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CHAPTER 2. PROCUREMENT AUTHORITY AND ADMINISTRATION
OF THE PROCUREMENT FUNCTION
2.1 GENERAL.
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
treatment;
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
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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.
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