRA, does not fund residential housing projects. Although your project may have both building and heavy construction activities, typically only one (1) wage determination is utilized on the project. If there is a question as to whether your project requires two (2) different decisions, please contact OCRA’s Labor Standards Specialist.

35. (Labor Standards) When the wage determination has been selected and sent to the architect/engineer to be included in the bid specification manual, the Labor Standards Officer must complete and submit the Labor Standards Form 2: Initial Wage Determination Assignment to OCRA’s Labor Standards Specialist.

36. Sealed Bid Method Step 3 – Review of Bid Advertisement • Utilize Procurement Form 17 – Sample Invitation for Bid (IFB); • Make sure all Federal Language is Included in Bid Advertisement; • Make sure dates, time and location of meetings is included; • Make sure 10% state minority utilization goal is stated; and • Make sure contractors know where plans/specifications can be purchased / viewed; • IFB must be published at least twice in a newspaper of general circulation, at least 7 days (1 week) apart; • Second publication must appear at least 7 days prior to the bid due date; • The 14 day minimum bidding period is acceptable but allowing for more time is advisable; • Send copy of the IFB to area contractors to help increase the number of bids received; and • Publishing the IFB in well-know trade journals may also increase the number of bids received.

37. (Procurement)

38. (Procurement) Step 3 – Review of Bid Advertisement 2 Times 7 Days Apart Second Bid Has to Be At Least 7 Days Prior to Bid Opening Bid Opening

39. Month 6 • Solicit MBE/WBE Contractors & Suppliers and Encourage Section 3 Participation • Conduct Pre-Bid Meeting • Verify Wage Determination • Conduct Bid Opening

40. Sealed Bid Method Step 4 – Solicitation of At Least Two (2) State Certified MBE/WBE’s And Encourage Section 3 Participation Solicit Minority Contractors and Suppliers (MBE, WBE, DBE) and Send a Copy of the Invitation for Bid (IFB) to the Local Workforce Development Agency

41. (Civil Rights) Solicitation of at least 2 MBE/WBE’s Log on to the Indiana Department of Administration’s Website to Obtain Listing of State Certified MBE/WBE Firms www.in.gov/idoa/mwbe Snap Shot IDOA Web Page Certified Listing – for HUD Verification Purpose

42. (Civil Rights) Solicitation of WBE/MBE/DBE Firms Must Be Done By Certified Mail / Return Receipt

43. (Civil Rights) Send a Copy of the Invitation for Bid (IFB) to the Local Workforce Development Agency To Encourage Section 3 Participation

44. Sealed Bid Method Step 5 – Conduct & Attend Pre-Bid Meeting The purpose of the pre-bid meeting is to review the project scope and applicable federal regulations and give the prospective bidders a chance to comment or ask questions regarding the scope and / or regulations. Contractors should also be informed about how to complete the bidding documents and reminded about the attachment of the 5% Bid Bond.

45. (Labor Standards) • Regardless of the size or scope of the project, the Grantee is required to conduct a pre-bid meeting; • Purpose is to inform bidders of federal / bidding requirements and answer questions regarding the project scope; • The Grant Administrator needs to attend to discuss federal requirements and take minutes; and • Grant Administrator should also circulate / obtain a sign-in sheet.

46. (Labor Standards) • The pre-bid meeting is mandatory; • The architect/engineer, labor standards officer and Grantee representative must attend the pre-bid meeting; • The architect/engineer should review the project scope and answer the bidders questions; • The Labor Standards Officer should: • 1. Obtain the Labor Standards Form 3: Pre-Bid Conference Sign-In Sheet; • 2. Review the Information within the Pre-Bid Conference Guidewith the bidders and answer their questions; • 3. Obtain / Complete Meeting Minutes(engineer or clerk may take minutes); • 4. Sign and Submit the Labor Standards Form 4: Pre-Bid Conference Guide Acknowledgement.

47. Sealed Bid Method Step 6 – Verify Wage Scale Lock-In Wage Rate Lock-In Because the DOL continually monitors the economic conditions of the construction contracting profession, the wage rates are subject to change. It is essential that the Labor Standards Officer verify that the most current rates are being utilized for the project. 72 hours (3 business days) prior to the bid opening, the Labor Standards Officer must check the Davis Bacon Online website page to see if the Wage Scale has been updated. If the wage determination has been updated, the Labor Standards Officer must submit the new wage scale to the architect/engineer to go out via addendum to all prospective bidders – which must be received no less than 48 hours (2 business days) prior to the bid opening.

48. (Labor Standards) Assuming your project is awarded and contracts are signed within 90 days of the bid opening, the wage scale utilized at the time of bid is good for the duration of the project. If for some reason, construction contracts are not signed within 90 days of the bid opening, the Labor Standards Officer will be required to pull the current wage scale in effect on the day the construction contract is signedand provide a copy of this to the contractor; so that the necessary adjustments can be made. Please Note: If the adjusted wage scale has rates higher than the one utilized at the bidding stage, OCRA will NOT allow a change order to be issued for additional labor costs. Once it is determined, which wage scale will be utilized, the Labor Standards Officer will complete and submit to OCRA’s Labor Standards Specialist the Labor Standards Form 5: Wage Determination Lock-In Notice.

49. Sealed Bid Method Step 7 – Log In Sealed Bids & Attend Bid Opening • Sealed Bids Should be Stamped with Date / Time of Receipt; • All Bids Received After Specific Date / Time Should be Returned Unopened to Bidder; • All Bids must be Opened and Read Aloud at a Public Meeting, on the Date and the Time and Place Advertised in the IFB – Utilize Procurement Form 18 – Sample Bid Tabulationto Track Bids; • Make Sure You Obtain a Sign-In Sheet and Take Minutes of Meeting; • No Action Should Be Taken At the Bid Opening Meeting Except to Take the Bids Under Advisement.

50. (Labor Standards) Bid Opening Meeting – Within 6 Months of Grant Award At the bid opening the bids should be opened and read aloud. The bids should be taken under advisement and no action should be taken until AFTER the grantee receives the Release of Funds from OCRA. (Refer to the Procurement Section of the Grantee Implementation Manual for specific instruction on how to proceed with the bidding process.) At the bid opening, the Grantee or the LaborStandards Officer must maintain Meeting Minutesand obtain a Bid Opening Sign-In Sheet. After the bid opening, the architect/engineer should take all bid packets and review them to make sure the appropriate bidding documentation, such as the bid bond, Form 96, financial statement, etc. was submitted and properly completed. Upon his/her review, the architect/engineer should prepare a certified bid tabulationform and a recommendation letter for the Grantee. Both of these items will be needed for the Release of Funds.