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McKean County’s Contractor’s Preference Section 3 Notice



Section 3 of the HUD Act of 1968, as outlined in 24 CFR 135.1, is to ensure that employment and other economic opportunities be directed to business concerns that provide economic opportunities to low and very-low income persons.                                                                  

Section 3 Business Concerns must meet one of the following criteria and be certified by the McKean County Redevelopment Authority.

  1. Business claiming Section 3 status because it is at least 51% owned by public housing/Section 8 residents or Section 3 eligible residents of the community (preferably) or County where the project is being undertaken.
  2. Business claiming Section 3 status because at least 30% of their permanent full-time employees are Section 3 eligible residents.
  3. Business claiming Section 3 status by subcontracting 25% or more of the total amount of subcontract to qualified Section 3 businesses.

This notice will serve to advise McKean County contractors and service providers that bids received from qualified Section 3 business concerns within McKean County will receive one of the following preferences:

      Awards based upon the lowest price – The contract shall be awarded to the qualified Section 3
      business concern with the lowest responsive quote/bid, if it meets the bidding requirements, is
      reasonable, is within the project budget, and no more than 10% higher that the quote/bid of the
      lowest responsive quote/bid from any qualified source. 
     Award based on factors other than price – The solicitation shall identify all factors to be considered,
      including price or cost.  The rating system shall provide for a range of 15 to 25% of the total number
      of available rating points to be set aside for the provision of preference for a Section 3 Business
      concern.  The award shall be made to the firm whose quotation/proposal is the most advantageous,
      considering all factors specified in the rating system.

McKean County contractors or service providers interested in becoming a certified Section 3 Business can contact the McKean County Redevelopment Authority, 410 East Water Street, Smethport, PA  16749-3366, (814) 887-5563.

Gay DeGolier
Community Development Coordinator
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