U.S. Department of Housing and Urban Development

> Office of Housing

Special Attention of: **Notice** H-99-29 (HUD)

All Directors of Housing Issued: 10/22/99

All Multifamily Housing Hubs Expires: 10/31/2000

All Homeownership Centers

All Program Centers Cross References:

All Housing Contract Specialists

**SUBJECT: FUNDING PROCEDURES APPLICABLE TO FHA-FIELD OFFICE
PROCUREMENTS**

I. [INTRODUCTION]{.underline}

This Notice sets forth procedures for Headquarters and Field Office
staff for the processing of funds in support of Field Office procurement
activities procured with FHA insured funds. Generally, these funds are
used to supplement or replace professional disciplines required for the
underwriting and review of housing program activities. These procedures
cover the funding of procurement activities performed under the Single
Family and Multifamily housing development and management functions.
There are four (4) goals that are applicable to this Notice. They are:
(1) to provide uniform procedures for funding Field Office procurement
activities from the request of funds by the Field Office to the
disbursement by Headquarters , (2) to assure internal controls are in
place at all organizational levels of the funding process, and (3) to
fund the Field Office procurements and provide for the orderly close out
of the procurement activity, and (4) to provide for the orderly close
out of the procurement activity.

II\. [EXCLUSIONS:]{.underline}

The following housing program procurement activities are not covered by
this Notice:

A. Salaries and Expenses - Generally in Housing these expenses are
associated with personal benefits, travel, salaries and administrative
travel expenses.

B. Property Disposition - Funding for actions related to HUD-acquired
properties.

C. Non-FHA Housing Program Funding (e.g. Section 8, Rent Supplement and
Section 202/811, etc.).

**HQR:Distribution:** W-3-1, R-1, R-2, R-3-1(H)(RC),R-3-2, R-3-3, R-6,
R-6-2, R-7, R-7-2, R-8

III\. [DEFINITIONS OF TERMS USED IN NOTICE]{.underline}:

A. Administration Service Centers (ASC)-the centralized operations for
administrative services.

B. Cash Management Insurance Section (CMIS)-the Headquarters FHA
accounting operation responsible for the disbursement of FHA funds under
these procedures.

C. CCARS-the FHA cash management system used to disburse funds for FHA
procurement activities.

D. FCO-the Field Office component of the Headquarters Office of
Procurements and Contracts, (OPC).

E. Fort Worth Accounting Center (FWAC)-the accounting center responsible
for the reservation, obligation and disbursement of funds for non FHA
housing programs.

F. Fund Assignments (form HUD-185)-the standard form used to assign
funds to the Field Office by Headquarters. Generally, the fund
assignment form is used to provide funds to the HOCs and Hubs.

G. Headquarters (HQ)-all HUD offices located in Washington, DC with the
exception of the Washington, DC multifamily program center office.

H. Homeownership Centers (HOC)-the single family housing Field Office
component.

I. Hub-the multifamily housing Field Office component.

J. HUD Procurement System (HPS)-system used to track procurement plans
and workload in OPC.

K. HUDCAPS-The Departmental accounting system.

L. Office of Procurement and Contracts (OPC)-the office in Headquarters
responsible for the establishment of national procurement policy.

M. Program Accounting System/Line of Credit Control System
(PAS/LOCCS)-systems used to record/process accounting activities
including reservations, obligations and disbursements

N. Program- Center-the multifamily Field Office subordinate to the MF
Hub.

O. Prompt Pay Provisions-requires the department to pay vendors within a
prescribed time period or face penalties. Information concerning the
Prompt Payment Act as related to the responsibilities of the GTR/GTM can
be found in Handbook 1900.29 CHG-01, Prompt Payment Policy, dated
9/30/94 as well as Handbook 2210.3.

P. Real Estate Owned (REO)-a single family/multifamily program in the
Field Office.

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IV\. [ORGANIZATION OF NOTICE]{.underline}

This Notice is divided into seven major sections and provides detailed
instructions for the processing of procurement activities using FHA
funds. These sections provide general instructions for all parties
involved in the procurement funding process. The procedures describe the
request of funds, the control of funds, accounting procedures required
for the use of funds and the procedures for closing out procurement
activity. The procedures in this Notice apply only to procurement
actions awarded through the Field Contracting Operations (FCO) Division
in support of the Housing programs in the Field Offices. The list of
approved procurement activities are shown in Attachment I.

The major sections are as follows:

· Role and Responsibilities of the Government Technical Representative
(GTR)/Government Technical Monitor (GTM)

· Responsibilities of Field Contracting Operations

· Responsibilities of the Procurement Management Division

· Funding Requirements (Request and approval of funds)

· Fund Assignment Process

· Accounting System Requirements

· Monitoring and Control

· Closing Out of Procurement Activity

A. [GTR/GTM Responsibilities]{.underline}

The goal of contract administration is to ensure that the contract is
performed, as written, by both the contractor and the Government.
Administration of a contract requires the Government Technical
Representative to actively and closely monitor the contractor and to
take prompt and affirmative action to correct any problems.

The Government Technical Representative (GTR) is the departmental
official who is responsible for the technical direction and evaluation
of the contractor\'s performance. Detailed information concerning the
role of the GTR/GTM in contract administration can be found in Handbook
2210.3 Rev 8, Chapter 11. In addition, since payments for services
obtained under these contracting procedures are governed by the
requirements of the Prompt Payment Act, it is critical that the GTR/GTM
comply With HUD\'s voucher/invoice processing time frames. Failure to
timely process vendor invoices can cause the Department to incur late
payment interest penalties, and thus, incur charges. Information
concerning the Prompt Payment Act as related to the responsibilities of
the GTR/GTM can be found in Handbook 1900.29 CHG-01, Prompt Payment
Policy, dated 9/30/94 as well as Handbook 2210.3 REV 8 referenced above.

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B. [FIELD CONTRACTING OPERATIONS RESPONSIBILITIES]{.underline}

The FCO is responsible for the award and administration of contracts and
purchase orders. Detailed information regarding the role of the FCO in
contract administration can be found in Handbook 2210.3 Rev. 8, Chapters
11 and 12. In addition, see page 9 of this Notice, for the FCO fund
control responsibilities.

C. [OFFICE OF HOUSING PROCUREMENT MANAGEMENT DIVISION]{.underline}

The Procurement Management Division provides overall policy guidance and
direction on all procurement related activities in Housing: 1) preparing
the Annual Performance Plan with input from the Offices of the Deputy
Assistant Secretaries, FHA Comptroller, Office of Insured Health Care
Facilities, and Staff of Government Sponsored Enterprises; 2) serves as
the GTR for all of Headquarters contract actions; and 3) monitors the
progress of the procurement actions against the procurement plan. This
division also serves as the primary point of contact with the Chief
Procurement Officer staff and for contract monitoring and oversight.

D. [FUNDING REQUIREMENTS FOR HOUSING PROGRAMS]{.underline}

1\. [Funding Requirements for Multifamily Programs]{.underline}

> Funding requirements for Multifamily Programs begin with procurement
> planning and include management of fund assignments and
> sub-assignments and the reservation, obligation and disbursement of
> funds. This section addresses funding responsibilities of
> Headquarters, Hubs and Program Centers as they relate to procurement
> planning and the management of fund assignments and sub-assignments.
> Later sections address the reservation, obligation and disbursement of
> funds.

a\. [Procedure for Requesting, Funds]{.underline}

This Section outlines procedures for requesting funds for FHA Field
Office multifamily procurement activities. Headquarters cannot allocate
funds on a geographical formula for the various FHA procurement activity
categories since the contract support is based on needs at the Program
Center or Hub level. For this reason, the Hubs are required to request
funding on a regular basis based on their projected needs. As part of
the procurement planning process, during the fourth quarter of the
fiscal year, Headquarters will issue a call to the Hubs. This call
signifies the formal requirement for each Hub to prepare and submit to
the Multifamily DAS its projected funding requirements for all FHA
contract activity for the Hub and all of its Program Centers for the
upcoming fiscal year. Once approved by Headquarters, these projected
funding requirements will form the basis of the funding level proposed
in the annual procurement planning process. The call will identify valid
activity categories and codes for the upcoming fiscal year (see
Attachment I). Supplemental funds can also be requested during the

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fiscal year. Although the call may specify particular formatting
requirements, the minimum reporting requirement includes the following
information for each category of activity: Funds issued to date; current
fiscal year usage to date; additional funds required for current fiscal
year; projected need for each quarter of the upcoming fiscal year.

b\. [Hub Responsibilities to Subordinate Field Offices - Fund Requests
From Hubs and Multifamily Program Centers]{.underline}

As part of the procurement planning process, it is the responsibility of
each Hub to determine the funding needs of its Program Centers.
Specifically, it is the responsibility of the Housing Contract Services
Specialist to develop and maintain the Multifamily Hub procurement plan.
This responsibility includes verifying contract needs by category,
determining the level of contract funding for which approval is to be
sought, aggregating the Program Center requests and submitting the
request of the Hub to Headquarters. Although the assessment of Program
Center contract activity needs by the Hubs may be an ongoing activity,
at a minimum, it will be accomplished once a year during the fourth
quarter in response to the call issued by Headquarters.

It is the responsibility of the Housing Contract Services Specialist to
coordinate with the Multifamily Program Centers and develop the response
to the annual call for submission to Headquarters of the projected
annual contracting needs and justification for the program areas.
Although the call may specify particular formatting and information
requirements, the minimum reporting requirement includes the following
information for each category of activity.

o [Funds issued to date]{.underline}. Include total amount assigned.

o [Current fiscal year usage to date]{.underline}. Include all reserved
and/or obligated amounts whether or not they have been recorded in the
accounting system.

o [Additional funds required for current fiscal year]{.underline}.
Include increases required for new orders/contracts; show in parentheses
decreases for orders/contracts with surplus obligations.

o [Projected need for each quarter of the upcoming fiscal
year]{.underline}

\(1\) [Preparation of Projected Needs and the Support
Justification]{.underline}

A special justification is required for needs projected for the upcoming
fiscal year which exceed past year usage by more than approximately 15%.
In addition to the 15% justification threshold, Program Centers should
provide a description of major activity shifts within each reporting
category.

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It is the responsibility of the Multifamily Program Centers to determine
their contract funding needs as early and as accurately as possible and
relate them to the Housing Contract Services Specialist in the Hub.

\(2\) [End of Fiscal Year Procedures]{.underline}

Hub staff should keep in mind when estimating contracting needs that all
assigned funds for which an order/contract have not been awarded
(obligated) expire at the end of each fiscal year. **Funds [that have
not been obligated will not carryover to the next fiscal
year]{.underline}. [Once funds have been obligated on one procurement
action, these same funds cannot be deobligated and obligated on another
action in a different fiscal year.]{.underline}** However, undisbursed
obligations in the accounting system will be available in the next
fiscal year and will not need to be reassigned.

\(3\) [Other Funding Requests]{.underline}

Unplanned requests for funding may be made of the Hub by the Program
Centers. In the event funds are not available from the HUB reserve, the
Hub may submit to Headquarters a special request accompanied by the
appropriate justification and documentation. The request should be
submitted to the DAS for Multifamily Programs in Headquarters and should
contain documentation of the need and justification for the requested
increase. A copy of this request should be sent to the Headquarters
point of contact for FHA contracts. It is the responsibility of this
person to review and coordinate the request with the Funding Control
Division.

2\. [Funding Requirements For Single Family FHA
Procurements]{.underline}

a\. This section pertains to the funding related responsibilities for
Headquarters and HOC staffs related to Field Office procurement
activity. These responsibilities include the assignment, reservation,
obligation and payment (disbursement) of funds for Field Office
FHA-procurement activities.

The HOC Directors formulate the required funding for FHA-procurement
activities according to the published schedule or as needed for
individual procurement needs.

The HOC Directors submit request for funding of FHA-contract activities
to the Headquarters Deputy Assistant Secretary for Single Family.

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Upon review and approval, the Headquarters Deputy Assistant Secretary
for Single Family transmits the request for FHA-contracting funds to the
Headquarters, Funding Control Division.

Housing Funding Control prepares assignment of FHA-Contract Funds (form
HUD-185), enters transaction into information system and notifies
receiving Field Office Director of assignment of FHA-contract funds.

b\. Assistant Secretary for Housing - FHA Commissioner or designee
approves assignment of fund for FHA-Contract Activity and returns the
approved form HUD-185 to Housing Funding Control which will enter the
transaction into the appropriate system and notify the appropriate
program administrator.

c\. Field Office Responsibilities - Field Office Directors prepare
Request for Contract Services and reservation of FHA-Contract funds and
transmit it to the appropriate HOC director for execution.

> The GTRs for ongoing contracts or assigned program staff for new
> procurement actions prepare Request for Contract Services for
> procurement activity (form HUD-720).
>
> Upon signature for availability of funds, the HOC Programs Operation
> Staff enters the reservation of FHA-Contract funds transaction.

d\. Field Office Directors transmit request for procurement actions to
Field Contracting Operations staff.

e\. Field Contracting Operations staff makes contract award and executes
contract documents.

f\. Upon execution of contract, Field Contracting Staff provides Field
Office program staff with conformed copies of executed contracts (SF-30,
SF-26 and OF-347 etc.), copies of Banking Information are provided to
Headquarters Comptroller staff to establish record in payment system and
link banking data to payment system.

g\. Designated staff in Field program offices, enter obligation of funds
for executed contract into the appropriate accounting system.

h\. Upon provision of services, contractor submits invoices to GTR for
action. If approved for payment, GTR transmits invoice to Office of
Comptroller, CMIS for payment.

i\. If a request for Contract Services is canceled, designated staff in
the Field program office shall reverse the amount of the applicable
reservation.

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E. [FUND ASSIGNMENT PROCESS]{.underline}

The assignment of funds for FHA-Field Office procurement activities are
made by the Funding Control Division in Headquarters, and are based on
approved requests for funds submitted by the Deputy Assistant
Secretaries for the appropriate housing program areas. Attachment I of
this Notice provides a list which defines the categories and the range
of activities where FHA funds may be used. The actions of the Congress
and the annual National Procurement Plan may place additional
limitations on the use of FHA funds for procurement activities. Any
request for funds must be approved by the appropriate housing program
Deputy Assistant Secretary before a fund assignment will be prepared by
the Funding Control Division. Submissions for the preparation of a fund
assignment must include the procurement activity category shown in
Attachment I, the appropriate accounting system codes and the housing
Field Office where the funds are to be assigned.

The fund assignment package will be prepared by the Funding Control
Division in Headquarters. The preparation process requires the
preparation of a fund assignment form (HUD-185), transmittal
instructions and the recordation of the fund assignment amounts in the
appropriate accounting system. Once the fund assignments are prepared,
they will be signed by the Assistant Secretary for Housing and validated
as to fund availability by the appropriate accounting office before the
fund assignment is transmitted to the Field Office. The Housing-FHA
Comptroller\'s Office will review the fund assignment to prevent
Anti-Deficiency Act issues and to ensure that the funds being assigned
are within the amounts provided on the appropriate Advice of Allotment.
Accordingly, the reservations, obligations and disbursements recorded in
the accounting system must not exceed the assigned amounts.

> The fund assignment and any instructions on the use of funds will be
> sent to the Hub or HOC directors for the appropriate housing program
> area. Appropriate staff should check the accounting system to make
> sure that the amounts shown on the fund assignment (form HUD-185) from
> Headquarters agree with the amount shown in the system and that the
> proper accounting codes were used on the fund assignment. Any
> questions on the fund assignments should be directed to the Funding
> Control Division in Headquarters.
>
> The Housing Contract Services Specialist has been designated by
> multifamily as the coordinator for procurement activities in the Hub.
> The HOC Director is the point of contact for FHA Single Family
> procurement activities.

1\. [The Option to Prepare Sub-Assignments to Field Offices within their
Jurisdiction]{.underline}

When desired, funds may be sub-assigned to a lower organizational level.
An example would be the sub-assignment of funds from the Multifamily Hub
to the Multifamily Program Center. If a sub-assignment is prepared, the
Hub Director must sign the form HUD-185.1 and have the subassignment
validated by indicating that funds are available in the appropriate
accounting system. Accordingly, any reservation, obligation or
disbursement may not exceed the amount shown on the sub-assignment form
HUD-185.1. The sub-assignment is communicated by the applicable form
HUD-185.1 transmitted to the Field

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Office manager. The HUD-185.1 is prepared by the Housing Contract
Services Specialist.

Should a multifamily Hub choose to control these funds at the Program
Center level for the activity categories listed on Attachment I, the
following guidance is provided:

a\. Sub-assignments form (HUD-185.1s) for each category of funds should
show the office number as part of the sub-assignment number.

b\. Sub-assignments must show any accounting system codes which are used
to record and track procurement activity in the accounting systems.

c\. Sub-assignments must include the appropriate Appropriation Account
number. The appropriation account number is used to record and track the
use of procurement funds through the departmental systems.

2\. [Reservation of Funds]{.underline}

The reservation of funds for each procurement contract will be initiated
by completing the \"Request for Contract Services,\" form HUD-720
(11/98). Procurement policies and procedures can be found in Handbook
2210.3, REV 8. Housing will prepare the HUD-720 and send the form to the
Field Contracting Operations staff for review/action. Housing will
prepare the form HUD720 in consultation with the FCO. The Housing staff
should review the status of funds in the accounting system to make sure
that funds are available at the appropriate organizational level to
allow the recordation of the reservation. The Housing Contract Services
Specialist or the designated housing employee will enter the reservation
amount in the accounting system by the appropriate accounting code. The
Housing staff will forward the form HUD-720 to the FCO to begin the
procurement solicitation for services. The form HUD-720 must have Block
17 completed before forwarding the form to the FCO. (See Attachment II
for further instructions on completing this form.)

3\. [Obligation of Funds]{.underline}

All obligation documents must include the unique reservation number and
the accounting information needed to identify the activity in the
accounting system, such as the title of the contracting activity and
program accounting code. Generally, the contracting activity category
and the program accounting code are shown on the fund assignment (form
HUD-185) from Headquarters. The Field Contracting Operations must
reference the appropriate reservation number(s) and the amounts to be
obligated in the Accounting and Appropriation Data block of the
obligating document. The obligating amount can not exceed the total
amount reserved.

In order to fully process an obligation, the FCO must obtain and provide
to Housing field staff the form HUD-1199 which contains vendor\'s
banking information necessary for payment. The form HUD-1199 is sent to
CMIS (See page 11).

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4\. [Field Contracting Responsibilities]{.underline}

The FCO is responsible for the origination and timely forwarding to
Field Program staff of the required obligating documents. Numerous
procurement documents such as contracts, purchase orders, delivery
orders and task orders will be used as obligating documents. The FCO
will also be responsible for assigning the contract number.

All obligation documents must include the accounting information needed
to identify the activity such as the activity title and program
accounting code.

5\. [GTR/GTM Responsibilities]{.underline}

The most significant fund-related Field Office GTR/GTM activity is the
approval for the contractor\'s invoice submitted for payment of the
services rendered. Because payments for these services are under the
provisions of the prompt Payment Act, HUD is required by law to pay an
interest penalty to the contractor if the invoice is not paid within
thirty (30) days after approval. The contractor must be notified within
seven (7) days of receipt of the invoice of any problem with the
invoice. Once resolved, the vendor must be advised of the new invoice
receipt date and the reason through written notification by the Field
Office. The invoice approval date represents the acceptance of the
services which commences the start of the prompt pay period. The
approval of the invoice by the GTR/GTM serves as evidence that the work
is completed.

F. [ACCOUNTING SYSTEM REQUIREMENTS]{.underline}

All fund assignment reservation, obligation, and disbursement actions
will be accounted for in the appropriate accounting system in accordance
with outstanding instructions and the Funding Control Handbook, 7400.10.
It is the responsibility of the single family and multifamily staff to
record all financial transactions in the appropriate accounting system.
The obligation of funds will be via the appropriate procurement
documents (i.e. Contracts, Delivery Orders or Purchase Orders).

1\. [Payments (Disbursements) of Approved Procurement
Actions]{.underline}

a\. GTR/GTM Responsibilities

Disbursements for these orders will be made by Headquarters
Comptroller\'s staff (CMIS). Consequently, all invoices must be sent to
the Headquarters Comptroller\'s staff. Disbursements will be made using
the (form HUD-94210-F) Invoice Approval for Contract/Purchase Order (See
Attachment III). Form HUD-94210-F is prepared by the GTR and provided to
the Housing-FHA Comptroller\'s staff (CMIS). In addition, the invoice
must reference the invoice number in the block under the voucher number.
The GTR/GTM should ensure that sufficient unliquidating (undisbursed)
obligations are available for disbursement in the accounting system
prior to forwarding the invoice to CMIS. Once the form HUD-94210-F is
prepared, the GTR shall approve the invoice and submit the original
invoice and one copy of the invoice to CMIS in

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Headquarters for payment. The GTR\'s submission of the Invoice Approval
for Contract/Purchase Order (form HUD-94210-F) to CMIS constitutes the
acceptance of the work performed by the contractor for which payment is
being requested.

b\. CMIS Responsibilities

Payments (disbursements) must not exceed the amounts obligated in the
accounting system for the contract being paid and the various orders
attached to the core contract. CMIS verifies that sufficient funds are
obligated in the accounting system to make payment. If sufficient funds
are available, CMIS makes the payment and enters the payment amount
(disbursement) into the accounting payment system. If funds are not
available, the (form HUD-94210-F) will be returned to the originating
Field Office without payment being made and-indicating that there are
insufficient funds. recorded in the accounting system to make the
payment. The program accounting code, the contract number and the
appropriation account code should always be shown on the form
HUD-94210-F.

Shown below are the required functional requirements for the processing
of invoice approval form HUD-94210-F.

a\. All invoice approvals are due in the Headquarters Comptroller\'s
staff CMIS from the HOCs/Hubs prior to prompt payment discount date or
no later than the 7th day after the date that the deliverable was
accepted by HUD. The mailing address for all payment vouchers and form
HUD-1199s is as follows:

Department of Housing and Urban Development

Cash Management and Investment Staff

PO Box 44815

Washington, DC 20026

b\. Multiple invoices/bills under the same invoice approval will not be
accepted unless all the invoices were accepted on the same date and all
work performed under the same contract or purchase order.

c\. All invoice approval information should be typed or printed clearly,
except where a signature is required.

d\. The payee\'s name and taxpayer identification must appear on the
invoice approval as it appears on the contract or purchase order.

e\. An original of the invoice approval shall be provided by the GTR to
CMIS.

f\. Reference should always be made to purchase, delivery, task and
contract number when completing the invoice approval.

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G. [MONITORING AND CONTROL]{.underline}

> This Section provides guidelines for controlling and monitoring
> assignments, sub-assignments, reservations, obligations and
> disbursements of contract funding (including purchase orders/task
> orders/delivery orders/contracts). This section also provides an
> overview of the responsibilities and procedures for the required
> controls.
>
> 1\. [Headquarters]{.underline}

Headquarters Housing Funding Control staff is responsible for the
control of budgeted funds set aside for FHA Field Office procurement
support services and will monitor the utilization of funds through
reports generated by the accounting system and will maintain available
balances at all levels (National, Field Office and by contract). Housing
Funding Control staff will oversee the Housing offices and Field Offices
with regard to the maintenance of funding controls applicable to the
contracting activities. In addition, CMIS has the responsibility for
reconciling cash disbursements or account balances beginning at the
funding level for disbursements for each program, by Field Office, by
using their general ledger, accounting reports, and the SF-224 reports.,
All SF-224 cash activity is reconciled to Treasury on a monthly basis.

2\. [CMIS Requirements]{.underline}

CMIS will reconcile all disbursements with Treasury and provide the
accountants with all necessary accounting reports for recording
financial activities in the FHA General Ledger.

3\. [Field Offices]{.underline}

The GTR is responsible for the control of sub-assigned funds provided
for contract support services. This control will be exercised through
the monitoring of reports generated by the PAS plus the maintenance of
fund control logs by appropriate Housing staff Such fund control logs
will provide an effective tracking system designed to provide the
immediate status of funds.

Each HUB, HOC and Program Center within the field offices must maintain
a system for recording sub-assigned funds, and for tracking reservations
/obligations and the remaining balances. These offices are encouraged to
utilize the PAS reports for Status of Funds Report (by Regions - CFCA).
The Field Office is responsible for regularly monitoring unliquidated
obligations to identify excess funding. The Field Office will advise the
FCO in writing of any amounts of excess unliquidated obligations which
may be deobligated.

4\. [Procedures for the Closeout of the Contracting
Activity]{.underline}

a\. The procedures below are described in detail in HUD Handbook 2210.3,
pages 12-40.

o Closeout Documentation. The GTR shall provide to the Contracting
Officer all documentation related to the performance of the contract

> 12
>
> that the GTR has not already been provided during the course of the
> contract. Documentation that does not appropriately belong in the
> official contract file (e.g., notes of phone conversations, copies of
> documents previously sent to the Contracting Officer, etc.) should not
> be sent to the Contracting Officer. Normally, the Contracting Officer
> will specify the documentation he/she needs. Such documentation may
> include:

\(1\) Final performance evaluation (see paragraph 12-15, HUD Handbook
2210.3 REV 8)

\(2\) Payment registers;

\(3\) Deliverables;

\(4\) Copies of reports, inspection results and acceptability
determinations;

\(5\) Predecisional recommendations regarding payment, key personnel,
disputes, etc.

o Closeout. Once the Contracting Officer received the final performance
evaluation, he/she shall promptly take all administrative actions needed
to closeout the contract. These are described in detail at FAR Subpart
4.8.

o Final Payment. Final Payment shall be made promptly once the
Contracting Officer has determined that all contract requirements have
been met and that the final payment amount is proper. The Contracting
Officer must approve requests for final payments before they are
processed.

b\. The Accounting staff will identify contracts with six months of
inactivity (e.g. no disbursements) and contact the GTR and the
Contracting Office of these contracts on a quarterly basis. The GTR is
responsible for providing a response within 60 days to the Contracting
Officer explaining the reason for the inactivity or initiating the
closeout process.

c\. The GTR should prepare a HUD 720 decreasing the reservation by the
remaining amount indicated and agreed to by the Contracting Officer. The
amount to be deobligated must be entered into the appropriate accounting
system.

d\. Headquarters will conduct periodic reviews of the accounting process
for FHA funded contracts.

William C. Apgar

> Assistant Secretary for Housing -

Federal Housing Commissioner

Attachments

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