[FoCHAT] CHAT: Hiring a Collection Company To Make Applicants Repay
Road Home Money, The Bid Solicitation
Melanie Ehrlich
mehrlich8 at yahoo.com
Sun Mar 30 22:15:57 PDT 2008
Dear Concerned Citizen,
Some background information to the recent AP story that some you may have seen.
The solicitation for subcontractor bids was freely available to the public at the road2la.org site when I found it on Tues. It led to this story. The solicitation has subsequently been made inaccessible to the general public by the introduction of a barrier page which must be filled out by companies that want to place bids in order to see solications.
I copied the solicitation before it was made unavailable. I append it below the story.
I received evidence that indeed one class of applicants who are being asked to pay back money to the Road Home are applicants who tried to appeal shortchanged grants and instead were subject to special scrutiny by ICF for possible overpayments. Note that according to a report from ICF, 9% of those who appeal underpayments are found to owe for "overpayments."
When I first read the title of this solicitation for bids, I had hoped that it was for paying applicants who had underpayments. This includes more than 3000 who managed to win their appeals but have not yet had their second closing. Then, I read how wrong I was in my assumption.
It is, of course, justified for Road Home to require paybacks for misrepresentation or fraud by applicants and for applicants receiving additional insurance benefits for structural damage after closing and not reporting those benefits (duplication of benefits are not allowed by federal rules).
The problems with all other demanded paybacks of overpayment include the following:
the fact that applicants had the right to assume that their grant determinations were accurate especially given the high price of this application processing (approximately $6000 per grant),
the unprecedented nature of the disaster that all the applicants experienced,
the complexity of the rules for grant determination,
inadequate Road Home documentation of pre-storm value and estimated cost of damage
the long amount of time from the disaster until applicants have received these grants to help them with repairing or rebuilding their homes,
the inadequacy of the amount of the grants for most applicants to cover those repair/rebuilding costs,
the difficulty that applicants have had in trying to get explanations of their award amounts from ICF,
unequal treatment of application processing because of changing and vague rules,
and the additional scrutiny by ICF given to those in appeal of shortchanging mistakes so as to try to find "overpayments." Two top RH officials told me on separate occasions that applicants should be wary of appealing their grants because many have their grants cut as a result. This amounts to a "chilling effect" or indirect persuasion to just accept the grant amount however low.
This chilling effect (discouraging appeals) extends to the new rule that if an applicant wants a Road Home elevation incentive, they cannot be in appeals. The reason given by OCD is that being in appeals would interfere with determination of the amount for the elevation incentive. However, that is an insupportable argument because, while there is a $150,000 cap of elevation incentive plus grant award, the appeals determination could be made by just including the elevation incentive to make sure the applicant does not receive more than $150,000 of RH funds.
Best wishes,
Melanie Ehrlich
Co-Chairman, CHAT
Member, LRA Housing Task Force
The Article
http://news.yahoo.com/s/ap/20080329/ap_on_re_us/katrina_collections
Katrina victims may have to repay money By JOHN MORENO GONZALES, Associated Press Writer
Sat Mar 29, 7:23 PM ET
NEW ORLEANS - Imagine that your home was reduced to mold-covered wood framing by Hurricane Katrina.
Desperate for money to rebuild, you engage in a frustrating bureaucratic process, and after months of living in a government-provided trailer that gives off formaldehyde fumes you finally win a federal grant.
Then a collector announces that you have to pay back thousands of dollars.
Thousands of Katrina victims may be in that situation.
A private contractor under investigation for the compensation it received to run the Road Home grant program for Katrina victims says that in the rush to deliver aid to homeowners in need some people got too much. Now it wants to hire a separate company to collect millions in grant overpayments.
The contractor, ICF International of Fairfax, Va., revealed the extent of the overpayments when it issued a March 11 request for bids from companies willing to handle "approximately 1,000 to 5,000 cases that will necessitate collection effort."
The bid invitation said: "The average amount to be collected is estimated to be approximately $35,000, but in some cases may be as high as $100,000 to $150,000."
The biggest grant amount allowed by the Road Home program is $150,000, so ICF believes it paid some recipients the maximum when they should not have received a penny. If ICF's highest estimate of 5,000 collection cases — overpaid by an average of $35,000 — proves to be true, that means applicants will have to pay back a total of $175 million.
One-third of qualified applicants for Road Home help had yet to receive any rebuilding check as of this past week. The program, which has come to symbolize the lurching Katrina recovery effort, has $11 billion in federal funds.
ICF spokeswoman Gentry Brann said in an e-mail Friday that the overpayments are the inevitable result of the Road Home grant being recalculated to account for insurance money and government aid given to Katrina victims.
Brann said there was a sense of urgency in paying Road Home applicants, and ICF knew applicants would have to return some money.
"The choice was either to process grants immediately or wait until the March 2008 deadline (for submitting Road Home applications) before disbursing any funds," Brann said in her e-mail.
Brann pointed out that 5,000 collections cases would represent a 4-percent error rate for the Road Home that is "quite good for large federal programs."
Frank Silvestri, co-chair of the Citizen's Road Home Action Team, a group that formed out of frustrations with ICF, sees it far differently.
"They want people to pay for their incompetence and their mistakes. What they need to be is aggressive about finding the underpayments," he said. "People relied, to their detriment, on their (ICFs) expertise and rebuilt their houses and now they want to squeeze this money back out of them."
The prospect of Road Home grant collections comes less than two weeks after the Louisiana inspector general and the legislative auditor said they were investigating why former Gov. Kathleen Blanco paid ICF an extra $156 million in her waning days in office to administer the program. With the increase, ICF stands to earn $912 million to run Road Home, a contract that also sweetened its initial public stock offering, and helped it buy out four other companies. It now reaches into government contracting sectors that include national defense and the environment.
Paul Rainwater, executive director of the Louisiana Recovery Authority, the state body that asked for the Blanco-ICF investigations, acknowledged the collections could be painful for applicants, many of whom have used up their nest eggs to rebuild.
"The state must walk a fine line of treating homeowners who have been overpaid with fairness and compassion and ensuring that all federal funds are used for their intended purpose," said Rainwater, an appointee of new Gov. Bobby Jindal.
Upon receiving money from Road Home, grantees sign forms that say they must refund any overpayments.
Melanie Ehrlich, co-chair of Citizen's Road Home Action Team, which has documented Road Home cases that appear littered with mistakes, said she had no confidence that ICF had correctly calculated overpayments. She charged that the company was more likely using collections as retribution against people who had appealed their award amounts in effort to get the aid they deserved.
"I think they are looking for ways to decrease awards and that's part of dissuading people," she said.
Brann said applicants are told an appeal could boost or diminish their award. She called Ehrlich's charge "a totally unfounded assertion."
The Solicitation For Bids.
I have highlighted sections of particular interest.
Request For Proposal: Fund Repayment Services for The Road Home Program The Road Home program seeks subcontractor support for Fund Repayment Services.
Proposals must be received on or before 4:30pm CST, Monday, March 25, 2008.
Download The Road Home Program Request for Proposal - Fund Repayment Services (PDF/242k)
March 11, 2008
Request for Proposal
The Road Home Program – Fund Repayment Services
ICF Emergency Management Services, LLC (ICF) is under contract with the State of Louisiana Office of Community Development to administer The Road Home Program. ICF is issuing this Request for Proposal (RFP), available at http://www.road2la.org/partnership/default.asp, to solicit subcontractor support for Fund Repayment Services.
Proposals are sought from firms with the experience and qualification to conduct collection services. The Statement of Work for this project is provided in Exhibit A. Exhibit B is a standard bidder’s form to be completed and submitted with a proposal. Exhibit C provides standard contract terms and conditions and Exhibit D indicates the drug screen and background check requirements for the successful bidder.
1. INSTRUCTIONS FOR SUBMITTING PROPOSALS
Address
Bidders may submit proposals by email, mail, or hand-delivered copy. If submitting by mail or hand- delivered, please provide two copies of your proposal to the following address:
Mr. Donald H. Blaise Senior Manager of Contracts ICF Emergency Management Systems, LLC 8282 Goodwood Boulevard Baton Rouge, Louisiana 70806
Alternatively, you may e-mail you proposal to DBlaise at icfi.com. Large electronic files must be submitted as .pdf or zip files.
Bidders Conference
A bidder’s conference will be held on Thursday, March 20, at 8282 Goodwood Blvd, Baton Rouge, LA, at 10:00 a.m. It will provide the best venue for any questions or concerns one might have regarding this RFP. For those planning to attend, you must RSVP by Monday March 17th by contacting Dan Gunnells by email at dgunnells at icfi.com. Because of parking and space limitations conference participants are limited to one person per bidding firm.
Deadline
Proposals must be received on or before 4:30 pm Central Time, Monday, March 25, 2008.
Late proposals can not be accepted.
Questions
Questions concerning this RFP must be directed via e-mail to the attention of Don Blaise at DBlaise at icfi.com by no later than March 7, 2008. Answers to the questions will be posted to
RFP – Fund Repayment Services Page 1 of 25 March 11, 2008
http://www.road2la.org/partnership/default.asp.
Proposal Terms
ICF reserves the right to reject any and all proposals received. Each firm submitting a proposal in response to this solicitation is responsible for all costs associated with their proposal. ICF will not reimburse or pay any expenses or costs associated with this solicitation.
Location of Services
It is anticipated that the subcontractor will perform the services being solicited at its current offices, with the requisite office infrastructure provided by the subcontractor, such as telephones, computers, furniture, meeting room(s), copying, mail, a case tracking tool, etc. However, ICF is open to considering proposals that may indicate a preference or need to co-locate with Road Home personnel in one of our offices, such as our project headquarters at 8282 Goodwood Boulevard in Baton Rouge.
Contents
Proposals must be submitted in two separate volumes: Technical and Cost.
Volume 1: Technical Proposal
This volume must include the following information, in no more than 25, 8 ½ by 11 inch pages (excluding the Bidders Information Form and resumes):
• Basic bidder information: see Appendix B for the Bidder Information Form.
• Narrative description of your firm that includes you firm’s experience and the experience of any subcontractors and vendors to perform services similar to those required by this RFP. Highlight experience working in Louisiana and under State or Federal government contracts. Three references of prior or ongoing work that is relevant to this RFP must be provided for potential contact by ICF. This section must demonstrate the bidder’s experience collecting funds in a manner consistent with the Federal Fair Debt Collection Practices Act (FDCPA) 15 U.S.C. §§ 1692-1692 p.
• The key staff that will manage the work under this contract, their experience, and why they are qualified to perform the work requested in the RFP. (Key staff includes those with management and supervisory responsibility.) This section should include an organization chart. In this section also include what commitments you and/or any subcontractors will make to utilize Louisiana residents to work on this project. Provide complete resumes of your key staff and the key staff of any subcontractors and vendors as an attachment to your proposal.
• A technical approach that describes how you plan to accomplish the tasks required by the RFP, as indicated in Exhibit A. Include in this section the proposed methods for managing individual cases and reporting the status of cases to ICF.
• A management plan that describes how you will manage the work specified in this RFP. Include in this section, if you have not done so elsewhere in the proposal, an organization chart for the project. This section also should include a discussion of how you will ensure sufficient
RFP – Fund Repayment Services Page 2 of 25 March 11, 2008
management and staffing, training of staff, scheduling the work, tracking and reporting results, and monitoring the quality and performance of the staff performing services. Indicate the location of where the services would be expected to be performed.
• A statement regarding the adequacy of your firm’s financial capacity to perform the Statement of Work.
• A narrative indicating any proposed exceptions to the terms and conditions contained in the sample subcontract in Attachment C: Basic Subcontract Agreement and/or the requirements of Attachment D: Drug Screen & Background Check Requirements.
• Proof of license as a Louisiana Collection Agency.
Volume 2: Cost Proposal
The cost proposal does not have a page limit and must be valid for 90 calendar days from the due date of this RFP. ICF intends to award this contract as a Basic Ordering Agreement with multiple task assignments to be issued as Time & Materials task orders, or, as a percentage of the collected debt. You asked to propose both methods.
The cost proposal must include:
Time & material pricing
• The labor categories proposed (with proposed key staff mapped to the labor categories).
• The hourly rate proposed for each labor category, inclusive of fringe benefits, overhead, general & administrative, and fee.
• Any proposed change in hourly rates that may apply for overtime incurred.
• Any and all other direct costs, to be reimbursed at cost, with no loading of general & administrative or fee.
• Total costs for the period from April 1, 2008 through June 11, 2009, based on an assumed level of effort of ten full-time equivalent and dedicated subcontractor personnel, at an estimated 2,000 labor hours each per year, across the proposed labor categories (including both staff and management); period of performance and level of effort are subject to change.
Percentage of the collected debt fee method
• Collection fees showing discounts offered by amount of debt to be collected.
2. SELECTION CRITERIA
It is anticipated that one award will be made for these services. Bidders must meet the Threshold Criteria below. Bidders who meet the Threshold Criteria will then be evaluated based on the Competitive Criteria. Firms considered to be in the competitive range for a potential award may be required to present an oral presentation to ICF as a part of the final selection process. However, ICF reserves the right to make an award without any presentation or discussion with bidders.
Proposals will be evaluated based on the following criteria:
RFP – Fund Repayment Services Page 3 of 25 March 11, 2008
• Threshold Criteria:
�� The bidder must be licensed by the State of Louisiana as required by the Louisiana Collection Agency Regulation Act (R.S. 9:3576.1 et. Seq.) and any proposed subcontractors, as applicable.
�� The bidder must demonstrate experience collecting funds in a manner consistent with the Federal Fair Debt Collection Practices Act (FDCPA) 15 U.S.C. §§ 1692-1692p.
�� The bidder must be capable of providing evidence of sufficient insurance coverage prior to the execution of a subcontract, as specified in Exhibit B.
�� The bidder must not be on the General Service Administration’s list of parties that are excluded from doing business as a Federal contractor or subcontractor.
• Competitive Criteria:
�� Experience of bidder providing similar services 25%
�� Experience of key personnel providing similar services 30%
�� Approach to providing the technical services 15%
�� Management plan 15%
�� Price/Cost 15%
In addition, as permitted by law, preferences will be provided for Louisiana-based businesses; minority firms, women’s business enterprises, and labor surplus area firms; and Section 3 businesses as defined in the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. ICF also is expected to contact the Better Business Bureau and similar organizations for information available on the bidder.
Thank you for your interest in The Road Home Program.
RFP – Fund Repayment Services Page 4 of 25 March 11, 2008
EXHIBIT A
Statement of Work
1. Introduction
The Road Home Program provides financial resources to help residents of Louisiana affected by Hurricanes Katrina and Rita get back into their homes as quickly and fairly as possible. This Program represents the largest single housing recovery program in U.S. history. Working together, the Governor’s office, the Louisiana Recovery Authority, and the Office of Community Development created The Road Home Program to afford eligible homeowners up to $150,000 in compensation.
Road Home applicants may receive grant funds for one of three options:
• Option 1 – Keep their homes
• Option 2 – Sell their home to the State and become an owner of another home in Louisiana
• Option 3 – Sell their home to the State and move out of the State or remain in the State as a renter.
The Road Home Program determines eligibility and calculates benefits for applicants consistent with established Federal and State criteria as well as with written policies and procedures. (See www.Road2LA.org for further information on Road Home policies and procedures.) The calculation of benefits is based on a number of factors, including the pre-storm value of the home, the estimated costs of damages, and the amount of funds received by the applicant from insurance proceeds and other sources such as FEMA.
Because of the combination of a high volume of grants, the Program’s evolving nature and complexity, and the need to accelerate awards in a disaster recovery operation, there can and will be some grant awards that need to be repaid to the State by applicants. In recognition of this possibility, grant recipients sign an Acknowledgment Form that states:
“I understand that if the current grant award that I receive today is determined to be an overpayment, I will refund the overpayment to the State of Louisiana Office of Community Development.”
2. Overview of Project
This RFP seeks the services of a firm to assist in the repayment of Road Home grant funds from certain applicants, such as the following:
�� Paid out to applicants who are later determined by The Road Home to be ineligible to receive awards
�� Overpayment of funds to applicants that are eligible
�� Owed back to the Program because of additional insurance proceeds, FEMA payments, or other benefits received that are a duplication of Road Home benefits
�� Funds provided to the Small Business Administration (SBA) that the SBA cannot return because the applicable loan is closed
�� Owed back to the Program because of the resolution of a case in the appeals process.
RFP – Fund Repayment Services Page 5 of 25 March 11, 2008
Though difficult to estimate at this time, there may be a range of approximately 1,000 to 5,000 cases that will necessitate collection effort (this estimated range is subject to change). The average amount to be collected is estimated to be approximately $35,000, but in some cases may be as high as $100,000 to $150,000 (this estimate also is subject to change). The estimated period of performance for the case load will be from March 1, 2008 through June 11, 2009.
This project is envisioned to require a close working relationship with the contractor and also our client, the State of Louisiana Office of Community Development. To that end, the specific determination of which grant recipients must repay funds and how much they are required to repay will first be made by personnel in our Road Home Grant Recovery Department, not the subcontractor. The subcontractor then is expected to collect the repayments at the direction of The Road Home in a professional, compassionate, and positive manner that takes into account the trauma and hardships experienced during and after the hurricanes by the grant recipients. The role of the subcontractor will differ from other collection services that may not normally get involved in the effort until the organization tries an initial collection effort. The services required for this project will consist of the initial, less formal attempt at collection in addition to the more formal or “legal” approach
if the initial, informal attempt does not work.
Road Home staff will, at a minimum, provide the following information to the subcontractor:
• Name, address, and contact information for the grant recipient
• An explanation of why repayment of the grant is being pursued and the dollar amount
• When the grant was awarded
• A record of any collection attempts that may have already been made by The Road Home
Before proceeding on collection activities, such as described below, the subcontractor is expected to develop comprehensive and detailed procedures that will govern all of its work, including a flowchart of the activities in its collection process. Initial information is available from ICF to start preparing the collection procedures, and the draft procedures will be reviewed and approved both by ICF and our client.
3. Tasks
After the Grant Recovery Department has determined that a grant recipient needs to repay funds, and the amount due, it is expected that the subcontractor will perform the following general tasks, consistent with the detailed procedures to be developed:
• Initiating the repayment process with the grant recipient, including the following kinds of activities:
�� Calling the grant recipient to request repayment;
�� Sending emails to the recipient to explain that funds must be repaid and why;
�� Sending a written notice, via USPS certified mail, to the last known address to request repayment;
�� Coordinating with The Road Home Program and the State on the merits of pursuing legal remedies that may be available to recover the funds.
RFP – Fund Repayment Services Page 6 of 25 March 11, 2008
• Pursuit of repayment may include negotiating installment-type payments that may include an appropriate interest rate, or other settlement terms, provided the overpayment amount exceeds a threshold amount, such as $50,000 or greater.
• Determining, as necessary, the recipient’s ability to repay, such as through an analysis of the recipient’s financial situation as discerned through an asset search, credit bureau report, bankruptcy filing, notarized statement, and/or other means consistent with Program policies and as permitted by law.
• Determining if legal action should be pursued, as necessary, and coordinating with ICF on carrying out such next steps.
• The attempts at collection and the status will be documented in the JIRA Issue Tracker System (and/or other tracking system(s) as may be appropriate) for the particular applicant to create an ability to monitor the case and audit trail.
• Reporting, such as summarizing the financial situation of a recipient and the steps taken to pursue repayment, a listing that tracks the status of all repayment cases underway and closed, and the aging of recipients that are in the pipeline being addressed (such as in different stages of collection).
• Providing documentation, as appropriate, for the eGrants system and hard-copy file for the recipient on the repayment that has been addressed.
• Subcontractor services must include providing debt collection record keeping software (DCRK) that can send and receive in a comma separated values (CSV) environment.
• Performing QA/QC reviews of the collection process, such as ensuring that recipients are not treated in a punitive manner, but with compassion; that efforts pursued are reasonable, fair, and equitable; that recipients are being addressed promptly to resolve the collection; and that all collection efforts comply with applicable Federal and State laws and regulations.
• These general task activities are subject to change and other related tasks may be added.
RFP – Fund Repayment Services Page 7 of 25 March 11, 2008
EXHIBIT B
BIDDERS INFORMATION FORM
Each bidder is expected to provide the following information:
1. Firm name, address, point of contact, telephone number, email address, organization chart, and description of firm’s services.
2. Indication of business classification, such as minority owned, women’s business enterprise, historically underutilized business, labor surplus area firm, disabled Veteran owned, small business, HUD Section 3 business, etc.
3. Indication of appropriate Parish and Louisiana business licenses.
4. Indication of being a Louisiana-based firm, the firm’s presence in Louisiana, and ability and commitment to utilize Louisiana residents.
5. Indication of ability to have sufficient insurance coverage in accordance with the requirement of Exhibit C, Sample Subcontract, Appendix A, paragraph 19, Insurance.
6. Statement regarding the adequacy of the firm’s financial capacity to perform the Statement of Work, as provided in Exhibit A.
7. Identification of any proposed subcontractors and vendors, as applicable.
8. Statement of intent to comply fully with The Road Home Program Drug Screen & Background Check Requirements, as provided in Exhibit D.
RFP – Fund Repayment Services Page 8 of 25 March 11, 2008
EXHIBIT C
BASIC ORDERING SUBCONTRACT AGREEMENT
This agreement ("Subcontract”) ) dated the _______ day of _____, is between ICF Emergency Management Services, L.L.C. ("Contractor") and _________ ("Subcontractor").
WHEREAS, Subcontractor offers unique services and desires to provide Contractor with such services; and
WHEREAS, Contractor has entered into an agreement ("Prime Contract") to provide services to its Client, the State of Louisiana Office of Community Development and desires to utilize Subcontractor's services as provided herein to assist Contractor in the performance of such services.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties hereto agree as follows:
1. BASIC ORDERING AGREEMENT NUMBER: XXXXXXXX
2. PURPOSE
2.1 The purpose of this Basic Ordering Agreement (“BOA”) is to provide a mechanism whereby the parties may, from time to time, develop Task Assignments for services to be performed within the terms and conditions set forth herein.
3. GENERAL TERMS AND CONDITIONS
3.1 General terms and conditions applicable to this Basic Ordering Agreement are set forth in Appendix A, attached hereto and incorporated by reference herein.
4. SCOPE OF WORK
4.1 The General Scope of Work (“SOW”) is set forth in Appendix B, attached hereto and incorporated herein by reference. The individual services to be performed on a task basis (“Services”) shall be within the SOW and shall be clearly defined in each Task Assignment.
5. TERMS, CONDITIONS AND INSTRUCTIONS
5.1 CONFLICT OF INTEREST / BUSINESS ETHICS
5.1.1. Subcontractor warrants that neither its entering into this Agreement nor its performance of any Services hereunder will result in an actual or apparent conflict of interest on its part. Failure of Subcontractor to promptly disclose a conflict of interest shall constitute a material breach of this Agreement
5.1.2. Conflict of Interest.
5.1.2.1. The Subcontractor hereby agrees that it will not undertake any work on behalf of any of its management, employees, subcontractors, independent contractors or agents in connection with claims or potential claims against the Contractor and/or its management, directors, officers, shareholders and employees and which are related to or arise out of the performance of the Program Services as assigned under the BOA and it’s task orders. Part 9.5 of the Federal Acquisition Regulations (FAR) is incorporated by reference herein.
RFP – Fund Repayment Services Page 9 of 25 March 11, 2008
5.1.2.2. The Subcontractor agrees that in the event a Conflict of Interest exists, none of its management, employees, subcontractors, independent contractors or agents shall be permitted to utilize any contacts or position with the Subcontractor or any information or other resources available to the Subcontractor as a result of the performance of the Services.
5.1.2.3. Subcontractor agrees to undertake a continuing obligation to disclose to the Contractor any actual, apparent, or potential Conflict of Interest relating to the Subcontractor’s performance of the Services and will diligently seek to identify any potential organizational Conflicts of Interest that Subcontractor may encounter during the performance of the Services. The Subcontractor agrees to notify the Contractor immediately in writing upon receiving knowledge that a Conflict of Interest exists or may exist. Such notification will include a description of the Conflict of Interest and the Subcontractor’s proposal to resolve it.
5.1.2.4. The Subcontractor agrees that, in the event there is a Conflict of Interest with respect to the any of the Subcontractor’s management, employees, subcontractors, independent contractors or agents, such management, employee, subcontractor, independent contractor or agent shall be permitted to assist the Subcontractor in the performance of Services hereunder to the extent that such assistance shall not conflict with the Subcontractor’s obligations and ability to perform the Services.
5.1.2.5. Subcontractor recognize and acknowledge that some of their management, employees, subcontractors, independent contractors and agents will, in their individual, personal capacities, have Program-related Claims which may arise and which are potentially adverse to the interests of Contractor. Subject to the limitations and restrictions set forth in this Agreement, including the prohibitions against the use of Subcontractor personnel and resources in support of such claims, the Contractor and Subcontractor recognize and acknowledge the right of such individuals to pursue such claims.
5.1.3. Existence of Conflict.
5.1.3.1. In the event a Conflict of Interest exists and becomes known to the Subcontractor, the Subcontractor shall promptly notify the Contractor of such Conflict of Interest and the Parties shall attempt to resolve the Conflict of Interest on such terms and in such a manner as can reasonably be agreed between the Parties. If the Parties are unable to reach an agreement resolving such Conflict of Interest to the reasonable satisfaction of the Contractor, the Contractor reserves the right to terminate this Agreement.
5.1.3.2. 5.1.3.2 In the event the Subcontractor fails to timely disclose a Conflict of Interest in accordance with Section 5.1.2.1, the Contractor may:
a) declare the Subcontractor to be in default of its obligations under this Agreement and seek appropriate remedies; or
b) terminate the Agreement; and/or seek damages.
No failure by the Contractor to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any order or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by this Agreement or applicable law.
5.1.4. Business Ethics
RFP – Fund Repayment Services Page 10 of 25 March 11, 2008
5.1.4.1. Without limiting the foregoing obligation, and to the extent applicable to this Agreement, the Subcontractor will, and will use its best efforts to cause its management, employees, subcontractors, independent contractors and agents to, comply with the Louisiana Code of Governmental Ethics (La. R.S. 42:1101, et seq.).
5.1.4.2. Subcontractor will report to ICF International whenever any member of its senior management or a decision maker is related (directly or by marriage) to any elected official of the State of Louisiana. The Subcontractor is to provide on a timely basis the following:
The names and titles of all members of senior management or decision makers at their company who are actually involved in the Road Home project.
A “Yes” or “No” as to whether that member of senior management is related (directly or by marriage) to an elected official at any level of government in the State of Louisiana
5.1.5. Bribes.
Subcontractor shall not directly or indirectly offer, promise or pay any compensation or give anything of value to any official, agent or employee of any government, governmental agency or political party or any candidate for political office on behalf of or for the benefit of the Contractor or Client.
5.1.6. Certification(s)
Subcontractor will ensure that all of its employees, agents, consultants and any lower tier subcontractor approved by Contractor sign in and return within 10 business days after the execution of this agreement the Road Home’s standard of ethical conduct and conflict of interest agreements. The signed certifications will apply to any person working on the Road Home program and must be returned to the Contractor.
5.1.7. Debarment
Except to the extent prohibited by law, persons who are debarred or suspended shall be excluded from primary covered transactions as either participants or principals throughout the Executive Branch of the Federal Government for the period of their debarment, suspension, or the period they are proposed for debarment under 48 CFR part 9, subpart 9.4. Accordingly, no agency shall enter into primary covered transactions with such excluded persons during such period, except as permitted pursuant to § 24.215.
Except to the extent prohibited by law, persons who have been proposed for debarment under 48 CFR part 9, subpart 9.4, debarred or suspended shall be excluded from participating as either participants or principals in all lower tier covered transactions (see § 24.110(a)(1)(ii)) for the period of their exclusion.
5.1.8. Fund Use
Subcontractor agrees not to use Subcontract proceeds to urge any elector to vote for or against any candidate or proposition on an election ballot nor shall such funds be used to lobby for or against any proposition or matter having the effect of law being considered by the Louisiana Legislature or any local governing authority. This provision shall not prevent the normal dissemination of factual information relative to a proposition on any election ballot or a proposition or matter having the effect of law being considered by the Louisiana Legislature or any local governing authority.
5.1.9. Covenant Against Contingent Fees And Conflict Of Interest
RFP – Fund Repayment Services Page 11 of 25 March 11, 2008
The Subcontractor warrants that no person or selling agency or other organization has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee. For breach or violation of this warrant the Client shall have the right to annul this contract without liability or, in its discretion, to deduct from the Subcontract or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee, or to seek such other remedies as legally may be available.
5.1.10. Code Of Ethics
The Contractor acknowledges that Chapter 15 of Title 42 of the Louisiana Revised Statutes (R.S. 42:1101 et seq., Code of Governmental Ethics) applies to the Contractor and subcontractors in the performance of services called for in this Subcontract . The Contractor agrees to immediately notify the Client if potential violations of the Code of Governmental Ethics arise as to the Contractor or subcontractors at any time during the term of this Subcontract .
No member, officer, or employee of the Subcontractor, or its designees, or agents, no consultant, no member of the governing body of the Subcontractor or the locality in which the program is situated, and no other public official of the Subcontractor or such locality or localities, who exercises or has exercised any functions or responsibilities with respect to the Project during his or her tenure, shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the Project or in any activity or benefit, which is part of this Project.
Subcontractor will disclose, within five days of the time they arise, any related party affiliations between any Louisiana elected official or employee of the Office of Community Development or the Louisiana Recovery Authority.
Upon written request of the Subcontractor, the Contractor may agree in writing to waive a conflict otherwise prohibited by this provision whenever there has been full public disclosure of the conflict of interest, and the Client determines that undue hardship will result either to the Contractor or the person affected by applying the prohibition and that the granting of a waiver is in the public interest. No such request for waiver shall be made by Subcontractor which would, in any way, permit a violation of State or local law or any charter provision of the Subcontractor.
6. TERM OF AGREEMENT
6.1 The terms and conditions of this Agreement shall be in effect from __________ through June 11, 2009.
7. TASK ORDERING PROCEDURES
7.1 Task Assignments shall be developed by the Parties for each specific project. Contractor shall hold verbal discussions with the Subcontractor to develop a mutually agreed upon Task Assignment Statement of Work and Price. Task Assignments may be Firm Fixed Price (FFP) or Time and Materials (T&M) type.
7.2 Changes to the Task Assignments shall be made in writing.
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7.3 Deliverables shall conform to the technical requirements and time schedules set forth in the Task Assignment.
8. TIME AND MATERIAL RATES
8.1 For Time and Materials Type Task Assignments, in consideration for Services performed, Contractor shall pay Subcontractor the hourly fees (inclusive of salary, indirect costs, and fee) set forth below.
Labor Category / Name $ per hour
For Time & Material (T&M) task orders the Subcontractor will be required to report to the Contractor ten (10) business days prior to the point when it expects to have expended 80% of the allocated funding for that task.
8.2 Other direct costs, including transportation, lodging, telephone, computer usage, and other actual direct expenses will be reimbursed to the same extent that such actual costs are allowable and allocable under the Prime Contract.
9. INVOICES
9.1 Subcontractor shall submit a separate invoice for each Task Assignment. All invoices under this agreement shall be submitted in an original and one (1) copy to Contractor’s Contracts Manager designated herein.
9.2 Subcontractor shall submit an invoice which includes labor hours by labor category, by employee, by week for tasks with labor and shall include subtotals by category for both hours and dollars, The subcontractor shall also submit receipts for travel expenses billed, and backup documents supporting any other direct costs billed. Copies of time cards shall be retained and shall be made available to Contractor upon request. All meals and incidentals shall be in accordance with Federal Travel Regulations (FTRs) as they relate to the per diem charges.
9.3 Subcontractor shall submit invoices either on a monthly, bi weekly or semi monthly basis but in any event no later than by the tenth day of each month following the month in which the Services were performed. The invoicing cycle shall be reported to the ICF contracts manager before the first invoice is received.
9.4 Subcontractor agrees to maintain separate records of time and expense charges incurred for services rendered.
9.5 Each invoice shall contain the following certification signed by an authorized representative of the Subcontractor:
"I hereby certify that, to the best of my knowledge and belief, all payments requested are correct, accurate, and complete, that payment therefore has not been received and that all amounts requested are for the appropriate purposes and in accordance with this Agreement."
9.6 Subcontractor shall be paid within ten (10) business days of Contractor’s receipt of payment from the Client for Subcontractor’s services. Each invoice shall contain all invoice data required in the prime contract as it relates to the Services.
10. NOTICE
10.1 Contractor’s Senior Manager of Contracts is the only representative of Contractor who is authorized to approve changes in the Services or approve any change to the payment terms or amounts. Such changes made by Subcontractor without written authorization by Contractor’s Project Manager shall be performed at Subcontractor’s sole risk and expense.
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10.2 Invoices and Deliverables shall be submitted to the Road Home Account Receivable Department and all questions concerning payment of invoices shall be referred to the Contract Manager.
10.3 Notice given by any party shall be in writing and shall be deemed given five (5) calendar days from the date deposited with the United States Postal Service, postage prepaid, return receipt requested, with a commercial courier service for overnight delivery, or upon actual delivery to the other party at the address listed below:
Contractor: Subcontractor:
ICF Emergency Management Services, L.L.C. __________________
8282 Goodwood Blvd. __________________
Baton Rouge, LA 70806 Attn:
Attn:
11. ENTIRE AGREEMENT
The parties acknowledge that they have read this Agreement, understand it and agree to be bound by its terms. This Subcontract supersedes all prior agreements, whether written or oral, relating to the subject matter hereof, and contains the entire agreement of the parties. No modification or other change to this Subcontract shall be binding unless such modification or change is in writing and signed by an authorized representative of each party.
IN WITNESS WHEREOF, Subcontractor and Contractor have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.
FOR: CONTRACTOR FOR: SUBCONTRACTOR
Signature Signature
Name (Typed or Printed) Name (Typed or Printed)
Date Date
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APPENDIX A
SUBCONTRACT GENERAL TERMS & CONDITIONS
INCORPORATED INTO SUBCONTRACT NO. ________
BETWEEN ICF Emergency Management Services, LLC AND _________________________
1. WARRANTIES. Subcontractor hereby warrants that the Services shall be of professional quality and performed consistent with generally accepted industry standards. Time is of the essence. Subcontractor warrants that none of the Deliverables infringe on any intellectual property rights of any third party. In addition, Subcontractor warrants that the prices charged hereunder are not in violation of law or regulation and that Subcontractor's assigned technical and management personnel are well qualified to perform the Services. For a warranty period equal to that of the Prime Contract (as defined below), Subcontractor shall promptly correct any defect or deficiency related to its Services at its sole expense. The above warranties shall also extend to Contractor's Prime Contract Client.
2. TAXES. Except as otherwise specified herein, the prices for Services shall include all applicable federal, state, local and other taxes.
Subcontractor is responsible for payment of all
applicable taxes from the funds to be received under
this Subcontract.
3. DELIVERABLES. All documentation, software, ideas and all other material first produced by Subcontractor under this Agreement (collectively, “Deliverables”) shall be the sole and exclusive property of the Contractor. Subcontractor agrees that the Deliverables shall be deemed works made for hire and that Contractor shall retain and own all copyright, patent, trade secret, trademark and any other intellectual property right in the Deliverables. If for any reason the Deliverables are not considered works made for hire owned by the Contractor by operation of law, Subcontractor hereby irrevocably assigns to Contractor all right, title and interest in the Deliverables. Upon request, Subcontractor agrees to execute all written documents necessary for Contractor to establish, preserve or enforce its rights to the Deliverables. Subcontractor agrees not to assert and hereby irrevocably waives any moral rights that it may have in the Deliverables. Subcontractor hereby irrevocably
assigns to Contractor all moral rights in the Deliverables.
Notwithstanding the paragraph immediately above, the Contractor acknowledges that in the course of its performance under the Agreement the Subcontractor may use pre-existing products, materials and methodologies proprietary to the Subcontractor (“Pre-existing Works”). To the extent Subcontractor provides any Pre-existing Works hereunder, Subcontractor hereby grants to Contractor a nonexclusive, worldwide, perpetual, irrevocable, paid-up license to prepare and have prepared derivative works of the Pre-Existing Works, and to use, have used, publish, execute, reproduce, transmit, display, perform, transfer, distribute, and sublicense the Pre-Existing Works and such derivative works, in any medium or distribution technology, and to grant others the rights granted herein.
4. LICENSES AND PERMITS. Subcontractor warrants that it has or shall, at its sole expense, obtain all licenses, certifications, permits, approvals, inspections and other authorizations required to perform the Services. Inability or failure to obtain such items shall not excuse Subcontractor's failure to strictly comply with the terms hereof.
5. CONTACTS WITH CLIENT. Subcontractor can communicate with Contractor’s Client upon request. Subcontractor cannot take direction from the Client to change or alter the subcontract between Contractor and Subcontractor without prior written consent of Contractor’s respective Subcontract Manager and/or Subcontract Administrator.
6. CHANGES. No change in this Subcontract or Services to be delivered hereunder ("Change" or "Changes") shall be made without the express written authorization of Contractor’s Senior Manager of Contracts or his/her designee. See notices section of BOA. Subcontractor shall make all claims for Changes within ten (10) calendar days of the date that Subcontractor knew or should have known of the basis for such claim. Such notice shall clearly state the nature of the asserted Change, the action proposed by the Subcontractor to implement the Change and the proposed equitable adjustment in cost and/or schedule. Out-of-scope services performed by Subcontractor without such written authorization from Contractor shall be at Subcontractor's sole risk and expense. Contractor may require Changes within the general scope of work of the Services or as required by its Client under the Prime Contract. Subject to Contractor's review of Subcontractor's justification, an equitable adjustment
may be made in the Subcontract price and/or schedule, as appropriate. In event of a dispute relating to a claimed change, the dispute shall be addressed in accordance with the Disputes provisions of this Agreement. Pending final resolution of the dispute, Subcontractor shall proceed with the Services as directed by the Contractor
7. EMPLOYEE PERFORMANCE. Subcontractor shall immediately remove from performing the Services any employee (including employees of lower tier subcontractors or consultants) that Contractor deems unresponsive, uncooperative or a hindrance to the performance of the Services and shall promptly recommend a suitable replacement for Contractor’s approval. Persons so removed shall not be used in the future for the Services without the express written authorization of the Contractor. Subcontractor warrants that it will only utilize personnel and lower tier subcontractors who are adequately trained and experienced to properly perform the Services in a safe and efficient manner. It is the responsibility of each Subcontractor to ensure that each person working on the Road Home program has passed a background investigation and has no felony, fraud-related, or drug-related convictions. Convicted felons shall not work on the Road Home program.
8. SEXUAL HARASSMENT. Subcontractor, its employees and agents shall not engage in sexual harassment or make lewd or derogatory comments during the performance of the Services or while on the work site. Failure of the Subcontractor to take immediate and forceful action to prevent sexual harassment shall subject Subcontractor to penalty up to and including termination of this Agreement for cause.
9. INSPECTIONS. Contractor or its Client may inspect and otherwise evaluate the Services at any reasonable time and place but such review or approval is for Contractor's sole benefit and shall not relieve Subcontractor from its representations and obligations set forth in this Agreement. If any of the Services fail to meet the requirements hereof, Contractor shall notify Subcontractor of such fact, stating the nature of the deficiency. Subcontractor shall correct
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any such deficiencies at no additional cost to Contractor. Subcontractor shall maintain complete and accurate working files, including but not limited to, calculations, interpretations, assumptions, estimates, logs, drawings, equipment calibrations and other records pertaining to the Services. Subcontractor shall provide Contractor with unrestricted access to such items and dispose of them only as directed by Contractor. Subcontractor shall strictly comply with all applicable protocols, procedures, specifications and other guidelines or requirements for performing the Services.
10. ACCEPTANCE. Acceptance of the Services is conditioned upon final acceptance by Contractor as called out in each Task Order. Payments, including final payment, shall not constitute acceptance, nor does any payment or final acceptance release Subcontractor from any warranty hereunder.
11. CURRENCY OF PAYMENT. All payments shall be in United States Dollars ($US).
12. FINAL PAYMENT/RELEASE. Subcontractor's acceptance of final payment hereunder constitutes a release of all claims and liabilities which the Subcontractor may have against the Contractor or Client relating to this Agreement.
13. LIENS. Subcontractor hereby waives its right to file any lien in connection with the Services and shall not enter into any agreement creating such a right in any other party.
14. SET-OFF. Contractor may set-off against amounts payable to Subcontractor under this (or any other) Agreement any claim Contractor may have against Subcontractor.
15. TERMINATION FOR CONVENIENCE. Contractor may at its sole convenience terminate this Agreement or an individual Task Order issued hereunder, in whole or in part, and require Subcontractor to cease performance of the Services. In event of such termination event, Subcontractor shall be paid only for the Services properly performed prior to such termination, for obligations that have been incurred prior to termination that extend beyond the date of termination; and for any actual and reasonable costs associated with such termination, including levying of termination or subletting fees related to leases secured in performing the Services. Subcontractor waives all claims for profits not earned as a result of such termination.
16. TERMINATION FOR DEFAULT. Contractor may terminate this Agreement or an individual Task Order issued hereunder, in whole or in part:
If Subcontractor fails to make progress so as to endanger the timely completion of the Services and fails within three (3) business days to initiate appropriate corrective action,
If any proceeding by or against the Subcontractor in bankruptcy or insolvency or appointment of a receiver or trustee or assignment for the benefit of creditors is made
If Contractor notifies Subcontractor of specified service or quality problems and Subcontractor fails to cure said problems or make substantive progress towards curing the problems within ten (10) business days of receiving notice of the problems;
If Subcontractor materially breaches the terms of this Agreement, and such breach is incapable of remedy, or is not remedied within ten (10) business days of receiving notice of such breach.
In event of such termination event, Subcontractor shall be paid only for the Services properly performed prior to such termination, for obligations that have been incurred prior to termination that extend beyond the date of termination; and for any actual and reasonable costs associated with such termination, including levying of termination or subletting fees related to leases secured in performing the Services. Subcontractor waives all claims for profits not earned as a result of such termination.
In the event of a Termination for Default, Contractor may, without prejudice to any other rights or remedies, complete performance of the Services either directly or through others,
TERMINATION FOR NON-APPROPRIATION OF FUNDS, The continuation of this Subcontract is contingent upon the appropriation of funds by the legislature to fulfill the requirements of the Prime Contract. If the legislature fails to appropriate sufficient monies to provide for the continuation of the Prime Contract, or if such appropriation is reduced by the veto of the Governor or by any means provided in the appropriations act of Title 39 of the Louisiana Revised Statutes of 1950 to prevent the total appropriation for the year from exceeding revenues for that year, or for any other lawful purpose, and the effect of such reduction is to provide insufficient monies for the continuation of the Prime Contract, the Subcontract shall terminate on the date the first fiscal year for which funds have not been appropriated begins. Subcontractor shall be entitled to payment for deliverables in progress, to the extent work has been performed satisfactorily; obligations that have been
incurred that extend beyond the date of termination; and reasonable contract close-out costs.
17. STOP-WORK. Notwithstanding any other provision hereof, Contractor may, by notice to Subcontractor, suspend all or any portion of the Services. Subcontractor shall stop all such Services immediately upon receipt of Contractor's stop-work order and shall promptly resume the Services after receipt of direction from the Contractor to proceed. Stop-work orders issued for conditions or circumstances unrelated to the Subcontractor’s fault or negligence shall result in a reasonable adjustment in the contract schedule.
18. INDEMNIFICATION & LIMITATION OF LIABILITY FOR THE STATE OF LOUISIANA
The Subcontractor shall, and does hereby indemnify, defend and hold harmless each of the Contractor Parties from and against any and all liabilities, claims, demands, debts, damages, fines, penalties, losses, causes of action, suits, expenses and costs of any nature whatsoever (including but not limited to court, arbitration and attorney’s costs and fees) suffered by the Contractor and directly or indirectly arising out of or incurred as a result of the failure of the Subcontractor and/or its management, employees, lower tier subcontractors, independent contractors or agents to comply with the provisions of this Agreement.
Neither party shall be liable for any delay or failure in performance beyond its control resulting from acts of God or force nature. The parties shall use reasonable efforts to eliminate or minimize the effect of such events upon performance of their respective duties under the Subcontract.
Subcontractor shall be fully liable for the actions of its agents, employees, partners or subcontractors and shall fully indemnify and hold harmless the Client from suits, actions, damages and costs of every name and description relating to personal injury and damage to real or personal tangible property caused by Subcontractor, its agents, employees, partners or lower tier subcontractors, without limitation; provided, however, that the Subcontractor shall not indemnify for that portion of any claim, loss or damage arising hereunder due to the negligent act or failure to act of the Client .
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Subcontractor will indemnify, defend and hold the Contractor and the Client harmless, without limitation, from and against any and all damages, expenses (including reasonable attorneys' fees), claims, judgments, liabilities and costs which may be finally assessed against the State in any action for infringement of a United States Letter Patent with respect to the Products furnished, or of any copyright, trademark, trade secret or intellectual property right, provided that the State shall give the Subcontractor: (i) prompt written notice of any action, claim or threat of infringement suit, or other suit, (ii) the opportunity to take over, settle or defend such action, claim or suit at Subcontractor's sole expense, and (iii) assistance in the defense of any such action at the expense of Subcontractor. Where a dispute or claim arises relative to a real or anticipated infringement, the State may require Subcontractor, at its sole expense, to submit such information and
documentation, including formal patent attorney opinions, as the Commissioner of Administration shall require.
The Subcontractor shall not be obligated to indemnify that portion of a claim or dispute based upon: i) the State’s unauthorized modification or alteration of a Product; ii) the State’s use of the Product in combination with other products not furnished by Subcontractor; iii) the State’s use in other than the specified operating conditions and environment.
In addition to the foregoing, if the use of any item(s) or part(s) thereof shall be enjoined for any reason or if Subcontractor believes that it may be enjoined, Subcontractor shall have the right, at its own expense and sole discretion as the State’s exclusive remedy to take action in the following order of precedence: (i) to procure for the State the right to continue using such item(s) or part (s) thereof, as applicable; (ii) to modify the component so that it becomes non-infringing equipment of at least equal quality and performance; or (iii) to replace said item(s) or part(s) thereof, as applicable, with non-infringing components of at least equal quality and performance, or (iv) if none of the foregoing is commercially reasonable, then provide monetary compensation to the State up to the dollar amount of the Subcontract.
For any deliverable or service which is not accepted, upon request from the State, the Subcontractor shall re-perform the Services at no additional charge. If Subcontractor is unable to re-perform the Services in an acceptable manner, the State shall be entitled to recover the fees paid to Subcontractor for that portion of the Services which failed to be accepted.
Neither Subcontractor nor any of its lower tier subcontractors shall have any responsibility and/or liability for any claim brought by any third party arising out of or relating to the design, development, and/or validity of the Louisiana Road Home Housing Recovery Program.
Except as provided above in the second and third paragraphs of Section 5, Subcontractor shall be allowed to charge as an expense under this Subcontract, all reasonable costs and fees incurred by it in defending and/or paying any claim brought by any third party against it arising out of, directly or indirectly, Subcontractor’s performance of its obligations under this Subcontract.
The parties agree that: (i) this Subcontract is not a “public contract” as defined in La. R.S. 38:2211(A) (10); (ii) the scope of work hereunder is not “public work” as defined in La. R.S. 38:2211(A) (12); and (iii) the prohibitions of La. R.S. 38:2195 are not applicable to any matters or claims arising out of Subcontractor’s performance of its obligations under this Subcontract.
For all other claims against the Subcontractor where liability is not otherwise set forth in this Subcontract as being "without limitation," and regardless of the basis on which the claim is made, Subcontractor's liability for direct damages, shall be the greater of $100,000, or the dollar amount of the specific portion of the Subcontract in dispute. Neither party shall be liable to the other for special, indirect or consequential damages, including lost data or records (unless the Subcontractor is required to back-up the data or records as part of the work plan), even if the party has been advised of the possibility of such damages. Neither party shall be liable for lost profits, lost revenue or lost institutional operating savings.
19. INSURANCE. During the term hereof, Subcontractor shall maintain the minimum insurance coverage specified below. Insurance shall be placed with insurers with an A.M. Best’s rating of no less than A-:VI. This rating requirement shall be waived for Worker’s Compensation coverage only.
Subcontractor’s Insurance: The Subcontractor shall not commence work under this subcontract until it has obtained all insurance required herein. Certificates of Insurance, fully executed by an authorized representative of the Insurance Company, shall be filed with the Contractor. The Subcontractor shall not allow any lower tier sub-contractor to commence work on his subcontract until all similar insurance required for the subcontractor has been obtained and approved. Said policies shall not hereafter be canceled, permitted to expire, or be changed without the insurance companies endeavoring to provide thirty (30) days’ notice in advance to the State of Louisiana.
Workers Compensation Insurance: Before any work is commenced, the Subcontractor shall maintain during the life of the Subcontract, Workers’ Compensation Insurance for all of the Subcontractor’s employees employed at the site of the project. In case any work is sublet, the Subcontractor shall require the lower tier subcontractor similarly to provide Workers’ Compensation Insurance for all the latter’s employees, unless such employees are covered by the protection afforded by the Subcontractor. In case any class of employees engaged in work under the Subcontract at the site of the project is not protected under the Workers’ Compensation Statute, the Subcontractor shall provide for any such employees, and shall further provide or cause any and all subcontractors to provide Employer’s Liability Insurance for the protection of such employees not protected by the Workers’ Compensation Statute.
Commercial General Liability Insurance: The Subcontractor shall maintain during the life of this Subcontract such Commercial General Liability Insurance that shall protect the Subcontractor, the State, and any lower tier subcontractor during the performance of work covered by the Subcontract from claims or damages for personal injury, including accidental death, as well as for claims for property damages, which may arise from operations under the Subcontract, whether such operations be by himself or by a lower tier subcontractor, or by anyone directly or indirectly employed by either or them, or in such a manner as to impose liability to the State. Such insurance shall include the State as additional insured for claims arising from or as the result of the operations of the Subcontractor or his lower tier subcontractors. In the absence of specific regulations, the amount of coverage shall be as follows: Commercial General Liability Insurance, including bodily injury,
property damage and contractual liability, with combined single limits of $1,000,000.
Licensed Motor Vehicles: The Subcontractor shall maintain during the life of the Subcontract, Automobile Liability Insurance in an amount not less than combined single limits of $1,000,000 per occurrence for bodily injury/property damage. Such insurance shall cover the use of any licensed motor vehicles engaged in operations within the terms of the Subcontract on the site of the work to be performed there under, unless such coverage is included in insurance elsewhere specified.
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RESERVED
20. DISPUTES. Any dispute relating to this Agreement shall be submitted to a panel consisting of at least one representative of each party who shall have the authority to enter into an agreement to resolve the dispute. The panel shall meet for a maximum of three (3) calendar days. Should this dispute resolution be unsuccessful, or if the panel has failed to meet within 2 weeks of demand for such a meeting, the matter may be submitted by either party to binding arbitration in accordance with the rules and procedures of the American Arbitration Association then in effect. No written or oral representation made during the course of any panel proceeding or other settlement negotiations shall be deemed a party admission. Pending any decision, appeal, suit or claim pursuant to this Section, the Subcontractor shall proceed diligently with the Services.
21. INDEPENDENT CONTRACTOR. For purposes hereof, Subcontractor is an independent contractor, and shall not be deemed to be an employee or agent of Contractor. Subcontractor shall indemnify and hold Contractor harmless against all liability and loss resulting from Subcontractor's failure to pay all taxes, contributions, fees and other amounts imposed by any government under employment insurance, social security and income tax laws, and with respect to any injury or loss, including death, of any of Subcontractor's employees.
22. ASSIGNMENT/SUBCONTRACTING. Subcontractor shall not assign this Subcontract nor any rights or obligations herein, nor subcontract any of the Services, without Contractor's prior written consent. Subcontractor shall remain liable to Contractor for all obligations and liabilities set forth in this Agreement without regard to whether Subcontractor directly performs the services or delegates performance to lower tier subcontractors or consultants.
23. PUBLICITY AND PUBLICATIONS. Subcontractor shall obtain Contractor's written approval prior to the release of any publicity, publication or information of any nature in connection with this Subcontract.
24. ORDER OF PRECEDENCE. In the event of a conflict in the terms and conditions of the contract documents, the following order of precedence shall apply:
a. The Subcontract Agreement along with Appendix A
b. The Scope of Work, Appendix B
c. The Prime contract incorporated by reference
d. Other contract documents
25. REMEDIES AND NON-WAIVER. Failure of Contractor to insist upon strict conformance with the provisions of this Agreement shall not constitute a waiver of any of the provisions hereof. Except as otherwise expressly stated herein, the remedies provided herein shall be non-exclusive and in addition to any other remedies in law or equity. Any waiver must be in a writing designated as such and signed by Contractor, and shall be applicable only to the extent set forth therein.
For any Deliverable or Service that is not accepted by the Contractor and / or the Client, the Subcontractor shall re-perform. If Subcontractor is unable to perform as warranted, the Subcontractor shall be liable for all direct damages assessed.
In no event shall either the Contractor or the Subcontractor be liable for any indirect, incidental, special or conse-quential damages whatsoever (including but not limited to lost profits or interruption of business) arising out of or relat-ed to the services provided under this Agreement, even if advised of the possibility of such damages.
Claims by the Client against the Contractor based on the Subcontractor’s performance hereunder are deemed to be direct damages for purposes of this section 28. Subcontractor shall indemnify and hold the Contractor harmless from any Loss caused by such a claim made by the Client against the Contractor based on Subcontractor’s performance hereunder.
26. COURSE OF DEALING. No course of dealing between the parties hereto nor failure by the Contractor at any time, or from time to time, to enforce any term or condition of this Agreement or of a work order shall constitute a waiver of such term or condition, nor shall such course of dealing or failure affect such term or condition in any way or the right of the Contractor at any time to avail itself of such remedies as it may have for any breach of such term or condition.
27. COMPLIANCE WITH LAW. Subcontractor shall indemnify Contractor for any liability, penalty or other loss incurred or imposed by reason of a violation or asserted violation by Subcontractor of laws applicable to the Services. Subcontractor's failure to strictly comply with applicable environmental law shall constitute a material breach of this Agreement. Subcontractor shall comply with all laws applicable to Subcontractor, including without limitation, the Fair Labor Standards Act of 1938, laws relating to equal employment opportunity, utilization of small business concerns and small disadvantaged business concerns, employment of the handicapped, employment of veterans of the Vietnam era and to the environment.
Subcontractor shall immediately notify the Contractor of any asserted violations of applicable law by the Subcontractor or its lower-tier subcontractors or consultants; a previously undisclosed release or threatened release of a Hazardous Substance; a governmental inspection or request for information related to the Services; or the discovery of any condition or circumstance likely to impair the ability of the Subcontractor to properly perform the services within the established budget and schedule.
28. DRAFTING PARTY. Each party has reviewed this Agreement and any question of interpretation shall not be resolved by any rule of interpretation providing for interpretation against the drafting party. This Agreement shall be construed as though drafted by both parties.
29. NO AGENCY. Except as specifically set forth otherwise, it is agreed and understood that neither party hereto is, by this Agreement or anything herein contained, constituted or appointed agent or representative of the other for any purpose whatsoever, nor shall anything in this Agreement be deemed or construed as granting either party any right or authority to assume or to create any obligation, warranty or responsibility, express or implied, for or in behalf of the other.
30. CAPTIONS. The captions and headings of this agreement are intended for convenience and reference only, shall not affect the construction or meaning of this Agreement
31. ASSIGNMENT
Subcontractor shall not assign any interest in this Subcontract by assignment, transfer, or novation, without prior written consent of the Contractor. This provision shall not be construed to prohibit the Subcontractor from assigning to a bank, trust company, or other financial institution any money due or to become due from approved contracts without such prior written consent. Notice of any such assignment or transfer shall be furnished promptly to the Contractor.
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32. RIGHT TO AUDIT
The State Legislative auditor, federal auditors and internal auditors of the Division of Administration, or others so designated by the Commissioner, shall have the option to audit all accounts directly pertaining to the Subcontract for a period of five (5) years from the date of the last payment made under this Contract. Records shall be made available during normal working hours for this purpose. The Contractor shall have the right to audit compliance with Davis Bacon (if applicable); any Regulations that require compliance audits and records that validate invoiced cost.
33. SUBCONTRACT MODIFICATION
No amendment or variation of the terms of this Subcontract shall be valid unless made in writing, signed by the parties and approved as required by law. No oral understanding or agreement not incorporated in the Contract is binding on any party.
34. CONFIDENTIALITY OF INFORMATION
a. Confidential Information, General
ALL OF THE REPORTS, INFORMATION, DATA, ETC., PREPARED OR ASSEMBLED BY THE SUBCONTRACTOR UNDER THIS SUBCONTRACT ARE CONFIDENTIAL AND THE SUBCONTRACTOR AGREES THAT THEY SHALL NOT BE MADE AVAILABLE TO ANY INDIVIDUAL OR ORGANIZATION WITHOUT THE PRIOR WRITTEN APPROVAL OF THE CONTRACTOR. Oral communications pertaining to the Services shall be presumed to be Confidential Information unless otherwise indicated by Contractor.
All financial, statistical, personal, technical and other data and information relating to the Client’s operation that are designated confidential by the Client and made available to the Subcontractor in order to carry out this Subcontract, or that become available to the Subcontractor in carrying out this Subcontract (“Confidential Information”), shall be protected by the subcontractor from unauthorized use and disclosure through the observance of the same or more effective procedural requirements as are applicable to the Client. The identification of all such confidential data and information as well as the Client’s procedural requirements for protection of such data and information from unauthorized use and disclosure shall be provided by the Client in writing to the Subcontractor through the Contractor. If the methods and procedures employed by the Subcontractor for the protection of the Subcontractor’s data and information are deemed by the Contractor to be adequate
for the protection of the Client’s confidential information, such methods and procedures may be used, with the written consent of the Contractor to carry out the intent of this paragraph. The Subcontractor shall not be required under the provisions of the paragraph to keep confidential any data or information that is or becomes publicly available, is already rightfully in the Subcontractor’s possession, is independently developed by the Subcontractor outside the scope of the contract, or is rightfully obtained from third parties.
b. Confidential Information of Applicants:
It shall be presumed that all information (including an applicant’s photo identification, photographic likeness, and thumb scan image) acquired by Subcontractor, from whatever source, relating to individual applicants for any grant, loan, or other programs administered under this Contract, (“Confidential Applicant Data”) be deemed as confidential and protected from access, disclosure or use other than in compliance with this Subcontract. “Confidential Applicant Data” includes, but is not limited to, one’s social security number, full name and address, date of birth, driver’s licenses number, bank account number(s), etc. “Confidential Applicant Data” is included within the term Confidential Information, and shall be entitled to all protections provided Confidential Information, as well as all other increased protections provided herein.
Summaries of applicant information compiled in an aggregate fashion which cannot be used to identify an individual may be reported as directed by OCD through the Contractor by Subcontractor in its performance of this Subcontract.
Other than as directed in writing by OCD through the Contractor, only Subcontractors’ employees with a defined need to know shall be granted access to Confidential Applicant Data and only after they have been informed of the confidential nature of the Confidential Applicant Data and successfully passed background checks. The level of access of such individuals shall be dictated by the level of their defined need to know.
Confidential Applicant Data shall not be distributed, disclosed or conveyed to any subcontractor except those subcontractors who have a defined need to know the Confidential Applicant Data.
c. Duties to Monitor and Report Security Breach or Unauthorized Release Use or Release of Information
Contractor and its subcontractors shall implement monitoring plans to detect unauthorized access to or use of Confidential Information or any attempts to gain unauthorized access to Confidential Information. Subcontractor shall provide Contractor with immediate notification (not more than 24 hours) of Subcontractor’s awareness of any security incident (“Security Incident”) involving Confidential Information. The reference to Security Incident herein may include, but not be limited to the following: successful attempts at gaining unauthorized access to Confidential Information, or the unauthorized use of a system for the processing or storage of Confidential Information, or the unauthorized use or disclosure, whether intentional or otherwise, of Confidential Information.
In the event of unauthorized access to or disclosure of information, Contractor, as well as any subcontractor, involved in a Security Incident, shall consult with Contractor regarding the necessary steps to address the factors giving rise to the Security Incident and to address the consequences of such Security Incident.
Nothing in this Subcontract shall be deemed to affect any rights an individual applicant may have under any applicable state or federal law concerning the unauthorized access, use or disclosure of Confidential Applicant Data.
modified by OCD. Contractor shall cooperate with OCD with respect to defending against any such requested release of information or obtaining any necessary judicial protection against such release if, in the opinion of OCD, the information contains Confidential Information which should be protected against such disclosure. The legal fees and related expenses incurred by Contractor or its subcontractor in resisting the release of information shall constitute reimbursable expenses under this Contract.
d. Subcontract Agreements
Subcontractor shall obtain agreements by all subcontractors to be bound by the terms of this agreement. In addition, those
RFP – Fund Repayment Services Page 19 of 25 March 11, 2008
subcontractors who have a need to know Confidential Applicant Data shall be required to agree to all the terms of this Section.
e. Non-confidential Data and Data Obtained from Third Parties
In the event Confidential Applicant Data is or becomes part of the public domain, other than as a result of a Security Incident, Subcontractors shall continue to treat such information as private and avoid the unnecessary use or release of such information unrelated to the performance under the Subcontract. .
f. Limitations on Copying; Delivery of Confidential Information to OCD; Destruction of Database; Obligations Against Use and Disclosure Survive Termination of Contract
No copies or reproductions shall be made of any Confidential Information except to effectuate the purposes of this Subcontract or upon the prior approval of Contractor. Subcontractors shall not make use of any Confidential Information for their own benefit or for the benefit of any third party, except as directed by Contractor in writing.
In accordance with Section 13.0 of the Contract, as between the Contractor and the Client, all Confidential Information, is deemed to be the property of the Client.
Upon termination or expiration of the Subcontract, all databases and other storage media containing Confidential Applicant Data shall be delivered to the Client, who shall retain such information for the periods of time then required in accordance with any applicable state and federal statutes and regulations controlling such record retention. Subcontractors shall not keep any copies of the Confidential Applicant Data in any medium format; upon delivery of the Confidential Applicant
Data to the Client under this provision, Subcontractor shall certify under penalty of perjury that no copies of the Confidential Applicant Data have been retained. Any exceptions to this provision must be approved in writing by the Contractor, and shall set forth the scope of data required to be retained, the reasons justifying such retention, and the terms and conditions of such retention.
The obligations under this section and all subsections thereof shall survive the termination or expiration of the Contract.
g. OWNERSHIP
No materials, to include but not limited to reports, maps, or documents produced as a result of this Contract, in whole or in part, shall be available to Contractor for copyright purposes. Any such materials produced as a result of this Subcontract that might be subject to copyright shall be the property of the Client and all such rights shall belong to the Client.
All records, reports, documents and other material delivered or transmitted to Subcontractor by Contractor shall remain the property of the Client, and shall be returned by Contractor to, at Subcontractor's expense, at termination or expiration of this Subcontract.
35. COMPLIANCE WITH CIVIL RIGHTS LAWS
The Subcontractor agrees to abide by the requirements of the following as applicable: Title VI and Title VII of the Civil Rights Act of 1964, as amended by the Equal Opportunity Act of 1972, Federal Executive Order 11246 and all rules and regulations by the Secretary of Labor in Section 201 of E.O. 11246, the Federal Rehabilitation Act of 1973, as amended, the Vietnam Era Veteran’s Readjustment Assistance Act of 1974, Title IX of the Education Amendments of 1972, the Age Discrimination Act of 1975, and Subcontractor agrees to abide by the requirements of the Americans with Disabilities Act of 1990. Subcontractor agrees not to discriminate in its employment practices, and will render services under this Subcontract without regard to race, color, religion, sex, national origin, sexual orientation, veteran status, political affiliation, or disabilities. Any act of discrimination committed by Subcontractor, or failure to comply with these statutory obligations when
applicable, shall be grounds for termination of this Subcontract.
36. GOVERNING LAW.
This Agreement shall be construed and interpreted in accordance with the laws of the State of Louisiana without regard to principles of conflicts of laws.
37. COMPLIANCE WITH FEDERAL, STATE AND LOCAL GUIDELINES
The Subcontractor hereby binds itself, certifies, and gives its assurance that it will comply with all federal and State regulations, policies, guidelines and requirements, as they relate to the application, acceptance and use of state and federal resources for the State assisted project. The Subcontractor further agrees to comply with applicable laws, ordinances, and codes of federal and local governments.
Without limiting the regulations which Subcontractor must comply with, the Parties recognize the provisions of 24 CFR Sec. 85.36, and agree that Subcontractor will take all necessary affirmative steps permitted by law to assure that minority firms, women's business enterprises, and labor surplus area firms are used when possible
38. ENFORCEABILITY.
Should any one or more of the provisions of this Agreement be determined to be illegal or unenforceable as to one or both of the Parties hereto, all other provisions nevertheless shall remain effective and binding on the Parties hereto.
39. SEVERABILITY. The invalidity of any provision hereof shall not affect the validity of any other provisions or this Agreement as a whole.
40. CONTRACT CONTROVERSIES
Any claim or controversy arising out of the Subcontract shall be resolved by the provisions of Louisiana Revised Statute 39:1524-26.
41. SECTION 109 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
No person in the United States shall on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. Section 109 further provides that discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in Section 504 of the Rehabilitation Act of 1973, as amended, is prohibited.
42. "SECTION 3" COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS OPPORTUNITIES
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(a) The work to be performed under this Subcontract is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
(b) The parties to this Subcontract agree to comply with HUD's regulations in 24 CFR Part 135, which implement section 3. As evidenced by their execution of this Subcontract, the parties to this Subcontract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations.
(c) The Subcontractor agrees to send to each labor organization or representative of workers with which the Subcontractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the Contractor's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each, and the name and location of the person(s) taking applications for each of the positions, and the anticipated date the work shall begin.
(d) The Subcontractor agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. The Subcontractor will not subcontract with any subcontractor where the Subcontractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135.
(e) The Subcontractor will certify that any vacant employment positions, including training positions, that are filled (1) after the Subcontractor is selected but before the Contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the Subcontractor's obligations under 24 CFR part 135.
(f) Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this Subcontract for default, and debarment or suspension from future HUD assisted contracts.
(g) With respect to work performed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this Subcontract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this Subcontract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b).
EXHIBIT D
DRUG SCREEN & BACKGROUND CHECK REQUIREMENTS
The following are the minimum checks required for the program. Each subcontractor should consult with their attorneys and security departments to determine the appropriate response to a criminal record being found or a positive drug screen. Employees may be ineligible for the following reasons:
• Any Felony offenses
• Pending adjudication
• Multiple misdemeanors that constitute a habitual offender
• Any offense related to the position hired i.e. burglary, theft, sexual offenses, etc.
Each subcontractor should seek legal advice on the implementation of this program. Every employer is ultimately responsible for the information that they develop. It is the employer’s responsibility to verify any records found to positively identify the applicant as the individual reported on.
Any questions should be directed to Craig Bolling, Director of Program Security, The Road Home. 225-242-1012
A. Public Criminal Records Check
• Should be accomplished by a credible third party vendor
• Employees should have a public criminal records search for a minimum of seven years. This does not preclude going further if warranted.
• The background search should be performed at the county level both circuit and district court for every county in each state that they have indicated residence.
• State wide searches where available.
RFP – Fund Repayment Services Page 21 of 25 March 11, 2008 ____________________________________________________________________________________ _____ RFP: Road Home Fund Repayment Services Page 22
• Federal Criminal searches in the federal districts correlating with residences.
• National Criminal Record Locator from National Databases
B. Employment verification
• All positions for the last seven years
• Information requested
o Was applicant ever employed?
o Dates of employment
o Title
o Earnings
o Reason employment ended
o Is applicant eligible for rehire
Drug Screens:
1. CONDITIONS FOR CONDUCTING TESTS
Drug testing may be performed for any or all of the following classes of drugs: marijuana; opioids; cocaine; amphetamines; and phencyclidine. The statutory requirements do not apply to testing for other types of drugs.
Tests must be conducted by a laboratory certified for forensic drug testing by the Substance Abuse Mental Health Services Administration (SAMHSA) or the College of American Pathologists (CAP-FUDT).
The testing must be subject to generally accepted cut off levels as established by the FDA for saliva, blood, urine, or hair testing or by SAMHSA if and when SAMHSA implements a final rule to regulate such testing.
Any saliva, blood, urine, or hair sample collected through drug testing must be subject to FDA-cleared immunoassay screening and confirmation testing at a SAMHSA-certified laboratory.
Samples that test positive must be preserved by the laboratory. These samples must be made available for challenge testing at the request of the applicant/employee donor.
Samples may not be used to collect or analyze DNA.
Cut Off Limits
The cut off limits for drug testing must meet SAMHSA guidelines, with the exception of initial testing for marijuana. The initial cut off level for marijuana must be no less than fifty nanograms/ML and no more than one hundred nanograms/ML, as specified by the employer or the testing entity.
1.1 Testing Process Requirements
1.2 Dual confirmation of test results is required.
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Testing results must go to a medical review officer. The statute defines a medical review officer as a licensed physician, responsible for receiving laboratory results generated by the employer’s drug testing program, who has knowledge of substance abuse disorders and has appropriate medical training to interpret and evaluate an individual’s positive test result together with his or her medical history and any other relevant biomedical information.
1.2.1 Restrictions on Use of Test Results
No mandatory or discretionary consequences may result for employees or prospective employees subjected only to on-site screening. Such consequences may occur based only on laboratory confirmation testing (“dual testing”).
1.2.2 Confidentiality Requirements
All information, interviews, reports, statements, memoranda, and test results received by the employer through its drug testing program must be kept confidential and are subject to limitations on disclosure in legal proceedings. Generally, disclosure is permitted in proceedings in which the drug test results are at issue.
1.2.3 Employee Rights
1.2.4 Any employee who tests positive for drugs may, upon written request, have the right of access within seven working days to records relating to his or her drug test and the results of any relevant certification, review, or suspension/revocation-of-certification proceedings.
1.2.5 Employee Remedies
For an employer with a testing program that meets the statutory requirements, employees and applicants have a cause of action for defamation, slander, or damage to reputation or privacy arising from disclosure of test results only where the following conditions are met: (1) the results were disclosed to someone other than the employer or testing entity or one of their authorized agents, or to the test subject; and (2) the disclosure was based on a false test result or failure to comply with the statute. Thus disclosure of test results should be strictly limited only to employer and testing personnel with an absolute need to know, and precautions should be taken to avoid reporting of false results.
2. REHABILITATION
Rehabilitation is permitted but not required. An employer may provide an employee who tests positive for drugs the opportunity to undergo rehabilitation without termination of employment.
2.1 Payment for Drug Tests
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State law prohibits an employer from requiring an employee or applicant to pay for a drug test. However, an employer may withhold the cost of a pre-employment drug test if the employee resigns within ninety days of starting work.
Employer Tax Credit
Employers can receive up to a five percent (5%) state income tax credit for alcohol and substance abuse treatment program expenses they incur, provided they have a written substance abuse policy.
Unemployment Compensation and Drug Testing
Unemployment compensation benefits can be denied to an employee discharged for misconduct, which includes use of controlled substances on or off the job. Refusal to submit to a drug test also is considered misconduct.
See La. Rev. Stat. §§ 23:1081, 23:1601, 23:634; 23:897, 49:1001-1012, 47:6010.
March 15, 2007
Background Checks for the Road Home
Public Criminal Records Check
• Should be accomplished by a credible third party vendor
• Employees should have a public criminal records search for a minimum of seven years. This does not preclude going further if warranted.
• The background search should be performed at the county level both circuit and district court for every county in each state that they have indicated residence.
• State wide searches where available.
• Federal Criminal searches in the federal districts correlating with residences.
• National Criminal Record Locator from National Databases
Employment verification
• All positions for the last seven years
• Information requested
o Was applicant ever employed?
o Dates of employment
o Title
o Earnings
o Reason employment ended
o Is applicant eligible for rehire
These are the minimum checks required for the program. Each sub-contractor should consult with their attorneys and security departments to determine the appropriate response
____________________________________________________________________________________ _____ RFP: Road Home Fund Repayment Services Page 25
to a criminal record being found or a positive drug screen. Employees may be ineligible for the following reasons:
• Any Felony offenses
• Pending adjudication
• Multiple misdemeanors that constitute a habitual offender
• Any offense related to the position hired i.e. burglary, theft, sexual offenses, etc
Each Contractor should seek legal advice on the implementation of this program. Every employer is ultimately responsible for the information that they develop. It is the employer’s responsibility to verify any records found to positively identify the applicant as the individual reported on.
Any questions should be directed to Craig Bolling, Director of Program Security, The Road Home. 225-242-1012
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