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 Contact  Customer Support: 866-526-9266 © Copyright 2024, International eProcurement   
Housing Agency Marketplace - Housing Agency Marketplace
 
Customer Support: 866-526-9266
        

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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 8. NONCOMPETITIVE PROPOSALS

8.1 General

This chapter defines noncompetitive proposals, the conditions for their use, and the 
requirements for documentation.

8.2 Definition
  

A noncompetitive proposal means a procurement through either a “sole source,” when the 
PHA solicits an offer from one source, or a “single source,” when the PHA solicits 
offers from multiple sources but receives only one or the competition is determined 
inadequate. As described in Chapter 15, certain contracting with resident-owned 
businesses and resident management corporations are exempted from these restrictions 
on non-competitive proposals.

8.3 Restrictions
  

	A.	All noncompetitive proposal awards must comply with 
		24 CFR 85.36(d)(4).

	B.	As described in Chapter 15, certain contracts with resident-owned 
		businesses and resident management corporations are exempt from 
		these restrictions on noncompetitive proposals


8.4 Process
  

	A.	Award of contracts from noncompetitive proposals follows a process 
		similar to that used for competitive proposals (see Chapter 7).  
		The proposal must be evaluated.  Technical and cost aspects of the 
		proposal may be negotiated.  The offeror must be determined to be 
		responsible at the time of award.
	
	B.	Because there is no price competition, cost analysis (see Chapter 
		10) is required.  Costs or price must be determined to be reasonable.
	
	C.	PHAs are required to submit proposed noncompetitive contracts to HUD 
		for pre-award review and approval in accordance with 24 CFR 85.36(g), 
		unless exempted under 24 CFR 85.36(g)(3) (see Chapter 12 for more 
		discussion.)


8.5 Justification/Documentation
    

	A.	Procurement by noncompetitive proposals shall be conducted only if a 
		written justification is made as to the necessity of using this 
		method in accordance with the procedures described in PHA’s 
		procurement policy (see Appendix 1 for sample).  Approval to award 
		a contract resulting from a noncompetitive proposal does not 
		eliminate or alter any other requirements of 24 CFR 85.36 governing 
		the contract.  The justification should include the following 
		information:

		1.	Description of the requirement;


                               8-1
                                                                  2/2007

_____________________________________________________________________________________

                                                          Handbook No. 7460.8 REV 2
                                                          
		2.	History of prior purchases and their nature (competitive 
			vs. noncompetitive);

		3.	The specific exception in 24 CFR 85.36(d)(4)(i)(A) through 
			(D) which applies;

		4.	Statement as to the unique circumstances that require 
			award by noncompetitive proposals;

		5.	Description of the efforts made to find competitive 
			sources, e.g., advertisement in trade journals or local 
			publications, phone calls to local suppliers, issuance 
			of a written solicitation, etc;

		6.	Statement as to efforts that will be taken in the future to 
			promote competition for the requirement; and,

		7.	Signature of the Contracting Officer and any higher 
			approving official as required by the PHA’s policy.

	B.	The Contracting Officer shall include the written justification and 
		approval in the contract file.
                                                          
                                                          

                               8-2
2/2007

_____________________________________________________________________________________

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