Please clarify if a PJ is permitted to utilize a competitively bid continuing services contract (for professional services such as engineering, surveying or architectural services) for on-going CDBG activities, during the life of the contract, that has been put in place for a specific period, such as three years? Following, the 3 year contract the on-going professional services contract would again be put out for competitive bids.
Date Published: May 2015
Although 24 CFR 85.36 does not mention the renewal of contracts, CPD Notice 96-05, page 3, last paragraph states that grantees are not allowed to renew or extend a contract without further competition. In addition, if professional services are required for a longer period of time than the contract specifies, those services must be secured through a new procurement. Therefore, if a grantee has a contract with a firm for professional services such as engineering, surveying or architectural services, and it wants the firm to continue to do so beyond the time period specified in the original procurement and contract (e.g. three years), the additional year(s) of services must be re-advertised and there must be full and open competition for the work. We also recommend that you review your state and local laws regarding procurement that may apply in this situation.