Quick Index
 
Independent Cost Estimate
Bonding Requirements
Wage Determination
Bid Package
Obtaining Bids
Opening Bids
Awarding Contract
Contract Administration
Change Orders
Contract Closeout
Small Purchase Procedures ($2,000 to $100,000)

for

 Maintenance/Service  Contracts

 

The following flow chart was developed to assist Housing Authorities in the development, award and administration of a maintenance/service contracts using the small purchase  method of procurement as defined in the Procurement Handbook  7460.8,Rev #2 guidance. 

 

    Develop an Independent Cost Estimate

    An independent cost estimate of every procurement is 
    required prior to soliciting bids or proposals. 

     Guidance:

    1. Sample Independent Cost Estimate. 
    2. Federal requirements - 24 CFR 85.36.f.1
    3. Procurement Handbook requirements - paragraph 3.2
 
Review Your Procurement Policy
  • Verify your Sealed Bid Threshold.
  • Review procurement policy for other bidding requirements that may be unique to your Housing Authority.

 

Bonding Requirements

There are NO bonding requirements for  award of maintenance / service contracts using the small purchase method of procurement.
 
Obtain a Wage Rate Determination

Obtain a wage determination for all  maintenance contracts with an estimated cost over $2,000. 

Federal Labor Standards - Contract your labor relations specialist.

Upstate NY - Contact Gary Kinsel, Director of Labor Relations at (716) 551-5755 ext. 5003.

 Guidance:

  1. Procurement Handbook requirements - paragraph  10.9 & 10.10.
    
Mandatory Contract Clauses

PHAs must incorporate the following clauses within the contract:

Table 5.1

Form HUD-5370C, Section II - General Conditions for Non-Construction Contracts.

Guidance:

  1. The above forms may be incorporated by reference provided they are filled out and accessible on the web, reference the procurement handbook 7460.8 Rev #2, paragraph 5.10.
  2. Procurement Handbook requirements - paragraph 5-10
  3. Federal Requirements - 24 CFR 85.36 (i)

 

Bid Package Checklist

Develop and insert a table of contents. Sample Table Of Contents

Develop and insert a Bid / Proposal Form. Sample Form

Insert Mandatory Contract Clauses. Guidance

Develop and insert the Contract Form of Agreement. Sample Agreement

Insert Wage Determination. Guidance

Insert sample partial payment forms.  The PHA must use these or equivalent forms, reference HUD Procurement Handbook, paragraph 11.2.E for additional guidance.

HUD Forms

  1. form HUD-51000 - Schedule of Amounts 
  2. form HUD-51001 -  Periodic Estimate for Partial Payment 
  3. form HUD-51002 -  Schedule of Change Orders 
  4. form HUD-51003 -  Schedule of Materials Stored 
  5. form HUD-51004 -  Summary of Materials Stored 

Equivalent Forms - Available from American Institute of Architects

www.aia.org   (http://www.aia.org/docs_default)

Insert sample Form of Contractor's Certificate and Release. Sample Form

Insert technical specifications.  Guidance

 

Bound Construction Package

It is recommended that the specifications be assembled and bound together into one package. Provide a cover page to identify the construction package.

 

Obtaining Bids / Proposals
  1. 24 CFR85.36(c)1 requires that all procurement transactions will be conducted in a manner providing full and open competition.
  2. 24 CFR85.36(d)1 states that "If small purchase procurements are used, price or rate quotations will be obtained from an adequate number of qualified sources."
  3. Our office recommends that proposals be solicited from a minimum of three (3) sources. The small purchase method of procurement, unlike the sealed bid method of procurement, does not require that the solicitations be formally advertised. 
  4. Solicitations may be obtained by phone or in writing. Documentation must be developed to support that prices were adequately solicited.

 

Opening the bids / proposals
  1. Bids shall be received up until a defined date and time.
  2. All bids should be recorded in a proposal log to document the status of bids received. 
  3. The small purchase method of procurement, unlike the sealed bid method of procurement, does not require a public bid opening.  

    Guidance:

    Proposal Log -  Sample Log
 
Evaluating the bids / proposals
  1. Responsive - The low bid must be examined to insure that all required documents are properly filled out, and that the contractor did not alter the terms and conditions of the contract.
  2. Responsible - The contracting officer must determine that the low bidder is responsible, reference 24CFR85.36(b)8 and the procurement handbook paragraph 10.2A.
  3. Check and document that the contractor's name is not listed on the "List of Parties Excluded from Federal Procurement and Non procurement Programs." listing     documentation 
  4. Check and document that the contractor's name is not listed on HUD's "Limited Denial of Participation" (LDP)    listing, documentation.  
  5. Verify that the required bid guarantee has been provided.
    Guidance:
    • Mistakes, Withdraw and Changes In Bid - Procurement Handbook requirements -  paragraph 6-10 
    • Limited Denials of Participation and Debarments and Suspensions, reference  24CFR24.705 and the procurement handbook  paragraph  10.2 H.

 

Determining Cost Reasonableness

A cost or price analysis must be performed in connection with every procurement. 

    Guidance:
     
    1. Federal Requirements  24 CFR 85.36(f) 
    2. Procurement Handbook requirements - paragraph 10.3B {Price Analysis}, 10.3D {Cost Analysis},  10.3E {Documentation}
    3. If more than one proposal is received than a cost or price analysis must be performed.    Sample Price Analysis 
    4. If only one proposal is received than a cost analysis must be performed. Sample Cost Analysis 

 

Documenting Rationale for Award

    Records must be sufficient to detail the significant history of a procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.

    Guidance:
     

    1. Federal Requirements   24 CFR 85.35 (b) 9 
    2. Additional documentation such as a finding of fact or determination and finding is needed when the contract files are  NOT "apparently obvious" relating to required information.
    3. Determination & Finding for Contract Award -  Sample 
    4. Determination & Finding - Content 

 

H.A. Awards Construction Contract

 

Maintaining Contract Files
  1. Contract File Arrangement - Sample
  2. Retention of Construction Documents - Contract and procurement files shall be maintained a minimum of three (3) years after final payments and all other pending matters are closed, reference  24CFR85.36(i)11

 

Contract Administration
     Housing Authorities  will maintain a contract administration system which ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders. (24CFR85.36(b)2)
    1. Daily Inspection Logs 
      1. Sample Log  - Optional
      2. Procurement Handbook requirements - paragraph 11.2F1.
    2. Progress Payments  - 
      1. forms 
      2. checklist 
      3. Procurement Handbook requirements - paragraph 11.2E. 
    3. Contractor Payrolls - 
      1. form WH-347, 
      2. instructions for WH-347
    4. Progress Schedules -  Optional
      1. Procurement Handbook requirements - paragraph 11.2E1.
      2. form HUD-5372

 

Change Orders
    Definition: A change order is a change issued by the Contracting Officer, after the award of a contract, in any of the contract terms, including specifications, completion time, description of work, etc., 
    within the scope of the contract. 

     Sample Forms:

    1. How To Issue a Change Order   Flow Chart 
    2. Change Order Form  Sample Form 
    3. Cost Analysis  Sample Form 
    4. Determination & Finding -   Sample Form 
    5. Change Order Register -  WORD, EXCEL 
    6. Change Order Checklist - Checklist 
       
      Guidance:
    1. Procurement Handbook requirements - paragraph  11.4
    2. Additional documentation such as a finding of fact or determination and finding is needed when the contract files are  NOT "apparently obvious" relating to the change order.
    3. Determination & Finding for Contract Award -  Sample 
    4. Determination & Finding - Content 

 

Contract Closeout
         
  1. Final Inspection - recommended procedure.
  2. Documentation  - Following final inspection the HA shall notify the contractor to submit the following documentation to the HA:
Optional Contractor's Certificate and Release  Sample Form
Guidance:
  1. Procurement Handbook requirements - paragraph  11.2G&H

 

 

Warranties
    The PHA is responsible for performing required warranty inspections, including the 11-month inspection, during the warranty period and promptly notifying the contractor in writing to remedy any defects relating to manufacturer or contractor warranties on equipment and systems and contractor warranties on materials and workmanship.

    Warranty Inspection Form   Sample Form

    Guidance:

    1. Procurement Handbook requirements - paragraph  11.2I

 

Content last modified: 09/11/2007