Public Housing Procurement Guidelines
Public housing procurement guidelines are essential for ensuring transparency and accountability in financial processes. HUD's revisions to the PIH Procurement Handbook emphasize the importance of documenting procedures and following established thresholds. PHAs must stay updated with the latest regulations to maintain compliance and integrity in their procurement practices.
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Presentation Transcript
2 CFR 200 Procurement September 2016 Larry Wood U.S. Department of Housing & Urban Development Milwaukee Field Office WI Public Housing
Basic Tenet If it is NOT written down It never happened. 2 WI Public Housing
2 CFR 200 Notice SD-2105-01 : 26 Feb 2015 Removed 24 CFR 85.36 with transition to 2 CFR 200 Parts 317 to 326 Intended implementation date 31 Dec 2015 HUD Lead the Way Training Procurement Practices at Public Housing. https://www.hudexchange.info 3 WI Public Housing
Official Advice Wait on Policy Revisions HUD is revising the HUD PIH Procurement Handbook 7460.8 Rev. 2 to synchronize with the new Part 200. With the exception of the procurement thresholds, the requirements are substantially the same and PHAs should continue to use this handbook. 4 WI Public Housing
Now the real SCOOP Procurement is about MONEY 5 WI Public Housing
PHA Financial Overview First a look at the financial process, a ReCap 6 WI Public Housing
System Thinking Process is intended to take a broad view Look for hidden problems Find Root Causes Make short term and long term plans Change and then monitor results Continuous improvement 7 WI Public Housing
A Quick and Easy Guide to the Procurement Process 8 WI Public Housing
Funding Overview Process involves ACC HUD form 53012 5 Year Plan - 24 CFR Part 903 PNA/GPNA PHA Budget Capital Funds - 24 CFR Part 905 Operating Funds LOCCS Accounts Procurement 2 CFR 200 Parts 317 to 326 9 WI Public Housing
ACC HUD Fm 53012 a & b Your Basic Contract Capital Fund ACC Amendments Fm 52840 Follow 24 CFR Part 905 Follow approved 5 Year plan Obligate within 24 months/Expend in 48 mos. Authorizes HUD to impose penalties for non- compliance. 10 WI Public Housing
Now On to Contracting 11 WI Public Housing
Go to fullsize image Basics of Procurement 2 CFR 200 Governs procurement activities at PHAs PHA s Procurement Policy & Procedures Sets directives & administrative responsibilities Procurement Handbook for PHAs 7460.8 REV 2 dated February 2007 (Obsolete, but valuable) Provides administrative & managerial guidance PIH Notices and other guidance Provides additional directives State and local laws If more stringent, overrides Federal Law 12 WI Public Housing
First Steps Revise the PHA procurement policy to be IAW 2 CFR 200 Ask for HUD FO advice Issue a Board Resolution adopting the Policy Reach an agreement with the board on the role of the ED 13 WI Public Housing
Once the new Policy is in place ED is the Contacting officer Only person to obligate funds, execute contracts, POs, change orders. Issue Contracts IAW policy Maintain sufficient Records Settle Contract issues/disputes Implement a Contract Administration System Ensure Open Competition 14 WI Public Housing
Ensure Competition 2 CFR 200.319 (a) (a) All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards of this section. Some of the situations considered to be restrictive of competition include but are not limited to: 15 WI Public Housing
Activities that may restrict Competition: (1) Placing unreasonable requirements on firms in order for them to qualify to do business; (2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive contracts to consultants that are on retainer contracts; (5) Organizational conflicts of interest; (6) Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement; and (7) Any arbitrary action in the procurement process. 16 WI Public Housing
10 Basic Procurement Steps 1. Develop a Statement of Work (SOW) 2. Complete an Independent Cost Estimate (ICE) 3. Determine rationale for procurement method 4. Solicit & receive quotes/bids/proposals 5. Determine responsive/responsible bidder, as applicable 6. Determine price reasonableness 7. Award the contract or solicitation 8. Implement contract administration system 9. Close out the contract 10. Maintain records for minimum of 3 years 17 WI Public Housing
3 Methods of Procurement 2 CFR 200.320 Micro Purchase - $3k limit or PHA policy Small Purchase - Under $150k limit or PHA policy Simplified Acquisition - $150k Federal limit, or Policy Competitive Procedures Non Competitive Procedures Note: Above $150k see Sealed Bids 18 WI Public Housing
Micro Purchases 2 CFR 200.67 A subset of Small purchases. Must be outlined in the PHA procurement Policies. Price limit of $3,000 ($2,000 if Davis Bacon applies) Against regulations to break up purchase to stay under a limit. 19 WI Public Housing
Small Purchase Procurement 24 CFR 200.320 Defined by PHA Policy Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. 20 WI Public Housing
Simplified Acquisition Threshold FAR -- Part 13 Simplified Acquisition Procedures Simplified Acquisition Threshold means $150,000, some exceptions apply. http://farsite.hill.af.mil/reghtml/regs/far2afmc fars/fardfars/far/02.htm 21 WI Public Housing
Competitive Procedures 24 CFR 200.319 Conditions require the use of the method, such as unclear or incomplete specifications. Action is based on technical merits and price. There are 2 or more qualified offerors in the market Cannot award a firm fixed-price contract (e.g., IFB). Formal procurement used when the cost estimate is more than the $150,000 Federal regulatory threshold or the limit specified in the PHA s Procurement Policy. 22 WI Public Housing
Competitive Procedures 7 Steps 1. Develop a Cost Estimate 2. Draft the Request for Proposals (RFP)/ Competitive Based Proposal (CBP) & Publish 3. Receive the bids but DO NOT open them Publicly. 4. Rate the proposals based on Technical merits and price if appropriate. 5. Choose the highest rated proposal. 6. Negotiate the price with the highest ranked firm. 7. Execute a fixed price or cost reimbursement contract. 23 WI Public Housing
Sealed Bids 24 CFR 200.320 Fixed price Normally used for Construction Award based on Price ONLY 5 Steps 1. Develop a Cost Estimate 24 CFR 200.323 2. Draft the Request for Proposals (RFP) & Publish 3. Publicly open the bids 4. Determine the lowest responsible and responsive bid. 5. Execute a fixed price contract with the selected bidder. 24 WI Public Housing
Non Competitive Procedures 24 CFR 200.320 Only used for Emergencies or when Competition is lacking. PHA or A/E Must perform a Cost Estimate 24 CFR 200.323 Must be Justified by the Cost estimate and other conditions. 25 WI Public Housing
Non Competitive Methods Sole Source One source selected due to no competition. The item or service is available from only one entity. Single Source Solicitation sought, but only one bid received. PHA was not aware of the lack of competition resulitng in only one bid. Emergencies and Public Exigencies Justified based on a health and safety issue mandating immediate corrective action. No HUD approval required in order to facilitate a rapid response. 26 WI Public Housing
Terms Section 10-8 of the Procurement Handbook All Contracts must have a finite term including options to extend. Not to exceed 5 years including options to extend. Options to extend must be outlined in the original Contract. Extension must be evaluated at each renewal prior to activation is it still a good choice? 27 WI Public Housing
Section 3 per 24 CFR Part 135 Promotes economic opportunities for low-income residents and certified low-income businesses through professional services and other labor contracts For all work funded using operating/capital funds, PHAs must provide - to the greatest extent feasible - employment, training, contracting and other economic opportunities to Section 3 residents and businesses (no $ threshold for PHAs) Reference requirement and attach Section 3 clause to applicable solicitations subject to the requirement Document contract file of efforts undertaken to meet goals Support and promote Minority Business Enterprise (MBE), Woman Business Enterprise (WBE) & Resident-Owned Businesses Goals apply to entire amount of Section 3 covered assistance awarded to a PHA every Fiscal Year 28 WI Public Housing
Small Business 24 CFR 200.321 Contracting with small and minority businesses, women's business enterprises, and labor surplus area firms. (a) The non-Federal entity must take all necessary affirmative steps to assure that minority businesses, women's business enterprises, and labor surplus area firms are used when possible. (b) Affirmative steps must follow this section 29 WI Public Housing
Federal Labor Standards and Wage Rates For construction and maintenance contracts > $2,000, PHAs must pay workers applicable wages per established classifications of work Davis-Bacon wages for construction work via IFB PHAs must post wages in job site, interview employees and review certified payrolls HUD-determined wages for routine and non-routine maintenance work PHAs must post wages in public places and interview employees, as applicable 30 WI Public Housing
Go to fullsize image Procurement Information: Copy of Procurement Handbook 7460.8 REV 2: www.hud.gov/offices/adm/hudclips/index.cfm Public Housing internet web page: www.hud.gov/offices/pih/index.cfm Regulatory references: List of debarred entities from doing business with the Federal Government LDP: www.hud.gov/enforce GSA: www.epls.gov Wage Rates: www.wdol.gov List acceptable sureties for the issuance of Performance & Payment Bonds: www.fms.treas.gov/c570 31 WI Public Housing
Where to Get WI Information HUD Milwaukee Field Office Suite 950 310 West Wisconsin Milwaukee WI 53403-2289 Larry Wood 414-935-6739 (For Now) WI Public Housing 3/7/2025 HUD Milwaukee Field Office 32
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