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CHAPTER 12. HUD REVIEW REQUIREMENTS
12.1 General
HUD review of a PHA’s procurement activity is limited to those actions funded with
Federal program grant funds.
12.2 Contracting Actions Requiring HUD Approval
Except as exempted under paragraph 12.5, the following contracting actions shall
have prior HUD approval:
A. Noncompetitive procurements expected to exceed the Federal small
purchase threshold;
B. Brand name-only procurements expected to exceed the Federal small
purchase threshold;
C. Awards over the Federal small purchase threshold to other than the
apparent low bidder under a sealed bid;
D. Proposed contract modifications that change the scope of the
contract (as per the “Changes” clause in forms HUD-5370, HUD-5370-C
or HUD-5370-EZ) or increasing the contract amount by more than the
Federal small purchase threshold;
E. Use of the QBS method of procurement for other than A/E services,
joint venture partners or developers, or energy service contracts;
F. For PHAs operating under the “old” ACC 53010 and 53011, any
agreement or contract for professional, management, fee accountants,
legal, or other professional services with any person or firm if the
total period or term of the contract, including renewal option
provisions, exceeds two years;
G. Procurements for legal or other non-personal services in connection
with litigation, per HUD’s Litigation Handbook, that exceed
$100,000;
H. Procurements that exceed the amount included in (1) the HUD-approved
Development Cost Budget or (2) where HUD has required prior approval
on a Notice of Deficiency or corrective action order under the
Capital Fund Program;
I. Contracts that exceed five years, including options. To approve
terms in excess of five years, Field Offices must determine there
is no practical alternative;
J. PHAs operating under the “old” ACC who enter into a transaction
with any joint venture, subsidiary, affiliate, or other
identity-of-interest entity. Section 515 of the old ACC specifies
that such transactions must comply with the conflict of interest
provisions that apply to the PHA. PHAs and their instrumentalities
operating under the “new” ACC must comply with the conflict of
interest provisions under section 19 of the new ACC;
K. Solicitations, and any resulting contracts, related to energy
performance contracting and utility add-ons, as per Chapter 17 of
this handbook; and
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L. Solicitation and contracts by any PHA whose procurement procedures
or operations fail to comply with the procurement standards in 24
CFR 85.36.
12.3 PHA Submission Requirements for Actions Requiring HUD Approval
The PHA shall submit all paperwork necessary for HUD to review the contracting
actions identified in 12.2. The HUD Field Office shall review this information,
and shall indicate what additional information may be necessary, as appropriate,
to ensure compliance with 24 CFR 85.36 and the applicable sections of this Chapter.
For non-competitive proposals, specifically, the PHA should comply with the
instructions in Chapter 8. Any changes to HUD forms or waivers to this handbook must
be sent to HUD Headquarters Office of Public Housing for review and approval.
12.4 Development
The PHA shall submit to the HUD Field Office for prior approval A/E contracts, fee
appraiser contracts, development manager contracts, construction solicitations,
construction contracts, and contract modifications.
12.5 Exemption from Pre-Award Review
A. A PHA shall be exempt from the pre-award review required in
paragraph 12-2.A through 12.2.F if:
1. The PHA requests, and HUD subsequently certifies, that its
procurement system be reviewed by the Field Office to
determine if its systems meet the standards under 24 CFR
85.36 and the essential requirements of this Handbook and
HUD Handbook 7485.1; or
2. The PHA self-certifies that its procurement system meets
the standards under 24 CFR 85.36 and the essential
requirements of this Handbook and HUD Handbook 7485.1.
B. Exemptions are granted for a one-year period and may be
automatically renewed each year unless the PHA is found not to
be in compliance with 24 CFR 85.36 or the PHA requests that the
exemption be rescinded.
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