Introduction to Procurement for Public Housing Authorities

Introduction to Procurement for Public Housing Authorities

Unit 4 Introduction to Procurement for Public Housing Authorities Small Purchase Procedures 2 Learning Objectives Understand when to use small purchase procedures Understand the basic process and requirements for small purchases Understand basic requirements for micropurchases

Small Purchase Procedures Used for less formal purchases Allows PHAs to obtain equipment or supplies, or to seek professional services typically obtained via the formal solicitation process. Simplest method of procurement 4 General Requirements Independent Cost Estimate (ICE) is less than the $100,000 Federal Simplified Acquisition Threshold or lower threshold as specified in

PHAs Procurement Policy. At least an adequate number (3 or more) of oral or written quotes via phone, fax or email, etc. should be obtained. PHAs need to incorporate the provisions outlined under Table 5.1 in Chapter 5 of the Procurement Handbook into the purchase order, contract or agreement. 5 12 Basic Steps for SPP 1. Develop a basic Statement of Work 2. Develop/reassess ICE 3. Determine if specifications are

needed 4. Develop a potential list of bidders or offerors 5. Contact potential bidders/offerors via phone, fax or email 6. Discuss nature of solicitation (bid or proposal) with sufficient detail 7. Receive solicitations, preferably in writing 6 Small Purchase Procedures (cont.) 8. Determine that price is reasonable

9. Negotiate! PHAs can negotiate price and contract terms. 10.Award the contract by executing official document (e.g., purchase order) Contracting Officers signature satisfies the responsibility criteria of the successful offeror 11.Document the file Record of all actions taken Copy PO or agreement

12.Manage the contract award per established procedures at the PHA 7 Required Forms for Small Purchases Solicitation no HUD mandated form; format based on action being procured Purchase Order or Contract Agreement no HUD mandated format; however, the following attachments included in whatever format used: Mandatory Contract Clauses For Small Purchases Other Than Construction in Table 5.1, Procurement

Handbook For construction/development contracts between $2,000 and $100,000: HUD-5370-EZ, General Conditions for Small Construction/Development Contracts For maintenance contracts, including non-routine maintenance work, between $2,000 and $100,000, Section II, HUD-5370-C, General Conditions for Contracts - Non-Construction Contracts Any applicable wage determinations 8

Micro Purchases A sub-category of SPP for purchases costing less than $2,000. An ICE is not required! Only one (1) quote required if price is considered reasonable Signature of Contracting Officer signifies that price is reasonable based on prior prices paid recently or catalog prices in open market de facto compliance with reasonableness test! If used, purchases of like items should be equitably distributed among available suppliers. Prior to repeating a purchase, a new quote should be obtained to verify that the price being paid is still

reasonable. PHA uses Purchase Order to document. Wage rates are not required! Remember ICE required (except for Micro Purchases) Use SPP when ICE < Federal Simplified Acquisition Threshold of $100,000 or PHAs lower threshold Obtain at least 3 quotes for small purchases For Micro Purchases solicitation of competitive quotes not required if price reasonable Always include requirements in Table 5.1 of Procurement Handbook Include other forms as applicable 10 References 24 CFR 85.36(d)(1) PHA Procurement Handbook 7460.8 REV 2 - Chapter 5 Table 5.1 Mandatory Contract Clauses

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