© 2007 Nan McKay & Associates Hosted by Carrol Vaughan © 2006 Nan McKay & Associates The New HUD...
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- Slide 1
- 2007 Nan McKay & Associates Hosted by Carrol Vaughan 2006
Nan McKay & Associates The New HUD Procurement Handbook 7460.8
REV 2 - Procurement & Contract Management
- Slide 2
- 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
- Slide 3
- 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
- Slide 4
- 2007 Nan McKay & Associates Review of Applicable
Regulations
- Slide 5
- 2007 Nan McKay & Associates Procurement Rules PHAs are
considered local governments for admin purposes Operating Fund,
Capital Fund = Federal program grant funds
- Slide 6
- 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
- Slide 7
- 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
- Slide 8
- 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
- Slide 9
- 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
- Slide 10
- 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
- Slide 11
- 2007 Nan McKay & Associates Commonly Used Definitions New
Definitions
- Slide 12
- 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
- Slide 13
- 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
- Slide 14
- 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
- Slide 15
- 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
- Slide 16
- 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
- Slide 17
- 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
- Slide 18
- 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
- Slide 19
- 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
- Slide 20
- 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
- Slide 21
- 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
- Slide 22
- 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.
- Slide 23
- 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
- Slide 24
- 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
- Slide 25
- 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
- Slide 26
- 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.....
- Slide 27
- 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
- Slide 28
- 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
- Slide 29
- 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.
- Slide 30
- 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
- Slide 31
- 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
- Slide 32
- 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
- Slide 33
- 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)
- Slide 34
- 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
- Slide 35
- 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
- Slide 36
- 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
- Slide 37
- 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
- Slide 38
- 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
- Slide 39
- 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
- Slide 40
- 2007 Nan McKay & Associates Small Purchases No requirements
for bid, payment, performance bonds for small purchases
- Slide 41
- 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)
- Slide 42
- 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
- Slide 43
- 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
- Slide 44
- 2007 Nan McKay & Associates Specialty Contracts Revised
handbook clarifies distinction between employment contracts and
contracting for independent services
- Slide 45
- 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
- Slide 46
- 2007 Nan McKay & Associates Independent Contracts
Considered to be procurement actions Subject to standards of 24 CFR
85.36 No employer-employee relationship
- Slide 47
- 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
- Slide 48
- 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
- Slide 49
- 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
- Slide 50
- 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
- Slide 51
- 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....
- Slide 52
- 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
- Slide 53
- 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
- Slide 54
- 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
- Slide 55
- 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
- Slide 56
- 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
- Slide 57
- 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
- Slide 58
- 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.
- Slide 59
- 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
- Slide 60
- 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
- Slide 61
- 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....
- Slide 62
- 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
- Slide 63
- 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
- Slide 64
- 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
- Slide 65
- 2007 Nan McKay & Associates Public/Private Partnerships,
HOPE VI, Mixed Finance Development Important Definitions
- Slide 66
- 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
- Slide 67
- 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
- Slide 68
- 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
- Slide 69
- 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
- Slide 70
- 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
- Slide 71
- 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
- Slide 72
- 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
- Slide 73
- 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
- Slide 74
- 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
- Slide 75
- 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
- Slide 76
- 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
- Slide 77
- 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
- Slide 78
- 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
- Slide 79
- 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
- Slide 80
- 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
- Slide 81
- 2007 Nan McKay & Associates Developing a Procurement
Policy
- Slide 82
- 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
- Slide 83
- 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
- Slide 84
- 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
- Slide 85
- 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
- Slide 86
- 2007 Nan McKay & Associates Procurement Policy Should
Include Disposition Policy (may also be a stand alone policy) Self
Certification (if applicable)
- Slide 87
- 2007 Nan McKay & Associates Quick Review of Procurement
Processes
- Slide 88
- 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
- Slide 89
- 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
- Slide 90
- 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
- Slide 91
- 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
- Slide 92
- 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
- Slide 93
- 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
- Slide 94
- 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
- Slide 95
- 2007 Nan McKay & Associates Sealed Bidding Page 7-9
- Slide 96
- 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
- Slide 97
- 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
- Slide 98
- 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
- Slide 99
- 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
- Slide 100
- 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
- Slide 101
- 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
- Slide 102
- 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
- Slide 103
- 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
- Slide 104
- 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
- Slide 105
- 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
- Slide 106
- 2007 Nan McKay & Associates Competitive Proposals (RFP)
Page 7-11
- Slide 107
- 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
- Slide 108
- 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
- Slide 109
- 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
- Slide 110
- 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
- Slide 111
- 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
- Slide 112
- 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
- Slide 113
- 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
- Slide 114
- 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)
- Slide 115
- 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
- Slide 116
- 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
- Slide 117
- 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
- Slide 118
- 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
- Slide 119
- 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
- Slide 120
- 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
- Slide 121
- 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
- Slide 122
- 2007 Nan McKay & Associates Questions & Answers
- Slide 123
- 2007 Nan McKay & Associates Thank you for attending! Our
July September Lunch n Learn Calendar is out! Check out these
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Fair Housing Issues for Management July 20 Navigating PIC/WASS
WEBINAR! Aug 17 HCV Legislative and Regulatory Update Sept 14
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