§ 24-1.000 Scope of part.

This part describes the method by which the Department of Housing and Urban Development (HUD) implements, supplements and deviates from the Federal Procurement Regulations (FPR) through the establishment of the HUD Procurement Regulations (HUDPR), which prescribes the Department's procurement policies and procedures under the FPR System, in terms of authority, applicability, issuance and arrangement.

Subpart 24-1.1—Regulation System

§ 24-1.101 Scope of subpart.

This subpart establishes the Department of Housing and Urban Development Procurement Regulations (HUDPR) and states their relationship to the FPR System. It also provides the explanation of their purpose and the authorities under which they are issued.

#§ 24-1.102 Purpose.

The Department of Housing and Urban Development Procurement Regulations (HUDPR) are hereby es{tablished as Chapter 24 of the Federal Procurement Regulations System (41 CFR Chapter 24) and are issued to provide uniform Departmental policies and procedures for the procurement of supplies, personal property and nonpersonal services as defined in HUDPR 24-1.202 by the Department's procuring activities and to make these policies and procedures readily available to Departmental personnel and to the public.

§ 24-1.103 Authority.

The HUDPR are prescribed by the Assistant Secretary for Administration under section 7(d) of the Department of HUD Act (42 U.S.C. 3535(d)), section 205(c) of the Federal Property and

Administrative Services Act of 1949, as amended (40 U.S.C. 486(c)), and under the Secretary's delegation effective January 19, 1976, 41 FR 2665.

§ 24-1.104 Applicability.

All procurement of personal property and nonpersonal services (including construction) on behalf of the Secre

tary, except as may be otherwise authorized by law, must.be accomplished in accordance with the HUDPR and the FPR:

(a) HUDPR implement, supplement, and in some instances may deviate from the FPR. Except as necessary to assure continuity or understanding, FPR material will not be repeated, paraphrased, or otherwise restated in HUDPR.

(b) Where HUDPR contain no material implementing the FPR, the FPR will govern.

(c) Except as specifically provided for herein, the HUDPR does not apply to the placement and administration of grants.

§ 24-1.105 Exclusions.

Certain HUD policies and procedures which come within the scope of this chapter nevertheless, may be excluded from HUD Procurement Regulations. The exclusions are categorized as follows:

(a) Policy or procedure which is expected to be effective for a period of less than (6) months.

(b) Policy or procedure of an internal nature which shall be issued as either a HUD Notice or a HUD Handbook.

§ 24-1.106 Arrangement.

§ 24-1.106-1 General plan.

Chapter 24 is divided in Parts, Subparts, Sections, Paragraphs and further subdivisions as necessary.

§ 24-1.106-2 Numbering.

Generally, the numbering system and part, subpart, and section titles used in HUDPR conform with those used in FPR or as follows:

(a) When HUDPR implement or deviate from a part, subpart, section, or paragraph of the FPR, that implementation or deviation will be numbered and captioned where possible to correspond to the FPR part, subpart, section or paragraph.

(b) Supplementary material published in the HUDPR will be assigned numbers from the number 50 onward which shall be used to denote the new appropriate part, subpart, section or paragraph of the HUDPR.

(c) Where material in the FPR required no implementation or deviation, there is no corresponding numbering in the HUDPR. Therefore, there may be gaps in the HUDPR sequence of numbers where the FPR, as written, are applicable to HUDPR and require no further implementation.

§ 24-1.106-3 Citation.

HUDPR will be cited in accordance with FEDERAL REGISTER standards approved for the FPR. Thus, this section, when referred to in HUDPR should be cited as "§ 24-1.106-3 of this chapter." When this section is referred to formally in official documents, such as legal briefs, it should be cited as "41 CFR 24-1.106-3." Any section of the HUDPR may be informally identified by the section number, e.g., "HUDPR 24-1.106-3."

§ 24-1.108 Deviation.

§ 24-1.108-1 Description.

The term deviation, which includes deviations from FPR as well HUDPR, means:

as

(a) When a prescribed contract lause is set forth verbatim, use of a contract clause covering the same subject matter which varies from that set forth;

(b) When a standard or other form is prescribed, use of any other form for the same purpose;

(c) Alteration of a prescribed standard or other form, except as may be authorized in the Regulations;

(d) The imposition of lesser or, where the regulation expressly prohibits, greater limitations than are imposed upon the use of a contract clause, form, procedure, type of contract, or upon any other procurement action, including but not limited to, the making or amendment of a contract, or actions taken in connection with the solicitation of bids or proposals, award, administration, or settlement of contracts; and

(e) When a policy or procedure is prescribed, use of any inconsistent policy or procedure.

§ 24-1.108-2 Procedure.

In the interests of establishing and maintaining uniformity to the greatest

extent feasible, deviations from the FPR or HUDPR shall be kept to a minimum and controlled as follows:

(a) In individual cases, deviations from the FPR or HUDPR may be submitted to the Assistant Secretary for Administration or the Director, Office of Procurement and Contracts for approval or other necessary or appropriate action. A supporting statement shall be submitted with the proposed deviation indicating briefly the nature of the deviation and the reason the deviation is necessary and in the best interest of the Government. The contract file shall include a copy of the request submitted and the approval. In emergency situations involving individual cases, deviation approvals may be processed by telephone and later confirmed in writing.

(b) In classes of cases, deviations from the FPR or HUDPR shall be submitted to the Assistant Secretary for Administration for his approval or other necessary or appropriate action. Requests for deviations shall be supporting by statements adequate to disclose fully the nature of the deviation and the need therefor. The Assistant Secretary for Administration will consider on an expedited basis jointly with GSA requests involving the FPR unless he determines, after due consideration of the objective of uniformity and the proper responsibilities of HUD, circumstances preclude such joint effort. In such cases, the Assistant Secretary for Administration will approve such class deviations as he determines necessary and GSA will be notified. Authorized class deviations will be reflected in HUDPR.

Subpart 24-1.2-Definition of Terms

§ 24-1.201 Scope of subpart.

This subpart contains definitions of terms used generally throughout HUDPR, in addition to those set forth in 41 CFR Subpart 1-1.2. Additional definitions will be found in individual subparts of the FPR and HUDPR covering terms used in those subparts only.

§ 24-1.202 Definitions.

§ 24-1.202-1 Department.

"Department" means the Department of Housing and Urban Development, which may also be designated as "HUD."

§ 24-1.202-2 Secretary.

"Secretary" means the Secretary of Housing and Urban Development.

§ 24-1.202-3 Chief officer responsible for procurement.

The Director, Office of Procurement and Contracts is the Chief Officer responsible for procurement within the Department.

§ 24-1.202-4 Procuring activity.

"Procuring Activity" means those offices identified under § 24-1.451 which have authority delegated by the Secretary and redelegated by the cognizant official to purchase or contract for supplies, services and/or construction.

§ 24-1.202-5 Head of procuring activity. "Head of Procuring Activity" as used in the HUDPR has the following meaning:

(a) Director, Office of Procurement and Contracts for HUD headquarters procurement;

(b) The Assistant Regional Administrators for Administration for regional office procurement;

(c) The Director, Office of Property Disposition for national contracts on acquired properties;

(d) The Directors, Area and Insuring Offices for decentralized procurement on acquired properties;

(e) The Directors, Strategic Storage Centers for procurement in support of the requirements for disaster temporary housing, storage, maintenance, repair and transport;

(f) The Directors, Disaster Field Offices for procurement of supplies and services in support of temporary housing for Presidentially-declared disaster areas; and

(g) The Director, Office of Housing Programs for contracts for the Consolidated Supply Program.

§ 24-1.202-6 Contractor.

"Contractor" means any person, firm, association, or corporation entering into a contract with the Government.

§ 24-1.202-7 Subcontractor.

"Subcontractor" means any person, firm, association, or corporation entering into a subcontract with a contractor or higher-tier subcontractor.

§ 24-1.202-8 Supplies and property.

"Supplies and Property" means materials and goods to be delivered to the Department under contracts or purchase orders.

§ 24-1.202-9 Personal services.

"Personal services" means the services of an officially appointed or employed individual engaged in the performance of authorized Federal functions under the supervision and direction of a Federal officer and paid for on a time or contract price basis. Personal services are acquired by HUD through consulting agreements which may only be executed by the HUD Headquarters Office of Personnel.

§ 24-1.202-10 Nonpersonal services.

"Nonpersonal services" means those services rendered by non-Government firms, institutions or persons through contract or agreement with the Department of Housing and Urban Development wherein no employee-employer relationship exists.

§ 24-1.202-11 Ratification.

“Ratification” means a subsequent confirmation in writing by an authorized HUD official of the placement of the type of order referred to in HUDPR 24-1.405 by a HUD official not authorized to do so.

§ 24-1.202-12 Primary organization heads. "Primary Organization Heads" are those officials of the Department who are responsible for the major organizational components of HUD and who report directly to the Secretary or Under Secretary. The Primary Organization Heads of HUD are: Assistant Secretary(ies), the General Counsel, the Deputy Under Secretary(ies), Fed

eral Insurance Administrator, New Communities Administrator, Federal Disaster Assistance Administrator, Inspector General and Regional

Administrator(s).

Subpart 24-1.3-General Policies

§ 24-1.301 Scope of subpart.

This subpart sets forth Departmental policies which are applicable to all procurements and provides general guidance on matters which include but are not limited to public information and disputes procedures.

§ 24-1.302 Procurement sources.

§ 24-1.302-1 General.

The procurement of supplies and services may be obtained from the following:

(a) Government sources. Procurement of certain supplies and services may be effected by orders on Government sources referred to in 41 CFR 11.302-1. It is the policy of the Department that following methods of procurement be utilized to the maximum extent practicable, in accordance with applicable laws and regulations:

(1) Excess and surplus stocks in the hands of any Government agency; (2) Federal Supply Schedules;

(3) General Services Administration Stores Stock;

(4) Federal Supply Service Consolidated Purchase Programs;

(5) Federal Prison Industries, Inc.; and

(6) National Industries for the Blind. (b) Sources outside the Government. Irrespective of whether the procurement of supplies or services from sources outside the Government is to be effected by formal advertising or by negotiation, competitive proposals ("bids" in the case of procurement by formal advertising, “proposals” in the case of procurement by negotiation) shall be solicited from all such qualified sources as are deemed necessary by the Contracting Officer to assure such full and free competition as is consistent with the procurement of the types of supplies and services necessary to meet the Department's requirements.

§ 24-1.313 Records of contract actions.

Each procuring activity within HUD shall maintain an official record for each contract and purchase order issued. Each official procurement record shall constitute an independent history, documented to provide a complete chronology of all actions taken and shall contain all preaward and postaward actions in sufficient detail to explain and support the judgments of the Contracting Officer. In addition, official procurement records shall contain written documentation of all understandings, oral agreements and any other information pertinent to the transaction in the manner prescribed by each procuring activity.

§ 24-1.318 Disputes.

§ 24-1.318-1 Disputes clause.

Every contract awarded by the Department shall contain a Disputes Clause, as set forth in 41 CFR 1-7.10212.

§ 24-1.318-2 Contracting officer's decision under a disputes clause.

When a disagreement of fact arising under the contract cannot be settled by agreement between the contractor and the Contracting Officer, the Contracting Officer shall then review all

pertinent facts and issue a written final decision under the Disputes Clause. Such final decision must represent the independent judgment of the Contracting Officer and shall contain language substantially in accord with that set forth in 41 CFR 1-1.318-1. A copy of each Contracting Officer's decision under the Disputes Clause shall be furnished to the contractor by certified mail, return receipt requested, or in person, obtaining a receipt therefor.

§ 24-1.318-3 HUD Board of Contract Appeals.

The HUD Board of Contract Appeals has been established to hear, consider, and determine appeals from decisions of Contracting Officers pursuant to the clause entitled, “Disputes" of the contract. The HUD contract appeal procedure is set forth in 24 CFR Part 20.

Subpart 24-1.4-Procurement Responsibility and Authority

§ 24-1.400 Scope of subpart.

This subpart deals with the placement of procurement authorities and responsibilities within the Department, the selection and designation of Contracting Officers and the authorization of procuring activities.

§ 24-1.402 Responsibility of the Chief Officer responsible for procurement. The chief officer responsible for procurement shall establish procurement policy throughout the Department and monitor the overall effectiveness and efficiency of the Department's procuring activities. The person exercising this authority shall establish adequate controls to assure compliance with applicable laws, regulations and procedures.

§ 24-1.404 Selection, designation and termination of designation of contracting officers.

§ 24-1.404-1 Selection.

In addition to the requirements set forth in 41 CFR 1-1.404-1, the appropriate delegating or redelegating authority shall assure that the delega

tion of Contracting Officer's authority includes clear statements of such authority, responsibilities and limitations.

§ 24-1.404-2 Designation.

Except for disaster-related activities and unusual circumstances as determined by the appropriate delegating and redelegating authority, it is the Department's policy to delegate Contracting Officer authority by position rather than on an individual basis. For those delegations of Contracting Officer authority issued by name under the unusual circumstances mentioned in the exception above, a time limitation of one year shall be made a part of the delegation of authority. All designations of Contracting Officers shall be made in writing and published in the FEDERAL REGISTER. Except in those instances where the redelegation of authority specifically includes the authority for further redelegation to subordinate positions, no other delegations or redelegations may be made.

§ 24-1.404-3 Termination of designation. The established Contracting Officer authority exists as follows:

(a) Automatic termination. Unless the delegation of authority of a Contracting Officer contains provision for automatic termination, the delegation shall remain effective, unless revoked by the appropriate delegating authority. The authority of individuals designated as Contracting Officers by virtue of their position will be terminated upon their reassignment to another position in the Department or upon termination of their employment.

(b) Revocation. The delegation of authority for a Contracting Officer may be revoked in writing at any time by the delegating authority but no such revocation shall operate retroactively. Revocation of the delegation shall be published in the FEDERAL REGISTER.

(c) Succession of authority. Persons who succeed to a position designated as a Contracting Officer shall assume responsibility for the administration of all contracts entered into by their predecessors.

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