Common use of General Procurement Provisions Clause in Contracts

General Procurement Provisions. The standards and procedures for procurement are intended to ensure that supplies, equipment, construction and other services acquired in whole or in part with Federal funds are: a) Obtained as efficiently and economically as possible. b) Procured in a manner that provides, to the maximum extent practical, open and free competition. Solicitations must clearly explain all requirements that the bidder/offeror must fulfill in order for his or her bid/offer to be evaluated by the subrecipient. Solicitations for goods and services must be based on a clear and accurate description of the material, product, or service to be procured, and cannot contain features which unduly restrict competition. Some of the situations considered to be restrictive of competition include, but are not limited to: • Placing unreasonable qualifying requirements on firms. • Requiring unnecessary experience and excessive bonding. • Specifying only “brand name” products instead of allowing “an equal” product. • Noncompetitive pricing practices between firms or affiliated companies. • Noncompetitive awards to consultants on retainer contracts. Awards are to be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous to the subrecipient, price and other factors considered. Any and all bids may be rejected when it is in the subrecipient’s interest to do so. The subrecipient must ensure that the award is only made to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration should be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The Federal guidelines for contracting are designed to further ensure that contracts are structured and managed in a way that is consistent with good administrative practices and sound business judgment. The Federal requirements for these administrative areas are found in 24 CFR 85.36 for governmental subrecipients and in 24 CFR 84.40-48 for subrecipients that are non-profit organizations. Because the procurement standards in 24 CFR Part 85 are generally more specific than those found in Part 84, the former will be used as the principal basis for this chapter’s presentation of applicable requirements. Whenever there is a clear distinction The general requirements for procurement include the following: • According to 24 CFR 85.36(b)(9), a subrecipient must maintain records to detail the significant history of a procurement. These records include, not are not limited to, files on the rationale for selecting the methods of procurement used, selection of contract type, the contractor selection/rejection process, and the basis for the cost or price of a contract (for non-profit subrecipients, 24 CFR 84.46 specifies that procurement records and files for purchases in excess of the small purchase threshold fixed at 41 U.S.C. 403(ii), currently $100,000, must include the basis for contractor selection, justification for lack of competition when competitive bids or offers are not obtained, and the basis for the award cost or price). • Pre-qualified lists of vendors/contractors, if used, must be current, developed through open solicitation, include adequate numbers of qualified sources, and must allow entry of other firms to qualify at any time during the solicitation period (24 CFR 85.36(c)(4)). • As part of its efforts to eliminate unfair competitive advantage, a subrecipient should exclude contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals from competing for such procurement (24 CFR 84.43). • A subrecipient must ensure that awards are not made to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension” (24 CFR 85.35). • There must be written selection procedures for procurement transactions, and the procedures must be adequate to ensure that: • The purchase of unnecessary or duplicate items is avoided. Where appropriate, an analysis should be made of lease versus purchase alternatives (24 CFR 85.36(b)(4) and 84.44(a)(1)-(2)); • Whenever possible, use of Federal excess and surplus property or intergovernmental agreements for procurement or use of common goods and services should be considered as a way to xxxxxx greater economy and efficiency (24 CFR 85.36(b)(5) and (6)); • All purchase orders (and contracts) are signed by the authorized official(s) of the subrecipient; • Items delivered and paid for are consistent with the purchase order and/or contract for the goods or services; • Timely payment to vendors occurs once the order is delivered, inspected, accepted, and payment authorized; • A cost or price analysis is performed for every procurement action, including contract modifications, and documentation to that effect is maintained in the subrecipient files. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, subrecipients must make independent estimates before receiving bids or proposals (24 CFR 85.36(f) and 84.45); • Profit or fee is negotiated separately from price where competition is lacking or whenever a cost analysis is performed. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of past performance, and industry rates for the area (24 CFR 85.36(f)(2)); and, • The list of provisions in 24 CFR 85.36(i) or 84.48, as applicable, must be included in any contracts. • Subrecipients must not use “cost plus a percentage of cost” pricing for contracts (24 CFR 85.36(f)(4) and 84.44(c)); in addition, subrecipients should use “time and material” type contracts only after a determination is made that no other contract is suitable and the contract includes a ceiling price that the contractor exceeds at its own risk (24 CFR 85.36(b)(10)). • Subrecipients must have protest procedures in place to handle and resolve disputes relating to their procurement and in all instances report such disputes to the grantee (24 CFR 85.36(b)(12)). • There must be a documented system of contract administration for determining the adequacy of contractor performance (24 CFR 85.36(b)(2)). • A subrecipient must have a written code of conduct governing employees, officers, or agents engaged in the award or administration of contracts (24 CFR 85.36(b)(3) and 84.42).

General Procurement Provisions. The standards and procedures for procurement are intended to ensure that supplies, equipment, construction and other services acquired in whole or in part with Federal funds are:‌ a) Obtained as efficiently and economically as possible. b) Procured in a manner that provides, to the maximum extent practical, open and free competition. Solicitations must clearly explain all requirements that the bidder/offeror must fulfill in order for his or her bid/offer to be evaluated by the subrecipient. Solicitations for goods and services must be based on a clear and accurate description of the material, product, or service to be procured, and cannot contain features which unduly restrict competition. Some of the situations considered to be restrictive of competition include, but are not limited to: • Placing unreasonable qualifying requirements on firms. • Requiring unnecessary experience and excessive bonding. • Specifying only “brand name” products instead of allowing “an equal” product. • Noncompetitive pricing practices between firms or affiliated companies. • Noncompetitive awards to consultants on retainer contracts. Awards are to be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous to the subrecipient, price and other factors considered. Any and all bids may be rejected when it is in the subrecipient’s interest to do so. The subrecipient must ensure that the award is only made to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration should be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The Federal guidelines for contracting are designed to further ensure that contracts are structured and managed in a way that is consistent with good administrative practices and sound business judgment. The Federal requirements for these administrative areas are found in 24 CFR 85.36 for governmental subrecipients and in 24 CFR 84.40-48 for subrecipients that are non-profit organizations. Because the procurement standards in 24 CFR Part 85 are generally more specific than those found in Part 84, the former will be used as the principal basis for this chapter’s presentation of applicable requirements. Whenever there is a clear distinction between the requirements of 24 CFR Parts 85 and 84, the text will distinguish between the two sets of requirements. However, in general, the standards set forth in 24 CFR Part 85 for procurement may be viewed as a “safe harbor” for satisfying the Federal requirements. The general requirements for procurement include the following: • According to 24 CFR 85.36(b)(9), a subrecipient must maintain records to detail the significant history of a procurement. These records include, not but are not limited to, files on the rationale for selecting the methods of procurement used, selection of contract type, the contractor selection/rejection process, and the basis for the cost or price of a contract (for non-profit subrecipients, 24 CFR 84.46 specifies that procurement records and files for purchases in excess of the small purchase threshold fixed at 41 U.S.C. 403(ii), currently $100,000, must include the basis for contractor selection, justification for lack of competition when competitive bids or offers are not obtained, and the basis for the award cost or price). • Pre-qualified lists of vendors/contractors, if used, must be current, developed through open solicitation, include adequate numbers of qualified sources, and must allow entry of other firms to qualify at any time during the solicitation period (24 CFR 85.36(c)(4)). • As part of its efforts to eliminate unfair competitive advantage, a subrecipient should exclude contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals from competing for such procurement (24 CFR 84.43). • A subrecipient must ensure that awards are not made to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension” (24 CFR 85.35). • There must be written selection procedures for procurement transactions, and the procedures must be adequate to ensure that: • The purchase of unnecessary or duplicate items is avoided. Where appropriate, an analysis should be made of lease versus purchase alternatives (24 CFR 85.36(b)(4) and 84.44(a)(1)-(2)); • Whenever possible, use of Federal excess and surplus property or intergovernmental agreements for procurement or use of common goods and services should be considered as a way to xxxxxx greater economy and efficiency (24 CFR 85.36(b)(5) and (6)); • All purchase orders (and contracts) are signed by the authorized official(s) of the subrecipient; • Items delivered and paid for are consistent with the purchase order and/or contract for the goods or services; • Timely payment to vendors occurs once the order is delivered, inspected, accepted, and payment authorized; • A cost or price analysis is performed for every procurement action, including contract modifications, and documentation to that effect is maintained in the subrecipient files. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, subrecipients must make independent estimates before receiving bids or proposals (24 CFR 85.36(f) and 84.45); • Profit or fee is negotiated separately from price where competition is lacking or whenever a cost analysis is performed. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of past performance, and industry rates for the area (24 CFR 85.36(f)(2)); and, • The list of provisions in 24 CFR 85.36(i) or 84.48, as applicable, must be included in any contracts. • Subrecipients must not use “cost plus a percentage of cost” pricing for contracts (24 CFR 85.36(f)(4) and 84.44(c)); in addition, subrecipients should use “time and material” type contracts only after a determination is made that no other contract is suitable and the contract includes a ceiling price that the contractor exceeds at its own risk (24 CFR 85.36(b)(10)). • Subrecipients must have protest procedures in place to handle and resolve disputes relating to their procurement and in all instances report such disputes to the grantee (24 CFR 85.36(b)(12)). • There must be a documented system of contract administration for determining the adequacy of contractor performance (24 CFR 85.36(b)(2)). • A subrecipient must have a written code of conduct governing employees, officers, or agents engaged in the award or administration of contracts (24 CFR 85.36(b)(3) and 84.42).

General Procurement Provisions. The standards and procedures for procurement are intended to ensure that supplies, equipment, construction and other services acquired in whole or in part with Federal funds are: a) Obtained as efficiently and economically as possible. b) Procured in a manner that provides, to the maximum extent practical, open and free competition. Solicitations must clearly explain all requirements that the bidder/offeror must fulfill in order for his or her bid/offer to be evaluated by the subrecipient. Solicitations for goods and services must be based on a clear and accurate description of the material, product, or service to be procured, and cannot contain features which unduly restrict competition. Some of the situations considered to be restrictive of competition include, but are not limited to: •  Placing unreasonable qualifying requirements on firms. •  Requiring unnecessary experience and excessive bonding. •  Specifying only “brand name” products instead of allowing “an equal” product. •  Noncompetitive pricing practices between firms or affiliated companies. •  Noncompetitive awards to consultants on retainer contracts. Awards are to be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous to the subrecipient, price and other factors considered. Any and all bids may be rejected when it is in the subrecipient’s interest to do so. The subrecipient must ensure that the award is only made to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration should be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The Federal guidelines for contracting are designed to further ensure that contracts are structured and managed in a way that is consistent with good administrative practices and sound business judgment. The Federal requirements for these administrative areas are found in 24 CFR 85.36 for governmental subrecipients and in 24 CFR 84.40-48 for subrecipients that are non-profit organizations. Because the procurement standards in 24 CFR Part 85 are generally more specific than those found in Part 84, the former will be used as the principal basis for this chapter’s presentation of applicable requirements. Whenever there is a clear distinction The general requirements for procurement include the following: •  According to 24 CFR 85.36(b)(9), a subrecipient must maintain records to detail the significant history of a procurement. These records include, not are not limited to, files on the rationale for selecting the methods of procurement used, selection of contract type, the contractor selection/rejection process, and the basis for the cost or price of a contract (for non-profit subrecipients, 24 CFR 84.46 specifies that procurement records and files for purchases in excess of the small purchase threshold fixed at 41 U.S.C. 403(ii), currently $100,000, must include the basis for contractor selection, justification for lack of competition when competitive bids or offers are not obtained, and the basis for the award cost or price). •  Pre-qualified lists of vendors/contractors, if used, must be current, developed through open solicitation, include adequate numbers of qualified sources, and must allow entry of other firms to qualify at any time during the solicitation period (24 CFR 85.36(c)(4)). •  As part of its efforts to eliminate unfair competitive advantage, a subrecipient should exclude contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals from competing for such procurement (24 CFR 84.43). •  A subrecipient must ensure that awards are not made to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension” (24 CFR 85.35). •  There must be written selection procedures for procurement transactions, and the procedures must be adequate to ensure that: •  The purchase of unnecessary or duplicate items is avoided. Where appropriate, an analysis should be made of lease versus purchase alternatives (24 CFR 85.36(b)(4) and 84.44(a)(1)-(2)); •  Whenever possible, use of Federal excess and surplus property or intergovernmental agreements for procurement or use of common goods and services should be considered as a way to xxxxxx greater economy and efficiency (24 CFR 85.36(b)(5) and (6)); •  All purchase orders (and contracts) are signed by the authorized official(s) of the subrecipient; •  Items delivered and paid for are consistent with the purchase order and/or contract for the goods or services; •  Timely payment to vendors occurs once the order is delivered, inspected, accepted, and payment authorized; •  A cost or price analysis is performed for every procurement action, including contract modifications, and documentation to that effect is maintained in the subrecipient files. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, subrecipients must make independent estimates before receiving bids or proposals (24 CFR 85.36(f) and 84.45); •  Profit or fee is negotiated separately from price where competition is lacking or whenever a cost analysis is performed. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of past performance, and industry rates for the area (24 CFR 85.36(f)(2)); and, •  The list of provisions in 24 CFR 85.36(i) or 84.48, as applicable, must be included in any contracts. •  Subrecipients must not use “cost plus a percentage of cost” pricing for contracts (24 CFR 85.36(f)(4) and 84.44(c)); in addition, subrecipients should use “time and material” type contracts only after a determination is made that no other contract is suitable and the contract includes a ceiling price that the contractor exceeds at its own risk (24 CFR 85.36(b)(10)). •  Subrecipients must have protest procedures in place to handle and resolve disputes relating to their procurement and in all instances report such disputes to the grantee (24 CFR 85.36(b)(12)). •  There must be a documented system of contract administration for determining the adequacy of contractor performance (24 CFR 85.36(b)(2)). •  A subrecipient must have a written code of conduct governing employees, officers, or agents engaged in the award or administration of contracts (24 CFR 85.36(b)(3) and 84.42).

General Procurement Provisions. The standards and procedures for procurement are intended to ensure that supplies, equipment, construction and other services acquired in whole or in part with Federal funds are:‌ a) Obtained as efficiently and economically as possible. b) Procured in a manner that provides, to the maximum extent practical, open and free competition. Solicitations must clearly explain all requirements that the bidder/offeror must fulfill in order for his or her bid/offer to be evaluated by the subrecipient. Solicitations for goods and services must be based on a clear and accurate description of the material, product, or service to be procured, and cannot contain features which unduly restrict competition. Some of the situations considered to be restrictive of competition include, but are not limited to: • Placing unreasonable qualifying requirements on firms. • Requiring unnecessary experience and excessive bonding. • Specifying only “brand name” products instead of allowing “an equal” product. • Noncompetitive pricing practices between firms or affiliated companies. • Noncompetitive awards to consultants on retainer contracts. Awards are to be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous to the subrecipient, price and other factors considered. Any and all bids may be rejected when it is in the subrecipient’s interest to do so. The subrecipient must ensure that the award is only made to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration should be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The Federal guidelines for contracting are designed to further ensure that contracts are structured and managed in a way that is consistent with good administrative practices and sound business judgment. The Federal requirements for these administrative areas are found in 24 CFR 85.36 for governmental subrecipients and in 24 CFR 84.40-48 for subrecipients that are non-profit organizations. Because the procurement standards in 24 CFR Part 85 are generally more specific than those found in Part 84, the former will be used as the principal basis for this chapter’s presentation of applicable requirements. Whenever there is a clear distinction between the requirements of 24 CFR Parts 85 and 84, the text will distinguish between the two sets of requirements. However, in general, the standards set forth in 24 CFR Part 85 for procurement may be viewed as a “safe harbor” for satisfying the Federal requirements. The general requirements for procurement include the following: • According to 24 CFR 85.36(b)(9), a subrecipient must maintain records to detail the significant history of a procurement. These records include, not are not limited to, files on the rationale for selecting the methods of procurement used, selection of contract type, the contractor selection/rejection process, and the basis for the cost or price of a contract (for non-profit subrecipients, 24 CFR 84.46 specifies that procurement records and files for purchases in excess of the small purchase threshold fixed at 41 U.S.C. 403(ii), currently $100,000, must include the basis for contractor selection, justification for lack of competition when competitive bids or offers are not obtained, and the basis for the award cost or price). • Pre-qualified lists of vendors/contractors, if used, must be current, developed through open solicitation, include adequate numbers of qualified sources, and must allow entry of other firms to qualify at any time during the solicitation period (24 CFR 85.36(c)(4)). • As part of its efforts to eliminate unfair competitive advantage, a subrecipient should exclude contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals from competing for such procurement (24 CFR 84.43). • A subrecipient must ensure that awards are not made to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension” (24 CFR 85.35). • There must be written selection procedures for procurement transactions, and the procedures must be adequate to ensure that: • The purchase of unnecessary or duplicate items is avoided. Where appropriate, an analysis should be made of lease versus purchase alternatives (24 CFR 85.36(b)(4) and 84.44(a)(1)-(2)); • Whenever possible, use of Federal excess and surplus property or intergovernmental agreements for procurement or use of common goods and services should be considered as a way to xxxxxx greater economy and efficiency (24 CFR 85.36(b)(5) and (6)); • All purchase orders (and contracts) are signed by the authorized official(s) of the subrecipient; • Items delivered and paid for are consistent with the purchase order and/or contract for the goods or services; • Timely payment to vendors occurs once the order is delivered, inspected, accepted, and payment authorized; • A cost or price analysis is performed for every procurement action, including contract modifications, and documentation to that effect is maintained in the subrecipient files. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, subrecipients must make independent estimates before receiving bids or proposals (24 CFR 85.36(f) and 84.45); • Profit or fee is negotiated separately from price where competition is lacking or whenever a cost analysis is performed. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of past performance, and industry rates for the area (24 CFR 85.36(f)(2)); and, • The list of provisions in 24 CFR 85.36(i) or 84.48, as applicable, must be included in any contracts. • Subrecipients must not use “cost plus a percentage of cost” pricing for contracts (24 CFR 85.36(f)(4) and 84.44(c)); in addition, subrecipients should use “time and material” type contracts only after a determination is made that no other contract is suitable and the contract includes a ceiling price that the contractor exceeds at its own risk (24 CFR 85.36(b)(10)). • Subrecipients must have protest procedures in place to handle and resolve disputes relating to their procurement and in all instances report such disputes to the grantee (24 CFR 85.36(b)(12)). • There must be a documented system of contract administration for determining the adequacy of contractor performance (24 CFR 85.36(b)(2)). • A subrecipient must have a written code of conduct governing employees, officers, or agents engaged in the award or administration of contracts (24 CFR 85.36(b)(3) and 84.42).

General Procurement Provisions. The standards and procedures for procurement are intended to ensure that supplies, equipment, construction and other services acquired in whole or in part with Federal funds are: a) Obtained as efficiently and economically as possible. b) Procured in a manner that provides, to the maximum extent practical, open and free competition. Solicitations must clearly explain all requirements that the bidder/offeror must fulfill in order for his or her bid/offer to be evaluated by the subrecipient. Solicitations for goods and services must be based on a clear and accurate description of the material, product, or service to be procured, and cannot contain features which unduly restrict competition. Some of the situations considered to be restrictive of competition include, but are not limited to: • Placing unreasonable qualifying requirements on firms. • Requiring unnecessary experience and excessive bonding. • Specifying only “brand name” products instead of allowing “an equal” product. • Noncompetitive pricing practices between firms or affiliated companies. • Noncompetitive awards to consultants on retainer contracts. Awards are to be made to the bidder/offeror whose bid/offer is responsive to the solicitation and is most advantageous to the subrecipient, price and other factors considered. Any and all bids may be rejected when it is in the subrecipient’s interest to do so. The subrecipient must ensure that the award is only made to responsible contractors possessing the ability to perform successfully under the terms and conditions of the proposed procurement. Consideration should be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The Federal guidelines for contracting are designed to further ensure that contracts are structured and managed in a way that is consistent with good administrative practices and sound business judgment. The Federal requirements for these administrative areas are found in 24 CFR 85.36 for governmental subrecipients and in 24 CFR 84.40-48 for subrecipients that are non-profit organizations. Because the procurement standards in 24 CFR Part 85 are generally more specific than those found in Part 84, the former will be used as the principal basis for this chapter’s presentation of applicable requirements. Whenever there is a clear distinction between the requirements of 24 CFR Parts 85 and 84, the text will distinguish between the two sets of requirements. However, in general, the standards set forth in 24 CFR Part 85 for procurement may be viewed as a “safe harbor” for satisfying the Federal requirements. The general requirements for procurement include the following: • According to 24 CFR 85.36(b)(9), a subrecipient must maintain records to detail the significant history of a procurement. These records include, not are not limited to, files on the rationale for selecting the methods of procurement used, selection of contract type, the contractor selection/rejection process, and the basis for the cost or price of a contract (for non-profit subrecipients, 24 CFR 84.46 specifies that procurement records and files for purchases in excess of the small purchase threshold fixed at 41 U.S.C. 403(ii), currently $100,000, must include the basis for contractor selection, justification for lack of competition when competitive bids or offers are not obtained, and the basis for the award cost or price). • Pre-qualified lists of vendors/contractors, if used, must be current, developed through open solicitation, include adequate numbers of qualified sources, and must allow entry of other firms to qualify at any time during the solicitation period (24 CFR 85.36(c)(4)). • As part of its efforts to eliminate unfair competitive advantage, a subrecipient should exclude contractors that develop or draft specifications, requirements, statements of work, invitations for bids, and/or requests for proposals from competing for such procurement (24 CFR 84.43). • A subrecipient must ensure that awards are not made to any party which is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, “Debarment and Suspension” (24 CFR 85.35). • There must be written selection procedures for procurement transactions, and the procedures must be adequate to ensure that: • The purchase of unnecessary or duplicate items is avoided. Where appropriate, an analysis should be made of lease versus purchase alternatives (24 CFR 85.36(b)(4) and 84.44(a)(1)-(2)); • Whenever possible, use of Federal excess and surplus property or intergovernmental agreements for procurement or use of common goods and services should be considered as a way to xxxxxx greater economy and efficiency (24 CFR 85.36(b)(5) and (6)); • All purchase orders (and contracts) are signed by the authorized official(s) of the subrecipient; • Items delivered and paid for are consistent with the purchase order and/or contract for the goods or services; • Timely payment to vendors occurs once the order is delivered, inspected, accepted, and payment authorized; • A cost or price analysis is performed for every procurement action, including contract modifications, and documentation to that effect is maintained in the subrecipient files. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, subrecipients must make independent estimates before receiving bids or proposals (24 CFR 85.36(f) and 84.45); • Profit or fee is negotiated separately from price where competition is lacking or whenever a cost analysis is performed. To establish a fair and reasonable profit, consideration will be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of past performance, and industry rates for the area (24 CFR 85.36(f)(2)); and, • The list of provisions in 24 CFR 85.36(i) or 84.48, as applicable, must be included in any contracts. • Subrecipients must not use “cost plus a percentage of cost” pricing for contracts (24 CFR 85.36(f)(4) and 84.44(c)); in addition, subrecipients should use “time and material” type contracts only after a determination is made that no other contract is suitable and the contract includes a ceiling price that the contractor exceeds at its own risk (24 CFR 85.36(b)(10)). • Subrecipients must have protest procedures in place to handle and resolve disputes relating to their procurement and in all instances report such disputes to the grantee (24 CFR 85.36(b)(12)). • There must be a documented system of contract administration for determining the adequacy of contractor performance (24 CFR 85.36(b)(2)). • A subrecipient must have a written code of conduct governing employees, officers, or agents engaged in the award or administration of contracts (24 CFR 85.36(b)(3) and 84.42).