HACC

Small Purchase Procedures (SPPs) are normally used for purchases equal to or less than $100,000 or based on PHA’s small purchase threshold. Federal regulations state that offers shall be obtained from an “adequate number of qualified sources,” whereas HUD recommends a minimum of three qualified sources; however, two is the minimum. If one offer is received under SPP, it becomes a single source.

Steps to an SPP include:

1. Develop an Independent Cost Estimate for the needed work of materials.
2. Solicit three quotes.
3. Compare the quotes to the cost estimate.
4. Negotiate price.
5. Execute a purchase order.

Micro Purchases are a subcategory of SPP for procurements costing less than $2,000. Under this category, an ICE and a wage rate are not required. Only one quote is required if the price is considered reasonable.

Sealed bids are normally used for construction contracts that are less than $100,000. This procurement method incorporates the qualifications into the request itself and is awarded based on price.

To issue and award a sealed bid, PHAs typically use the following process:

1. Develop a cost estimate for the needed work or materials.
2. Draft a request for proposals (RFP).
3. Publicly open the bids as they are received.
4. Determine the lowest responsible and responsive bidder.
5. Execute a fixed price contract with the selected bidder.

An invitation for bids (IFB) is a formal type of procurement. Generally, the issuance of an IFB is the method used for acquiring tangible items such as equipment and supplies, and for construction activities.

Competitive procedures are generally awarded based on the specifications offered by the bidder.

 There are two types of competitive procedures:

1) Price Considered, where price is included in the assessment of the proposal; and

2) Price Not Considered, where the assessment is based solely on the technical merits of the proposal (generally used for A/E & developers.)

To issue and award a competitive bid, PHAs typically use the following process:

1. Develop a cost estimate for the needed work or materials.
2. Draft an RFP or Competitive-based Proposal (CBP).
3. Receive proposals, but don’t open them publicly.
4. Rate the proposals based on the technical merits and price of the proposal (when price is considered).
5. Choose the highest-rated proposal.
6. Negotiate the price with the highest-ranked firm.
7. Execute either a fixed price or cost reimbursement contract with the selected firm.

Non-competitive procedures are used for emergencies and/or when competition is lacking. A cost analysis must be performed in all cases, due to the lack of competition.

Types of noncompetitive procurement methods include:

Sole Source

• PHA solicits an offer from one source through a Non-competitive-based Proposal (Non-CBP) since it knows there is no competition in the open market.
• The item or service is available from only one entity.

Single Source

• PHA solicits offers from multiples sources through a Competitive-based Proposal (CBP) in the open market, but receives only one offer.
• PHA was not aware of lack of competition in the open market.

Emergencies and Public Exigencies

• Must be a justifiable condition where the health and safety of the residents is at stake and must be corrected immediately.
• No HUD approval is required, in order to facilitate a quicker response.