Procurement Procedures June 3, 2010
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1 U.S. Department of Housing and Urban Development NSP & Procurement Procurement Procedures June 3, 2010 U.S. Department of Housing and Urban Development Community Planning and Development 1 1
2 Welcome! Webinar Information All callers will be muted. To ask a question, click on the hand button and you will be recognized by Presenter at the appropriate time. We will allow for questions after each section and at the end of the session. U.S. Department of Housing and Urban Development Community Planning and Development 2 2
3 Speakers Today Dionne Roberts Training & Development Associates, Inc. William Woodring Training & Development Associates, Inc. Denise K. White HUD U.S. Department of Housing and Urban Development Community Planning and Development 3 3
4 This Session Covers Standards Methods Recommendations U.S. Department of Housing and Urban Development Community Planning and Development 4 4
5 U.S. Department of Housing and Urban Development NSP & Procurement Standards U.S. Department of Housing and Urban Development Community Planning and Development 5 5
6 Requirements Uniform Administrative Requirements cover procurement OMB Circular specifies general rules Two sets of HUD regulations implement those rules See Reference Manual U.S. Department of Housing and Urban Development Community Planning and Development 6 6
7 Federal Procurement Rules Area of Program Management Uniform Administrative Requirements Cost Principles State and Local Governments OMB Circular A CFR Part 85 OMB Circular A-87 (2 CFR Part 225) Not-for-Profits OMB Circular A CFR Part 84 OMB Circular A-122 (2 CFR Part 230) Audits OMB Circular A- 133 OMB Circular A-133 U.S. Department of Housing and Urban Development Community Planning and Development 7 7
8 Standards Grantees and subrecipients must adhere to Federal procurement rules when purchasing Services Supplies and materials Equipment U.S. Department of Housing and Urban Development Community Planning and Development 8 8
9 Standards (cont d) Procurement policies must be in place Must follow written procedures and document compliance U.S. Department of Housing and Urban Development Community Planning and Development 9 9
10 U.S. Department of Housing and Urban Development NSP & Procurement Methods U.S. Department of Housing and Urban Development Community Planning and Development 10 10
11 How to Procure? Four procurement methods available for grantees and subrecipients: Small purchase (less than $100,000) Sealed bid (construction) Request for proposals (RFP) Non-competitive U.S. Department of Housing and Urban Development Community Planning and Development 11 11
12 Small Purchase Method Also known as streamlined method May be used for purchases below $100,000 Requirements include Getting 3 to 5 competitive quotes Selecting the most reasonable offer Using purchase orders or petty cash to purchase U.S. Department of Housing and Urban Development Community Planning and Development 12 12
13 Sealed Bid Use for construction contracts and to purchase equipment and/or supplies Process involves Developing an invitation for bids Publicly soliciting bids Opening bids and announcing prices Reviewing bids in detail Awarding contract to winning bidder U.S. Department of Housing and Urban Development Community Planning and Development 13 13
14 Request for Proposal (RFP) Used when sealed bid not appropriate (for example, consulting services) Process involves Announcing and issuing RFP Opening, reviewing and comparing proposals If necessary, negotiating with offerors Requesting and reviewing best and final offers Awarding contract U.S. Department of Housing and Urban Development Community Planning and Development 14 14
15 Non-Competitive Award Permitted when award is infeasible under other methods and one of following applies Item is available from only one source Emergency situation will not permit delay HUD authorizes non-competitive proposals Cost analysis and written justification must be in files U.S. Department of Housing and Urban Development Community Planning and Development 15 15
16 Contracts Two basic types permitted Firm fixed price Agreed upon price, regardless of actual cost Cost reimbursement Estimated cost, usually with a ceiling Restriction on cost plus percentage of cost When using sealed bid method, firm fixed-price contract required Other methods, use either type U.S. Department of Housing and Urban Development Community Planning and Development 16 16
17 Bonding and Insurance For contracts of $100,000 or more, completion assurance required through performance and payment bonds U.S. Department of Housing and Urban Development Community Planning and Development 17 17
18 Bonding and Insurance (cont d) Insurance requirements include Worker s compensation and employee liability Auto insurance for injuries on job site Comprehensive publi blic liabilit bility Property damage U.S. Department of Housing and Urban Development Community Planning and Development 18 18
19 Fair Housing & Equal Opportunity Rules Minority- and women-owned businesses MBE and WBE outreach requirements Must take affirmative steps to use businesses owned by minorities and women Section 3 Applies to construction contracts Goals for training and hiring low-income residents of area Goals for hiring contractors located in area U.S. Department of Housing and Urban Development Community Planning and Development 19 19
20 Ethics in Contracting Conflict of interest requirements apply Gratuities and kickbacks not allowed Confidential information may not be used for personal gain Influence peddling not allowed U.S. Department of Housing and Urban Development Community Planning and Development 20 20
21 U.S. Department of Housing and Urban Development NSP & Procurement Recommendations U.S. Department of Housing and Urban Development Community Planning and Development 21 21
22 Multiple Standards? Federal procurement standards set high thresholds State law or local ordinances probably prescribe tighter rules If so, follow more restrictive procedures U.S. Department of Housing and Urban Development Community Planning and Development 22 22
23 Subrecipients and Developers Generally subrecipients must adhere to same procedures that apply to grantee Developers typically do not have to follow procurement procedures U.S. Department of Housing and Urban Development Community Planning and Development 23 23
24 Other Considerations As with selection of projects/activities, other factors influence how procurement standards are applied Community size and grant amount Type of program Local politics Organizational capacity U.S. Department of Housing and Urban Development Community Planning and Development 24 24
25 Suggestions Detail all procurement procedures and expectations in written guidance Follow those procedures Apply them consistently to purchases by same type of entity Grantee agencies Subrecipients U.S. Department of Housing and Urban Development Community Planning and Development 25 25
26 U.S. Department of Housing and Urban Development NSP & Procurement For more help, go to: Give us your feedback: Thank You! U.S. Department of Housing and Urban Development Community Planning and Development 26 26
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