Types of Contracts

Contract Types

Any type of contract which is appropriate to the procurement and which will promote the best interests of the Authority may be used; however cost-plus-a-percentage-of-cost and percentage of construction cost methods are prohibited.

Options

Options for additional quantities or performance periods may be included in contracts, as long as there is a written determination in file which includes the fund availability, statement as to the continuing need for the item, indication as to whether the option was included and evaluated as part of the basic contract, and a review of the market price to indicate whether the option is still economical for the Authority, consistent with Authority Procedures (24 CFR 85.36(b) (9), 7460.8 REV-1, 6-2 OPTIONS)

Contract Clauses

In addition to containing a clause identifying the contract type, all contracts shall include all clauses required by Federal statutes, executive orders, and their implementing regulations, as provided in 24 CFR 85.36 (i).

Contract Administration

After the award of a contract, a Contract Administrator will be assigned by the Department Head for appointment by the Contracting Officer, to ensure that the contractors work and performance is acceptable and that they are paid accordingly. The Contracting Officer or his/her delegated representative will appoint an individual to be the Contract Administrator (usually the Project Manager or individual most familiar with the requirement). The Contracting Officer will assure that this individual has the adequate procurement training to exercise their responsibility prior to issuing an appointment letter to the Contract Administrator, outlining their responsibilities (monitor and review payment submittal, assure contractor performance in accordance with the terms and conditions of the contract, approve or reject progress schedules, etc.). (CFR 85.36 (a) (2)) (Appointment Letter attachment)

Contract Modification

The Executive Director is authorized to approve all contract modifications not to exceed a cumulative total of $20,000 per project. All modifications or amendments in excess of a cumulative total of $20,000 require Board approval. All modifications (change orders) in excess of 10% of the original contract award price will require a written justification as to the reasons (differing site conditions, change of schedule, unforeseen conditions, etc.) and to validate the reasonableness of price.