[Code of Federal Regulations]

[Title 24, Volume 4]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR1003.510]



[Page 795-797]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 

               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 1003_COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND ALASKA 

NATIVE VILLAGES--Table of Contents

 

                     Subpart F_Grant Administration

 

Sec.  1003.510  Indian preference requirements.



    (a) Applicability. HUD has determined that grants under this part 

are subject to Section 7(b) of the Indian Self-Determination and 

Education Assistance Act (25 U.S.C. 450b). Section 7(b) provides that 

any contract, subcontract, grant or subgrant pursuant to an act 

authorizing grants to Indian organizations or for the benefit of Indians 

shall require that, to the greatest extent feasible:

    (1) Preference and opportunities for training and employment shall 

be given to Indians; and

    (2) Preference in the award of contracts and subcontracts shall be 

given to Indian organizations and Indian-owned economic enterprises as 

defined in section 3 of the Indian Financing Act of 1974 (25 U.S.C. 

1452).

    (b) Definitions. (1) The Indian Self-Determination and Education 

Assistance Act [25 U.S.C. 450b] defines ``Indian'' to mean a person who 

is a member of an Indian tribe and defines ``Indian tribe'' to mean any 

Indian tribe, band, nation, or other organized group or community 

including any Alaska native village or regional or village corporation 

as defined or established pursuant to the Alaska Native Claims 

Settlement Act, which is recognized as eligible for the special programs 

and services provided by the United States to Indians because of their 

status as Indians.

    (2) In section 3 of the Indian Financing Act of 1974 (25 U.S.C. 

1452) economic enterprise is defined as any Indian--owned commercial, 

industrial, or business activity established or organized for the 

purpose of profit, except that Indian ownership must constitute not less 

than 51 percent of the enterprise. This act defines Indian organization 

to mean the governing body of any Indian tribe or entity established or 

recognized by such governing body.

    (c) Preference in administration of grant. To the greatest extent 

feasible, preference and opportunities for training and employment in 

connection with the administration of grants awarded under this part 

shall be given to Indians.

    (d) Preference in contracting. To the greatest extent feasible, 

grantees shall give preference in the award of contracts for projects 

funded under this part to Indian organizations and Indian-owned economic 

enterprises.

    (1) Each grantee shall:



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    (i) Advertise for bids or proposals limited to qualified Indian 

organizations and Indian-owned enterprises; or

    (ii) Use a two-stage preference procedure, as follows:

    (A) Stage 1. Invite or otherwise solicit Indian-owned economic 

enterprises to submit a statement of intent to respond to a bid 

announcement or request for proposals limited to Indian-owned firms.

    (B) Stage 2. If responses are received from more than one Indian 

enterprise found to be qualified, advertise for bids or proposals 

limited to Indian organizations and Indian-owned economic enterprises; 

or

    (iii) Develop, subject to Area ONAP one-time approval, the grantee's 

own method of providing preference.

    (2) If the grantee selects a method of providing preference that 

results in fewer than two responsible qualified organizations or 

enterprises submitting a statement of intent, a bid or a proposal to 

perform the contract at a reasonable cost, then the grantee shall:

    (i) Re-advertise the contract, using any of the methods described in 

paragraph (d)(1) of this section; or

    (ii) Re-advertise the contract without limiting the advertisement 

for bids or proposals to Indian organizations and Indian-owned economic 

enterprises; or

    (iii) If one approvable bid or proposal is received, request Area 

ONAP review and approval of the proposed contract and related 

procurement documents, in accordance with 24 CFR 85.36, in order to 

award the contract to the single bidder or offeror.

    (3) Procurements that are within the dollar limitations established 

for small purchases under 24 CFR 85.36 need not follow the formal bid or 

proposal procedures of paragraph (d) of this section, since these 

procurements are governed by the small purchase procedures of 24 CFR 

85.36. However, a grantee's small purchase procurement shall, to the 

greatest extent feasible, provide Indian preference in the award of 

contracts.

    (4) All preferences shall be publicly announced in the advertisement 

and bidding or proposal solicitation documents and the bidding and 

proposal documents.

    (5) A grantee, at its discretion, may require information of 

prospective contractors seeking to qualify as Indian organizations or 

Indian-owned economic enterprises. Grantees may require prospective 

contractors to include the following information prior to submitting a 

bid or proposal, or at the time of submission:

    (i) Evidence showing fully the extent of Indian ownership and 

interest;

    (ii) Evidence of structure, management and financing affecting the 

Indian character of the enterprise, including major subcontracts and 

purchase agreements; materials or equipment supply arrangements; and 

management salary or profit-sharing arrangements; and evidence showing 

the effect of these on the extent of Indian ownership and interest; and

    (iii) Evidence sufficient to demonstrate to the satisfaction of the 

grantee that the prospective contractor has the technical, 

administrative, and financial capability to perform contract work of the 

size and type involved.

    (6) The grantee shall incorporate the following clause (referred to 

as the Section 7(b) clause) in each contract awarded in connection with 

a project funded under this part:

    (i) The work to be performed under this contract is on a project 

subject to Section 7(b) of the Indian Self-Determination and Education 

Assistance Act (25 U.S.C. 450b) (Indian Act). Section 7(b) requires that 

to the greatest extent feasible:

    (A) Preferences and opportunities for training and employment shall 

be given to Indians; and

    (B) Preferences in the award of contracts and subcontracts shall be 

given to Indian organizations and Indian-owned economic enterprises.

    (ii) The parties to this contract shall comply with the provisions 

of Section 7(b) of the Indian Act.

    (iii) In connection with this contract, the contractor shall, to the 

greatest extent feasible, give preference in the award of any 

subcontracts to Indian organizations and Indian-owned economic 

enterprises, and preferences and opportunities for training and 

employment to Indians.

    (iv) The contractor shall include this Section 7(b) clause in every 

subcontract in connection with the



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project, and shall, at the direction of the grantee, take appropriate 

action pursuant to the subcontract upon a finding by the grantee or HUD 

that the subcontractor has violated the Section 7(b) clause of the 

Indian Act.

    (e) Complaint procedures. The following complaint procedures are 

applicable to complaints arising out of any of the methods of providing 

for Indian preference contained in this part, including alternate 

methods enacted and approved in a manner described in this section:

    (1) Each complaint shall be in writing, signed, and filed with the 

grantee.

    (2) A complaint must be filed with the grantee no later than 20 

calendar days from the date of the action (or omission) upon which the 

complaint is based.

    (3) Upon receipt of a complaint, the grantee shall promptly stamp 

the date and time of receipt upon the complaint, and immediately 

acknowledge its receipt.

    (4) Within 20 calendar days of receipt of a complaint, the grantee 

shall either meet, or communicate by mail or telephone, with the 

complainant in an effort to resolve the matter. The grantee shall make a 

determination on a complaint and notify the complainant, in writing, 

within 30 calendar days of the submittal of the complaint to the 

grantee. The decision of the grantee shall constitute final 

administrative action on the complaint.



(Approved by the Office of Management and Budget under control number 

2577-0191)