Mississippi State Port AuthorityPort of Gulfport Restoration Program

Section 3/DBE Business Concern Workshop

March 26, 2015

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The MSPA is an Equal Employment Opportunity Employer and gives preference to Section 3 residents and Section 3 business concerns when new hiring and contracting opportunities arise.

More information about Section 3 can be found at www.hud.gov.

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Purpose of Today’s Workshop

• The purpose of the workshop is to educate businesses about Section 3, how to become a Section 3 business and upcoming contracting opportunities under the PGRP.

• To focus on providing information and resources for business entities who may be interested in the Port of Gulfport Restoration procurement opportunities.

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Agenda

• Introductions, Housekeeping• Port of Gulfport Restoration Project Overview• Section 3 Overview• Resources for businesses• Questions• Networking

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What is the Port of Gulfport Restoration Program?

The Mississippi State Port Authority at Gulfport (MSPA) is in the process of restoring and rebuilding its facilities that were damaged by Hurricane Katrina.

This project, called the Port of Gulfport Restoration Program (PGRP), received $570 million in Community Development Block Grant Funds from the U.S. Department of Housing and Urban Development (HUD).

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PGRP Objectives

Some objectives of the PGRP are:

– Create new jobs, generating wages and state and local tax dollars

– Enhance future growth opportunities/economic catalyst for Mississippi

– Rebuild and restore the Port of Gulfport to its previously permitted footprint

– Offer protection from future storm damage

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Mississippi State Port Authority at Gulfport

– Mississippi’s State Port – Enterprise Agency (self supporting, not state

funded) – 295 acres - 6,000 linear feet of berths– Mobile harbor cranes; roll-on, roll-off; and self

unloading capability– Bulk, break-bulk and container cargo

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Mississippi State Port Authority at Gulfport

- Two million tons of cargo per year- 209,665 TEUs per year (TEU = twenty-

foot equivalent unit)- 3rd busiest container port on U.S. Gulf

of Mexico - One of largest importers of green fruit

in U.S. - Current tenants include: Crowley,

Dole, DuPont, Gulf Coast Shipyard Group, EN Bisso, Ports America and the Island View Casino Resort

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Conceptual Illustration of Port of Gulfport after Restoration

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Aerial View of the Port of Gulfport

5M tons of fill1,000 miles PVD

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Section 3 Background

• HUD funds are one of the largest sources of federal investments in distressed communities.

• These funds typically result in new employment, training and contract opportunities.

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What is Section 3?

HUD’s Section 3 program requires that recipients of certain HUD financial assistance to the greatest extent feasible provide job training, employment, and contract opportunities for low or very-low income residents in connection with projects and activities in their neighborhoods.

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Section 3 Covered Projects

• The construction or rehabilitation of housing (including reduction of lead-based paint

hazards).

• Other public construction such as the PGRP.

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Applicability

• Section 3 requirements apply to the entire project or activity, regardless of whether it is partially or fully funded.

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Section 3

- Section 3 applies to the PGRP because of the expenditure of HUD funds on public construction

- Section 3 differs from Minority Business Enterprise/ Women Owned Business Enterprise

- Section 3 preferences focus on household income and location

- Section 3 preferences are race and gender neutral

Reference:

www.hud.gov/offices/fheo/section3/FAQ08.pdf

12 U.S.C. §1701 and 24 CFR Part 135.515

PGRP Section 3 Goals

• 10% of the value of construction contracts awarded to Section 3 contractors or sub-contractors.

• 3% of the value of non-construction contracts awarded to Section 3 contractors or sub-contractors.

• 30% of New Full-time hires(FTE’s) are Section 3 individuals.

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Section 3 Opportunities

What Section 3 opportunities are available through the PGRP?

- Contracts

- Employment

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- PGRP must make available to low and very low income “Section 3 Residents” jobs and contracting opportunities

- MSA/Project Area:

Harrison, Hancock and Jackson counties

PGRP MSA/Project Area

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Ways to qualify as a Section 3 Business Concern:

- Contractor’s firm is 51 percent or more owned by Section 3 residents.

- Contractor’s permanent, full-time employees include persons, at least 30 percent of whom are currently Section 3 residents, or within three years of the date of their first employment with the business were Section 3 residents.

- Contractor commits to subcontract in excess of 25 percent of the dollar amount of all subcontracts to be awarded by the business under the proposed contract to Section 3 businesses that meet ONE of the above criteria.

What is a Section 3 Business?

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Steps of the Section 3 Certification Process:- Complete Section 3 Business Concern Certification form

- Complete necessary documentation to support status* as a Section 3 business (i.e. necessary number of Section 3 Resident Certifications; necessary corporate documentation, etc.

* Note: the documentation necessary to support Section 3 status is dependent upon on how specifically a business certifies as a Section 3 business ( i.e. % Section 3 residents employed, corporate ownership, etc.

- Submit all completed documentation to MSPA Director of Compliance Officer and Corporate Responsibility for evaluation.

HUD Section 3 Business Concern – Certification Process

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Refer to your handouts

- Complete Section 3 Business Concern Certification form

- Submit original to MSPA Compliance Officer for assessment, or submit as part of procurement proposal/bid package

HUD Section 3 Business Concern – Certification Process

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- Even if you submit documents to the MSPA Director of Compliance and Corporate Responsibility for review, you must still submit all required forms and supporting documentation as part of your procurement proposal/bid package

- Each procurement is independent, so you will need to submit all required forms and supporting documentation every time you submit a procurement proposal/bid package

HUD Section 3 Business Concern – Certification Process

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An example from our bid packages:Demonstrate commitment to the achievement of the

PGRP Section 3 goalsAll bidders are required to demonstrate commitment to the achievement of the PGRP Section 3 goals in one of the following two ways:

• (1) A bidder must certify as a Section 3 business concern; OR• (2) A bidder must provide a Section 3 plan detailing how the bidder will meet the

required Section 3 subcontracting goal of providing subcontracting opportunities to Section 3 business concerns in an amount not less than 10% of the total contract amount. In the subcontracting plan, the bidder should include the necessary number of Section 3 business subcontractors to meet or exceed the goal for this contract. The plan should also clearly state the total dollar value that will be self-performed and the total dollar value which will be subcontracted to Section 3 Business Concerns; providing for each listed Section 3 Business Concern a fully completed Section 3 Business Certification form including the company name, address, contact person, telephone number, and e- mail address; the amount to be performed/subcontracted; the scope of work to be performed; and the anticipated timeframe for performance of the work.

• If a bid is submitted without satisfying one of the two requirements set forth above, then that bid will be deemed non-responsive and rejected.

Section 3 Resident Certification Process

• Refer to handouts for 2015 Section 3 Resident Certification forms

– Individual completes form for the county where they reside and gives it to business

– Can qualify if “low income” or ”very low income” currently or was within the first three years of employment with business.

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HUD Section 3 – Hiring Information

- Section 3 Residents are considered first in hiring processes (for equally qualified)

- All PGRP contractors and subcontractors post new positions with the Mississippi Department of Employment Security Commission’s WIN Job Centers

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Bid Preferences- Section 3

• This project is covered by the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1701u) (“Section 3”).

• Section 3 requires that when employment or contracting opportunities are generated by HUD-funded projects, preference is given to low-income persons and businesses residing in the community where the project is located.

• Therefore, Section 3 businesses are encouraged to submit a bid as preference will be given for Section 3 businesses if all other requirements are met. A bidder selected for this Project will be responsible for ensuring compliance with Section 3 requirements including, but not limited to, the hiring and contracting decisions made on the Project.

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Section 3 Preference at Work

How does Section Preference 3 work? Here’s an example:

- XYZ Construction, a qualified, responsible bidder, submitted a $15 million construction proposal (within budget)

- XYZ Construction has 50 employees, 25 of whom are Section 3 residents (their annual household income is considered low or very low under HUD guidelines)

- XYZ Construction is certified as a Section 3 business

- XYZ Construction will receive a preference

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Requirements for a Businesses working on the PGRP:

- Record-keeping

- Reporting

- Section 3 plans

- Community outreach

HUD Section 3 Business Concern – Requirements

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Record-keeping:

- Employee rosters with date of hire

- Section 3 resident certification forms

- Maintain an interview log through hiring processes

- Community outreach efforts to connect with Section 3 residents and businesses

- Company documentation

HUD Section 3 Business Concern – Requirements

Note: It is the Policy of the Port of Gulfport Restoration Program that records with personal information shall remain in a secured, locked location. 29

Reporting – monthly reports of:

- All hiring

- All subcontracting opportunities

- All outreach activity

- If you are unable to hire or contract with Section 3 residents or businesses, then provide a written explanation as to why you could not do so.

HUD Section 3 Business Concern – Requirements

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Section 3 – Community Outreach As a Section 3 Business Concern, what are ways that I can reach out to the community for new hires and contracts?

- The PGRP will offer contractor events and job fairs at which Section 3 Business Concerns can participate

- Contact organizations such as community centers, employment agencies, churches, non profits and housing developments

- Place ads in local newspapers

- Post signs and distribute flyers in the community

- See your handouts for comprehensive list of outreach effort ideas

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Consequences of Non-Compliance with Section 3 Requirements

• Noncompliance with Section 3 requirements may result in:

• Delay in payments• Sanctions• Termination of contract for default• Debarment, and • Suspension from future HUD

contracts

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- The MSPA is building a database of companies who are likely to qualify and/or have previously qualified as Section 3 Business Concerns

- The MSPA Director of Compliance and Corporate Responsibility will distribute these lists to current Port contractors

- The MSPA will also distribute these lists to companies that have requested procurement packages/bid solicitations

- Additionally, the MSPA will distribute this information to the SMCPC, Small Business Administration and entities subject to HUD Section 3 requirements in this region

HUD Section 3 Business Concerns

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Licensing

• You business must hold a current Mississippi State Contractor’s License at the time of your bid submission.

• To get licensed in Mississippi contact:– info@msboc.us– or call 601-354-6161 or (800)880-6161.

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What is the Pathways to the Port Jobs Program?

Pathways to the Port Jobs Program is the PGRP’s centralized process for job placement and workforce training geared toward long-term workforce employment.

- NOW: Pathways is being used to connect the local workforce with job opportunities generated as a direct result of current expenditures of Section 3 covered funds.

- IN THE FUTURE: Pathways will be used to connect the local workforce with training and job opportunities that will be created as the Port finishes various stages or restoration.

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What happens if I am successful in winning a contract?

If you are a successful contractor or sub-contractor:– We will meet with you to do an orientation to get

you started off the right foot with hiring, record-keeping, etc.

– We will provide on-going technical assistance regarding Section 3, etc.

– We will be doing periodic monitoring and providing feedback as to how you are meeting your goals and recordkeeping requirements.

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Future PGPR Construction Projects

• Water Tank

• Security Gate

• Port Landscaping

• Port Operations Building

• West Pier Site Work and Infrastructure, Phase 2

• West Pier Site Work and Infrastructure, Phase 3

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Questions

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Future Outreach Workshops

Next Section 3 Business Outreach workshop:

June 2015 - Gulfport, MSDate, location - TBD

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How can I keep informed about the Port and Restoration work?

South Mississippi Contract Procurement Center distributes

Legal notices/ads in the Sun Herald

PortoftheFuture.com Home and Procurement web pages

PortoftheFuture.com email/e-blast

Facebook

Twitter

Construction plan rooms

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HUD Section 3 Business Concern Certification

Questions?

For more information, or for one-on-one assistance, please contact:

Mel Arsenault, Director of Compliance and Corporate Responsibility Officer

Mississippi State Port Authority

marsenault@shipmspa.com

228-865-4300

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