Procurement

All contracts awarded where Historic Preservation Fund (HPF) assistance and the matching funds are used for payment must follow applicable State and Federal contracting procedures.

I. General Contracting Procedures and Provision

The following General Contracting Procedures and Provisions apply to all recipients of HPF funds regardless of the amount of grant funds received.

1. Code of Conduct--The grant recipient's officers, employees or agents shall neither solicit nor accept gratuities, favor or anything of monetary value from contractors, potential contractors or parties to subagreements arising as a result of the funding provided through the grant award. Furthermore, no employee, officer or agent of the grant recipient shall participate in selection, or in the award or administration of a contract supported by the grant funds if a conflict of interest would arise when: (1) the employee, officer, or agent; (2) any member of his immediate family; (3) his or her partner; or (4) an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for contract award.
   
   
2. Affirmative Action--Affirmative steps must be taken to assure that small, minority, and women's business enterprises are utilized when possible. Affirmative steps include the following:
   
   
   1. Including qualified small, minority and women's business enterprises on solicitation lists.
   2. Assuring that small and minority businesses are solicited whenever they are potential sources.
   3. When economically feasible, dividing total requirements into smaller tasks or quantities so as to permit maximum small and minority business participation.
   4. Where the requirement permits, establishing delivery schedules which will encourage participation by small and minority business.
   5. Using the services and assistance of the Small Business Administration, the Office of Minority Business Enterprise of the Department of Commerce, and the Community Services Administration as required.
   6. If any subcontracts are to be let, requiring the prime contractor to take the affirmative steps in 1-5 above.
   
   
3. Selection Procedures--All procurement transactions, without regard to method of procurement or dollar value of procurement, shall be conducted in a manner that provides maximum open and free competition. Procurement procedures shall not restrict or eliminate competition.
   
   
   1. Open and Free Competition
      Restrictive competition includes, but is not necessarily limited to:
      1. placing unreasonable requirements on firms in order for them to qualify to do business;
      2. non-competitive practices between firms;
      3. organizational conflicts of interest, and;
      4. unnecessary experience and bonding requirements.
      
      
   2. Solicitation of Offers
      Solicitation of Offers shall:
      1. Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description shall not contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "grand name or equal" description may be used to define the performance or other salient requirements of a procurement. The specific features of the named brand which must be met by offerors shall be clearly stated.
      2. Contract Award
         --Awards shall be made only to responsible contractors that possess that potential ability to perform successfully under the terms and conditions of a proposed procurement. Consideration shall be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

II. Procurement

In all procurement of goods and services under the terms of the subgrant agreement, it is important that sound reasons exist for acquisition of the goods or services and that fair and open selection of the vendor/contractor is conducted. The requirements of this chapter are consistent with Federal and State purchasing requirements and must be followed if costs for goods and services are to be counted as either part of the federal or the nonfederal matching share of the grant assisted project.

1. Small Purchases--For procurement of goods or services costing in aggregate less than $750.00, the subgrantee may purchase the item or service from any source available. However, in the interest of efficient use of grant funds, at least three (3) cost estimates should be obtained for the item. Documentation of the estimates should be included with the request for reimbursement supporting documentation submitted to the State Historic Preservation Officer.
   
   
2. Equipment Purchases--Any purchase of equipment costing $300.00 or more must first have written approval of the State Historic Preservation Officer. Requirements concerning the subgrantee's continued use of or disposition of equipment purchased with grant funds after the grant assisted activity is completed shall be detailed in the letter authorizing the acquisition of the item.
   
   
3. Professional Services--When accomplishment of the work outlined in the subgrant agreement necessitates the subgrantee retaining professional services, the following procedure shall be initiated and documentation shall be provided to the State Historic Preservation Office.
   
   
   1. Solicit qualified person(s)/firm(s) to carry out the proposed work. The subgrantee must publish in a major newspaper in general distribution within the area affected by the project the request for proposals. The notice must appear at least three (3) times in that publication or appear once in three separate papers, journals, trade publications, etc. Posting of the solicitation in public places is also encouraged.
   2. The subgrantee must allow a thirty (30) day period for response to the solicitation.
   3. A copy of the published advertisement and proof of payment for publication must be provided with the first request for reimbursement. (The cost of publishing the notice is an eligible expense of the grant assisted project.)
   4. The subgrantee shall establish a committee to evaluate the proposals received in accordance with the above. Proposals shall be evaluated on the basis of the offeror's past experience, performance on other projects, capacity to perform the work required under the terms of the subgrant agreement, familiarity with the type of problems that might be encountered in such projects, and the estimated cost.
   5. The request for proposals shall contain the deadline for submission of proposals, submission information (address to deliver or mail the proposal, etc.), a statement that federal funds will be involved in the project, a statement that Equal Employment Opportunity requirements must be met, time frame for completion of the work, clear statement of the scope of work, contract type, proposal contents required, and factors for award.
   
   
4. Types of Contract--The types of contracts which are allowable when Federal funds are involved include cost reimbursement contracts, firm fixed price contracts, fixed-price incentive contracts, or cost-plus-a-fixed-fee contracts. Other types of special contracts may be acceptable, depending upon the individual circumstances. However, cost-plus-a-percentage of cost and percentage-of-construction-cost contracts may not be used under any circumstances, and costs incurred under these types of contracts are unallowable. Should the subgrantee have any questions regarding contracting, the State Historic Preservation Office should be contacted. Copies of all contracts entered into under the subgrant must be provided to the State Historic Preservation Office with the first request for reimbursement.

III. Contract Pricing Prohibitions

Neither the cost-plus-a-percentage-of-cost nor the percentage-of-construction-cost method of contracting shall be used.

IV. Procurement Records

The subgrantee must provide the following documentation to the State Historic Preservation Office to support all procurement involving federal funds:

1. A copy of the solicitation;
2. A description of the methods of publicizing the solicitation, including dates and places of publication and posting;
3. Copies of the responses received;
4. Method and justification of contractor selection;
5. Bid tabulation;
6. Abstract of bids or proposals;
7. Justification of the use of negotiation (if used);
8. Negotiation memorandum stating that the prices are fair and reasonable;
9. A copy of the signed and dated contract;
10. Evidence of satisfactory completion of the contract.

V. Required Contract Provision

1. Contracts for other than small purchases shall contain provisions or conditions which will allow administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and shall provide for such sanctions and penalties as appropriate.
   
   
2. All contracts shall:
   
   
   1. Describe conditions under which the contract may be terminated for default;
   2. Describe conditions where the contract may be terminated because of circumstances beyond the control of the contractor;
   3. Contain suitable provisions for termination by the grant recipient, including the manner by which it will be affected and the basis for settlement.

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