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HomeMy WebLinkAboutMINUTES - 01082002 - HA1 AJ HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Robert McEwan, Executive Director DATE JANUARY 8, 2002 SUBJECT: REVISED PROCUREMENT POLICY FOR THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I. RECOMMENDED ACTION: APPROVE the revised Procurement Policy for the Housing Authority of the County of Contra Costa to be consistent with the compliance requirements of the U. S. Department of Housing and Urban Development (HUD) as recommended at the December 17, 2001 regular meeting of the Advisory Housing Commission. II FINANCIAL IMPACT: None. I11, REASONS FOR RECOMMENDATIONIBACKGROUNQ The Housing Authority's current Procurement policy has been in effect since September 15, 1996. It is necessary to update the current policy to'incorporate the provisions of revised HUD requirements.' This revised policy will raise the minimum small purchase amounts for the Housing Authority from $2,500.00 to $10,000.00 as recommended by HUD Handbook 7460.8 "Procurement Handbook for Public Housing Agencies" and the procurement standards of 24 CFR 85.36. A copy is attached for review. IV. CONSEQUENCES'OF NEGATIVE ACTION Should the Board of Commissioners elect not to approve the revised Procurement'Policy for the Housing Authority of the County of Contra Costa, the Housing Authority's ability to make timely and efficient'procurements would be diminished. CONTINUED ON ATTACHMENT: YES SIGNATURE . RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON .Ianuar B,2 APPROVED AS RECOMMENDED XX OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A XX UNANIMOUS (ABSENT Julie Mad. na TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE BOARD OF COMMISSIONERS'ON THE DATE SHOWN. ATTESTED .Tanuary 8. 2002 JOHN SWEETEN,CLERK OF THE BOARD OF COMMISSIONERS AND COUNTY ADMINISTRATOR BY '£ PUTY H:\Iudyhmtz\MSOFFICE\WINWORD\BOARD\BO-Procurement Policy.doc PROCUREMENT POLICY Established for the Housing Authority of the County of Contra Costa (HACCC) by Board action on Januar, R. 00 as referenced in appendix A. This Procurement Policy complies with Housing and Urban Development Annual Contributions Contract (ACC), HUD Handbook 7460.8, "Procurement Handbook for Public HousingAgencies,"and tate procurement standards of'24 CFR 85.36 (text included in Operational Procedures). I. GENERAL PROVISIONS & PROCEEDURES A. PURPOSE The purpose of this Procurement Policy is to provide for the fair and equitable treatment of all persons or firms involved in purchasing by the HACCC; assure that supplies, services, and construction are procured efficiently, effectively, and at the most favorable prices available to the HACCC; promote competition in contracting, provide safeguards for maintaining a procurement system of quality and integrity; and assure that HACCC purchasing actions are in full compliance with applicable Federal standards, HUD regulations, and State and local laws. B. APPLICATION This Procurement Policy applies to all contracts for the procurement of supplies, services, and construction entered into by the HACCC after the effective date of this Policy. it shall apply to every expenditure of funds by the HACCC for public purchasing, irrespective of the source of funds, including contracts that do not involve an obligation of funds (such as concession'contracts). However, nothing in this Policy shall prevent tate HACCC from complying with the terms and conditions of any grant, contract, gift or bequest that is otherwise consistent with law. The term "procurement", as used in this Policy, includes both contracts and modifications (including change orders)for construction or services, as well as purchase, lease, or rental of supplies and equipment. C. PUBLIC ACCESS TO PROCUREMENT INFORMATION Procurement information shall be a matter of public record to the extent provided by law. 1' H:S udyhmtz\MSOFF10EkV\nNWORD\BOARD\Procurement PolicyAoc II. PROCUREMENT AUTHORITY AND ADMINISTRATION A. All procurement transactions shall be administered by the Contracting Officer, who shall be the Executive Director or another individual he or she has authorized in writing.; The Executive Director shall issue operational procedures to implement this Policy. 1. The Executive Director or his/her designee shall ensure that: a) procurementrequirements are subject to an annual planning process to assure efficient and economical purchasing; b) contracts and modifications are in writing, clearly specifying the desired supplies, services, or construction, and are supported by sufficient documentation regarding the history of the procurement, including as a minimum the method of procurement'chosen, the selection of the contract type, the rationale for selecting or rejecting offers, and the basis for the contract price; c) for procurements other than small purchases, public notice is given of each upcoming procurement at least 10 calendar days before a solicitation is issued; responses to such notice are honored to the maximum extent practical; a minimum of 15 calendar days is provided for preparation and submission of bids or proposals; and notice of contract award is made available to the pudic; d) an independent cost estimate is prepared when practicable: before solicitation issuance and is appropriately,safeguarded for each procurement above the small purchase limitation, and cost or price analysis is conducted of the responses received for all procurements; e) contract award is made to the responsive and responsible bidder offering the lowest price(for sealed'bid contracts) or> contract award is made to the offeror whose proposal offers the greatest value to the HACCC consideringprice,'technical and other factors as specified in the solicitation (for contracts awarded based on competitive proposals); unsuccessful firms are notified within ten days after contract award; 2' H Iudyhrntz\MSOFFICE\WINWORD\BOARD\Procurement Poticy.doc f) there are sufficient unencumbered funds available to cover the anticipated cost of each procurement before contract awardor modification (including change orders), work is inspected before payment, and payment is made promptly for contract work performed and accepted; and g) the HAGCC complies with applicable HUD review requirements. Ill. PROCUREMENT METHODS When the HACGC will directly purchase the required items, one of the following procurement methods shall be chosen based on the nature and anticipated dollar value of the total requirement. A. SMALL PURCHASE PROCEDURES 1. General Any contract not exceeding $100,000 may be made in accordance with the small purchase procedures authorized in this section. Contract 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 Vill of this Statement). 2. For small Purchases over$10,000 and less than $100,000000, no less than three offerors shall be solicited to submit price quotations that may be obtained orally, by telephone,'or in writing. Verbally received quotations shall be properly documented. Award shall be made to the offeror providing the lowest acceptable quotation unless justified in writing based on price and other specified factors (such as for architect-engineer contracts). If non-price factors are used, they shall be disclosed to all those solicited. The names, addresses, and/or telephone numbers of the offerors and persons contacted, and the date and amount of each quotation shall be recorded and maintained as a public record. 3. For small purchases below$10,000, only one quotation need be solicited if the price received is considered reasonable. Such purchases must be distributed equitably among qualified sources. If practicable, a quotation shall be solicited from other than the previous source before placing a repeat order. Housing Authority may maintain a list of qualified bidders per section IV.0 `Qualified Bidder's Lists' 4. Petty Cash Purchases. Small purchases, ,under One-hundred Dollars [$100.00]that can be satisfied by local sources, may be processed through the use of a petty cash account. 3 H:\judyhmtZWSOFFICEXWINWORD\BOARD\Procurement Po cy.doc B. SEALED BIDS (NOT APPLICABLE TO PROFESSIONAL SERVICES CONTRACTS) 1. Conditions for Use Contracts shall be awarded based on competitive sealed bidding if the following conditions are present: a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively for the procurement; the procurement lends itself to a firm fixed price contract; and the selection of the successful bidder can be made principally on the basis of price. Sealed bidding is the preferred method for construction procurement. For procurements under the Capitol' Funds Program (CFP), sealed bidding shall be used for all construction and equipmentcontracts exceeding the small purchase limitation. 2. Solicitation and Receipt of Bids An invitation for bids shall be issued including'specifications and all contractual terms and conditions applicable to the procurement, including a statement that award will be made to the lowest responsible and responsive bidder` whose bid meets the requirements of the invitation for bids. The invitation for bids shall state the time and place for both the receipt of bids and the public bid opening'. All bids received shall be time- stamped but not opened and shall be stored in a secure place until bid opening. A bidder may withdraw its bid at any time prier to bid opening. 3. Bid Opening and Award Bids shall be opened publicly and in the presence of at least one witness. An abstract of bids shall be recorded and the bids shall be available for public inspection. Award shall be made by written notice to the successful bidder'as provided in the Invitation For Bids-. If equal low bids are received from responsible bidders, award shall be made by drawing lots or similar random method, unless otherwise stated in the Invitation For Bids.. If only one responsive bid is received from a responsible' bidder, award shall not be made unless cost or price analysis verifies the reasonableness of the price. 4. Mistakes in Bids a) Correction or withdrawal of inadvertently erroneous bids may be permitted, where appropriate,':before bid opening by written or telegraphic'notice received in the office designated in the invitation for bids prior to the time set for bid opening. After bid opening, corrections in bids shall be permitted only if the bidder can show by clear and convincing evidence that 4' H'tjudyhn tz\MSOFFIGEkWINWORD\BOARD\Procurement Policy.doc a mistake of a nonjudgmental character was made, the nature of the mistake, and the bid price actually intended. A low bidder, alleging a nonjudgmental mistake, may be permitted to withdraw its bid if the mistake is clearly evident on the face of the bid document, the intended bid is unclear, or the bidder submitsconvincing evidence that a mistake was made. Any contention of mistakes in the bid must be consistent with the State of California public contracts codes. b) All decisions to allow'correction or withdrawal of bid mistakes shall be supported by a written determination signed by the Contracting Officer. After bid opening, no changes in bid prices or previsions prejudicial to the interest of the HACCC or fair'competition shall be permitted. 5. Bonds In addition to the other requirements of this Procurement Procedure, the following will apply: a) For construction contracts exceeding $25,000, other than those specified in 5 (b) below, contractors may be required to submit the fallowing, unless otherwise required by State or local laws or regulations: 1) a kid guarantee from each bidder equivalent to 5% of the bid price; and 2) a performance bond for 100% of the contract price; and 3) a payment bond for 100ofo''of the contract price. b) In the case of construction 'of conventional development' projects funded pursuant to the U S. Housing Act of 1937, the contractor may be required to submit the following unless otherwise required by State or Racal laws or regulations: 1) bid guarantee from each bidder''equivalent to 5% of the bid price; and 2) one of the following: i. a performance and payment bond for 100% of the contract price; or ii. a 20% cash escrow; or iii. a 25% irrevocable letter of credit. 5 H:1 udyhyntzlMSOF'FICE\WINWORD\BOARDkPr€>curement Policy.doc C. COMPETITIVEPROPOSALS 1. Conditions for Use Competitive proposals (including turnkey proposals for development) may be used if there is an adequate method of evaluating technical proposals and where the HACCC determines that conditions are not appropriate for the use of sealed bids. An adequate number of qualified sources shall be solicited. 2. Solicitation The request for proposals (RFP) shall clearly identify the relative importance of price and other'evaluation factors and subfactors, including the weight given to each technical factor and subfactor. 3. Negotiations Unless there is no need for negotiations with any of the offerors, negotiations shall be conducted with offerors who submit proposals determined to have a reasonable chance of being selected for award, based on evaluation against the technical and price factors as specified in the RFP'. Such offerors shall be accorded fair and equal treatment with respect to any opportunity for negotiation and revision of proposals.' The purpose of negotiations shall be to seek clarification with regard to and advise offerors of the deficiencies in both the technical and price aspects of their proposals so as to assure full understanding'of and conformance to the solicitation requirements. No offeror shall be provided information about any other offerors proposal and no offeror shall be assisted in bringing its proposal up to the level of any other proposal'. Offerors shall not be directed to reduce their' proposed prices to a specific amount in order to be considered for award. A common deadline shall be established for receipt of proposal revisions based on negotiations. 4. Award. After evaluation of proposal revisions, if any, the contract shall be awarded to the responsible firm whose qualifications, price, and other factors considered, are the most advantageous to the HACCC. 6 H:k udyhrr tzlMSOFFICE\WINWORD\BOARD\Procurement Policy-doe 5. ArchitectlEngineer Services: Architect/engineer services in the excess of the small purchase limitation may be obtained by either the competitive proposal method or qualifications-based selection procedures. Sealed bidding shall not be used to obtain architect/engineer services. Under qualifications-based selection procedures, competitors' qualifications are evaluated and the most qualified competitor is selected, subject to the negotiation of fair and reasonable compensation. Price is not used as a sole selection factor under this method. Qualifications- based selection procedures shall not be used to purchase other typos of services even though architect/engineer firms are potential sources. D. NONCOMPETITIVE 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 smallpurchase procedures, sealed bids, or competitive proposals, and one of the following applies; a) The item is available only from a single source, based on a good faith review of available sources; b) An emergency exists that seriously threatens the public health, welfare, or safety; or endangers property; or would otherwise cause harm or injury to the HACGC; or may arise'by reason of a flood, earthquake, epidemic, riot, equipment failure; or unforeseeable event which may adversely effect the operations of the HACGC. In such cases, there most be an immediate and serious need for supplies, services, or construction such that the need cannot be met through ether procurement methods, and the emergency procurement shall be limited to those supplies, services, or construction necessary to meet the emergency; c)':. HUD authorizes the use of noncompetitive proposals; or T H:Iudyhmtz\MSQFFiCE\WINW©RD\BURRQ\Procurement Po icy.doc d) Atter solicitation of a number of sources, competition is determined inadequate. 1. Justification. Each procurement based on noncompetitive proposals shall be supported by a written justification for using such procedures. The justification shall be approved in writing by the Contracting Officer. 2. Price reasonableness. The reasonableness of the price for all procurements based on noncompetitive proposals shah be determined by performing a cost analysis, as described in paragraph III' E. E. COST AND PRICE ANALYSIS General: A cost or price analysis should be performed for all procurement actions, including contract modifications. The method of analysis shall depend on the facts surrounding each procurement. The degree of analysis shall be determined as follows. I. Submission of Cost or Pricing,Information If the procurement is based on noncompetitive proposals, or when only;one offer is received, or for other procurements as deemed necessary by the HACGC (e.g. when contracting for professional, consulting, or architect/engineer services) the offeror may be required to submit one of the following price justifications: a) a cost breakdown'showing projected costs and profit; b) commercial pricing and sales information, sufficient to enable the HACCC to verify the reasonableness of the proposed price as a catalog or market price of a commercial product sold in substantial quantities to the general public; or c) documentation showing that the Offered price is set by law or regulation. 8` H:l udyhmtz\MSOFFICEXWINWORD BOARotprocure€ent Poi cy.doc 3. Cast Analysis Cost analysis shall be performed if an offeror/contractor is required to submit a cost breakdown as part of its proposal. When a cost breakdown is submitted: cost analysis, shall be performed of the individual cost elements; the HACCC shall have a right to audit the contractor's books and records pertinent to such casts and profit shall be analyzed separately. Costs shall be allowable only to the extent that they are consistent with applicable Federal cast principles (forcommercial'firms, Subpart 31.2 of the Federal Acquisition Regulation, 48 CFR Chapter 1). In establishing profit, the HACCC shall consider factors such as the complexity and risk of the work involved, the contractor's investment and productivity, the amount of subcontracting, the quality of past performance, and industry profit rates in the area for similar work. 4. A comparison of prices shall be used in all cases ether than described'in III E. F. CANCELLATION OF SOLICITATIONS GENERAL. An invitation for bids, request for proposals, or other solicitation may be canceled before offers are due if: the HACCC no longer requires the supplies, services or construction; the HACCC can no longer reasonably expect to fund the procurement; proposed amendments to the solicitation would be of such magnitude that a new solicitation would be desirable; or similar reasons. 1. Solicitation may be canceled and all bids or proposals that have already been received may be rejected'if. The supplies, services, or construction are no longer required; Ambiguous or otherwise inadequate specifications were part of the solicitation; The solicitation did not provide for consideration of all factors of significance to the HACCC; Prices exceed available funds and it would not be appropriate to adjust,quantities to come within available funds; There is reason to believe that bids or proposals may not have been independently arrived at in open competition, may have been collusive, or may have been submitted in bad faith;' Or for good cause of a similar nature when it is in the best interest of the HACCC, 9 H:1 udyhmtz\MSOFFICEIW[NWORD7 BOARDNProcurement Poicy.doc 2. The reasons for cancellation shall be documented in the procurement file and the reasons for cancellation and/or rejection shall be provided upon request to any offeror solicited. 3. A notice of cancellation shall be sent to all offerors solicited and, if appropriate, shall explain that they will be given an opportunity to compete on any re-solicitation or future procurement of similar items. 4. If all otherwise acceptable bids received in response to an invitation for bids are at unreasonable prices, or only one bid is received and the price is unreasonable, the HACCC may cancel the solicitation and either:'. a) re-solicit using a request for proposals; or b) complete the procurement by using the competitive proposals method following paragraphs Ili (C) (3) and 111 (C) (4) above (when more than one otherwise acceptable bidhas been received); or by using the non-competitive proposals method and following paragraph 111 (D) (2)when only one bid is received at an unreasonable price provided that the Contracting Officer determines in writing that such action is appropriate. H. COOPERATIVE PURCHASING The HACCC may enter into Federal, State and local intergovernmental agreements to purchase or use common goods and services. The decision to use an intergovernmental agreement or conduct a direct procurement shall be based on economy and efficiency. If used, the intergovernmental agreement shall stipulate who is authorized to purchase on behalf of the participating parties and shall specify inspection,acceptance, termination, payment, and other relevant terms and conditions. The HACCC is encouraged to use Federal or State excess and surplus property instead of purchasing new equipment and property whenever such use is feasible and reduces project costs. 10 H'.NjudyhmtzWSOFFICEkW]NWORD\BOARD1Procurement Policy.doc IV. CONTRACTOR QUALIFICATIONS AND DUTIES A. CONTRACTOR RESPONSIBILITY Procurements shall be conducted only with responsible contractors, that is those who have the technical, legal, and financial competence to perform and who have a satisfactory record of integrity. Before awarding a contract, the HACCC shall review the proposed contractor's ability to perforin the contract successfully considering factors such as the contractor's integrity, compliance with public;policy, record of past performance, and financial and technical resources. If a prospective contractor is found to be non- responsible, a written determination of non-responsibility shall be prepared and included in the contract file and the prospective contractor shall be advised of the reasons for the determination. B. SUSPENSION AND DEBARMENT Contracts shall not be awarded to debarred, suspended, or ineligible contractors. 'Contractors may be suspended, debarred, or determined ineligible by HUD in accordance with HUD regulations (24 CFR Part 24) when necessary to protect the HACCC in its business dealings. ("List of Parties Excluded from Federal Procurement and I\lonprocurement Programs" is published by the U. S. General Services Administration). C. QUALIFIED BIDDER'S LISTS Interested businesses shall be given an opportunity to be included on qualified bidder's lists. Any pre-qualified lists of persons, firms, or products which are used in the procurement of supplies or services shall be Dept current and should include enough qualified sources to ensure competition. Firms shall not be precluded from qualifying during;the solicitation period. Solicitation mailing lists of potential contractors shall include, but not be limited to, such pre- qualified suppliers. 11 H:Iudyh tzWJSOFF10EkWINWORDXBOARD\Procuremnf Po[fcy.doc V. TYPES OF CONTRACTS, CLAUSES AND CONTRACT ADMINISTRATION A. CONTRACT TYPES Any type of contract which is appropriate to the procurement and which Will promote the best interests of the HACCC may be used provided that the cost-plus-a-percentage-of-cost and percentage of construction cost methods are prohibited. All procurements shall include the clauses and provisions necessary to define the rights and responsibilities of the parties. A cost reimbursement contract shall not be used unless it is likely to be less costly or it is impracticable to satisfy;the HACCC's needs otherwise and the proposed contractor's accounting system is adequate to allocate costs in accordance with applicable cost;principles. A time and material contracts may be used only if a written determination is made that no other contract type is suitable and the contract includes a ceiling price that the contractor exceeds at its own risk. B. OPTIONS Options for additional quantities or performance periods may be included in contracts; provided that: (i)the option is contained in the solicitation; (ii)the option is a unilateral right of the HACCC; (iii)the contract states a limit on the additional quantities and the overall term of the contract; (iv) the options are evaluated as part of the initial competition; (v)the contract states the period within which the options may be exercised; (vi) the options may be exercised only at the price specified in or reasonably determinable from the contract; and (vii) the options may be exercised only if determined to be more advantageous to the HACCC than conducting a new procurement. 12 H:NudyhmtzlMSOFFICE\WINWORi3i OARD\Procurement Poiicy.doc C. CONTRACT CLAUSES In addition to containing a cruse identifying the contract type, all contracts' shall include any clauses requiredby Federal statutes, executive orders, and their implementing regulations, as provided in 24 CFR 85.36(i), which may include, but not limited to, the following: I. Termination for convenience 2. Termination for default 3. Equal Employment Opportunity 4. Anti-Kickback Act 5. Davis-Bacon Act 6. Contract Work Hours and Safety Standards Act, reporting requirements, 7. Patent rights 8. Rights in data 9. Examination of records by Comptroller General, retention of records for three years after closeout 10. Clean air and water 11. Energy efficiency standards 12. Bid'protests and contract claims 13. Value engineering, and 14. Payment'of funds to influence certain Federal transactions The operational procedures of this policy shall contain the text of all clauses and required certifications(such as required non-collusive affidavits)used by the HACCC. 13 H.�udyh tz\M$OFFICE\WINWORD\BOARDNProcurement Poticy.doc D. CONTRACT ADMINISTRATION A contract administration system designed to insure that contractors perform in accordance with their contracts shall be maintained. The operational procedures shall contain guidelines for inspection of supplies, services, or construction, as well as monitoring contractor performance, stags reporting on construction contracts, and similar matters. For cast reimbursement contracts with commercial firms, costs are allowable only to the extent that they are consistent with the cost principles in FAR Subpart 31.2. VI. SPECIFICATIONS A. GENERAL All specifications shall be drafted so as to promote overall economy for the purpose intended and to encourage competition in satisfying the HACCC's needs. Specifications shall be reviewed prior to solicitation to ensure that they are not unduly restrictive or represent unnecessary or duplicative items. Functional or performance specifications are preferred_ Detailed product specifications shall be avoided whenever possible. Consideration shall be given to consolidating or breaking out procurements to obtain a more economical purchase. For equipment purchases, a lease versus purchase analysis may be performed to determine the most economical form'of procurement. B. LIMITATIONS The following specification limitations shall be avoided: geographic restrictions not mandated or encouraged by applicable Federal law (except for architect-engineer contracts, which may include geographic location as a selection factor if adequate competition is available);;unnecessary bonding or experience requirement; brand name specifications (unless a written determination is made that only the identified item will satisfy the HACCC's needs or in order to maintain consistency with existing;Housing Authority supplies and property); brand name or equal specifications (unless they list the minimum essential characteristics'and standards to which the item must conform to satisfy its intended use). Nothing in this Procurement Policy shall preempt any State licensing laws. Specifications shall be scrutinized to ensure that organizational conflicts of interest do not occur(for example, having a consultant perforin a study of the HACCC's computer needs and then allowing that consultant to compete for the subsequent contract for the computers). 14 H IudyhmtzWS© (cE\WINWORD BOARD1Procurement Policy.doc V11. APPEALS'ASC REMEDIES A. GENERAL. It is the HACCC°s policy to resolve all contractual issues;informally at the HACCC level, without litigation. Disputes shall not be referred to HUD until all administrative remedies have been exhausted at the HACGC level. When appropriate, the HACCC may consider the use of informal discussions between the parties by individuals who did not participate substantially in the matter in dispute, to help;resolve the differences. HUD will only review protests in cases of violations of Federal law''or regulations and failure of the HACCC to review a:complaint or protest. B. BIC? PROTESTS Any actual or prospective contractor may protest the solicitation or award of a contract for serious violations of the principles of this Policy. Any protest against a solicitation must be received before the due date for receipt of bids or proposals, and any protest against the award of a contract must be received within ten (10) calendar days after contract award or as stipulated in the solicitation, or the protest will not be considered. All bid;protests shall be in writing and submitted to the Contracting Officer or designee, who shall issue a written decision on the matter. The Contracting Officer may, at his or her discretion, suspend the procurement pending resolution of the pretest if warranted by the facts presented. C. CONTRACT CLAIMS All claims by a contractor relating to performance of,a contract shall be submitted in writing to the Contracting Qfficer or designee for a written decision. The contractor may request a conference on the claire. 15 H.�udyhmtzWSOFFtc 1WI CORDNBOARDNProcurement Policy.doc VII[, ASSISTANCE TO SMALL AND OTHER BUSINESSES A. REQUIRED EFFORTS Consistent with Presidential Executive Carders 11625, 12138, and 12432, and Section 3 o the HUD Act of 1968, the HACCC shall make efforts to ensure that small and minority-owned businesses, women's business enterprises, labor surplus area businesses, and individuals or firms%located in or awned in substantial part by persons residing in the area of a HACCC project are used when possible. Such efforts may include, but not be limited to 1. Including such firms, when qualified, on solicitation mailing lists; 2. Encouraging their participation through direct solicitation of bids or proposals whenever they are potential sources; 3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by such flats; 4. Establishing delivery schedules, where the requirement permits, whichencourage participation by such firms; 5. Including in contracts a clause requiring contractors, to the greatest extent feasible, to provide opportunities for training and employment for lower income residents of the protect area, and,to award subcontracts for Mork in connection with the project to business concerns which are located in, or owned in substantial part, by persons residing in the area of the project; 6. Requiring prime contractors, when subcontracting is anticipated, to take the positive steps listed in Al'through A5 above. 16 Hl ljudyhmtzW SOFFICE1WINW4RDSORRD\Procurement'Po[icy.doc B. DEFINITIONS 1. A small business is defined as a business that is independently,owned, not dominant in its fieldt of operation, and not an affiliate or subsidiary of a business dominant in its field of operation.. 2. A minority-owned business is defined as a lousiness which is at least 51% owned by one or more minorityz group members; or, in the case of a publicly?-owned business, one in which at least 51% of its voting stock is owned,by one or more minority group members, and whose management and dally business operations are controlled by one or more such individuals. Minority group members include, but are not limited to, Black Americans, Hispanic Americans, Native Americans-, Asian Pacific Americans and Asian Iridian Americans, and Hasidic JewishAmericans. 2. A women's business enterprise is defined as a business that is at least 51% awned by a woman or women who are U.S. citizens and who also control or operate the business. 4. A labor surplus area business is defined as a business which, together with its immediate subcontractors, will incur more than 50% of the cost of performing the contract in an area of concentrated unemployment or underemployment. 5. A business concern located in the area of the project, is defined as an!individual or firm located within the relevant Section 3 covered project area, as determined pursuant to 24 CFR 135.15, listed on HUD's registry of eligible business' concerns, and meeting thedefinition of small business above. 'A business'concern owned in substantial part by persons residing in the area of the protect is defined as a business concern which is 51% or,more owned by persons residing within the Section 3 covered'project, awned by persons considered by the U.S. Small Business Administration to be socially,or;economically disadvantaged and meeting the definition of small business above. 17 H:IudyhmtzW$OFF[CF-\V INWORt)�BCfARD)Pioctirermnt Policy,doc Ix. ETHICS IN PUBLIC CONTRACTING GENERAL ' The HACCC shah adhere to the following code of conductconsistent with applicable State or local law.. A. CONFLICT OF INTEREST No employee, officer, or agent of this HACCC may participate directly or indirectly in the selection, award, or administration of any contract if a conflict, real or apparent, would be involved. Such conflict would arise when a financial or other interest in a firm selected for award is held by: 1. An employee, officer or agent involved in making the award; 1. His/her relative by blood or marriage (including father, mother, son, daughter, brother, sister, uncle,'aunt, first cousin, nephew, niece, husband,',,wife, father-in-law, mother- in-law, son-in-law, daughter-in-law, brother- in-law, sister-in- law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, or half sister); 2. His/her partner;'or; 3. An organization which employs, is negotiating to employ, or has an arrangement concerning prospective employment of any of the above. B. GRATUITIES, KICKBACKS, AND USE OF CONFIDENTIAL INFORMATION HACCC officers, employees or agents shall not solicit or accept gratuities, favors or,anything of monetary value from venders, contractors, potential.,venders or contractors, or parties to subcontracts, and shall not knowingly use confidential information for actual or anticipated personal gain. C. PROHIBITION AGAINST CONTINGENT FEES Contractors shall not retain a person to solicitor secure a'HACCC contact for a commission, percentage, brokerage, or contingent fee, except for bona fide employees or bona fide established commercial selling agencies_ 18 H:4udyhmtzWlSOFFICEXWIV kWORDXBOARD.NProcurement Pol cy.doc