Professional Procurement Requirements...2019/06/10 · importance. Procurement Laws & Policies: All procurement must follow the most stringent procurement regulations, either Federal,

Updated: 6/10/2019 Page 1 of 25

State of North Carolina Department of Environmental Quality Division of Water Infrastructure (DWI)

Professional Procurement Requirements

These guidelines are based on our procurement policy for the use by

Community Development Block Grant-Infrastructure grantees. Our

procurement policy was developed upon the advice of James Höemann,

Deputy Director of the State and Small Cities Program, to replace Subpart D

of 2 Part 200, which does not apply to the CDBG State programs, per 2 Part

200.101(d). This policy takes the most stringent of the two procurement

requirements, either state or federal, and applies them to our Units of

General Local Government (UGLG) grantee’s procurement.

Professional services include, but are not limited to grant writing, grant

administration, engineering, surveying, environmental documentation

preparation, labor standards compliance, easement/property appraisals, legal review, accounting, etc.

If an UGLG (and their contractors*, if applicable) secures the services of professionals without following the most

stringent procurement regulations, the consequences may include:

1. Costs to the UGLG that will not be eligible for CDBG-I reimbursement;

2. Project delays; and

3. Formal grievances from citizens and businesses that may have been excluded from the procurement process.

Under 2 C.F.R. §200.318(e), UGLGs may enter into intergovernmental agreements or inter-entity agreements where

appropriate to foster greater economy and efficiency to promote cost-effective use of common or shared goods and

services. Thus, UGLGs wanting to contract for grant preparation and/or grant administration with a regional or

metropolitan planning commission (RPC/MPC) or councils of government (COG) may do so without regard to the federal

procurement regulations provided that such services are billed on an actual cost basis. The primary function of

RPC/MPCs and COGs is to provide assistance to units of local government, under the direct supervision and control of

elected officials from the local units of government served. The public purpose served by the RPC/MPCs and COGs,

combined with their local control, tends to provide protection equal to those contemplated by the provisions of Subpart

If an UGLG is awarded a CDBG-I

grant, professional services

contracts (except for grant

application preparation)

CANNOT be executed until the

Division EXECUTES and SENDS

BACK the final copy of the

Grant Recipient’s Contract.

This document is intended as general information only and does not carry the force of legal opinion. The Division of Water

Infrastructure (DWI) is providing this information as a public service. This information and related materials are

presented to give the public access to information on CDBG-I professional procurement requirements. You should be

aware that, while we try to keep the information timely and accurate, there will often be delay between official

publications of the materials and the modification of these pages. Therefore, we make no express or implied guarantees.

The Federal Register and the Code of Federal Regulations remain the official source for regulatory information published

by the Department of Housing and Urban Development. We will make every effort to keep this information current and to

correct errors brought to our attention.



318. However, nothing prevents any recipient from complying with the federal provisions when procuring grant

preparation and/or administrative services if the recipient deems compliance to be equitable and in the best interest of

the program.

CDBG-I staff is available to assist in the procurement process. This document provides an overview of professional

procurement guidelines that may be useful as a quick reference.

*Contractors include an individual or firm (either non-profit or for-profit) which is paid with the CDBG funds by the

grantee in return for the delivery or performance of specific services. Contractors can include, but not limited to:

engineers, construction firms, administrative consultants, attorneys, accountants, and so forth. They are “hired” to carry

out CDBG project specific, time-limited activities, usually for a specific, one-time activity.

CDBG-I Grant Application Preparation

If awarded a CDBG-I Grant, an UGLG may request the use of a small portion of

their grant administration funds to pay for their grant application preparation

expenses. Awarded grantees may receive up to $3,000 for grant application

preparation expenses if they use census data to determine LMI and up to

$5,000 for grant application preparation expenses if they conduct an income

survey to determine LMI. Costs incurred for CDBG-I grant application

preparation are eligible for reimbursement only to successful applicants and

when all the following are conducted:

1. Services, expenses, and applicable supplies must be procured according to federal procurement regulations.

a. Micro-Purchases

i. Applies to all purchases of goods and services, including construction.

ii. Up to the micro-purchase threshold of $10,000 (currently).

iii. Can award contract without competition if price is fair and reasonable.

iv. Must distribute micro-purchases equitably among qualified suppliers to the extent practicable.

v. Cannot divide contract to lower cost below micro-purchase threshold to avoid competitive

bidding requirements.

vi. If using this method for services, check for eligibility at SAMS.gov and at the NC Department of

Administration Debarred Vendors listing prior to finalizing the service contract.

vii. Must document decision process for the purchase.

b. Small Purchases

i. Applies to all purchases of goods and services, including construction

ii. $10,001 up to the Simplified Acquisition Threshold ($250,000 currently) or the equivalent

local/state threshold if more restrictive (it is for purchase of goods).

1. Construction: Cost up to $250,000

Consult with CDBG-I Unit staff

during grant application

development if you have any

questions on application

expenses and reimbursement.



2. Goods: Cost up to $89,999

iii. Fixed price, unit price, or not-to-exceed contract types.

iv. Obtain price or rate quotes from at least three sources.

v. Document quotes, with dates and names of those giving quotes, and maintain them in the files.

vi. Standard of award: To lowest cost responsible bidder.

vii. Cannot divide contract to bring contract cost under the threshold; changes to the contract must

fall within the original scope.

viii. If using this method for services, check for eligibility at SAMS.gov and at the NC Department of

Administration Debarred Vendors listing prior to finalizing the service contract.

ix. Documentation: Quotes, with dates and names of those giving quotes, and maintain them in

the files.

x. purchases and service contracts less than $30,000 are not subject to state competitive bidding

requirements.

c. Competitive (Negotiation) Proposals / Qualifications

i. If an applicant uses a COG to write the application, competitive proposals are not needed.

ii. All grant writing contracts must only be for grant writing and related tasks, not grant

administration or other professional services and must be executed prior to the grant

application deadline.

2. If application preparation costs are to be requested, the applicant must provide a certified letter with the

application, requesting reimbursement of these costs if their project is awarded a CDBG-I grant. The letter must

clearly explain and identify:

a. An explanation as to why reimbursement of these costs are necessary for the applicant;

b. A description of the federal procurement methods used or if UGLG staff were used; and

c. Copies of RFQs/RFPs and affidavits of publication of advertising for the grant writer, and

d. The application must describe the application preparation costs within the project description and show

the costs in the project budget (under “Planning” line item).

3. If an UGLG is awarded a CDBG-I grant, they must:

a. Make available the procurement file(s) for grant application preparation for CDBG-I Unit Staff review

during the Start-Up meeting to ensure federal procurement regulations were followed. This meeting is

generally held within 30 days of the executed grant contract with DEQ;

b. Complete and submit their signatory form and certificate and vendor electronic payment form; and

c. Provide documentation of grant application preparation expenses (i.e., detailed timesheets, invoices,

receipts, cancelled checks with support invoices if the request is for reimbursement) and a complete,

error-free request for funds form.



4. Current UGLG staff whose time is

committed to conducting income surveys

for determining LMI eligibility for a grant

project application cannot be paid from

the grant funds unless they receive

overtime pay, their salaries are increased

to reflect additional duties associated

with the CDBG-I program, or their job

descriptions are temporarily changed to

defer or reassign duties. Grant funds are

paid to the general fund and the extra

pay dispersed through the regular

employee-pay method. Only the

addition to their salary can be paid from

grant funds and all hours worked on the

CDBG-I program to determine LMI

eligibility must be documented with

detailed timesheets for each employee

involved and payment must coincide

with hours worked. These detailed

timesheets will be checked in the field

prior to grant application preparation

expenses are paid by the Division.

Procurement Method (Procurement by Competitive Proposals) for

Professional Services

Procurement by Competitive Proposals is best suited for professional services (i.e., grant writing, grant administration,

engineering services, lawyers, planners, accountants, architectural, construction management at-risk services, surveying

services, etc.). There are two types of procurement by competitive proposals - Request for Proposals (RFP) and Request

for Qualifications (RFQ). Below are the common requirements for both RFP and RFQ. Unique requirements and

applicability for each are separated out.

Standard Requirements for RFPs and RFQs: The following requirements apply to both RFPs and RFQs:

1. Request for competitive proposals and qualifications must identify all evaluation factors and their relative

importance.

Procurement Laws & Policies:

All procurement must follow the most stringent

procurement regulations, either Federal, State, or Local

– See Procurement Policy for the CDBG-I Program

within NCDEQ/Division of Water Infrastructure.

All contracts must include federal clauses, provisions,

and executive orders.

All CDBG-I recipients must obtain certification from any

transaction participant /contractor that neither it nor

its principals are currently debarred, suspended,

proposed for debarment, declared ineligible or

voluntarily excluded from participation in a Federally-

Fund award.

Must make good faith efforts to solicit and use M/WBE

firms – See NCGS §143-48.

Must make good faith efforts to solicit and use Section

3 businesses.



2. Request for competitive proposals and qualifications must clearly and accurately state technical requirements

for goods and services required.

3. The author of the RFQ and/or RFP may not respond to the same RFP and/or RFQ. They are ineligible for

consideration due to conflict of interest.

4. Requests for competitive RFPs and RFQs must be published in a newspaper of general circulation. An Affidavit

of Publication is required for the RFP/RFQ notice. An adequate number of days (at least 15 business days) must

be allowed from publication date for respondents to prepare and submit their proposal or statement of

qualifications by the deadline.

5. In addition, at least three (3) firms/businesses must be directly solicited. Direct solicitations must include

qualified M/WBEs and small businesses in the area to comply with direct solicitation requirements. Section 3

businesses/firms must be located in the project area, or the town, county, or adjoining county to be fully

qualified as a Section 3 business for a particular project.

6. UGLGs must have a written method for conducting technical evaluations of the proposals received and for

selecting recipients.

7. If the UGLG decides to give preference to a Section 3 business, this must be stated in the RFP and evaluation

factors.

8. Any response to RFQs and RFPs must be considered to the maximum extent practical.

9. Each RFQ or RFP must have a minimum of two respondents to move forward with the procurement process. If

after first attempt this does not occur, the RFP/RFQ notice must be republished in a newspaper of a wider

distribution for at least another (15) business days and the direct solicitation efforts expanded.

10. Evaluations of each responding firm/business must be in writing and dated. These evaluations must be

maintained in the project files.

11. UGLG must adhere to the CDBG Conflict of Interest policy.

12. The only one firm responds a second time to the RFP/RFQ, refer to the Sole Source Procurement instructions on

page 8 for guidance on how to proceed.

13. This procurement method results in either a fixed price (a specified price to be paid when the items or services

are delivered and accepted) or a cost-reimbursement / “not-to-exceed” (price is usually reimbursed as costs are

incurred) contract.



Request for Proposals (RFPs): UGLGs must use competitive proposal procedures for proposals-based procurement for CDBG-I grant application

preparation, grant administration services, lawyers, planners, accountants, etc. for the project, regardless of the size of

the contract. Also any contract costing more than the Simplified Acquisition Threshold ($150,000 as of 3/21/17); in

addition to situations where conditions are not appropriate for the use of sealed bids. The following additional

requirements apply to RFPs:

1. The RFP notice must also be published in the IPS system.

2. Proposal contracts must be awarded to the responsible firm whose proposal is most advantageous to the

project, taking into account price and other factors identified in the RFP.

3. To determine the “most advantageous” an evaluation is completed that weighs the proposal with factors such

as ability to perform, timeliness, character and reputation, quality of past performance, compliance with laws,

quality and availability, future maintenance and service, and compliance with proposal. An UGLG may “score”

proposals based on weighting that reflects which criteria is most

important to them (must be outlined in the RFP). There must also be

written documentation to support the evaluation and selection.

Request for Qualifications (RFQs): UGLGs must use competitive proposal procedures for qualifications-based

procurement for architectural, engineering, construction management at-risk

service and surveying service for the project, regardless of the size of the

contract. This procurement method may not be used for any other services.

The following additional requirements apply to RFQs:

1. May use geographic preferences for the procurement of these specific

services, provided that this leaves an appropriate number of qualified

firms (three), given the nature and size of the project, to compete for

the contract.

2. Qualifications of respondents are evaluated to select the most

qualified firm. The most qualified firm is based on demonstrated

competence and qualification for the type of professional services

required, where price is not an evaluated factor.

3. Once the most qualified firm is selected, fair and reasonable

compensation can then be negotiated.

Request for Qualifications:

Procurement of

architectural, engineering,

surveying, construction

management-at-risk related

services must be done using

the RFQ process.

Firms must provide a

complete list of sub-

consultants and their

qualifications in their

submission package.

If firms determine the need

for sub consultants after

award of their professional

services contract, they must

conduct their own RFQ

process and provide

documentation of said

process.



4. If an agreement of contract compensation cannot be determined between the first qualified firm, and the UGLG

can eliminate that firm and begin discussion with the next most qualified firm.

5. If an UGLG decides to solicit for all project engineering activities at one time (engineering report – an

administrative task allowed prior to Release of Funds) and bid and design package, related work, and

construction inspections (allowed after Release of Funds), CDBG-I recommends providing language in the RFQ

that the engineering activities will either have separate contracts or adding language to the single contract that

all engineering work outside of the engineering report is contingent upon the release of funds, in case there is

an issue with the release of funds.

6. Firms must provide a complete list of sub-consultants/contractors and their qualifications in their submission

package.

7. State licensure requirements apply.

Eligibility Requirements All potential contract awardees must be checked for eligibility (debarment and

suspension) prior to execution of contracts.

Therefore, before signing a procurement contract, the UGLG (or a

subrecipient, where applicable) must confirm the preferred firm/business is

eligible to receive federal funds. To do this, there are two web-based lists that

the UGLG must check before signing a contract.

This first list is at www.sam.gov. Print the screen shot from this listing to

indicate that the selected firm is not debarred from receiving federal funds.

The second list is at the NC Department of Administration Debarred Vendors

listing, at https://ncadmin.nc.gov/documents/nc-debarred-vendors. Print the

screen shot from this website as well, demonstrating the contractor’s eligibility

to receive federal funds. Maintain both lists in your files.

All contracts and subcontracts, other than small purchases, shall contain

provisions, which describe administrative, contractual, or legal remedies

when contractors violate contract terms and provide for appropriate damages.

Full & Open Competition:

Must allow for full, fair and

open competition.

No geographical preference

(unless specifically allowed).

No placing of unreasonable

requirements on bidders (no

unnecessary experience or

excessive bonding, no

“brand only” specifications.

Must have written selection

procedures.

Must clearly identify all

bidding requirements.

http://www.sam.gov/

https://ncadmin.nc.gov/documents/nc-debarred-vendors



Sole – Source Usage

If after the initial solicitation of proposals/qualifications only one response was received, the UGLG is required to

broaden their initial publication and direct solicitation by republishing in a larger circulation newspaper and expanding

direct solicitation efforts. If after the second attempt, the solicitation is still determined to be inadequate (only one

response received), the UGLG must provide CDBG-I Program Supervisor:

1. Copies of advertisement and affidavits of publication of ads in the newspaper, and list of those firms directly

solicited.

2. A statement of how profit was negotiated, and what the expected profit to the business is.

The CDBG-I Program Supervisor will review and consider these documents to determine whether a sole source contract

is appropriate.

The CDBG-I Program will approve the use of the non-competitive proposal procedure on a case-by-case basis only.

Affirmative Action in Soliciting Minority/Women Business Enterprises Executive Orders 11625, 12432 and 12138, and NCGS §143-48 require the UGLG to make every effort to solicit the

participation of minority and women business enterprises (M/WBE) in their projects. UGLGs must specify in their Equal

Opportunity Plan and Procurement Plan the outreach actions they will take to ensure the inclusion, to the maximum

extent possible, of minorities and women and entities owned by minorities and women, in all contracts.

UGLGs must include qualified M/WBEs on their direct solicitation lists and solicit their participation whenever they are

potential sources of goods or services. State statute in NCGS 143-48(b) requires the reporting of percentages of

contracts made to minority-owned businesses, female-owned businesses, and disabled person-owned businesses, as

well as the percentage of contracts made to nonprofit work centers for the blind and disabled, to the NC Department of

Administration’s Historically Underutilized Business Section.

Section 3 Section 3 is a provision of the Housing and Urban Development Act of 1968, which recognizes that HUD funds are

typically one of the largest sources of federal funding expended in communities through the form of grants, loans,

entitlement allocations and other forms of financial assistance. Section 3 is intended to ensure that when employment

or contracting opportunities are generated because a covered project or activity necessitates the employment of

additional persons or the awarding of contracts for work, preference must be given to low- and very low-income persons

or business concerns residing in the community where the project is located. There are examples on how UGLGs can

provide and award contracts to Section 3 in this guidance.



Affirmative Steps for Soliciting Both M/WBEs and Section 3 Businesses Must Include the

Following: 1. Placing qualified small, minority, and female owned businesses on solicitation lists.

2. Assuring that small, minority and female owned businesses are solicited whenever they are potential sources.

3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum

participation by small and minority business, and women’s business enterprises.

4. Establishing delivery schedules, where the requirement permits, which encourages participation by small and

minority businesses, and women’s business enterprises.

5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration,

the Minority Business Development Agency of the Department of Commerce, and the M/WBE list at NC

Department of Administration.

6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed above.

Conflict of Interest UGLGs (and its contractors) must adhere to federal conflict of interest policies (24 CFR §570.611 and 2 CFR §200.318)

when procuring supplies, equipment, construction, and services.

In essence, no persons (employee, agency, consultant, officer, elected official, appointed official of the UGLG, or of any

designated public agencies, or of contractors that are receiving CDBG funds) who exercise or have exercised any

functions or responsibilities with respect to CDBG activities, or who are in a position to participate in a decision making

process or gain inside information with regard to such activities, may obtain a financial interest or benefit from a CDBG-

assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to a CDBG-assisted

activity, or with respect to the proceeds of the CDBG-assisted activity, either for themselves or those with whom they

have business or immediate family ties, during their tenure or for one year thereafter.

Furthermore, no employee, officer, or agent may participate in the selection, award, or administration of a contract

supported by a CDBG award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise

when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization

which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible

personal benefit from a firm considered for a contract.

Refer to 24 CFR §570.611 and 2 CFR §200.318 for additional details.



Records The UGLG must maintain complete records that document the rationale for the method used for procurement, selection

of the contract type, contractor selection or rejection, and the basis for the selection including cost or price.

It is the UGLG’s responsibility to solicit for grant administration services. It is a conflict of interest (24 CFR §570.611) for a

grant administrator to help the UGLG with the procurement of grant administration if they intend to submit a proposal.

This includes developing the Request for Proposals and handling the solicitation process. However, a potential grant

administrator can provide this guidance sheet and examples. UGLGs can also contact CDBG-I Unit staff for technical

assistance.

UGLG’s must document the entire procurement progress to show that it was conducted to allow a full, fair, and open

competition.



Steps for Procurement of Professional Services

As mentioned in this guidance, procurement of professional services can be overwhelming for some communities with

limited staff and/or no town/county administrator/manager to assist them. Therefore, the CDBG-I Unit has developed

the following best practice steps (which incorporates procurement requirements and suggested best practices) to assist

UGLGs with the professional procurement process.

Reminder: If an UGLG wants to use/hire their local COG, to handle their grant application preparation and/or grant

administration if awarded a CDBG-I grant; professional procurement is not required for those services. However, there

must be a contract between the COG and UGLG with appropriate provisions, clauses, etc.

Step 1: Establish or Appoint a Local Selection Review Committee Each UGLG will establish a Selection Review Committee to determine the scope of work, evaluation criteria, and to

review and evaluate submissions for services. This committee can consist of either: 1) the entire governing body; 2) a

subset of the governing body, as appointed by the Mayor/Chairperson; or 3) a combination of governing body and

town/county staff. The committee should have at least three members.

Reminder: Committee members may not have any potential conflicts of interest with any of the individuals, firms, or

agencies under review (i.e., family relationships, close friendships, business dealings, etc.) and no person who might

potentially receive benefits from the CDBG-I assisted activities may participate in the selection, award, or administration

of a contract supported by CDBG-I funding if he or she has a real or apparent conflict of interest.

Step 2: Determine the Scope of Work Once the committee is selected and notified of their participation, the committee must determine the scope of the work

for the potential contractor. Is the project a rehabilitation of old water or sewer lines? Is the project the rehabilitation

of a water or wastewater treatment plant? Is the project the extension of a water or sewer line to unserved homes?

Refer to the communities’ Capital Improvement Plan or Asset Management Plan to determine most needed projects.

Step 3: Determine the Selection Criteria to Evaluate Respondents Once the scope of work is identified, the committee must determine the criteria they will use to evaluate the

submissions. These selection criteria must also be conveyed in the RFP/RFQ to inform potential respondents on how

they will be evaluated against other submissions.

The sample RFP/RFQ provided in this guidance provide examples of criteria; however, these are only guidance examples.

Each committee can develop their own based on their needs, as long as the criteria does not violate the state, federal or

local regulations for procurement.



It is during this step that UGLGs will develop their written method for conducting technical evaluations of the

submissions received and for selecting contract recipients. This written method should include the rating sheet that will

be used one RFP/RFQ submissions are received. There is an example of a rate sheet in this guidance document.

Reminder: When developing an RFQ for professional engineering and related services, cost cannot be an evaluation

criterion.

Step 4: Develop the Request for Proposals / Qualifications (RFP/RFQ) The committee will develop the final RFP/RFQ using the identified scope of work and evaluation criteria and rating scale.

In addition, the RFP/RFQ must include basic project information, submission deadline and instructions for submission,

and contact information for a local point of contact. The committee should review the enclosed RFP/RFQ samples to

layout their RFP/RFQ to ensure all important components are included.

Reminder: When developing the RFP/RFQ document, it is important to make sure the committee is asking for the

appropriate information to evaluate the submission. For example, if one of the evaluation criterion is experience with the

CDBG-I program, the RFP/RFQ should ask respondents to include a description of their previous work with the CDBG-I

program.

Step 5: Advertise the RFP/RFQ Now it is time to advertise the developed RFP/RFQ. UGLGs can either publish the entire RFP/RFQ or a short form

version to save on publication costs. Samples of these types are available in this guidance for your reference.

At a minimum, UGLGs must publish their RFP/RFQ at least once in a newspaper of general circulation (either the

community, or a regional newspaper that is available locally). An Affidavit of Publication will be needed for the notice.

As this guidance document stated, the time between publication and submission deadline should be at least 15 days to

allow adequate time for firms/consultants to prepare their response. UGLGs should provide additional time between

publication date and deadline if they use the short form version – this will allow time to request/receive the full

RFP/RFQ. We suggest an additional five days if the short form is used, for a total of twenty (20) days.

UGLGs must also post the RFP/RFQ on the State’s IPS or other vendor sites, post the notice throughout their community,

and send the RFP/RFQ directly to firms/consultants that may be interested in responding. As this guidance mentioned,

if firms/consultants are directly solicited, M/WBE and Section 3 businesses must be included on the list of firms to

receive the direct solicitation.

Step 6: Review and Rate Submissions After the submittal deadline, and if the UGLG has received an adequate number of submissions from qualified sources

(three for engineering firms; two for grant administration firms), the committee will come back to together and use their

written method and rate sheet created in Step 3 to review and rate the submissions. Each committee member will

review and score the submissions; all scores can then be averaged to determine the highest scoring submission.



The highest scoring firm/consultant must be checked against the debarment and suspension lists (provided in this

guidance document under “eligibility requirements” on page 7) to ensure they are eligible to work on a federally-

assisted project prior to being forwarded to the governing body for their official approval.

In cases where an UGLG receives an inadequate number of submissions, the UGLG must repeat their publication

process. In this republication process, the UGLG must broaden their reach by putting the RFP/RFQ in a larger newspaper

near the project area and increase direct solicitations to increase interest and responses. If after the second solicitation

attempt response is still inadequate, the committee can review and select the use of the single submission received.

However, after checking the contractor’s eligibility and prior to sending the selected sole submission to the governing

board for official approval, the UGLG must send a letter and documentation of their procurement efforts to the CDBG-I

Program Supervisor to request the use of sole-source procurement.

Step 7: Approve the Selected Contractor and Award Contract The committee should present the recommendation to the governing board for final approval. The local governing body

has the final authority to award the contract to the selected firm/consultant.

A contract for services should be prepared between the town/county and the selected firm/consultant. The

council/board of commissioners may take separate action to approve the contract for services – especially for

engineering contracts once compensation has been negotiated.

Step 8: Record Keeping UGLGs must maintain thorough records on the entire procurement process, including copies of all contracts. The

procurement process documentation must be available to the public or anyone who wants to review. This

guidance document provides a sample checklist of what the procurement file should contain.



Examples of Soliciting and Awarding Contracts to Section 3 Businesses

(provided by HUD)

1) Utilizing procurement procedures for section 3 business concerns similar to those provided in 24 CFR part 905 for

business concerns owned by Native Americans.

2) In determining the responsibility of potential contractors, consider their record of section 3 compliance as evidenced

by past actions and their current plans for the pending contract.

3) Contacting business assistance agencies, minority contractors’ associations and community organizations to inform

them of contracting opportunities and requesting their assistance in identifying section 3 businesses which may

solicit bids or proposals for contracts for work in connection with section 3 covered assistance.

4) Advertising contracting opportunities by posting notices, which provide general information about the work to be

contracted and where to obtain additional information, in the common areas or other prominent areas of the

housing development or developments owned and managed by the HA (housing authority).

5) Providing written notice to all known section 3 business concerns of the contracting opportunities. This notice

should be in sufficient time to allow the section 3 business concerns to respond to the bid invitations or request for

proposals.

6) Following up with section 3 business concerns that have expressed interest in the contracting opportunities by

contacting them to provide additional information on the contracting opportunities.

7) Coordinating pre-bid meetings at which section 3 business concerns could be informed of upcoming contracting and

subcontracting opportunities.

8) Carrying out workshops on contracting procedures and specific contract opportunities in a timely manner so that

section 3 business concerns can take advantage of upcoming contracting opportunities, with such information being

made available in languages other than English where appropriate.

9) Advising section 3 business concerns as to where they may seek assistance to overcome limitations such as inability

to obtain bonding, lines of credit, financing, or insurance.

10) Arranging solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways

to facilitate the participation of section 3 business concerns.

11) Where appropriate, breaking out contract work items into economically feasible units to facilitate participation by

section 3 business concerns.

12) Contacting agencies administering HUD Grant Youthbuild programs, and notifying these agencies of the contracting

opportunities.



13) Advertising the contracting opportunities through trade association papers and newsletters, and through the local

media, such as community television networks, newspapers of general circulation, and radio advertising.

14) Developing a list of eligible section 3 business concerns.

15) Establishing or sponsoring programs designed to assist residents of public or Indian housing in the creation and

development of resident-owned businesses.

16) Establishing numerical goals (number of awards and dollar amount of contracts) for award of contracts to section 3

business concerns.

17) Supporting businesses which provide economic opportunities to low income persons by linking them to the support

services available through the Small Business Administration (SBA), the Department of Commerce and comparable

agencies at the State and local levels.

18) Encouraging financial institutions, in carrying out their responsibilities under the Community Reinvestment Act, to

provide no or low interest loans for providing working capital and other financial business needs.

19) Actively supporting joint ventures with section 3 business concerns.

20) Actively supporting the development or maintenance of business incubators which assist Section 3 business

concerns.



Sample RFP (Request for Proposals) for Professional Administrative Services

The Town/City/County of is requesting proposals for professional administrative services to assist the

Town/City/County of in preparing a FY20__/20___ North Carolina Community Development Block Grant – Infrastructure

(NC CDBG-I) Program project application to be considered for the September 20___ round of grant funds; in addition to

administering and implementing the project if application successful in being funded. The NC CDBG-I application is for

[provide a brief description of potential project]

Scope of Services Required: [List of desired tasks community wants completed]

1. Prepare FY20 xx/ 20xx NC CDBG-I application

a. Conduct income surveys.

b. Gather, write and assemble application.

c. Assist with public hearing.

2. Administer and Implement funded grant:

a. Prepare Environmental Review Records and Release of Funds and other Funding Conditions

b. Prepare and help assist with implementation of Compliance Plans.

c. Prepare Request for Payments.

d. Assist with ensuring community is following financial requirements of program.

e. Assist with project files in local government’s office.

f. Assist community in conducting all necessary public hearings / meetings.

g. Assist with complying with regulations property acquisitions / easements, if necessary.

h. Assist project engineer in preparation of bid documents and supervisor bidding process to insure

consistently with state/federal regulations.

i. Prepare and/or assist in preparing construction contracts to comply with state and federal regulations.

j. Obtain debarment clearance for all contractors.

k. Conduct required labor standard requirements – weekly payroll checks, on-site interviews, etc.

l. Attend and assist community during the state’s monitoring visit(s).

m. Assist community on any response(s) to monitoring findings/concerns.

n. Prepare all necessary reports and assist with requests for information.

o. Attend all necessary program training for program.

p. If necessary, verify income information for new connections.

The following is intended only as an example of a format that may be used to issue an RFP for professional

administrative services. UGLGs should consider the contents of their RFPs very carefully before they are issued.

Local officials should exercise care in drafting the scope of services and factors to be used in evaluating proposals to

assure that they are both complete and appropriate for your community and project. There will to be two separate

contracts for professional administrative services are required: One contract for grant application preparation and a

second for grant administration if grant is funded.



q. Prepare grant close-out documents.

Contracting for these two scopes of work (#1 and #2 above) shall occur separately and costs associated with each will be

clearly defined. Contract executed for grant administration and implementation shall be contingent upon receiving a

CDBG-I award for the proposed project.

Submission Requirements:

Information provided to the Town/City/County of shall include at a minimum: [listed below are EXAMPLES of

evaluation factors]:

1. Experience with similar CDBG-I project applications; proposal must identify the primary individual performing the

functions; experience with HUD requirements; and at least three references;

2. Qualifications, knowledge, and technical expertise with writing CDBG—I applications;

3. Capacity for Performance to perform required tasks in a timely manner according to the Town/City/County’s and

application deadlines, given current workload and staff;

4. Separate Cost of Services ( grant application preparation, grant administration, etc.)

5. Documentation of Compliance with state and federal debarment/eligibility requirements.

Submission Evaluation Criteria:

Respondents will be evaluated according to the following factors:

[Identify the evaluation criteria above that shall receive priority weighting in the final selection, below are EXAMPLES].

A. Consultant Qualifications and Experience with CDBG-I applications (including reference checks) % or points

B. Availability and Capacity of the Consultant % or points

C. Cost of Services % or points

The above information should be submitted no later than (DATE), (TIME), (named location & address). For more

information, contact town/city clerk/county clerk at (PHONE NUMBER).

Note: The evaluation factors listed below are only examples (minus the cost of services). Local officials should

include any factors which they believe are appropriate to the work tasks to be involved, with relative weighting

for each according to their priority. HUD regulations require that the RFP “identify all evaluation factors and their

relative importance.” Section 3 applies if the contract is over $100,000 for non-construction contracts. If Section 3

businesses will be given a preference, this must be stated in the evaluation factors.



Upon completion of the review, the Committee will make its recommendation to the Town/City Council/County

Commission for approval.

The Town/City/County of (XXXX) is an Equal Opportunity Employer and invites the submission of proposals from small

and minority and women-owned firms, historically underutilized businesses, and certified/registered Section 3

businesses concerns. (Section 3 applies if the contract is over $100,000 for non-construction contracts)

This information is available in Spanish or any other language upon request. Please contact (Insert Name) at (Insert

Phone Number) or at (Insert physical location) for accommodations for this request.

“Esta información está disponible en español o en cualquier otro idioma bajo petición. Por favor, póngase en contacto

con (Insert Name) al (Insert Phone Number) o en (Insert physical location) de alojamiento para esta solicitud.

Date: _________________ Authorized Representative: ___________________________



Sample Request for Qualifications (RFQ) for Professional Engineering Services

The Town/City/County of is seeking assistance for engineering services needed to prepare an application for FY

20__/20__ North Carolina Community Development Block Grant – Infrastructure (NC CDBG-I) Program funds and

subsequent implementation of that program, if funded by the state. The type of project involved

is______________________________________________________________.

The Town/City Council /County is soliciting requests for qualifications for professional engineering services to assist the

Town/City/County in both a) assisting with preparation of grant application developing a final engineering report, and b)

subsequent engineering design and bid package services and construction inspection services of the project, if funded, in

compliance with all applicable federal requirements and regulations under the CDBG program. Payment terms will be

negotiated with the selected firm.

Scope of Work:

Engineering services shall include, but are not limited to:

1. Assist with the preparation of the application package, including cost estimates and scope of work to be

accomplished.

2. Implementation of the proposed project in conformance with the CDBG-I program and NCDEQ compliance areas:

a. Preparing and getting approval of the engineering report prior to the Release of Funds

b. Preparing and getting approval the final design and construction bid package in conformance with

applicable regulations and requirements;

c. Supervising the bid advertising, tabulation, and award process, including preparing the advertisements

for bid solicitations, conducting pre-bid meeting, conducting bid opening, and issuing the notice to

proceed;

d. Conducting the pre-construction conference;

e. Surveying, field staking, on-site supervising of construction work, and preparing inspection reports;

f. Reviewing and approving all contractor requests for payment, change orders, and submitting approved

requests to the governing body;

g. Providing reproducible plan drawings to the Town/City/County upon project completion;

The following is intended only as an example of a format that may be used to issue an RFQ for all professional

engineering services. UGLGs should consider the contents of their RFQs very carefully before they are issued. In

particular, local officials should exercise care in drafting the scope of services and factors to be used in evaluating

qualifications to assure that they are both complete and appropriate for your community and project. There should

be at least two contracts for engineering services; one for grant preparation services and the second for engineering

services to be executed if grant application is awarded.



h. Conducting final inspection and testing; Submitting certified “as-built” drawings to appropriate authorities;

and

i. Preparing an operation and maintenance manual (if applicable).

Submission Requirements:

RFQ submissions must include at a minimum:

1. Individual or Firm Information: firm’s legal name, address, email, and telephone number, the principal(s) of

the firm and their experience and qualifications;

2. Water/Wastewater Experience: The specialized experience and technical competence of the staff to be

assigned to the project with respect to water / wastewater improvements or related work, description of

firm’s prior experience, including any similar projects (those funded by CDBG-I), size of community, location,

total construction cost, and names of local officials knowledgeable regarding the firm’s performance on

related work. Include at least five references within the past five years;

3. Firm Capacity and Capability: The capacity and capability of the firm to perform the work in question,

including specialized services, within the period of the grant, the past record of performance of the firm with

respect to such factors as control of costs, quality of work, and ability to meet schedules; description of firm’s

current work activities, capability of carrying out all aspects of CDBG-I related activities, and firm’s

anticipated availability during the term of the project;

4. The proposed work plan and schedule for activities to be performed; and

5. Documentation of compliance with state and federal debarment/eligibility requirements.

Qualification Evaluation Criteria:

Submissions will be evaluated according to the following factors:

1. Qualifications, Competence and Reputation of Firm and Personnel points or %

2. Firm’s Capability to Meet Time and Project Budget Requirements points or %

3. Present and Project Workload of Firm points or %

4. Related Experience on Similar CDBG projects points or %

Note: The evaluation factors listed below are only examples. Local officials should include any factors which they

believe are appropriate to the work tasks to be involved, with relative weighting for each according to their

priority. HUD regulations require that the RFQ “identify all evaluation factors and their relative importance.”

Section 3 applies if the contract is over $100,000 for non-construction contracts. If Section 3 businesses will be

given a preference, this must be stated in the evaluation factors.



5. Recent and Current Work for the Entity Issuing RFQ points or %

Upon completion of the review, [insert if interviews will be conducted]. The Committee will make its recommendation

to the Town/City Council/County Commission for approval to negotiate a contract price(s).

Contract Award:

Once the most qualified firm is selected, a cost for grant application preparation will be negotiated separately from the

remaining engineering services. Contracting for these two activities shall occur separately and costs/payments

associated with each will be clearly defined. Contract executed for engineering design/bid package and construction

inspection services shall be contingent upon receiving a CDBG-I award for the proposed project.


information, contact city clerk/county clerk at (PHONE NUMBER).










Sample Short Form Format for Advertising the Availability of a Request for

Proposals (RFP) or Request for Qualifications (RFQ)

The Town/City/County of is requesting professional assist with preparing an application for FY 20__/20__

North Carolina Community Development Block Grant – Infrastructure (NC CDBG-I) Program funds and subsequent

implementation of that program, if funded by the state. The type of project involved

is______________________________________________________________.

Copies of the detailed request for qualifications (RFQ) or request for proposals/RFQ, including a description of the

services to be provided by respondents, the minimum content of responses, and the factors to be used to evaluate the

responses, can be obtained by contacting (name, address, and telephone) .


information, contact city clerk/county clerk at (PHONE NUMBER).








In order to reduce the cost of publicizing an RFP or RFQ, local officials may use a format such as the following to

advertise the availability of a Request for Qualifications (RFQ) for engineering or a Request for Proposals (RFP) for

professional services -- in lieu of publishing the entire text of the RFP or RFQ. If this approach is used, UGLGs

should be sure to allow sufficient time for consultants to request and receive a copy of the RFP or RFQ and to

prepare a response. Section 3 applies if the contract is over $100,000 for non-construction contracts. If Section 3

businesses will be given a preference, this must be stated in the evaluation factors.



Sample Evaluation Form for RFP’s/RFQ’s

Each rater should complete an evaluation for each firm submitting a proposal/statement of qualifications.

The highest number represents the most value for each column. WEIGHT column: 1-10 points depending on value to

the project and level of importance (assigned by rating group and must be identical on all evaluations), in each area, to

the particular project. RATING column: 1-5 points. In this column grant recipients rate the firm based on each

qualification. Multiply the rating by the weight for each category and enter the total. Add all totals to establish final

score for firm.

Name of Firm:

Contact Person:

Project Description:

Individual Evaluation:

Evaluation Factors (these are EXAMPLES – use the ones stated in RFQ/RFP)

WEIGHT 1-10

X RATING

1-5 = TOTAL

Specialized Experience & Competence related to CDBG

Past record of performance of firm with respect to such factors as accessibility to clients, quality of work, ability to meet schedules

Capability of carrying out all grant related activities

Cost comparison*

References

Met requirements for submittal

Name of Reviewer:

Grant Total:

Note: *Cost comparison is only applicable to Request for Proposals, not Requests for Qualifications.

The following is intended only as an example of a format that may be used to evaluate professional services

proposals/qualifications. UGLGs must evaluate submissions based on the identified factors listed in the RFP/RFQ.

UGLGs can assign different points or percentages to the identified factors (again, which were listed in the RFP/RFQ).

The following sample of an evaluation matrix is for use, as appropriate, for their specific situation. Samples provided

by CDBG-I should not replace advice/review from an attorney. The weights and rating values assigned should be the

same as those listed in the Request for Proposals/Qualifications.



Procurement by Competitive Proposals (RFP/RFQ) Records

When procuring for services using a request for proposals or qualifications, the following, but not limited to, needs to be

documented.

Publication notice(s) and affidavit(s) of publication(s) of invitation to submit statements of qualifications or

proposals.

List of direct solicitation and/or copies of direct solicitation letters and/or emails (must include and identify

M/WBE firms).

Submission of package that includes qualification or proposal forms used, description of the work to be

awarded, rating/evaluation factors to be used for award, etc.

List of firms that submit qualification/proposal packages; along with copies of proposals / statement of

qualifications received.

Record of the opening of qualification/proposal packages, including names of firms, responsive and non-

response submissions.

List of names and titles of persons participating on rating committee.

Evaluation sheets for each responding firm/business from each reviewer.

If a committee was used, notes of the meetings of the rating committee in sufficient detail to document the

order of firms selected.

If applicable, notes of the negotiating sessions with the firms selected (in order of selection, if the first firm is not

contracted) – cost analysis.

Copy of debarment checks.

Council/Commission meeting minutes of recommendation and award of contract.

Copy of contract, and subcontracts if applicable, awarded.

Information on the nature of the compensation structure, including documentation of how the compensation

structure was selected.



Unsuccessful consultant/firm letters (Not required, but best practice).

If applicable, copy of sole source procurement request and response from DEQ, and copy of price analysis

performed.

Professional Service Contract Checklist

A contract for professional services (grant preparation, engineering, grant administration, etc.) should at a minimum

include the following:

Name of firm

Date executed – THIS MUST BE ON OR AFTER THE EXECUTED DATE ON THE DEQ/DWI CONTRACT WITH

GRANT RECIPIENT (applicable to contracts after UGLG is awarded a CDBG-I grant, not grant preparation

service contracts)

Signed original (by all parties)

Cost of Service and Payment Plan (provisions for compensation)

Scope of Service

Project Milestones (from Grant Contract or Letter of Intent to Fund)

Required Contract Provisions [See provisions listed on DWI website under CDBG-I

Compliance/Procurement.

Documents

Professional Procurement Requirements...2019/06/10 · importance. Procurement Laws & Policies: All procurement must follow the most stringent procurement regulations, either Federal,