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Construction Services Agreement REV: 04-26-2021 PR 00 5205 - 46 F. Noncompliance with HUD's regulations in 24 CFR Part 75 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and sub contracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b) agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). 6. Benchmarks In accordance with 24 CFR 75.25(a), contractors must report the following labor hours (including total hours worked by all contractors and subcontractors) for Section 3 projects: 1. The total number of labor hours worked by all workers, 2. The total number of labor hours worked by Section 3 workers, and 3. The total number of labor hours worked by Targeted Section 3 workers. Benchmark 1: Twenty-five (25) percent or more of the total number of labor hours worked by all workers on a Section 3 project must be done by Section 3 workers Section 3 Labor Hours/Total Labor Hours = 25% and Benchmark 2: Five (5) percent or more of the total number of labor hours worked by all workers on a Section 3 project must be done by Targeted Section 3 workers Targeted Section 3 Labor Hours/Total Labor Hours = 5% 7. Employment and Training To insure that each contractor, or subcontractor undertaking work in connection with a Section 3 covered project utilizes Section 3 Workers and Targeted Section 3 Workers as trainees to the greatest extent feasible, the City shall require evidence that when feasible, contractors and subcontractors should give priority for opportunities and training to: a) Section 3 workers residing within the service area or the neighborhood of the project, and b) Participants in YouthBuild programs