##### ![](media/image1.jpeg){width="7.383333333333334in" height="8.56875in"} {#section .unnumbered}

#####  {#section-1 .unnumbered}

##### Table of Contents

**Introduction** 3

1.  **Conducting a Child Care Community Needs Assessment** 4

> What is a Community Assessment? 4
>
> Why Do a Community Assessment? 5

Who Should Participate in a Community Assessment? 6

What Method Should Be Used? 7

What Information Should Be Gathered? 8

What Should a Community Assessment Report Look Like? 10

When Should the Community Assessment Process Begin? 10

2\. **Identifying a Site for the Facility** 12

> Determining a Location 12
>
> Land Ownership 13

3\. **Financing Construction and Renovation Costs** 14

Potential Funding Sources 14

Managing Multiple Funding Sources: An Overview of Cost Allocation 27

4\. **Developing a Business Plan for the Facility** 29

> Introduction 29
>
> Preparing a Strategic Plan 30

Preparing a Detailed Business Plan 32

The Business Plan Worksheet 33

> Model Business Plan Structure 34

Financial Planning 36

5\. **Conducting an Environmental Assessment** 40

> Floodplain Management 41

Wetlands Protection 42

Protection of Endangered Species 42

Toxic Chemicals and Radioactive Materials 42

Protection of Farmlands 43

Historic Preservation 43

Presence of Natural Hazards 43

Presence of Man-Made Hazards and Nuisances 45

6**. Building a Facility** 48

> Selecting and Working with an Architect 48
>
> Designing and Planning the Facility 49
>
> Hiring a Contractor 51
>
> Overseeing the Project 57

7\. **Glossary and Resources** 59

> Glossary 59
>
> Resources 78

**Table of Contents**

**List of Appendices** 82

A.  CCDF Program Instruction (ACYF-PI-CC-04-01), dated January 23, 2004

B.  CCDF Policy Interpretation Question (ACYF-PIQ-CC-99-01), dated
    February 24, 1999

C.  Sample Notice of Federal Interest

D.  Application of Title III (Public Accommodations) of the Americans
    with Disabilities Act (ADA) to the Tribes

E.  U.S. Department of Housing and Urban Development Indian Housing Area
    Office of Native American Programs (ONAP) Directory

F.  Tribal Child Care Technical Assistance Center Fact Sheet

G.  National Child Care Information Center Fact Sheet

H.  Child Care Bureau Staff List

I.  ACF Regional Office Tribal Lead Contacts List

J.  National Head Start Facilities Assistance Desk Fact Sheet

**Introduction**

## The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 allowed Tribes to use Child Care and Development Fund (CCDF) monies for the construction or renovation of child care facilities. A Tribe must first request and receive approval from the Administration for Children and Families (ACF) before using CCDF funds for construction or major renovation. Requests must follow uniform procedures (45 CFR 98.84; see ACYF-PI-CC-04-01, dated January 23, 2004 (Appendix A)).

As these procedures have been implemented over the years, Tribes and ACF
Regional Offices have identified a number of issues and needs.
Construction and renovation is a new area for many tribal child care
programs. This *Guide to Construction and Renovation* is designed to
provide technical assistance to address major areas of the process,
including:

-   Conducting a child care community needs assessment;

-   Identifying a site for the facility;

-   Financing the construction and renovation costs;

-   Developing a business plan for the facility;

-   Conducting an environmental assessment;

-   Building a facility;

-   Designing and planning for the facility;

-   Hiring a contractor; and

-   Overseeing the project.

The Department of Health and Human Services does not sponsor, endorse or
approve of any private or commercial products or services offered by
organizations appearing in this *Guide*. The inclusion of any
organizations in the *Guide* does not constitute a representation,
warranty, or endorsement concerning the competence, suitability, or
reliability of such organizations.

#  

**Chapter 1: Conducting a Child Care Community Needs Assessment**

### What is a Community Assessment?

I.  **Why Do a Community Assessment?**

II. **Who Should Participate in a Community Assessment?**

III. **What Method Should Be Used?**

IV. **What Information Should Be Gathered?**

V.  **What Should a Community Assessment Report Look Like?**

VI. **When Should the Community Assessment Process Begin?**

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A Tribal Lead Agency should conduct a community needs assessment to
determine the need for construction or renovation of a child care
facility. A community assessment usually examines the entire child care
service environment, including facility needs.

## What is a Community Assessment? 

A child care community assessment is the collection and analysis of
information on the characteristics of the eligible children and families
in the service area and the resources available to assist families in
child care services.

The emphasis of the community assessment should be on issues having the
greatest impact on the eligible child care population. It covers the
entire service area that a tribal child care lead agency is funded to
serve. It should **not** be limited to the geographical areas from which
the lead agency is drawing the children and families it is currently
serving.

A completed child care community assessment is a tool that will assist a
Tribe in making decisions about the types of child care services to be
provided in a tribal community.

I.  **Why Do a Community Assessment?**

There are several important reasons for conducting a community
assessment. They include:

-   Program planning and decision-making;

-   Documenting the eligible population;

-   Leveraging funds to support Child Care and Development Fund (CCDF)
    services;

-   Responding to changing programs and policies;

-   Establishing collaborative community partnerships; and

-   Conducting internal education for tribal officials and program
    staff.

**Program Planning and Decision-Making**

The community assessment is an integral part of the CCDF planning
process for a Tribal Lead Agency. It can be an important tool for making
decisions in a number of areas, such as:

-   Establishing a Tribal Lead Agency's mission and service goals and
    objectives;

-   Establishing plans to attain the desired goals and objectives;

-   Determining the accessibility of, and gaps in, child care services;

-   Projecting the eligible population within the service area;

-   Determining the types of program services to be offered;

-   Determining the locations of child care services within the service
    area;

-   Determining the marketing and recruitment priorities; and

-   Establishing need for construction and renovation of facilities.

Decisions will cover different time spans. The Tribal Lead Agency's
two-year CCDF plan requires that decisions are made for a two-year
period. The lead agency should be engaging in long-term strategic
planning for management tasks requiring extended lead times, such as
planning for and developing new facilities, expanding services,
increasing and changing the types of services provided, and revising the
method and criteria for determining eligibility.

## Documenting the Eligible Population

Documenting the number of eligible children within a tribal community is
an annual CCDF funding requirement. Collecting this data will assist the
Tribal Lead Agency in projecting future trends of the child care
population. Understanding trends in the target population provides the
lead agency with information to design program services that adequately
meet community needs. For example, projections for a significant
increase in infant/toddler or school-age children might affect the types
and locations of services offered.

## Leveraging Funds to Support CCDF Services

Supplemental resources can support innovative methods for educating
child care consumers, extending child care services, meeting specialized
service needs of participating children and their families, and/or
implementing collaborative working relationships. Most decisions about
child care services will be made by the Tribal Lead Agency relative to
its existing resources. Nevertheless, information gleaned from a
community assessment can be used to plan new programs and support other
applications for public and private funding.

## Responding to Changing Programs and Policies

Understanding the environment in which child care services are provided
allows the lead agency greater flexibility in meeting the demands of
funding agencies and the needs of the eligible population. For example,
having conducted a community assessment, a Tribal Lead Agency will be
more equipped to respond to new program regulations, or develop funding
proposals based on the needs of the community.

**Establishing Collaborative Community Partnerships**

The community assessment can assist the Tribal Lead Agency in
collaborative efforts with various other agencies operating within the
service area. The process of collecting information and opinions from
these community resources can help to develop and enhance personal ties
with the staff in these agencies. Information about the programs
operated by these other agencies can be used to develop effective
referral services for CCDF families and to establish partnerships that
help provide a seamless array of early care and education services to
families in the service area.

## Conducting Internal Education for Tribal Officials and Program Staff

The community assessment information can be used to educate staff,
parents, tribal council members, consortium board members, early
childhood service providers, and other community leaders about the needs
of CCDF-eligible families. The assessment highlights the strength of the
community and indicates where there are gaps in services. The
information can be used to support the efforts undertaken by the Tribal
Lead Agency during the public hearing process for the CCDF two-year
plan.

II. **Who Should Participate in a Community Assessment?**

The Tribal Lead Agency has great flexibility in designing its community
assessment, which includes determining who should be involved in the
process. The community assessment process should involve different types
of people. They may include, but should not be limited to:

-   **CCDF staff**: This planning function is an administrative activity
    for which the CCDF director has the operating responsibility. Other
    child care management staff, where they exist, should participate
    actively in collecting and analyzing information.

-   **Tribal Staff (Non-CCDF):** Depending on the structure and
    organization of the Tribal Lead Agency, technical staff such as
    planners or information management specialists may be called upon to
    participate in the process. Directors of other tribal human services
    programs may be kept informed or asked to participate in appropriate
    ways.

-   **Decision-Making Bodies**: The tribal council and any of its
    relevant special committees should be consulted regarding the plan
    for conducting a community assessment. Members of these bodies may
    be asked to participate directly in collecting, analyzing, or
    interpreting information as individuals or as part of an existing
    advisory committee.

-   **Consultants, Volunteers, or Students**: While most Tribal Lead
    Agencies are capable of planning, conducting, and preparing a
    community assessment without outside assistance, the CCDF management
    staff may choose to seek assistance to accomplish this activity. If
    outside help is used, care must be given to coordinating and
    supervising the work to be accomplished. Outside assistance should
    not substitute for the active involvement of the CCDF director
    and/or other management staff.

-   **Other Early Childhood and Support Agencies:** Joint efforts can be
    undertaken through collaborative efforts of the various providers of
    early childhood programs within the tribal community. Private and
    public agencies can share considerable information on the needs of
    the CCDF service populations. The CCDF lead agency can provide
    similar information to other service programs within tribal
    communities.

III. **What Method Should Be Used?**

Decisions about how to plan and conduct a community assessment will
depend on the size and characteristics of the Tribal Lead Agency.
Choices may include utilizing existing structures such as existing
advisory committees or an existing group within the Tribe's planning
department; or establishing a special community assessment committee or
design team. In designing the community assessment, it is important to:

-   Determine the desired results and outcomes of the assessment;

-   Determine the best use of time and resources;

-   Outline tasks, assign responsibilities, and establish timelines; and

-   Include the correct mix of community agencies in the planning
    process.

Community assessment preparations should also take into account the
number of staff, volunteers, and students that will be used to implement
the assessment, analyze the information, and prepare a community
assessment document.

V.  **What Information Should Be Gathered?**

There is no required process to be used in conducting an assessment of
child care services by a Tribal Lead Agency, nor is there a required
format for reporting the community assessment findings. The CCDF
regulations, program instructions, information memoranda, and CCDF Plan
requirements should be reviewed to determine what information to include
in the community assessment.

The tribal plan preprint and instructions provide guidance on
information that must be gathered by Tribal Lead Agencies in planning
for the provision of child care services. For example, data to be
gathered to support the services outlined in the Tribal Plan include:

-   Number of eligible children under age 13 residing within the defined
    service area;

-   Information on the special needs of children in the service area
    population;

-   Demographic information on the eligible population, including health
    needs, education levels, economic status, employment, and
    participation in workforce development activities and/or Temporary
    Assistance for Needy Families (TANF);

-   Types of early care and education services provided within the
    service area;

-   Rates charged for child care in the service area (based on market
    rate survey);

-   Documentation of the income levels used by the lead agency for
    determining eligibility;

-   Health and safety standards governing the community's child care
    programs; and

-   Number and types of community resource agencies that may provide
    supportive services to CCDF families and may be participating in
    collaborative activities with the Tribal Lead Agency.

Information on a number of these items could be gathered using the
community assessment. The Tribal Lead Agency may decide to include other
information, as well, such as information required to apply to use CCDF
funds for construction or renovation of a child care facility.

## Information Sources for Community Assessment

Data to be used in a child care community needs assessment may be
obtained from clients, from competitors (if applicable) and other
community agencies providing similar services, and by researching local
demographic information. Within each of these areas, information can be
gathered to support a lead agency's decision-making processes.

**Client Information**

Information gathered from current and potential clients can provide
valuable information about child care services. Consumers of child care
services have opinions regarding the service they receive and can
provide a wealth of information that can assist a Tribal Lead Agency and
child care providers. Client information can be gathered through client
satisfaction surveys, meetings, interviews, or a mix of these methods.
Information gathered from clients can be used to identify and prioritize
issues that need to be addressed by the lead agency and/or providers; to
determine lead agency goals, objectives, and activities; and to identify
areas of focus for quality improvement efforts.

Input from families not currently using child care services can help the
lead agency improve program options and identify potential geographic
areas in need of expanded services. If some of the lead agency's
services are being underutilized, information from these families can
help the lead agency understand why.

## Community Agency Information

Useful information can be obtained from various community agencies
within and outside of the Tribe including, but not limited to, Head
Start programs; child welfare agencies; social service agencies;
education agencies; workforce development/employment and training/TANF
agencies; health and wellness agencies; and Indian Health Service.
Information from these community partners can be gathered through
interviews, written questionnaires, or meetings with agency
representatives.

Information on the availability and accessibility of community resources
to support child care families, which can be attained from these
agencies, can be used to determine the information and referral services
needed within a community. This information can also be used to develop
collaborative working relationships between the CCDF lead agency and
others serving CCDF families, and can lead to the sharing and blending
of resources to create a more seamless continuum of child care services.

Community agencies also can be valuable partners in providing resources
to child care providers for quality improvements, family advocacy
efforts, and strategies for enhanced service delivery.

**Demographic Information**

Demographic information about the lead agency's service area can assist
a lead agency in identifying and prioritizing issues that need to be
addressed, the types of child care services to provide, the best place
to locate child care programs, and how to market the program to the
service area population. It can help the lead agency establish its
overall goals and objectives for the CCDF program. Some potentially
useful data types and sources are noted below.

-   Demographic data on the service area's population, basic economic
    activities, location, poverty levels, and future trends can be
    located in the Tribe's overall economic development plan or tribal
    action plan. This general background information for the community
    assessment may be obtained from the tribal planning department,
    tribal census office, and/or the U.S. Census Bureau.

-   Data related to unemployment rates, number of public assistance
    recipients, protective service caseloads, infant mortality rates,
    the condition of housing and public facilities, and environmental
    assessments may be obtained from various tribal agencies and
    programs, the Indian Health Service, the Bureau of Indian Affairs,
    and various county or state agencies.

-   Information on the tribal service area's racial/ethnic composition
    can be obtained from the U.S. Census Bureau and its updates; the
    tribal census office; and tribal, BIA, public, and private school
    systems.

-   Information on the number of children served by other early
    childhood programs and the characteristics of these programs can be
    obtained from tribal and state licensing agencies; local Head Start
    and Early Head Start programs; child care resource and referral
    agencies; and local school districts.

-   Other data may be gleaned from the lead agency's Child Care and
    Development Fund Annual Report (Form ACF-700 and Supplemental
    Narrative). This annual report, submitted to the federal government
    each December, provides aggregate information on CCDF program
    services.

## What Should a Community Assessment Report Look Like?

There are no requirements regarding the format, length, or content of a
written community assessment report. The assessment should only address
the issues and concerns of the children and families who make up the
lead agency's service area population. It should be long enough to be
comprehensive, yet short enough so that the report will be used by
decision-makers. As a general guide, a report from a small to medium
size Tribal Lead Agency may be 10--30 pages. A report from a larger
tribal agency may be between 20-50 pages and would include an executive
summary. The suggested page length does not include graphics, charts, or
exhibits.

## When Should the Community Assessment Process Begin?

The tribal lead agency must take into consideration a variety of
management and program activities and requirements when scheduling the
community assessment process. Typically, the planning of the community
assessment process must take into account the timeframe for developing
and submitting the biennial tribal CCDF plan preprint (due by July 1 in
alternate years) and the annual funding application (July 1 of non-plan
years). This includes the scheduling of required public hearings and the
time needed for seeking tribal council approval of the CCDF plan
preprint.

Generally the lead agency should plan to begin the community assessment
process at least 10 months prior to the scheduled submission of the
tribal plan preprint. Allowing more than 10 months for completing the
entire community assessment process will permit a more thorough and
accurate analysis of the information collected and should provide lead
agency staff with sufficient time to draft a comprehensive summary
report.

**Chapter 2: Identifying a Site for the Facility**

I.  **Determining a Location**

######## Land Ownership

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## Determining a Location

Selecting the location for a child care facility is crucial to the
success of the program. The site should be convenient for parents, safe
for children, and close to other community programs and services. The
first step in identifying a child care site should be to carefully
review the information gathered through the community assessment to
determine:

-   How many children (by age) potentially need child care?

-   Where do the families live?

-   Where do the parents work and/or attend school?

-   Where do 6- to 12-year-old children attend school?

When determining the convenience of a location, the lead agency should
consider:

-   Transportation routes for public and/or tribal transit systems, Head
    Start and elementary school buses, etc.;

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-   Routes parents most often use to travel to work, school, the grocery
    store, etc.;

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-   Distance from elementary schools, Head Start, and other part-day
    programs for children;

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-   Distance from food service, if meals will not be prepared on site;
    and

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-   Distance from health and emergency services.

    Some sites should be avoided since they may pose health or safety
    risks to children.\
    For example, the lead agency should avoid choosing:

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-   Property adjacent to a major highway, near a landfill or dump, or
    near a business that may produce toxic fumes or pose other health
    threats to children;

-   Isolated property that is not easily accessible for parents, staff,
    or emergency vehicles;

-   Property that lacks a safe water supply; and

-   Property in a floodplain, or one that tends to have pools of
    standing water.

There are also financial factors to consider such as:

-   The cost of bringing utilities (water, electric, gas/propane, sewer,
    telephone) onto the property, including soil, water, and other
    environmental tests.

-   The cost of preparing the site for construction, such as removing
    old buildings, leveling the ground, upgrading roads leading to the
    site, and grading and surfacing driveways and parking lots.

## Land Ownership

Once a general location has been identified, the next step is to
determine who owns the specific property and whether the owner is
willing to sell, lease, or donate the property for a tribal child care
center.

If the land is located within the boundaries of a reservation, the
Bureau of Indian Affairs (BIA) Realty Office should be able to identify
the land owner or verify that the land is tribal trust property.
Permission to use tribal trust property is generally granted by the
Tribal Government with approval from BIA. Some individual property
owners will be able to negotiate the use of their property while others
may need the approval of the BIA and/or Tribal Government. This process
will vary from Tribe to Tribe. The BIA Realty Office or the Tribal
Government can provide the specific tribal procedures that should be
followed for gaining permission to construct on reservation lands.

To identify the owner of off-reservation property, a records search can
be conducted at the county courthouse.

Other entities that may own property suitable for a child care center
include school districts; churches; and city, county, or state
governments. They may be willing to donate or lease property for such a
project, especially if the larger community will benefit. Businesses
will sometimes donate property for a tax break or to promote good will
in the community.

Before using funds for the purchase or lease of land, contact the
funding source to determine if such use is allowable. The Tribe may want
to consider long-term land lease agreements for modular structures but
not for permanent construction. Any contract for the purchase, lease, or
donation of land should be between the Tribal Government and the current
land owner. Agreements should be in writing and reviewed by a lawyer.

##### Chapter 3: Financing Construction and Renovation Costs 

# 

# 

# Potential Funding Sources

# Managing Multiple Funding Sources: An Overview of Cost Allocation

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######## Potential Funding Sources

# Program Funding: Loans for Construction, Renovation, and Land Purchase

The *Catalog of Federal Domestic Assistance* is an annual
government-wide compendium of federal programs, projects, services, and
activities. The listings in this section include the program name and
*Catalog of Federal Domestic Assistance* (CFDA) number (in parentheses);
the eligibility requirements for the program; the total funds available
per year for the program; the uses, requirements, and limitations of the
program; and contact information.

For more detailed information about these programs, visit the CFDA on
the Web at **http://www.cfda.gov** and query the catalog on the CFDA
number.

Please note that this list is not comprehensive and is only accurate as
of the date this document was published. A Tribal Lead Agency should
explore all of its funding options and community needs thoroughly before
applying for funds for a specific project.

**Business and Industry Guaranteed Loans (10.768)**

**Eligibility**: Assistance under the Business and Industry (B&I)
Guaranteed Loan Program is available to virtually any legally organized
entity, including Indian Tribes and Federally recognized tribal groups.
Preference is given to loans in open country, rural communities, and
towns with populations of 25,000 or less.

**Total Funds Available per Year**: Approx. \$1,000,000,000/FY2004 est.

**Range of Financial Assistance**: \$35,000 to 25,000,000

**Average of Financial Assistance**: \$2,100,000

**Child Care Related Uses/Requirements/Limitations**:

This program provides guarantees up to 80 percent of a loan made by a
commercial lender. Loan proceeds may be used for working capital,
machinery and equipment, buildings and real estate, and certain types of
debt refinancing.

Loans may not be guaranteed to pay off a creditor in excess of the value
of the collateral; for distribution of payment to the owner; or for the
transfer of ownership of a business unless the loan will keep the
business from closing, prevent the loss of employment opportunities in
the area, or provide expanded job opportunities; etc.

**Regional or Local Office Contacts**:

Contact the appropriate Rural Development State Office

<http://www.rurdev.usda.gov/recd_map.html>

**Headquarters Office Contact**:

Administrator, Rural Business-Cooperative Service

U.S. Department of Agriculture

Washington, DC 20250‑3201

\(202\) 690‑4730

<http://www.rurdev.usda.gov/rbs/busp/b&i_gar.htm>

**Child Care and Development Fund Discretionary Fund (93.575)**

**Eligibility**: States, the District of Columbia, Territories,
Federally recognized Tribal governments, Tribal organizations, Alaska
Native organizations, and Native Hawaiian organizations.

**Total Funds Available per Year**: \$2,082,921,248/FY2005 est. (These
figures do not include CCDF mandatory funds under 93.596.)

**Range of Financial Assistance**: For Tribal grantees, \$22,981 to
\$12,444,658/FY05 est. (based on a formula). (These figures are
inclusive of funds received through 93.575 and 93.596.)

**Average of Financial Assistance**: For Tribal grantees, \$369,000/FY05
est. (based on a formula). (These figures are inclusive of funds
received through 93.575 and 93.596.)

**Child Care Related Uses/Requirements/Limitations**:

Grantees must operate under a plan approved by the U.S. Department of
Health and Human Services (HHS), and must certify compliance with all
federal regulations governing the payments under the Child Care and
Development Fund. Only approved construction of child care facilities by
Tribal grantees is an allowable construction use of funds.

**Regional or Local Office Contacts**:

Regional ACF Administrators

<http://www.acf.hhs.gov/programs/ccb/ta/raaddr/raaddr.htm>

**Headquarters Office Contact**:

Child Care Bureau

Office of Family Assistance

Administration for Children and Families

U.S. Department of Health and Human Services

Portals Bldg., 8th Floor

1250 Maryland Ave. SW

Washington, DC 20024

\(202\) 690-6782\
<http://www.acf.hhs.gov/programs/ccb/>

**Child Care Mandatory and Matching Funds of the Child Care and
Development Fund (93.596)**

**Eligibility**: Federally Recognized Tribal Governments, Tribal
organizations, and Alaskan Native Corporations.

**Total Funds Available per Year**: \$2,717,000,000/FY2005 est. (These
figures do not include CCDF mandatory funds under 93.596.)

**Range of Financial Assistance**: For Tribal grantees, \$22,981 to
\$12,444,658/FY05 est. (based on a formula). (These figures are
inclusive of funds received through 93.575 and 93.596.)

**Average of Financial Assistance**: For Tribal grantees, \$369,000/FY05
est. (based on a formula). (These figures are inclusive of funds
received through 93.575 and 93.596.)

**Child Care Related Uses/Requirements/Limitations**:

Grantees must operate under a plan approved by the U.S. Department of
Health and Human Services (HHS), and must certify compliance with all
federal regulations governing the payments under the Child Care and
Development Fund.

Only approved construction of child care facilities by Tribal grantees
is an allowable construction/renovation use of funds.

**Regional or Local Office Contacts**:

Regional ACF Administrators

<http://www.acf.hhs.gov/programs/ccb/ta/raaddr/raaddr.htm>

**Headquarters Office Contact**:

Child Care Bureau

Office of Family Assistance

Administration for Children and Families

U.S. Department of Health and Human Services

Portals Bldg., 8th Floor

1250 Maryland Ave. SW

Washington, DC 20024

\(202\) 690-6782\
<http://www.acf.hhs.gov/programs/ccb/>

**Indian Community Development Block Grant (ICDBG) (14.862)**

**Eligibility**: Tribes, Tribal organizations and Alaska Native villages
that are eligible for assistance under the Indian Self-Determination and
Education Assistance Act, or that had been eligible under the State and
Local Fiscal Assistance Act of 1972.

**Total Funds Available per Year**: \$68,448,000/FY2005 est.

**Range of Financial Assistance**: \$177,274 to \$4,950,947/FY2003 est.

**Average of Financial Assistance**: \$600,000/FY2003 est.

**Child Care Related Uses/Requirements/Limitations**:

ICDBG funds may be used for: public facilities and improvements \...
acquisition, construction, reconstruction, rehabilitation or
installation of public facilities and improvements, \... to improve the
housing stock, provide community facilities, make infrastructure
improvements, and expand job opportunities by supporting economic
development.

Activities that are eligible for funding include housing rehabilitation,
\... construction of Tribal and other facilities for single or
multi-use, streets and other public facilities, and economic development
projects particularly those by nonprofit tribal organizations or local
development corporations when the recipient determines that the
provision of such assistance is appropriate to carry out an economic
development project.

**Regional or Local Office Contacts**:

Contact the appropriate U.S. Department of Housing and Urban Development
(HUD) Office of Native American Programs (ONAP) Field Office (Appendix
E)

<http://www.hud.gov/offices/pih/ih/onap/area_onap.cfm>

**Headquarters Office Contacts**:

U.S. Department of Housing and Urban Development

Office of Native American Programs, Washington Office

451 Seventh Street, Room 4126

Washington, D.C. 20410

\(202\) 401-7914 (alternate numbers: (202) 401-7915 and (202) 401-7916)

**OR**

Office of Native American Programs, National Program Office

1670 Broadway, 23rd Floor

Denver, CO 80202

Phone: (303) 675-1600 or 1-800-561-5913

<http://www.hud.gov/offices/pih/ih/codetalk/onap/>

**Community Facilities Loans and Grants (10.766)**

**Eligibility**: Federally recognized Tribes; Indian Tribes on state or
federal reservations; City, county, and State agencies; and others.

**Total Funds Available per Year**:

Direct Loans: \$300,000,000/FY2006 est.

Guaranteed Loans: \$210,000,000/FY2006 est.

Grants: \$ 17,000,000/FY2006 est.

**Range of Financial Assistance**:

Direct Loans: \$5,000 to \$4,500,000

Guaranteed Loans: \$50,000 to \$12,000,000

Grants: \$1000 to \$100,000

**Average of Financial Assistance**:

Direct Loans: \$442,192

Guaranteed Loans: \$859,283

Grants: \$31,937

**Child Care Related Uses/Requirements/Limitations**:

Community facilities include but are not limited to those providing or
supporting overall community development such as child care facilities,
food recovery and distribution centers; assisted-living facilities;
group homes, mental health clinics, and shelters; and education
facilities. Projects comprise community, social, cultural,
transportation, industrial park sites, fire and rescue services, access
ways, and utility extensions. All facilities financed in whole or in
part with Rural Housing Service funds shall be for public use.

**Regional or Local Office Contacts**:

Contact the appropriate Rural Development State Office or Field Office

<http://www.rurdev.usda.gov/recd_map.html>

**Headquarters Office Contact**:

Housing and Community Facilities Programs National Office

U.S. Department of Agriculture

Room 5037, South Building

14th Street and Independence Avenue, S.W.

Washington, D.C. 20250

\(202\) 720-4323

<http://www.rurdev.usda.gov/rhs/>

**Indian Economic Development (15.032)**

**Eligibility**: Federally Recognized Indian Tribal Governments.

**Total Funds Available per Year**: \$1,834,000/FY2006 est.

**Range of Financial Assistance**: \$5,000 to \$300,000

**Average of Financial Assistance**: \$215,000

**Child Care Related Uses/Requirements/Limitations**:

Funds are used to administer tribal revolving loan programs and guaranty
loan programs in order to develop resources to improve access to capital
in tribal economies. Funds can also be used by Federally Recognized
Indian tribal Governments to develop essential tribal ordinances and
commercial business codes which provide the necessary separation and
exercise of sovereign immunity between business activities and tribal
regulatory activities to promote a pro-business environment.

**Regional or Local Office Contacts**:

Applications should be filed with the local Bureau of Indian Affairs
agency office

**Headquarters Office Contact**:

Deputy Assistant Secretary, Policy and Economic Development

Bureau of Indian Affairs

U.S. Department of the Interior

1849 C Street NW, MS-4071 MIB

Washington, DC 20240

\(202\) 219-0005

<http://www.doi.gov/bureau-indian-affairs.html>

**Indian Housing Block Grants (14.867)**

**Eligibility**: Indian Tribes or tribally designated housing entities
(TDHE) (to be eligible for Indian housing block grant funds the Tribe or
TDHE must submit an Indian housing plan that is in compliance with the
requirements of Section 102 of the Native American Housing Assistance
and Self-Determination Act (NAHASDA) of 1996).

**Total Funds Available per Year**: \$582,600,000/FY2006 est.

**Range of Financial Assistance**: \$25,000 to \$88,388,466

**Average of Financial Assistance**: \$1,662,989

**Child Care Related Uses/Requirements/Limitations**:

Eligible activities include housing development, assistance to housing
developed under the Indian Housing Program, housing services to eligible
families and individuals, crime prevention and safety, and model
activities that provide creative approaches to solving affordable
housing problems.

**Regional or Local Office Contacts**:

Contact the appropriate ONAP Field Office (Appendix E)

<http://www.hud.gov/offices/pih/ih/onap/area_onap.cfm>

**Headquarters Office Contact**:

Office of Native American Programs, Washington Office

U.S. Department of Housing and Urban Development

451 Seventh Street SW, Room 4126

Washington, DC 20410

\(202\) 401-7914 (alternate numbers: (202) 401-7915 and (202) 401-7916)

**OR**

Office of Native American Programs, National Program Office

1670 Broadway, 23rd Floor

Denver, CO 80202

Phone: (303) 675-1600 or 1-800-561-5913

<http://www.hud.gov/offices/pih/ih/codetalk/onap/>

**Indian Loans -- Economic Development (15.124)**

**(Loan Guaranty Program)**

**Eligibility**: Federally Recognized Indian Tribal Governments, Native
American Organizations authorized by Indian tribal governments, and
individual American Indians

**Total Funds Available per Year**: \$6,348,000/FY2006 est.

**Range of Financial Assistance**:

For individuals and tribal enterprises: \$2,500 to \$500,000

For Federally Recognized Tribal Governments and Native American
Organizations: \$10,000 to \$12,000,000

**Average of Financial Assistance**:

For individuals and tribal enterprises: \$125,000

For Federally Recognized Tribal Governments and Native American
Organizations: \$1,500,000

**Child Care Related Uses/Requirements/Limitations**:

Loans may be used to finance commercial, industrial, agricultural, or
business activities organized for profit. Funds may not be used for
speculation. The financial assistance must be used on or near an Indian
Reservation.

**Regional or Local Office Contacts**:

Lenders must submit applications to the local Bureau of Indian Affairs
agency office or to the Tribal Government administering the program.

[http://www.doi.gov/bia/Loan%20Guaranty%20Brochure.pdf](http://www.doi.gov/bia/Loan Guaranty Brochure.pdf)

**Headquarters Office Contact**:

Office of Economic Development

Bureau of Indian Affairs

U.S. Department of the Interior

1849 C Street NW, MS-4640-MIB

Washington, DC 20240

\(202\) 208‑5324

<http://www.doi.gov/bureau-indian-affairs.html>

**Indian Tribes and Tribal Corporation Loans (10.421)**

**Eligibility**:

Federally recognized Tribes or Tribal corporations or Alaskan
communities that meet specific criteria. The Tribe must be unable to
obtain sufficient credit elsewhere at reasonable rates and terms and
must be able to show reasonable prospects of repaying the loan as
determined by an acceptable repayment plan and a satisfactory management
plan for the land being acquired.

**Total Funds Available per Year**: \$2,000,000/FY2006 est.

**Range of Financial Assistance**: \$450,000 to \$2,000,000

**Average of Financial Assistance**: \$224,000

**Child Care Related Uses/Requirements/Limitations**:

Loan funds may be used to acquire land and interest therein for the use
of the Tribe or its members. Funds may also be used for incidental costs
connected with land purchase. Loan funds may be used to refinance
non-United States Department of Agriculture preexisting debts that
applicant incurred to purchase land subject to certain conditions. Loan
funds cannot be used for any improvement or development purposes,
acquisition or repair of buildings, payment of operating costs, payment
of finder\'s fees, or similar costs.

**Regional or Local Office Contacts**:

Contact the appropriate Farm Service Agency (FSA) State Office

<http://www.fsa.usda.gov/FSA/stateOffices?area=stoffice>

**Headquarters Office Contact**:

Director, Loan Servicing and Property Management Division

Farm Service Agency

U.S. Department of Agriculture

Ag Box 0523

Washington, DC 20250

\(202\) 720‑ 4572

[http://www.fsa.usda.gov](http://www.fsa.usda.gov/)

**Intermediary Relending Program (10.767)**

**Eligibility**: Eligible intermediaries may include: Private nonprofit
organizations, State or local governments, and Federally recognized
Indian Tribes and cooperatives.

**Total Funds Available per Year**: \$34,212,000/FY2006 est.

**Range of Financial Assistance**: \$3,000 to \$615,000

**Average of Financial Assistance**: \$19,684

**Child Care Related Uses/Requirements/Limitations**:

An entity that receives an Intermediary Relending Program (IRP) loan
from the Rural Business-Cooperative Service (RBS) is referred to as an
intermediary. Intermediaries must relend all of the loan funds received
from the IRP loan for business facilities or community development in
rural areas. An entity that receives a loan from an intermediary is
referred to as an ultimate recipient. The maximum loan to any one
intermediary is \$2 million. The maximum term is 30 years and the
interest rate is 1 percent per annum. Intermediaries may not use IRP
funds to finance more than 75 percent of the cost of an ultimate
recipient\'s project or for a loan of more than \$250,000 to one
ultimate recipient. (No more than 25 percent of an IRP loan approved may
be used for loans to ultimate recipients that exceed \$150,000.)

**Regional or Local Office Contacts**:

Contact the appropriate Rural Business-Cooperative Service (RBS) State
Office or Field Office

<http://www.rurdev.usda.gov/recd_map.html>

**Headquarters Office Contact**:

Rural Business-Cooperative Service

U.S. Department of Agriculture

1400 Independence Avenue, SW, South Building, Room 5050

Washington, DC 20250‑0700

\(202\) 720-1400

<http://www.rurdev.usda.gov/rbs/busp/irp.htm>

**Rural Development Grants (10.769)**

**Eligibility**: Public bodies and nonprofit corporations serving rural
areas such as States, counties, cities, townships, and incorporated
towns and villages, boroughs, authorities, districts and Indian Tribes
on Federal and State reservations which will serve rural areas. Rural
area for this program is defined as a city, town, or unincorporated area
that has a population of 50,000 inhabitants or less, other than an
urbanized area immediately adjacent to a city, town, or unincorporated
area that has a population in excess of 50,000 inhabitants.

**Total Funds Available per Year**: \$39,827,899/FY2005 est.

**Range of Financial Assistance**: \$2,000 to \$500,000

**Average of Financial Assistance**: \$83,309

**Child Care Related Uses/Requirements/Limitations**:

Rural business enterprise grant (RBEG) funds may be used to create,
expand or operate rural distance learning networks or programs that
provide educational or job training instruction related to potential
employment or job advancement to adult students; develop, construct or
acquisition land, buildings, plants, equipment, access streets and
roads, parking areas, utility extensions, necessary water supply and
waste disposal facilities; refinancing; services and fees; and to
establish a revolving loan fund. All uses must assist a small and
emerging private business enterprise.

**Regional or Local Office Contacts**:

Contact the appropriate Rural Development State Office or Field Office

<http://www.rurdev.usda.gov/recd_map.html>

**Headquarters Office Contact**:

Director, Specialty Lenders Division

Rural Business-Cooperative Service

U.S. Department of Agriculture

Washington, DC 20250-3222

\(202\) 720‑1400

<http://www.rurdev.usda.gov/rbs/busp/rbeg.htm>

**Economic Adjustment Assistance (11.307)**

**Eligibility**: Economic Development Districts; States, cities or other
political subdivisions of a State or a consortium of political
subdivisions; Indian Tribes or a consortium of Indian Tribes;
institutions of higher learning or a consortium of such institutions; or
public or nonprofit organizations or associations acting in cooperation
with officials of a political subdivision of a State.

**Total Funds Available per Year**: \$44,793,000/FY2005 est.

**Range/Average of Financial Assistance**: No specific minimum or
maximum

**Child Care Related Uses/Requirements/Limitations**:

To assist State and local interests design and implement strategies to
adjust or bring about change to an economy. Program focuses on areas
that have experienced or are under threat of serious structural damage
to the underlying economic base. Such economic change may occur suddenly
or over time, and generally results from industrial or corporate
restructuring, new Federal laws or requirements, reduction in defense
expenditures, depletion of natural resources, or natural disaster. Aids
the long-range economic development of areas with severe unemployment
and low family income problems; aids in the development of public
facilities and private enterprises to help create new, permanent jobs.

Strategy investments help organize and carry out a planning process
resulting in a Comprehensive Economic Development Strategy (CEDS)
tailored to the community\'s specific economic problems and
opportunities. Implementation Investments support one or more activities
identified in an EDA-approved CEDS. Activities may include, but are not
limited to, the creation/expansion of strategically targeted business
development and financing programs such as: Revolving loan funds,
infrastructure improvements, organizational development, and market or
industry research and analysis.

**Regional or Local Office Contacts**:

Contact the appropriate Economic Development Administration Regional
Office

<http://www.eda.gov/AboutEDA/Regions.xml>

**Headquarters Office Contact**:

Economic Development Administration

U.S. Department of Commerce

1401Constitution Avenue, N.W.

Washington, DC 20230

[http://www.eda.gov](http://www.eda.gov/)

######## Managing Multiple Funding Sources: An Overview of Cost Allocation

This summary of cost allocation principles and practices as they relate
to managing multiple funding sources for tribal facilities is organized
as follows:

-   What is cost allocation?

-   How do you do cost allocation?

# What is cost allocation?

Cost allocation is a systematic way of sharing costs among tribal child
care, Head Start, and other early care and education programs that are
engaged in the joint purchase, construction, renovation, rental, or
other uses of facilities. The Tribe must set forth its approach in a
written **cost allocation plan**. The plan generally will cover other
program costs in addition to facilities. Cost allocation is an important
aspect of strategic planning. Accordingly, program leadership should
work closely with fiscal and accounting specialists in shaping critical
decisions in the cost allocation plan.

The discussion in this part of the *Guide* focuses on joint facilities
of child care, as funded in whole or in part by the Child Care and
Development Fund (CCDF), and the federally-funded Head Start and Early
Head Start programs. Similar issues and procedures apply in the case of
other early care and education program funding.

The following three principles must be kept in mind when planning for
cost allocation. Costs must be:

1.  **Allowable --** meeting the legal and regulatory requirements of
    the program funding source; uniform and consistently applied within
    the tribal early care and education program; in accordance with
    applicable grant and cost allocation methods; and documented.

2.  **Reasonable --** a prudent person would approve the cost under the
    conditions at the time that the cost was incurred; ordinary and
    necessary; makes good business sense; individuals involved acted
    without conflict of interest.

3.  **Allocable --** must reflect relative benefits to all of the
    partners who are sharing costs.

The cost allocation plan needs to be:

-   Written and documented;

-   Reinforced by accounting records;

-   Comprehensive, covering all costs, both direct and indirect, that
    are to be allocated;

-   Followed consistently;

-   Monitorable, meaning that programs must be able to review the plan
    as the year progresses; and

-   Auditable (the tribal auditor should be the primary reviewer).

**How do you do cost allocation?**

The discussion below draws upon and adapts guidance materials presented
at national and regional ACF meetings, including *Managing Multiple
Funding Streams*, sponsored by Region IV Administration for Children and
Families and Region IV Head Start Quality Improvement Centers, November
1998. While the following discussion focuses on tribal facilities, it
should be kept in mind that the cost allocation plan commonly will
address a broad range of program costs (e.g., personnel, equipment,
supplies, food, and transportation).

The cost allocation process generally includes six steps:

1.  Clearly define what, where, and how the Tribe provides services,
    including eligibility and enrollment status;

2.  Identify what costs need to be allocated;

3.  Determine the method (or methods) for allocating the costs;

4.  Perform the allocation and enter the data into the accounting
    records;

5.  Periodically track the allocations by monitoring the levels of
    program expenditures and comparing them to the total revenue
    available for child care, Head Start, and other early care and
    education programs; and

6.  Periodically review the methods for consistency and accuracy.

The Tribe may wish to test several cost allocation methods in the
planning stage and then select the one that is the simplest, most
straightforward way of allocating costs. Allocations may be expressed as
a percentage of children, percentage of employees, child hours, child
days, or some other equitable method. For facilities or occupancy costs,
the likely choices for allocation would include number of children,
child hours, and square feet.

Costs that need to be allocated are those shared by more than one
program, but not necessarily all programs, of the Tribe. The Tribe
should discuss the procedure it elects to follow with the appropriate
ACF Regional Office to ensure that it is consistent with applicable
policy requirements.

For additional policy regarding cost allocation, see ACYF-PIQ-CC-99-01,
issued February 24, 1999 (Appendix B).

##### Chapter 4: Developing a Business Plan for the Facility

I.  **Introduction**

II. **Preparing a Strategic Plan**

III. **Preparing a Detailed Business Plan**

IV. **The Business Plan Worksheet**

V.  **Financial Planning**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

I.  **Introduction**

A written business plan is an important initial step that helps
formalize and document efforts to construct a child care facility. A
plan is also necessary to assess whether the lead agency has sufficient
resources to operate the facility on an ongoing basis. Developing a plan
and putting it in writing are crucial to laying the groundwork for the
ultimate goal---implementing the plan. A formal business plan is as
important for an established agency as it is for a start-up project
because it serves four critical functions:

-   Helps organize, focus, and clarify a program's development and
    prospects;

-   Provides a framework within which the agency can develop and pursue
    business strategies over the next one to five years;

-   Serves as a basis for discussion with third parties such as funding
    agencies, collaborative partners, banks, and stakeholders; and

-   Offers a benchmark against which actual performance can be measured
    and reviewed.

Just as no two businesses are alike, no two business plans are alike. It
is therefore important to tailor a plan\'s contents to suit individual
circumstances. Nonetheless, most plans follow a similar structure, and
general advice on preparing a plan is universally applicable. A business
plan should be a realistic view of the expectations and the short- and
long-term objectives of the agency. It provides the framework within
which the agency must operate and, ultimately, succeed or fail. The plan
serves as a key sales document for management seeking external support
(such as additional funding) since it shows that the project is
well-conceived and viable. Preparation of a comprehensive plan will not
guarantee success in raising funds or mobilizing support, but lack of a
sound plan will almost certainly ensure failure.

Preparing a satisfactory business plan forces managers and other
stakeholders to clarify what they want to achieve as well as how and
when they can do it. Even if no external support is needed, a business
plan can play a vital role in helping the agency avoid mistakes or
recognize hidden opportunities. Many find that the process of planning
(thinking, discussing, researching, and analyzing) is just as, or even
more, useful than what emerges as the final plan.

The CCDF Administrator or child care construction project manager should
determine who will take part in the business plan development and ensure
that all stakeholders are represented on the business plan development
team. Staff, management, tribal leaders, policy groups, community
members, collaborative partners, and others with an interest in the
tribal child care program's operation and success are all potential team
members. The leaders of the team should develop a timeline that is
sensitive to the schedules of all participants. The schedule should
allow for the possibility of many days of hard work and several drafts
to get the job done right.

A clearly written and attractively packaged business plan makes it
easier to interest potential supporters, funding agencies, and other
sources of financing. A well-prepared business plan demonstrates
knowledge of the project and shows that stakeholders have thought
through its development in terms of finances and management. The plan
should also take into consideration the child care supply and demand in
the tribal service area. This issue should receive attention during the
community assessment described in Chapter 1 and the business plan should
incorporate the relevant data gathered through that process.

II. **Preparing a Strategic Plan**

A short strategic plan (2-3 pages) can provide a useful foundation upon
which to base a more detailed business plan. As the prelude to
developing the strategic plan, identify the current status, objectives
and strategies of existing programs along with the latest thinking in
respect to a new venture. For example, you should evaluate and consider
collaboration among programs as part of current and proposed program
design. If you define your plan elements correctly, you can use them as
the basis for a critical examination on existing or perceived
**s**trengths, **w**eaknesses, **o**pportunities, and **t**hreats
(S.W.O.T. analysis). Analysis will then allow you to address the
following issues:

-   Vision;

-   Mission;

-   Objectives;

-   Values;

-   Strategies; and

-   Goals.

First, develop a realistic **vision** for the agency. Present a
realistic picture of the future in three or more years in terms of its
likely physical appearance, size, and activities. Answer this question:
\"If someone visited us in three years, what would they see or sense?\"

Second, express the nature of the program through its **mission**, which
indicates its purposes for service delivery. For example, "to offer
affordable, quality child care services that will meet the needs of our
target population." A statement along these lines indicates what the
program is about and is clearer than saying, for instance, \"we\'re in
child care." Some people confuse mission statements with value
statements; the former should be concise while the latter can deal with
\"softer\" issues.

Third, state the program\'s **objectives** in terms of the results you
need and want to achieve in the medium- and long-term. Objectives should
relate to the expectations and requirements of all the major
stakeholders, including employees and clients, and should reflect the
underlying reasons for operating the program.

Next, address the **values** governing the operation of the program and
its conduct or relationships with the community, clients, and employees.

Develop **strategies** to define the rules and guidelines by which you
will achieve your mission and objectives. They may cover the business as
a whole, including such matters as diversification, growth, or funding
strategies, or they may relate to primary matters in key functional
areas:

-   The agency\'s collaborative efforts with other child care providers;

-   New services that will enhance existing ones over the next three
    years; and

-   Facilities enhancement.

Finally, set **goals** with specific interim or time-based measurements
to be achieved using strategies in pursuit of the agency\'s objectives.
For example: "We will provide services to an additional 20 families
within the next 24 months."

Remember that the mission, objectives, values, strategies, and goals
must be interlinked and consistent with each other. Upon completion,
review all aspects of the plan to ensure they are consistent in purpose
and outcome.

III. **Preparing a Detailed Business Plan**

Before commencing any detailed work on the plan, the authors should:

-   Clearly define the target audience;

-   Determine its requirements in relation to the contents and levels of
    detail;

-   Map out the plan\'s structure (table of contents page);

-   Decide on the likely length of the plan; and

-   Identify all the main issues to be addressed.

You must identify shortcomings in the concept and gaps in supporting
evidence and data. This will allow for completion of an assessment of
research prior to starting the draft. Remember that a business plan is
the end result of a careful process of research, discussion, and
evaluation.

######## Structure and Content

A typical business plan includes the following main elements:

1.  A brief **Introduction**, which defines the plan's background and
    structure;

2.  A **Summary**, which highlights the main issues and proposals (1-3
    pages);

3.  The **Main Body**, which contains chapters divided into numbered
    sections and subsections; and

4.  **Appendices**, which contain tables, exhibits, and other detailed
    information referenced in the text.

## Length and Timeframe

While the length of a business plan may bear no relation to the
underlying prospects of a business, well-developed plans generally run
at least 20 pages long, plus appendices. Set aside 5--20 days to produce
the plan. While the task of writing the plan itself may take a
relatively short time, be sure to allow sufficient time for the
research, preparatory work, and underlying brainstorming and discussion,
as well as time to have the plan reviewed by others.

## Practical Hints

Outside help and guidance in preparing a business plan can be extremely
valuable. If you use outside help, you must ensure that the final plan
remains your own and not that of your advisers.

The following suggestions may be of assistance:

1.  Use a spreadsheet program (such as Microsoft Excel) or other
    financial modeling software package for the financial projections.

2.  When drafting the plan, be positive but realistic about the
    agency\'s prospects and acknowledge and respond honestly to
    shortcomings and risks.

3.  The plan's management section is crucial. Consider forming a
    management team or strengthening management as part of the plan.

4.  When writing the plan, remember to:

-   Avoid unnecessary jargon;

-   Economize on words;

-   Use short crisp sentences and bullet points;

-   Concentrate on relevant and significant issues;

-   Break the text into numbered paragraphs and sections;

-   Provide detail in appendices;

-   Number the pages of the plan and provide a table of contents page;
    and

-   Write the summary last.

5.  Have a qualified outsider review your draft plan, then revise the
    plan.

6.  Back up revenue and expense projections with market research. Ensure
    that there is a direct relationship between market analysis, revenue
    forecasts, and financial projections.

7.  Be realistic about revenue expectations (e.g., consider the impact
    of non-attendance), cash flow analysis, and funding requirements. Do
    not underestimate the cost and time required for advertising,
    start-up costs, securing external support, or raising funds.
    Consider hidden costs such as employee absences.

8.  If seeking external funding, be realistic about the future of the
    project, the risks involved, and possible returns. Give
    consideration to contingencies such as emergency building-repair
    costs and vehicle repair.

9.  Incorporate available data such as market rate analysis, census
    information, and financial information such as grant proposals and
    funding awards. Include data found on construction checklists and
    funding requests. Don\'t reinvent the wheel.

######## IV. The Business Plan Worksheet

The Model Business Plan Structure on page 34 could serve as the basis
for a \"full‑blown\" business plan by expanding the level of detail
given. Ideal page lengths for a straightforward but comprehensive plan
are given in parentheses. Include detail in accompanying appendices.

**MODEL BUSINESS PLAN STRUCTURE**

1.  **Introduction (1)**

> Introduce the plan.

-   Who wrote it (list staff members, policy groups, community members)

-   Contact information

-   When written

-   Process used during writing (focus groups, surveys)

2.  **Summary (1‑3)**

> Write this section last. Summarize the major points of your document.

3.  **Mission, Strategies, etc. (1‑2)**

> What are the central purposes and activities of the planned and/or
> current program?

-   What are its SWOTs (Strengths, Weaknesses, Opportunities, Threats)?

-   What are its major objectives, key strategies, and prime goals?

4.  **Present Status of Project (1‑3)**

> Summarize achievements and performance (financial, etc) to date.

-   Introduce the stakeholders and/or collaborative partners in the
    program.

-   Describe existing and planned inter-/intra-agency agreements.

-   Describe current projects and/or programs being operated by the
    agency that are relevant.

5.  **Service Description (1‑2)**

> Keep descriptions short and confine them to broad groups. Explain
> briefly what makes them special.

-   Define program linkages.

-   Define ancillary services such as health, dental, food services,
    transportation, etc.

-   Describe current program options being used by the agency (e.g.,
    in-home care, center-based services, certificate programs)

6.  **Profile of Target Market(s) (2‑3)**

> Identify size, segments, trends, competition, and user/client
> profiles.

-   Utilize data from community assessments, census reports.

-   Gather information from internal planning departments.

7.  **Marketing Strategies (2‑3)**

> Determine how the program will market its services to clients.

-   Describe proposed use of advertising, word-of-mouth, public service
    announcements.

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-   Is there competition in the area?

-   Define costs that will be incurred for marketing.

8.  **Technology (0‑2)**

> Explain progress, plans, and resources, and highlight technological
> advances such as computerization of operations, Internet use, program
> uses of technology, etc.

9.  **Operational Plans (2‑3)**

> Cover service activities.

-   Indicate organizational structure.

-   Describe available resources.

-   Describe the proposed fee structures, sliding fee scales, etc.

-   Describe the administrative plan, such as accounting systems, fee
    collection procedures.

10. **Management (1‑2)**

> Introduce the proposed management team and structure.

-   Indicate overhead costs.

11. **Financial Position & Projections (2‑3)**

> Use simple tables to present key financial projections.

-   Include a summary profit and loss statement, a statement of cash
    flows, and balance sheets.

-   Describe in-kind contributions.

-   Describe the potential revenue flow from grants, contracts, fees for
    service, USDA, and other sources.

-   Consider the possibility of uncollectible accounts and have a
    written policy to resolve these accounts.

-   Place the detailed analyses in appendices.

12. **Funding Requirements & Proposals (2‑3)**

> If applicable, summarize other funding requirements, possible sources,
> likely terms.

13. **Implementation (1‑3)**

> Explain the major decision points, time scale, and actions required by
> management and others to progress the plan.

14. **Conclusion (1)**

> Indicate why the program and/or project will succeed and why it should
> be supported.

######## V. Financial Planning 

The financial projections that are included in your business plan are
often considered to be the \"heart\" of the plan. They quantify your
plan in terms of dollars and cents and units of service, and serve as an
evaluation point for the viability of the program or project. It will be
helpful to enlist assistance from your agency's accounting department in
the preparation of these estimations.

Break down your financial data into monthly projections for years one
and two and into annual projections thereafter. Based upon this, include
the following in your plan:

-   Profit and Loss Statement (also called Statement of Revenue and
    Expense)

-   Balance Sheet

-   Cash Flow Statement

### Profit and Loss Statement

Based upon the operations plan you have developed, determine projected
revenues and expenditures over time. Take into consideration the
following:

-   Include all sources of revenue, including projected revenue from
    USDA's Child and Adult Care Food Program, grant income, and parent
    fees (be realistic about your collection rate).

-   Include all expenditures, including \"hidden costs\" such as
    employee absence, indirect costs, and annual costs such as licenses
    and fees.

-   Be aware that some costs, such as food, vary (variable costs); some
    costs, such as administrative salaries, are fixed (fixed costs).

-   Use historical data for estimations, but be aware of potential
    fluctuations in variable costs such as salary and fringe benefits.

-   Take into consideration in-kind revenue, which may reduce actual
    costs of the program.

-   Remember to consider the effects of collaborative agreements and
    cost allocation on your forecasts.

The profit and loss statement prepared for your business plan can serve
as the basis for your ongoing operating budget and should be adjusted
periodically as necessary to reflect the actual operations of the
program.

### Balance Sheet

The balance sheet provides a profile of the monetary \"worth\" of the
program or agency at a given point in time. This statement lists all of
the program\'s assets (cash, accounts receivable, inventory, real
estate, etc.) and all of the program\'s liabilities (accounts payable,
payroll taxes payable, notes payable, etc.). The difference between
these two amounts is the agency or program\'s \"net worth,\" or for
non-profit agencies \"fund balance.\" The Balance Sheet will give you an
idea of whether you \"owe more than you have.\" Be sure to enlist the
help of the agency's accounting department in developing this statement.

### Cash Flow Statement

When planning the short- or long-term funding requirements of your
program, it is important to forecast the likely cash requirements. While
profit---the difference between revenue and expenses within a specified
period---is a vital indicator of the performance of the program, the
generation of a profit does not necessarily guarantee its development,
or even the survival. Lack of operating cash can result in the failure
of a program.

Revenues and costs, and therefore profits, do not necessarily coincide
with their associated cash inflows and outflows. While revenue may have
been generated (for example, a day of service may have been provided),
the related payment may be deferred as a result of the billing process.
However, at the same time, payments must be made to staff and suppliers,
cash must be invested in purchasing food, and new equipment may have to
be purchased.

The net result is that cash receipts often lag behind cash payments and,
while profits may be reported, the program may experience a short-term
cash shortfall. (Remember, it is not acceptable to \"borrow\" from other
programs that may have cash available, such as Head Start.) For this
reason, it is essential to forecast cash flows as well as potential
project profits.

The simplified example on page 38 (Figure A) illustrates the timing
differences between profits and cash flows for a one-month period.

The table shows that the cash associated with the reported profit for
Month 1 will not fully materialize until Month 3 and that a serious cash
shortfall will be experienced during Month 1, when receipts from revenue
will total only \$2,000 as compared with cash payments to staff and
suppliers of \$4,000. Normally, the main sources of cash inflows to a
program are grant proceeds, increases in bank loans, parent fees,
donations, asset disposals, and other income such as interest earned.
Cash outflows include payments to staff and suppliers, capital and
interest repayments for loans, and capital expenditure for equipment.

Net cash flow is the difference between the inflows and outflows within
a given period. A projected cumulative positive net cash flow over
several periods highlights the capacity of a program to generate surplus
cash and, conversely, a cumulative negative cash flow indicates the
amount of additional cash required to sustain the program. Cash flow
planning entails forecasting and tabulating all significant cash inflows
relating to revenue, new loans, interest received, etc., and then
analyzing in detail the timing of expected payments relating to
suppliers, wages, other expenses, capital expenditure, loan repayments,
interest payments, etc. The difference between the cash in- and
out-flows within a given period indicates the net cash flow. When this
net cash flow is added to or subtracted from opening bank balances, any
likely short-term bank funding requirements can be determined.

### Using a Computer

With the aid of a computer, a mathematical model can be used to prepare
cash flow projections and project short-term cash requirements for a
program. The use of a computer-based model reduces the tedium of
carrying out numerous repetitive calculations and simplifies the
alteration of assumptions and the presentation of results. A
computer-based model can be constructed using a spreadsheet. A cash flow
model can be used to compile forecasts, assess possible funding
requirements, and explore the likely financial consequences of
alternative strategies. Used effectively, a model can help prevent major
planning errors, anticipate problems, identify opportunities to improve
cash flow, or provide a basis for negotiating short-term funding from a
bank.

However, the quality of these projections will be determined by the
standard and reliability of the underlying assumptions. For example, if
forecasts for revenue or costs are unrealistic or inadequately
researched, then the value of the model\'s output is greatly diminished.
An impressive set of projections is of little benefit if it is
unsupported by experience or research, or based on mere speculation. In
fact, it could be very damaging, or even destroy the project.

Remember the following points when preparing a Statement of Cash Flows:

-   Check that all key assumptions and data are at hand and have been
    adequately researched.

-   Compile opening balances for all items that will involve cash flows
    within the forecasting period.

-   Estimate collection rates for parent fees realistically.

-   Consider billing cycle time frames for grant payments and contract
    payments.

Once the cash flow projections have been prepared, they should be
critically examined and used as a management tool to control and improve
the program\'s expected cash position. All projections should be
periodically reviewed and adjusted to reflect the status of current
operations.

**Chapter 5: Conducting an Environmental Assessment**[^1]

Tribal Lead Agencies requesting to use CCDF monies for construction or
renovation are required to conduct an environmental assessment in
accordance with the National Environmental Policy Act (NEPA). Guidance
regarding compliance with NEPA is contained in Program Instruction
ACYF-PI-CC-04-01, dated January 23, 2004 (Appendix B). The following
chapter is designed to provide more practical suggestions about items to
consider in an assessment, as well as resources and contacts for
obtaining additional information.

Number range level0Number range level1Number range level2Number range
level3Number range level4Number range level5Number range level6Number
range level7An environmental assessment should be completed early in the
planning process. This will allow the Tribe to determine whether or not
the site selected for the child care facility is suitable before the
start of later-stage planning, such as the development of architectural
plans and specifications.

The Head Start Bureau has developed a *Head Start Facilities
Environmental Documentation Course* on CD-ROM. It includes guidance and
a form to help grantees prepare environmental assessments in accordance
with the National Environmental Policy Act. Although designed for Head
Start grantees, the material is generally applicable to CCDF as well.
Copies of the CD-ROM are available from the Tribal Child Care Technical
Assistance Center (TriTAC) (800-388-7670; tritac2@aol.com).

Some Tribes have their own environmental or natural resource staff that
may be able to help. In addition, the Bureau of Indian Affairs has Area
Office Environmental Coordinators who can provide assistance regarding
assessments.

General information concerning NEPA can be obtained from the Council on
Environmental Quality. Call (202) 395-5750 or visit the Council's
NEPAnet Web site at
[**http://ceq.eh.doe.gov/nepa/nepanet.htm**](http://ceq.eh.doe.gov/nepa/nepanet.htm).

The following areas may be considered part of an environmental
assessment:

I.  **Floodplain Management**

II. **Wetlands Protection**

III. **Protection of Endangered Species**

IV. **Toxic Chemicals and Radioactive Materials**

V.  **Protection of Farmlands**

VI. **Historic Preservation**

VII. **Presence of Natural Hazards**

VIII. **Presence of Man-Made Hazards and Nuisances**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

###### Floodplain Management

Federal policy strongly discourages the occupancy and development of a
floodplain wherever there is a practicable alternative for a project.

\"Floodplain\" means the **Special Flood Hazard Area (SFHA**) identified
on the flood maps published for the **National Flood Insurance Program
(NFIP**) by the **Federal Emergency Management Agency (FEMA)**. These
maps should be referenced when inquiring whether a project is located
within a floodplain. Flood maps are generally available for viewing in a
community\'s land planning or building permit office. Flood maps are
also available through FEMA\'s Map Service Center. Call (800) 358-9616
or visit the FEMA Map Service Center on the Web at
[**http://msc.fema.gov**](http://msc.fema.gov/).

######## Mandatory Purchase of Flood Insurance

As a condition of funding approval, the property owner must purchase and
maintain flood insurance whenever the owner\'s building is located
within the SFHA and is benefiting from federal assistance (Sec. 102(a)
of the Federal Disaster Protection Act of 1972). Furthermore, the use of
federal assistance is prohibited for a building located within the SFHA,
unless the community in which the building is located is participating
in the NFIP (Sec. 202(a) of the Act).

The NFIP is administered by FEMA and is available only in communities
that adopt and adequately enforce the requirements for floodproofing,
elevating the construction of new buildings, or the substantial
improvement of existing buildings located within the SFHA.

A **\"Flood Insurance Rate Map\" (FIRM)** published by FEMA can be used
to determine whether a building is located within the SFHA and therefore
subject to the flood insurance purchase requirements. FIRMs can be
ordered online from FEMA's Map Service Center. The Map Service Center's
Web site can also be used to create "FIRMettes," a full-scale section of
a FEMA Flood Insurance Rate Map (FIRM) that can be created online by
selecting the desired area from an image of a Flood Insurance Rate Map.
There is no charge for making a FIRMette. Because a FIRMette is a
full-scale section of an official FEMA Flood Insurance Rate Map, it can
be used in all aspects of the NFIP, including floodplain management and
flood insurance. For information on how to create a FIRMette online,
visit the FEMA Map Service Center Web site at
**[http://msc.fema.gov](http://msc.fema.gov/).**

Further information is contained in the FEMA publication entitled
\"Mandatory Purchase of Flood Insurance Guidelines.\" This publication
is available on the Web at
[**http://www.fema.gov/business/nfip/mpurfi.shtm**](http://www.fema.gov/business/nfip/mpurfi.shtm).
The \"Community Status Book,\" also published by FEMA, can be used to
determine the status of a community\'s participation in the NFIP. This
information is available on the Web at
[**http://www.fema.gov/fema/csb.shtm**](http://www.fema.gov/fema/csb.shtm).

Call the FEMA Flood Insurance Information Hotline at (800) 427-4661 for
answers to flood insurance related questions or visit NFIP's consumer
Web site, [**FloodSmart.gov**](http://www.floodsmart.gov/).

###### Wetlands Protection

Wetlands protection is a national priority. Federal policy strongly
discourages the modification or destruction of designated wetlands.

The U.S. Fish and Wildlife Services (FWS), Department of the Interior,
publishes the National Inventory of Wetlands. This official listing
should be referenced when inquiring whether a project is located within
a designated wetland. For map information, call the FWS National
Wetlands Inventory Center at (727) 570-5400 or visit FWS on the Web at
[**http://www.nwi.fws.gov**](http://www.nwi.fws.gov/).

###### III. Protection of Endangered Species

Compliance is required with the Endangered Species Act (ESA) of 1973, as
amended, whenever federal financial assistance is proposed for a project
that has the potential to affect endangered species or critical
habitats. The list of endangered species is published by FWS, Department
of the Interior, and should be referenced when inquiring whether a
proposed project has the potential to affect endangered species or
critical habitats. Generally, the list is available by counties. For
information, call the nearest FWS office or visit FWS Endangered Species
on the Web at
[**http://www.fws.gov/endangered/**](http://www.fws.gov/endangered/).

###### IV. Toxic Chemicals and Radioactive Materials

Particular attention should be given to any site that is located on, or
in the general proximity of, such areas as dumps, landfills, industrial
sites, or other locations that contain hazardous wastes. Properties
considered for child care facilities should be free from hazardous
materials, contamination, toxic chemicals and gases, and radioactive
substances, where a hazard could affect the health and safety of
occupants or conflict with the use of the child care facility.

###### V. Protection of Farmlands

The Farmland Protection Policy Act requires identification of proposed
actions that would affect any lands classified as prime and unique
farmlands. The U.S. Natural Resources Conservation Service
(**http://www.nrcs.usda.gov**) administers this act to preserve
farmland. Contact the State Office of Agriculture or U.S. Natural
Resources Conservation Service office in the project area and ask them
to determine if the proposed action will affect any lands classified as
prime and unique farmlands.

###### VI. Historic Preservation

The regulations concerning compliance with Section 106 of the National
Historic Preservation Act of 1966 were issued by the Advisory Council on
Historic Preservation as 36 CFR Part 800 (available online at
[**http://www.access.gpo.gov/nara/cfr/waisidx_04/36cfr800_04.html**](http://www.access.gpo.gov/nara/cfr/waisidx_04/36cfr800_04.html)).

The person preparing the assessment should check the National Register
of Historic Places to determine if the project is among or near any
listed properties on the National Register. A current listing of
properties on the National Register may be accessed on the Web at
[**http://www.cr.nps.gov/nr/**](http://www.cr.nps.gov/nr/). The current
listing also includes all properties that have been nominated to the
National Register.

In addition, it is necessary to consult the Tribal or State Historic
Preservation Officer to find out whether the proposed child care
facility is on or near a property that might be eligible for listing on
the National Register. The list of Tribal Historic Preservation Officers
(THPOs) is available online at
[**http://grants.cr.nps.gov/thpo/tribaloffices.cfm**](http://grants.cr.nps.gov/thpo/tribaloffices.cfm);
the list of State Historic Preservation Officers (SHPOs) is available
online at
[**http://www.ncshpo.org/stateinfolist/fulllist.htm**](http://www.ncshpo.org/stateinfolist/fulllist.htm).

For additional information about the National Historic Preservation Act
of 1966, contact the Advisory Council on Historic Preservation at (202)
606-8503 or on the Web at
[**http://www.achp.gov**](http://www.achp.gov/).

###### VII. Presence of Natural Hazards

While there may be several types of natural hazards that could pose
problems for a given site, some of the more prevalent of these hazards
are presented below.

**Radon**

Radon is an odorless, colorless and tasteless gas that occurs in nature,
seeping up from the earth. Radon is a result of the natural breakdown,
or radioactive decay, of uranium and is present in trace amounts in all
soils and rocks. Radon\'s migration patterns are not yet fully
understood but the construction characteristics of a project as well as
the soil and the rock beneath it are important factors in the
accumulation of indoor radon, which is harmful to humans. Indoor radon
is the second leading cause of lung cancer in the United States and the
leading cause among non-smokers. Smokers are at higher risk of
developing radon-induced lung cancer.

The Environmental Protection Agency (EPA) has recommended a guideline of
4 picocuries per liter of air for indoor radon (picocurie =
one-trillionth of a curie or the equivalent of the decay of two radon
atoms per minute in a liter of air). Additional information regarding
the danger of radon may be obtained by contacting local EPA officials, a
State Radon Contact (this list can be found online at
[**http://www.epa.gov/iaq/whereyoulive.html**](http://www.epa.gov/iaq/whereyoulive.html)),
or the National Radon Information Line at (800) SOS-RADON
(800-767-7236).

**Subsidence**

Subsidence causes a sinking or settlement of land areas that may result
from various situations such as the pumping of ground water from the
earth, \"drying out\" of boggy or water-ladened soils, or underground
mining. The settlement caused by subsidence is not consistent but is
instead shaped like an inverted cone. The low point of this cone
continually shifts over the span of several years. It is important to
consider this natural hazard because it has the ability to impact a site
by altering drainage patterns or even reversing the direction of the
flow of drainage water.

**Soil Stability**

Different types of soil as well as erosion conditions may require
particular foundations or engineered earthworks in order to ensure the
stability of the project. The USDA Natural Resources Conservation
Service ([**http://www.nrcs.usda.gov**](http://www.nrcs.usda.gov/))
publishes soil survey maps for each county. The maps provide a
description and the characteristics of each soil type and series along
with a legend giving the maximum slope for each soil name. If these soil
surveys are not available or questionable conditions warrant further
analysis, another soil survey may be required.

Where land developments include building foundations over filled ground
or in areas where ground is removed and could result in swelling of
exposed subsoil, the project should be controlled with an engineered
earthwork.

Consideration should be given to the erosion conditions of a particular
site. Erosion may damage soil stability either because of extensive
rainfall or wind. If these conditions apply, it may require further
evaluation by a soil engineer or similar expert.

**Surface Faults and Seismic Zones**

Although surface faults and seismic zones tend to be particular to given
areas, areas with this possibility may require a geological study to be
performed. In cases where seismic activity is common, foundations should
be engineered to withstand earthquake conditions.

###### VIII. Presence of Man-Made Hazards and Nuisances Asbestos

Asbestos is a fibrous fireproof material that in the past was used in
numerous building products including insulation, exterior siding,
roofing materials, plaster, and many others. Because of the extreme
fineness of asbestos fibers, they can easily become airborne and
hazardous to human health. Long-term or concentrated exposure to
asbestos can cause serious diseases that may not show up until many
years after exposure began.

Although the use of asbestos in building materials has been banned since
1978, any project involving the rehabilitation or demolition of a
structure constructed before this date should consider asbestos as a
potential problem. Intact, undisturbed asbestos-containing materials
generally do not pose a health risk; however, they may pose an increased
risk when they are damaged, are disturbed in some manner (for example,
during a renovation project), or deteriorate over time and thus release
asbestos fibers into building air. If a project is known or likely to
have asbestos, it is recommended that the Environmental Protection
Agency
([**http://www.epa.gov/asbestos/**](http://www.epa.gov/asbestos/)) and
the Occupational Safety and Health Administration
([**http://www.osha.gov/SLTC/asbestos/**](http://www.osha.gov/SLTC/asbestos/))
be contacted for guidance. (EPA published the National Emission
Standards for Hazardous Air Pollutants (NESHAPs) for Asbestos at 40 CFR
61.141-158.)

Questions related to EPA\'s asbestos NESHAP regulations;
asbestos-related renovation or demolition in buildings other than
elementary or secondary schools; or the transport and disposal of
asbestos waste may be directed to the EPA SBA Asbestos Ombudsman at
1-800-368-5888. Publications about asbestos can be found online at
[**http://www.epa.gov/asbestos/pubs/pubs.html**](http://www.epa.gov/asbestos/pubs/pubs.html).
Print materials can be ordered from EPA's Toxic Substance Control Act
(TSCA) at (202) 554-1404 or <tsca-hotline@epa.gov>.

**Hazardous Dams**

Dams are an integral part of the Nation's infrastructure, providing a
range of benefits to the public including hydroelectric power, river
navigation, water supply, wildlife habitat, waste management, flood
control, and recreation. Approximately 67% of dams in the U.S. are
privately owned; the remaining dams are owned by federal, state, or
local governments or by public utilities.[^2] Individual dam owners are
responsible for the safety and security of their dams and for their
maintenance, upgrade, and repair.

There are a number of resources available to help determine the
potential hazards posed by dams located near a building site. Since
1972, Congress has passed a number of laws authorizing the U.S. Army
Corps of Engineers (USACE) to study and inventory dams in the United
States. The USACE's National Inventory of Dams (NID) is available online
at
[**http://crunch.tec.army.mil/nid/webpages/nid.cfm**](http://crunch.tec.army.mil/nid/webpages/nid.cfm).
The NID is searchable by dam name and location (Congressional district);
dams can also be located using an interactive map. Dams data can also be
downloaded by state.

Additional sources of dam and dam safety information include the Federal
Emergency Management Agency's National Dam Safety Program (NDSP)
([**http://www.fema.gov/fima/damsafe/**](http://www.fema.gov/fima/damsafe/));
the Association of State Dam Safety Officials (ASDSO), which provides
links to state agencies responsible for dam safety
([**http://www.damsafety.org/**](http://www.damsafety.org/)); and the
National Performance of Dams Program at Stanford University
([**http://npdp.stanford.edu/**](http://npdp.stanford.edu/)), which
provides online access to a comprehensive dam directory including dam
incident reports and dam modifications/repairs.

**High Voltage Transmission Electrical Lines**

While it is known that transmission lines have electromagnetic fields
that are harmful to humans, it is not known at what level of
electromagnetic radiation this hazard occurs. In addition, the towers
supporting electrical lines have posed risks when people, especially
children, have attempted to climb their steel frames. For these reasons,
child care facilities should be located a safe distance from electrical
lines, and nearby towers should be fenced.

**Lead and Lead-Based Paint**

Childhood lead poisoning causes reduced intelligence, low attention
span, learning disabilities, and many other adverse health effects. In
adults, it can cause nerve damage and decrease reproductive ability.
About 80 percent of all homes built before 1980 have some lead-based
paint. Many of those homes have only small amounts of such paint, but,
generally, the older the home, the greater the amount of lead-based
paint. Lead-containing paint was completely banned from residential use
in 1978.

The Residential Lead-Based Paint Hazard Reduction Act of 1992, known as
\"Title 10,\" set the current federal focus for lead paint poisoning on
\"lead-based paint hazards,\" which are conditions that cause health
effects from exposure to lead-contaminated dust or soil, or lead-based
paint that has or can become deteriorated. Most intact lead-based paint
is not a \"hazard,\" although the paint\'s condition should be monitored
and maintained to ensure that it does not become deteriorated.
Approaches for testing paint for lead and evaluating lead-based paint
hazards are available.

In addition to the hazards associated with lead-based paint, soil may be
contaminated by lead from nearby industries or waste disposal sites,
paint removal from bridges or other steel structures, and from old
fallout of leaded gasoline emissions. Additional lead health risks can
come from lead in drinking water.

For more information, visit the EPA's lead awareness Web site at
**http://www.epa.gov/lead** or contact EPA's National Lead Information
Center (NLIC) at (800) 424-LEAD (800-424-5323). Lead poisoning
prevention materials for children, parents, and early childhood staff
have been developed by the EPA and the National Head Start Association
(NHSA). These and other outreach materials can be download (in PDF
format) from
[**http://www.epa.gov/lead/pubs/leadpbed.htm**](http://www.epa.gov/lead/pubs/leadpbed.htm).

**Chapter 6: Building a Facility**

The information provided below is designed to assist your Tribe, tribal
organization, or department in designing, managing, and completing the
process of constructing or renovating a child care center. (Please note
that, for the purposes of this chapter, renovation is the same as
construction.) The lead agency's tasks for managing the complete
construction process can be divided into four major categories:

I.  **Selecting and Working with an Architect**

II. **Designing and Planning the Facility**

III. **Hiring a Contractor**

IV. **Overseeing the Project**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

**I. Selecting and Working with an Architect**

First and foremost, the architect should be licensed in the state where
the project is located. A licensed architect provides not only a
professional service, but a legal protection for the Tribe in the event
of any disputes over applicable codes and regulations,
misinterpretations by the contractor of the plans and specifications,
and any errors and omissions in professional services delivery.

You should select the architect based on professional knowledge,
experience, and understanding of the specifics of the project. An
architect is selected by proposal, not by bid. In selecting an
architect, the Tribe may apply a weighted evaluation criteria for
minority architectural firms. However, the primary criteria in selecting
an architect is professional knowledge, experience in working with
similar projects, and understanding the cultural, social, and special
concerns of the Tribe. The American Institute of Architects (AIA) or
local or state chapters can provide information to the Tribe concerning
architects in your area who are qualified to design child care
facilities.

The use of a licensed engineer, in some instances, is acceptable.
However, engineers are trained in more technical aspects of a project
and may not have the creative problem-solving skills and training needed
for many child care center designs. Architect/Engineer (A/E) fees for
child care projects are normally between 6 and 15 percent. Most
architectural fees will not exceed 10 percent of the total project cost
and this normally includes project management.

The American Institute of Architects (AIA) sells a variety of contract
documents that can be used as the basis for agreements between the Tribe
and the selected architect (and other project professionals). To
accommodate any specific contractual needs or stipulations of the Tribe,
these documents may be modified, by mutual agreement. All contracts
should be reviewed by the Tribe's attorney and an insurance professional
prior to signing. AIA contract documents can be ordered from local AIA
chapters or by calling (800) 365-2724.

For more information about finding and selecting an architect,
negotiating a contract, and other aspects of the owner-architect
relationship, visit the "What an Architect Can Do For You" section of
the AIA Web site at **http://www.aia.org/about_doforyou**. Please note
that the goal of AIA is to promote the interests and services of
architects.

**II. Designing and Planning the Facility**

The scope of the architect's work includes:

-   A design plan that targets and schedules different dates for
    accomplishing various design phases (i.e., schematic, preliminary,
    final, etc.).

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-   A scope of work that clearly states the most cost-effective design
    and energy conserving systems.

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-   Cost estimates for each phase of design that allows the Tribe to
    make knowledgeable and informed decisions. As the design changes,
    based on input from the Tribe, the costs will also change until a
    final design is agreed upon and budgeted.

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-   A set of final plans and specifications, approved by the Tribe.
    Depending on the funding agency, the plans and specifications may
    have to be reviewed and approved by one or more state or federal
    agencies (e.g., State Fire Marshall's Office, Office of the Building
    Code, Army Corp. of Engineers).

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-   Construction bid documents that are prepared once the final plans
    are approved by appropriate agencies and entities. An estimate of
    construction costs should be part of the bid documents.

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-   Scheduling, planning, and presiding over a pre-bid conference, and
    once a construction contract has been awarded, the pre-construction
    conference.

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```
-   Management and oversight of the day-to-day progress and work. The
    Tribe could hire a third party for project management, or this could
    be part of the architect\'s contract.

A primary part of the architect\'s contractual responsibility to the
Tribe is to ensure that all aspects of the project comply with the
appropriate legal and federal requirements. These requirements include,
but are not limited to:

-   **Environmental Impact:** National Environmental Policy Act of 1969
    (NEPA), Public Law (PL. 91-190). NEPA sets national policy goals and
    procedures for protecting and enhancing the environment. The Tribe
    must conduct an environmental assessment in accordance with guidance
    provided in ACYF-PI-CC-04-01. Chapter 5 of this Guide provides
    additional guidance on the environmental assessment process.

-   **Floodplain Management:** Executive Order 11988. The order requires
    agencies to avoid, where possible, constructing facilities within
    the confines of floodplains. If this can not be avoided, specific
    insurance restrictions are applied to protect federal interest. See
    Chapter 5, Section I for more information.

-   **Code Requirements:** The most recent edition of the National Fire
    Protection Association (NFPA) publication no. 101, the Life Safety
    Code^®^, contains minimum life safety standards.

-   **Accessibility:** National and local requirements for accessibility
    are intended to help insure the rights of all individuals, including
    the disabled. The best known and most often used requirements are
    those based upon the American National Standards Institute (ANSI).
    Accessibility standards for the disabled are also included in the
    uniform Federal Accessibility Standards, Title II and III of the
    Americans with Disabilities Act (ADA).

-   **National Historic Preservation Act of 1966:** Section 106 requires
    consideration of the effects construction may have on a site listed
    on the National Register of Historic Places.

-   **Earthquake Provisions-Occupational Safety and Health Act and
    Public Law 95-124:** Legislation concerned with earthquake
    resistance of structures.

-   **Relocation Assistance-Uniform Relocation Assistance and Real
    Property Acquisition Policies Act, PL. 91-646:** Requires both
    services and payments be provided to persons and businesses
    displaced by a federally assisted project.

-   **Potable Water-Occupational Safety & Health Act:** Requires that
    potable water be provided to federally assisted construction
    projects.

-   **Equal Employment-Executive Order 11246:** For any contract or
    sub-contract that exceeds \$10,000, no federally funded contractor
    can discriminate against any employee or applicant for employment
    because of race, color, religion, or sex.

-   **Federal Wage Rate-Davis Bacon and Related Acts:** Requires certain
    contracts to pay federal wage rates. This Act does not apply to
    projects solely funded by CCDF.

The project shall also be developed according to applicable program or
Tribal standards and other codes and ordinances, including environmental
and zoning requirements. The Uniform Building Code shall be used as a
minimum standard in the absence of a local or Tribal building code.

**III. Hiring a Contractor**

Prior to hiring a contractor, the architect must prepare a bidding
package and develop a bidding process. The minimum package and process
requirements include:

A.  **A. Boiler Plate Specifications (standard items included before
    technical specifications)**

    1.  Advertisement for Bid Form (or the Tribe may elect to solicit
        selected contractors, using pre-qualification criteria)

    2.  Bid Forms

    3.  Instructions to Bidders Form, including the method for award of
        contract (e.g., to the lowest bid or the lowest base bid in
        combination with alternates)

    4.  Bid Bond Form (5 percent bid security)

    5.  Contract Form

    6.  Performance and Payment Bond Form (100 percent)

    7.  Contractor's Application for Payment

    8.  Construction Contract General Conditions (AIA form 201) and
        Supplementary Conditions (AIA form 201SC-1999)

    9.  Equal Employment Opportunity (construction contracts exceeding
        \$10,000)

    10. Bonding and Insurance Requirements

    11. Construction Contract Completion Time and Closeout Documents
        necessary for Substantial Completion

**B.** **Cost Estimates**

The estimate of construction costs will be developed based on the final
working drawings and specifications. The estimate shall not be divulged
to outsiders for any reason.

**C.** **Final Working Drawings**

Final working drawings will be 100 percent complete and adequate for
bidding, contracting, and construction purposes. Drawings will be
prepared for the architectural, civil, structural, mechanical,
electrical, and other work. The architect may hire an engineering
consultant for support as necessary during the design process.

**D**. **Final Technical Specifications**

Final technical specifications supplement the final working drawings to
fully describe types, sizes, capacities, and other characteristics of
all materials, equipment, and installation techniques. It is recommended
that the technical specifications format be based on the most current
version of MasterFormat, the standards produced by the Construction
Specifications Institute (CSI).

Specifications will include:

-   Details of materials;

-   Reference standards;

-   Shop drawings;

-   Sample submissions;

-   Certifications; and

-   Performance concepts.

Specifications are developed to insure competitive bidding without
proprietary sole-source restrictions. When identifying materials or
equipment by manufacturer\'s name, trade name, or catalog number,
include the words, \"or equal to...\". This method of developing
specifications is not designed to give preference to any one
manufacturer but is merely to show a standard. Under the conditions of
the contract, the contractor shall be allowed to furnish materials or
equipment of manufacturers other than those identified by name that the
project architect/engineer accepts as comparable to that specified in
the bid documents.[^3]

The substitution clause may include the following language:

> When a material, article, or piece of equipment is identified on the
> drawings or in the specifications by reference to manufacturer\'s or
> vendor\'s name, trade name, catalog number, or the like, it is only
> identified to establish a standard. Any material, article, or piece of
> equipment of other manufacturers or vendors that will perform equally
> or better the duties imposed by the general design will be considered
> equally acceptable provided the proposed items are, in the opinion of
> the architect, of equal substance, appearance, and function. These
> items shall not be purchased or installed by the contractor without
> the architect\'s written approval.

**E.** **Equal Employment Requirements for Construction Contracts**

(1) **Federal Executive Order 11246, effective October 24, 1965**.

> This executive order requires an equal employment clause in all
> federally assisted construction contracts. In signing a government
> contract or subcontract of more than \$10,000, the contractor agrees
> not to discriminate against any employee or applicant for employment
> because of race, color, religion, sex, or national origin and agrees
> to take affirmative action to insure that applicants are employed, and
> employees are treated fairly during employment, without regard to
> these factors. If the contractor fails to comply with the
> nondiscriminatory clauses of the contract, or with the regulations of
> the Secretary of Labor, the contract may be canceled, terminated, or
> suspended in whole or in part and the contractor declared ineligible
> for further government contracts.

(2) **The Office for Federal Contract Compliance Programs (OFCCP),
    Employment Standards Administration, U.S. Department of Labor**.

> This office has federal responsibility for overseeing the
> implementation of Executive Order 11246 by the various federal
> departments and agencies. OFCC often prescribes written compliance
> requirements for construction contractors in designated geographical
> areas. In addition, it is OFCC policy that the approval of an
> area-wide agreement or the issuance of a hometown plan may include a
> state or local government's appending additional equal employment
> opportunity (EEO) requirements to federally assisted construction
> contracts and subcontracts where state and local funds are also
> involved in the construction.

**F**. **Procurement Requirements (45 CFR Part 92.36)**

> Facility construction transactions funded by CCDF must comply with the
> procurement procedures in 45 CFR Part 92.36 and be conducted in a
> manner that provides, to the maximum extent possible, open and free
> competition.
>
> Under 45 CFR Part 92.36, the sealed bid method is the preferred method
> for procuring construction, when feasible. An invitation for bids by
> contractors involves the following steps, if the sealed bid method is
> used:

-   Preparing an invitation for bids, describing the building(s) design
    and specifications clearly, accurately, and completely by avoiding
    unclearly restrictive specifications or requirements.

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-   Publicizing the invitation for bids in newspapers of general
    circulation or other means as appropriate to insure distribution to
    prospective bidders in sufficient time to enable them to prepare and
    submit bids.

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-   Pre-bid conference (if applicable), called by the architect and
    including representatives of the Tribe, during which any prospective
    contractor may attend (in some instances, attendance is mandatory in
    order for the contractor to submit a bid), review the details of the
    project, question and clarify any construction issues, and obtain a
    general understanding of the job.

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-   Conducting a public bid opening, including adequate documentation of
    the proceedings (i.e., certified bid tabulation by the architect,
    minutes of the opening).

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-   Preparing to award the contract after sealed bids are publicly
    opened to the responsible bidder whose bid contains the lowest price
    offer and conforms to the requirements of the invitation for bids
    and all prescribed documents, bonds, and assurances. After the
    lowest bidder is publicly announced (which does not constitute an
    award or an intended contract), the architect or the Tribe ensures
    that the low bidder is **not** excluded from federal procurement or
    non-procurement programs (that the bidder is not on the so-called
    "Debarred List") by checking the Excluded Parties List System (EPLS)
    database maintained by the U.S. General Services Administration.
    This database is accessible online at **http://epls.gov/**.

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-   The Construction Contract is signed (after a review of the bids, a
    recommendation from the architect and/or the program, and approval
    by the Tribal Council or the authorized Tribal representative or
    entity to award the construction contract).

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-   Notice to Proceed can then be written and issued by the Tribe to the
    contractor indicating the day construction may commence.

The following documents constitute a complete contract or contract file:

-   An original executed copy of the construction contract.

-   A completed certified set of contract drawings and specifications
    with all addenda(s).

-   100 percent executed performance and payment bond(s) provided by an
    approved surety.

-   Certificate(s) of Insurance.

-   Notice to Proceed.

**G**. **Liquidated Damage Requirements**

The contract document must state the specified time for completion of
the contract. Time will be specified in calendar days or by a definite
calendar date. A specific dollar amount of daily damages may be included
as a condition for assessments against the contractor for not completing
the contract on time. The assessment must be specific for each calendar
day that contract work exceeds the stipulated contract completion date
without an accepted and signed (time extension) Change Order. The daily
assessment, known as liquidated damages, will be reasonable and adequate
to cover appropriate fair damage costs to the Tribe and the program that
result from delays in occupancy or other real and tangible costs,
including additional rent or lease costs, fee and fines, and legal
costs. A single source of responsibility, such as the general
contractor, shall be held liable for the entire amount of liquidated
damages to the Tribe.

When liquidated damages are to be specified, the following clause is
recommended for inclusion in the construction contract:

> The Tribe or owner will suffer financial loss if the project is not
> substantially complete and ready for beneficial occupancy on the date
> stated in the contract documents. The contractor shall be liable for
> and shall apply to the Tribe or owner the sum hereinafter stipulated
> as fixed, agreed and liquidated damages for each calendar day of delay
> beyond those specified in the specifications until the work is
> substantially complete and ready for beneficial occupancy.

**H**. **Bonds Requirements**

The contractor should provide to the Tribe the following recommended
minimum coverage for bid bonds and performance and payment bonds:

1.  A bid guarantee from each bidder equivalent to 5 percent of the bid
    price. The bid guarantee shall include a firm commitment such as a
    bid bond, certified check, or other negotiable instrument
    accompanying the bid as assurance that the bidder will, upon
    acceptance of the bid, execute such contractual documents as may be
    required within the time specified. The Tribe will keep the bid
    securities of at least the three lowest bidders until award of the
    construction contract is complete.

2.  A Performance and Payment Bond is provided to the Tribe by the
    contractor from a surety company guaranteeing the performance of the
    work in accordance with the contract documents. The bond is 100
    percent of the contract sum and covers labor, materials, and
    performance.

**I.** **Contractor\'s Liability Insurance**

Contractor\'s Liability Insurance is a requirement of the contractor to
protect the Tribe from claims arising out of, or as a result of, the
contractor\'s operations under the contract. Samples of claims include:

-   Workmen's compensation, disability benefits, and other similar
    employee benefits;

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-   Bodily injury, occupational sickness or disease, or death of an
    employee on the job or any person other than an employee while on
    the job site;

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-   Damages insured by usual personal injury liability coverage
    sustained by any person because of an offense directly or indirectly
    related to the employment of such person by the contractor or by any
    other person;

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-   Injury to, or destruction of, tangible property, including loss of
    use; and

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-   Adequate protection against special hazards.

Other recommended minimum insurance coverage for the Tribe to be
provided by the contractor includes Contractors Comprehensive General
Liability Insurance; Property Damage Liability Insurance; and Automobile
Liability Insurance. Subcontractors insurance coverage requirements
include Subcontractors Comprehensive General Liability, Automobile
Liability, and Property Insurance of the type and in the same amount
specified for the general contractor. Specific dollar amounts for all
types of contractor-provided coverage should be established by the Tribe
in consultation with qualified attorneys and insurance professionals.

Certificate of Insurance documents should be required by the Tribe from
the contractor(s) before the start of work. These certificates must
contain a provision that coverage afforded under the policies will not
be canceled without a minimum number of days prior written notice to the
Tribe. The certificates of insurance should also list the Tribe as an
"additional insured" for each appropriate policy. The Tribe's specific
requirements for the certificates should be determined by the Tribe's
attorneys and insurance professionals and should be included in the bid
package.

Owners Liability Insurance is a responsibility of the Tribe. The
purchase and maintenance of liability insurance during construction
protects the Tribe against claims that may arise from operations under
the contract.

Property Insurance, unless otherwise provided, is a responsibility of
the Tribe. The purchase and maintenance of property insurance covers all
work at the site to the full insurable value. The insurance is
protection against fire, extended coverage, vandalism, and malicious
mischief and includes the interest of the Tribe, the contractor, and
subcontractors involved in the work.

**IV. Overseeing the Project**

It is the responsibility of the Tribe to provide for construction
inspections and supervision, adequate to assure the project is being
constructed according to contract documents in order to allow for
payment to the authorized contractor. In general, the architect/engineer
or project manager who designed the project will play a key role in
supervising construction, as s/he will be the most familiar with the
project and is legally responsible for the design. The separate fee for
supervision is generally negotiated at the beginning of the project;
alternately, this fee may be included in the overall architectural
contract. It is beneficial to hire an architect or project manager who
is experienced in the design and construction of similar projects.

There are many software programs available that are specifically
designed to facilitate the scheduling of construction projects. Many of
these programs use widely accepted scheduling processes/models, such as
the critical path method (CPM) or program evaluation and review
technique (PERT), to estimate the time needed to complete all tasks in a
project. However, unless the project is a large scale one, it may not be
necessary to use one of these programs. For smaller projects, more
readily available basic office software programs, or even bar charts,
will be sufficient to monitor the progress of the project on a monthly
basis.

After contract award and execution, Notice to Proceed, and contractor
mobilization and set up is complete, there will be regular construction
meetings. These will probably be held at least monthly and may be held
more often if the project is large or particularly complex. A
construction meeting, called by the architect, should be attended by a
representative of each subcontractor, the principle owner and on-site
supervisor of the contractor, any suppliers, and tribal and program
representatives. The meeting is designed to update all parties on work
progress, delays, explanations, problems, and change orders, and to
allow for general discussion on meeting all contract requirements.

All payment requests, Certificates for Payment, invoices, and contract
billings will be received and processed by the architect or project
manager. Certified payroll reports are checked and approved, and any
financial reports are received and processed. No payment to a contractor
or subcontractor is made without approval from the architect or project
manager and the Tribe or program.

**Close-Out**

The close-out is a process involving the architect or project manager,
the contractor and all subcontractors, the Tribe, any licensing
agencies, and any federal or state agency involved with code or
operations. The architect or project manager coordinates on behalf of
the Tribe any licensing requirements and represents the Tribe to insure
all licensing and code requirements are followed.

One set of complete contract documents, including specifications, will
be provided to the Tribe after the project is accepted and during
project closeout. Operations manuals, training of maintenance personnel
on building equipment and subsystems (as necessary), and warranties
should be part of a project closeout and acceptances as noted in the
specifications. Outstanding construction items (noted as "punch list
items") will be listed on a Certificate of Substantial Completion form
signed by the Tribe, architect, and contractor at the end of the job.
This certificate allows the Tribe to safely and effectively utilize the
structure. This phase of construction is known as beneficial occupancy.

The architect or project manager calls and conducts a final punch-list
or walk-through to identify and determine any items needing work in
order for the job to be accepted. Normally the final punch-list does not
delay occupancy. Once the final punch-list has been satisfied, the
licensing and code requirements have been met, and all financial
obligations have been satisfied, the contract is closed except for
warranty.

The warranty period provided by the contractor and subcontractor is
normally for a minimum of one year. Extended warranty periods may be
provided by manufacturers for certain items and may last, for example,
up to 20 years for roofs and five years for parts and labor on
equipment. Once the warranty period for a contractor and subcontractor
is over, the architect or project manager notifies the Tribe to release
the 10 percent retainage that had been withheld from the contractor\'s
Certificate for Payment and held in escrow.

**Chapter 7: Glossary and Resources**

####### 

####### 

####### 

####### Glossary 

Listed below are terms, phrases, and definitions used by architects,
engineers, contractors, and managers in the performance of a
construction project. This listing may be used by non-construction
professionals as a guide to understanding the terminology used for their
project.

## A

**Abate or abatement**: To remove material.

**Abstract of title**: An outline history of the ownership of a parcel
of land, from the original grant, with changes in title, and with a
statement of all mortgages, liens, encumbrances, etc., affecting the
property.

**Acceptance test**: A test conducted by a purchaser (or his or her
agent) to determine if the material, devices, or equipment delivered
conforms to the purchase contract specifications or the product supplied
by the vendor.

**Access**: A means of approach, e.g., a road, street, or walk.

**Accessible**: Allowing physical contact, as by means of an easily
removable cover or door, or a part of the building structure or finish
materials. Providing access to a fixture, appliance, or piece of
equipment; removal of a cover, panel, plate, or similar obstruction may
be required.

**Accident**: A sudden, unexpected event identified as to time and
place.

**Acre**: A unit of land measurement equal to 43,560 sq. ft. or 4046.85
sq. mile; 1 sq. mile equals 640 acres.

**Activity**: In CPM terminology, a task or item of work that must be
performed in order to complete a project.

**Activity duration**: In CPM terminology, the amount of time estimated
as required to accomplish an activity.

**ADD.**: On drawings, abbreviation for addendum.

**Addendum**: A supplement to bidding documents, issued prior to the
submission of bids, or the purpose of clarifying, correcting, or adding
to the specifications previously issued.

**Addition**: A floor or floors, a room, wing, or other expansion to an
existing building. Any new construction which increases the height or
floor area of an existing building or adds to it (as a porch or attached
garage). An amount added to the contract sum by a change order.

**Additional services**: The professional services which may, upon the
owner\'s or Tribe\'s request or approval, be rendered by the architect
in addition to the basic services identified in the owner-architect
agreement.

**Additive alternate**: An alternate bid resulting in an addition to the
same bidder\'s base bid. Same as alternate bid.

**Administration of the construction contract**: Same as construction
phase-administration of the construction contract.

**Administrative authority**: The individual, official, board,
department, tribal council, or tribal leader established and authorized
by a tribal council or by the people or political subdivision created by
law to administer and enforce the provisions of the code.

**Advertisement for bids**: The published public notice soliciting bids
for a construction project. Most frequently used to conform to legal
requirements pertaining to projects to be constructed under public
authority, and usually published in newspapers of general circulation in
those districts from which the public funds are derived.

**A/E**: Abbreviation for architect-engineer.

**Agency**: A relationship by which one party, usually the agency, is
empowered to enter into binding transactions affecting the legal rights
of another party, usually called the principle, as, for example entering
into a contract or buying or selling property in his name or on his
behalf. An administrative branch of government. The Bureau of Indian
Affairs, Agency Office, is the local or lowest level of federal
government that acts and administers funds and programs on behalf of the
Tribe or principle.

**Agent**: One who is empowered to enter into binding transactions on
behalf of another. The Tribal Chairperson, Chief, Governor, or President
is the recognized and legal agent of his or her Tribe.

**Agreement**: An arrangement indicating the intent of a contract but
not necessarily fulfilling all the enforceable provisions of it. A
meeting of minds. A legally enforceable promise or promises between two
or among several persons. On a construction project, the document
stating the essential terms of the construction contract which
incorporates by reference the other contract documents.

**Agreement form:** A document setting forth in printed form the general
provisions of an agreement with spaces provided for insertion of
specific data relating to a particular project.

**AIA**: Abbreviation for American Institute of Architects.

**All-in contract**: Same as turn-key job.

**Alterations**: Remodeling.

**Alternate bid**: The amount stated in the bid to be added to or
deducted from the amount of the base bid if the corresponding change in
project scope or alternate materials and/or methods of construction is
accepted.

**Application for payment**: The contractor\'s written request for
payment of amount due for completed portions of the work, may include,
in the contract so provides, materials delivered and suitably stored
pending their incorporation into the work.

**Appraisal**: An evaluation or estimate (preferably by a qualified
professional appraiser) in some instances by the Bureau of Indian
Affairs, Agency Office, of the market or other value, cost, utility, or
other attribute of land or other facility.

**Approved**: Referring to materials, devices, or construction accepted
by the authority having jurisdiction, by reason of tests or
investigations conducted by it or by an agency satisfactory to the
authority, or by reason of accepted principles or tests by national
authorities or technical or scientific organizations.

**Approved equal**: Materials, equipment, or method approved by the
architect for use in the work as being acceptable as an equivalent in
essential attributes to the material, equipment, or method specified in
the contract document.

**Approving authority**: The individual agency, board, department,
Tribe, or official established and authorized by a political subdivision
which is created by law to administer and enforce specified
requirements.

**Arbitration:** The binding resolution of disputes by one or more
neutral persons, as a substitute for judicial proceedings; may be
invoked only by agreement of the parities to the dispute, but such
agreement may be arrived at before there is an actual dispute, for
example, through a clause in a contract.

**Architect**: A person trained and experienced in the design of
buildings and coordination and supervision of all aspects of the
construction of buildings.

**Architect-engineer**: An individual or firm offering professional
services as both architect and engineer; terms generally used in
government contracts, particularly those with the federal government.

**Architect\'s approval**: The architect\'s written or imprinted
acknowledgment that materials, equipment, or methods of construction are
acceptable for use in the work.

**Architect\'s scale**: A scale having graduations along its edges so
that scale drawings can be measured directly in feet.

**Architectural**: Pertaining to architecture, its features,
characteristics, or details.

**Architectural drawing**: One of a number of drawings prepared by an
architect for a construction project, e.g., plans, elevations, and
details.

**Architecture**: The art and science of designing and building
structures, or large groups of structures, in keeping with aesthetic and
functional criteria.

**Area method**: A method of estimating probable total construction cost
by multiplying the adjusted gross floor area by a predetermined cost per
unit of area.

**Article**: A subdivision of a document.

**Assessed valuation**: The value of a property as determined by a
recognized legal entity such as a Tribe, for real estate tax purposes;
often this valuation is less than the true market value of the property.

**Assessment**: A tax, charge, or levy on property.

**Assessment ratio**: Of a property, the ratio between its market value
and its assessed value.

**Assignment**: The transfer of a legal right.

**Attorney-in-fact**: A person authorized to act for or in behalf of
another person or organization, to the extent prescribed in a written
instrument known as a power of attorney.

**Authority**: Same as administrative authority.

**Authority having jurisdiction**: A federal, state, local, or tribal
entity having statutory authority. In many instances the Tribe or Bureau
of Indian Affairs or a delegated agent assumes the role of the authority
having jurisdiction.

# B

**Base bid**: The amount of money stated in the bid as the sum for which
the bidder offers to perform the work, not including that work for which
alternate bids are also submitted.

**Base bid specifications**: The specifications listing or describing
only those material, equipment, and methods of construction upon which
the base bid must be predicated, exclusive of any alternate bids.

**Base services**: The services performed by an architect during the
following five phases of a project: schematic design; design
development; construction documents; bidding or negotiation; and
contract administration.

**BIA:** Abbreviation for Bureau of Indian Affairs

**Bid**: An offer to perform the work described in a contract at a
specified cost. A complete and properly signed proposal to do the work.
Competition for a job based on lowest cost to do the work. Bids are
generally cost specific, based on the cost of labor, materials, profit,
and over-head. Bids are normally not negotiated and can not be changed
once accepted by the owner/Tribe. Bids are time sensitive and are
generally good for 30 to 60 days after the bid opening.

**Bid bond**: A form of id security executed by the bidder as principal
and by a surety.

**Bid date**: The date established by the owner or Tribe or the
architect for the receipt of bids.

**Bid documents**: The advertisement or invitation to bid, instructions
to bidders, the bid form, and the proposed contract documents including
any addenda issued prior to receipt of bids.

**Bid form**: A form furnished to a bidder to be filled out, signed, and
submitted as his bid.

**Bid guarantee**: Same as bid security.

**Bid letting**: Same as bid opening.

**Bid opening**: The opening and tabulation of bids submitted by the
prescribed bid time and in conformity with the prescribed procedures.

**Bid price**: The sum stated in the bid for which the bidder offers to
perform the work.

**Bid security**: The deposit of cash, certified check, cashier\'s
check, bank draft, money order, or bid bond submitted with a bid and
serving to guarantee to the owner or Tribe that the bidder, if awarded
the contract, will execute such contract in accordance with the bidding
requirements and the contract documents.

**Bid time**: The date and hour established by the owner or Tribe or the
architect for the receipt of bids.

**Bidder**: One who submits a bid for a prime contract with the owner or
Tribe, as distinct from a sub-bidder who submits a bid to a prime
bidder. A bidder is not a contractor on a specific project until a
contract exists between him and the owner or Tribe.

**Bidding or negotiation phase**: the fourth phase of the architect\'s
basic service, during which competitive bids or negotiated proposals are
sought as the basis for awarding a contract.

**Bidding period**: The calendar period beginning at the time of
issuance of bidding requirements and contract documents and ending at
the prescribed bid time.

**Bidding requirements**: those documents providing information and
establishing procedures and conditions for the submission of bids. They
consist of the notice to bidders or advertisement for bids, instructions
to bidders, invitation to bid, and sample forms.

**Bona fide bid**: A bid submitted in good faith, complete and in
prescribed form which meets the conditions of the bidding requirements
and is properly signed by someone legally authorized to sign such bid.

**Bond**: A financial guarantee by a surety company that work will be
completed as described in a contract.

**Bonding capacity**: An indication of a contractor\'s credit rating.

**Bonus and penalty clause**: A provision in a construction contract for
payment of a bonus to the contractor for completing the work prior to a
stipulated date, and a charge against the contractor for failure to
complete the work by such stipulated date.

**Boundary survey**: A mathematically closed diagram of the completed
peripheral boundary of a site, reflecting dimensions, compass bearings
and angles.

**Builder\'s risk insurance**: A specialized form of property insurance
to cover work in the course of construction. Also property insurance.

**Building area**: The total area of the site which is covered by
buildings as measured on a horizontal plane at ground level.

**Building code**: A collection of rules and regulations adopted by
authorities having appropriate jurisdiction to control the design and
construction of buildings, alteration, repair, quality of materials, use
and occupancy, and related factors of buildings within their
jurisdiction.

**Building inspector**: A member of a building department, usually of a
municipality or Tribe, who inspects construction to determine if it
conforms to both the requirements of the building code and the approved
plans.

**Building permit**: A written authorization to an applicant for a
specific project allowing him to proceed with construction; granted by
the authorized agency, a Tribe or local municipality, having
jurisdiction after plans have been filed, reviewed.

**Building rehabilitation**: The returning of a building to a useful
state by repair, alteration, and modification.

**Building restoration**: The accurate reestablishment of the form and
details of a building, its artifacts, and the site on which it is
located, usually as it appeared at a particular time.

**Building restriction**: Any one of a number of restrictions, imposed
on the construction of a building or the use of land. Also known as
restrictive covenant.

**Building services**: The utilities and services supplied and
distributed within a building generally related to the building
environment.

**Building site**: Same as site.

**Bureau of Indian Affairs:** Branch of the U.S. Department of the
Interior.

# C

**Cash allowance**: An amount established in the contract documents for
inclusion in the contract sum to cover the cost of prescribed items not
specified in detail, with provision that variations between such amount
and the finally determined cost of the prescribed items will be
reflected in change orders appropriately adjusting the contract sum.

**Certificate for payment**: A statement from the architect to the owner
or Tribe confirming the amount of money due the contractor for work
accomplished or materials and equipment suitable stored, or both.

**Certificate of insurance**: A memorandum issued by an authorized
representative of an insurance company stating the types, amounts, and
effective dates of insurance in force for a designated insured.

**Certificate of occupancy**: A document issued by governmental
authority certifying that all or a designated portion of a building
complies with the provisions of applicable statutes and regulations, and
permitting occupancy for its designated use.

**Certification**: A declaration in writing that a particular product or
service complies with a specification or stated criterion.

**Change order**: A written order to the contractor signed by the owner
or Tribe and the architect issued after the execution of the contract,
authorizing a change in the work or an adjustment in the contract sum or
the contract time as originally defined by the contract documents; may
add to subtract from, or vary the scope of work. A change order may be
signed by the architect alone (provided he has written authority from
the owner or Tribe).

**Changes in work**: Changes ordered by the owner consisting of
additions, deletions, or other revisions within the general scope of the
contract, the contract sum and the contract time being adjusted
accordingly.

**Clerk of the works**: Same as project representative.

**Closed list of bidders**: Same as invited bidders.

**Closed specifications**: Specifications stipulating ;the use of
specific products or processes without provision for substitution. Same
as base bid specifications.

**Code**: A legal instrument adopted within a political jurisdiction
including a Tribe or a reservation, that prescribes the minimum
acceptable levels of the design, construction, installation, and
performance of materials, components, devices, items of equipment,
appliances used in a building, or building system and/or subsystem.

**Code of practice**: A technical document setting forth standards of
good construction for various materials and trades.

**Community**: A Tribe of people having common rights, privileges, or
interests, or living in the same place under the same laws and
regulations.

**Compensation**: Payment for services rendered or products or materials
furnished or delivered.

**Completed operations insurance**: Liability insurance coverage for
injuries to persons or damage to property occurring after an operation
is completed but attributed to that operation; does not apply to damage
to the completed work itself.

**Completion bond, construction bond, contract bond**: The guarantee of
a bonding company that a contractor will perform and deliver the work
contracted for free of all encumbrances and liens.

**Completion date**: In the contract documents, the date of substantial
completion of the work.

**Completion list**: Same as inspection list.

**Comprehensive general liability insurance**: A broad form of liability
insurance covering claims for bodily injury and property damage which
combines under one policy coverage for all liability exposures on a
blanket basis and automatically covers new and unknown hazards that may
develop; automatically includes contractual liability coverage for
certain types of contracts.

**Comprehensive services**: Professional services performed by the
architect in addition to the basic services in such related areas as
project analysis, programming, land use studies, feasibility
investigations, financing, construction management, and special
consulting services.

**Conditions of the bid**: Conditions set forth in the instructions to
bidders, the notice to bidders or advertisement for bids, the invitation
to bidders, or other similar bid documents prescribing the conditions
under which bids are to be prepared, executed, submitted, received, and
accepted.

**Conditions of the contract**: those portions of the contract documents
that define, set forth or relate to: contract terminology; the rights
and responsibilities of the contracting parties an of others involved in
the work; requirements for safety and for compliance with laws and
regulations; general procedures for the orderly prosecution and
management of the work; payments to the contractor; and similar
provisions of a general, nontechnical nature.

**Consent of surety**: Written consent of the surety on a performance
bond and/or labor and material payment bond to such contract charges as
change orders or reductions in the contractor\'s retainage, or to final
payment, or to waiving notification of contract changes.

**Construction**: All the on-site work done in building or altering
structures, from land clearance through completion, including
excavation, erection, and the assembly and installation of components
and equipment.

**Construction bond**: A completion bond.

**Construction budget**: The sum established by the owner or Tribe as
available for construction of the project. The highest acceptable bid.

**Construction cost**: The cost of all the construction portions of a
project, generally based upon the sum of the construction contracts and
other direct construction costs; does not include the compensation paid
to the architect and consultants, the cost of land, right-of-way, or
other costs which are defined in the contract documents as being the
responsibility of the owner or Tribe.

**Construction documents**: The working drawings and specifications.

**Construction documents phase**: The third phase of the architect\'s
basic services. In this phase the architect prepares from the approved
design development documents, for approval by the owner or Tribe, the
working drawings and specifications and the necessary bidding
information. In this phase the architect also assists the owner in the
preparation of bidding forms, the conditions of the contract, and the
form of agreement between the owner or Tribe and the contractor.

**Construction inspector**: Same as project representative.

**Construction loan**: A loan to builder for a short term, financing
construction prior to permanent financing.

**Construction management**: the special management services performed
by the architect or others during the construction phase of the project,
under separate or special agreement with the owner. This is not part of
the architect\'s basic services, but is an additional service sometime
included in the comprehensive services.

**Construction phase - administration of the construction contract**:
The fifth and final phase of the architect\'s basic services, which
includes the architect\'s general administration of the construction
contracts.

**Construction survey**: Same as engineering survey.

**Consultant**: An individual or organization engaged by the owner or
Tribe or the architect to render professional consulting services
complementing or supplementing the architect\'s services.

**Contingency allowance**: A sum designated to cover unpredictable or
unforeseen items of work, or changes subsequently required by the owner
or Tribe.

**Contingency agreement**: Any agreement under which the rights or
obligations of a arty are subject to the happening of stated
contingency.

**Contract**: A legally enforceable promise or agreement between two or
among several persons.

**Contract administration**: The duties and responsibilities of the
architect or consultant during the construction phase.

**Contract bond**: Same as completion bond.

**Contract date**: Same as date of agreement.

**Contract documents**: Those documents that comprise a contract:
owner-contractor agreement, conditions of the contract, plans and/or
drawings, specifications, all addenda, modifications, and changes
together with any other items stipulated as being specifically included.

**Contracting officer**: The person designated as the official
representative of the federal and/or tribal government with specific
authority to act on behalf of the government in connection with the
project.

**Contractor**: One who undertakes responsibility for the performance of
construction work, including the provision of labor and materials, in
accordance with plans and specifications and under a contract specifying
cost and schedule for completion of the work; the person or organization
responsible for performing the work and identified as such in the
owner-contractor agreement.

**Contractor\'s affidavit**: A certified statement of the contractor,
properly notarized, relating to payment of debts and claims, release of
liens, or similar matters requiring specific evidence for the protection
of the owner or Tribe. Same as non-collusion affidavit.

**Contractor\'s estimate**: A forecast of construction cost, as opposed
to a firm proposal, prepared by the contractor for a project or a
portion of a project.

**Contractor\'s liability insurance**: Insurance purchased and
maintained by the contractor to protect him from specified claims which
may arise out of or result from his operations under the contract,
whether such operations be by himself or by any subcontractor or by
anyone directly or indirectly employed by any of them, or by anyone for
whose acts any of them may be liable.

**Contractor\'s option**: A provision of the contract documents under
which the contractor may select certain specified materials, methods, or
systems at his own option, without change in the contract sum.

**Contractor\'s proposal**: Same as bid.

**Contract sum**: the price stated in the owner-contractor agreement,
which is the total amount payable by the owner or Tribe to the
contractor for the performance of the work in the contract document, can
be adjusted only by a signed change order.

**Contract time**: The period of time established in the contract
documents pursuant to other agreement between the parties, or by
operation of law, within which the work must be completed.

**Contractual liability**: Liability assumed by a party under a contract
by express language, implication, or operation of law. A \"hold
harmless\" clause.

**Cost breakdown**: Same as schedule of values.

**Cost-plus-fee agreement**: An agreement under which the contractor or
the architect is reimbursed for his direct and indirect costs and in
addition, is paid a fee for his services. The fee is usually stated as a
stipulated sum or as a percentage of cost.

**CPM**: Abbreviation for critical path method.

**Critical path method**: CPM, a system of project planning, scheduling,
and control that combines all relevant information into a single master
plan, permitting the establishment of the optimum sequence and duration
of operations; the interrelation of all the efforts required to complete
a construction project are shown; and indication is given of the efforts
that are critical to timely completion of the project.

# D

**Damages**: Same as liquidated damages.

**Date of agreement**: The date stated on the face of the agreement. If
no date is stated, it may be the date on which the agreement is actually
signed, if this is recorded, or it may be the date established by the
award; also referred to as the contract date.

**Date of commencement of the work**: The date established in a notice
to proceed or, in the absence of which notice, the date of the agreement
or such other date as may be established therein or by the parties
thereto.

**Date of substantial completion**: The date certified by the architect
when the work or a designated portion thereof is sufficiently complete,
in accordance with the contract documents, so the owner or Tribe may
occupy the work or designated portion thereof for the use for which it
is intended.

**Debt service**: The periodic payment of a loan, including both accrued
interest and a portion of the principal.

**Deduction**: The amount deducted from the contract sum by a change
order.

**Deductive alternate**: An alternate bid resulting in a deduction from
the same bidder\'s base bid. Same as Alternate Bid.

**Deed**: Any duly attested, written document executed under seal and
delivered to effect a transfer, bond, or contract, such as a conveyance
of real property or interest therein.

**Deed restriction**: A limitation on the use of land, which is set
forth in a deed conveying the restrictions.

**Defective work**: Work no complying with the contract requirements.

**Demolition**: The systematic destruction of a building, all or in
part.

**Department of Housing and Urban Development**: A department of the
U.S. government that strives for a decent, safe, and sanitary home and
suitable living environment for every American.

**Deposit for bidding documents**: Monetary deposit required to obtain a
set of construction documents and bidding requirements, customarily
refunded to bona fide bidders on return of the documents in good
conditions within a specified time.

**Design**: To compose a plan for a building. The architectural concept
of a building as represented by plans, elevations, renderings, and other
drawings.

**Design development phase**: The second phase of the architect\'s basic
services. In this phase the architect prepares the design development
documents consisting of drawings and other documents to fix and describe
the size and character of the entire project as to structural,
mechanical and electrical systems, materials and such other essentials
as may be appropriate; the architect also submits to the owner or Tribe
a further statement of probable construction cost.

**Design documents**: Same as structural design documents.

**Detailed estimate of construction costs**: A forecast of construction
cost prepared on the basis of a detailed analysis of materials and labor
for all items of work, as contrasted with an estimate based on current
area, volume, or similar unit costs.

**Developed area**: An area of land upon which improvements have been
made.

**Development**: A tract of previously undeveloped land which is
subdivided and provided with all necessary utilities, such as roads,
water, electricity, sewers, etc.

**Direct personnel expense**: Salaries and wages of principals and
employees engaged on a project, assignment, or task, including mandatory
and customary benefits.

**Document deposit**: Same as deposit for bidding documents.

## E

**Educational occupancy**: The use of a building or buildings for the
gathering of groups of six or more persons for purposes of instruction.

**Eminent domain**: The power or right of the nation, Tribe, or state to
take private property for public use, usually with reasonable
compensation to the owner.

**Employer\'s liability insurance**: Insurance protection for the
employer against claims by employees for damages which arise out of
injuries or diseases sustained in the course of their work and which are
based on common law negligence rather than on liability under workmen\'s
compensation acts.

**Engineer**: A person trained and experienced in the profession of
engineering; a person licensed to practice the profession by the
authority in the area.

**Engineering survey**: A survey conducted to obtain essential
information for planning an engineering project or developing and
estimating its cost.

**Environmental design professional**: The professions collectively
responsible for the design of man\'s physical environment.

**Environmental impact statement**: A detailed analysis of the probable
environmental consequences of proposed federal legislation, major
federal actions, or large-scale construction making use of federal
funds, likely to have significant effects on environmental quality; such
a statement is required by the National Environmental Policy Act of
1969.

**Estimate**: Same as detailed estimate of construction costs. Same as
statement of probable construction costs. Same as contractor\'s
estimate.

**Extended coverage insurance**: Same as property insurance.

**Extra services**: Same as additional services.

**Extra work**: Any work not included in the contract documents; an
extra.

## F

**Facility**: The building(s), playground(s), parking area(s), and
campus where the program or construction site is located.

**Fee-plus-expenses agreement**: Same as cost-plus-fee agreement.

**Field representative**: Same as project representative.

**Field supervision**: That portion of the architect\'s supervisory work
which is done at the construction site.

**Final acceptance**: The owner\'s or Tribe\'s acceptance of a project
from the contractor upon certification by the architect that it is
complete and in accordance with the contract requirements; final
acceptance is confirmed by the making of final payment unless otherwise
stipulated at the time of making such payment.

**Final completion**: The completion of work and all contract
requirements by the contractor.

**Final inspection**: The final review of the project by the architect
prior to his issuance of the final certificate for payment.

**Final payment**: Payment made by the owner or Tribe to the contractor,
upon issuance by the architect of the final certificate for payment, of
the entire unpaid balance of the contract sum as adjusted by change
orders.

**Fire and extended coverage insurance**: Same as property damage
insurance.

**Fixed limit of construction cost**: The maximum allowable cost of the
construction work as established in the agreement between the owner or
Tribe and the architect. Same as construction budget.

**Force account**: A term used when work is ordered to be done without
prior agreement as to lump sum or unit price cost thereof and is to be
billed for at cost of labor, materials and equipment, insurance, taxes,
etc., plus an agreed percentage for overhead and profit.

## G

**General conditions**: That part of the contract documents that sets
forth many of the rights, responsibilities, and relationships of the
parties involved. Same as conditions of the contract.

**General contract**: Under the single contract system, the contract
between the owner or Tribe and the contractor for construction of the
entire work.

**General contractor**: The prime contractor who is responsible for most
of the work at the construction site, including that performed by the
subcontractors.

**Generally accepted standard**: A specification, code, rule, guide, or
procedure in the field of construction, or related thereto, recognized
and accepted as authoritative.

**Guarantee**: A legally enforceable assurance of the quality or
duration of a product or of work performed.

**Guaranteed maximum cost**: An amount estimated in an agreement between
the owner or Tribe and contractor as the maximum cost of performing
specified work on the basis of cost of labor and materials plus overhead
expense and profit.

**Guaranty bond**: Same as bid bond. Same as labor and material payment
bond. Same as performance bond. Same as surety bond.

## H

**HUD**: The abbreviation for U.S. Department of Housing and Urban
Development.

## I

**IHS**: Abbreviation for Indian Health Service.

**Indian Health Service**: A branch of the Public Health Service

**Inspection list:** A list of items of work to be completed or
corrected by the contractor during or after completion of the work and
during the warranty period.

**Instructions to bidders**: Instructions contained in the bidding
requirements for preparing and submitting bids for a construction
project. Same as notice to bidders.

**Invitation to bid**: A solicitation of competitive bids. The term
usually is employed in connection with private construction projects,
but also may be used for government projects, for the purchase of
supplies or other goods, or in connection with the sale of property.
Same as advertisement for bids.

**Invited bidders**: The bidders selected by the architect and the owner
or Tribe as the only ones from whom bids will be received.

## J

**Job**: Same as project. Same as work.

**Job captain**: A member of the architect\'s staff normally
responsible, on a given project, for the preparation of drawings and
their coordination with other documents.

**Job site**: The site of the construction project.

**Job superintendent**: Same as superintendent.

## L

**Labor and material payment bond**: A bond of the contractor in which a
surety guarantees to the owner or Tribe that the contractor will pay for
labor and materials used in the performance of the contract. The
claimants under the bond are those having direct contracts with the
contractor or any subcontractor.

**Landscape architect**: A person trained and experienced in the design
and development of landscapes and gardens.

**Land survey**: A survey of landed property establishing or
reestablishing lengths and directions of boundary lines. Land boundaries
are usually defined by ownership, commencing with the earliest owners
through successive ownerships and partitions.

**Latest event occurrence time**: In CPM, the latest point in time by
which no further work must be done on an activity if the project is not
to be delayed.

**Latest start date**: In CPM, the latest possible point in time by
which an activity must be started if the project is not to be delayed.

**Letter of intent**: A letter signifying an intention to enter into a
formal agreement, usually setting forth the general terms of such
agreement.

**Liability insurance**: Insurance that protects the insured against
liability on account of injury to the person or property of another.

**Licensed architect**: Same as architect.

**Licensed contractor**: A person or organization certified by
governmental authority, where required by law, to engage in construction
contracting.

**Licensed engineer**: Same as professional engineer.

**Lien**: A right enforceable against specific property to secure
payment of an obligation.

**Lien waiver**: An instrument by which a person, organization or Tribe
who has or may have a right of mechanic\'s lien against the property of
another relinquishes such right. Same as mechanic\'s lien and release of
lien.

**Life cycle cost**: The cost of a building or equipment based not only
on the initial expenditure, but also on its maintenance and operating
cost over its entire lifetime.

**Liquidated damages**: A sum specified in a contract whereby damages in
the event of breach are to be determined. In a construction contract
liquidated damages usually are specified as a fixed sum per day for
failure to complete the work within a specified time.

**Listed**: Equipment, materials, or products included in a list
published by an organization acceptable to the authority having
jurisdiction.

**Loss of use insurance**: Insurance protecting against financial loss
during the time required to repair or replace property damaged or
destroyed by an insured peril.

**Lowest responsible bidder, lowest qualified bidder**: The bidder who
submits the lowest bona fide bid and is considered to be fully
responsible and qualified to perform the work for which the bid is
submitted.

**Lowest responsive bid**: The lowest bid which is responsive to and
complies with the bidding requirements.

**Lump sum agreement**: Same as stipulated sum agreement.

## M

**Main contractor**: Same as general contractor.

**Maintenance bond**: A bond that provides a guarantee to an owner or
Tribe that the contractor will rectify defects in workmanship or
materials reported to the contractor within a specified time period
following final acceptance of the work under contract.

**Measured drawing**: An architectural drawing of an existing structure,
drawn to scale.

**Mechanic\'s lien**: A lien on privately owned real property created by
state statute in favor of persons supplying labor or materials for a
building or structure or improvements thereof, generally for the value
of the labor or materials supplied by them.

**Model code**: A proposed building code that is written and published
by building official associations available for adoption by states,
Tribes, counties and municipalities.

**Modification**: A written amendment to the contract document signed by
both parties. A change order. A written order for a minor change in the
work issued by the architect.

**Modular construction**: Construction in which a selected unit or
module, such as a box or other sub-component, is used repeatedly in the
aggregate construction.

**Mortgage**: A loan in which property is used as security for the debt.

**Mortgagee**: The lender from whom a mortgage is obtained.

**Mortgage lien**: A charge against property as security for the payment
of a loan.

**Mortgagor**: The borrower who obtains a mortgage.

## N

**Negligence**: Failure to exercise that degree of care which a
reasonable and prudent person would exercise under the same
circumstances.

**Negotiation phase**: Same as bidding or negotiation phase.

**Non-collusion affidavit**: A notarized statement by a bidder that he
has prepared his bid without collusion of any kind.

**Nonconforming work**: Work that does not fulfill the requirement of
the contract documents.

**Notice to bidders**: A notice contained in the bidding requirements
informing prospective bidders of the opportunity to submit bids on a
project and setting forth the procedures for doing so.

**Notice to proceed**: Written communication issued by the owner or
Tribe to the contractor authorizing him to proceed with the work and
establishing the date of commencement of the work.

## O

**Observation of the work**: A function of the architect in the
construction phase, during his periodic visits to the site, to
familiarize himself generally with the progress and quality of the work
an to determine in general if the work is proceeding in accordance with
the contract documents.

**Occupancy permit**: Same as certificate of occupancy.

**Opening of bids**: Same as bid opening.

**Ordinance**: A law or rule adopted by a local or tribal governmental
authority.

**Orientation**: The placement of a structure on a site with regard to
local conditions of sunlight, wind, and drainage.

**OSHA**: The abbreviation for \"Occupational Safety and Health
Administration,\" Department of Labor.

**Over design**: As applied to structural design, a design based on
requirements higher than service demands, usually as a means of
compensating for unknown and/or anticipated deficiencies.

**Owner**: Tribe or tribal government, the architect\'s client and party
to the owner-architect agreement.

**Owner-architect agreement**: A contract between the architect and the
client or Tribe for professional services.

**Owner-contractor agreement**: A contract between the owner or Tribe
and contractor for a construction project.

**Owner\'s inspector**: A person employed by the owner or Tribe to
inspect construction in the owner\'s behalf.

**Owner\'s liability insurance**: Insurance which protects the owner or
Tribe against claims arising from his ownership of property and which
may be extended to cover claims which may arise from operations of
others under the construction contract.

## P

**Package dealer**: A person or organization assuming responsibility
under a single contract for the design and construction of a project to
meet the specific requirements of another.

**Parcel**: Of land, a contiguous land area which is considered as a
unit, which is subject to a single ownership, and which is legally
recorded as a single piece.

**Partial occupancy**: Occupancy by the owner or Tribe of a portion of a
project prior to final completion.

**Partial payment**: A progress payment.

**Payment request**: Same as application for payment.

**P.E.**: Abbreviation for professional engineer.

**Penal sum**: The amount named in a contract or bond as the damages or
penalty to be paid by a signatory thereto in the event he failed to
perform his contractual obligations or does not do so within the time
prescribed by the contract.

**Penalty-and-bonus clause**: Same as bonus-and penalty clause.

**Penalty clause**: A contract provision setting forth the damages a
party must pay in the event of his breach. If such a clause is regarded
by the court as too harsh to be regarded as a fair estimate of probable
damaged, it will normally be held invalid. Same as liquidated damages.

**Percentage agreement**: An agreement for professional services in
which the compensation is based upon a percentage of the construction
cost.

**Percentage fee**: Compensation based upon a percentage of construction
cost. Same as fee.

**Performance bond**: A bond of the contractor in which a surety
guarantees to the owner or Tribe that the work will be performed in
accordance with the contract documents; frequently combined with the
labor and materials payment bond, except where prohibited by stature.

**Permit**: A document issued by a governmental authority having
jurisdiction to authorize specific work by the applicant.

**Personal injury**: In insurance terminology, injury or damage to the
character or reputation of a person, as well as bodily injury. Person
injury insurance usually covers such situations. Same as bodily injury.

**Personal property**: Movable and other property not classified as real
property.

**PERT**: Acronym for project evaluation and review technique.

**PERT schedule**: A PERT chart of the activities and events anticipated
in a work process.

**PHS**: Abbreviation for Public Health Service.

**Planning**: the process of studying the layout of spaces within
buildings and of buildings and other facilities or installations in open
spaces in order to develop the general scheme of a building or group of
buildings.

**Post-completion services**: Additional services rendered after
issuance of the final certificate for payment, such as consultation
regarding maintenance, processes, systems, etc.

**Power of attorney**: An instrument authorizing another to act as
one\'s agent. Same as attorney-in-fact.

**Preliminary drawings**: Drawings prepared during the early stages of
the design of a project.

**Preliminary estimate**: Same as statement of probable construction
costs.

**Premises**: Land and/or it appurtenances.

**Pre-bid Conference or Pre-bid walk-through**: A meeting of any
interested bidder, at the job site, giving an opportunity to review the
project, and discuss any unclear design or programming issues.

**Pre-qualification of prospective bidders**: The process of
investigating the qualifications of prospective bidders on the basis of
their competence, integrity, and responsibility relative to the
contemplated project.

**Prime contract**: A contract between the owner or Tribe and contractor
for constriction of a project or portion thereof.

**Prime contractor**: The contractor on a project having a contract
directly with the owner.

**Prime professional**: Any person or firm having a contract directly
with the owner for professional services.

**Principle**: One on whose behalf or in whose name binding transactions
may be entered into by another; usually called the agent.

**Production drawings**: Same as working drawings.

**Professional adviser**: An architect engaged by the owner or Tribe to
direct an authorized design competition for the selection of an
architect.

**Professional engineer**: A designation reserved, usually by law, for a
person or organization professionally qualified and duly licensed to
perform such engineering services as structural, mechanical, electrical,
sanitary, civil, etc.

**Professional liability insurance**: Insurance designed to insure an
architect or engineer against claims for damages resulting from alleged
professional negligence. Also known as errors and omissions insurance.

**Professionals practice**: The practice of one of the environmental
design professionals in which services are rendered within the framework
of recognized professional ethics and standards.

**Program**: A statement prepared by or for an owner or Tribe, with or
without an architect\'s assistance, setting forth the conditions and
objectives for a building project including its general purpose and
detailed requirements, such as a complete list of the rooms required,
their sizes, special facilities, etc.

**Program evaluation and review technique (PERT)**: A management control
technique applied to building construction; determines what must be done
to complete construction by a given date. Similar to the critical path
method (CPM).

**Progress chart**: A chart prepared by a contractor, brought up to date
monthly; the principal trades of the project are tabulated vertically
and the scheduled construction time shown horizontally.

**Progress payment**: A partial payment made during progress of the work
on account of work completed and/or materials suitably stored.

**Progress schedule**: A diagram, graph, or other pictorial or written
schedule showing proposed and actual times of starting and completion of
the various elements of the work.

**Project**: A construction undertaking, composed of one or more
buildings and the site improvements, planned and executed in a fixed
time period.

**Project budget**: The sum established by the owner or Tribe as
available for the entire project, including the construction budget,
land costs, equipment costs, financing costs, compensation of
professional services, contingency costs, and other similar established
or estimated costs.

**Project cost**: The total cost of a project including the professional
compensation, land costs, furnishings and equipment, financing, and
other changes as well as the construction cost.

**Project Manager**: A third party consultant or employee of the
owner/Tribe that works for the owner and coordinates the activities of
the project. Assists with the development of specific strategies of the
project (including bidding and contracting), establishing time frames
and benchmarks for the project, assisting the owner in hiring other
professional services; reviews plans and drawings and makes
recommendations to the owners, monitors the budget of all phases of the
project, works with all consultants, monitors the day-to-day work
progress of the contractor, assists the owner in close-out, and prepares
for occupancy.

**Project manual**: The manual prepared by the architect for a project,
including the bidding requirements, conditions of the contract, and the
technical specifications.

**Project representative**: The architect\'s representative at the
project site who assists in the administration of the construction
contract.

**Property**: Any asset, real or personal.

**Property damage insurance**: Part of general liability insurance
covering injury to or destruction of tangible property, including loss
of use resulting from, but usually not including property that is in the
area, custody and control of the insured.

**Property line**: A recorded boundary of a plot.

**Property survey**: Same as boundary survey.

**Proposal**: In construction terminology, could be the same as bid.
(Request For Proposals): A document used by the owner/Tribe to evaluate
the professional capabilities of a business, agency, or individual
against a set of pre-established criteria that may be weighted on a
numerical scale using a set of questions that allows the owner/Tribe to
determine the best business, agency, or individual to hire for their
specific job. Normally, the proposal does not include the cost of
services; cost is generally a negotiated amount after the competing
proposals have been evaluated and ranked. The proposal, however, is
designed to evaluate such criteria as previous work experience, work
with Tribes or tribal organizations, and, specifically, your Tribe;
preference can be given to local or in-state business; the
qualifications of the lead professional and the qualifications of the
team that will be working on the project; and if their previous work has
been completed on time and within budget.

**Proposal form**: Same as bid form.

**Public liability insurance**: Insurance covering liability of the
insured for negligent acts resulting in bodily injury, disease, or death
of others than employees of the insured, and/or property damage.

## Q

**Quality assurance**: The inspection, testing, and other relevant
action taken to ensure that the desired level of quality is in
accordance with the applicable standards or specifications for the
product or work.

**Quality control**: The inspection, analysis, and other relevant action
taken to provide control over what is being done, manufactured, or
fabricated, so that a desirable level of quality is achieved and
maintained.

**Quality survey**: A detailed analysis and listing of all items of
materials and equipment necessary to construct a project.

**Quitclaim deed**: A written instrument whereby the seller conveys only
whatever interest he has in property, but makes no warranties or
representations as to the nature of that interest or as to the absence
of any limitations or restrictions thereon, or even that he has any
right to the property at all.

**Quotation**: A price quoted by a contractor, sub-contractor, material
supplier, or vendor to furnish materials, labor, or both.

## R

**Real estate**: Property in the form of land and all its appurtenances,
such as buildings.

**Real property**: Land, everything growing on it, and all improvements
made to it.

**Realty Officer**: A tribal and/or BIA employee who assists the
governments in realty issues including, but not limited to, disputes,
developments, and assignments.

**Record drawings**: Construction drawings revised to show significant
changes made during the construction process, usually based on marked-up
prints, drawings and other data furnished by the contractor to the
architect.

**Record sheet**: On a construction job, a sheet or printed form for
keeping a record, usually of materials delivered, number of men working
at the various trades, hours worked, etc.

**Regulation**: Any rule prescribing permitted or forbidden conduct,
whether found in legislation or in the actions of an administrative
agency such as the Tribe or the BIA or some other federal agency.

**Release of lien**: Instrument executed by one supplying labor,
materials, or professional services on a project which releases his
mechanic\'s lien against the project property. Same as mechanic\'s lien.

**Rende**r: To give a mechanical drawing, as in elevation, a more or
less complete indication of shades and shadows.

**Reservation**: Land designated as being \"in trust\" to the federal
government on behalf of the individual Tribe or tribal government.

**Resident engineer**: A person representing the owner\'s or Tribe\'s
interests at the project site during the construction phase; term
frequently used on projects in which a governmental agency is involved
such as a Tribe.

**Resident inspector**: Same as owner\'s inspector.

**Responsible bidder**: Same as lowest responsible bidder.

**Restricted list of bidders**: Same as invited bidders.

**Restriction**: On land, an encumbrance limiting its use.

**Restrictive covenant**: An agreement between two or more individuals,
incorporated within a deed, that stipulates how land may be used.

**Retainage**: A sum withheld from progress payments to the contractor
in accordance with the terms of the owner-contractor agreement.

**Retention**: The withholding of a portion (usually 10 percent) of a
periodic payment to a contractor, by prior agreement, for work
completed. The retention is held in escrow for a stipulated time period
after the acceptance of the completed work by the architect and owner or
Tribe.

**Retention money**: Same as retention.

**Right-of-way**: Any strip of land, including surface and overhead or
underground space, which is granted by deed or easement for the
construction and maintenance of specified linear elements such as power
and telephone lines.

## S 

**Satisfaction**: Cancellation of an encumbrance on real property,
usually by payment of the debt secured by it.

**Schedule**: A detailed tabulation of components, items, or parts to be
furnished.

**Schedules of values**: A statement furnished by the contractor to the
architect reflecting the portions of the contract sum allotted for the
various parts of the work and use as the basis for reviewing the
contractor\'s application for progress payment.

**Schematic design phase**: The first phase of the architect\'s basic
services. In this phase, the architect consults with the owner or Tribe
to ascertain the requirements of the project and prepares schematic
design studies consisting of drawings and other documents illustrating
the scale and relationship of the project components for approval by the
owner or Tribe. The architect also submits to the owner or Tribe a
statement of probable construction costs.

**Schematic drawing**: Same as schematic design phase.

**Scheme**: The basic arrangement for an architectural composition.
Primary sketch for a design.

**Selected bidder**: The bidder selected by the owner or Tribe for
discussion relative to the possible award of the construction contract.

**Selected list of bidders**: Same as invited bidders.

**Setback**: The minimum distance between a reference line and a
building, or portion thereof.

**Shop drawings**: Drawings, diagrams, illustrations, schedules,
performances charts, brochures, and other data prepared by the
contractor or any subcontractor, manufacturer, supplier, or distributor,
which illustrates how specific portions of the work shall be fabricated
and/or installed.

**Single contract**: A contract for construction of a project under
which a single prime contractor is responsible for all the work.

**Site**: An area or plot of ground with defined limits on which a
building or project is located or proposed to be located.

**Site investigation**: An examination of the subsoil and surface of a
site to obtain complete information necessary for the design of
foundations and structures on them.

**Site plan**: A plan of a construction site showing the position and
dimensions of the building to be erected and the dimensions and contour
of the lot.

**Special conditions**: A section of the conditions of the contract,
other than general conditions and supplemental conditions, which may be
prepared for a particular project. Same as conditions of the contract.

**Special hazards insurance**: Additional perils insurance to be
included in property insurance.

**Specifications**: **1.** A written document describing in detail the
scope of work, materials to be used, method of installation, and quality
of workmanship for a parcel of work to be place under contract; usually
utilized in conjunction with working drawings in building construction.
**2.** A part of the contract documents contained in the project manual
consisting of written descriptions of a technical nature of materials,
equipment construction systems, standards, and workmanship.

**Standard**: A document prepared by a recognized standard-setting
organization that prescribes methods and materials for the safe use and
consistent performance of specific technologies.

**Standards of professional practice**: Statements of ethical principles
promulgated by professionals societies to guide their members in the
conduct of professionals practice.

**Statement of probable construction cost**: Cost forecasts prepared by
the architect during the schematic design, design development, and
construction documents phases of basic services for the guidance of the
owner or Tribe.

**Statute of limitations**: A statute specifying the period of time
within which legal action must be brought for alleged damage or injury.
The lengths of the periods vary from state to state and depends upon the
type of legal action.

**Statutory bond**: A bond, the form and contents of which is prescribed
by statute.

**Stipulated sum agreement**: A contract in which a specific amount is
set forth as the total payment for performance of the contract.

**Structural design documents**: The plans, design details, and job
specifications prepared by the structural designer.

**Structural drawings**: Drawings, usually prepared by a structural
engineer, of the design and working drawings of a building\'s structure.

**Structural engineering**: That branch of engineering concerned with
the design and construction of structures to withstand physical forces.

**Sub-bidder**: One who tenders to a bidder on a prime contract a
proposal to provide materials and/or labor.

**Subcontract**: **1.** An agreement between a prime or general
contractor and a subcontractor for the execution of a portion of the
contractual obligation of the prime contract to the owner or Tribe.
**2.** A person or organization who has a direct contract with a prime
contractor to perform a portion of the work at the site.

**Subcontractor bond**: A performance bond given by a subcontractor that
guarantees performance of a contract and the payment of bills for labor
and materials.

**Substantial completion**: Same as date of substantial completion.

**Substitution**: A materials or process offered in lieu of, and as
being equivalent to, a specified material or process.

**Successful bidder**: Same as selected bidder.

**Superintendent**: At a construction site, the contractor\'s
representative who is responsible for continuous field supervision,
coordination, and completion of the work and, unless another person is
designated in writing by the contractor to the owner and the architect,
for the provision of accidents. With the BIA, the federal official in
charge of the agency office.

**Supervision**: the observation and inspection of construction work in
order to ensure conformity with the contract documents, direction of
work by the contractor\'s personnel.

**Supplemental conditions**: Same as supplementary conditions.

**Supplementary conditions**: A part of the contract documents that
supplements and may also modify provisions of the general conditions.

**Surety**: A person or organization who, for a consideration, promises
in writing to make good the debt or default of another.

**Surety bond**: A legal instrument under which one party agrees to
answer to another party for the debt, default, or failure to perform of
a third party.

**Survey**: A boundary and/or topographic mapping of a site.

## T

**Tender**: A proposal or bid for a contract to perform work, often on a
form, completed by a contractor, giving estimated price and time to
complete a contract.

**Terminal expense**: An expense incurred in connection with the
termination of a contract.

**Time**: Time limits or period stated in the contract.

**Timely completion**: Completion of the work or designated portion
thereof on or before the date required.

**Time of completion**: The date established in the contract, by name or
by number of days, for substantial completion of the work.

**Title insurance**: Insurance, offered by a company, that the title to
property is clear or that it may be cleared by curing specified defects.

**Title search**: An inquiry into the historical ownership record of a
property.

**Topographical survey**: The configuration of a surface including its
relief and the locations of its natural and man-made features.

**Trade**: A person\'s occupation or craft, usually involving manual
skill.

**Tribal government**: The government of the Tribe, using a written or
unwritten constitution or set of principles for governance.

**Turn-key job**: A job in which the contractor completes all work and
furnishing of a building so that it is ready for immediate use.

## V

**Variation order**: Same as change order.

**Visual inspection**: Inspection by examination without the use of
testing apparatus.

## W

**Waiver of lien**: Same as lien waiver.

**Work**: All labor necessary to produce the construction required by
the contract document.

**Working drawings**: Drawings, intended for use by a contractor,
subcontractor, or fabricator, which form part of the contract documents
for a building project.

**Workmen\'s compensation insurance**: Insurance covering liability of
an employee to his employees for compensation and other benefits
required by workmen\'s compensation laws.

## Z

**Zoning**: The control by a Tribe or municipality of the use of land
and buildings, the height and bulk of the buildings, the density of
population, the relation of a lots building coverage to open space, size
and location of yards and setbacks, and the provision of any ancillary
facilities.

**Zoning permit**: A permit issued by appropriate governmental authority
authorizing land to be used for a specific purpose.

**RESOURCES**

**Center for American Indian Economic Development (CAIED)**

College of Business Administration

P.O. Box 15066

Flagstaff, AZ 86011-5066

\(928\) 523-7320

World Wide Web:
[**http://www.cba.nau.edu/caied**](http://www.cba.nau.edu/caied)

Located on the campus of Northern Arizona University, CAIED is an
information and resource center for tribal nations and communities.
CAIED stimulates and nurtures entrepreneurship by providing technical
assistance, business consulting, training, and educational workshops to
Indian reservations. The center also provides a resource library with
current information on Arizona Tribes, Indian economic development, and
general development issues on Indian Country.

## First Nations Development Institute 

2300 Fall Hill Ave., Suite 412

Fredericksburg, VA 22401

\(540\) 371-5615

World Wide Web:
[**http://www.firstnations.org/**](http://www.firstnations.org/)

First Nations Development Institute focuses specifically on supporting
the culturally-compatible, sustainable asset-building and
asset-management efforts of tribal communities. First Nations
administers a number of grant and loan funds to support Indian economic
development, including the Eagle Staff Fund and the Native Youth &
Culture Fund. First Nations has published a number of publications aimed
at supporting the capacity of Native non-profit organizations, including
*Writing a Business Plan* and *Providing a Long Term Map for
Organizational Effectiveness*. The booklets are available for free from
the First Nations Web site.

**Local Initiatives Support Corporation (LISC)**

501 Seventh Avenue

New York, NY, 10018

\(212\) 455-9800

World Wide Web: [**http://www.lisc.org**](http://www.lisc.org/)

LISC is a national nonprofit community development investor whose
mission is to help community based organizations create healthy
neighborhoods that are good places to live, work, raise children and
conduct business. Through more than 30 local offices around the country,
LISC channels grants, loans and equity investments to nonprofit
community development corporations (CDCs) for community or neighborhood
redevelopment. A list of local LISC offices is available on the LISC Web
site.

LISC's Community Investment Collaborative for Kids (CICK) offers
financial and technical assistance to build new child care centers or
refurbish old ones. CICK typically works with public officials, child
care providers, philanthropies and others to devise solutions to the
child care supply problem. LISC's online resource library includes a
number of free documents on facilities development and financing,
including the CICK Resource Guides on *Equipping and Furnishing Early
Childhood Facilities* and *Creating Playgrounds for Early Childhood
Facilities*.

**Minority Business Development Agency (MBDA)**

U.S. Department of Commerce

World Wide Web: [**http://www.mbda.gov**](http://www.mbda.gov/)

MBDA was established to foster the creation, growth and expansion of
minority-owned businesses in America. The MBDA Web site includes a
variety of free articles on finance, marketing, hiring employees, and
other topics.

MBDA also has regional Native American Business Development Centers
(NABDCs) located in several cities. NABDCs can provide minority
entrepreneurs with one-on-one assistance in writing business plans,
marketing, management and technical assistance, and financial planning
to assure adequate financing for business ventures. The Centers are
staffed by business specialists who have the knowledge and practical
experience needed to run successful and profitable businesses.

**National Children's Facilities Network (NCFN)**

World Wide Web: [**http://www.ncfn.org/**](http://www.ncfn.org/)

The National Children's Facilities Network (NCFN) is a coalition of
nonprofit financial and technical assistance intermediaries involved in
planning, developing, and financing facilities for low-income early care
and education programs. NCFN member organizations build public-private
partnerships and craft innovative financing solutions to build the
supply and quality of child care in lower-income urban and rural
communities nationwide. As of August 2005, NCFN's member organizations
have invested over \$156 million in the renovation, construction and
improvement of more than 1,800 child care centers and homes serving
108,000 children across the country.

NCFN's Web site contains free information and links on topics including
quality early childhood facility design, regulations, and facilities
financing. Downloadable tools on the Web site include a child care space
planning spreadsheet; budget and financing spreadsheets; and an in-depth
PowerPoint presentation on facilities planning and financing.

**National Head Start Facilities Assistance Desk**

The National Head Start Training and Technical Assistance Resource
Center (NRC)

\(800\) 303-0705

World Wide Web:
[**http://www.hsnrc.org/facilities/**](http://www.hsnrc.org/facilities/)

The National Head Start Facilities Assistance Desk can provide Tribal
Child Care programs with information, training, and assistance regarding
early childhood facilities. The Assistance Desk offers support in areas
such as facility maintenance and operations; space utilization and
design criteria; environmental assessments and reviews; renovation and
construction funding sources; playground design and safety; the
Americans with Disabilities Act (ADA); and steps in the construction
process.

**Rural Information Center (RIC)**

National Agricultural Library

10301 Baltimore Avenue, Room 304

Beltsville, MD 20705-2351

\(800\) 633-7701

World Wide Web:
[**http://www.nal.usda.gov/ric/**](http://www.nal.usda.gov/ric/)

RIC provides information and referral services to local, tribal, state,
and federal government officials; community organizations; rural
electric and telephone cooperatives; libraries; businesses; and,
citizens working to maintain the vitality of America\'s rural areas. The
RIC Web site contains over 3,000 links to current and reliable
information on a wide variety of rural resources and funding sources,
including RIC\'s database, Federal Funding Sources for Rural Areas
Database.

**Rural Community Assistance Corporation (RCAC)**

3120 Freeboard Drive, Suite 201

West Sacramento, CA 95691

\(916\) 447-2854

World Wide Web: [**http://www.rcac.org**](http://www.rcac.org/)

RCAC is a nonprofit organization dedicated to helping rural communities
achieve their goals by providing training, technical assistance, and
access to resources. Most RCAC services are available to communities
with populations fewer than 50,000 and for the benefit of low-income
people. RCAC has field offices throughout the West. Since its inception,
RCAC has placed a priority on providing information and assistance to
Native American groups, serving rural and Native communities in the
areas of drinking water, wastewater, solid waste, housing, and financial
services.

**Small Business Administration's 8(a) Business Development**

World Wide Web: [**http://www.sba.gov/8abd/**](http://www.sba.gov/8abd/)

SBA\'s 8(a) Business Development program provides business development
assistance to socially and economically disadvantaged business persons
to ensure opportunities to participate more fully and successfully in
the mainstream national economy. Business Opportunity Specialists (BOS),
located in SBA district offices, provide business development assistance
to active 8(a) participants.

**Small Business Administration's** **Office of Women's Business
Ownership (OWBO)**

\(202\) 205-6673

World Wide Web:
[**http://www.onlinewbc.gov/**](http://www.onlinewbc.gov/)

OWBO promotes the growth of women-owned businesses through programs that
address business training and technical assistance, and provide access
to credit and capital, federal contracts, and international trade
opportunities. Available resources include a women\'s business ownership
representative in every SBA district office, a nationwide network of
mentoring roundtables, women\'s business centers in nearly every state
and territory, women-owned venture capital companies, and the Online
Women\'s Business Center.

##### List of Appendices

A.  CCDF Program Instruction (ACYF-PI-CC-04-01), dated January 23, 2004

> <http://www.acf.hhs.gov/programs/ccb/policy1/current/pi0401/pi0401.htm>

B.  CCDF Policy Interpretation Question (ACYF-PIQ-CC-99-01), dated
    February 24, 1999

> <http://www.acf.hhs.gov/programs/ccb/policy1/current/pq9901/pq9901.htm>

C.  Sample Notice of Federal Interest

D.  Application of Title III (Public Accommodations) of the Americans
    with Disabilities Act (ADA) to the Tribes

E.  U.S. Department of Housing and Urban Development Indian Housing Area
    Office of Native American Programs (ONAP) Directory

> <http://www.hud.gov/offices/pih/ih/onap/area_onap.cfm>

F.  Tribal Child Care Technical Assistance Center Fact Sheet

> <http://nccic.org/tribal/whatis.html>

G.  National Child Care Information Center Fact Sheet

> <http://nccic.org/about/aboutnccic.html>

H.  Child Care Bureau Staff List

> <http://www.acf.hhs.gov/programs/ccb/helpcont/index.htm>

I.  ACF Regional Office Tribal Lead Contacts List

> <http://www.acf.hhs.gov/programs/ccb/ta/raaddr/liaisons.htm>

J.  National Head Start Facilities Assistance Desk Fact Sheet

> <http://nccic.org/tribal/documents/flyer.html>

**Appendix C**

**Sample Notice of Federal Interest**

## SAMPLE NOTICE OF FEDERAL INTEREST

Upon completion of construction or major renovation with CCDF funds of a
facility, the grantee must record a Notice of Federal Interest in the
appropriate official records for the jurisdiction in which the facility
is located. Below is a sample:

### [Notice of Federal Interest]{.underline}

This is to serve as notice to all potential sellers, purchasers,
transferrers, and grantees of a transfer of the real property described
below as to the Federal Government\'s reversionary interests as set
forth in 45 CFR Part 92, which have arisen as a result of \[GRANTEE\'S
NAME\] receipt and use of Department of Health and Human Services\'s
grant funds in connection with said property. These grant funds were
awarded on \[DATE\] in accordance with the Child Care and Development
Block Grant Act. The property to which this notice is applicable is
\[ADDRESS\] and identified as Parcel \[INSERT APPROPRIATE NUMBER(S)\] in
the books and records of \[INSERT APPROPRIATE NAME OF RECORDING
AGENCY\]. Said real property is also described as: \[INSERT LEGAL
DESCRIPTION.\]

In accordance with 45 CFR 92.31, this property may not be mortgaged,
used as collateral, sold, leased, or otherwise transferred, or its title
encumbered, without the prior written permission of the Administration
for Children and Families, Department of Health and Human Services.
There is a prohibition against the use of this property during its
useful life for other than the purpose for which the property was
financed for or for any purpose inconsistent with that authorized by the
Child Care and Development Block Grant Act and applicable regulations.
These grant conditions and requirements cannot be altered or nullified
through a transfer of ownership. Further information as to the Federal
Government\'s interests referred to above can be obtained from the
Administration for Children and Families, 370 L\'Enfant Promenade, S.W.,
Washington, D.C. 20024.

This Notice of Federal Interest was completed by \[NAME, TITLE,
SIGNATURE\] on \[DATE\].

**Appendix D**

**Application of Title III (Public Accommodations) of the Americans with
Disabilities Act (ADA) to the Tribes**

## Application of Title III (Public Accommodations) of the Americans with Disabilities Act (ADA) to the Tribes

In a long awaited decision, the 11th Circuit Court of Appeals ruled on
February 3, 1999, in Florida Paraplegic Association, Inc. v. Miccosukee
Tribe of Indians of Florida, that while Title III of the Americans with
Disabilities Act (ADA), (the part that applies to public accommodations)
does apply to the tribes, tribal sovereign immunity prevents the filing
of individual lawsuits against tribes. However, the court also ruled
that the Attorney General for the United States can pursue an action
against tribes failing to comply with the ADA.[^4]

This lawsuit was filed by the Florida Paraplegic Association and the
Association for Disabled Americans. They alleged that the Miccosukee
Indian Tribe\'s restaurant and entertainment facility was in violation
of Title III of the ADA because the handicapped parking was inadequate,
the bathrooms were not properly equipped, the ramps were too steep, etc.
The tribe argued it was immune from such a lawsuit.

The appeals court first found that the ADA did apply to the tribes: they
decided that the ADA is a general law and as such it is presumed to
govern the tribes unless certain conditions are met which were not met
here. However, it also found that the tribes were immune from private
suit, because tribal sovereign immunity is never to be abrogated unless
it is eliminated in unmistakably clear and explicit language which was
not done in the drafting of the ADA.

Nonetheless, according to this court decision, tribes must still comply
with Title III of the Americans with Disabilities Act (ADA). This is
because the ADA allows the United States Attorney General (AG) to bring
suit against \"any person or group of persons . . . engaged in a pattern
or practice of discrimination\" and tribal sovereign immunity does not
bar suits by the United States.

Cases brought by the Attorney General are for pattern or practice
discrimination or cases of general public importance; the Attorney
General does not file lawsuits in every case in which a private litigant
could file a lawsuit. Also, by contrast with private lawsuits which
include no monetary damages, lawsuits by the AG can result in fines (up
to \$50,000 for the first violation and up to \$100,000 for subsequent
violations), as well as compensatory damages for the individual if
requested by the Department of Justice. Punitive damages are not
available. In determining the amount of damages courts may take into
consideration good faith efforts at compliance.

This was a case of first impression, meaning it was the first court
decision to address the issue. The ruling is binding on the Eleventh
Circuit which includes the states of Alabama, Florida and Georgia.

*Prepared by: Abby J. Cohen*

*Child Care Law & Policy Consultant*

*5337 College Avenue, Suite 332*

*Oakland, CA 94618*

[^1]: **Note**: Major portions of this chapter are excerpted from the
    *Manual for HUD Staff to Conduct an Environmental Review*, U.S.
    Department of Housing and Urban Development, available online at
    <http://www.hud.gov/offices/cpd/energyenviron/environment/compliance/forms/trngmanual/index.cfm>.

[^2]: Source: National Inventory of Dams, U.S. Army Corps of Engineers,
    January 2001, as quoted on the Web site of the National Dam Safety
    Program (NDSP), Federal Emergency Management Agency (FEMA).

[^3]: Contract Conditions, Substitution of Materials and Equipment, AIA
    Document A201/SC; Supplementary Conditions of the Contract for
    Construction.

[^4]: A specific exclusion in Title I (which deals with employment)
    already had made clear that Indian Tribes are not considered
    employers under the ADA thereby excluding them from coverage for
    employment discrimination based on disability. (See 42 U.S.C.
    Section 12111(5)(B)(i)).