§ 24-1.000

Scope of part. This part describes the method by which the Department of Housing and Urban Development (referred to herein as HUD) implements, supplements, and may deviate from the Federal Procurement Regulations (referred to herein as FPR), and sets forth policies and procedures which implement and supplement FPR (41 CFR Part 1-1).

[33 F.R. 6294, Apr. 25, 1968]

Subpart 24-1.0-Introduction

SOURCE: The provisions of this Subpart 24-1.0 appear at 33 F.R. 6294, Apr. 25, 1968, unless otherwise noted.

§ 24-1.001 Scope of subpart.

This subpart establishes the Department of Housing and Urban Development Procurement Regulations and states their relationship to the Federal Procurement Regulations System.

The Department of Housing and Urban Development Procurement Regulations (herein identified as HUDPR) are hereby established as Chapter 24 of the FPR System in order to provide a uniform policy and procedure for the procurement of personal property and nonpersonal services (including construction) by organizational units of HUD in conformity with applicable law and the FPR.

§ 24-1.003 Authority.

HUDPR are issued in compliance with the FPR System and are prescribed by the Assistant Secretary for Administration under section 7(d) of the Department of Housing and Urban Development 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 Secretary's Delegation (33 F.R. 4593, Mar. 15, 1968). § 24-1.004 Applicability. § 24-1.004-1

Procurement.

The FPR and HUDPR apply to all procurement of personal property and nonpersonal services (including construction) on behalf of the Secretary of Housing and Urban Development, except as may be otherwise authorized by law. § 24-1.004-2 Relationship of HUDPR to the FPR System.

(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) Implementing material is that which expands upon or indicates the manner of compliance with related FPR material. Supplementing material is that for which there is no counterpart in the FPR.

(c) Where HUDPR contain no material implementing the FPR, the FPR alone will govern. The effective date of FPR issuances with Government-wide application will become effective throughout HUD upon the effective date cited in the particular FPR material. The effective date of HUDPR will be the date stated in the respective issuances. § 24-1.005 Exclusions.

Certain policies and procedures which come within the scope of this chapter may, nevertheless, be excluded from HUDPR. Policies and procedures which may be excluded include the following categories:

(a) Subject matter which bears a security classification, is stamped "official use only," or is of a purely internal nature.

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

(c) Policy or procedure which is being instituted on an experimental or test basis for a reasonable period.

(d) Instructional material that explains more fully matters covered in the FPR and HUDPR.

(a) This Chapter 24 has been allocated to HUD for implementing, supplementing, and deviating from Chapter 1 of this Title 41 CFR. The numbering system conforms to that of the FPR (§ 1-1.007-2) permitting identification of every unit. Thus, for example, in this "§ 24-1.007-2," the first two digits denote the chapter; the third the part; the fourth the subpart; the fifth and sixth the section; and the seventh the subsection.

(b) Where HUDPR implement or deviate from a part, subpart, section, or subsection of the FPR, the implementing part, subpart, section, or subsection of HUDPR will be numbered (and captioned) to correspond to the part, subpart, section, or subsection of Chapter 1 of the FPR.

(c) HUDPR which supplement the FPR will be assigned an appropriate number and title different from any assigned to a section in the FPR.

(d) Where the subject matter contained in a part, subpart, section, or subsection of the FPR requires no implementation, HUDPR will contain no corresponding part, subpart, section, or subsection number and the subject matter as published in the FPR governs.

§ 24-1.007-3 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 "§ 24-1.007-3 of this chapter." When this section is referred to formally in official documents, such as legal briefs, it should be cited as "41 CFR 24-1.007-3." Any section of the HUDPR may be informally identified by the section number, e.g., "HUDPR 24-1.007-3."

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 for his 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 supported 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.

(c) In individual cases and classes of cases, deviations from HUDPR also may be submitted to a chief officer responsible for procurement, who is hereby authorized to approve requests for such deviations. A request for such deviation shall be supported by a statement 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

The Director, Office of General Services, and the Director, Contracts and Agreements Division, Office of General Services, each has been designated as a chief officer responsible for procurement. Subpart 24-1.3-General Policies

AUTHORITY: The provisions of this Subpart 24-1.3 issued under sec. 7(d) of the Department of Housing and Urban Development Act, 42 U.S.C. 3535(d); Secretary's delegations of authority published at 33 F.R. 4593, Mar. 15, 1968, as amended at 33 F.R. 11099, Aug. 3, 1968; and at 31 F.R. 10754, Aug. 12, 1966.

SOURCE: The provisions of this Subpart 24-1.3 appear at 33 F.R. 12734, Sept. 7, 1968, unless otherwise noted.

§ 24-1.301 Methods of procurement.

(a) Procurement by formal advertising. Supplies and services shall generally be procured by formal advertising in accordance with FPR 1-2.

(b) Procurement by negotiation. Supplies and services may be procured without formal advertising in accordance with FPR 1-3.

§ 24-1.302 Procurement sources. § 24-1.302-1 General.

(a) Government sources. Procurement of certain supplies and services may be effected by orders on Government sources referred to in FPR 1-1.302-1. It is the policy of the Department that such methods of procurement be utilized to the maximum extent practicable, in accordance with applicable laws and regulations. Such procurement by the Department may be under:

(1) Section 601 of the Economy Act of June 30, 1932, as amended (31 U.S.C. 686), in accordance with regulations of the General Accounting Office;

(2) Section 502(c) (2) of the Housing Act of 1948, as amended (12 U.S.C. 1701c(b) (2)), in accordance with the Comptroller General's decision of April 10, 1951, B-102040.

(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 § 24-1.302-2 [Reserved] § 24-1.302-3 partment

ees.

Contracts between the Deand Government employ

(a) Prime contracts. Procurement contracts between the Government and its employees or business organizations substantially owned or controlled by Government employees will not knowingly be entered into, except in those cases in which the needs of the Government cannot reasonably be otherwise supplied. The specific approval of the Assistant Secretary for Administration must be obtained for any such contract.

(b) Subcontracts. In the review of and consent to subcontracts under prime contracts, the policy restrictions of § 24-1.302-3 of this chapter apply.

§ 24-1.310 Responsible prospective con

tractor.

§ 24-1.310-4 General policy.

A "responsible prospective contractor" is one which is found by the contracting officer to meet all of the applicable standards specified in § 24-1.310-5 of this chapter in addition to those in FPR 1-1.310-5. If the contracting officer has sufficient current information to satisfy himself that the prospective contractor meets the standards, the contracting officer may proceed with the award without further inquiry. All determinations of responsibility shall be based on adequate information conforming to the requirements of this section and FPR 1-1.310-5.

(a) In order to qualify as responsible, when costs incurred are to be a factor in determining the amount payable under the contract, or if advance or progress payment terms are to be included, a prospective contractor must, in the opinion of the contracting officer, meet the following standard in addition to those set forth in FPR 1-1.310-5:

(1) Have an accounting system and financial controls that are adequate for proper administration of the contract. Subpart 24-1.7-Small Business Concerns

SOURCE: 37 FR 9106, May 5, 1972, unless otherwise noted.

§ 24-1.700 General.

This subpart implements and supplements general policies and procedures set forth in FPR 1-1.7.

§ 24-1.702 Small business policies.

In addition to the policies prescribed in FPR 1-1.702, organizational units of HUD having responsibility for procurement of personal property and nonpersonal services (including construction) shall cooperate with the Small

Business Administration in implementing the policies and procedures in FPR 1-1.7 and in this subpart.

§ 24-1.704

§ 24-1.705

[Reserved]

Small business advisor.

The Director of the Office of General Services shall be designated as the Department's small business advisor for all procurement matters. The small business advisor will be responsible, as a collateral duty, for the establishment, implementation, and execution of the small business program. He will be the central point of contact for inquiries concerning the small business program from industry, the Small Business Administration (SBA), the Congress, the Office of the Secretary, and others. His duties shall include developing a plan of operation to increase the share of contracts awarded to small business by the Department.

§ 24-1.706 Small business specialist.

(a) Job requirements. Each head of an organizational unit of HUD having responsibility for procurement of personal property and nonpersonal services (including construction) shall designate by name and in writing a small business specialist for each procurement office over which he exercises control, to perform on a part-time basis the duties set forth in this section. Only individuals possessing the necessary business acumen, knowledge of the Department's procurement policies and procedures, and training and background to accomplish effectively the objective of the small business program shall be considered. In any instance, the assignment shall clearly indicate that the part-two nature of the work shall in no way relieve the individual from full responsibility for effectively accomplishing the activity's small business program requirements.

(b) Duties of the small business specialist. The small business specialist appointed pursuant to paragraph (a) of this section shall perform such of the following duties as are appropriate for his procurement office:

(1) Maintain a program designed to locate capable small business sources for current and future procurements;

(2) Coordinate inquiries and requests for advice from small business concerns on procurement matters;