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Ivan ChavezGeneral Engineer

Overview of CommonProcurement and Contract

Administration Issues

October 24, 2012

24CFR 85.36Procurement Policy

approved by boardconforms to applicable federal, state and local law and regulations

covers all phases of procurement activity from award to close out

Procurement Handbook 7460.8 r2PIH Notices

Regulatory and Administrative Requirements

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

Procurement Planning

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 existsHUD approves

Non-competitive proposals must be justified in writing

Contract Modifications

Independent Cost EstimateClear description of proposed workBroken down by labor and materialFixed priceEstimate of time of completionAdditional work must be part of original

scope of work Above $100,000 must be submitted to

HUD

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 contractProgress 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

Inspections

Frequent inspection of workCritical part of contract to ensure:

Workmanship is acceptableMaterials are installed as specified in contract

Conduct warranty inspectionsFinal inspection includes punch list

items

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

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

Davis Bacon Requirements

Ensure weekly payrolls are received/reviewed

Complete HUD’s 11(employee interview)

Documentation

Must contain sufficient documentation to detail complete history of contracts

Critical component of contract administration in the event of litigation

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Following your own procurement

policy is a requirement,

not a choice.

Questions