1. Overview of Common
Procurement and Contract
Administration Issues
1
October 24, 2012
Ivan Chavez
General Engineer
2. Regulatory and Administrative Requirements
24CFR 85.36
Procurement Policy
approved by board
conforms to applicable federal, state and
local law and regulations
covers all phases of procurement activity
from award to close out
Procurement Handbook 7460.8 r2
PIH Notices
3. Procurement Planning
Prepare Cost Estimate and Price Analysis for each
procurement action, including modification
Cost Estimate: before soliciting bids or proposals
Price Analysis: after bids are received
Determine method of procurement to ensure cost
is reasonable
Confidential
4. Use for Non-Competitive Proposals
Procurement under other types is not feasible
After solicitation, number of sources or
competition is determined to be inadequate
An emergency situation exists
HUD approves
Non-competitive proposals
must be justified in writing
5. Contract Modifications
Independent Cost Estimate
Clear description of proposed work
Broken down by labor and material
Fixed price
Estimate of time of completion
Additional work must be part of original scope
of work
Above $100,000 must be submitted to HUD
6. Payments to Contractors
Must have construction progress schedule in
place
To ensure that scheduled dates and amount of work
to be completed are reasonable and consistent with
contract
Progress payments based on approved
schedule of amounts
Request for payment on form HUD-
51001, periodic estimate for partial payment
Contractor has submitted all certified
payroll reports
7. Inspections
Frequent inspection of work
Criticalpart of contract to ensure:
Workmanship is acceptable
Materials are installed as specified
in contract
Conduct warranty inspections
Final inspection includes punch list items
8. Contract Closeout
Following final inspection, contractor
submits notarized contractor’s release which
includes certification that:
Work was completed in accordance
with construction documents
Total amount due the contractor and a
separate stated amount for each
unsettled claim against the HA
9. Contract Closeout (cont)
Documentation noting that HA is released
of all claims
Wages paid to laborers or mechanics were
consistent with the wage rate requirements
and there are no outstanding claims for
unpaid wages
11. Documentation
Must contain sufficient documentation to
detail complete history of contracts
Critical component of contract
administration in the event of litigation