This provides an example of one employment preference provision for Indians and is not to be considered as the only acceptable type of provision.
The Instructions to Bidding could include a provision such as the following:
"Employment Preference to Local Indian Residents
The attention of bidders is directed to Section of the
Special Conditions which, in accordance with established
employment practices of the Local Authority, and as per-
mitted in Section 703(1) of Title VII of the Civil Rights
Act of 1964, requires the Contractor and each of his sub-
contractors to give preference in the hiring of workers
for the project to qualified Indians living on or near the
reservation. A list furnished by the
tribal Housing Authority setting out laborers and
mechanics entitled to such preference, together with the
trades or skills represented, will be furnished to all
bidders by the
In line with the foregoing, the Special Conditions of the construction contract would include a provision such as the following:
"Employment Preference to Local Residents
The Contractor and each of his subcontractors shall give
preference in the hiring of workers for the project to
qualified local Indian residents. The term "local Indian
residents" means Indians living on or near the reservation
whose names appear on a List furnished to the Contractor
by the
Housing Authority. Upon initial
hiring and whenever a job opening occurs thereafter, the
Contractor or subcontractor shall give written notice of
such opening to the President of the Tribal Council of
the
Tribe, stating the time when, and the
local place where, job applications will be accepted.
Except in cases of emergency, no one other than a local
Indian resident shall be hired for any job until 48 hours
(not counting Saturdays and Sundays) following the delivery
of such notice to the President. The Contractor or sub-
for valid reason, or to terminate the employment, of any
local Indian resident, but in either such event, the Con-
tractor or subcontractor shall within three days send a
written statement of the reasons for such action to the
President of the
Tribe. Nothing contained
herein shall require the displacement of a non-Indian
employee because a local Indian resident becomes available
after such employee had been hired for the project"
U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
ATTENTION: REGIONAL OFFICE: ARA-HPMC; Low
Rent Housing Specialist
AREA OFFICE: Director Operations
Division; Program Managers; Multi-
family Housing Representatives;
Chief, Technical Services Branch
Expediting Construction of Mutual-Help Projects in SUBJECT: Indian Areas
PURPOSE. To expedite the development of housing in Indian areas
and provide a better control on costs by limiting the development
of mutual-help housing to the bid or turnkey method, and eliminating
the force account method of development, to reduce the minimum
required amount of mutual-help contributions and to supersede
and revise Circular HPMC-FHA 7580.2 dated February 26, 1971.
An October 12, 1971 report by the General Accounting Office
entitled "Slow Progress In Eliminating Substandard Indian
Housing" (B-114868) points up that the average construction
time for mutual-help projects developed under the force account
method is considerably longer than for mutual-help and other
public housing projects of larger size which are developed
under the turnkey and competitively bid methods of development.
The report also states that the longer construction periods
and smaller size projects are detrimental to the goal of
eliminating substandard Indian housing conditions in the 1970's
and, further, that such longer periods result in increased
costs to the Federal government for construction supervision,
overhead, and materials damages and losses.
b. The complete or partial construction of a mutual-help project
by the force account method generally involves the provision by
the Bureau of Indian Affairs of a construction superintendent.
However, the use of developers or contractors who are respon-
sible to the Indian housing authority (rather than the use of
federal construction superintendents) for the construction of
HUD-assisted low-rent public housing projects is consistent
with (1) current HUD policy for the public housing program
generally, (2) current efforts to limit the level of federal
employment, (3) the recommendations of the above mentioned
October 12, 1971 report of the General Accounting Office, (4)
the provisions of Section 1 of the U. S. Housing Act, as
amended, providing for maximum local responsibility in the
administration of the low-rent public housing program, and
DISTRIBUTION : 0-1, W-3-1, R-1,R-2,R-5, R-3-2,
(5) the current federal policy of developing the capabilities of Indian governments and investing them with the maximum responsibility and control over the operation of federally assisted programs on their reservations.
a. Every effort should be made to expedite the completion of mutualhelp projects now under construction, including the adjustment of development cost budgets where necessary to provide for additional paid labor and additional materials needed for expeditious completion of construction. Such adjustments should involve a decrease in the amount of mutual-help contribution (but not to less than $1,500 per unit) where the total amount previously provided for such contribution would no longer be justified as the result of the increased use of paid labor or labor saving materials.
b. Mutual-help housing units hereafter placed under annual contributions contract and such units now under annual contributions contract but not yet under construction should not be developed (either partially or entirely) under the force account method. Current development cost budgets and mutual-help contribution amounts may be adjusted as described in paragraph 3a above to accommodate the use of other than the force account method of development.
No further development programs or annual contributions contracts
for mutual-help housing projects are to be approved involving
complete or partial development under the force account method.
Such development programs must provide for a mutual-help contri-
bution of at least $1,500 per unit. However, advertisements
for bids or turnkey proposals for mutual-help housing should
seek to achieve the highest possible amount of mutual help
contribution.
The provisions of this Circular are not to be construed as requiring the termination of existing annual contributions contracts for mutual-help housing projects or portions thereof which are not yet under construction. However, this caveat does not preclude the termination of such contracts where the local housing authority is found to be failing to meet its
contractural obligations to HUD by not proceeding diligently or on a timely basis with the development of the housing.
4. ANNUAL CONTRIBUTION CONTRACT WAIVERS. In line with the provisions of paragraph 3 of this Circular, HUD Area Directors may waive the following annual contributions contract provisions with respect to projects now or hereafter placed under such contracts:
a. The 90 percent limitation on loans contained in Section 7 of Part One of the Annual Contributions Contract for Mutual-Help Projects, Form HUD-53040.
b. The 10 percent minimum required Mutual-Help Contribution provisions of Sections 203(C) and 406(D) of Part Two of the Annual Contributions Contract for Mutual-Help Projects, Form HUD-53041.
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