PROCUREMENT Procurement Standards: Each owner/developer must become familiar 24 CRF 85.3! 24 CFR arts 5#$ % &2 and C ' &($5. rocurement standards under the )*+E pro,ram include but are not limited to- .. owner/developers ma/ use their own procurement procedures which reflect applicable 0tate and local laws and re,ulations! provided that the procurements conform to applicable Federal laws and standards1 2. owner/developers must maintain a written code of standards of conduct ,overnin, the
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  PROCUREMENT Procurement Standards:  Each owner/developer must become familiar 24 CRF 85.3! 24 CFR arts 5#$ % &2 and C ' &($5. rocurement standards under the )*+E  pro,ram include but are not limited to-.owner/developers ma use their own procurement procedures which reflect applicable 0tate and local laws and re,ulations! provided that the procurements conform to applicable Federal laws and standards12.owner/developers must maintain a written code of standards of conduct ,overnin,the performance of their emploees en,a,ed in the award and administration of contracts. o emploee! officer or a,ent of the owner/developer shall participate in selection! or in the award or administration of a contract supported b )*+E funds if a conflict of interest! real or apparent! would be involved1 3.owner/developers are encoura,ed to use value(en,ineerin, clauses in contracts for construction proects of sufficient sie to offer reasonable opportunities for cost reductions. alue(en,ineerin, is a sstematic and creative analsis of each contract item or tas6 to ensure that its essential function is provided at the overall lower cost14.owner/developers will ma6e awards onl to responsible contractors possessin, the abilit to perform successfull under the terms and conditions of a proposed  procurement15.owner/developers must maintain records sufficient to detail the si,nificant histor of all procurement. 7hese records will include! but are not necessaril limited to the followin,- rationale for the method of procurement! selection of contract tpe! contractor selection or reection! and the basis for the contract price1.owner/developers will have protest procedures to handle and resolve disputes relatin,to their procurements and shall in all instances disclose information re,ardin, the  protest to 'EC'1 #.all procurement transactions will be conducted in a manner providin, full and open competition consistent with the federal procurement standards. 0ome of the situations considered to be restrictive of competition include but are not limited to- ã  placin, unreasonable reuirements on firms in order for them to ualif to do business! ã reuirin, unnecessar e9perience and e9cessive bondin,! 24#&5&5.doc 5/$$(  (  ã noncompetitive pricin, practices between firms or between affiliated companies! ã noncompetitive awards to consultants that are on retainer contracts! ã or,aniational conflicts of interest! ã specifin, onl a brand name product instead of allowin, an eual product to be offered and describin, the performance of other relevant reuirementsof the procurement! and ã an arbitrar action in the procurement process18.owner/developers must have written selection procedures for procurement transactions. 7hese procedures will ensure that all solicitations- ã incorporate a clear and accurate description of the technical reuirements for the material! product! or service to be procured1 and ã identif all reuirements which the :bidders; must fulfill and all other factors to be used in evaluatin, bids or proposals. Methods of Procurement: *wner/developers are responsible for the satisfaction of all contractual issues arisin, out of procurements entered into in connection with the )*+E  pro,ram. 7his includes assurin, that all contracts funded in whole or in part with )*+E funds are awarded in accordance with federal law! contain all of the necessar provisions for compliance with applicable re,ulations! and are e9ecuted in conformance with the re,ulations. <elow are four tpes of procurement methods ou ma want to use-. Procurement by sealed bids (formal advertisin!  <ids are publicl solicited and a firm(fi9ed(price contract =lump sum or unit price> is awarded to the responsible bidder whose bid! conformin, with all the material terms and conditions of the invitation for bids! is the lowest in price. The sealed bid method is the #referred method for #rocurin construction   Sealed bids method is appropriate when the followin, conditions e9ist- ã a complete! adeuate and realistic specification or purchase description is available1 ã two or more responsible suppliers and/or contractors are willin, and able tocompete effectivel1 ã the procurement lends itself to a firm fi9ed(price contract1 and ã selection of the successful bidder can be made principall on the basis of  price.7he followin, reuirements appl for formal competitive = sealed bid >  procurement- ã  bids must be publicl advertised and bidders must be ,iven sufficient time to respond prior to the date set for openin, of bids =3$ das>1 ã the invitation to bid! includin, specifications and pertinent attachments! must clearl define the items or services needed1 24#&5&5.doc 5/$$( 2 (  ã all bids must be opened publicl at the time and place stated in the invitation to bid1 ã a firm! fi9ed(price contract award must be made b written notice to the responsible bidder whose bid! conformin, to the invitation to bid! is selected1 and ã an or all bids ma be reected when there are sound documented business reasons that to do so would be in the best interest of the pro,ram.2. Procurement by com#etitive #ro#osal . 7he techniue of competitive proposals is normall conducted with more than one source submittin, an offer and involvesissuin, Reuests for roposals =RF > or ?ualifications =RF?>. Com#etitive #ro#osals method  is ,enerall used when conditions are not appropriate for the use of sealed bids. @t ma be used if the selection could be  based on factors other than price! e.,.! e9perience and capacit. rocurement of architectura and en,ineerin, =A%E> services falls under this cate,or. *nl fi9ed price or cost reimbursement :not to e9ceed; contracts ma be awarded. Bhen usin, competitive proposal/ne,otiation! the followin, reuirements appl- ã  proposals must be solicited from three or more ualified sources to permit reasonable competition consistent with the nature and reuirements of the  procurement1 ã a RF must be issued and publicied which identifies all si,nificant evaluation factors and their relative importance1 ã all proposals received must be evaluated and the owner/developer must have a formal process for technical evaluation of proposals received! for determination of responsible :bidder;! and for selection1 Note:  e,otiations should be conducted with more than one :bidder;1 ã awards ma be made to the :bidder; whose proposal would be most advanta,eous to the owner/developer! considerin, the factors identified in the RF or RF?! with price and other factors considered1 and ã owner/developers ma use competitive proposal procedures for ualifications(based procurement of architectural/en,ineerin, =A/E>  professional services whereb competitors ualifications are evaluated andthe most ualified competitor is selected! subect to ne,otiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services.  3. Procurement by small #urchase #rocedures  0mall purchase procedures are those relativel simple and informal procurement methods for securin, services! supplies! or other propert that do not cost more than D$$!$$$. @f small purchase  procedures are used! price or rate uotations shall be obtained from an adeuate number of ualified sources. 24#&5&5.doc 5/$$( 3 (  4. Procurement by noncom#etitive #ro#osals  is procurement throu,h solicitation of a proposal from onl one source! or after solicitation of a number of sources! competition is determined inadeuate. Noncom#etitive #ro#osals   method  may be used only when  the award of a contract is not feasible under sealed bids! competitive proposals or small purchase procedures and one of the followin, circumstances applies- ã after solicitation from a number of sources! competition is determined inadeuate1 or  ã the items or services reuired are available onl from one source1 or  ã 'EC' authories noncompetitive proposals because of a public e9i,enc or emer,enc is such that the ur,enc will not permit a dela beond the time needed to emplo one of the other methods described above. Note: 7he fact that a contractor is performin, other consultant services for the owner/developer is not! in itself! an adeuate ustification for a non(competitive ne,otiated award. Minority and $omen %usiness Enter#rise Re&uirements: 0ection 28 of the ationalAffordable )ousin, Act reuires that minorit and women owned business enterprises have opportunities in all contractin, activities in )' assisted housin,. *wner/developers! when solicitin,/advertisin, for bids! must include a statement that sas! 'minority and omen oned businesses are encouraed to a##ly) . 'EC' maintains a list of all minorit and women owned businesses. Each owner/developer is reuired to reuest a cop of the list for their proect area and provide opportunities for +<E/B<E businesses. 7his list can be obtained b callin, +arcia <onitto at =8$> 2#$(8$25. Contract cost and #rice: *wner/developers must perform a cost or price analsis in connection with ever procurement action includin, contract modifications. 7he method and de,ree of analsis is dependent on the facts surroundin, the particular procurement situation! but as a startin, point! ,rantees must ma6e independent estimates before receivin, bids or proposals. A cost analsis will be necessar when adeuate price competition is lac6in,! and for sole source procurements! includin, contract modifications or chan,e orders. The cost #lus a #ercentae of cost and #ercentae of construction cost methods of contractin shall not be used *ardin *ency Revie + Contracts: All contracts must be reviewed and approved  b 'EC'. @f contracts have been awarded prior to applin, to 'EC'! owner/developers will certif that the procurement was in compliance with these procurement standards. Federal Contract rovisions must be attached and incorporated into all construction and  professional contracts. 7he attachments can be found in E9hibit . @t is su,,ested that owner/developers use the 0tandard A@A forms for contractin, with ,eneral contractors. 7hese forms can be purchased throu,h our local business office suppl store. 7hese forms can not be photocopied. 24#&5&5.doc 5/$$( 4 (
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