Procurement Policy

TABLE OF CONTENTS

1. PREFACE
   
   
2. GENERAL PROVISIONS
   
   
3. PROCUREMENT AUTHORITY AND ADMINISTRATION
   
   
4. PROCUREMENT METHODS
   
   
5. CONTRACTOR QUALIFICATIONS AND DUTIES
   
   
6. TYPES OF CONTRACTS, CLAUSES, AND CONTRACT ADMINISTRATION
   
   
7. SPECIFICATIONS
   
   
8. APPEALS AND REMEDIES
   
   
9. ASSISTANCE TO SMALL, WOMEN, AND MINORITY OWNED BUSINESSES
   
   
10. ETHICS IN PUBLIC CONTRACTING
    
    
11. REFERENCE DOCUMENTS / APPOINTMENT LETTER ATTACHMENT

I.   PREFACE
This Procurement Policy is established by the Board of Commissioners (Commission) of the Housing Authority of the City and County of San Francisco (the Authority) to provide the Authority staff with a set of policies for procurement of supplies, equipment, services and construction activities.

Return to top

II.   GENERAL PROVISIONS

1. GOAL OF THE PROCUREMENT POLICY
   This Procurement Policy is established to provide for the fair and equitable treatment of all persons or firms involved in purchasing by the Authority; assure that supplies, equipment, services, and construction activities are procured efficiently, effectively, and at the most favorable prices available to the Authority; promote competition in contracting; provide safeguards by maintaining a centralized procurement system of quality and integrity; and to assure that Authority purchasing actions are in full compliance with applicable Federal standards, HUD regulations, and State and local laws.
   
   The objective of the Contracting/Procurement Division is to add value to the Authority through the procurement of quality goods, services and construction at a fair and reasonable cost. The Contracting/Procurement Division will require a contractor to; meet a minimum of 25% resident employment (monitored on a weekly basis) as well as encourage contractors to exceed this minimum goal; provide maximum contracting opportunities for minority and women owned businesses; and adhere to the term and conditions of any existing labor memorandum of understanding. On competitive proposals, the SFHA will place a higher value during the selection process on those contractors who exceed the minimum 25% of resident employment and provide maximum contracting opportunities for minority and women owned businesses.
   
   The Contracting/Procurement Division will provide an introduction to SFHA Procurement briefing to new employees, and will provide continous training for the staff on current issues, laws, regulations and procurement innovations.
    
2. APPLICATION
   This Procurement Policy applies to all contracts and procurement actions undertaken by the Authority. It shall apply to every expenditure of funds by the Authority for public purchasing, regardless of the source of the funds, including Comprehensive Grant Programs, HOPE VI Programs, and Operating Subsidy funds. Nothing in this Procurement Policy shall prevent the Authority 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 Procurement Policy includes Purchase Orders, Contracts and Contract Modifications, used to obtain supplies, equipment, services, construction activities, and the lease or rental of supplies, equipment or facilities.
    
3. PUBLIC ACCESS TO PROCUREMENT INFORMATION
   Procurement information shall be a matter of public record to the extent provided in the California Public Records Act (Section 6250).
    
4. UNAUTHORIZED OBLIGATIONS
   Under no circumstances, except as stated below, are funds to be obligated by the Authority and members of its staff unless authorized through the proper procurement process as outlined in this Policy or the Authority Procurement Procedures. The Executive Director will take positive action to preclude, to the maximum extent possible, the need for procurement actions to be ratified by the Commission after funds have been expended by the Authority staff.
   
   In cases where time is of the essence in order to protect lives, property or in other emergency situations, the Executive Director, acting as the Contracting Officer for the Authority, is authorized to obligate money on behalf of the Authority. The procurement action including related justification documents will be submitted as a resolution to the Commission for prior approval, or ratification if funds have been obligated by the Executive Director's action.
    
5. NO PRE-PAYMENT / PAYMENT IN ADVANCE FOR GOODS OR SERVICES
   The Authority will only authorize payments to vendors or contractors if the following conditions are met: for services, the work must have been rendered and is deemed acceptable; for goods, the items must have been received and accepted; the price is determined to be fair and reasonable. Payments to governmental agencies and public utilities will be made in conformance with the requirements of those entities.
    
6. COST AND PRICE ANALYSIS
   A cost or price analysis shall be performed for all procurement actions, including contract modifications, in order to determine price reasonableness.
    
7. CANCELLATION OF SOLICITATIONS
   1. An Invitation for Bid, Request for Proposal, Request for Qualifications or other solicitation may be cancelled anytime before opening.
       
   2. A solicitation may be cancelled and all bids or proposals that have already been received will be returned at any time prior to the awarding of a contract.
       
   3. Any and all bids may be rejected if there is a sound documented reason.
   
    
8. AMENDING PROCUREMENT POLICY OR PROCEDURES
   1. The Procurement Policy of the Authority as stated within this document will only be amended through resolution and approval of the Commission.
   2. The Procurement Procedures of the Authority may be amended at any time at the discretion of the Executive Director, and do not require Commission approval.
   
    
9. ECONOMIC OPPORTUNITIES FOR PUBLIC HOUSING RESIDENTS
   1. In order to ensure that employment opportunities are available to Housing Authority residents, the Commission expects all contractors to adhere to the requirements outlined under Section 3 of the Housing and Urban Development Act of 1968 as stated in 24 CFR 135, Determination and Order No. D-109 of Commission Resolution 4604 - Determination and Order to Establish a Goal of Hiring Residents to Constitute a minimum of twenty-five Percent (25%) of the total workforce for all construction contracts performed by the Housing Authority, and other resolutions as the Commission shall adopt from time to time.
   2. Additionally, to ensure Public Housing Authority residents have the best opportunity to apply, be trained and be considered for entry-level jobs outside of housing Authority Contracts, the Authority through the Executive Director will participate in the First Source Hiring Program of the City and County of San Francisco.
   
    

Return to top

III.   PROCUREMENT AUTHORITY AND ADMINISTRATION

1. CONTRACTING OFFICER
   The Executive Director is the Contracting Officer with the authority to delegate to the Director of Contracting to act on behalf of the Contracting Officer in carrying out the Authority's contracting program.
    
2. PROCEDURES
   The Authority shall issue operational procedures (Procedures) to implement this Procurement Policy, which shall be based on 24 CFR 85.36 Procurement, HUD's Handbook 7460.8, "Procurement Handbook for Public Housing Agencies", HUD's Annual Contributions Contract, 24 CFR 941 Public Housing Development for Public Housing Agencies, 24 CFR 135 Contracting Opportunities for Project Area Businesses, 24 CFR 963 Contracting With Resident Owned Businesses, and the State of California's Public Contract Code.
    
3. REVISIONS
   This Procurement Policy and any later changes shall be submitted to the Commission for approval. The Commission appoints and delegates procurement authority to the Executive Director and is responsible for ensuring that any procurement policies adopted are appropriate for the Authority.
    
4. CENTRALIZED PROCUREMENT
   The Authority maintains a centralized procurement process although specific actions relating to a procurement may be performed outside the contracting department. The Executive Director is responsible for implementing the Procurement Policy. The Contract/Procurement Division ensures for the Executive Director that all departments of the Authority are properly executing Procurement Policies and Procurement Procedures as well as Federal laws, HUD regulations, guildlines and all local laws and ordinances. This will be accomplished through direct participation and reviews of portions of the procurement process performed by Authority staff in other departments and divisions.
    
5. PROCUREMENT THRESHOLDS
   1. The Commission shall approve through resolution all Contracts or commitments of funds that exceed $25,000 dollars.
       
   2. The Executive Director is hereby authorized to enter into Contracts or commit funds up to $25,000 dollars.

Return to top

IV.   PROCUREMENT METHODS
One of the following procurement methods shall be chosen, based on the nature and anticipated dollar value of the total procurement:

1. SMALL PURCHASES
   1. General: Any procurement not exceeding $100,000 may be made in accordance with HUD's 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 Commission 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 $2,500 or less: For small purchases below $2,500 only one quotation or bid need be solicited if the price received is considered reasonable and documented in the file.
       
   4. Purchases over $2,500: For small purchases in excess of $2,500 but not exceeding $100,000 no less than three offerors shall be solicited to submit a price quotation, bid or proposal depending on the complexity of the procurement.
   
    
2. SEALED BIDS
   For procurements under the Comprehensive Grant Program and the HOPE VI Programs, sealed bidding is the preferred method used for all construction and equipment contracts. (CFR 85.36-(c) (4)(d)(2)(i).
    
3. COMPETITIVE PROPOSALS
   1. Request for Proposals (RFP): Competitive proposals may be used if there is an adequate method of evaluating technical proposals (price and other factors considered - CFR 85-36, Evaluation Criteria 7460.8 REV 1, 4-20). and where the Authority determines that conditions are not appropriate for the use of sealed bids. An adequate number of qualified sources shall be solicited and given sufficent time to provide a responsive proposal.
       
   2. Request for Qualifications (RFQ): The Government Code of the State of California requires the selection of professional services which includes architectural, landscape architectural, engineering, environmental, land surveying or construction project management firms be procured by the Qualification Based Selection Process.
   
    
4. 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 purchase procedures, sealed bids, or competitive proposals, and one of the following applies:
      1. The item is available only from a sole source, determined by market research or there is a reasonable basis that the Authority's minimum need can only be satisfied by a unique supply, service or trade.
          
      2. 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;
          
      3. For those procurements over $100,000 dollars, HUD authorizes the use of a noncompetitive proposal; or
          
      4. 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.
   
    
5. COOPERATIVE PURCHASING
   The Authority may enter into Federal, State of California and local intergovernmental agreements to purchase or use common goods and services as authorized by law. The decision to use an intergovernmental agreement or conduct a direct procurement shall be based on economy and efficiency.

Return to top

V.   CONTRACTOR QUALIFICATIONS AND DUTIES

1. CONTRACTOR RESPONSIBILITY
   Procurements shall be conducted only with responsive and responsible contractors and vendors, who have the technical and financial competence to perform and who have a satisfactory record of integrity.
    
2. SUSPENSION AND DEBARMENT
   Purchase Orders or Contracts shall not be awarded to any firm at any tier (subcontractors) which is debarred, suspended, or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, "Debarment and Suspension."

Return to top

VI.   TYPES OF CONTRACTS, CLAUSES, AND CONTRACT ADMINISTRATION

1. 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.
    
2. 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)
    
3. 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).
    
4. CONTRACT ADMINISTRATION
   After the award of a contract, a Contract Administrator will be assigned by the Department Head for appoinment 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 submittals, assure contractor performance in accordance with the terms and conditions of the contract, monitoring the contractors efforts to assure the minimum 25% resident hiring, approve or reject progress schedules, etc.). (CFR 85.36 (a) (2)) (Appointment Letter attachment)
    
5. CONTRACT MODIFICATION
   The Executive Director is authorized to approve all contract modifications not to exceed a cumulative total of $25,000 per project. All modifications or amendments in excess of a cumulative total of $25,000 require Commission approval. All modifications (change orders) in excess of 15% of the original contract award price will require a written justification as to the reasons (differing site conditions, change of schedule, unforeseen conditions, monitoring the contractors efforts to assure the minimum 25% resident hiring throughout the life of the project, etc.) and to validate the reasonableness of price.

Return to top

VII.   SPECIFICATIONS AND PURCHASE REQUEST

1. All specifications shall be drafted to encourage full and open competition. Requester must ensure that they are not unduly restrictive, and do not represent unnecessary or duplicative items. Specification must be included with the Purchase Request.
    
2. All procurement actions will require a Purchase Request to initiate a process signed and approved by the Department Head. This is an internal form prepared by a department in response to a requirement. It is the responsibility of the requesting department to provide complete and accurate purchase information necessary to initiate the procurement action.

Return to top

VIII.   APPEALS AND REMEDIES

1. GENERAL
   It is the Authority's policy to resolve all contractual issues informally at the Authority level and in conformance with the requirements of the dispute clauses in the contract.
    
2. BID PROTESTS
   A protest against a solicitation must be received in writing before the due date for receipt of bids or proposals and submitted to the Contracting Officer. Protest against the award of a contract must be received in writing and submitted to the Contracting Officer. Bid protests will be resolved in conformance with the requirements of the bid documents.
    
3. CONTRACT CLAIMS
   All claims by a vendor or contractor relating to performance of a contract shall be submitted in writing to the Contracting Officer or designee for a written decision. The Authority, within 60 days, will decide the claim or notify the contractor of the date by which the decision will be made. The contractor may request a conference on the claim. Claims will be resolved in conformance with the requirements of the contract. The Contracting Officer's decision shall inform the vendor or contractor of their appeal rights.

Return to top

IX.   ASSISTANCE TO WOMEN OWNED BUSINESSES, SMALL AND MINORITY OWNED BUSINESSES

1. REQUIRED EFFORTS
   Consistent with Executive Orders 11625, 12138, and 12432, and Section 3 of the HUD Act of 1968, the Authority shall make efforts to ensure that small and minority-owned businesses, women-owned business enterprises, labor surplus area businesses, and individuals or firms located in or owned in substantial part by persons residing in the area of an Authority development are used when possible.
    
2. GOALS
   The Commission has established the goal of a 20% aggregate involvement of bona-fide minority-owned businesses and women-owned business enterprises in construction contracts and procurement activities. The Authority staff will provide documentation of the outreach efforts to meet the goal in the file for each contract procurement.
    
3. OUTREACH
   The Commission's goal is that contractors and vendors doing business with the Housing Authority reflect the diversity of the residents. For each procurement, maximum outreach will be made into the women and minority business community. When appropriate, proposal evaluations will provide additional consideration for offerors providing a higher level of women or minority owned business participation or a higher level of resident employment.

Return to top

X.   ETHICS IN PUBLIC CONTRACTING

The Authority shall adhere to the following code of conduct, consistent with applicable State or local law:

1. CONFLICT OF INTEREST
   No employee, officer or agent of this Authority shall participate directly or indirectly in the selection or in the award or administration of any procurement 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;
       
   2. His/her relative (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);
       
   3. His/her partner; or,
       
   4. An organization which employs, is negotiating to employ, or has an arrangement concerning prospective employment of any of the above.
   
    
2. GRATUITIES, KICKBACKS, AND USE OF CONFIDENTIAL INFORMATION
   Authority officers, employees or agents shall not solicit or accept gratuities, favors, or anything of monetary value from vendors or contractors, potential contractors, or parties to subcontracts, and shall not knowingly use confidential information for actual or anticipated personal gain.
    
3. PROHIBITION AGAINST CONTINGENT FEES
   Vendors or contractors shall not retain a person to solicit or secure an Authority contract for a commission, percentage, brokerage, or contingent fee, except for bona fide employees or bona fide established commercial selling agencies.

Return to top

XI.   REFERENCE DOCUMENTS

• 24 CFR 85.36 - Procurement
  Website: http://www.access.gpo.gov/nara/cfr/waisidx_00/24cfr85_00.html
   
• 24 CFR 135 - Contracting Opportunities for Project Area Businesses
  Website: http://www.access.gpo.gov/nara/cfr/waisidx_00/24cfr135_00.html
   
• 24 CFR 941 - Public Housing Development for Public Housing Agencies
  Website: http://www.access.gpo.gov/nara/cfr/waisidx_00/24cfr941_00.html
   
• 24 CFR 963 - Contracting with Resident Owned Businesses
  Website: http://www.access.gpo.gov/nara/cfr/waisidx_00/24cfr963_00.html
   
• HUD Handbook 7460.8 - Procurement Handbook for Public Housing Agencies
  Website: http://www.hud.gov/pih/publications/7460-8h/7460-8h.html
   
• HUD's Annual Contributions Contract
  Website: http://www.hud.gov/pih/ffmd/finmanagement_faq.html
  http://www.hudclips.org/sub_nonhud/cgi/pdf/22829a.pdf
  Download PDF Reader
   
• State of California Public Contract Code
  Website: http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=pcc&codebody=&hits=20

Return to top

Contact Us•Legal•Links•Site Index