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CHAPTER 8. NONCOMPETITIVE PROPOSALS
This chapter defines noncompetitive proposals, the conditions for their use, and the
requirements for documentation.
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.
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
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
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
1. Description of the requirement;
Handbook No. 7460.8 REV 2
2. History of prior purchases and their nature (competitive
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.