© 2007 Nan McKay & Associates Hosted by Carrol Vaughan © 2006 Nan McKay & Associates The New HUD Procurement Handbook 7460.8 REV 2 - Procurement & Contract

2007 Nan McKay & Associates Hosted by Carrol Vaughan 2006 Nan McKay & Associates The New HUD Procurement Handbook 7460.8 REV 2 - Procurement & Contract Management

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Applies specifically to public housing agencies for the operation of public housing Is not applicable to Indian Housing Authorities or the operation of the Section 8 Housing Choice Voucher Program

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Also, does not apply to income generated by the Central Office Cost Center (COCC) Management fees Bookkeeping fees Asset management fees Not considered Federal program income Governed by local & State requirements, if applicable

2007 Nan McKay & Associates Review of Applicable Regulations

2007 Nan McKay & Associates Procurement Rules PHAs are considered local governments for admin purposes Operating Fund, Capital Fund = Federal program grant funds

2007 Nan McKay & Associates Part 85, CFR 24 Code of Federal Regulations Known as the common rule because it applies to all state & local recipients of Federal funds Guidance on development of policy & system, contract admin., standard of conduct for PHA employees involved in procurement

2007 Nan McKay & Associates CFR 48 Code of Federal Regulations Deals with acquisition of goods & services Covers cost principles in detail Used by all recipients of Federal funds

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Provides very clear direction on what is mandatory and what is not Shall and must mean an action is mandatory, required by statute or regulation Should and may mean an action or item is provided as guidance but is NOT mandatory

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Notes that certain information on PHA procurements is considered public Name of winning contractor, contract price Protected from disclosure Proprietary business information (technical methods, detailed pricing, personal information Check State requirements regarding Freedom of Information law or similar

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Fundamental goal of the PHAs procurement system should be to provide needed supplies & services considering Cost Quality Timeliness of delivery or service Compliance with applicable laws & policies

2007 Nan McKay & Associates Commonly Used Definitions New Definitions

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Consortia: two or more PHAs joining together for planning, reporting, administrative functions Instrumentality: Branch of the PHA through which functions or policies are implemented

2007 Nan McKay & Associates HUD Handbook 7460.8 REV 2 Joint Venture Partner: Participant, other than PHA, in a business arrangements Micro Purchases: Purchases under $2000

2007 Nan McKay & Associates Procurement Authority & Administration PHAs are required to establish & follow a written procurement policy HUD approval not required however May want to have reviewed/approved to be exempt from prior HUD approval of certain procurement actions May also self certify that PHA policy meets all HUD requirements

2007 Nan McKay & Associates Delegation of Authority Under PBM more decentralization of procurement function is expected Policy required for delegation of procurement authority Limits of authority in terms of dollar value each PHA classification may make Other limitations, e.g., types of contracts an individual may award

2007 Nan McKay & Associates Delegation of Authority Delegation policy should also be clear if individual staff may further re-delegate any of his/her authority and how much! Training for site staff is important Individual staff will be binding the PHA legally

2007 Nan McKay & Associates General Requirements Planning necessary to manage the procurement function Type & extent depends on method & size of procurement; amount involved PHAs are encouraged to enter into intergovernmental agreements if these agreements provide economy & efficiency

2007 Nan McKay & Associates General Requirements Equipment Leasing May be financially advantageous for PHA to consider leasing instead of purchasing equipment Evaluate each case on factors: Length of period the equipment is to be used Financial & operating advantages of different types of equipment

2007 Nan McKay & Associates General Requirements Cumulative rental payments for the estimated period of use vs. net purchase cost Maintenance & service costs Potential obsolescence of equipment because of technological advances Trade in value Imputed interest Availability of servicing capability PHA staff

2007 Nan McKay & Associates Documentation Required Revised handbook requires that PHAs maintain records sufficient to detail each procurement action Must be in writing & kept in procurement file

2007 Nan McKay & Associates Documentation Required Rationale for method of procurement used Solicitation documents Selection of contract if not apparent Not needed if using firm, fixed price Information regarding selection & rejection

2007 Nan McKay & Associates Documentation Required Basis for the contract price Contract administration issues/actions Records must be maintained for 3 years after final payment is made & any actions closed.

2007 Nan McKay & Associates Internal Controls Under decentralized procurement system the Housing Manager (site manager) is generally designated as Contracting Officer May order/receive & authorize payment Other internal controls needed Site based budgets Appropriate purchasing thresholds

2007 Nan McKay & Associates Ethics Chapter Revised handbook includes strong emphasis on ethical behavior Ethical standards apply to PHA employees and those with vested interest Board of Commissioners Requirements are included ins 24 CFR 85.36(b)(3) & explained in handbook

2007 Nan McKay & Associates Ethics Chapter All employees/others must act to ensure fair, competitive access to procurement opportunities by responsible parties All employees/others must conduct themselves in a manner that fosters public confidence in the integrity of the PHA

2007 Nan McKay & Associates Ethics Chapter Clear requirement for a written code of standards that govern the performance of PHA employees engaged in award & administration of procurement actions PHA must observe conflict of interest provisions that include.....

2007 Nan McKay & Associates Ethics Chapter Employees cannot participate in selection, award of administration of a contract if there is a financial or other form of conflict of interest real or perceived

2007 Nan McKay & Associates Ethics Chapter Employees/others may not enter into a contractual arrangement if there is a direct or indirect interest during tenure or for one year thereafter. Examples: Present or former member of the Board or any immediate family member. Employee who formulates policy or influences decisions or their immediate family members

2007 Nan McKay & Associates Ethics Chapter No present or former employee/other may sell supplies, services or construction to the PHA for one year following the date such employment ceased.

2007 Nan McKay & Associates Ethics Chapter Gratuities, Kickbacks, Confidential Info. All solicitations & contracts above small purchase threshold must include clauses that prohibit gratuities & kickbacks May not accept gratuities while employed or for one year after employment PHA may set rules for non-substantial financial interest must be included in Procurement Policy Gratuities include money, gifts, favors

2007 Nan McKay & Associates Ethics Chapter Kickbacks & Anticompetitive Practices Breach of ethical conduct for any payment, offer of employment to be made as an inducement for award Use of Confidential Information Disclosure is considered a breach of standards Includes contents of bid prior to opening Names/firms that submitted bids

2007 Nan McKay & Associates Ethics Chapter Use of Confidential Information PHA generated information related to a procurement Cost estimates Any information that would have a direct bearing on award of the process

2007 Nan McKay & Associates Ethics Chapter Sanctions must be established and are to be enforced including civil and administrative remedies & should be included in Procurement Policy Oral/written warnings Suspension w/wo pay Termination Dismissal from position (Commissioner)

2007 Nan McKay & Associates Small Purchase Procedures Small purchase limit set at $100,000 State may have lower limit that the PHA must observe PHA may establish a Micro Purchase threshold of up to $2,000 per purchase

2007 Nan McKay & Associates Micro Purchases Threshold may be up to $2,000, included in Procurement Policy PHA does not need competitive quotations if price is considered reasonable Micro purchases should be distributed among appropriate vendors Does not replace Petty Cash process

2007 Nan McKay & Associates Micro Purchases PHA may use purchasing cards (debit or credit) to facilitate micro purchases to help reduce transaction costs Additional quotes not needed Must establish reasonable procedures Limiting type or amount of purchases allowed Procedure for reviewing purchases prior to payment

2007 Nan McKay & Associates Small Purchases Above Micro Purchase Limit Quotations may be in writing, orally, fax, catalogs, internet advertisement, public display of advertisement PHA may want to establish dollar thresholds for written or oral quotations Quotation evaluation involves comparison of quotes If only one response, statement of reasonableness should be included in file

2007 Nan McKay & Associates Small Purchase Documentation Revised handbook advises PHA to keep documentation to a minimum! Information supporting purchase (paper or electronic) should be retained for management review purposes

2007 Nan McKay & Associates Small Purchases Petty Cash Should be used for very small, one time purchases Should be included in Procurement Policy Must be in compliance with CFR 24 85.36 Amount of fund, maximum for each purchase, procedures to appoint Petty Cash Administrators to be included in Procurement Policy

2007 Nan McKay & Associates Small Purchases No requirements for bid, payment, performance bonds for small purchases

2007 Nan McKay & Associates Small Purchases For construction contracts greater than $2000, less than $100,000 PHAs must incorporate clauses contained in HUD Form 5370-EZ General Conditions plus applicable Davis Bacon decision For maintenance contracts greater than $2000, less than $100,000 clauses from HUD 5370-C & wage decisions must be included (includes non routine maintenance)

2007 Nan McKay & Associates Small Purchases Required clauses include: Examination of contractor records Rights of Ownership & Proprietary Interest Energy Efficiency Procurement of Recovered Materials (EPA) Termination for Cause & for Convenience For contracts of $10,000 or more

2007 Nan McKay & Associates Small Purchases The revised handbook notes that small purchases are not sealed bidding Contracting Officers (including site staff) may and are encouraged to negotiate price & other terms of purchases

2007 Nan McKay & Associates Specialty Contracts Revised handbook clarifies distinction between employment contracts and contracting for independent services

2007 Nan McKay & Associates Employment Contracts Part of the personnel process, not procurement Subject to rules, policies governing such process, developed by PHA Often used to employ executive directors Old ACC requires contracts in excess of two years to be approved in writing by HUD Local Office; new ACC does not specify term Suggests 2- year term with three 1-year options

2007 Nan McKay & Associates Independent Contracts Considered to be procurement actions Subject to standards of 24 CFR 85.36 No employer-employee relationship

2007 Nan McKay & Associates Evaluating Cost & Price Generally comparison of proposed prices is used to establish price reasonableness Proposed prices should be compared with the initial cost estimate In sole source or non competitive proposals PHAs must perform cost analysis except under certain conditions Ref. 10.3.A.2 & 10.3.B

2007 Nan McKay & Associates Evaluating Cost & Price May use an alternate method if adequate number of responses is not received without having to do a formal cost analysis Compare proposals to past contract prices for same or similar items/services Inflation, market changes should be considered

2007 Nan McKay & Associates Evaluating Cost & Price Published catalog or market prices Any discounts should also be offered to PHA May consider paying more if the PHA requires more than general commercial customers do, e.g., longer warranty periods, servicing Goal is to ensure PHA doesnt pay more than other buyers for the same item or services

2007 Nan McKay & Associates Estimating Cost & Price Professional estimate, prepared by the PHA or an outside party (consultant) Level of analysis should be commensurate with the complexity of the procurement

2007 Nan McKay & Associates HUD Review Requirements PHAs can be exempted from the required pre- award review of contracts under two circumstances: HUD, at PHA request, certifies that its procurement system is determined to meet the standards under 24 CFR 85.36 OR....

2007 Nan McKay & Associates HUD Review Requirements The PHA self certifies that its procurement system meets the standards of CFR 24 85.36 and the HUD Handbook

2007 Nan McKay & Associates HUD Review Requirements Exemptions are granted for a one year period and may be automatically renewed unless the PHA is found not be in compliance, e.g., auditor report

2007 Nan McKay & Associates HUD Approval Required Non competitive procurements over the small purchase threshold Brand name only procurements over small purchase threshold Awards to other than low bidder over small purchase threshold Proposed modifications detailed in Forms 5370, 5370-C, 5370-EZ

2007 Nan McKay & Associates HUD Approval Required Use of QBS for other than A/E, joint venture partners or energy service contracts Professional service contracts if the total term exceeds two years (old ACC) Legal services over $100,000 Procurements that exceed the amount noted under a Notice of Deficiency or corrective action under Capital Fund

2007 Nan McKay & Associates HUD Approval Required Contracts that exceed five years, including options Field offices must determine there is no practical alternative Solicitations related to energy performance contracting & utility add ons Contracts by PHA whose procurement procedures are out of compliance

2007 Nan McKay & Associates State or Local Laws & PHA Procurement Any PHA that is located in a state or locality that has procurement laws or rules must comply with those rules Generally if Federal & locality rules conflict, the more stringent law applies E.g., small purchase threshold

2007 Nan McKay & Associates Exceptions to Local Pre-emption Geographic Preferences cannot be used in the evaluation of offers State Prevailing Wage Davis Bacon or HUD Determined Wage Rates preempt any State prevailing wage rate when the State wage is higher than the applicable Federal rate.

2007 Nan McKay & Associates Cooperative Business Relationships Intergovernmental Agreements for Procurement Activity Initial contract must have been procured in accordance with 24 CFR 85.36 Can result in significant economy & efficiency for PHA May only be used for procurement of common supplies & services

2007 Nan McKay & Associates Cooperative Business Relationships Intergovernmental Agreements for Procurement Activity PHAs files should include copy of the Agreement Agreement must be between the PHA and a state or local agency may be another PHA

2007 Nan McKay & Associates Selecting Joint Venture Partners For provision of PHA administrative or management functions of public housing, or provision of supportive and social services May select one of two options QBS, using RFQ and negotiations of price Sole source proposal Conditions apply....

2007 Nan McKay & Associates Selecting Joint Venture Partners Joint Venture Partner by Sole Source Resources or services would not be otherwise available to the PHA on the open market Resident group is able to act as partner in performing the functions needed to provide supportive or social services. Team members are selected to provide services Paid on a cost reimbursement basis only Check for Conflict of Interest Issues

2007 Nan McKay & Associates Consortia QHWRA authorizes PHAs to form a special type of consortium (Section 13 Consortium) Participating PHAs submit join PHA Plans, may combine all or part of their funding & program administrative duties Consortium must comply with procurement laws

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development 24 CFR 85.36 applies to any HOPE VI or Mixed Finance procurement activity whenever Federal funds are used If public & private funds are co-mingled, 24 CFR 85.36 applies Does not apply if the PHA is not spending Federal funds

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Important Definitions

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Community & Supportive Services: Part of a HOPE VI plan that addresses the service needs of residents PHAs are obligated under the terms of HOPE VI grants to provide a range of services for residents to make progress toward self sufficiency

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Development Partner: For profit or non profit partner of the PHA that carries out the physical revitalization of a mixed finance project and bears financial risk Development partners must be selected using the PHAs procurement process

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Instrumentality: An entity formed whose assets, operations and management are legally controlled by the PHA that utilizes public housing funds to create public and affordable housing

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Mixed Finance: Combined use of Federal public housing funds and privately financed sources to development public housing units

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Owner Entity: Owns the public housing units in a mixed finance development; may be a partnership that includes a PHA or a separate entity altogether

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Operating Subsidy Only Project: Public housing units financed without the use of HUD capital assistance or HOPE VI funds; HUD agrees to provide operating subsidy for the units Owners/developers of this type of project must be procured through a competitive process

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Selection of Development Partner QBS method used and price is negotiated with highest ranked offeror based on responses to RFQ Must be a procurement process with full and open competition Cost/price analysis must be completed for all procurements prior to submission of proposals to determine value of requested services

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development QBS method is not permitted for the procurement of program managers or legal services for HOPE VI or mixed finance projects

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Procurement Requirements of Selected Developer Not subject to 24 CFR 85.36 unless the PHA exercises significant functions within the owner entity with respect to managing units

2007 Nan McKay & Associates Public/Private Partnerships, HOPE VI, Mixed Finance Development Actions NOT considered significant: Monitoring units to ensure compliance Coordinating communications with partners Providing community/supportive services Attending construction meetings, reviewing & approving payment draws Maintaining the waiting list Review & approval of operating & capital budgets

2007 Nan McKay & Associates Utility Purchasing, Energy Conservation, Energy Performance Energy Conservation Loans PHA obtains a loan to finance energy improvements Subsidy add-on is provided to cover the cost of amortizing the loan during the contract term Amount of add on cannot exceed the cost savings generated each year by the work

2007 Nan McKay & Associates Utility Purchasing, Energy Conservation, Energy Performance Energy Conservation Loans PHA must procure a Comprehensive Energy Analysis and must have the analysis, list of improvements and proposed contract reviewed & approved by HUD Improvements must be procured in the same manner as other purchases by PHA

2007 Nan McKay & Associates Utility Purchasing, Energy Conservation, Energy Performance Energy Performance Contracting Allows the PHA to freeze the utility rolling base UEL is calculated at pre-retrofit consumption PHA keeps 100% of savings resulting from decrease in consumption 75% of savings must be used to pay debt of efficiency measures installed

2007 Nan McKay & Associates Utility Purchasing, Energy Conservation, Energy Performance Energy Performance Contracting Third party contractor must be procured using open competition HUD must approve the comprehensive energy analysis, RFP for energy contractor, final contract as negotiated between the PHA and contractor, following competitive procurement

2007 Nan McKay & Associates Utility Purchasing, Energy Conservation, Energy Performance Utility Purchasing PHAs may have an opportunity to purchase utilities at lower costs because of deregulation and restructing If there are multiple providers of a utility service, the PHA must conduct a competitive procurement If only one provider, PHA is not required to competitively procure utility services

2007 Nan McKay & Associates Developing a Procurement Policy

2007 Nan McKay & Associates Procurement Policy Should Include Statement on access by public to certain information Clear wording on ethical behavior expected by PHA employees/others engaged in procurement activities including: Definition of immediate family Dollar amount for gifts, e.g., $25

2007 Nan McKay & Associates Procurement Policy Should Include Procurement methods that will be used by the PHA Petty cash Small Purchase (include dollar level) Sealed Bids Competitive Proposals Noncompetitive Proposals Cooperative Purchasing Agreements

2007 Nan McKay & Associates Procurement Policy Should Include Conditions for cost & price analysis Methods of solicitation to be used for various levels of procurement Bonding requirements for construction contracts over $100,000 Contractor Qualifications & Duties Different types of contracts the PHA will use

2007 Nan McKay & Associates Procurement Policy Should Include Identification of required contract clauses Types of specifications the PHA will use Process for filing an appeal Assistance available for small and other types of businesses Required Board approval of policy Delegation of Contracting Authority

2007 Nan McKay & Associates Procurement Policy Should Include Disposition Policy (may also be a stand alone policy) Self Certification (if applicable)

2007 Nan McKay & Associates Quick Review of Procurement Processes

2007 Nan McKay & Associates Procurement and Contracts Example purchase and procurement method: Purchase AmtProcurement Method Less than $50Petty cash. Receipt from vendor attached to log and request $50 to $2000Micropurchase. One reasonable quote. Equally distributed among vendors $2000 to $100,000 Three quotes (fax, written or email). Over $100,000Formal advertisement and sealed bid or request for proposals Page 7-2

2007 Nan McKay & Associates Small Purchases Simplest method of procurement for supplies, materials and services (including professional and construction) that dont exceed small purchase threshold

2007 Nan McKay & Associates Small Purchases Micro purchases PHAs may establish a separate micro purchase limit up to $2,000 per purchase PHA may make these purchases without competitive quotations if the price is reasonable PHA is encouraged to distribute these fairly

2007 Nan McKay & Associates Small Purchases PHA procurement policy stipulates dollar limit Federal statutory limit for small purchases is $100,000 PHAs threshold cant exceed the Federal small purchase limit or any lower value set by the state or locality Common methods for small purchases are petty cash and purchase orders

2007 Nan McKay & Associates Small Purchases Petty cash Board establishes petty cash limits Sales ticket or receipt should always support each purchase made Petty cash should be kept to a minimum since purchasing in limited quantities doesnt provide the best price

2007 Nan McKay & Associates Small Purchases Purchasing Cards Debit or credit cards Can be used to reduce transaction costs May be useful for on site purchasing tasks PHA should establish procedure to ensure cards are only used for specific purposes (type or amount of purchase) Internal control of cards is essential

2007 Nan McKay & Associates Small Purchases Purchase orders Primary method for procuring goods & services One quote is okay if reasonable, but usually more prudent to get oral or written quotes from at least three sources Evaluate the quotes and purchase from lowest, responsible bidder

2007 Nan McKay & Associates Sealed Bidding Page 7-9

2007 Nan McKay & Associates Sealed Bidding Invitations for bid (IFB) For construction and routine supplies above limit for small purchases, ou need to prepare an independent cost estimate and specifications, and publicize the upcoming procurement Local newspaper or trade journal

2007 Nan McKay & Associates Sealed Bidding Invitations for bid (IFB) The next step is to prepare the IFB Contains specifications, instructions to bidders, and required contract forms Issued to all sources who responded to the public notice, and any other firm known to the PHA as able to perform the work IFB specifies deadline to submit bids

2007 Nan McKay & Associates Sealed Bidding Invitations for bid (IFB) PHAs can use the internet to conduct public procurements as long as the procurements comply with the CFR 85.36 and the PHAs procurement policy

2007 Nan McKay & Associates Sealed Bidding Pre-bid conference After the IFB, PHA may hold a pre-bid conference with prospective contractors Notice of any conference is in the IFB Nothing at the conference changes the terms unless an amendment is issued Transcript of conference sent to all those on mailing list, not just at the conference

2007 Nan McKay & Associates Sealed Bidding Bid opening Each bid must be date/time stamped upon receipt Sealed bids should be stored in a locked box, cabinet or safe until bid opening

2007 Nan McKay & Associates Sealed Bidding Bid opening Sealed bidding is a public process any interested parties are permitted to attend At the time stated in IFB, conduct a public bid opening, reading aloud names of bidders and prices No commitment is made to any bidder at the bid opening

2007 Nan McKay & Associates Sealed Bidding Bid opening When the bids have been publicly opened and read, all the bids are tabulated, showing names of bidders and prices

2007 Nan McKay & Associates Sealed Bidding Analysis of bids and award of contract Next, determine whether the low bid is responsive to the IFB (conforms to requirements) if so, analyze the low bidders capability to do the work Also perform a price analysis, which may be as simple as comparing prices, to ensure contract price will be reasonable

2007 Nan McKay & Associates Sealed Bidding Analysis of bids and award of contract Determine if low bid is responsive Make sure bidders havent imposed any additional conditions or terms Documented previous unsatisfactory performing is grounds for determining bidder not responsible

2007 Nan McKay & Associates Sealed Bidding Award of contract Once you determine low bidder is both responsive and responsible, award contract Any bid rejection must be documented with reasons

2007 Nan McKay & Associates Competitive Proposals (RFP) Page 7-11

2007 Nan McKay & Associates Competitive Proposals (RFP) Sealed bidding is the preferred method for goods & construction; professional services (architect, engineer) done through the competitive process Both technical and price factors are considered Allows discussions with each offeror

2007 Nan McKay & Associates Competitive Proposals (RFP) Begins with PHA describing its needs in a statement of work (SOW), publicizing the upcoming procurement, and preparing both an independent cost estimate and a technical evaluation plan for analyzing proposals received

2007 Nan McKay & Associates Competitive Proposals (RFP) PHA then prepares an RFP which identifies the technical and price evaluation factors and format for submitting proposals The PHA issues the RFP to the respondents of the public notice and those on the PHAs mailing list

2007 Nan McKay & Associates Competitive Proposals (RFP) When proposals are received on closing date, they arent publicly opened Kept confidential There are multiple award factors It may take days to evaluate all proposals After selection is made, the basis for the selection is subject to public inspection

2007 Nan McKay & Associates Competitive Proposals (RFP) After proposals are received, PHA evaluates technical and price factors, documents in writing, and establishes a competitive ranges of offerors Then you notify those offerors whose proposals are deficient and not considered Page 7-12

2007 Nan McKay & Associates Competitive Proposals (RFP) Then, separate negotiations (in person or phone) with each in competitive range After negotiations conclude, PHA establishes a cut-off date for receipt of best and final offers Any offeror in the competitive range can change its offer PHA evaluates and awards contract

2007 Nan McKay & Associates Summary of Sealed Bidding vs. Competitive Proposals An important difference is the finality of offers In competitive proposals, changes in nature and price may be made after proposals opened Not allowed under sealed bidding Competitive method permits discussions with competing offerors and allows them to change their proposals, including price

2007 Nan McKay & Associates Noncompetitive Proposals Procurement through a sole source or a single source when only one offer is received Must comply with 24 CFR 85.36(d)(4)

2007 Nan McKay & Associates Noncompetitive Proposals Follows similar process to competitive proposals Proposal must be evaluated & technical/cost aspects may be negotiated Cost analysis is required because there is no price competition

2007 Nan McKay & Associates Noncompetitive Proposals Written justification is required to document necessity of using this method Description of requirement History of prior purchases & nature Specific exception from 24CFR Statement of unique circumstances

2007 Nan McKay & Associates Noncompetitive Proposals Description of efforts made to find competitive sources, e.g., type of advertising used Statement of efforts that will be taken in the future to promote competition for the requirement Signature of the Contracting Officer or higher approval authority as required by PHA policy

2007 Nan McKay & Associates Ethics in Public Contracting PHA must have a written code of standards that governs performance of employees who engage in award & administration of contracts Included in the PHAs procurement policy

2007 Nan McKay & Associates Ethics in Public Procurement PHAs procurement policy should prohibit any employee from participating in the selection of a vendor or award of a contract if a conflict real or perceived would be involved Page 7-25

2007 Nan McKay & Associates Ethics in Public Procurement Also recommended that policy prohibit employees who participate in the procurement process from accepting gifts, gratuities, favors or kickbacks from current or potential vendors or contracts Page 7-25

2007 Nan McKay & Associates Ethics in Public Procurement Penalties should be established & included in policy for those employees who breach ethical standards Oral or written warnings/reprimands Suspension with/without pay Termination of employment Dismissal from the office or agency position

2007 Nan McKay & Associates Questions & Answers

2007 Nan McKay & Associates Thank you for attending! Our July September Lunch n Learn Calendar is out! Check out these upcoming sessions: How to Reduce Common Rent Calc Errors July 6 Fair Housing Issues for Management July 20 Navigating PIC/WASS WEBINAR! Aug 17 HCV Legislative and Regulatory Update Sept 14 Register at http://www.nanmckay.comhttp://www.nanmckay.com

Documents

© 2007 Nan McKay & Associates Hosted by Carrol Vaughan © 2006 Nan McKay & Associates The New HUD Procurement Handbook 7460.8 REV 2 - Procurement & Contract