+-----------+--------------------------------+-----+------------------+
| **Guide   |                                |     |                  |
| for       |                                |     |                  |
| Review of |                                |     |                  |
| Proc      |                                |     |                  |
| urement** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name of |                                |     |                  |
| Part      |                                |     |                  |
| icipating |                                |     |                  |
| Jur       |                                |     |                  |
| isdiction |                                |     |                  |
| (PJ):**   |                                |     |                  |
|           |                                |     |                  |
|           |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Staff   |                                |     |                  |
| Con       |                                |     |                  |
| sulted:** |                                |     |                  |
|           |                                |     |                  |
| **     ** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+
| **Name(s) |                                | **D |                  |
| of        |                                | ate |                  |
| Revie     |                                | :** |                  |
| wer(s):** |                                |     |                  |
+-----------+--------------------------------+-----+------------------+

**NOTE:** All questions that address requirements contain the citation
for the source of the requirement (statute, regulation, NOFA, or grant
agreement). If the requirement is not met, HUD must make a finding of
noncompliance. All other questions (questions that do not contain the
citation for the requirement) do not address requirements, but are
included to assist the reviewer in understanding the participant\'s
program more fully and/or to identify issues that, if not properly
addressed, could result in deficient performance. Negative conclusions
to these questions may result in a \"concern\" being raised, but not a
\"**finding**.\"

**[Instructions]{.underline}:** This Exhibit is designed to assess the
PJ's compliance with applicable procurement requirements. It is divided
into eight sections: Selected Sample; Small Purchases; Competitive
Sealed Bids; Competitive Proposals; Noncompetitive Proposals; General
Provisions/Procedures; Bonding and Insurance; and Contracting with Small
and Minority Firms, Women's Business Enterprises and Labor Surplus Area
Firms. Following the guidance in Section 7-4 of the introduction to this
Chapter, the reviewer should randomly select a sample of procurement
transactions undertaken by the PJ, pull the procurement files related to
the selected-transactions and use the files to determine PJ compliance
with the Exhibit questions. If the PJ\'s accounting system includes
information on contracts, purchase orders, etc., related to the HOME
program, such a system can be a convenient starting point for selecting
procurement transactions to review. The HOME regulatory citation for the
uniform administrative requirements is located in 24 CFR 92.505.

**[Questions:]{.underline}**

A. [Selected sample]{.underline}

1\.

  ------------------------------------------------------------------------------
  Provide the following                                          
  information for the                                            
  selected sample of                                             
  procurement                                                    
  transactions:                                                  
  ---------------------- ------------ ------------- ------------ ---------------
  **Contractor**         **Amount     **Amount      **Amount     **Procurement
                         Budgeted**   Obligated**   Expended**   Method\***

  1\.                                                                 

  2\.                                                                 

  3\.                                                                 

  4\.                                                                 

  5\.                                                                 
  ------------------------------------------------------------------------------

\*Use the following numbers for these methods of procurement \[see 24
CFR 85.36(d)\]: (1) Small Purchase; (2) Sealed Bids; (3) Competitive
Proposals; and (4) Noncompetitive Proposals.

B. [SMALL PURCHASES]{.underline}

2\.

+------------------------------------------------------------+---------+
| a\. Did the PJ document an adequate number of price or     |         |
| rate quotations from qualified sources for procurements of |         |
| \$100,000 or less?                                         |         |
|                                                            |         |
| \[24 CFR 85.36(d)(1) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

+-----------------------------------------------------------------------+
| b\. Describe types of purchases and price or rate quotes received.    |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

C. [COMPETITIVE SEALED BIDS]{.underline}

3\.

+-----------------------------------------------------------------------+
| Summarize the PJ's competitive bid process.                           |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+

4\.

+------------------------------------------------------------+---------+
| Does the PJ receive at least two or more responsible bids  |         |
| for each procurement transaction? (NOTE: If the answer is  |         |
| "no," provide information in the "Basis for Conclusion"    |         |
| section below whether this is a systemic failure, i.e.,    |         |
| the PJ's system failed to work properly, or an isolated    |         |
| failure in some cases.)                                    |         |
|                                                            |         |
| \[24 CFR 85.36(d)(2)(i)(B) and 24 CFR 92.505(a)\]          |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

5\.

+------------------------------------------------------------+---------+
| Did the PJ's procurement lend itself to a firm, fixed      |         |
| price contract and was the selection of the successful     |         |
| bidder made principally on the basis of price?             |         |
|                                                            |         |
| \[24 CFR 85.36(d)(2)(i)(C) and 24 CFR 92.505(a)\]          |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

6\.

+------------------------------------------------------------+---------+
| Was the invitation for bids publicly advertised and were   |         |
| bids solicited from an adequate number of know suppliers,  |         |
| providing them sufficient time before the date set for     |         |
| opening the bids?                                          |         |
|                                                            |         |
| \[24 CFR 85.36(d)(2)(ii)(A) and 24 CFR 92.505(a)\]         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

7\.

+------------------------------------------------------------+---------+
| Do the IFBs, including specifications and pertinent        |         |
| attachments, clearly define the items or services needed   |         |
| in order for the bidders to properly respond?              |         |
|                                                            |         |
| \[24 CFR 85.36(d)(2)(ii)(B) and 24CFR 92.505(a)\]          |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

8\.

+------------------------------------------------------------+---------+
| Are bids opened publicly at the time and place stated in   |         |
| the IFBs?                                                  |         |
|                                                            |         |
| \[24 CFR 85.36(d)(2)(ii)(C) and 24 CFR 92.505(a)\].        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

9\.

+------------------------------------------------------------+---------+
| Are contracts awarded to the lowest responsive and         |         |
| responsible bidders?                                       |         |
|                                                            |         |
| \[24 CFR 85.36(d)(2)(ii)(D) and 24 CFR 92.505(a)\]         |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
| **     **                                                  |         |
+------------------------------------------------------------+---------+

D. [COMPETITIVE PROPOSALS]{.underline}

10\.

+------------------------------------------------------------+---------+
| Is the competitive proposal procurement method used only   |         |
| when conditions are not appropriate for the use of sealed  |         |
| bids?                                                      |         |
|                                                            |         |
| \[24 CFR 92.505(a); 24 CFR 85.36(d)(3)\]                   |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

11\.

+------------------------------------------------------------+---------+
| Do Requests For Proposal (RFPs) clearly and accurately     |         |
| state the technical requirements for the goods or services |         |
| to be procured?                                            |         |
|                                                            |         |
| \[24 CFR 85.36(c)(3)(i) and 24 CFR 92.505(a)\]             |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

12\.

+------------------------------------------------------------+---------+
| Are the proposals solicited from an adequate number of     |         |
| qualified sources, consistent with the nature and          |         |
| requirements of the procurement?                           |         |
|                                                            |         |
| \[24 CFR 85.36(d)(3)(ii) and 24 CFR 92.505(a)\]            |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

13\.

+------------------------------------------------------------+---------+
| Does the PJ publicize RFPs and honor reasonable requests   |         |
| by parties to compete to the maximum extent practicable?   |         |
|                                                            |         |
| \[24 CFR 85.36(d)(3)(i) and 24 CFR 92.505(a)\]             |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

14\.

+------------------------------------------------------------+---------+
| Do the RFPs identify all evaluation factors, including     |         |
| price or cost where required, and their relative           |         |
| importance?                                                |         |
|                                                            |         |
| \[24 CFR 85.36(d)(3)(i) and 24 CFR 92.505(a)\]             |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

15\.

+------------------------------------------------------------+---------+
| Does the PJ:                                               |         |
+------------------------------------------------------------+---------+
| a\. conduct technical evaluations of submitted proposals?  |         |
|                                                            |         |
| \[24 CFR 85.36(d)(3)(iii) and 24 CFR 92.505(a)\]           |         |
+------------------------------------------------------------+---------+

  ------------------------------------------------------------- ---------
  b\. determine responsible offerors from such evaluations?     

  ------------------------------------------------------------- ---------

+------------------------------------------------------------+---------+
| c\. make awards to the most responsive and responsible     |         |
| offerors whose proposals will be most advantageous to the  |         |
| PJ after price and other factors are considered?           |         |
|                                                            |         |
| \[24 CFR 85.36(b)(8); 24 CFR 85.36(d)(3)(iv) and 24 CFR    |         |
| 92.505(a)\]                                                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
+------------------------------------------------------------+---------+
|                                                            |         |
+------------------------------------------------------------+---------+

16\.

+----------------------------------------------------------+-----------+
| If proposals involving architectural/engineering         |           |
| professional services are evaluated with respect to      |           |
| factors other than price, can the PJ document the basis  |           |
| for negotiations of fair and reasonable compensation?    |           |
|                                                          |           |
| \[24 CFR 85.36(d)(3)(v) and 24 CFR 92.505(a)\]           |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

17\.

  ------------------------------------------------------------- ---------
  For procurement of architectural and engineering professional 
  services, does the PJ maintain a list of qualified offerors   
  who can respond to its RFPs?                                  

  **Describe Basis for Conclusion:**                            

                                                                
  ------------------------------------------------------------- ---------

E. [NONCOMPETITIVE PROPOSALS]{.underline}

18\.

+----------------------------------------------------------+-----------+
| If the PJ procured goods or services noncompetitively,   |           |
| do the procurement records document that other methods   |           |
| of procurement (small purchases, sealed bids or          |           |
| competitive proposals) were infeasible because the items |           |
| were available from a single source; OR a public         |           |
| exigency or emergency was of such urgency to not permit  |           |
| a delay resulting from competitive solicitation; OR,     |           |
| after solicitation of a number of sources, competition   |           |
| is determined inadequate; OR approval was granted by     |           |
| HUD?                                                     |           |
|                                                          |           |
| \[24 CFR 85.36(d)(4) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

F. [GENERAL PROVISIONS/PROCEDURES]{.underline}

19\.

+------------------------------------------------------------+---------+
| Is the PJ ensuring that its awards are not made to any     |         |
| party excluded, disqualified, or otherwise ineligible      |         |
| (e.g., suspension, debarment, or limited denial of         |         |
| participation) for Federal Procurement or Non-Procurement  |         |
| Programs?                                                  |         |
|                                                            |         |
| \[24 CFR 92.350(a)\]                                       |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

20\.

+------------------------------------------------------------+---------+
| For the sample files reviewed, is there a rationale in the |         |
| file for:                                                  |         |
|                                                            |         |
| \[24 CFR 85.36(b)(9) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| a\. the selection of the method of procurement?            |         |
+------------------------------------------------------------+---------+

  ------------------------------------------------------------- ---------
  b\. the selection of contract type?                           

  ------------------------------------------------------------- ---------

  ------------------------------------------------------------- ---------
  c\. contractor selection or rejection?                        

  ------------------------------------------------------------- ---------

+------------------------------------------------------------+---------+
| d\. the basis for the cost or price of the contract?       |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

21\.

+------------------------------------------------------------+---------+
| Is contract pricing always based on a method other than    |         |
| the \"cost-plus-a-percentage-of-cost\" method?             |         |
|                                                            |         |
| \[24 CFR 85.36(f)(4) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

22\.

  ------------------------------------------------------------- ---------
  Are procurement procedures in place to ensure that:           

  a\. purchase orders and contracts are signed by an authorized 
  program official?                                             
  ------------------------------------------------------------- ---------

+------------------------------------------------------------+---------+
| b.  items delivered and paid for are consistent with the   |         |
|     items contained in the corresponding purchase order    |         |
|     and/or contract?                                       |         |
|                                                            |         |
|     \[24 CFR 85.36(b)(2) and 24 CFR 92.505(a)\]            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| c.  timely payment of vendors occurs, once requested and   |         |
|     once orders have been delivered, inspected, accepted   |         |
|     and payment of the vendor has been approved?           |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| d.  a cost or price analysis is performed in connection    |         |
|     with every procurement action, including contract      |         |
|     modifications?                                         |         |
|                                                            |         |
|     \[24 CFR 85.36(f)(1) and 24 CFR 92.505(a)\]            |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| e.  profit is negotiated as a separate element of price    |         |
|     where price competition is lacking or a cost analysis  |         |
|     is performed?                                          |         |
|                                                            |         |
|     \[24 CFR 85.36(f)(2) and 24CFR 92.505(a)\]             |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

23\.

+------------------------------------------------------------+---------+
| Are the contract provisions listed in 24 CFR 85.36(i)      |         |
| appropriately included in the HOME-assisted contracts?     |         |
|                                                            |         |
| \[24 CFR 85.36(i)\]                                        |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

24\.

+------------------------------------------------------------+---------+
| Does the PJ have a written code of conduct governing       |         |
| employees, officers or agents engaged in the award and     |         |
| administration of contracts supported by grant funds?      |         |
|                                                            |         |
| \[24 CFR 85.36(b)(3) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

25\.

+------------------------------------------------------------+---------+
| Does the PJ maintain a contract administration system      |         |
| which ensures that contractors perform in accordance with  |         |
| the terms, conditions, and specifications of their         |         |
| contracts or purchase orders?                              |         |
|                                                            |         |
| \[24 CFR 85.36(b)(2) and 24 CFR 92.505(a)\]                |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

26\.

+------------------------------------------------------------+---------+
| Does the written agreement between the PJ's and the State  |         |
| recipient and subrecipients include a provision to follow  |         |
| applicable procurement policies and procedures in the      |         |
| administration of their contracts and purchase orders?     |         |
|                                                            |         |
| \[24 CFR 92.504(c)(2)(iii)\]                               |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
|                                                            |         |
+------------------------------------------------------------+---------+

27\.

+----------------------------------------------------------+-----------+
| If the PJ uses prequalified lists of persons, firms, or  |           |
| products which are used in acquiring goods and services, |           |
| are the lists current and include enough qualified       |           |
| sources to ensure maximum open and free competition, and |           |
| does the PJ permit potential persons and firms to        |           |
| qualify during the solicitation period?                  |           |
|                                                          |           |
| \[24 CFR 85.36(c)(4) and 24 CFR 92.505(a)\]              |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

G. [BONDING AND INSURANCE]{.underline}

28\.

+----------------------------------------------------------+-----------+
| If contracts have been awarded for construction under    |           |
| the grant program(s), does the PJ:                       |           |
+----------------------------------------------------------+-----------+
| a\. follow its own requirements relating to bid          |           |
| guarantees, performance bonds and payment bonds for      |           |
| construction contracts or subcontracts valued at or      |           |
| below \$100,000?                                         |           |
|                                                          |           |
| \[24 CFR 85.36(h) and 24 CFR 92.505(a)\]                 |           |
+----------------------------------------------------------+-----------+

+----------------------------------------------------------+-----------+
| b.  meet the minimum Federal requirements for bid        |           |
|     guarantees, performance bonds and payment bonds for  |           |
|     construction contracts or subcontracts valued above  |           |
|     \$100,000?                                           |           |
|                                                          |           |
|     \[24 CFR 85.36(h)\]                                  |           |
+----------------------------------------------------------+-----------+
| **Describe Basis for Conclusion:**                       |           |
+----------------------------------------------------------+-----------+
|                                                          |           |
+----------------------------------------------------------+-----------+

H. [CONTRACTING WITH SMALL AND MINORITY FIRMS, WOMEN'S BUSINESS
ENTERPRISES AND LABOR SURPLUS AREA FIRMS]{.underline}

29\.

+------------------------------------------------------------+---------+
| Is the PJ taking affirmative steps to assure small,        |         |
| minority-owned and women-owned businesses are used when    |         |
| possible in grant funded contracts such as:                |         |
|                                                            |         |
| \[24 CFR 85.36(e)(iv) & (v) and 24 CFR 92.505(a)\]         |         |
+------------------------------------------------------------+---------+
| a.  including such businesses on solicitation lists        |         |
|     whenever they are potential sources?                   |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| b.  ensuring that such businesses, when identified, are    |         |
|     solicited whenever they are potential sources?         |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| c.  dividing procurement requirements, when economically   |         |
|     feasible, into smaller tasks or quantities to permit   |         |
|     maximum participation by such businesses?              |         |
+------------------------------------------------------------+---------+

+------------------------------------------------------------+---------+
| d.  requiring prime contractors when subcontracts are let, |         |
|     to take affirmative steps to select small,             |         |
|     minority-owned and women-owned businesses in grant     |         |
|     funded contracts?                                      |         |
+------------------------------------------------------------+---------+
| **Describe Basis for Conclusion:**                         |         |
|                                                            |         |
| **     **                                                  |         |
+------------------------------------------------------------+---------+

30\.

+-----------------------------------------------------------------------+
| If the PJ is not taking the steps identified in Question 29 above,    |
| list the actions the PJ is taking to take affirmative steps to assure |
| the use of small, minority-owned and women-owned businesses when      |
| possible.                                                             |
|                                                                       |
| \[24 CFR 85.36(e) and 24 CFR 92.505(a)\]                              |
+-----------------------------------------------------------------------+
| **Describe Basis for Conclusion:**                                    |
|                                                                       |
|                                                                       |
+-----------------------------------------------------------------------+