Can local governments procure services from the state’s list of construction contractors? The state uses a sealed bid process to procure contracts.
Date Published: May 2015
HUD lays out the responsibilities that grantees must meet when conducting a procurement using federal funds in 24 CFR 85.36. While the procurement standards encourage intergovernmental agreements for the procurement of common goods and services (defined as standard commercial equipment, materials, supplies and services readily obtainable on the open market through conventional commercial marketing channels), procurement activities by CDBG entitlement grantees must still be conducted in accordance with the requirements of 24 CFR 85.36(b), specifically requiring grantees to follow their own procurement policies and procedures that meet all specified federal minimum standards.
Therefore, a grantee can select a contractor procured by the state only if the procurement complies with the grantees own procurement policies and procedures and the procurement also meets all requirements of the federal standards specified in 24 CFR 85.36 and meets federal requirements like Davis-Bacon. The bids have to be adjusted for local circumstances and can be made a condition of the award. This is still faster and easier than running a separate process, which is what 85.36(b)(5) is trying to encourage. Notice 96-05 provides additional guidance on procurement issues.