The Kansas City Kansas encourages minority, woman owned, and certified Section 3 businesses to perform work for the Housing Authority. If interested see below for contractor training opportunities.

DEFINITIONS:

WHAT IS SECTION 3?

Section 3 is a provision of the Housing and Urban Development Act of 1968. Section 3 is intended to ensure that when employment or contracting opportunities are generated because a covered project or activity necessitates the employment of additional persons or the awarding of contracts for work, preferences must be given to low- and very low-income persons or business concerns residing in the community where the project is located.

SECTION 3 RESIDENT: Public Housing Resident OR a low-income or very low-income resident of the metropolitan area or non-metropolitan county in which the Section 3 covered assistance is expended.

SECTION 3 BUSINESS CONCERN IS:

• A business that is 51% or more owned by Section 3 residents; OR
• A business that has 30% or more of its permanent, full-time employees are Section 3 residents; OR
• A business that employs 25%or more of the contract amount to subcontractors that are certified Section 3 businesses (as defined above.)

SECTION 3 IS BOTH RACE AND GENDER NEUTRAL. The preferences provided under this regulation are based on income-level and location. The Section 3 regulations were designed to encourage recipients of HUD funding to direct new employment and contracting opportunities to low- and very low-income persons residing the in the community and the business that employ these persons within their community regardless of race and/or gender.

The Kansas City Kansas Housing Authority has adopted a preference for Section 3 certified business in its sealed bidding of construction contracts. To be eligible for the preference business concerns must meet the following requirements.

ELIGIBILITY REQUIREMENTS FOR SECTION 3 "X-FACTOR PREFERENCE

To receive preference under Section 3, all business concerns must present Section 3 certification or documentation verifying such status in their sealed bid packet. KCKHA will honor documented certification provided by any metropolitan area municipality or contracting association.

The Section 3 Business Concerns bid, includes all required information and document submissions required to determine it a responsible and responsive bid.

The X-Factor applies to procurement by sealed bids. Award can be made to certified Section 3 business concerns, IF their bid is:

1. Within the project budget AND
2. Not more than "X" percent higher than the total bid price of the lowest responsive bid from any responsible bidder.

X-Factor Schedule

X-lesser of:

When the lowest responsive bid is:

>$100K, but <$200K 9% of that bid or $16K

>$200K, but <$300K 8% of that bid or $21K

>$300K, but <$400K 7% of that bid or $24K

>$400K, but <$500K 6% of that bid or $25K

>$500K, but <$1M 5% of that bid or $40K

>$1M, but <$2M 4% of that bid or $60K

>$2M, but <$4M 3% of that bid or $80K

>$4M, but <$7M 2% of that bid or $105K

>$7M, or more 1 ½% of the lowest bid, with no dollar limit