Introduction to Procurement for Public Housing Authorities

1. Unit 8 Introduction to Procurement for Public Housing Authorities Cooperative Purchasing, Intergovernmental Agreements and Joint Ventures

2. Learning Objectives • Identify alternatives to the four main procurement methods • Understand the basic process and requirements for entering into intergovernmental agreements • Understand the basic procurement requirements for joint venture partners

3. Cooperative Business Relationships • Per §85.36(b)(5), to foster greater economy and efficiency, PHAs are encouraged to enter into State and intergovernmental agreements for procurement or use of common goods and services. • Cooperative and interagency purchasing agreements often require less time and effort, and result in lower administrative costs.

4. Four Methods of Cooperative Purchasing • Contracting directly with a government agency to purchase their equipment/surplus. • Joining with another government agency to issue/award a competitive solicitation. • Buying from GSA Schedule 70, Information Technology, and Consolidated Schedule contracts containing IT Special Item Numbers (SINs) only. • Entering into a contract with a firm that has a competitively-solicited contract with a local government agency (Joinder or Piggy-backing)

5. Intergovernmental Agreements (“Piggy-backing”) • A PHA enters into a “cooperative agreement” with a government agency to acquire supplies or services previously procured by the government agency without having to issue a solicitation in the open market. • The PHA is subject to the good/services procured by the government entity. Therefore, the PHA must review the procurement to ensure it meets the PHA’s needs. • The PHA may then obtain the supplies or services at the same price, either directly from the vendor or through the government agency via a new “contract agreement.” • Payment can be made directly to the vendor or through the government agency.

6. Intergovernmental Agreements: Conditions of use • ONLY for “common supplies and services” of a routine natureat a PHA and government agency. • Before using this method, PHA should make a comparative Cost Analysis of the cost and availability of undertaking procurement in open market vs. with governmental entity. • The PHA must ensure the government agency procured the supplies/services in compliance with 24 CFR 85.36.

7. Joint Venture Partners • PHAs may contract with a joint venture partner, subsidiary or affiliate to provide: • Administrative or maintenance services, • Social or supportive services, or • Other services • PHAs must comply with 24 CFR 85.36 (i.e., full and open competition) when selecting a joint venture partner • PHAs must comply with Federal conflict of interest provisions (includes Section 19 of the Annual Contributions Contract and 24 CFR 85.36(b)(3)) • Additionally, all joint venture partners and the joint venture as a whole must comply with State and local procurement and conflict of interest requirements when acquiring supplies and services

8. Selecting a Joint Venture Partner • Request for Qualifications • Subject to negotiation of fair and reasonable price OR • Sole source solicitation, if • Proposed partner has and will make available substantial, unique, and tangible resources or other benefits not available to the PHA on the open market, or • A resident group or PHA subsidiary is willing and able to act as partner In both cases, PHA must document cost reasonableness and either unique qualifications or the ability of resident group or subsidiary to act as partner

9. Procurement Requirements for Joint Venture Partners • The Joint Venture Partner generally is not required to follow 24 CFR parts 84 or 85 • Unless the partner is a subsidiary, affiliate or identity-of-interest party of the PHA, in which case the partner must comply with 24 CFR parts 84 and 85, as applicable • A Joint Venture Partner may contract with an identity-of-interest party or a party specified in the partner’s bid response without further procurement if: • PHA demonstrates original competitive selection of partner clearly anticipated the later provision of such goods/services, • PHA takes steps to ensure no duplication of profit or expenses in compensation to all identity-of-interest parties, and • PHA demonstrates reasonableness based on market costs and standards and quality and timeliness of goods/services

10. Use of Debit & Credit Cards for Purchases • Not a procurement method! • An acceptable payment method for which a debit or credit card is used for eligible PHA costs • Typical uses: • Gasoline for maintenance and inspection vehicles • Office supplies • National supply and hardware stores • Allowed as a financial transaction for Micro Purchases and Small Purchases • Procurement Procedures must establish internal controls for use and monetary limit!

11. Remember… • Intergovernmental agreements are ONLY for “common supplies and services” of a routine nature. • The PHA must ensure the government agency procured the supplies/services in compliance with 24 CFR 85.36. • PHAs may contract with a joint venture partner but must comply with 24 CFR 85.36 and conflict of interest provisions. • For credit and debit cards, the PHA’s Procurement Procedures must establish internal controls for use and monetary limit!

12. References • 24 CFR 85.36(b)(5) • PHA Procurement Handbook7460.8 REV 2 - Chapter 14