**Chapter 2. Procurement Authority and Administration\
of the Procurement Function**

**2.1 General**

This chapter discusses the authority for procurement activity and
delegation of the administration of the procurement function.

**2.2 The Procurement Policy**

A.  PHAs are required to establish and follow a written procurement
    policy that is consistent with **24 CFR 85.36**. A sample
    procurement policy may be found at **Appendix 1**. The policy need
    not contain detailed working-level procedures, but should require
    establishment of such procedures to carry out the policy. Some PHAs
    prefer to combine the policy and procedures into a single
    publication for the convenience of staff.

B.  While it is not required that the procurement policy be submitted to
    HUD for approval, PHAs that wish to be exempt from prior HUD
    approval of certain individual procurement actions can have their
    procurement policy reviewed/approved by HUD, as discussed in
    Chapter 12. (PHAs can also self-certify that their procurement
    system meets all HUD requirements, which would also exempt them from
    certain HUD review requirements. See Chapter 12).

**2.3 Delegation of Authority**

A. Generally, the procurement policy delegates responsibility for
procurement functions to the Executive Director, with authority to
assign all or a portion of that responsibility to positions or
individuals based on the organization and staffing of the PHA.

B. A person with authority for procurement activities is referred to as
the Contracting Officer when he/she performs that function, regardless
of any other job or position title he/she may have.

C.  PHAs shall establish policies for the delegations of procurement
    authority (e.g., to the Executive Director). These policies should
    be included in the PHAs' written procurement policy. Delegations of
    procurement authority should clearly state the limits of the
    authority delegated in terms of dollar value of individual
    obligations the person may make and any other limits (e.g., types of
    contracts the individual may award such as small purchases).
    Delegations should also state whether the recipient may further
    redelegate any of the authority and, if so, how much.

    4.  **Responsibility of the Contracting Officer**

R**egardless of the authority delegated, it is the responsibility of the
Contracting Officer to:**

> A. Use sound judgment in accomplishing the procurement activities of
> the PHA;

B.  Ensure that bidders and contractors receive fair, impartial, and
    equitable treatment;

C.  Ensure that contract actions comply with all applicable Federal,
    state and local laws and rules and with the PHA's approved
    procurement policy; and

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D.  Seek the best value and greatest overall benefit for the PHA in
    response to the needs desired.

**2.5 Contracting Officer Signature/Obligation of Funds**

Each contract or purchase action (e.g., new contract, modification,
interagency agreement, purchase order, etc.) that obligates the PHA to
pay a contractor or vendor must be signed or otherwise authorized by an
individual to whom the PHA has expressly delegated the authority to make
such an obligation.

The signature of the Contracting Officer on PHA contracts is a legal
commitment and requires continuing performance by the PHA under the
terms and conditions of the contract. Performance includes such duties
as monitoring contractor performance and acceptance or rejection of
contractors' requests for changes in performance, specifications, or
price.

Caution: If an individual is not an authorized Contracting Officer, that
individual must not bind the PHA by making an implied contract such as
by making a promise or stating an intent to purchase, either orally or
in writing. Under the laws of agency and apparent authority, the PHA may
be liable for, or bound by, the acts of a PHA employee, if such person
(who is not a Contracting Office) appears to an offeror to have been
given authority by the PHA. Therefore, all actions that could be
misinterpreted as committing the PHA to purchase should be clarified
with a statement such as, "this request for price quotation is not an
offer to buy and should not be assumed as such."

**2.6 Staffing and Training**

PHAs ensure that their procurement employees have training and
experience commensurate with the requirements of their duties. PHAs
should develop training and experience standards for their procurement
positions and periodically review their procurement operations to ensure
that procurement personnel meet those standards. PHAs should consider
any changes in the procurement environment (e.g., new laws, regulations,
market conditions, or buying needs and practices of the PHA) when
assessing the qualifications of personnel and the need for additional
training.