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Housing Agency Marketplace - Housing Agency Marketplace
Customer Support: 866-526-9266

Thu. Nov 30, 2023
08:51 PM UTC

HUD Procurement Handbook 7460.8 REV-2
This handbook is originally from the U.S. Department of Housing and Urban Development (HUD)

                                                          Handbook No. 7460.8 REV 2



This chapter discusses the authority for procurement activity and 
delegation of the administration of the procurement function.

2.2 The Procurement Policy

A.	PHAs are required to establish and follow a written procurement policy 
	that is consistent with 24 CFR 85.36. A sample procurement policy may be 
	found at Appendix 1. The policy need not contain detailed working-level 
	procedures, but should require establishment of such procedures to carry 
	out the policy. Some PHAs prefer to combine the policy and procedures 
	into a single publication for the convenience of staff. 

B.	While it is not required that the procurement policy be submitted to HUD 
	for approval, PHAs that wish to be exempt from prior HUD approval of 
	certain individual procurement actions can have their procurement policy 
	reviewed/approved by HUD, as discussed in Chapter 12. (PHAs can also 
	self-certify that their procurement system meets all HUD requirements, 
	which would also exempt them from certain HUD review requirements. See 
	Chapter 12).

2.3 Delegation of Authority

A.	Generally, the procurement policy delegates responsibility for procurement 
	functions to the Executive Director, with authority to assign all or a 
	portion of that responsibility to positions or individuals based on the 
	organization and staffing of the PHA. 

B.	A person with authority for procurement activities is referred to as the 
	Contracting Officer when he/she performs that function, regardless of any 
	other job or position title he/she may have.

C.	PHAs shall establish policies for the delegations of procurement authority 
	(e.g., to the Executive Director).  These policies should be included in the 
	PHAs’ written procurement policy.  Delegations of procurement authority 
	should clearly state the limits of the authority delegated in terms of dollar
	value of individual obligations the person may make and any other limits 
	(e.g., types of contracts the individual may award such as small purchases).
	Delegations should also state whether the recipient may further redelegate 
	any of the authority and, if so, how much. 

2.4 Responsibility of the Contracting Officer
Regardless of the authority delegated, it is the responsibility of the Contracting 
Officer to: 

A.	Use sound judgment in accomplishing the procurement activities of the PHA;

B.	Ensure that bidders and contractors receive fair, impartial, and equitable 

C.	Ensure that contract actions comply with all applicable Federal, state and 
	local laws and rules and with the PHA’s approved procurement policy; and



                                                          Handbook No. 7460.8 REV 2

D.	Seek the best value and greatest overall benefit for the PHA in response to
	the needs desired. 

2.5 Contracting Officer Signature/Obligation of Funds
Each contract or purchase action (e.g., new contract, modification, interagency 
agreement, purchase order, etc.) that obligates the PHA to pay a contractor or 
vendor must be signed or otherwise authorized by an individual to whom the PHA has 
expressly delegated the authority to make such an obligation. 

The signature of the Contracting Officer on PHA contracts is a legal commitment and 
requires continuing performance by the PHA under the terms and conditions of the 
contract. Performance includes such duties as monitoring contractor performance and 
acceptance or rejection of contractors’ requests for changes in performance, 
specifications, or price.

Caution:  If an individual is not an authorized Contracting Officer, that individual 
must not bind the PHA by making an implied contract such as by making a promise or 
stating an intent to purchase, either orally or in writing. Under the laws of agency 
and apparent authority, the PHA may be liable for, or bound by, the acts of a PHA 
employee, if such person (who is not a Contracting Office) appears to an offeror to 
have been given authority by the PHA. Therefore, all actions that could be 
misinterpreted as committing the PHA to purchase should be clarified with a statement 
such as, “this request for price quotation is not an offer to buy and should not be 
assumed as such.”

2.6 Staffing and Training
PHAs ensure that their procurement employees have training and experience commensurate
with the requirements of their duties.  PHAs should develop training and experience 
standards for their procurement positions and periodically review their procurement 
operations to ensure that procurement personnel meet those standards.  PHAs should 
consider any changes in the procurement environment (e.g., new laws, regulations, 
market conditions, or buying needs and practices of the PHA) when assessing the 
qualifications of personnel and the need for additional training.



                                                          Handbook No. 7460.8 REV 2

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