procurement_standards.doc

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PROCUREMENT

Procurement Standards:Each owner/developer must become familiar 24 CRF 85.3!24 CFR "arts 5#$ % &2 and C"' &($5. "rocurement standards under the )*+Epro,ram include but are not limited to-

. owner/developers ma use their own procurement procedures which reflectapplicable 0tate and local laws and re,ulations! provided that the procurementsconform to applicable Federal laws and standards1

2. owner/developers must maintain a written code of standards of conduct ,overnin,the performance of their emploees en,a,ed in the award and administration ofcontracts. o emploee! officer or a,ent of the owner/developer shall participate

in selection! or in the award or administration of a contract supported b )*+Efunds if a conflict of interest! real or apparent! would be involved1

3. owner/developers are encoura,ed to use value(en,ineerin, clauses in contracts forconstruction proects of sufficient sie to offer reasonable opportunities for costreductions. alue(en,ineerin, is a sstematic and creative analsis of eachcontract item or tas6 to ensure that its essential function is provided at the overalllower cost1

4. owner/developers will ma6e awards onl to responsible contractors possessin, theabilit to perform successfull under the terms and conditions of a proposed

procurement1

5. owner/developers must maintain records sufficient to detail the si,nificant histor ofall procurement. 7hese records will include! but are not necessaril limited to thefollowin,- rationale for the method of procurement! selection of contract tpe!contractor selection or reection! and the basis for the contract price1

. owner/developers will have protest procedures to handle and resolve disputes relatin,to their procurements and shall in all instances disclose information re,ardin, theprotest to 'EC'1

#. all procurement transactions will be conducted in a manner providin, full and opencompetition consistent with the federal procurement standards. 0ome of thesituations considered to be restrictive of competition include but are not limitedto-

placin, unreasonable reuirements on firms in order for them to ualif to

do business!

reuirin, unnecessar e9perience and e9cessive bondin,!

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noncompetitive pricin, practices between firms or between affiliated

companies!

noncompetitive awards to consultants that are on retainer contracts!

or,aniational conflicts of interest!

specifin, onl a brand name product instead of allowin, an eual product

to be offered and describin, the performance of other relevant reuirementsof the procurement! and

an arbitrar action in the procurement process1

8. owner/developers must have written selection procedures for procurementtransactions. 7hese procedures will ensure that all solicitations-

incorporate a clear and accurate description of the technical reuirements

for the material! product! or service to be procured1 and

identif all reuirements which the :bidders; must fulfill and all other

factors to be used in evaluatin, bids or proposals.

Methods of Procurement: *wner/developers are responsible for the satisfaction of allcontractual issues arisin, out of procurements entered into in connection with the )*+Epro,ram. 7his includes assurin, that all contracts funded in whole or in part with )*+Efunds are awarded in accordance with federal law! contain all of the necessar provisionsfor compliance with applicable re,ulations! and are e9ecuted in conformance with there,ulations. procurement-

bids must be publicl advertised and bidders must be ,iven sufficient time

to respond prior to the date set for openin, of bids =3$ das>1

the invitation to bid! includin, specifications and pertinent attachments!

must clearl define the items or services needed1

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all bids must be opened publicl at the time and place stated in the

invitation to bid1

a firm! fi9ed(price contract award must be made b written notice to the

responsible bidder whose bid! conformin, to the invitation to bid! isselected1 and

an or all bids ma be reected when there are sound documented businessreasons that to do so would be in the best interest of the pro,ram.

2. Procurement by com#etitive #ro#osal. 7he techniue of competitive proposalsis normall conducted with more than one source submittin, an offer and involvesissuin, Reuests for "roposals =RF"> or ?ualifications =RF?>.

Com#etitive #ro#osals methodis ,enerall used when conditions are notappropriate for the use of sealed bids. @t ma be used if the selection could bebased on factors other than price! e.,.! e9perience and capacit. "rocurement ofarchitectura and en,ineerin, =A%E> services falls under this cate,or. *nl

fi9ed price or cost reimbursement :not to e9ceed; contracts ma be awarded.

Bhen usin, competitive proposal/ne,otiation! the followin, reuirements appl-

proposals must be solicited from three or more ualified sources to permit

reasonable competition consistent with the nature and reuirements of theprocurement1

a RF" must be issued and publicied which identifies all si,nificant

evaluation factors and their relative importance1

all proposals received must be evaluated and the owner/developer must

have a formal process for technical evaluation of proposals received! fordetermination of responsible :bidder;! and for selection1

Note:e,otiations should be conducted with more than one :bidder;1

awards ma be made to the :bidder; whose proposal would be most

advanta,eous to the owner/developer! considerin, the factors identified inthe RF" or RF?! with price and other factors considered1 and

owner/developers ma use competitive proposal procedures for

ualifications(based procurement of architectural/en,ineerin, =A/E>professional services whereb competitors ualifications are evaluated andthe most ualified competitor is selected! subect to ne,otiation of fair andreasonable compensation.

The method, where price is not used as a selection factor, can only be used in

procurement of A/E professional services.

3. Procurement by small #urchase #rocedures"0mall purchase procedures arethose relativel simple and informal procurement methods for securin, services!supplies! or other propert that do not cost more than D$$!$$$. @f small purchaseprocedures are used! price or rate uotations shall be obtained from an adeuatenumber of ualified sources.

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4. Procurement by noncom#etitive #ro#osalsis procurement throu,h solicitationof a proposal from onl one source! or after solicitation of a number of sources!competition is determined inadeuate.

Noncom#etitive #ro#osalsmethodmay be used only whenthe award of a

contract is not feasible under sealed bids! competitive proposals or small purchaseprocedures and one of the followin, circumstances applies-

after solicitation from a number of sources! competition is determined

inadeuate1 or

the items or services reuired are available onl from one source1 or

'EC' authories noncompetitive proposals because of a public e9i,enc

or emer,enc is such that the ur,enc will not permit a dela beond thetime needed to emplo one of the other methods described above.

Note: 7he fact that a contractor is performin, other consultant services for theowner/developer is not! in itself! an adeuate ustification for a non(competitive

ne,otiated award.

Minority and $omen %usiness Enter#rise Re&uirements: 0ection 28 of the ationalAffordable )ousin, Act reuires that minorit and women owned business enterpriseshave opportunities in all contractin, activities in )' assisted housin,.*wner/developers! when solicitin,/advertisin, for bids! must include a statement thatsas! 'minority and omen oned businesses are encouraed to a##ly). 'EC'maintains a list of all minorit and women owned businesses. Each owner/developer isreuired to reuest a cop of the list for their proect area and provide opportunities for+


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%ondin Re&uirements: For construction or facilit improvement contracts orsubcontracts e9ceedin, D$$!$$$ 'EC' ma accept the bondin, polic of the ,rantee ifit protects 'EC' interest1 if not! the minimum reuirements are-

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Section .: 0ection 3 of the )ousin, and rban 'evelopment Act of &8! as amended bthe )ousin, and Communit 'evelopment Act of &&2! reuires that economicopportunities ,enerated b )' financial assistance =)*+E> for housin, andcommunit development pro,rams be tar,eted toward low( and ver low(income

persons. @n effect this means whenever )' assistance ,enerates opportunities foremploment or contractin,! to the ,reatest e9tent feasible! owner/developers mustprovide opportunities to low( and ver low(income persons and to businesses owned bor emploin, low( and ver low(income persons. 0ection 3 onl applies to-

owner/developers who receive D2$$!$$$ or more1 and proects for which

)*+Es share of the proect costs e9ceeds D$$!$$$1 and

contracts and subcontracts awarded on the proect for which )*+Es share of

proect costs e9ceeds D$$!$$$.

*wner/developers and their contractors must showpreferencesfor ,ivin, trainin, andemploment opportunities to low(income persons! to the ,reatest e9tent feasible.

*wner/developers and their contractors should show priorit considerations for hirin,low(income persons as follows-

low(income persons residin, in the proect area or nei,hborhood1 and

participants in )' Kouthbuild pro,rams.

*wner/developers and their contractors/subcontractors must ,ive preference to 0ection 3businesses. A 0ection 3 business is either 5G or more owned b low(income persons!emplos substantial numbers of low(income persons! or is substantiall owned blow(income persons =but less than 5G> and that emplos low(income persons in 6emana,ement positions. 7he should show the followin, preference order for awardin,contracts-

0ection 3 businesses that operate in the proect area1 and Entities that carr out Kouthbuild pro,rams.

Note: 7he persons or businesses hired should be ualified to perform the wor6 reuired.

*wner/developers and their contractors should ma6e ood faith efforts to hirelow(income people and/or award contracts and subcontracts b doin, the followin,-

advertisin, contractin, opportunities in prominent areas of the housin,

development1

providin, written notices to all 6nown 0ection 3 businesses1

coordination of pre(bid meetin,s and wor6shops1 brea6in, out contract wor6 items into economicall feasible units for 0ection

3 businesses1 and

contactin, a,encies administerin, Kouthbuild pro,rams.

*wner/developers must document their best efforts to compl with 0ection 3 and theirsuccess at hirin, low(income persons or businesses. 7he 'EC' is responsible to provideannual reports to the Assistant 0ecretar for Fair )ousin, and Eual *pportunit

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=F)E*>. 7he 'EC' will be wor6in, with ,rant owner/developers for reportin, their0ection 3 efforts.

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PROCUREMENT /U0,E

7he followin, ,uide is provided as an illustrative e9ample of a procurement process thatmeets the standards discussed above for'Procurement by com#etitive #ro#osals) for,eneral contractors.

/U0,E

Pro1ect Name:

Pro1ect 2ocation:

Pro1ect 3:

,ate:

Sam#le Procurement Procedure for Com#etitive Neotiations

7he *wner/'eveloper shall adhere to the followin, procurement procedure for the"roect. 7his procurement procedure will allow for a competitive selection process to beused to evaluate and select the ,eneral contractor and abatement contractor =contractors>.0election of subcontractors of the ,eneral contractor and the abatement contractor shallbe administered b their own procedures.

. *wner shall solicit Reuest For ?ualifications =RF?> from contractors. 0olicitation ofcontractors =E9hibit > will include contact directl from owner and various desi,nconsultants wor6in, on the proect and contact throu,h minorit resource centers =E9hibit2>.

2. Contractors will be available to pic6(up a RF? pac6a,e =E9hibit 3> which shall includea description of the proect! RF? submission reuirements! contract reuirements!selection criteria and information on 0ection 3.

3. 0election criteria shall evaluate all criteria included in the RF? "ac6a,e and thecontractors which rate the hi,hest will be selected. A ran6in, sheet shall be used b theselection committee =E9hibit 4>.

4. *wner will submit a 0ection 3 "lan to the 'epartment of Economic and Communit'evelopment ='EC'> prior to ne,otiations with contractors.

5. *wner will establish a selection committee to screen and evaluate RF? responses!select and interview ualified candidates as the committee deems necessar! evaluateproposals! and ma6e the final selection. 7he selection committee ma include! but notlimited to! members of the


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. RF? selection shall ualif a minimum of three and ma9imum of si9 candidates as,eneral contractor and a minimum of three and ma9imum of si9 candidates as abatementcontractors or an appropriate number of contractors as determined b the committee.

#. Each selected contractor shall provide cost estimates and valued en,ineerin, at various

desi,n phases as the proect schedule permits and upon completion of constructiondocuments each selected contractor shall submit a sealed proposal.

8. *wner shall submit an independent cost estimate to 'EC' at the completion of theconstruction documents.

&. 7he final selection shall be made based principall on price and a fi9ed price contractshall be awarded to the most responsive and responsible contractor.

$. 7he contractorLs selection pac6a,e submitted to 'EC' shall include a statement thatthe contractor shall adhere to owner/developer 0ection 3 "lan! an Affirmative Action

"olic and a statement that the contractor shall compl with Affirmative Actioncompliance as reuired b 'EC' and


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E4hibit 5

Pro1ect Name:

Pro1ect 2ocation:

Pro1ect M-

Re&uest for 6ualifications Notice

*wner/'eveloper! is solicitin, Reuest for ?ualifications =RF?> from ,eneralcontractors and abatement contractors =contractors> for our "roect located in!! Connecticut.

7he "roect consists of the rehabilitation/new construction of buildin,s located at! ! Connecticutcontainin, units of housin, for low and moderate income families.

7he proect will be financed throu,h the 'epartment of Economic and Communit'evelopment ='EC'> )*+E "ro,ram and.

Contractors who wish to be considered and have the e9pertise! e9perience and capacit toprovide the reuired services shall obtain a cop of the RF? submission instructions from!Connecticut.

RF? submissions shall be hand(delivered to !Connecticut in triplicate on or before .

*wner reserves the ri,ht to accept an submittal or to reect an submittal and to waivean informalities or irre,ularities in the submittal.

is an Affirmative Action/Eual *pportunitEmploer and small! minorit and woman owned businesses are encoura,ed to appl.

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E4hibit .

Pro1ect Name:

Pro1ect 2ocation:

Pro1ect 3:

Re&uest for 6ualifications 0nstructions

Pro1ect ,escri#tion- 7he "roect consists of the new construction/rehabilitation of buildin,s located at 0treet! ! Connecticut containin,units of housin, for low and moderate income families. 7he proect is scheduledto start construction in ! 2$$ with completion in appro9imatel months1with possible phased relocation and/or occupanc.

Pro1ect 7inancin- 7he proect will be financed throu,h the 'epartment of Economicand Communit 'evelopment ='EC*> )*+E "ro,ram and . 7hewill act aslimited partnerand proect sndicatin, a,ent.

Re&uest for 6ualification Submission- RF? submissions shall be hand(delivered to! Connecticut in triplicate on or before .

Submission 0nformation and Selection Criteria- @nterested contractors shall submitinformation as outlined below and selection of approved contractor shall be based on thesubmission and review of the information. A selection committee will be established toreview the information submitted! verif the information submitted! contact referencesand interview contractors as the committee ma reuire. 7he selection committee mainclude! but not limited to! members of the shall submit a sealed proposal. 7he sealedproposal shall be accompanied with a statement that the contractor shall adhere to*wner/'evelopers 0ection 3 "lan! an Affirmative Action "olic and a statement that thecontractor will compl and adhere to Affirmative Action compliance as reuired b'EC' and


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Pro1ect Name:

Pro1ect 2ocation:

Pro1ect M:

Re&uest for 6ualifications 0nstructions

. ame of compan and Federal identification number2. "ermanent main office address3. "rincipal business of firm4. Bhen or,anied5. @f a corporation! where incorporated. )ow man ears ou have been en,a,ed in construction under our present firm or

trade nameN#. Cop of appropriate licenses

8. Contracts on hand with anticipated dates of completion and proects completed in thepast 5 ears! showin, ,ross amount of each contract&. Hist of references relatin, to the contracts on hand and proects completed$. 'ocumentation of prior e9perience in proects similar to the

"roect1 includin, sie! rehabilitation! federal fundin,! ta9 credit fundin, and historicdistrict

. 'ocumentation of past performance on similar proects! i.e. have ou defaulted on acontract! failed to complete wor6 and percenta,e of chan,e orders

2.


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E4hibit 8

Pro1ect Name:

Pro1ect 2ocation:

Pro1ect 3:

Selection Criteria Ran9in $eiht

Contractor ame- Contractor 7pe-

0election Committee +ember ame-

'ate-

Ran9in Scores: ;lo< =;hih

Complete RF? Response- =$(5 points> Hocal Appropriate Hicenses/Current- =5 points> Contracts on )and/Conflict of 0chedule- =$(5 points> References- =$($ points> "rior E9perience- )ousin, Rehab/ew Construction

0imilar Contract Amounts- =$(5 points> Federal Fundin,- =5 points> 7a9 Credit Fundin,- =5 points> 0tate of Connecticut Funded- =5 points> )istoric 'istrict- =5 points>

"ast "erformance- 'efaulted- =(5 points> Failed to Complete Bor6- =$(5 points>

Current Financial Condition- =$(5 points> @nterest and Ratin, of @nsurance Covera,e/0tatement of Compliance- =$(5 points> Affirmative Action/0tatement of Compliance- =$(5 points> 0ection 3/0tatement of Compliance- =$(5 points>

Total Points ;>>>>

)i,hest ran6in, contractors shall be ualified at a minimum of three and ma9imum of si9candidates as ,eneral contractor and a minimum of three and ma9imum of si9 candidatesas abatement contractor or an appropriate number of contractors as determined b thecommittee.

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procurement_standards.doc

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