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stock of which is owned by minority group members. For the purpose of this definition, minority group members are Negroes, Spanish-speaking American persons, AmericanOrientals, American-Indians, American Eskimos, and American Aleuts. (Name and title of person signing.) Signature Date

Subpart 24-1.50—Criteria for the Use of Grants or Contracts for Research

(b) Use of contracts. The factors that indicate the use of contracts rather than grants are:

(1) The primary purpose is to buy or procure well-defined research or development in direct support of a HUD program;

(2) The end product is a specific service, piece of hardware or improved performance of a specific service or piece of hardware;

(3) HUD considers it necessary to exercise a more stringent control over the objectives, direction, specifications, costs or methods of the research, and such control is desirable and feasible; and

(4) The end result is clearly defined and “specifications” are prepared in advance of the work.

§ 24-1.5000 Scope of subpart.

This subpart establishes policies relating to the basic difference for using either a grant or contract in Departmental research efforts.



$ 24-1.5001 Policy.

Research grants may be made to support research at nonprofit organizations and educational institutions, State and local governments, and selected other organizations and persons when it is advantageous to the Government. FPR and HUDPR provisions relating to contract award are not applicable to awards of grants.

Sec. 24-2.000 Scope of part.

Subpart 24-2.1-Use of Formal Advertising 24-2.150 Specification requirements. 24-2.150-1 General.

$ 24-1.5002 Criteria for use of grants and

contracts. The criteria set forth below provide guidelines to determine the appropriate type of instrument for use with grants and contracts.

(a) Use of grants. The factors that indicate the use of grants rather than contracts are:

(1) The primary purpose is to aid or support the acquisition of knowledge or understanding of the subject under study;

(2) The exact course of the work and its outcome are not precisely definable and specific points in time for achievement of significant results are not precisely specifiable; and

(3) The nature of the proposed investigation is such that the grantee will bear prime responsibility for the conduct of the research, and exercise judgment and original thought toward attaining the goals within broad parameters of the research areas proposed and the related resources provided.

Subpart 24-2.2-Solicitation of Bids 24-2.201 Preparation of invitations for

bids. 24-2.202 Miscellaneous rules for solicita

tion of bids. 24-2.202-1 Bidding time. 24-2.202-2 Telegraphic bids. 24-2.202-3 Place and method of delivery of

supplies. 24-2.202-4 Bid samples. 24-2.202-50 Extension of time for bid open

ing. 24-2.202-51 Incorporation by reference. 24-2.202-52 Prebid conference. 24-2.202-53 Bid envelopes. 24-2.202-54 Alternate bids. 24-2.203-3 Publicity in newspapers and

trade journals. 24-2.205 Bidders mailing list. 24-2.205-1 General. 24-2.205-2 Establishment of lists. 24-2.205-3 Removal and reinstatement of

names on bidders lists.

Subpart 24-2.3—Submission of Bids 24-2.301 Responsiveness of bids. 24-2.303 Late bids. 24-2.303-1 General. 24-2.303-6 Notification to late bidders.

Sec. 24-2.303-7 Disposition of late bids.

Subpart 24-2.4-Opening of Bids and Award

of Contract

24-2.401 Receipt and safeguarding of bids. 24-2.402 Opening of bids. 24-2.402-50 Marking of bids. 24-2.402-51 Timing of acceptance and

withdrawal. 24-2.404 Rejection of bids. 24-2.404-50 Rejection of bids in multiple

bidding situations. 24-2.406 Mistakes in bids. 24-2.406-3 Other mistakes disclosed before

award. 24-2.406-4 Disclosure of mistakes after

award. 24-2.407 Award. 24-2.407-1 General. 24-2.407-7 Statement and certificate of

award. 24-2.407-8 Protests against award. 24-2.407-50 Award when only one bid is re

ceived. 24-2.408 Information to bidders.

AUTHORITY: Sec. 7(d), Housing and Urban Development Act, (42 U.S.C. 3535(d)).

SOURCE: 41 FR 55801, Dec. 22, 1976, unless otherwise noted.

detail and contain the following elements but shall always be written to meet the minimum that will also be acceptable:

(a) Objective.
(b) Scope of work.
c) Specific tasks.
(d) Performance.

(e) Products/deliverables and schedules.

(f) Reports.

(g) Government obligations. The adequacy of specifications is a critical factor in the use of formal advertising procedures. They must be defined well enough to permit all bidders to bid on the same basis. The Contracting Officer is responsible for determining when formal advertising is impractical or otherwise unsuitable and for documenting the file accordingly in the form of a determination and finding.

Subpart 24-2.2—Solicitation of Bids

§ 24-2.201 Preparation of invitations for

bids. Forms used in the preparation of invitations for bids are prescribed in 41 CFR Subpart 1-16.1 and 1-16.4 and in 24-16 of this Chapter.

$ 24-2.000 Scope of part.

This part implements and supplements the basic requirements for procurement of personal property and nonpersonal services (including construction) by formal advertising, and establishes policies with respect to solicitation of bids, submission of bids and opening and evaluation of bids and, the awarding of contracts as set forth in 41 CFR 1-2.

§ 24-2.202 Miscellaneous rules for solicita

tion of bids.

Subpart 24-2.1-Use of Formal


$ 24-2.150 Specification requirements.

§ 24-2.150-1 General.

In addition to the requirements stipulated in 41 CFR 1-1.305, the specification shall be specific as to the objectives and the tasks to be performed, time of performance, Government-furnished materials and information, reporting requirements, measurements of progress, publications, and time periods for Government review. Generally the specifications shall be stated in

$ 24-2.202-1 Bidding time.

In the procurement of supplies and services, the following shall be observed:

(a) Procurement action which does not provide for the minimum bidding time required by 41 CFR 1-2.202-1(c) shall be justified by the Contracting Officer prior to releasing the invitation for bids. This justification shall take the form of a finding of fact which establishes the Contracting Officer's basis for the exception to the minimum bidding time.

(b) The minimum bidding time stipulated in 41 CFR 1-2.202-1(c) shall not be construed as a maximum. Each prospective procurement shall be examined on its own merits to determine the bidding time that will facilitate competition on reasonable and equal terms. As a general rule, procurement days after the time and date set forth in the IFB for receipt of all bid responses.

8 24-2.202-3 Place and method of delivery

of supplies. To the maximum extent practical, ir.vitations for bids issued by HUD shall stipulate “f.o.b. destination.” Only where the Contracting Officer determines it to be in the Government's best interest may he deviate from this policy.

of a less complicated nature for which no extensive bid preparation by the prospective bidder is required in development of his bid may contain a bidding time of 20 calendar days. Where the specification may require prospective bidders to develop drawings or samples, or to do extensive preparation in developing a meaningful bid, 30 calendar days or more of bidding time may be required. When similar types of requirements necessitate a quick turnaround time, the appropriate Procuring Activity may request a class exception to the minimum bidding time relating to the urgency for the supplies services. If this situation exists, the Contracting Officer will make a request to the Head of the Procuring Activity for approval of the class exception or where internal Departmental regulations exist regarding exceptions to the minimum bidding time these regulations are construed as an exception under this Section.


§ 24-2.202-4 Bid samples.

Bid samples submitted by bidders as required by an invitation for bids or as unsolicited samples if not returned in accordance with 41 CFR 1-2.202-4(h), shall be disposed of by the Contracting Officer who shall document the contract file as to the method of disposition.

§ 24-2.202-50 Extension of time for bid

opening. (a) Whenever such action is determined by the Contracting Officer to be in the best interest of the Government, bid openings may be rescheduled for a later date by issuance and distribution of an amendment (see 41 CFR 1-2.207) to the invitation for bids. Notices of change in bid opening date shall specify the exact time and date for the new opening and will be issued by mail or telegraph as soon as possible, but in any event prior to the time specified for the opening of bids.

$ 24-2.202-2 Telegraph Bids.

Telegraphic bids will be authorized only by the Contracting Officer who shall document the official procurement file as to the necessity of telegraphic bids. Conditions under which telegraphic bids may be authorized are set forth in 41 CFR 1-2.202-2. When telegraphic bids are authorized by the Contracting Officer, the following clause shall be incorporated in the Invitation for Bids:

Telegraphic bids may be submitted in response to this Invitation for Bids (IFB). Telegraphic bids must be received in this Office prior to the time specified for opening of bids. Such bids must specifically refer to this IFB; must include the items or subitems, quantities and unit prices for which the bid is submitted and the time and place of delivery; and must contain all the representations and other information required by the IFB together with a statement that the bidder agrees to all the terms, conditions and provisions of the invitation. Failure to furnish, in the telegraphic bid, the representations and information required by the IFBs may necessitate rejection of the bid. Signed copies of the IFBs must be furnished in confirmation of the telegraphic bids. The bidder shall confirm the telegraphic bid on the required forms contained in the IFB and shall submit it to the Contracting Officer within five (5) calendar

§ 24-2.202-51 Incorporation by reference.

There shall be shown on the face of the invitation for bids or, if that sheet is not the primary one provided for the bidder's signature, on the primary sheet that is so provided, a listing of attachments which are to form a part of the bid invitation and resulting contract, as follows:

“The following attachments hereto form a part of this Invitation for Bids and any resulting contract:"

§ 24-2.202-52 Prebid conference.

Whenever a prebid conference is proposed for a procurement the following will be applicable:

(a) General. One of the essential elements of formal advertising is that all (d) Conclusion. As a result of the prebid conference, it may become necessary to change or substantially clari. fy the solicitation. This action shall be transmitted to all those receiving IFB in the form of an official amendment to the solicitation, taking into consideration any extension of the closing date for the receipt of bids.

§ 24-2.202-53 Bid envelopes.

Mailing labels, tags, or envelopes, bearing “Postage and Fees Paid” indicia shall not be distributed with the invitation for bids or otherwise supplied to prospective bidders. To provide for ready identifcation and proper handling of bids, the Optional Form 17, “Sealed Bid Label” may be furnished with each bid set to inform the bidder as to what will be required on the bid envelope. 41 CFR 1-16.902OF17 illustrates the referenced form and copies of same can be obtained from the General Services Administration.

bidders are afforded an equal opportunity to compete. For this reason, discussions with prospective bidders will only be conducted by or with the knowledge and approval of the Contracting Officer. It is incumbent upon the Contracting Officer to afford to all prospective bidders the same information so as not to give one advantage over the others, if issued to only one potential bidder. The need for prebia conferences in advertised procurements should be infrequent and such conferences shall not be used as a substitute for formally amending defective or ambiguous solicitation or to disseminate additional specification requirements. The prebid conference is a procedure generally reserved for complex procurements to provide for discussion of unusual aspects. A prebid conference is only authorized when it is deemed by the Contracting Officer to be in the best interest of the Government and approved by the Head of the Procuring Activity or when written internal program policy requires it under certain specified circumstances.

(b) Format. The typical format of a prebid conference is a formal presentation by the Contracting Officer or his representative followed by a question and answer period. All prospective bidders and their subcontractors shall be invited to the meeting in a manner deemed appropriate by the Contracting Officer. When held, a prebid conference shall be scheduled sufficiently in advance of the date set for bid opening to permit prospective bidders to use the information. A written record of the prebid conference shall be made and maintained in the procurement file as the official record of what was presented at the conference.

(c) Purpose. A prebid conference is held to accomplish two primary objectives:

(1) To impart information that removes areas of performance un tainties which, unless removed, result in higher price to the Government, i.e., inclusion in the bid of an amount for the uncertainty or contingency.

(2) To avoid post-award performance problems which firms could have been made aware of at the time of bid preparation.

§ 24-2.202-54 Alternate Bids.

An alternate bid is one that offers a suitable substitute for the requirements set forth in the invitation or which goes to the substance of the bid which affects price, quality, quantity or delivery. Where alternate bids are not provided for in the invitation, the Government shall consider any alternate bid to be non-responsive. The alternate bid method shall only be used in selected cases where flexibility may be desirable in selection of a product. The Contracting Officer shall weigh the advantage of the flexibility against the difficulties in the evaluation of bids that results from the alternate bid technique in determining to utilize this method.

§ 24-2.203-3 Publicity in newspapers and

trade journals. When it is deemed necessary by the procuring activity to use paid advertising the following must be observed:

(a) When it is deemed necessary to use paid advertisements in newspapers and trade journals and similar advertising media in conjunction with competitive solicitation, where HUD would not otherwise obtain the full benefit

of available competition, written au- (c) The General Services Division of thority for such publication shall be each HUD Regional Office maintains, obtained from the Head of the Procur- appropriate for the jurisdiction over ing Activity.

which it has authority, a mailing list (b) The prices paid for advertising of sources interested in contracting shall not exceed commercial rates with the Department for general servcharged to private individuals. In Plac- ice types of procurement. ing advertising orders, the Standard Form 1143 “Public Voucher for Adver

§ 24-2.205-3 Removal and reinstatement tising Order” shall be utilized. The

of names on bidders mailing lists. only considerations required in placing Each procuring activity shall observe an advertising order are (1) has the the following requirements for the reuse of such medium been authorized moval and reinstatement of names on and (2) is the medium able to achieve a mailing list: the objective of the advertising.

(a) Contractors who have been sus

pended, debarred or otherwise deter§ 24-2.205 Bidders mailing list.

mined to be ineligible in accordance

with 24 CFR Part 24 to receive an § 24-2.205-1 General.

award of a Government contract shall Each procuring activity within the immediately be removed from the bidDepartment will establish in accord- ders mailing lists. ance with 41 CFR 1-2.205 bidders (b) Potential Contractors who have mailing lists to assure adequate

failed to respond to a solicitation, sources of supplies and services. The shall be removed unless retention is Head of the Procuring Activity shall considered in the best interest of the have the responsibility for establish

Government. ing such mailing lists to enable all (c) At least once every twelve (12) sources interested in contracting with months potential Contractors on inacthe Department for specific types of

tive bidders mailing lists shall be conprograms to be utilized to the fullest tacted to determine their continuing extent possible.

interest, and all who fail to respond to

this inquiry may be removed from the § 24-2.205-2 Establishment of lists.

mailing list.

(d) Potential Contractors, except for All eligible Contractors who have submitted the Bidders Mailing List

those who have been debarred or Application (Standard Form 129) or

found ineligible, who have been re

moved from the mailing list, may be other forms as may be approved by the Department for this express pur

reinstated upon request or by filing a pose, shall be placed on the appropri

new mailing list application. ate bidders mailing list unless a contrary determination is made in accord- Subpart 24-2.3—Submission of Bids ance with 41 CFR 2.205-1. The following procuring activities maintain mail- § 24-2.301 Responsiveness of bids. ing lists to support their particular Any bid which is not signed by the procurement function:

bidder or his authorized representa(a) The Office of Procurement and

tive shall be disregarded, except when Contracts maintains list of all it is accompanied by other evidence sources interested in contracting with which demonstrates the bidder's inall Departmental programs except as tention to be bound by the unsigned set forth in paragraphs (b) and (c) of bid document. Examples of such evithis section.

dence are a bid guarantee or a letter (b) To assist the Property Disposi- (which does not qualify or otherwise tion Acquired-Property Program, the render the bid nonresponsive) signed Department's Area and Insuring Of. by the bidder referring to and clearly fices each maintains a mailing list of identifying the bid itself. In such a interested sources appropriate for the case, the Contracting Officer may jurisdiction over which it has authori. waive the deficiency as a minor inforty.

mality or irregularity (see 41 CFR 1


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