Procurement and Bid Package Information
Updated 3 Jan 2008
All Public Housing Administration (PHA) purchases must be made within the rules and scope of the PHA policies. Be sure the specific PHA policies are clearly written and followed on every case. If you are in doubt contact the HUD office and also be sure to follow the PHA legal counsel advice. HUD revised and reprinted the “Procurement Handbook for Public Housing Agencies” 7460.8 Revision 2, effective 2 March 2007 and has made it available on line at HUDCLIPS [1]. Be sure you refer to this valuable resource for your Procurement and Contracting questions.
When the amount is less than $10,000, also called “small purchase procedures” see 24 CFR Part 85.36, but in brief, the PHA only needs to follow a limited procurement process involving bid fairness and propriety. Usually if the PHA gets at least three prices and documents these with a letter in the procurement file, the choice of the best price product can be made easily.
HUD requires specific procedures to be followed when Federal money is used to purchase material, supplies or services. Also, when the dollar amount is less than $2,000, the PHA does not need to follow the Department of Labor “Davis-Bacon” Wage Rates.
A special case is when procuring the services of an Architect or Engineer. This process is one using Request for Proposals (RFP) and the selection is made solely on the basis of qualifications, not on price.
For all other high value procurement actions the PHA should follow the regulations in 24 CFR 85.36 completely. This includes sealed bidding, public bid announcement, bid selection by defined methods and award to the lowest responsive bidder unless justified by pre-defined performance criteria. The sealed bid process is also applicable to small procurement purchases, so if you are uncertain whether your intended action is above the limit it is usually best to use the sealed bid process.
Whatever action you take be sure to use full written documentation for every step. Any verbal instructions should always be followed up with a letter to confirm the discussion.
Please use the following list when preparing a full bid package for procurement by the sealed bid method:
1. Cover sheet identifying the following: Name of PHA, Project Number, Work Item Number(s), and General Scope of work. [1] 7460.8 Rev 2 Paragraph 6.5 (A)(1)
2. Invitation For Bids, including date, time, and place. [1] 7460.8 Appendix 4 or Equivalent.
3. Form HUD-5369 [2], "Instructions to Bidders." 10/2002 version. [1] 7460.8 P 6.5 (A)(4)
4. Form HUD-5369-A [2] "Representations, Certifications, and Other Statements of Bidders." 11/1992 version. [1] 7460.8 P 6.5 (A)(5)
5. Form HUD 5369-C [2] “Certification and Representations of Offerors, Non-Construction Contracts.” 8/1993 version. Supercedes 5369A for Non-Construction Contracts only.
6. Form HUD-5370, [2] "General Conditions." 5/2006 version. [1] 7460.8 P 6.5 (A)(6)
7. Specifications and drawings.
8. Bid Form [1] 7460.8 P 6.5 (A)(2)
9. Bid Guarantee. [3] 24 CFR Part 85.36 (h)(1) and [1] 7460.8 Bid Bond Form or Equivalent.
10. Non collusive Affidavit. [3] 24 CFR Part 85.36 (h)(4) and [1] 7460.8 Non Collusive Form or Equivalent.
11. Construction Contract Form. AIA Document A-101 or Equivalent
12. Performance and Payment Bond. (AKA "Assurance of Completion") [3] 24 CFR Part 85.36 (h)(2) & (h)(3) and [1] 7460.8 P 6.11 (B)(2)( & (3) Performance Bond Form or Equivalent.
13. Wage Rates (DOL) (HUD). [3] 24 CFR Part 85.36 (h)(5) and [1] 7460.8 P 10.9
14. Equal Employment Opportunity data. (Contracts over $10,000.) [3] 24 CFR Part 85.36 (h)(3). Compliance with Executive Order 11246. and [1] 7460.8 P 1.3
15. Architect / Engineer's Certificate. HUD-51915 [2] or Equivalent (A&E Contracts Only also see PIH Notice 95-51)
16. Contract / Subcontract award notification form. [1] 7460.8 Appendix 6 & Notice to Proceed Appendix 13 or Equivalent Forms.
17. Section 3 Language / Advertisement for Bids & Specifications. [3] 24 CFR Part 135, also Federal Register 30 Jun 94
Primary Sources: (Also as noted)
[1] 7460.8 Rev 2 “Procurement Handbook for Public Housing Agencies”
[2] HUDCLIPS Library Website
[3] 24 CFR Part 85.36 & Part 135
HUD Point of Contact:
Larry Wood, Public Housing General Engineer
Voice 414-297-3214 x 8226
Fax 414-297-1180