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either a grant or contract in Depart. (4) The end result is clearly defined mental research efforts.

and “specifications" are prepared in

advance of the work. $ 24-1.5001 Policy.

Research grants may be made to PART 24-2-PROCUREMENT BY support research at nonprofit organi.

FORMAL ADVERTISING zations and educational institutions, State and local governments, and se- Sec. lected other organizations and persons 24-2.000 Scope of part. when it is advantageous to the Government. FPR and HUDPR provisions Subpart 24-2.1—Use of Formal Advertising relating to contract award are not ap 24-2.150 Specification requirements. plicable to awards of grants.

24-2.150-1 General.

$ 24-1.5002 Criteria for use of grants and

Subpart 24-2.2-Solicitation of Bids contracts.

24-2.201 Preparation of invitations for The criteria set forth below provide bids. guidelines to determine the appropri. 24-2.202 Miscellaneous rules for solicitaate type of instrument for use with tion of bids. grants and contracts.

24-2.202-1 Bidding time. (a) Use of grants. The factors that

24-2.202-2 Telegraphic bids.

24-2.202-3 Place and method of delivery of indicate the use of grants rather than

supplies. contracts are:

24-2.202-4 Bid samples. (1) The primary purpose is to aid or . 24-2.202-50 Extension of time for bid opensupport the acquisition of knowledge ing. or understanding of the subject under 24-2.202-51 Incorporation by reference. study;

24-2.202-52 Prebid conference.

24-2.202-53 Bid envelopes. (2) The exact course of the work and

24-2.202-54 Alternate bids. its outcome are not precisely definable

24-2.203-3 Publicity in newspapers and and specific points in time for achieve

trade journals. ment of significant results are not pre- 24-2.205 Bidders mailing list. cisely specifiable; and

24-2.205-1 General. (3) The nature of the proposed in 24-2.205-2 Establishment of lists. vestigation is such that the grantee

24-2.205-3 Removal and reinstatement of will bear prime responsibility for the

names on bidders lists. conduct of the research, and exercise

Subpart 24–2.3—Submission of Bids judgment and original thought toward attaining the goals within broad pa- 24-2.301 Responsiveness of bids. rameters of the research areas pro

24-2.303 Late bids. posed and the related resources pro

24-2.303-1 General.

24-2.303-6 Notification to late bidders. vided.

24-2.303-7 Disposition of late bids. (b) Use of contracts. The factors that indicate the use of contracts Subpart 24-2.4-Opening of Bids and Award rather than grants are:

of Contract (1) The primary purpose is to buy or procure well-defined research or devel

24-2.401 Receipt and safeguarding of bids.

24-2.402 Opening of bids. opment in direct support of a HUD

24-2.402-50 Marking of bids. program;

24-2.402-51 Timing of acceptance and (2) The end product is a specific

withdrawal. service, piece of hardware or improved 24-2.404 Rejection of bids. performance of a specific service or 24-2.404-50 Rejection of bids in multiple piece of hardware;

bidding situations. (3) HUD considers it necessary to ex

24-2.406 Mistakes in bids. ercise a more stringent control over

24-2.406-3 Other mistakes disclosed before

award. the objectives, direction, specifica

24-2.406-4 Disclosure of mistakes after tions, costs or methods of the re

award. search, and such control is desirable 24-2.407 Award. and feasible; and

24-2.407-1 General.


termining when formal advertising is 24-2.407-7 Statement and certificate of impractical or otherwise unsuitable award.

and for documenting the file accord24-2.407-8 Protests against award.

ingly in the form of a determination 24-2.407-50 Award when only one bid is re- and finding.

ceived. 24-2.408 Information to bidders.

Subpart 24-2.2—Solicitation of Bids AUTHORITY: Sec. 7(d), Housing and Urban Development Act, (42 U.S.C. 3535(d)).

8 24-2.201 Preparation of invitations for SOURCE: 41 FR 55801, Dec. 22, 1976, unless bids. otherwise noted.

Forms used in the preparation of in8 24-2.000 Scope of part.

vitations for bids are prescribed in 41

CFR Subpart 1-16.1 and 1-16.4 and in This part implements and supple

24-16 of this Chapter ments the basic requirements for procurement of personal property and 8 24-2.202 Miscellaneous rules for solicitanonpersonal services (including con tion of bids. struction) by formal advertising, and establishes policies with respect to so- $ 24-2.202-1 Bidding time. licitation of bids, submission of bids In the procurement of supplies and and opening and evaluation of bids services, the following shall be oband, the awarding of contracts as set served: forth in 41 CFR 1-2.

(a) Procurement action which does

not provide for the minimum bidding Subpart 24-2.1-Use of Formal time required by 41 CFR 1-2.202-1(c) Advertising

shall be justified by the Contracting

Officer prior to releasing the invita8 24-2.150 Specification requirements.

tion for bids. This justification shall

take the form of a finding of fact 8 24-2.150-1 General.

which establishes the Contracting Of.

ficer's basis for the exception to the In addition to the requirements stip

minimum bidding time. ulated in 41 CFR 1-1.305, the specifi

(b) The minimum bidding time stipcation shall be specific as to the objec

ulated in 41 CFR 1-2.202-1(c) shall not tives and the tasks to be performed,

be construed as a maximum. Each time of performance, Government-fur

prospective procurement shall be exnished materials and information, re

amined on its own merits to determine porting requirements, measurements

the bidding time that will facilitate of progress, publications, and time pe

competition on reasonable and equal riods for Government review. General

terms. As a general rule, procurement ly the specifications shall be stated in

of a less complicated nature for which detail and contain the following ele

no extensive bid preparation by the ments but shall always be written to

prospective bidder is required in develmeet the minimum that will also be

opment of his bid may contain a bidacceptable:

ding time of 20 calendar days. Where (a) Objective.

the specification may require prospec. (b) Scope of work.

tive bidders to develop drawings or (c) Specific tasks.

samples, or to do extensive prepara(d) Performance.

tion in developing a meaningful bid, 30 (e) Products/deliverables and sched

calendar days or more of bidding time ules.

may be required. When similar types (f) Reports.

of requirements necessitate a quick (g) Government obligations.

turnaround time, the appropriate ProThe adequacy of specifications is a curing Activity may request a class excritical factor in the use of formal ad ception to the minimum bidding time vertising procedures. They must be de- relating to the urgency for the supfined well enough to permit all bidders plies or services. If this situation to bid on the same basis. The Con- exists, the Contracting Officer will tracting Officer is responsible for de- make a request to the Head of the Procuring Activity for approval of the contract file as to the method of dispoclass exception or where internal De- sition. partmental regulations exist regarding exceptions to the minimum bidding § 24-2.202-50 Extension of time for bid time these regulations are construed opening. as an exception under this Section.

(a) Whenever such action is deter

mined by the Contracting Officer to 8 24-2.202–2 Telegraph Bids.

be in the best interest of the GovernTelegraphic bids will be authorized ment, bid openings may be reschedonly by the Contracting Officer who uled for a later date by issuance and shall document the official procure distribution of an amendment (see 41 ment file as to the necessity of tele- CFR 1-2.207) to the invitation for graphic bids. Conditions under which bids. Notices of change in bid opening telegraphic bids may be authorized are date shall specify the exact time and set forth in 41 CFR 1-2.202–2. When date for the new opening and will be telegraphic bids are authorized by the issued by mail or telegraph as soon as Contracting Officer, the following possible, but in any event prior to the clause shall be incorporated in the In- time specified for the opening of bids. vitation for Bids:

8 24-2.202-51 Incorporation by reference. Telegraphic bids may be submitted in response to this Invitation for Bids (IFB).

There shall be shown on the face of Telegraphic bids must be received in this

the invitation for bids or, if that sheet Office prior to the time specified for open is not the primary one provided for ing of bids. Such bids must specifically refer the bidder's signature, on the primary to this IFB; must include the items or sub sheet that is so provided, a listing of items, quantities and unit prices for which attachments which are to form a part the bid is submitted and the time and place of the bid invitation and resulting conof delivery; and must contain all the repre

tract, as follows: sentations and other information required by the IFB together with a statement that “The following attachments hereto form a the bidder agrees to all the terms, condi- part of this Invitation for Bids and any retions and provisions of the invitation. Fail. sulting contract:” ure to furnish, in the telegraphic bid, the representations and information required 8 24-2.202-52 Prebid conference. by the IFBs may necessitate rejection of the

Whenever a prebid conference is bid. Signed copies of the IFBs must be fur

proposed for a procurement the folnished in confirmation of the telegraphic bids. The bidder shall confirm the tele

lowing will be applicable: graphic bid on the required forms contained

(a) General. One of the essential elein the IFB and shall submit it to the Con ments of formal advertising is that all tracting Officer within five (5) calendar bidders are afforded an equal opportudays after the time and date set forth in the nity to compete. For this reason, disIFB for receipt of all bid responses.

cussions with prospective bidders will

only be conducted by or with the 8 24-2.202-3 Place and method of delivery

knowledge and approval of the Conof supplies.

tracting Officer. It is incumbent upon To the maximum extent practical, the Contracting Officer to afford to invitations for bids issued by HUD all prospective bidders the same inforshall stipulate “f.o.b. destination.” mation so as not to give one advantage Only where the Contracting Officer over the others, if issued to only one determines it to be in the Govern potential bidder. The need for prebid ment's best interest may he deviate conferences in advertised procurefrom this policy.

ments should be infrequent and such

conferences shall not be used as a sub$ 24-2.202-4 Bid samples.

stitute for formally amending defecBid samples submitted by bidders as tive or ambiguous solicitation or to disrequired by an invitation for bids or as seminate additional specification reunsolicited samples if not returned in quirements. The prebid conference is a

ordance with 41 CFR 1-2.202-4(h), procedure generally reserved for comshall be disposed of by the Contract- plex procurements to provide for dising Officer who shall document the cussion of unusual aspects. A prebid


conference is only authorized when it OF17 illustrates the referenced form is deemed by the Contracting Officer and copies of same can be obtained to be in the best interest of the Gov- from the General Services Administraernment and approved by the Head of tion. the Procuring Activity or when written internal program policy requires it § 24-2.202-54 Alternate Bids. under certain specified circumstances. An alternate bid is one that offers a

(b) Format. The typical format of a suitable substitute for the requireprebid conference is a formal presen- ments set forth in the invitation or tation by the Contracting Officer or which goes to the substance of the bid his representative followed by a ques. which affects price, quality, quantity tion and answer period. All prospective or delivery. Where alternate bids are bidders and their subcontractors shall not provided for in the invitation, the be invited to the meeting in a manner Government shall consider any alterdeemed appropriate by the Contract. nate bid to be non-responsive. The aling Officer. When held, a prebid con- ternate bid method shall only be used ference shall be scheduled sufficiently in selected cases where flexibility may in advance of the date set for bid be desirable in selection of a product. opening to permit prospective bidders The Contracting Officer shall weigh to use the information. A written the advantage of the flexibility record of the prebid conference shall against the difficulties in the evaluabe made and maintained in the pro tion of bids that results from the alcurement file as the official record of ternate bid technique in determining what was presented at the conference. to utilize this method.

(c) Purpose. A prebid conference is held to accomplish two primary objec- $ 24-2.203-3 Publicity in newspapers and tives:

trade journals. (1) To impart information that re When it is deemed necessary by the moves areas of performance uncertain

procuring activity to use paid advertisties which, unless removed, result in

ing the following must be observed: higher price to the Government, i.e., (a) When it is deemed necessary to inclusion in the bid of an amount for use paid advertisements in newspapers the uncertainty or contingency.

and trade journals and similar adver(2) To avoid post-award performance

tising media in conjunction with comproblems which firms could have been

petitive solicitation, where HUD would made aware of at the time of bid prep not otherwise obtain the full benefit aration.

of available competition, written au(d) Conclusion. As a result of the

thority for such publication shall be prebid conference, it may become nec obtained from the Head of the Procuressary to change or substantially clari

ing Activity. fy the solicitation. This action shall be

(b) The prices paid for advertising transmitted to all those receiving IFB

shall not exceed commercial rates in the form of an official amendment

charged to private individuals. In Placto the solicitation, taking into consid

ing advertising orders, the Standard eration any extension of the closing

Form 1143 “Public Voucher for Adverdate for the receipt of bids.

tising Order” shall be utilized. The 8 24-2.202-53 Bid envelopes.

only considerations required in placing

an advertising order are (1) has the Mailing labels, tags, or envelopes, use of such medium been authorized bearing “Postage and Fees Paid” indi. and (2) is the medium able to achieve cia shall not be distributed with the the objective of the advertising. invitation for bids or otherwise supplied to prospective bidders. To pro $ 24-2.205 Bidders mailing list. vide for ready identifcation and proper handling of bids, the Optional Form

8 24-2.205-1 General. 17, “Sealed Bid Label” may be fur Each procuring activity within the nished with each bid set to inform the Department will establish in accord. bidder as to what will be required on ance with 41 CFR 1-2.205 bidders the bid envelope. 41 CFR 1-16.902- mailing lists to assure adequate

sources of supplies and services. The considered in the best interest of the Head of the Procuring Activity shall Government. have the responsibility for establish (c) At least once every twelve (12) ing such mailing lists to enable all months potential Contractors on inacsources interested in contracting with tive bidders mailing lists shall be conthe Department for specific types of tacted to determine their continuing programs to be utilized to the fullest interest, and all who fail to respond to extent possible.

this inquiry may be removed from the

mailing list. § 24-2.205-2 Establishment of lists.

(d) Potential Contractors, except for All eligible Contractors who have those who have been debarred or submitted the Bidders Mailing List found ineligible, who have been reApplication (Standard Form 129) or

moved from the mailing list, may be other forms as may be approved by reinstated upon request or by filing a the Department for this express pur- new mailing list application. pose, shall be placed on the appropriate bidders mailing list unless a con Subpart 24-2.3—Submission of Bids trary determination is made in accordance with 41 CFR 2.205-1. The follow $ 24-2.301 Responsiveness of bids. ing procuring activities maintain mail

Any bid which is not signed by the ing lists to support their particular bidder or his authorized representaprocurement function:

tive shall be disregarded, except when (a) The Office of Procurement and

it is accompanied by other evidence Contracts maintains a list of all

which demonstrates the bidder's insources interested in contracting with tention to be bound by the unsigned all Departmental programs except as

bid document. Examples of such eviset forth in paragraphs (b) and (c) of dence are a bid guarantee or a letter this section.

(which does not qualify or otherwise (b) To assist the Property Disposi render the bid nonresponsive) signed tion Acquired-Property Program, the by the bidder referring to and clearly Department's Area and Insuring Of.

identifying the bid itself. In such a fices each maintains a mailing list of case, the Contracting Officer may interested sources appropriate for the waive the deficiency as a minor inforjurisdiction over which it has authori mality or irregularity (see 41 CFR 1

2.405) and shall document the file to (c) The General Services Division of so indicate. each HUD Regional Office maintains, appropriate for the jurisdiction over $ 24-2.303 Late bids. which it has authority, a mailing list

$ 24-2.303-1 General. of sources interested in contracting with the Department for general serv The late bid regulations and proceice types of procurement.

dures of 41 CFR 1-2.303 shall not be

waived, even if a bid is only slightly 8 24-2.205-3 Removal and reinstatement

late (e.g., several minutes) or none of of names on bidders mailing lists. the other bidders will be prejudiced by Each procuring activity shall observe consideration of the late bid. the following requirements for the removal and reinstatement of names on

$ 24-2.303–6 Notification to late bidders. a mailing list:

In setting the date to be inserted in (a) Contractors who have been sus- the notice to late bidders contained in pended, debarred or otherwise deter- 41 CFR 1-2.303-6, consideration mined to be ineligible in accordance should be given to the time required with 24 CFR Part 24 to receive an by the bidder to develop and prepare award of a Government contract shall the required evidence in relation to immediately be removed from the bid the acceptance period specified by the ders mailing lists.

otherwise apparent low bidder, avoid(b) Potential Contractors who have ance of undue delay in tne procurefailed to respond to a solicitation, ment cycle, and other pertinent facshall be removed unless retention is tors. As a general rule, the bidder


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