Multifamily Housing Program Financial Management Toolkit

The correct answer is ‘E.’ Federal procurement requirements are intended to ensure efficiency and fairness in the purchasing process, to promote public confidence and to increase competition for Federally funded work, particularly by advancing opportunities for local, small and minority- or women-owned businesses.

The correct answer is ‘True.’ A Federal grantee or sub-recipient must first determine what the total cost will be for a purchase or procurement, then follow the guidelines specific to that cost category.

The correct answer is ‘False.’ A grantee or sub-recipient must do a cost or price analysis and maintain documentation of the procurement process for every procurement.

The correct answer is ‘False.’ The standard for ‘small purchases’ is that the procurement is for services, supplies or property that does not exceed $150,000 in the aggregate. Therefore, for example, it is not allowable to break up arbitrarily a $150,000 procurement of materials into three $50,000 purchases just to be able to use the less complicated ‘small purchase’ procedures.

The correct answer is ‘C.’ None of the other relationships could be considered ‘arms length,’ which is a criterion for determining whether there is a real or perceived conflict.