Multifamily Housing Program Financial Management Toolkit

6f. Permitted Approaches to Procurement by Grantees and Sub-recipients

Grantees and sub-recipients must ensure that all of their procurement activities are completed using permitted approaches. These methods are required for state and local governments and their sub-recipients, but not for private owners and developers, except as mandated by governing state/local policies.

  • Micro purchases < $3,000
  • Small purchases <$150,000
  • More than $150,000 (primarily construction): Competitive sealed bids with formal advertising
  • More than $150,000 (general procurement): Competitive proposals
  • More than $150,000: Non-competitive proposals or sole source

Guidelines for Procurements by States – Section 200.317

When procuring property and services under a Federal award, a State must follow the same policies and procedures it uses for procurements from its non-Federal funds. In addition:

  • States must comply with §200.322 ‘Procurement of Recovered Materials’ and ensure that every purchase order or other contract includes any clauses required by section §200.326 ‘Contract Provisions.’
  • All other non-Federal entities, including sub-recipients of a State, are expected to follow ‘General Procurement Standards’ (§200.318) through ‘Contract Provisions’ (§200.326), as outlined below in Section 6g.