Procurement Methods

One of the following procurement methods shall be chosen based on the nature and anticipated dollar value of the total procurement:

Small Purchases

1. General: Any procurement not exceeding $10,000 may be made in accordance with HUDs Small Purchase procedures and as authorized in this section. Procurement requirements shall not be artificially divided so as to constitute a small purchase under this section (except as may be reasonably necessary to comply with Section IX, Assistance to Small and Other Businesses) or to constitute purchases not requiring Board review.
    
2. Petty Cash Purchases: Small purchases under $50 which can be satisfied by local sources may be processed through the use of a Petty Cash Account (Petty Cash Account not to exceed $500).
    
3. Purchases of $1,000 or less: For small purchases below $1,000 only one quotation or bid need be solicited if the price received is considered reasonable and documented in the file.
    
4. Purchases over $1,000: For small purchases in excess of $1,000 but not exceeding $10,000 no less than three offerors shall be solicited to submit a price quotation, bid or proposal depending on the complexity of the procurement.

Sealed Bids

Competitive Proposals

Non-Competitive Proposals

1. Conditions for Use: Procurements shall be conducted competitively to the maximum extent possible. Procurement by noncompetitive proposals may be used only when the award of a contract is not feasible using purchase procedures, sealed bids, or competitive proposals, and one of the following applies:
   • The item is available only from a sole source, determined by market research or there is a reasonable basis that the Authoritys minimum need can only be satisfied by a unique supply, service or trade.
      
   • A public exigency or an emergency situation exists that seriously threatens the public health, welfare, or safety, or endangers property, or would otherwise cause serious injury to the Authority, as may arise by reason of a flood, earthquake, epidemic, riot, equipment failure, or similar event. In such cases, there must be an immediate and serious need for supplies, services, or construction such that the need cannot be met through any other procurement methods and the emergency procurement shall be limited to those supplies, services, or construction necessary to meet the emergency;
     
   • HUD authorizes the use of a noncompetitive proposal; or
     
   • After solicitation of a number of sources, competition is determined inadequate.
   
   
2. Justification: Each procurement based on noncompetitive proposals shall be supported by a written justification for using such procedures (CFR 85.36 (C) (4) (d) (4)). The Contracting Officer shall approve the justification in writing. In addition, the justification will be submitted to the Board for their consideration and approval, as part of their resolution package.
    
3. Price reasonableness: The reasonableness of the price for all procurements based on noncompetitive proposals shall be determined by performing a cost analysis.

Cooperative Purchasing