| Handbook No. 7460.8 REV 2 |
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| TABLE OF CONTENTS |
| | Page |
| Chapter 1: Introduction | 1-1 |
| 1.1 Purpose of the Handbook | 1-1 |
| 1.2 Application | 1-1 |
| 1.3 Source Requirements | 1-1 |
| 1.4 Consistency with Good Business Practices | 1-2 |
| 1.5 State and Local Law | 1-3 |
| 1.6 Public Access to Procurement Information | 1-3 |
| 1.7 Availability of HUD Forms and Documents | 1-3 |
| 1.8 Paperwork Reduction Information | 1-4 |
| 1.9 Glossary of Procurement Terms | 1-4 |
| 1.10 Acronym Guide | 1-10 |
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| Chapter 2: Procurement Authority and Administration of the Procurement Function | 2-1 |
| 2.1 General | 2-1 |
| 2.2 The Procurement Policy | 2-1 |
| 2.3 Delegation of Authority | 2-1 |
| 2.4 Responsibility of the Contracting Officer | 2-1 |
| 2.5 Contracting Officer Signature/Obligation of Funds | 2-2 |
| 2.6 Staffing and Training | 2-2 |
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| Chapter 3: General Requirements | 3-1 |
| 3.1 Procurement Planning | 3-1 |
| 3.2 Independent Cost Estimate (ICE) | 3-1 |
| 3.3 Documentation | 3-3 |
| 3.4 Funding and Payment | 3-3 |
| 3.5 Internal Controls | 3-4 |
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| Chapter 4: Ethics in Public Contracting | 4-1 |
| 4.1 General | 4-1 |
| 4.2 Principles | 4-1 |
| 4.3 Requirement for a Written Code of Standards | 4-1 |
| 4.4 Conflicts of Interest | 4-1 |
| 4.5 Gratuities, Kickbacks, and Use of Confidential Information | 4-2 |
| 4.6 Prohibition Against Contingent Fees | 4-3 |
| 4.7 Sanctions | 4-3 |
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| Chapter 5: Small Purchase Procedures | 5-1 |
| 5.1 General | 5-1 |
| 5.2 Small Purchase Dollar Limits | 5-1 |
| 5.3 Competition Requirements | 5-1 |
| 5.4 Method of Solicitation | 5-1 |
| 5.5 Quotation Evaluation | 5-2 |
| 5.6 Petty Cash Purchases | 5-3 |
| 5.7 Purchasing Cards | 5-4 |
| 5.8 Bonding Requirements | 5-4 |
| 5.9 Purchase Orders | 5-4 |
| 5.10 Standardized Forms/Mandatory Contract Clauses | 5-4 |
| 5.11 Use of Indefinite-Delivery Contracts | 5-7 |
| 5.12 Negotiations | 5-7 |
| 5.13 Rejection and Notification of Unsuccessful Vendors | 5-7 |
| 5.14 Appeals | 5-7 |
| 5.15 Receiving Goods/Services and Approving Payments | 5-7 |
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| Chapter 6: Sealed Bids | 6-1 |
| 6.1 General | 6-1 |
| 6.2 Description | 6-1 |
| 6.3 When to Use Sealed Bids | 6-1 |
| 6.4 Alternate Bids | 6-1 |
| 6.5 Invitation for Bids (IFB) | 6-1 |
| 6.6 Amendments | 6-2 |
| 6.7 Pre-Bid Conference | 6-3 |
| 6.8 Canceling an IFB | 6-3 |
| 6.9 Bid Opening | 6-3 |
| 6.10 Mistakes in Bids | 6-4 |
| 6.11 Bonds/Guarantees | 6-5 |
| 6.12 Contract Award | 6-7 |
| 6.13 Bid Protests | 6-9 |
| 6.14 Multi-Step Bids | 6-9 |
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| Chapter 7: Competitive Proposals | 7-1 |
| 7.1 General | 7-1 |
| 7.2 Competitive Proposal Process | 7-2 |
| 7.3 Requests for Qualifications (RFQ) | 7-10
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| 7.4 Procurement of Legal Services by Public Housing Agencies (PHAs) | 7-12 |
| 7.5 Employment Contracts | 7-15 |
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| Chapter 8: Noncompetitive Proposals | 8-1 |
| 8.1 General | 8-1 |
| 8.2 Definition | 8-1 |
| 8.3 Restrictions | 8-1 |
| 8.4 Process | 8-1 |
| 8.5 Justification/Documentation | 8-1 |
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| Chapter 9: Specifications and Statements of Work | 9-1 |
| 9.1 General | 9-1 |
| 9.2 Regulatory Requirement | 9-1 |
| 9.3 Specifications | 9-1 |
| 9.4 Statement/Scope of Work (SOW) | 9-3 |
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| Chapter 10: Miscellaneous Requirements | 10-1 |
| 10.1 Contract Pricing and Types | 10-1 |
| 10.2 Contractor Responsibility | 10-10 |
| 10.3 Evaluating Cost and Price | 10-14 |
| 10.4 Protests | 10-20 |
| 10.5 Mandatory Contract Clauses | 10-23 |
| 10.6 Prohibited Clauses-Project Labor Agreements | 10-24 |
| 10.7 Performance Standards | 10-24 |
| 10.8 Use of Options | 10-25 |
| 10.9 Federal Labor Standards and Wage Rates-Construction | 10-26 |
| 10.10 Federal Labor Standards and Wage Rates-Maintenance | 10-28 |
| 10.11 Guidance on Federal Labor Standards Requirements | 10-30 |
| 10.12 Procurement of Recovered Materials | 10-30 |
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| Chapter 11: Contract Administration | 11-1 |
| 11.1 General | 11-1 |
| 11.2 Administering Construction Contracts | 11-1 |
| 11.3 Administering Non-Construction Contracts | 11-6 |
| 11.4 Contract Modifications | 11-8 |
| 11.5 Contract Claims | 11-9 |
| 11.6 Contract Terminations | 11-10 |
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| Chapter 12: HUD Review Requirements | 12-1 |
| 12.1. General | 12-1 |
| 12.2 Contracting Actions Requiring HUD Approval | 12-1 |
| 12.3 PHA Submission Requirements for Actions Requiring HUD Approval | 12-2 |
| 12.4 Development | 12-2 |
| 12.5 Exemption from Pre-Award Review | 12-2 |
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| Chapter 13: State and Local Laws and Regulations Governing PHA Procurement | 13-1 |
| 13.1 General | 13-1 |
| 13.2 Exceptions to Local Pre-emption | 13-1 |
| 13.3 State Law | 13-1 |
| 13.4 Local Law | 13-2 |
| 13.5 Guidance on State and Local Procurement Laws | 13-2 |
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| Chapter 14: Cooperative Business Relationships | 14-1 |
| 14.1 General | 14-1 |
| 14.2 Intergovernmental Agreements for Procurement Activity | 14-1 |
| 14.3 Selecting Joint Venture Partners | 14-4 |
| 14.4 Conflict of Interest Considerations for Joint Ventures, Subsidiaries and Affiliates | 14-4 |
| 14.5 Procurement Requirements of Joint Venture Partners | 14-5 |
| 14.6 Contracting with PHA Subsidiaries, Affiliates, and Joint Venture Partners | 14-5 |
| 14.7 Consortia | 14-5 |
| 14.8 Considerations | 14-6 |
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Chapter 15: Employment & Training Opportunities and Contracting with Residents,
Resident-Owned, Small, Minority, and Other Disadvantaged Businesses | 15-1 |
| 15.1 General | 15-1 |
| 15.2 Section 3 of the Housing and Urban Development Act of 1968 | 15-1 |
| 15.3 Resident-Owned Businesses | 15-1 |
| 15.4 Contracting with Resident Management Corporations (RMCs) | 15-2 |
| 15.5 Assistance to Small and Other Disadvantaged Businesses | 15-3 |
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Chapter 16: Public/Private Partnerships, HOPE VI, Mixed-Finance Development and
Bond Financing | 16-1 |
| 16.1 General | 16-1 |
| 16.2 Application | 16-1 |
| 16.3 Definitions | 16-1 |
| 16.4 Selection of Developer/Development Partner | 16-2 |
| 16.5 HUD Review of Hope VI Procurement Actions | 16-2 |
| 16.6 Procurement Requirements of the Developer | 16-3 |
| 16.7 Other Required Efforts | 16-3 |
| 16.8 Procurement by Parties Other Than the PHA or the Developer | 16-4 |
| 16.9 Resident Involvement | 16-5 |
16.10 Procurement by the PHA as Developer with Ownership Interest in the
Development or Ownership Entity | 16-5 |
| 16.11 Issues Arising in Community and Supportive Services (CSS) Procurement Activity | 16-6 |
| 16.12 Contracting with Sub-Grantees | 16-6 |
| 16.13 Mandatory Contract Clauses | 16-6 |
| 16.14 Fees and Guarantees | 16-7 |
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Chapter 17: Utility Purchasing, Energy Conservation Loans, and Energy Performance
Contracting | 17-1 |
| 17.1 General | 17-1 |
| 17.2 Energy Conservation Loans (Operating Subsidy Add-On) | 17-1 |
| 17.3 Energy Performance Contracting (Frozen Rolling Base Incentive) | 17-1 |
| 17.4 Utility Purchasing | 17-2 |
17.5 Procurement Regulations Pertaining to Energy Conservation Loans
Energy Performance Contracting | 17-3 |
| 17.6 Resources | 17-2 |
| Appendices |
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| Appendix 1: Procurement Policy | a-1 |
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| Appendix 2: Sample Advertisement | a-17 |
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| Appendix 3: Procurement File Checklist | a-18 |
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| Appendix 4: Sample IFB Cover Sheet | a-20 |
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| Appendix 5: Sample Solicitation Amendment | a-21 |
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| Appendix 6: Sample Contract Award | a-22 |
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| Appendix 7: Sample Notice to Unsuccessful Bidders | a-23 |
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| Appendix 8: Sample Procedures for Evaluation Committees | a-24 |
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| Appendix 9: Certification of Nondisclosure | a-26 |
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| Appendix 10: Sample Checklist for Determination of Contractor Responsibility | a-27 |
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| Appendix 11: Sample Legal Services Engagement Letter | a-29 |
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| Appendix 12: Guidelines for Conducting Cost Analysis | a-31 |
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| Appendix 13: Sample Notice to Proceed | a-33 |
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| Appendix 14: Sample Contract Modification | a-34 |
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Appendix 15: Intergovernmental Agreement for Supplemental Community
Policing Services | a-35 |
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| Appendix 16: Disadvantaged Business Enterprise Resource List | a-37 |
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| Index | a-38 |
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| List of Forms |
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| The following forms are referenced in this handbook: |
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| HUD-2516- “Contract and Subcontract Activity Report” |
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| HUD-5369- “Instructions to Bidders for Contracts” |
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| HUD-5369-A- "Representations, Certifications, and Other Statements of Bidders" |
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| HUD-5369-B- "Instructions to Offerors-Non-Construction" |
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| HUD-5370- "General Conditions of the Contract for Construction" |
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| HUD-5370-C- General Contract Conditions for Non-Construction Contracts |
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| HUD-5370-EZ - “General Conditions of the Contract for Small Construction/Development Contracts” |
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| HUD-5372- “Construction Progress Schedule” |
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| HUD-51000- “Schedule of Amounts for Contract Payments” |
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| HUD-51001- “Periodic Estimate for Partial Payment” |
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| HUD-51002- “Schedule of Change Orders” |
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| HUD-51003- “Schedule of Materials Stored” |
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| HUD-51004- “Summary of Materials Stored” |
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| HUD-51915- “Model Form of Agreement Between Owner and Design Professional” |
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HUD-51915-A- “Contract Provisions Required by Federal Law or Owner Contract with the
U.S. Department of Housing and Urban Development” |
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| HUD-52158 - “Maintenance Wage Rate Determinations” |
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| HUD-53010- “Low-Rent Public Housing Annual Contributions Contract, Part I” |
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| HUD-53011- “Low-Rent Public Housing Annual Contributions Contract, Part II” |
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| HUD-53012-A - “Terms and Conditions” |
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| HUD-60002- “Economic Opportunities for Low and Very Low-Income Persons” |
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| WH-347- “Payroll” |
