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


                                                          7460.8 REV 2

       CHAPTER 6.   SEALED BIDS

6.1 General

For all PHA contracting requirements above the small purchase threshold, competitive 
procurements are conducted by inviting sealed bids or by requesting competitive 
proposals. Both methods are effective ways of satisfying the PHA’s contractual 
requirements. The requirements for sealed bidding are discussed in this chapter and 
requirements for competitive proposals are discussed in Chapter 7. This chapter only 
applies to contracts in excess of the Federal small purchase threshold.

6.2 Description

Under sealed bids, the PHA publicly solicits bids and a firm fixed-price contract 
(lump sum or unit price) is awarded to the responsible bidder whose bid, conforming 
with all the material terms and conditions of the invitation for bids, is the lowest 
in price. Sealed bidding is the preferred method for procuring construction, supply, 
and non-complex service contracts in excess of  the Federal small purchase threshold. 
However, PHAs may use competitive proposals for construction contracts.

6.3 When to Use Sealed Bids

Sealed bidding should be used whenever the requirements in 24 CFR 85.36(d)(2)(i) 
can be met.

6.4 Alternate Bids
PHAs should not request alternate bids, i.e., two different systems or types of 
projects. Instead, when necessary because of limited available funding, a PHA may 
specify the most expensive system as the base bid and list deductive alternates in 
inverse priority order. Thus, in the case of limited funding, deductive alternates 
may be taken in numerical order as listed until the award can be made within available 
funds

Example:  If the full-scope base bid included complete repainting and cleaning of 75 
apartments, Deduct Alternate #1 might delete cleaning of 25 apartments and Deduct 
Alternate #2 might delete all cleaning. In this way, PHAs can maximize the amount of 
work to be completed within a limited budget. Without alternates the project may have 
to be re-bid if the full-scope price exceeds the available budget.

6.5 Invitation for Bids (IFB) (24 CFR 85.36(d)(2))

The IFB is the entire package of information necessary for potential bidders to submit 
a bid. The IFB includes a description of the supplies or services being purchased, any 
unique technical information, time and place of bid opening, time and place of site 
inspections or pre-bid conferences, a form for stating the bid price, and any required 
forms, as outlined below. 
	A.	IFB Package. The IFB packages for supplies, services, or 
		construction are quite similar. The major difference is the 
		length and complexity of the specifications or scope of work 
		and the variety of attachments. All IFBs must be in writing. 
		The basic documents to be included in an IFB package are: 

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		1.	Cover Page with Table of Contents. States the name, 
			address and phone number of the PHA, a person to 
			contact for information regarding the solicitation, the 
			project name and solicitation number, and a table of 
			contents for the complete solicitation package. A sample 
			IFB cover page is shown at Appendix 4.

		2.	Bid Form. This is the form on which bidders enter their 
			bid or price(s). The form must be clear, accurate, and 
			unambiguous.

		3.	Specification and Statement of Work. Description of the 
			work or items required. See Chapter 9.

		4.	Form HUD-5369, Instructions to Bidders for Contracts, 
			Public and Indian Housing Programs (construction) or form 
			HUD-5369-B, Instructions to Offerors Non-Construction. 

		5.	Form HUD-5369-A, Representations, Certifications, and Other 
			Statements of Bidders, Public and Indian Housing Programs 
			(construction) or form HUD-5369-C, Certifications and 
			Representations of Offerors Non-Construction Contract.

		6.	Form HUD-5370, General Conditions of the Contract for 
			Construction or form HUD-5370-C, General Conditions for 
			Non-Construction Contracts, along with any appropriate 
			Davis-Bacon or HUD wage decision for construction and 
			maintenance work.
	B.	Method of Solicitation. While any of the following methods can be 
		employed, the Contracting Officer should choose the method, which, 
		considering matters of economy, provides for full and open 
		competition. 

		1.	Advertising in newspapers or other print mediums of local 
			or general circulations. A sample advertisement is provided 
			in Appendix 3.

		2.	Advertising in various trade journals or publications.

		3.	E-Procurement. PHAs may conduct their public procurements 
			through the internet using e-procurement systems. However, 
			all e-procurements must otherwise be in compliance with 24 
			CFR 85.36, State and local requirements, and the PHA’s own 
			procurement policy. Steps must be taken to meet the 
			requirements for full and open competition to avoid 
			potential protests. 

	C.	Time Period for Solicitation.  The solicitation must be run for a 
		period sufficient to achieve effective competition, which, in the 
		case of paid advertisements, should generally be run not less than 
		once each week for two consecutive weeks. State or local law may 
		impose additional advertising requirements. 

6.6 Amendments

If a change to the IFB, e.g., specifications, plans, date or time for bid opening, 
etc., becomes necessary after it has been issued, the change must be accomplished by 
issuing a written amendment, sometimes called an addendum. The amendment must 
indicate the IFB                                                          
                                                          

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number, project title, issue date of the original IFB, and formally detail each 
change. Each amendment must be noted on the PHA’s solicitation log. A copy of the 
amendment should be mailed to each prospective bidder who was provided the initial 
IFB package with acknowledgement required. If an amendment needs to be issued just 
before the scheduled bid opening date, the bid opening should be postponed for an 
adequate period of time to permit the potential bidders to fully analyze the change 
and to submit timely bids. A sample solicitation amendment is included at Appendix 5.                                                             
                                                          
6.7 Pre-Bid Conference

After the IFB is issued and before bids are due, the Contracting Officer may hold a 
pre-bid conference with prospective contractors to discuss the project requirements 
and details of the IFB. The conference should be attended by the Contracting Officer 
and supporting technical staff. A pre-bid conference is normally conducted for large 
or complex procurements. Notice of any scheduled conference should be included in the 
IFB. The timing of the conference should allow bidders enough time to review the IFB 
before the conference and adequate time to prepare or revise their bids before the bid 
opening. At the conference, the Contracting Officer should state that nothing said at 
the conference will change any of the terms of the IFB unless a subsequent written 
amendment to the solicitation is issued. A written summary of the conference should be 
made available to anyone requesting it. The summary should also be provided to all 
those who submitted IFBs or solicitations, not just those who attended the pre-bid 
conference. Attendance by offerors at the pre-bid conference, while desirable, should 
not be mandatory, and non-attendees should not be deemed non-responsive. The PHA 
should consider the need for all potential bidders to attend. Attendance may not be 
necessary for firms familiar with the work and others may be unable to schedule a 
representative to attend, although they may be well qualified to do the work at a 
reasonable price. To impose a requirement to attend a pre-bid conference could 
unnecessarily limit competition.

6.8 Canceling an IFB

	A.	The PHA may cancel IFBs when necessary or when otherwise considered 
		to be in the best interest of the PHA. A common reason for canceling 
		an IFB is that the low bid significantly exceeds the PHA’s budget 
		(note, this is a good reason to consider the use of deductive 
		alternate bids) or when the scope of work or specifications are 
		found to be ambiguous or flawed, e.g., by the submission of wildly 
		different bids or offer prices. Cancellations must be done in 
		accordance with the PHA’s written procurement policy and procedures. 
		While it is not prohibited, the repeated cancellation of a single 
		IFB or cancellation of multiple IFBs only serves to create a lack of 
		confidence in the PHA’s bidding process. Such actions may create the 
		appearance that either the PHA does not really know what it wants, 
		or that the PHA may be seeking a particular bidder or bidders. 

	B.	The Contracting Officer or designated procurement official shall 
		document the procurement file with the reasons and supporting facts 
		for canceling the IFB (24 CFR 85.36(b)(9)).


6.9 Bid Opening (24 CFR 85.36(d)(2))

The bid opening process shall be carried out as follows:  

	A.	Time and Place Certainty. Each bid must be dated and time-stamped 
		immediately upon receipt by the PHA. Sealed bids should be stored 
		in a locked bid box, cabinet, or safe to ensure that they are not 
		opened or mishandled prior to the bid opening. A PHA staff person 
		should standby just before the deadline to see that bids received 
		at the proper location are date- and time-stamped expeditiously. 
		Sealed bids received after the time specified in the IFB should be 
		recorded as a late bid and kept unopened in the contract file. A 
		late bid received before the award is made may only be considered 
		in accordance with the procedures listed in the form HUD-5369, 
		Item 5, or form HUD-5369-B, Item 6.
                                                                                                                

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                                                          Handbook No. 7460.8 REV 2
                                                          
	B.	Public Bid Opening Process. To ensure fairness in the award process, 
		anyone is permitted to attend the bid opening. Bids shall be 
		publicly opened on the scheduled date and time shown in the 
		solicitation. The bid opening official (usually the Contracting 
		Officer) reads aloud the bidders’ names and the bid prices. This 
		information is recorded and may be made available for public 
		inspection. No commitment or statement regarding contract award 
		should be made to any bidder at the bid opening. 
        

	C.	Recording the Bids. As bids are publicly opened and read aloud, an 
		abstract (sometimes referred to as a tabulation) of all bids is 
		prepared showing the name of each bidder and their bid prices 
		including alternates, if any. This abstract becomes part of the 
		official contract file. The abstract is public information and a 
		copy may be sent to interested parties when requested.
                                                          
                                                          
6.10 Mistakes in Bids
    

	A.	General. Correction or withdrawal of bids requires careful 
		consideration. The integrity of the competitive bidding system must 
		be maintained, fairness ensured, and delays avoided. While bidders 
		must be bound by their bids (the “firm bid rule”), circumstances may 
		arise where correction or withdrawal of bids is proper and may be 
		permitted.

	B.	Mistakes Before Bid Opening. Unless otherwise prohibited by State or 
		local law, bidders shall be permitted to withdraw or modify their 
		bids by written or facsimile notice prior to bid opening (see form 
		HUD-5369,  Item 5, and form HUD-5369-B, Item 6).

	C.	Review of Bids for Mistakes. After the bid opening, the Contracting 
		Officer should carefully review all bids to ensure that the bidders 
		have not made any obvious mistakes in their bids, e.g., the sum of 
		individual bid line items does not equal the total bid price. An 
		item-by-item recalculation of the bid costs will often reveal the 
		miscalculation or error. If a bidder appears to have made a mistake, 
		the Contracting Officer should immediately notify a bidder of any 
		apparent mistake in his/her bid and request verification of the bid 
		as submitted. If the bidder is not present at bid opening, or if the 
		Contracting Officer performs the bid review after opening takes 
		place, the Contracting Officer should notify the bidder by phone. 
		PHAs are strongly advised to confirm phone notifications with a 
		follow-up letter containing the information communicated by phone. 
		The Contracting Officer should place a copy of the letter or 
		otherwise document the procurement file.                                                       
                                                          

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                                                          Handbook No. 7460.8 REV 2  
                                                          
	D.	Mistakes after Bid Opening. In general, bidders should not be 
		permitted to change a bid after bid opening. In rare cases, the 
		Contracting Officer may permit the revision of a bid if the bidder 
		is able to present clear and convincing evidence, acceptable to 
		the Contracting Officer, of a mistake and the intended bid price. 
		Allowing changes to bids without appropriate evidence may 
		compromise the integrity of the public bid process and serve to 
		undermine public confidence in the PHA’s bidding process. 
		Therefore, the Contracting Officer should request as much evidence 
		as he or she deems necessary. Examples of evidence may include: 
		original work papers, bids from suppliers and subcontractors used 
		to develop the bid, bonding or insurance evidence supporting a 
		different bid price, etc. Failure or refusal by a bidder to provide 
		adequate evidence shall result in the original bid remaining 
		unchanged. PHA personnel should consult with their legal counsel 
		before allowing a change in bid. If justified, a low bidder can be 
		replaced with the next lowest bidder.

	E.	Withdrawal of Bids. Withdrawal of a bid is permissible if there is 
		an obvious error in the bid such as a math error, but the mistake 
		must be readily apparent from the bid itself. A bidder may be 
		permitted to withdraw a low bid if a mistake is clearly evident on 
		the face of the bid document, but the intended correct bid is not 
		similarly evident. A bidder may also be permitted to withdraw a low 
		bid if the bidder submits written evidence that clearly and 
		convincingly demonstrates that a mistake was made. The PHA should 
		require written supporting evidence before allowing withdrawal by 
		the bidder. If the PHA allows withdrawal, the bid bond should be 
		returned to the bidder upon verification of the error. In cases of 
		alleged mistakes or requests for withdrawal, the decision to allow 
		a correction or withdrawal should only be made after consultation 
		with the PHA’s legal counsel.
                                                              
                                                          
6.11 Bonds/Guarantees (24 CFR 85.36(b); 24 CFR Part 1000)
 

This section describes the specific bonding requirements for construction contracts of 
more than the Federal small purchase threshold. While PHAs may use sealed bidding for 
other types of materials and service contracts, the same bonding requirements do not 
apply. PHAs may adopt bonding requirements for these other sealed bidding contracts as 
they deem appropriate. 

	A.	General. In sealed bid construction contracts, three types of bonds 
		or guarantees are required: a bid bond or guarantee, a performance 
		bond, and a payment bond. The purpose of these bonds is to ensure 
		bidders will honor their bids, complete work as contracted, and 
		pay their subcontractors and suppliers.

	B.	Definitions

		1.	Bid Bonds/Guarantees. A bid bond or guarantee is included 
			in the bid package submitted by each bidder. The bonds or 
			guarantees ensure that if awarded the contract, the bidder 
			will accept and perform the work under the contract. It 
			also ensures that the bidder will not attempt to withdraw 
			or otherwise not fulfill the contract. Finally, the bid 
			bond ensures that the bidder will execute the contractual 
			documents that are required within the time specified in 
			the solicitation, or forfeit all or part of the guarantee. 
			A certified check, bank draft, U.S. Government Bonds at par 
			value, bid bond secured by an acceptable surety company, or 
			other negotiable instrument may be accepted as a bid 
			guarantee. If the successful bidder refuses to sign the 
			contract after award, the bid bond is forfeited and award 
			will go to the next lowest responsive, responsible bidder. 
			If there is not a responsive and responsible next lowest 
			bidder, the procurement should be re-bid. If a bid bond or 
			guarantee is not submitted with the bid, the PHA should 
			reject the bid as non-responsive. The PHA should not 
			return any bid bonds until the contract has been awarded 
			and the required performance and payments bonds have been 
			furnished, until all bids have been rejected, or the time 
			specified for acceptance of bids has expired. 

                                                                                                             

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		2.	Performance Bonds. Performance bonds are means to ensure 
			that the contract is successfully completed. The 
			performance bond guarantees that if the contractor is 
			unable to complete the contract, the surety company will 
			step in to finish the work. In the case of a letter of 
			credit or cash escrow, the PHA may use these funds to 
			complete the contract work. 

		3.	Payment Bonds. The payment bond is a method of ensuring 
			that the contractor pays the subcontractors and suppliers. 
			By requiring payment bonds, the PHA avoids becoming 
			entangled in disputes concerning payment of subcontractors 
			and suppliers by the general contractor. The surety 
			underwriting the payment bond ensures the contractors and 
			suppliers will be paid. Often, performance and payment 
			bonds are combined into a single document. Failure to pay 
			subcontractors for work performed in commercial contracts 
			may often lead to the subcontractor filing a mechanic’s 
			lien against property owners to obtain payment for services 
			rendered. PHA contracts require payment bonds to prevent 
			this problem and ensure that no liens will be filed against 
			any PHA building or lot of ground. Clause 24 of form 
			HUD-5370, General Conditions of the Contract for 
			Construction, clearly forbids the placement of liens and is 
			binding on any contractor, subcontractor, and material 
			supplier.

	C.	Bonding Companies 

		An acceptable surety (bonding) company is one that is authorized to 
		do business in the State where the project is located and acceptable 
		to HUD and the PHA. The surety must be listed on the most recently 
		published U.S. Treasury Circular 570 (often referred to as the 
		T-List). Individual sureties are not permitted. Circular 570 is 
		available from the U.S. Department of the Treasury, Financial 
		Management Service, Surety Bond Branch, Room 262C, 401 14th Street, 
		S.W., Washington, D.C. 20227. The T-List may also be accessed on 
		the Internet at:  http://www.fms.treas.gov/ c570/index.html.

	D.	HUD Bonding Requirements for PHAs  

		1.	In order to encourage participation by a broad range of 
			competitors, including small and minority firms, HUD has 
			provided for alternate bid and contract guaranties. These 
			apply to all construction projects greater than $100,000, 
			whether development or modernization, funded pursuant to 
			the U.S. Housing Act of 1937, as amended. As a result, the 
			contractors for all construction projects shall be 
			required to submit the following bid and contract 
			guarantees. Please note that only the bid bond is required 
			at time of bid; however, one of the purposes of the bid 
			bond is to provide the PHA with assurance that the 
			successful bidder will indeed obtain the necessary 
			performance and payment bonds. (There are no bonding 
			requirements for non-construction projects; PHAs should 
			only require bonds for non-construction where consistent 
			with good business practice.) State or local laws or 
			regulations may require a higher level of guarantees. 
			Required bonds include a bid guarantee from each bidder, 
			equivalent to 5% of the bid price, and one of the
			following:
                                                          
                                                          

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                                                          Handbook No. 7460.8 REV 2 
                                                          

			•	A performance and payment bond for 100% of the 
				contract price; 

			•	Separate payment and performance bonds each for 
				50% or more of the contract price; 

			•	A 20% cash escrow; or

			•	A 25% irrevocable letter of credit. 

		2.	The Contracting Officer, via form HUD-5369, has the option
			to select any one of the above contract guarantees. Careful 
			consideration should be given to the selection, as the 
			options vary greatly in degree of security provided to the 
			PHA versus cost and degree of difficulty in obtaining by 
			the contractor. 

	E.	Inadequate Surety. If the low bidder fails to provide an acceptable 
		assurance of completion (payment and performance bonds) after award 
		of the contract, the PHA should consider the bid guarantee forfeited 
		and notify the surety company. The contract is then terminated for 
		default. The amount to be recovered from the bid bond or guarantee 
		should equal at least the difference between the defaulted bid and 
		the next higher acceptable bid or the amount by which the bid 
		accepted by re-soliciting exceeds the defaulted contract. 
                                                           
                                                          
6.12 Contract Award (24 CFR 85.36(d)(2)(ii)(D))
      

The following steps should be used in awarding a contract based on the sealed bids 
method of procurement:  

	A.	Evaluate Bids & Any Alternates

		1.	The apparent low bid should be evaluated according to the 
			procedures outlined in the paragraphs below. If the 
			apparent low bid exceeds the project budget, any deduct 
			alternates should be applied to the bid prices, one at a 
			time, to identify the bidder whose resulting price falls 
			within the budget. If the first deduct alternate does not 
			produce an acceptable bid, then the second alternate 
			should be applied, and so on, until an acceptable price 
			and bidder is identified.

		2.	If alternates are employed, and the apparent low bid falls 
			below the available budget, a similar process of applying 
			the alternates one at a time may be employed to identify 
			the low bidder who includes the greatest number of 
			alternates within the available funding.

		3.	The PHA should not use alternate prices as a way to select 
			a preferred bidder.

	B.	Determining Responsiveness & Contractor Responsibility. The next 
		step in the contract award process is to review the low bid for 
		responsiveness. 
                                                                                                            

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                                                          Handbook No. 7460.8 REV 2
        
                                                          
		1.	Responsiveness (24 CFR 85.36(b)(8)). To be considered 
			responsive, a bid must conform to the material requirements 
			of the IFB. The Contracting Officer must examine the low 
			bid to be sure that the bidder did not alter the 
			specifications or other terms and conditions (e.g., 
			delivery schedules, payment terms, etc.) or attempt to 
			impose different terms and conditions. If the bid does not 
			conform to the solicitation, it must be rejected and the 
			next lowest bid examined for responsiveness. Allowing a 
			bidder to alter the material requirements of a solicitation 
			gives the bidder an unfair advantage over the other bidders 
			and destroys the integrity of the sealed bidding process. 
			It also limits the PHA’s rights in the contract. The 
			Contracting Officer shall document his/her findings 
			regarding the low bidder’s responsiveness in the 
			procurement file. Minor informalities (see paragraph D) 
			are not grounds for determining a bid to be 
			non-responsive.
            

		2.	Responsibility. After determining the responsiveness of 
			the low bid, the Contracting Officer shall determine if 
			the bidder is responsible. See Chapter 10, paragraph 
			10.2.A, for detailed guidance on assessing responsibility.

	C.	Equal Bids. In the rare case when two or more low bids are equal in 
		all respects, the award should be decided by drawing lots or other 
		random means of selection. Authority to use this method should be 
		included in the PHA’s Procurement Policy and stated in the IFB. 

	D.	Minor Informalities. The Contracting Officer may waive minor 
		informalities or allow the bidder to correct them. Minor 
		informalities are matters of form rather than substance. They 
		are insignificant mistakes that can be waived or corrected 
		without prejudice to the other bidders and have little or no 
		effect on price, quantity, quality, delivery, or contractual
		conditions. Examples include failure to:  return the number 
		of signed bids required by the bid package; sign the bid, 
		provided that the unsigned bid is accompanied by other 
		documents indicating the bidder’s intent to be bound (e.g., 
		a signed cover letter or a bid guarantee); complete one or 
		more certifications; or acknowledge receipt of an amendment 
		or addendum, provided that it is clear from the bid that the 
		bidder received the amendment/addendum and intended to be 
		bound by its terms, or the amendment/addendum had a negligible 
		effect on price, quantity, quality, or delivery.

	E.	Rejection of Bids (24 CFR 85.36(b)(9)). Rejection of any bid during 
		the evaluation process shall be fully documented, including all 
		reasons for the rejection. Minor informalities in the bid may be 
		waived, as described above. Any bid may be rejected if the 
		Contracting Officer determines that the price is unreasonable. 
		Determining a bid price to be unreasonable includes not only the 
		total price of the bid, but the prices for individual items as well. 
		Any bid may be rejected if the prices for any of the items are 
		materially unbalanced (such as bidding a high price for the first 
		items to be provided and then low prices for subsequent items). A 
		bid is materially unbalanced if and when there is a reasonable doubt 
		that the bid would result in the lowest overall cost to the PHA, 
		even if it is the lowest bid, or if the bid is so grossly unbalanced 
		that accepting it would amount to an advance payment. 
        

	F.	Award to the Lowest Responsive and Responsible Bidder 
		(24 CFR 85.36(d)(2)(ii)(D)). After the Contracting Officer evaluates 
		each bid, the responsive and responsible bidder that submits the 
		bid whose dollar value is lowest overall and meets all specified 
		requirements shall be awarded the contract. A sample contract award 
		letter is included in Appendix 6. Unsuccessful bidders also should 
		be notified in writing of the contract award. A sample notice is 
		shown as Appendix 7.
                                                          
                                                          

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6.13 Bid Protests (24 CFR 85.36(b)(12))

Protests against the award of contracts shall be handled as described in 
Chapter 10, section 10.4

6.14 Multi-Step Bids
    

PHAs may use two-step or multi-step sealed bidding procedures where appropriate and 
if permitted by their procurement policy. The two-step procedure is designed to 
obtain the benefits of sealed bidding by awarding a contract to the lowest responsive, 
responsible bidder. Simultaneously, this procedure is designed to obtain the benefits 
of the competitive proposals method through soliciting technical offers and conducting 
discussions that evaluate and determine the acceptability of technical offers. Under 
the two-step sealed bidding process, technical proposals alone are requested first. 
Then the proposals are evaluated for acceptability and negotiations or discussions 
held, if necessary. 

In the second step, the normal sealed bid process is followed except that only bidders 
with acceptable technical proposals may bid, and each bidder’s price is based on its 
own technical proposal. An example of this method would be equipment contracts with 
performance specifications rather than detailed design specifications, where the PHA 
needs a certain level of performance but is not specifying how this performance is 
achieved.

These procedures offer certain advantages. First, two-step sealed bidding encourages 
competition for contracts since contractors who might not have competed on the basis 
of strict specifications under sealed bidding may participate in the first step of two 
step sealed bidding because alternative approaches to the project or the design 
specifications are encouraged. Second, because of the price competition of step two, 
the general aims and benefits of price competition are achieved. Third, step one 
allows the PHA to take full advantage of the industry’s experience and creativity.

Note: Two-step sealed bidding also has significant disadvantages. The process is 
generally time consuming and costly for both the PHA and bidders who must draw up 
detailed technical proposals to meet the specifications or statement of work. In 
addition, the two-step procedure may result in the procurement of a product or service 
that is not necessarily the best or most cost effective overall. In step two, bidders 
will generally bid on their least costly design in order to maximize their chances of 
success. Since the PHA is to accept the least costly proposal in step two, it may be 
compelled to turn down proposals which, though a bit higher priced, are superior 
technically to the lowest cost proposal. In addition, the flexibility and general 
unfamiliarity of the process lead to a greater likelihood of bid protests and contract 
disputes.

It is also noted here that the Federal government has issued procedures in 
construction contracting for using a concept known as two-phase design-build selection 
procedures, similar to the two-step process outlined above. The process is described 
in detail in the Federal Acquisition Regulation (FAR) 48 CFR Chapter 1, Part 36, 
Subpart 36.3. PHA procurement is not regulated by the FAR. This reference to the 
direction provided in it is purely for informational purposes. 
                                                                                                        

                               6-9
                                                                  2/2007

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